Scott Announces FY20 Results

Full Year Results29 October 2020SCTIndustrials

30 October 2020
Company Announcement
©Scott Technology Limited

SCOTT ANNOUNCES FY20 RESULTS

Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), has today released
its financial results for the year ended 31 August 2020 (FY20).

$M FY20 FY19
Revenue 186.1 225.1
EBITDA (11.6) 20.0
Non-trading adjustments
1
15.3 -
Normalised EBITDA
2
3.7 20.0
Net (Loss) / Profit after Tax (17.5) 8.6
Net Cash / (Overdraft) 7.7 (4.7)
Operating Cash flow 19.6 0.7

The results for the year ended 31 August 2020 reflect the material impact of COVID-19 on the business,
the close out of several challenging legacy projects, the restructuring and write down of non-core
assets as a result of Scott’s new strategy.
In May 2020, Scott announced its new ‘Engineering Scott to High Performance 2025’ strategy, which
is focused on positioning Scott as the first choice for customers around the world wanting smart
automation and robotic solutions which make their businesses safer, more productive and more
efficient. The strategy identifies five foundations to achieve profitable growth and a number of goals
have been set under each of these. Scott is pleased to report that, despite the disruptions of the global
pandemic, the team has made important strides forward on this strategy.
COVID-19 restrictions on travel and site access, as well as customer deferral of investment spend had
a significant impact on Scott’s ability to progress projects in a timely manner during the 2020 year.
Pleasingly, many of these projects are now coming back online, with demand for automation growing
in several regions and sectors.
FY20 revenue was down 17% on the prior year to $186.1m with a stronger performance in the USA in
1H20, partially offsetting the reduction in Australasia, Europe and China.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $(11.6)m was impacted by
the revenue decrease with lower volumes leading to reduced overhead recoveries, most notably in
the Appliance sector in Europe and the United States. In addition, margin erosion occurred in
Australasia from a number of large projects which have incurred cost overruns through complexity
combined with delays created by the pandemic.

1
FY20 includes non-trading adjustments of $(15.3)m comprising $(7.6)m impairment of Australasian assets
due to the new strategic direction, $(4.3)m restructuring provision, $(6.2)m revenue impairment on
challenging legacy Australasian projects and $2.8m in wage subsidies recognised in FY20.
2
Underlying EBITDA excludes non-trading adjustments.

©Scott Technology Limited | Confidential document

EBITDA also includes non-trading adjustments of $(15.3)m related to the new strategy and restructure
as well as the close-out of several challenging legacy Australasian projects and the Government wage
subsidies received.
Excluding these adjustments, underlying EBITDA was $3.7m.
A considerable amount of energy and activity during the past year was spent on moving a number of
challenging Australasian projects to either acceptable outcomes for both Scott and the customer, or
to an exit. Some of these financial provisions were taken at the half-year in anticipation of the
challenges Scott was facing at that point on the respective projects. However, in two cases the
pathways, which looked like potential outcomes at the time, have subsequently closed as the team
reflected on operational progress and the commercial position of the project, versus the remaining
completion risk.
Moving forward, a mandatory pre-bid review has now been introduced on all large project bids. The
objective is to fully understand the development risk inherent in a project and ensure this is sufficiently
factored into Scott’s timing commitments and pricing to avoid Scott taking on a disproportionate part
of any risk.
A global restructuring programme was undertaken during the year to ensure the global operational
base and cost structure were aligned to Scott’s strategy and near-to-medium term growth projections.
This was completed in August 2020 and the full benefits are expected to be seen in FY21. In addition,
to support the successful achievement of Scott’s aspirations, important steps were taken to build
additional strength and experience in the Executive Team, including the appointment of John
Kippenberger as CEO.
Despite the challenges faced during the period, the company finished the year with a strong balance
sheet and a net cash position of $7.7m. Total bank term loans were in line with the previous year at
$11.2m. The company has satisfactory debt facilities in place and a supportive banking arrangement,
and also has support from its majority shareholder, JBS Australia.
The team made good progress on disciplined cost management and working capital management,
with a strong improvement in both debtors and creditors despite the COVID-19 environment. Scott
reported strong operating cash flows of $19.6m for the year ended 31 August 2020, which
management believes is more representative of the underlying business.
The bottom line result, including non-trading adjustments, was a net loss after tax of $(17.5)m.
The Directors have declared that no final dividend be paid for the year ended 31 August 2020. The
Board deems this decision to be a prudent one due to the uncertainty that still exists around COVID-
19 and its impact on the business.
Chair of Scott Technology, Stuart McLauchlan, said: “While the FY20 headline number is not as we
would have liked, we are confident that our new strategy will lead to a return to sustainable and
profitable returns in the years ahead. With the launch of our Scott 2025 strategy, we have a clear plan
in place to grow our company over the next five years and add value to shareholders. Scott is a world
leader in smart automation and robotics technology and we will continue to build on our expertise to
deliver safer, more productive, higher quality solutions for businesses around the globe.”

©Scott Technology Limited | Confidential document

Outlook
While the initial shock of the global pandemic caused delays over some projects, several industries
and regions have more recently started to make positive investment decisions around Scott’s
automation and robotic projects, products and services and demand is accelerating. Long term
demand for smart automation and robotic solutions is expected to remain strong, driven by businesses
wanting to remove labour costs, increase safety and improve efficiencies.
Scott is focused on five key areas of expertise – Meat, Mining, Appliances, Industrial Automation and
Materials Handling & Logistics - which leverage Scott’s leading technology platforms and offerings
offer profitable sustainable growth and margins. Growth pathways have been identified in each sector
and the team are focused on building the sales pipeline in areas that offer the best returns while
minimising risk.
While the challenges of the pandemic environment are expected to continue in FY21, Scott’s new and
more efficient organisational footprint will stand the company in good stead, with a leaner cost base
and a more appropriate regional network that will allow the company to deliver an improved service
for its customers.
CEO John Kippenberger, commented: “Despite the inevitable challenges and necessary distractions of
the ever-moving pandemic, the Scott team continue to demonstrate resilience and commitment as
we look to our future under our new Scott 2025 strategy.
The first two foundations of our strategy are focused on building authentic customer partnerships
which yield repeat business, as well as pivoting our sales mix to include a higher percentage of repeat,
profitable sales of our products and systems. This approach brings efficiencies and risk reduction to
the commercial outcome.
Many of our global multinational customers have multiple factories across various parts of the world
and our aim is to take a longer term partnership approach. In two existing examples in North America
over the past six months, we have moved our engagement from focusing solely on completing one
standalone system to now having an agreement whereby the customer will take a number of repeat
systems over the next three to five years.
We are confident that the actions we are taking under our new strategy will deliver value to our
customers, our staff and our shareholders.”
ENDS
More information on Scott’s FY20 results can be viewed in the FY20 Investor Presentation released to
the NZX with this announcement on 30 October 2020.

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: +64 27 246 2505
E: jackie@ellisandco.co.nz

©Scott Technology Limited | Confidential document

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, 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.

---

SCOTT TECHNOLOGY LIMITED
ANNUAL REPORT 2020

Scott robotic handling and welding system for Glencore Technology

02 Our Business
04 FY20 at a Glance
05 Financial Performance
06 Chairman’s Commentary
08 Chief Executive Officer's Commentary
12 Engineering Scott to High Performance
14 Regional Updates
18 Operational Excellence
20 Our Values
CONTENTS
KEY DATES
21 Our Team
22 Our Board
23 Financial Report
73 Independent Auditor’s Report
77 Statement of Corporate Governance
84 Statutory Information
89 Remuneration
91 Directors Responsibility Statement
92 Directory
DIVIDEND
The directors have declared that no dividend
will be paid for the year ended 31 August 2020.
ANNUAL MEETING
Thursday 3 December 2020, 3:00pm
at Scott Technology Limited,
630 Kaikorai Valley Road, Dunedin.
Proxies close 3:00pm, Tuesday, 1 December 2020
The Board of Directors of Scott Technology Limited is pleased to present the Annual Report for the year
ended 31 August 2020. This provides a review of our progress in FY20 and our focus for the financial year
ahead. With the launch of our Scott 2025 strategy, we have a clear plan in place to grow our company
over the next five years and add value to shareholders. Scott remains a world leader in smart automation
and robotics technology and we will continue to build on our expertise to deliver safer, more productive,
high quality solutions for businesses around the globe.
On behalf of the Board
30 October 2020
Stuart McLauchlan
Chairman & Independent Director
John Kippenberger
Chief Executive Officer
ANNUAL REPORT 2020
PAG E 1

EUROPE
CHINA
AUSTRALASIA
Manufacturing:
Appliances
Key Sales Sectors:
Appliances
Manufacturing:
Transbo�cs & Robotworx
Key Sales Sectors:
Meat, Appliances, Industrial
Automa�on, Materials Handling
& Logis�cs.
Manufacturing:
BladeStop, Alvey, Materials
Handling & Logis�cs.
Key Sales Sectors:
BladeStop, Appliances,
Materials Handling & Logis�cs.
Manufacturing:
BladeStop, Meat, Mining, Rocklabs,
Appliances & Industrial Automa�on.
Key Sales Sectors:
Meat, Mining, Rocklabs,
Industrial Automa�on & BladeStop.
AMERICAS
Manufacturing Facili�es
Sales and Office Facili�es
OUR BUSINESS
6
%
SCOTT TECHNOLOGY LIMITED
PAG E 2

FY20 AT A GLANCE
LAUNCHED NEW STRATEGY
focused on sustainable, profitable returns and reduction in risk.
APPOINTMENT
OF NEW CEO
with John Kippenberger appointed
as Chief Executive Officer
in November 2019.
SIGNIFICANT
IMPACT FROM
COVID-19
seen from late in the first half and
throughout the second half of the
financial year.
RESTRUCTURING
AND RIGHT SIZING OF
BUSINESS COMPLETED
including relocation of manufacturing in Germany,
consolidation of sites in New Zealand and the
initiation of the sale process of the HTS-110 business
in New Zealand which was considered non-core.
VALUE CONTINUES
TO BE ADDED
BY ACQUIRED
BUSINESSES
particularly Transbotics and BladeStop.
STRENGTHENED
EXECUTIVE TEAM
with a number of new team
members adding additional
strength and experience.
SOFTENING
ECONOMIC
CONDITIONS
noted in key markets, including the
impact of global trade and Brexit,
further exacerbated by COVID-19
restrictions across the globe.
CONTINUED
FOCUS
on working capital discipline,
cost management and more
rigorous project risk assessment
delivering benefits.
DEMAND FOR HIGH
QUALITY ROBOTICS
AND AUTOMATION
CONTINUES
albeit with some disruptions from
COVID-19.
SCOTT TECHNOLOGY LIMITED
PAG E 4

20162017201820192020
FINANCIAL
$‘000s$‘000s$‘000s$‘000s$‘000s
(reported)(reported)(reported)(restated)(adjusted)
Revenue112,044132,631181,779225,093186,073
Net surplus/(loss) after tax8,13410,26510,7728,604(17,503)
Operating cash flow16,10813,4071,01872619,563
Net cash/(overdraft)34,24426,67012,473(4,737)7,745
Bank loans--7,40911,66711,185
Total assets113,811126,181194,310217,786193,110
Shareholders' equity94,60097,156105,677112,73292,740
DIVIDENDS (CENTS PER SHARE)
20162017201820192020
Interim4.04.04.04.0-
Final5.56.06.04.0-
EMPLOYEES (NUMBER)
20162017201820192020
New Zealand197215249248188
Australia80849510177
China3327333635
Americas5044748356
Europe4053327316257
Total400423778784613
20192020
Note$‘000s$‘000s
Reported EBITDA 20,010 (11,646)
Impairment of assets
1
B8 -
(7,600)
Restructuring costs
1
E2
- (4,257)
Project impairments
2
- (6,295)
Wage subsidies
2
- 2,777
Total adjustments- (15,375)
Underlying EBITDA20,010 3,729
FIVE YEAR TRENDS
FINANCIAL PERFORMANCE
Revenue reduced by 17% compared to prior comparative
period (pcp) - NZ, Australia and Asia down on pcp, partially
offset by stronger US sales in H120.
Results materially impacted by COVID-19.
EBITDA impacted by reduced revenue, lower volumes leading
to lower overhead recoveries, margin erosion, forex impact
and restructuring costs.
Non-trading adjustments comprise:
• non-cash $7.6m impairment on assets.
• $4.3m restructuring expense.
• $6.2m of one-off project impairments to close-out
several challenging legacy Australasian projects.
• These have been offset by $2.8m of wage subsidies included
in FY20.
Improved operating cash flow, benefitting from timing of
project milestones and strong working capital disciplines.
No final dividend has been declared.
Underlying EBITDA is a Non-GAAP measure that has been used
in the commentary of the FY20 performance to provide users of
the financial information with a clearer picture of the underlying
trading performance in FY20. This is consistent with internal
reporting to management. The reconciliation below shows the
adjustments made from EBITDA reported in the Statement of
Comprehensive Income to underlying EBITDA.
Reconciliation of Reported EBITDA to Underlying EBITDA
1
Refer to note A3 for split by segment
2
All adjustments are within the Australasian segment
ANNUAL REPORT 2020
PAG E 5

CHAIRMAN'S COMMENTARY
On behalf of the Board of Directors, it is my
pleasure to present Scott Technology’s 2020
Annual Report.
The past nine months have been dominated
by the COVID-19 pandemic, the effects of
which will continue to be felt for some time.
This global health crisis has had significant
economic consequences for many countries
and communities and in these unprecedented
times Scott is fortunate to be an industry
leader, operating in markets where our
technologies are needed.
standards with continuous improvement of our
health and wellbeing outcomes for all our staff
and stakeholders. We have set the same best
practice expectations across all our operations,
in all regions.
The Health & Safety Committee comprises all
Board members.
FINANCIAL PERFORMANCE
The company achieved sales of $186.1m, despite
the major disruptions we experienced in all of
the markets we operate in. Notwithstanding the
very challenging circumstances, management
has diligently collected a large portion of our
outstanding debtors and reduced inventories
where appropriate. This has strengthened our
cash position markedly. I would like to applaud
the huge effort that has gone into achieving this
outcome.
I would also like to thank our very supportive
major shareholder, JBS Australia Pty Ltd. They
have provided on demand assistance, including
standby funding facilities.
The bottom line result includes non-cash, non-
trading adjustments relating to the restructure
and the close-out of several challenging
projects. While disappointing, this has put
us onto a stronger footing for the future. We
are looking to deliver an improved result and
increasing shareholder value in FY21 as we
move ahead with a leaner and more focused
organisation and under our new strategy.
DIVIDEND
The Directors are recommending that no
dividend be paid for the year ended 31 August
2020. The Board deems this decision to be a
prudent one due to the uncertainty that still
exists around the globe.
GOVERNANCE
During the year, Andre Nogueira and Chris
Hopkins resigned as Directors. I would like to
thank them both for their contributions to the
growth of the company.
I WOULD LIKE TO ACKNOWLEDGE AND
THANK OUR PEOPLE ACROSS THE GLOBE

FOR THEIR EFFORTS OVER THE YEAR
I would like to acknowledge and thank our
people across the globe for their efforts over
the year, despite the economic and personal
challenges arising from COVID-19.
Scott Technology has survived the First World
War, the Spanish Flu, the Great Depression
and the Second World War and each time has
bounced back strongly. I am sure we will see
the same resilience post COVID-19.
With the appointment of John Kippenberger as
CEO, announced at last year’s Annual Meeting,
John set about building his team of executives
whom he has belief in, to take Scott forward
after the restructuring that was required as we
looked to create a leaner cost structure for the
future. John is very focused on the ‘Engineering
Scott to High Performance 2025’ strategy which
sets five clear foundations to achieve profitable
growth. This has had full sign off from the
Board of Directors.
HEALTH & SAFETY
Health & Safety is an important focus for
Scott and we look for the same commitment
from our customers. Our commitment and
results are good, but we strive for even better
Stuart McLauchlan - Chairman and Independent Director

SCOTT TECHNOLOGY LIMITED
PAG E 6

Stuart McLauchlan
Chairman & Independent Director
The Board welcomed Alan Byers and John
Kippenberger to replace Andre and Chris.
I look forward to working with them both
during the exciting times we have ahead of us.
OUTLOOK
Despite the difficulty of operating a global
company from New Zealand in the past year,
we are seeing good engagement from our
customers. This is resulting in orders being
received, which are keeping our forward orders
book in a satisfactory position heading into the
current financial year.
We have sufficient confidence in our sales
prospects and operational developments to target
growth and a lift in year on year in performance in
the year ahead.
On behalf of the Board, I would like to thank our
shareholders for your continued support for our
company, the Board and management. We look
forward to welcoming you to our Annual Meeting
later this year and updating you on our progress.
CHAIRMAN'S COMMENTARY
ANNUAL REPORT 2020
PAG E 7
ANNUAL REPORT 2020
PAG E 7
Scott single tower primal system, Australia

CHIEF EXECUTIVE
OFFICER'S COMMENTARY
The 2020 financial year has been one filled
with an extraordinary amount of challenge,
together with some exciting changes, to build
the foundations for a stronger future for Scott.
At all times the Scott team has worked with a
sense of urgency, resilience and commitment
to overcome the challenges in front of us while
driving the business onto a successful future.
In December 2019, with the support of the
Board, we commenced a review of the existing
Scott strategy and cost base.
Excellence where each plant will have a specific
focus on a product or industry sector, rather than
all plants striving to produce a number of different,
and often highly complex, systems and products.
In May 2020, we announced our new
‘Engineering Scott to High Performance 2025’
strategy, which is focused on positioning Scott
as the first choice for customers around the
world wanting smart automation and robotic
solutions which make their businesses safer,
more productive and more efficient. Our
strategy identifies five foundations to achieve
profitable growth and we have set ourselves
a number of goals under each of these. We
are pleased to report that, despite intense
disruptions of the global pandemic, the team
has made important strides forward.
The first two foundations of our strategy
are focused on building authentic customer
partnerships which yield repeat business, as
well as pivoting our sales mix to include a higher
percentage of repeat, profitable sales of our
products and services. This approach brings
with it efficiencies and risk reduction to the
commercial outcome.
Many of our global multinational customers
have multiple factories across various parts of
the world and our aim is to take a longer term
partnership approach. In two existing examples
in North America, over the past six months, we
have moved our engagement from focusing
solely on completing one standalone system
to now having an agreement whereby the
customer will take a number of repeat systems
over the next three to five years.
To support the successful achievement of our
aspirations, we have taken important steps
to build additional strength and experience
in the Executive Team of the Group. This has
included the recruitment of a new Chief
Operating Officer, as well as establishment of
Regional Directors for each of our business
units, appointment of a new CEO and CFO along
While revenues of the Group had grown
during the prior two years, in part due to the
completion of several important acquisitions,
it was timely to review the size of our global
operational base and cost structure relative to
our near-to-medium term growth projections.
This review set the plans for a restructure
and right sizing of the Group, both in terms of
closing down some areas of excess capacity,
as well as re-setting the organisation structure
across our four clear regional business units -
Australasia, China, Europe and North America.
As part of this, we had to make some hard
decisions around our workforce, resulting in a
number of our team being let go. These people
were valued employees and we have done
what we can to support them through this
process. The restructuring process was well
progressed before the COVID-19 pandemic
started taking hold and the outcome is a more
efficient and appropriately resourced business.
In line with our Scott 2025 strategy, each
of our regional business units is led by a
Regional Director with local teams providing
product expertise, sales and customer support.
Manufacturing plants are becoming Centres of
John Kippenberger - Chief Executive Officer

WE MOVED QUICKLY TO ADAPT TO
THE EVER-CHANGING CONDITIONS OF
THE NEW GLOBAL ENVIRONMENT.
SCOTT TECHNOLOGY LIMITED
PAG E 8

CHIEF EXECUTIVE
OFFICER'S COMMENTARY
with an expansion of the Marketing and People
role. We are pleased that a number of these
have been internal appointments, reflecting the
strength and calibre of our team.
FACING INTO THE PANDEMIC
With our global operations spanning across four
continents, COVID-19, or more specifically the
travel restrictions and global economic impact
from the pandemic, has created tremendous
challenges for our company.
As the pandemic moved from its initial impact
on our Qingdao operations in China early in
2020, then into the US and other parts of the
world, our priority was, and continues to be, on
the safety and wellbeing of our employees. We
repatriated employees back to their homelands
and also worked closely with our regional
teams to build and implement relevant risk
management plans tailored to their regions.
Under the restrictive conditions of the
pandemic, the task of installing, commissioning
and servicing equipment, with people often
needing to travel across national borders,
suddenly became one of our biggest
challenges. These travel restrictions resulted
in limited access to customer sites and delays
to a number of project installations and
commissioning work across the Group.
We moved quickly to adapt to the
ever-changing conditions of the new global
environment. This has included building the
required skill-sets on the ground in several parts
of our global market, as well as finding ways to
increase the remote support to local teams from
highly specialised areas of the business, such as
robotic programmers or vision engineers. It also
includes introducing greater versatility to working
with local sub-contracting partners in some parts
of the world, such as the United States.
Undoubtedly, the spread of the virus has
resulted in delays and inefficiencies to Scott’s
operations and activities around the world.
We know that we must, and will, continue to
evolve our business model to place increased
levels of locally skilled resources on the ground
in several key geographies, again most notably
in America. This model will transcend the past
practices of fly-in, fly-out resourcing to some of
our key markets.
Decisive steps taken during the early stages of
the pandemic to create strong control over cash
flows have delivered positive results across the
Group. A new line of funding from JBS Australia
Pty Ltd was also immediately put into place as a
cash reserve, however, we are pleased this has
only been partially drawn down.
Positively, while the initial shock of the global
pandemic caused delays over some projects, we
have seen several industries and regions more
recently starting to make positive investment
decisions around our automation and robotic
projects, products and services. In some cases,
such as the US meat processing sector, we see
the demand for automation (which was already
building pre-COVID-19 due to the increasing
issues around labour availability) now gaining
greater traction and acceleration as the issues
around intensely populated, cold temperature
controlled meat plants takes on a higher level of
risk under the pandemic.
FY20 FINANCIAL PERFORMANCE
Scott’s results for the year ended 31 August
2020 reflect the material impact of COVID-19
on our business, as well as the right sizing of
the organisation, the timing of projects and
milestone payments, and legacy projects which
are in the process of being closed out.
While we have not measured the impact of
COVID-19 in terms of lost revenue and gross
margin, we do know that access to sites,
travel restrictions and customer deferral of
investment spend, have had a significant impact
on our ability to close-out, or progress projects,
in a timely manner.
Revenue was down 17% on the prior year
to $186.1m, with a stronger performance in
the USA partially offsetting the reduction in
Australasia and Europe. China was slightly down
year on year, and was one of the first regions to
recover after being impacted by COVID-19 early
in the 2020 calendar year.
Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA) of $(11.6)m was
impacted by the revenue decrease, and also
includes non-trading adjustments of $15.3m.
These comprise $7.6m impairments on assets,
$4.3m of restructuring expenditure, $6.2m of
project impairments and $2.8m of wage subsidies
ANNUAL REPORT 2020
PAG E 9

received. Excluding these adjustments, underlying
EBITDA was a profit of $3.7m.
A considerable amount of energy and activity
during the past year has been spent on moving
a number of challenging Australasian projects to
either acceptable outcomes for both Scott and
our customers, or to an exit.
Some of these financial provisions were taken
at the half-year in anticipation of the challenges
Scott was facing at that point on the respective
projects. However, in two cases the pathways,
which looked like potential positive outcomes
at the time, have subsequently closed as the
team reflected on operational progress and the
commercial position of the project, versus the
remaining completion risk.
Critically, we have now introduced a
mandatory pre-bid review on all large project
bids. The objective is to fully understand the
development risk inherent in a project and
ensure this is sufficiently factored into our timing
commitments and pricing to avoid Scott taking on
a disproportionate part of any risk.
we would have liked, we are confident that our
new strategy will lead to a return to sustainable
and profitable returns in the years ahead.
INDUSTRY OUTLOOK
In line with our new strategy, we have identified
five key sectors which leverage Scott’s leading
technology platforms and offerings - Mining,
Meat, Appliances, Material Handling & Logistics,
and Industrial Automation - with strong growth
opportunities in each.
Mining: The Scott mining business has continued
to grow strongly during the year as high precious
metal and gold prices see our customers
investing in new and increased capacity,
primarily in Australia. Our customers such as
Rio Tinto, MinAnalytical and Fortesque Metals
Group continue to look to Scott for automated
laboratory solutions and their ongoing standard
product (Rocklabs) and service needs.
Meat: Sales of our BladeStop band-saw
machines, together with an increase in demand
for our service skills, has continued to grow
during the past 12 months. However, 2020
was a relatively quiet demand year for our
larger primal cutting automation systems. We
are now pleased to have a number of large
system design and pricing opportunities which
are moving deep into the sales process. We
are confident that, together with our multiple
system sales opportunities to JBS companies
in the United States, these will drive a stronger
revenue and margin generation in the coming
12 to 24 months.
Appliances: Increases in global consumer
demand for white goods over the past six
months have seen a growing level of interest
from our large appliance customers. These
world renowned brands, including GE, Haier,
Sub-Zero, Electrolux and Bosch, are looking for
a mix of upgrades to existing production lines,
along with new line builds, to increase capacity
in the United States and China, in particular.
Material Handling & Logistics: The long lag
of the Brexit negotiations, combined with
the uncertainty of the pandemic investment
environment for many food companies in
Europe, saw a challenging year for our largely
European-focused materials handling and logistics
The restructuring programme was completed in
August 2020 and the full benefits are expected
to be seen in FY21.
Despite the challenges faced during the year, the
company finished the year with a strong balance
sheet and a net cash position of $7.7m, compared
to prior year of ($4.7m). The team made good
progress on working capital management, with
a strong improvement in both debtors and
creditors, despite the COVID-19 environment,
and disciplined cost management. We delivered
strong operating cash flows of $19.6m, which
we believe are now more representative of the
underlying business.
The bottom line result, including non-trading
adjustments, was a net loss after tax of
$(17.5)m. While this headline number is not as
WE ARE CONFIDENT THAT OUR
NEW STRATEGY WILL LEAD TO A
RETURN TO SUSTAINABLE AND
PROFITABLE RETURNS IN THE

YEARS AHEAD.
SCOTT TECHNOLOGY LIMITED
PAG E 10

John Kippenberger
Chief Executive Officer
business (Alvey). However, our team is fully
focused on rebuilding our European market in this
sector, as well as taking our proven technology
into Australasia and North America. To this
end we have early-stage opportunities in both
markets which will provide the ideal platform to
deliver successful testimony sites upon which
to build a large end-of-line system business
beyond Europe. The recently completed global
joint venture with Savoye, world leaders in
carton stacking and retrieval systems, brings an
important element to our end-to-end capability
in warehousing projects for the future.
Industrial Automation: This business includes
our autonomous guided vehicle (AGV) offer
from our US based Transbotics business,
together with our reconditioned Robotworx
business and our general robotic and automation
projects in areas such as welding. Our US
business continues to see ongoing demand from
companies looking for specialised large weight-
carrying autonomous guided vehicles.
In Australasia we have a number of ongoing
projects in the area of robotics and automation,
and we will build our sales pipeline throughout
the year ahead in areas where Scott brings
proven experience, capability and margin
producing activity to projects.
OUTLOOK
The Scott team has met the challenges of the
past year with courage and conviction.
We remain cautious about the ongoing impact
of COVID-19 and appreciate 2021 will bring a
new set of challenges as the world continues to
settle into the ‘new normal’.
However, our new and more efficient
organisational footprint will stand us in good
stead, with a leaner cost base and a more
appropriate regional network that will allow us to
deliver an improved service to our customers.
We have identified a number of opportunities
and are focused on building our sales pipeline
in areas that offer the best returns, while
minimising risk. We are well positioned to
build on our reputation, leading products and
expertise to deliver earnings growth and margin
improvement.
Thank you for your continued support.
REVENUE BY INDUSTRY
REVENUE BY GEOGRAPHY
Australia
18%
Americas
32%
Europe
41%4%
New ZealandChina
5%
Materials Handling
& Logistics
28%
Industrial
Automation
28%
Mining
18%
Appliances
11%
Meat
Processing
15%
ANNUAL REPORT 2020
PAG E 11

SCOTT 2020-25
ENGINEERING SCOTT
TO HIGH PERFORMANCE
THE SCOTT VISION IS TO BE THE FIRST CHOICE FOR BUSINESSES
AROUND THE WORLD WANTING SMART AUTOMATION AND
ROBOTIC SOLUTIONS WHICH MAKE THEIR BUSINESSES SAFER,
MORE PRODUCTIVE AND MORE EFFICIENT.
SCOTT 2020-25
SCOTT TECHNOLOGY LIMITED
PAG E 12
OUR MISSION
TO DELIVER SMART
AUTOMATION SOLUTIONS
THAT TRANSFORM
INDUSTRIES

SCOTT 2020-25
FOUNDATIONS FOR
PROFITABLE GROWTH
AUTHENTIC CUSTOMER
PARTNERSHIPS
Continue to build authentic
customer partnerships which
yield repeat business and
growth opportunities.
LEADING EDGE
TECHNOLOGY
Leverage Scott’s leading
technology platforms and
offerings.
ONE GLOBAL TEAM
Create an effective global
Scott ‘identity’ and culture,
with a focus on delivering
excellence and positive
customer outcomes.
OPERATIONAL
EXCELLENCE
Robust systems, controls and
processes to ensure delivery
of projects on scope, on time
and on budget.
ROBUST GLOBAL
PLATFORMS
Build an operations infrastructure
matched to our growth curve.
We are very pleased with the progress achieved
in developing our new five-year strategy,
together with the early stages of implementation
across several areas of the plan. Given the
inevitable challenges and necessary distractions
of the ever-moving pandemic, the team met
the task of looking into the future of Scott with
strong and insightful conviction.
The strategy is well under way in several
areas including:
• Building deep, long-term customer
relationships which will increasingly focus
on medium-to-long range capital planning
and the associated design/build projects.
These relationships will be supported by
an increased focus on providing timely and
effective service support, bringing with it an
important degree of customer intimacy and
confidence in the Scott people, system and
product performances.
• We are investing in our product offers
(BladeStop and Rocklabs) together with
our service businesses as we look to move
the important projects/products/services
balance from 60/20/20 in 2020 to 40/30/30
over the next five years. This mix will bring
greater margin stability and cash flow
generation as we balance the high-margin
product and service sales with the varying and
more cyclical flows of the project business.
• We have recently welcomed new executive
members to the team who bring with
them a deep knowledge and experience in
managing global engineering businesses.
These executives are already introducing
new ways of working to our design/
procure/make/deliver activities along with
increased discipline and structure to our
pre-bid reviews and project management
capabilities.
• We will continue to invest in the health and
wellness of our global Scott team to ensure
we come through this challenging COVID-19
period in a fit and energised state to take on
the exciting future ahead of us.
GIVEN THE INEVITABLE
CHALLENGES AND NECESSARY
DISTRACTIONS OF THE EVER-
MOVING PANDEMIC, THE TEAM
MET THE TASK OF LOOKING INTO
THE FUTURE OF SCOTT.
ANNUAL REPORT 2020
PAG E 13
John Kippenberger, Chief Executive Officer

AUSTRALIA & NEW ZEALAND
REGIONAL UPDATE
CHINA REGIONAL UPDATE
Twain Drewett, Regional Director - ANZ

Cathy Zhang, Regional Director - China
We design and build Appliance manufacturing
systems in New Zealand, with our team then
travelling globally to install and commission these,
as well as for upgrade work on existing systems.
The COVID-19 travel restrictions and closed
borders, specifically in the United States, have had
a significant impact on our ability to deliver on
these projects in FY20.
The Industrial Automation business provided a
strong year with solid sales in palletising, welding
and materials handling.
While the local markets have been significantly
impacted by social distancing restrictions and
other containment measures that have been put
in place to control COVID-19, economic conditions
are expected to improve as the pandemic is
brought under control. Government stimulus is
expected to be of benefit to Scott, particularly
in Australia where $1.5 billion in new funding
will be invested over the next four years in the
Modern Manufacturing Strategy. Scott is uniquely
positioned across the ANZ region to maximise this
opportunity. Our growth potential lies in providing
more of our products to existing customers, such
as materials handling systems to meat customers,
and we will also be continuing to build on customer
partnerships, particularly in the Mining sector, to
sell more of our products and systems.
second half of the year, with multiple large
projects keeping the team busy.
Increasing demand for automation is being driven
by strong consumer demand for whitegoods
customers like Bosch and Haier, Government
promotion, increasing labour cost, and the impact
of COVID-19 on manufacturing sites, with more
businesses looking to invest in equipment. A key
focus for the year ahead is on delivery and costs
to ensure a competitive regional offer.
THE FY20 YEAR WAS CHARACTERISED
BY MIXED PERFORMANCE ACROSS
SCOTT’S STRATEGIC INDUSTRIES
With sales revenue representing 22% of total
Group revenue in FY20, Australasia market
continues to show strength, significantly for
mining and meat customers. The FY20 year
was characterised by mixed performance
across Scott’s strategic Industries in Australasia.
Pleasingly, we saw a very strong performance
in Mining with significant inroads made into
the automated laboratory and sampling space.
After a slow start, the Meat business tabled a
significant upturn in opportunities and interest
in our lamb deboning, materials handling and
BladeStop business, with a number of large
projects secured late in 2020 and others
forecast for early 2021.
China is our most recent market, with sales
revenue representing 5% of total Group revenue
in FY20. Most of our activity in China is in
Appliances, for example, air conditioning and
washer cabinet assembly lines.
China was one of the first regions to be
impacted by COVID-19 restrictions, with
almost no sales in the first half of the year, but
it was also one of the first to recover. Several
new customers came on board during the
We have Centres of Excellence in New Zealand
for our Rocklabs mining products and
Appliances manufacturing lines, and in
both Australia and New Zealand for Meat
processing systems. Additionally, in Australia
we have a Centre of Excellence for Industrial
Automation systems. We also manufacture
BladeStop in Australia.
SCOTT TECHNOLOGY LIMITED
PAG E 14

Scott robotic refuelling installed for Rio Tinto, Australia
AUSTRALIA & NEW ZEALAND
REGIONAL UPDATE
CHINA REGIONAL UPDATE
ANNUAL REPORT 2020
PAG E 15

Pomuni's fully automatic multi-line palletising system for cases of potato products, Belgium
SCOTT TECHNOLOGY LIMITED
PAG E 16

without compromising quality.
Historically, Appliance systems have also played
a key role in European sales, and we are focused
on rebuilding this important part of the business,
given many of our global appliance customers have
factories across Europe.
COVID-19 continues to create uncertainty
across Europe and, in conjunction with the
lack of agreement around Brexit, has created a
challenging investment environment for many food
customers. However, the future pipeline looks
solid, with a number of opportunities for Scott. We
have identified the potential to grow our sales of
BladeStop and Materials Handling systems, as well
as rebuild the Appliance side of the business and
the team is looking to the future with confidence.
COVID-19 has seen increased interest for BladeStop
saws, along with other meat automation solutions
from smaller producers.
All the Transbotics projects are now being
completed, including the commissioning of an AGV
system in China, in conjunction with the Scott China
team who will support the customer when our
US personnel leave after completion. RobotWorx
has also caught up on the delayed projects and
completed shipping all the backlog orders.
The US is supporting several onsite
requirements, both with internal resource
and contractors, for the Mining and Appliance
sectors of the Group where international travel
restrictions have been imposed.
In the US our biggest customer segments are
Industrial Automation (RobotWorx) and AGVs
(Transbotics) and we have identified significant
growth opportunities in the Meat sector,
particularly around pork and poultry, and in
Materials Handling. These are in the early stages
and will be a focus for the team in FY21.
With sales revenue representing 41% of total
Group revenue in FY20, Europe continues
strong in sales for Materials Handling solutions,
such as palletising, conveying, high speed picking,
and storage and retrieval, with some BladeStop
sales. Customers are primarily in the food and
beverage sector, ranging from snack producers to
warehousing and logistics.
The operational focus for the year was to
centralise areas of expertise within Europe and
the Scott Group. This resulted in the closure of
our Appliances facility in Germany, with the work
moved to our high-performance facilities in
New Zealand and China, and providing additional
leverage to lower operating costs. BladeStop
manufacturing was also relocated to our facility
in the Czech Republic for lower operating costs
The FY20 year for Scott in the Americas started
well, flowing on from the busy 2019 year.
However, the impact of COVID-19 became
increasingly evident, affecting the ability of
Transbotics and RobotWorx to deliver on
previous project schedules. Pleasingly, orders
were deferred, not cancelled, and we have
been able to accommodate all our customers’
needs while accepting progress payments in
recognition of the delays. A strong comeback
in Q4 for Transbotics resulted in a positive
start for 2021 across the industries. Finishing
FY20 with sales revenue representing 32% of
total Group revenue, primarily from Industrial
Automation and AGV (Automatic Guided
Vehicles) sales.
BladeStop has seen continued growth in
both the protein and industrial (non-protein)
industries, including the installation of 15 saws
into a JBS Beef facility in Texas with the Connect
reporting function enabling the saws’ operational
performance to be monitored remotely. The
disruption to larger processors’ capacity from
EUROPE REGIONAL UPDATE
Aaron Vanwalleghem, Regional Director - Europe
AMERICAS REGIONAL UPDATE
Tony Joyce, Regional Director - Americas

ANNUAL REPORT 2020
PAG E 17

OPERATIONAL EXCELLENCE
MAKE
This initiative is primarily focused on our
manufacturing and production facilities.
The DFMA process will have a positive effect on
manufacturing, with a reduction in waste from
re-work. The additional benefits are product
quality improvement and staff satisfaction.
Lean deployment in Manufacturing is a
continuous improvement activity, and as such
will be an ongoing journey.
DELIVER (PROJECT MANAGEMENT)
In our project management division we have
deployed industry best practice, Earned Value
Management (EVM) as our preferred project
management methodology for complex
projects. EVM is an early warning tool for
project management, measuring project
financials (CPI, Cost Performance Index) and
project schedule (SPI, Schedule Performance
Index) on a unified scale, allowing project
managers to simply identify cost or schedule
slippage. Armed with this information, the
project manager can identify and remediate the
problem before the project is compromised.
THE KEY OBJECTIVE FOR
OPERATIONS IS TO DELIVER PROJECTS,
PRODUCTS AND SYSTEMS, ON TIME,
ON QUALITY, AND ON BUDGET.
DESIGN (ENGINEERING)
We are in the process of deploying industry
best practice, known as DFMA (Design for
Manufacturing and Assembly). The benefit of
this methodology is to sequence and stage
gate the engineering process. For example,
procurement and manufacturing does not
begin until the Design engineering is “frozen”,
thereby avoiding costly re-engineering,
equipment re-ordering, and additional labour
and schedule slippage. This methodology is well
aligned to LEAN best practice.
PROCURE
Approximately 70% of our procurement spend
is conducted via 30% of our supplier base.
The initiative deployed is entering into supplier
agreements, forging better relationships with
our suppliers, driving down costs, improving
conformance of delivery (COD) and better lead
times. Additional benefits of this initiative are
lower inventory levels for Scott.
Chris Steedman, Chief Operations Officer

DESIGN MAKE PROCURE DELIVER
To deliver high performance in operations and
future proof our business, we have designed and
implemented a number of innovative systems,
processes and methodologies, based on industry
best practise to standardise our operations.
The key objective for Operations is to deliver
Projects, Products and Systems, on time, on
quality, and on budget.
Achieving these key components will improve
customer satisfaction, provide higher profits for
the business and attract repeat business.
The high level value stream of Operations is:
We have recently established a PMO, (Project
Management Office), to conduct regular
project reviews. The PMO is managed
outside of the Projects division to maintain,
segregation of duties.
Additionally, the PMO provides leadership and
guidance in solving project issues and provides
best practise initiatives to the business.
SCOTT TECHNOLOGY LIMITED
PAG E 18

OPERATIONAL EXCELLENCE
Transbotics forklift AGV (automated guided vehicle), USA
ANNUAL REPORT 2020
PAG E 19

Renowned viennoiserie & danish pastry producer in Belgium

WE BUILD CONFIDENCE, DO WHATS RIGHT,
AND DELIVER ON WHAT WE PROMISE.
PEOPLEPEOPLE
ABOVE ALL WE VALUE

EXCELLENCE
W
E

P
U
R
S
U
E
WEWITH
INTEGRITY
actact

RESULTS
WE ARE TO
committedcommitted
WE ARE ONE TEAM. WE RESPECT EACH OTHER AND
WORK COLLABORATIVELY TO ACHIEVE COMMON GOALS.
WE THRIVE ON A CHALLENGE AND WE DELIVER FOR
OUR CUSTOMERS BECAUSE IT IS WHO WE ARE.

TOGETHER WE EVALUATE AND TAKE ACTION, BEING
ACCOUNTABLE THROUGH TO COMPLETION, NO EXCUSES.

RESULTS
OUR VALUES
SCOTT TECHNOLOGY LIMITED
PAG E 20

Kate Rankin
Chief Financial Officer
Tony Joyce
Regional Director - Americas
Aaron Vanwalleghem
Regional Director - Europe

Chris Steedman
Chief Operations Officer
Casey Jenkins
Director - Marketing and People
Cathy Zhang
Regional Director - China
Twain Drewett
Regional Director - ANZ
John Kippenberger
Chief Executive Officer
OUR TEAM
Full profiles available on the Scott website at www.scottautomation.com/our-company/our-people
ANNUAL REPORT 2020
PAG E 21

Stuart McLauchlan
Chairman &
Independent Director
John Kippenberger
Chief Executive Officer
Brent Eastwood
Director
Derek Charge
Independent Director

Alan Byers

Director
Edison Alvares
Director
John Thorman
Independent Director
John Berry
Alternate Director
OUR BOARD
Full profiles available on the Scott website at www.scottautomation.com/investor-relations/governance
SCOTT TECHNOLOGY LIMITED
PAG E 22

ANNUAL REPORT 2020
PAG E 23
KEY
Accounting Policy
Key judgements and
other judgements made
INDEX TO THE FINANCIAL STATEMENTS
FINANCIAL REPORT
For the year ended 31 August 2020
C. Capital & Funding
51
C1.Share Capital51
C2.Earnings & Net Tangible Assets Per Share52
C3.Borrowings52
C4.Trade Creditors & Accruals54
C5.Leases54
C6.Cash Flow Hedge Reserve56
C7.Employee Benefits56
C8.Provision for Warranty57
C9.Share Based Payment Arrangements57
C10.Onerous Contract Provision58
D. Risk Management58
D1.Financial Instruments58
E. Group Structure & Subsidiaries65
E1. Acquisition of Business65
E2. Restructuring Expenses65
E3. Subsidiaries66
E4. Investments Accounted for Using the
Equity Method
67
E5. Related Party Transactions69
F. Other Disclosures70
F1.Notes to the Consolidated Statement of
Cash Flows
70
F2.Contingent Liabilities71
F3.Key Management Personnel Compensation71
F4.COVID-19 and Going Concern72
F5.Subsequent Events72
Independent Auditor’s Report
73
Consolidated Statement of
Comprehensive Income
24
Consolidated Statement of Changes in Equity
25
Consolidated Balance Sheet
26
Consolidated Statement of Cash Flows
27
Notes to the Consolidated Financial Statements
28
Summary of Accounting Policies
28
A. Financial Performance
31
A1. Revenue from Contracts with
Customers & Operating Expenses
31
A2. Income Taxes37
A3. Segment Information39
B. Assets
41
B1. Trade Debtors41
B2.Inventories43
B3. Contract Assets/Liabilities43
B4. Property, Plant & Equipment44
B5. Goodwill45
B6. Intangible Assets48
B7. Research & Development Costs50
B8. Impairment of Assets50
B9. Development Assets51

SCOTT TECHNOLOGY LIMITED
PAG E 24
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
For the year ended 31 August 2020
20202019
Notes$'000s$'000s
(restated)
RevenueA1
186,073
225,093
Other operating incomeA1 3,389 2,441
Share of joint ventures’ net surplusE4 149 444
Raw materials, consumables used & operating expenses (118,023) (134,792)
Employee benefits expense
(71,377)
(73,176)
OPERATING EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AMORTISATION,
IMPAIRMENT OF ASSETS AND RESTRUCTURING EXPENSES (OPERATING EBITDA)
211
20,010
Impairment of assetsB8(7,600) -
Restructuring expenseE2(4,257) -
(LOSS)/EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (EBITDA)
(11,646) 20,010
Interest revenue 191 20
Depreciation & amortisationB4, B6, C5 (9,898) (8,969)
Finance costs (2,093) (1,715)
NET (LOSS) / SURPLUS BEFORE TAXATION (23,446) 9,346
Taxation benefit/(expense)A2 5,943 (742)
NET (LOSS) / SURPLUS FOR THE YEAR AFTER TAX (17,503) 8,604
Other Comprehensive (Loss)/Income
Items that may be reclassified to profit or loss:
Cash flow hedgesC6 - 370
Translation of foreign operations (1,136) 875
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR NET OF TAX (18,639) 9,849
Net surplus for the year after tax is attributable to:
Members of the parent entity (used in the calculation of earnings per share) (17,331) 8,690
Non controlling interests (172) (86)
(17,503) 8,604
Total comprehensive income is attributable to:
Members of the parent entity (18,467) 9,935
Non controlling interests (172) (86)
(18,639) 9,849
20202019
Note
Cents Per ShareCents Per Share
Earnings per share (weighted average shares on issue):
BasicC2 (22.2)11.3
DilutedC2 (22.2)11.3
Net tangible assets per ordinary share (at year end):
BasicC2 20.2 50.4
DilutedC220.2 50.4

ANNUAL REPORT 2020
PAG E 25
For the year ended 31 August 2020
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the year ended 31 August 2020
Fully Paid
Ordinary
Shares
Retained
Earnings
Foreign
Currency
Translation
Reserve
Non-
Controlling
Assets
Cash flow
Hedge
ReservesTotal
Note$’000s$’000s$’000s$’000s$’000s$’000s
(restated)(restated)
Balance at 31 August 2018 75,647 31,335 (935) 51 (370) 105,728
Change in accounting policy - (450) - - - (450)
Prior period restatement - -805 - - 805
1 September 2018 after change in
accounting policy (restated)
75,647 30,885 (130) 51 (370) 106,083
Net surplus/(loss) for the year after
tax
- 8,690 - (86) - 8,604
Other comprehensive income for
the year net of tax (restated)
- - 875 - 370 1,245
Dividends paid (10.0 cents per
share)
- (7,626) - - - (7,626)
Issue of shares under dividend
reinvestment plan
C1 4,426 - - - - 4,426
Balance at 31 August 2019
(restated)
80,073 31,949 745 (35) - 112,732
Net loss for the year after tax
- (17,331) - (172) - (17,503)
Other comprehensive loss for the year net
of tax
- - (1,136) - - (1,136)
Dividends paid (4.0 cents per share) - (3,102) - - - (3,102)
Issue of shares under dividend
reinvestment plan
C1 1,749 - - - - 1,749
Balance at 31 August 2020 81,822 11,516 (391) (207) - 92,740

SCOTT TECHNOLOGY LIMITED
PAG E 26
20202019
Notes$’000s$’000s
Current Assets
(restated)
Cash and cash equivalents 7,745 -
Trade debtorsB1 23,429 38,993
Other financial assetsD1 1,032 1,207
Sundry debtors 2,575 3,204
InventoriesB2 22,682 22,559
Contract assetsB3 25,381 29,834
Receivable from joint venturesE5 767 1,552
Plant and equipment held for sale - 345
Development assetsB9 - 6,786
TOTAL CURRENT ASSETS 83,611 104,480
Non Current Assets
Property, plant and equipmentB4 18,298 20,259
Investment in joint venturesE4 1,223 1,371
Other investmentsB8 - 400
Other financial assetsD1 4 9
GoodwillB5 57,316 57,951
Deferred taxA2 5,865 -
Intangible assetsB6 13,721 16,320
Right of use assetsC5 13,072 16,996
TOTAL NON CURRENT ASSETS 109,499 113,306
TOTAL ASSETS193,110217,786
Current Liabilities
Bank overdraft - 4,737
Trade creditors and accrualsC424,03331,057
Lease liabilitiesC5 3,818 4,081
Other financial liabilitiesD1 972 2,541
Contract liabilitiesB329,05216,050
Employee entitlementsC7, C9 7,815 10,298
Provision for warrantyC8 1,874 1,546
Taxation payable 92 218
Payable to joint venturesE5 431 393
Current portion of term loansC3 3,719 4,217
Deferred settlement on purchase of businessE1 1,376 2,385
Onerous contracts provisionC107,6994,236
TOTAL CURRENT LIABILITIES80,88181,759
Non Current Liabilities
Other financial liabilitiesD1 814 969
Employee entitlementsC7, C9 696 939
Lease liabilitiesC5 10,008 13,311
Deferred tax liabilityA2 - 626
Term loansC3 7,466 7,450
Deferred settlement on purchase of businessE1 505 -
TOTAL NON CURRENT LIABILITIES 19,489 23,295
Equity
Share capitalC1 81,822 80,073
Retained earnings 11,516 31,949
Foreign currency translation reserve (391) 745
Cash flow hedge reserveC6 - -
Equity attributable to equity holders of the parent 92,947 112,767
Non controlling interests (207) (35)
TOTAL EQUITY 92,740 112,732
TOTAL LIABILITIES & EQUITY 193,110 217,786
CONSOLIDATED BALANCE SHEET
For the year ended 31 August 2020

20202019
Note
$’000s$’000s
Cash Flows From Operating Activities
Cash was provided from / (applied to):
Receipts from operations 218,083 213,712
Interest received 191 20
COVID-19 wage subsidies received 3,614 -
Payments to suppliers and employees (201,651) (208,109)
Taxation paid (674) (4,897)
Net cash inflow from operating activitiesF1 19,563 726
Cash Flows From / (to) Investing Activities
Cash was provided from / (applied to):
Purchase of property, plant, equipment and intangible assets (3,206) (7,229)
Sale of property, plant and equipment 2,807 266
Dividend received from joint venture 298 -
Proceeds from advances with joint ventures 824 759
Repayment of advances with joint ventures - (280)
Purchase of businessE1 (514) (6,803)
Purchase of investments (20) (400)
Net cash inflow/(outflow) from investing activities 189 (13,687)
Cash Flows to Financing Activities
Cash was provided from / (applied to):
Repayment of borrowings (3,574) (742)
Dividends paid (1,353) (3,200)
Proceeds from borrowings 3,264 5,000
Lease payments (4,176) (3,592)
Interest paid (1,431) (1,715)
Net cash outflow from financing activities (7,270) (4,249)
Net increase / (decrease) in cash held 12,482 (17,210)
Add cash and cash equivalents at start of period (4,737) 12,473
Balance at end of period 7,745 (4,737)
Comprised of:
Cash and bank balances / (bank overdraft) 7,745 (4,737)
ANNUAL REPORT 2020
PAG E 27
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the year ended 31 August 2020
For the year ended 31 August 2020

these financial statements for the year ended 31 August 2019.
There have been no changes in accounting policy during
the year.
The information is presented in thousands of New Zealand
dollars, which is the functional currency of the Company and
the presentation currency of the Group.
CRITICAL JUDGEMENTS, ESTIMATES AND
ASSUMPTIONS
In the application of NZ IFRS the Directors are required
to make judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and various
other factors that are believed to be reasonable under the
circumstance, the results of which form the basis of making
the judgements. Actual results may differ from these
estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
if the revision affects only that period, or in the period
of the revision and future periods if the revision affects
both current and future periods. There are no significant
estimates.
Judgements made by the Directors in the application of NZ
IFRS that have significant effects on the financial statements
and estimates with a significant risk of material adjustments
in the next year include:
• Estimating the percentage of completion for long term
construction contracts (note A1)
• Provisions for losses relating to contract assets (B3)
• Goodwill impairment (note B5)
SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation
of the financial report are set out within the particular note
to which they relate. These policies have been consistently
applied unless otherwise stated.
CONSOLIDATION OF SUBSIDIARIES
The consolidated financial statements incorporate the
financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved
SUMMARY OF
ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
The consolidated financial statements presented are those of
Scott Technology Limited (“Company”) and its subsidiaries
(“Group”).
The Company is a profit oriented entity, registered in New
Zealand under the Companies Act 1993. The Company is
an FMC reporting entity for the purposes of the Financial
Markets Conduct Act 2013 and its annual financial statements
comply with these Acts.
The Group’s principal activities are the design, manufacture,
sales and servicing of automated and robotic production lines
and processes for a wide variety of industries in New Zealand
and abroad.
The financial statements have been prepared in accordance
with New Zealand Generally Accepted Accounting Practice
(“NZ GAAP”) and, for the purposes of complying with GAAP,
it is a for-profit entity. They comply with New Zealand
equivalents to International Financial Reporting Standards
(“NZ IFRS”) and other applicable financial reporting standards
as appropriate for profit oriented entities. The financial
statements also comply with International Financial Reporting
Standards (“IFRS”).
The financial statements were authorised for issue by the
Board of Directors on 30 October 2020.
BASIS OF PREPARATION
The financial statements have been prepared on the basis of
historical cost except for the revaluation of certain financial
instruments.
Cost is based on the fair value of the consideration given in
exchange for assets.
Accounting policies are selected and applied in a manner
which ensures that the resulting financial information satisfies
the concepts of relevance and reliability, thereby ensuring that
the substance of the underlying transactions or other events
is reported.
The accounting policies set out below have been applied in
preparing the financial statements for the year ended 31
August 2020 and the comparative information presented in
SCOTT TECHNOLOGY LIMITED
PAG E 28
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 August 2020

when the Company:
• has power over the investee;
• is exposed, or has rights, to variable returns from its
involvement with the investee; and
• has the ability to use its power to affect its returns.
The Group financial statements are prepared by combining
the financial statements of all the entities that comprise the
Group, being the Company and its subsidiaries as defined by
NZ IFRS 10 Consolidated Financial Statements. Consistent
accounting policies are employed in the preparation and
presentation of the Group financial statements.
Accounting policies of subsidiaries are consistent with the
policies of the Group.
All intra-group transactions, balances, income and expenses
are eliminated on consolidation.
On acquisition, the assets, liabilities and contingent liabilities
of a subsidiary are measured at their fair values at the date of
acquisition. Any excess of the cost of acquisition over the fair
values of the identifiable net assets acquired is recognised
as goodwill. Any deficiency of the cost of acquisition below
the fair values of the identifiable net assets acquired (i.e.
discount on acquisition) is credited to profit and loss in the
period of acquisition.
The results of subsidiaries acquired or disposed of during
the year, are included in the Consolidated Statement
of Comprehensive Income from the effective date of
acquisition, or up to the effective date of disposal, as
appropriate.
STANDARDS & INTERPRETATIONS EFFECTIVE
IN THE CURRENT PERIOD
The Group did not adopt any new or amended standards in
the current year and has adopted all mandatory new and
amended standards and interpretations. None had a material
impact on these financial statements.
STANDARDS & INTERPRETATIONS IN ISSUE
NOT YET ADOPTED
At the date of authorisation of the consolidated financial
statements certain new standards and interpretations to
existing standards have been published but are not yet
effective, and have not been adopted early by the Group.
Management anticipates that all pronouncements will be
adopted in the first accounting period beginning on, or after,
the effective date of the new standard. These standards
are not expected to have a material effect on the Group’s
consolidated financial statements when they are adopted.

RESTATEMENTS
Intangible Assets
An adjustment has been made to restate the 2019
comparatives to recognise the foreign exchange impact on
Intangible asset balances denominated in foreign currencies.
These balances were previously held in the functional currency
of the Group, but have been restated to the functional currency
of the foreign operation that owns the assets.
This adjustment has resulted in the following adjustments:
$0.9 million increase in the reported balance of Intangible
assets and a $0.9 million increase in the reported balance of
Equity in the 31 August 2019 Consolidated Balance Sheet.
The Translation of foreign operations in the Consolidated
Balance Sheet increased by $0.8 million at 31 August 2018
and the Statement of Comprehensive Income by $0.1 million
at 31 August 2019.
There was no impact on the reported 31 August 2019 Net
Surplus for the Year or on the Consolidated Statement of
Cash Flows.
RECLASSIFICATIONS
Development Assets
An adjustment has been made in the 2020 financial year
to reclassify two assets included in the 2019 financial
statements from Contract assets to Development assets
in the 31 August 2019 Consolidated Balance Sheet. This
adjustment reduced Contract assets by $6.8 million and
increased Development assets by $6.8 million. There was no
change in overall reported Current Assets.
This adjustment did not have any impact on Equity, the
Consolidated Statement of Comprehensive Income or the
Consolidated Statement of Cash Flows.
Onerous Contract Provision
An adjustment has been made in the 2020 financial year to
reclassify loss making contracts in the 2019 financial statements
from Contract assets/liabilities to an Onerous contract provision
in the 31 August 2019 Consolidated Balance Sheet. This
adjustment increased Contract assets by $3.8 million, decreased
Contract liabilities by $0.4 million and increased the Onerous
contract provision by $4.2 million.
This adjustment did not have any impact on Equity, the
Consolidated Statement of Comprehensive Income or the
Consolidated Statement of Cash Flows.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 29
For the year ended 31 August 2020

Segments and Cash Generating Units (CGUs)
The previously reported segment and CGU of Asia & Europe
has been split in the second half of the 2020 financial year,
into the new segments and CGUs of China and Europe.
As a result of a number of changes in the Executive and
Leadership Teams in 2020, the responsibilities of the
global teams were updated to align with the revised
Group structure and associated responsibilities. Regional
Directors have oversight and responsibility for the re-
defined segments and CGUs of Australia and New Zealand
(Australasia), America, Europe and China. All internal
reporting has been aligned to these revised segments and
CGUs.
As a result of the split of Asia & Europe, the 2019 reported
segment and CGU of Asia & Europe has been split out
in Notes A1 Revenue, A3 Segment Information and B5
Goodwill in order to report comparative figures for the new
segments/CGUs of Europe and China.
GOODS & SERVICES TAX & VALUE ADDED TAX
(“GST”)
All items in the Consolidated Balance Sheet are stated
exclusive of GST, with the exception of receivables and
payables, which include GST. All items in the Consolidated
Statement of Comprehensive Income are stated exclusive
of GST.
Cash flows are included in the Consolidated Statement of
Cash Flows on a net basis. The GST component of cash
flows arising from investing and financing activities which
is recoverable from, or payable to, the taxation authority is
classified as operating cash flows.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
FOREIGN CURRENCIES
The individual financial statements of each group entity
are presented in the currency of the primary economic
environment in which the entity operates, which is its
functional currency. For the purpose of the consolidated
financial statements, the results and position of each group
entity are expressed in New Zealand dollars, which is the
functional currency of the Company and the presentation
currency for the consolidated financial statements.
In preparing the financial statements of each individual
group entity, transactions in currencies other than the
entity's functional currency are recognised at the rates of
exchange prevailing at the dates of the transactions. At
the end of each reporting period, items denominated in
foreign currencies are retranslated at the rates prevailing at
that date.
For the purposes of presenting these consolidated financial
statements, the assets and liabilities of the Group's foreign
operations are translated into New Zealand dollars using
exchange rates prevailing at the end of each reporting
period. Income and expense items are translated at the
average exchange rates for the period, unless exchange
rates fluctuate significantly during that period, in which
case the exchange rates at the dates of the transactions are
used. Exchange differences arising, if any, are recognised in
other comprehensive income and accumulated in equity,
and attributed to non-controlling interests as appropriate.
SCOTT TECHNOLOGY LIMITED
PAG E 30

Policy
Revenue on long term contracts is recognised over
the term of the contract period using the input
method based on percentage of completion.
At balance date an assessment is made of the
percentage of completion based on the costs
associated with the work done to date relative to
the total forecast cost to complete. Included in
revenue is the value attributed to work completed,
which includes direct costs, overhead and profit,
where this is allowable under the contract.
The customer is obligated to pay a fixed amount
when a contractual milestone is met. At this time,
a receivable is recognised as the invoice is raised. If
the revenue recognised by the Group exceeds the
amounts invoiced, a contract asset is recognised.
If the amounts invoiced exceed the revenue
recognised, a contract liability is recognised. The
transaction price is the fixed price per the contract.
The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C8).
Judgement
The estimation of percentage of completion relies
on the Directors estimating costs to complete long
term contracts. If the costs incurred to complete
the long term contracts differ from the estimates
completed by management, the Directors could be
over, or under estimating the percentage of completion
on the project, and consequently revenue and profit to
date may also be over or under estimated.

Revenue recognition – standard equipment
The Group manufactures and sells a range of standalone automation and robotic equipment for use in a wide
range of industries, including:
• Rock crushers, pulverisers, ringmills and reference materials under the “Rocklabs” brand for use by mining
companies and laboratories
SECTION A
FINANCIAL PERFORMANCE
A1. REVENUE FROM CONTRACTS WITH
CUSTOMERS AND OPERATING EXPENSES
(A) ACCOUNTING POLICIES AND SIGNIFICANT JUDGEMENTS
The Group derives revenue from the following sources:
• Long term contracts
• Standard equipment
• Short term projects and service work
Revenue recognition – long term contracts
The Group designs, manufactures and sells customised automation and robotic systems for use in a wide range
of industries under fixed-price contracts. The contract period is in excess of three months and is often in excess
of twelve months. Long term contracts are specific to each customer and the Group is restricted by these
contracts to redirect the products to another customer. The Group, through these long term contracts, has an
enforceable right to payment when agreed milestones are met for performance completed up to a point in time.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 31

Policy
Revenue is recognised in full at a point in time when
control of the products has transferred, being either
when the products are shipped to, or received by the
customer, or installed at the customer’s premises,
depending on the terms of the contract.
A receivable is recognised when either a deposit is
due on receipt of a customer’s order or when the
Policy
Where the short term project contract contains
an enforceable right to payment for performance
completed to date and there is no alternative use,
revenue for short term projects is recognised over
time on the same basis as for long term contracts
(as noted above).
Where the short term project contract does
not contain an enforceable right to payment for
performance completed to date, or there is an
alternative use for the product produced, revenue
for short term projects is recognised in full at a
point in time when control of the products has
transferred, being either when the products
are shipped to, or received by, the customer, or
products are shipped to the customer, as this is the point
in time that the consideration is unconditional because
only the passage of time is required before the payment
is due.
The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C8).
installed at the customer’s premises, depending on the
terms of the contract. A receivable is recognised when
either a deposit is due on receipt of a customer’s order
or when the products are shipped to the customer,
as this is the point in time that the consideration is
unconditional because only the passage of time is
required before the payment is due.
Revenue under service contracts is recognised at a
point in time when the service is delivered.
The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C8).

Revenue recognition – short term projects and service work
The Group undertakes short term projects (less than three months) for the design, manufacture and sale
of customised small scale automation and robotic systems for use in a wide range of industries under fixed-
price contracts. In some cases the short term project contracts contain an enforceable right to payment for
performance completed to date.
The Group also earns revenue from after sales service activities associated with the equipment manufactured and
sold by the Group, including spare parts, repairs, routine or scheduled maintenance, upgrades, remote monitoring
and the operation of a 24/7 helpline. Most of these activities are on an ad hoc, as required basis, while some of
these activities are covered by an agreement for services to be provided over a specified period of time.

Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods and services over time and at a point in time in the
following major geographic manufacturing regions (segments) and revenue streams. This is consistent with the
revenue information disclosed for each reportable segment under NZ IFRS 8 Operating Segments, (see note A3).

• Bandsaw safety equipment under the “BladeStop” brand, primarily for use by meat processors
• High temperature superconductor current leads under the “HTS-110” brand
• New and refurbished industrial robots under the “RobotWorx” brand
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 32

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 33
Long term
contracts
Standard
equipment
Short term
projects and
service work Total
$’000s $’000s $’000s $’000s
Australasia manufacturing
Segment revenue29,707 30,602 15,534 75,843
Inter-segment revenue (346) (2,753) (1,309) (4,408)
Revenue from external customers29,361 27,849 14,225 71,435
Timing of revenue recognition
- At a point in time - 27,849 14,225 42,074
- Over time29,361 - - 29,361
29,36127,849 14,22571,435
Americas manufacturing
Segment revenue15,808 9,639 13,535 38,982
Inter-segment revenue275 2,030 473 2,778
Revenue from external customers16,083 11,669 14,008 41,760
Timing of revenue recognition
- At a point in time - 11,669 14,008 25,677
- Over time16,083 - - 16,083
16,083 11,669 14,008 41,760
Europe manufacturing
Segment revenue42,126 9,723 13,899 65,748
Inter-segment revenue71 965 641 1,677
Revenue from external customers42,197 10,688 14,540 67,425
Timing of revenue recognition
- At a point in time - 10,688 14,540 25,228
- Over time42,197 - - 42,197
42,197 10,688 14,540 67,425
China manufacturing
Segment revenue4,979 369 152 5,500
Inter-segment revenue- (242) 195 (47)
Revenue from external customers4,979 127 347 5,453
Timing of revenue recognition
- At a point in time - 127 347 474
- Over time4,979 - - 4,979
4,979 127 347 5,453
Total manufacturing
Segment revenue92,62050,33343,120 186,073
Inter-segment revenue - - - -
Revenue from external customers92,620 50,333 43,120 186,073
Timing of revenue recognition
- At a point in time - 50,33343,120 93,453
- Over time92,620 - - 92,620
92,62050,33343,120 186,073
Year Ended 31 August 2020

SCOTT TECHNOLOGY LIMITED
PAG E 34
Long term
contracts
Standard
equipment
Short term
projects and
service work Total
$’000s $’000s $’000s $’000s
Australasia manufacturing
Segment revenue54,666 38,583 13,251 106,500
Inter-segment revenue (1,551) (1,991) (198) (3,740)
Revenue from external customers53,115 36,592 13,053 102,760
Timing of revenue recognition
- At a point in time - 36,592 13,053 49,645
- Over time53,115 - - 53,115
53,115 36,592 13,053 102,760
Americas manufacturing
Segment revenue10,578 20,906 2,091 33,575
Inter-segment revenue74 1,954 27 2,055
Revenue from external customers10,652 22,860 2,118 35,630
Timing of revenue recognition
- At a point in time - 22,860 2,118 24,978
- Over time10,652 - - 10,652
10,652 22,860 2,118 35,630
Europe manufacturing
Segment revenue52,490 4,310 17,477 74,277
Inter-segment revenue1,477 37 712 2,226
Revenue from external customers53,967 4,347 18,189 76,503
Timing of revenue recognition
- At a point in time - 4,347 18,189 22,536
- Over time53,967 - - 53,967
53,967 4,347 18,189 76,503
China manufacturing
Segment revenue10,200 - 541 10,741
Inter-segment revenue - - (541) (541)
Revenue from external customers10,200 - - 10,200
Timing of revenue recognition
- At a point in time - - - -
- Over time10,200 - - 10,200
10,200 - - 10,200
Total manufacturing
Segment revenue 127,934 63,799 33,360 225,093
Inter-segment revenue - - - -
Revenue from external customers127,934 63,799 33,360 225,093
Timing of revenue recognition
- At a point in time - 63,799 33,360 97,159
- Over time127,934 - - 127,934
127,934 63,799 33,360 225,093
Year Ended 31 August 2019
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020

Revenue recognised in relation to contract liabilities
The following table shows how much of the revenue recognised in the current reporting period relates to carried
forward contract liabilities and how much relates to performance obligations that were satisfied in a prior year.
20202019
$’000s$’000s
Revenue recognised included in the contract liability balance at the beginning of the period
Contracts for long term projects
15,571 20,951
There was no revenue recognised from performance obligations satisfied in previous periods on long term projects.
Unsatisfied long term project contracts
The following table shows unsatisfied performance obligations resulting from fixed price long term project contracts.
20202019
$’000s$’000s
Aggregate amount of the transaction price allocated to long term project contracts that are
partially or fully unsatisfied as at 31 August
85,297 78,205
Management expects that 95% of the transaction price allocated to the unsatisfied contracts as of 31 August 2020 will
be recognised as revenue during the next reporting period ($81 million) (2019: 95% of the transaction price allocated
to the unsatisfied contracts as of 31 August 2019 will be recognised as revenue during the next reporting period
($74 million)). The remaining 5% ($4 million) (2019: 5% ($4 million)) will be recognised in the following financial year.
(B) OTHER OPERATING INCOME
Government grants
Policy
Government grants are not recognised until there
is reasonable assurance that the Group will comply
with the conditions attaching to them and that the
grants will be received.
Government grants are recognised as other
income over the periods necessary to match
them with the costs for which they are intended
to compensate, on a systematic basis. Government
grants that are receivable as compensation for
expenses or losses already incurred or for the
purpose of giving immediate financial support to the
Group with no future related costs are recognised
in profit or loss in the period in which they become
receivable.
20202019
$’000s$’000s
Rental income 217 178
Government grants related to research and development 67 2,026
COVID-19 wage subsidies 2,777 -
Gain on sale of property, plant and equipment 328 237
3,389 2,441
ANNUAL REPORT 2020
PAG E 35
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020

The Group received a Growth Grant through Callaghan Innovation which ended on 31 August 2019. Callaghan
Innovation reimbursed the Group for 20% of eligible expenditure on the Group's R&D programme in New Zealand.
The Growth Grant has been replaced by the R&D Tax Incentive Scheme, which the Group is eligible for from the
2020 financial year onwards and any tax credits will be included in A2 Income Taxes.
The Group also receives grant revenue related to research and development through its Australian subsidiary Scott
Automation and Robotics Pty Ltd.
Government wage subsidies were claimed in New Zealand by Scott Technology NZ Limited and in Australia Scott
Automation and Robotics Pty Ltd, as a result of COVID-19 and the impact on the New Zealand and Australian
businesses. The total of the subsidies received in FY20 was $2.8 million.
Scott Technology NZ Limited claimed an extension to the New Zealand wage subsidy in August 2020 totalling
$0.8 million and the extended subsidy payments will be included in the FY21 financial statements.
The Australian wage subsidy ended on 30 September 2020 and no further extension has been obtained.
(C) OPERATING EXPENSES
20202019
$’000s$’000s
Audit Services: Deloitte Limited
Group Audit 422 440
Other assurance services - 5
Total remuneration for Audit Services422 445
Non-Audit Services: Deloitte Limited
Taxation Services 66 55
Total remuneration for Non-Audit Services 66 55
The auditor of the Group is Deloitte Limited.
20202019
Other Separately Disclosed Expenses:
Note
$’000s$’000s
Directors’ fees 236 227
Superannuation scheme contributions 7,009 7,543
Unrealised fair value losses on foreign exchange derivatives
D1
82 1,334
Fair value losses on derivatives held as fair value hedges
D1
890 1,216
Unrealised fair value losses on interest rate swap contracts
D1
- 346
and after crediting:
Foreign exchange gains 450 8
Fair value gains on firm commitments
D1
1,036 1,216
Unrealised fair value gains on foreign exchange derivatives
D1
146 -
Unrealised fair value gains on interest rate swap contracts
D1
146 -
SCOTT TECHNOLOGY LIMITED
PAG E 36
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020

SECTION A: FINANCIAL PERFORMANCE
A2. INCOME TAXES
INCOME TAX RECOGNISED IN NET SURPLUS
Policy
Current tax is calculated by reference to the
amount of income taxes payable or receivable
in respect of the taxable profit or tax loss for the
period. It is calculated using tax rates and tax laws
that have been enacted or substantively enacted
by reporting date. Current tax for current and prior
periods is recognised as a liability (or asset) to the
extent it is unpaid (or refundable).
The prima facie income tax expense on pre-tax accounting profit from operations
reconciles to the income tax expense in the financial statements as follows:
20202019
$’000s$’000s
Net (loss)/surplus before tax (23,446) 9,346
Income tax expense calculated at 28% (2019: 28%) (6,565) 2,617
Non-deductible expenses / non-assessable income 1,469 (559)
Research & development tax credits claimed (Australia) (1,167) (1,112)
Under/(over) provision of income tax in previous year 569 (204)
Change in tax policy (249) -
Taxation benefit/(expense) (5,943) 742
Represented by:
Current tax 548 2,341
Deferred tax (6,491) (1,599)
(5,943) 742
Prima Facie Tax Rate
The prima facie tax rate used in the above reconciliation is the corporate tax rate of 28% payable by New Zealand corporate
entities on taxable profits under New Zealand tax law for the 2020 income tax year.
Policy
Deferred tax is accounted for using the
comprehensive balance sheet liability method
in respect of temporary differences arising from
differences between the carrying amount of assets
and liabilities in the financial statements and the
corresponding tax base of those items.
In principle, deferred tax liabilities are recognised
for all taxable temporary differences. Deferred tax
assets are recognised to the extent that it is probable
that sufficient taxable amounts will be available against
which deductible temporary differences or unused
tax losses and tax offsets can be utilised. However,
deferred tax assets and liabilities are not recognised
if the temporary differences giving rise to them arise
from the initial recognition of assets and liabilities
(other than as a result of a business combination) which
affects neither taxable income nor accounting profit.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the period when
the liability is settled or the asset is realised based
on tax rates that have been enacted or substantively
enacted at reporting date. Deferred tax is charged or
credited to profit or loss, except when it relates to items
charged or credited to other comprehensive income or
directly to equity, in which case the deferred tax is also
dealt with in other comprehensive income or in equity.
Deferred Tax Balances
ANNUAL REPORT 2020
PAG E 37
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020

2020
Opening
Balance
Charged
to Income
Charged to Other
Comprehensive
Income
Acquisition of
Subsidiary/
Business
Closing
Balance
$’000s $’000s $’000s $’000s $’000s
Gross deferred tax assets:
Trade debtors 401 (77) - - 324
Other financial assets 948 (851) - - 97
Employee entitlements 1,224 (226) - - 998
Provisions 789 3,043 - - 3,832
Tax losses 37 2,756 - - 2,793
Inventories (367) 725 - - 358
3,032 5,370 - - 8,402
Gross deferred tax liabilities:
Property, plant and equipment (1,535) 789 - - (746)
Intangible assets(2,123) 332 - - (1,791)
(3,658) 1,121 - - (2,537)
(626) 6,491 - - 5,865
In the current year there is a large increase in deferred tax on provisions charged to profit or loss. This represents
additional costs to complete projects and the impairment of assets. Refer to Note B8 and C10.
At the reporting date, the Group has unused gross tax losses of $10.0m (2019: $1.4m) available for offset against
future profits. A deferred tax asset has been recognised in respect of $2.8m (2019: $0.04m) of such losses.
It is considered probable that there will be future taxable profits available in the relevant jurisdictions to allow the
Group to utilise these losses.
2019
Gross deferred tax assets:
Trade debtors 438 (37) - - 401
Other financial assets 483 608 (143) - 948
Employee entitlements 1,183 41 - - 1,224
Provisions 696 93 - - 789
Tax losses 7 30 - - 37
2,807 735 (143) - 3,399
Gross deferred tax liabilities:
Inventories (630) 263 - - (367)
Property, plant and equipment(1,952) 417 - - (1,535)
Intangible assets (1,863) 184 - (444) (2,123)
(4,445) 864 - (444) (4,025)
(1,638) 1,599 (143) (444) (626)
During the year the New Zealand Government introduced new tax legislation for deferred tax on buildings. The impact of this legislative
change in the current year reduced the deferred tax liability on property, plant and equipment by $0.2m.
Imputation Credit Account Balances
20202019
$’000s$’000s
Imputation credits available to shareholders- 176
The above amounts represent the balance of the imputation credit account at the end of the reporting period adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax;
• Imputation debits that will arise from the payment of dividends.
Availability of these credits is subject to continuity of ownership requirements.
SCOTT TECHNOLOGY LIMITED
PAG E 38
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020

SECTION A: FINANCIAL PERFORMANCE
A3. SEGMENT INFORMATION
Policy
NZ IFRS 8 Operating Segments requires operating
segments to be identified on the basis of internal
reports about components of the Group that are
regularly reviewed by the chief operating decision
maker (the Board) in order to allocate resources to
the segments and to assess its performance.
The Group’s Board allocates resources and assesses
performance of the Group by manufacturing base,
therefore under NZ IFRS 8 the Group’s reportable
segments are:
• Australasia manufacturing
• Americas manufacturing
• Europe manufacturing
• China manufacturing
Australasia is reported as a single segment due to
the integrated nature of customers, management,
manufacturing, sales and financing activities across
New Zealand and Australia.
Americas is reported as a single segment due to
the integrated nature of customers, management,
manufacturing, sales and financing activities across
North and South America.
Asia and Europe have previously been reported as
a single segment due to the previously integrated
nature of customers, management, manufacturing
and sales activities across Asia and Europe. These
segments have been split into Europe and China
in 2020, as a result of the separation in the
management and change in focus for these regions.
Segment Revenues & Results
The following is an analysis of the Group’s revenue and results by reportable segment. For the purposes of NZ IFRS
8, allocations are based on the operating results by segment. The Group does not allocate certain resources (such as
senior executive management time) and central administration costs by segment for internal reporting purposes and
therefore these allocations may not result in a meaningful and comparable measure of profitability by segment.
2020
Australasia
Manufacturing
Americas
Manufacturing
Europe
Manufacturing
China
Manufacturing UnallocatedTotal
$’000s $’000s $’000s $’000s $’000s $’000s
Revenue 71,435 41,760 67,425 5,453 - 186,073
Segment profit 330 2,971 3,393 (196) - 6,498
Impairment of assets (7,600) - - - - (7,600)
Restructuring provision (1,291) - (2,966) - - (4,257)
Depreciation and amortisation (3,985) (751) (4,668) (52) (442) (9,898)
Share of net deficit of joint ventures (69) 287 (69) - - 149
Interest revenue 86 - - 98 7 191
Central administration costs - - - - (6,436) (6,436)
Finance costs (215) (294) (471) - (1,113) (2,093)
Net (deficit)/surplus before taxation (12,744) 2,213 (4,781) (150) (7,984) (23,446)
Taxation benefit/(expense) 5,804 (478) 356 451 (190) 5,943
Net (deficit)/surplus after taxation (6,940) 1,735 (4,425) 301 (8,174) (17,503)
ANNUAL REPORT 2020
PAG E 39
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020

2019
Australasia
Manufacturing
Americas
Manufacturing
Europe
Manufacturing
China
Manufacturing UnallocatedTotal
$’000s $’000s $’000s $’000s $’000s $’000s
(restated)(restated)
Revenue 102,760 35,630 76,503 10,200 - 225,093
Segment profit 16,426 4,915 2,770 3,278 - 27,389
Depreciation and amortisation (3,720) (323) (4,381) (35) (510) (8,969)
Share of net surplus of joint ventures (216) 605 55 - - 444
Interest revenue - - 2 8 10 20
Central administration costs - - - - (7,823) (7,823)
Finance costs (120) (147) (631) - (817) (1,715)
Net surplus after taxation 12,370 5,050 (2,185) 3,251 (9,140) 9,346
Taxation expense (3,152) (959) 958 (321) 2,732 (742)
Net surplus after taxation 9,218 4,091 (1,227) 2,930 (6,408) 8,604
Revenue reported above represents revenue generated from external customers. Inter-segment sales, which
are eliminated on consolidation, were $5 million for the year ended 31 August 2020 (2019: $3 million).
The accounting policies of the reportable segments are the same as the Group’s accounting policies.
Segment profit represents the profit earned by each segment without allocation of central administration
costs and investment revenue.
Industry information
The Group focuses its marketing on five principal industries: appliances, materials handling and logistics,
meat processing, mining, and other industrial automation (including robotics). The Group’s revenue from
external customers by industry is detailed below:
20202019
$’000s$’000s
Appliances 20,058 45,489
Materials handling and logistics 51,528 60,542
Meat processing 29,013 34,506
Mining 33,006 30,324
Other industrial automation (including robotics) 52,468 54,232
186,073 225,093
SCOTT TECHNOLOGY LIMITED
PAG E 40
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020

Geographical information
The Group sells into eight principal geographical areas. The Group’s revenue from external customers by
geographical location (of the customer) is detailed below:
SECTION B
ASSETS
B1. TRADE DEBTORS
Policy
Tra
de debtors are initially recognised at fair value
and are subsequently measured at amortised cost
using the effective interest rate method, less any
provision for expected credit losses. The Group
applies the simplified approach to measuring
expected credit losses which uses a lifetime
expected credit loss allowance. The measurement
of expected credit losses is a function of the
probability of default, loss given default and the
exposure of default.
The expected credit losses on trade receivables are
estimated using a provision matrix by reference to past
default experience of the debtor’s current financial
position, adjusted for factors that are specific to the
conditions of the industry in which the debtor operates
and an assessment of both the current, as well as the
forecast, direction of conditions at the reporting date.
Provision for expected credit losses is recognised in
profit or loss.
20202019
$’000s$’000s
New Zealand (country of domicile) 6,651 9,200
Australia and Pacific Islands 32,714 46,633
North America, including Mexico 56,142 69,168
South America 2,975 2,502
Asia 10,088 11,810
Europe 66,919 74,920
Russia and former states 7,035 6,477
Africa and Middle East 3,549 4,383
186,073 225,093
The Group holds $75.3 million of non-current assets in geographical areas outside of New Zealand, the country
of domicile (2019: $82.3 million).
Information about major customers
Sales to the Group’s largest single customer, who is from the Australasia Manufacturing segment and the Mining
industry, accounted for approximately 2.9% of total Group sales (2019: Australasia Manufacturing segment and the
Appliance Industry 5.6%).
20202019
$’000s$’000s
Trade debtors 24,715 40,487
Allowance for expected credit losses (1,286) (1,494)
23,429 38,993
ANNUAL REPORT 2020
PAG E 41
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020

Credit Period
The credit period on sales of goods ranges from 30 to 120 days depending on the terms negotiated by the customer for
large contracts. No interest is charged on trade debtors.
Impairment of Financial Assets
In relation to the impairment of financial assets, NZ IFRS 9 requires an expected credit loss model as opposed to an incurred
credit loss model under IAS 39. The expected credit loss model requires the Group to account for expected credit losses
and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition
of the financial assets. It is now no longer necessary for a credit event to have occurred before credit losses are recognised.
The calculation of impairment losses impacts the way the Group calculates the bad debts provision, now termed the
allowance for expected credit loss. The Group applies the NZ IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for trade debtors.
To measure the expected credit losses, trade debtors, other financial assets, sundry debtors and contract assets have been
grouped based on their shared credit risk characteristics and the days past due. The contract assets relate to unbilled work
in progress and have substantially the same risk characteristics as the trade debtors for the same type of contracts.
A provision matrix is determined based on historic credit loss rates for each group of customers, adjusted for any
material expected changes to the customers’ future credit risk. In addition, the company has increased the credit loss
allowance for anticipated losses from specific customers. On that basis, the credit loss allowance as at 31 August was
determined as follows;
AustralasiaAmericasChinaEuropeGroup
2020201920202019202020192020201920202019
$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s
(restated)(restated)
Debtors
Current-30 days 5,820 15,730 2,875 4,592 703 578 3,769 8,500 13,167 29,400
31-60 days 2,435 1,481 254 820 186 16 2,450 3,402 5,325 5,719
61-90 days 1,209 1,484 286 193 - - 607 129 2,102 1,806
Over 91 days 1,512 2,304 477 137 61 348 2,071 773 4,121 3,562
Total debtors 10,976 20,999 3,892 5,742 950 942 8,897 12,804 24,715 40,487
Contract assets16,67917,748 436 535 1,780 2,487 6,486 9,064 25,38129,834
Total assets27,65538,747 4,328 6,277 2,730 3,429 15,383 21,868 50,09670,321
Allowance based on
expected credit loss
- - - - - - - - - -
Expected credit loss
on individually
assessed balances
(1,132) (1,393) (37) (40) - - (117) (61) (1,286) (1,494)
Credit loss allowance (1,132) (1,393) (37) (40) - - (117) (61) (1,286) (1,494)
Trade debtors and contract assets are written off when there is no reasonable expectation of recovery. Indicators
that there are no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a
repayment plan with the Group.
The Group has not experienced delays in payment receipts as a result of COVID-19. COVID-19 has, however, been
taken into consideration when completing the expected credit losses calculations for FY20.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 42

SECTION B: ASSETS
B2. INVENTORIES
SECTION B: ASSETS
B3. CONTRACT ASSETS/LIABILITIES
Policy
Inventories are valued at the lower of cost and net
realisable value. Costs, including an appropriate
portion of fixed and variable overhead expenses,
are assigned to inventories by the method most
appropriate to the particular class of inventory,
Policy
Contract assets are balances due from customers
under long term project contracts that arise when the
Group receives payments from customers in line with
a series of performance related milestones. The Group
will previously have recognised a contract asset for any
work performed. Any amount previously recognised as
a contract asset is reclassified to a trade debtor at the
point at which it is invoiced to the customer.
with the majority being valued on a first-in-first-out
basis. Net realisable value represents the estimated
selling price for inventories, less all estimated costs
of completion and costs necessary to make the sale.
Contract liabilities relating to long term project
contracts are balances due to customers under long
term project contracts. These arise if a particular
milestone payment exceeds the revenue recognised to
date.
Deferred revenue arises from short term projects
where the Group receives payments from customers in
advance of delivering the asset to the customer.
20202019
$’000s$’000s
Raw materials 10,016 9,385
Work in progress 4,419 1,409
Finished goods 8,247 11,765
22,682 22,559
Write Downs
The cost of inventories recognised as an expense during the year includes $0.9 million (2019: $0.3 million) in
respect of write downs of inventory to net realisable value and write offs of obsolete inventory.
Assets and liabilities related to contracts with customers
The Group becomes entitled to invoice customers for long term projects when certain milestones are met. These milestones
and cash flows are agreed upfront with the customer when the contract is signed. When a particular milestone is reached, the
Judgement
Determining the level of provisions to include against
contract assets and liabilities requires an estimation
of the costs to complete for the long term projects. If
the costs incurred to complete the long term contracts
differ from the estimates completed by management, the
Directors could be over or underestimating the contract
assets or contract liabilities.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 43

SECTION B: ASSETS
B4. PROPERTY, PLANT & EQUIPMENT
Policy
All items of Property, Plant and Equipment are
stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly
attributable to the acquisition of the item. In the
event that settlement of all, or part, of a purchase
consideration is deferred, cost is determined by
discounting the amounts payable in the future to their
present value as at the date of acquisition.
Depreciation is calculated on a straight line basis
so as to write off the net cost of the asset over its
expected useful life to its estimated residual value.
The following estimated useful lives are used in the
calculation of depreciation:
• Buildings 40 years
• Plant, equipment & vehicles 1 - 13 years
Freehold
Land
at Cost
Freehold
Buildings
at Cost
Plant,
Equipment &
Vehicles at CostTotal
$’000s $’000s $’000s $’000s
Gross carrying amount
As at 31 August 2018 2,432 7,778 25,685 35,895
Acquisitions through business combinations - - 39 39
Additions - 4,657 1,866 6,523
Disposals - - (302) (302)
As at 31 August 2019 2,432 12,435 27,288 42,155
Transfer from PPE Held for Sale - - 345 345
Additions - 330 2,811 3,141
Disposals - - (3,142) (3,142)
Translation of amounts held in foreign currency - (23) 115 92
As at 31 August 2020 2,432 12,742 27,417 42,591
customer is sent an invoice and any revenue previously recognised as a contract asset is reclassified to trade receivables at
this time. If the invoice milestone payment exceeds the revenue recognised under the percentage of completion method, the
Group will recognise a contract liability for the difference.
The majority of long term contracts are not considered to have a significant financing component under the percentage of
completion method as the period between the recognition of revenue and the milestone payments is usually less than one year.
However, two contracts contain a potential financing component. The financing component has been taken into
consideration when calculating the revenue for each individual contract.
Contract assets and contract liabilities include provisions where the likelihood of cost overruns are expected as a
result of factors such as the complexity of the projects and additional costs for commissioning and installation as a
result of travel restrictions from COVID-19.
20202019
$’000s$’000s
(restated)
Contract assets25,38129,834
Contract liabilities (25,313) (16,050)
Deferred revenue (3,739) -
(3,671)13,784
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 44

Freehold
Land
at Cost
Freehold
Buildings
at Cost
Plant,
Equipment &
Vehicles at CostTotal
$’000s $’000s $’000s $’000s
Gross carrying amount
As at 31 August 2018 2,432 7,778 25,685 35,895
Acquisitions through business combinations - - 39 39
Additions - 4,657 1,866 6,523
Disposals - - (302) (302)
As at 31 August 2019 2,432 12,435 27,288 42,155
Transfer from PPE Held for Sale - - 345 345
Additions - 330 2,811 3,141
Disposals - - (3,142) (3,142)
Translation of amounts held in foreign currency - (23) 115 92
As at 31 August 2020 2,432 12,742 27,417 42,591
Freehold
Land
at Cost
Freehold
Buildings
at Cost
Plant,
Equipment &
Vehicles
at CostTotal
$’000s $’000s $’000s $’000s
Accumulated depreciation & impairment
As at 31 August 2018 - 2,189 16,861 19,050
Disposals - - (299) (299)
Depreciation expense - 445 2,700 3,145
As at 31 August 2019 - 2,634 19,262 21,896
Disposals - - (1,008) (1,008)
Depreciation expense - 399 2,575 2,974
Translation of amounts held in foreign currency - (72) 503 431
As at 31 August 2020 - 2,961 21,332 24,293
Net book value
As at 31 August 2019 2,432 9,801 8,026 20,259
As at 31 August 2020 2,432 9,781 6,085 18,298
The disposals include $1.2 million related to restructuring activities referred to in note E2.
SECTION B: ASSETS
B5. GOODWILL
Policy
Goodwill represents the excess of the purchase
consideration over the fair value of the identifiable
tangible and identifiable intangible assets,
liabilities and contingent liabilities of the subsidiary
recognised at the time of acquisition of a business
or subsidiary. Goodwill is initially recognised as an
asset at cost and is subsequently measured at cost,
less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is
allocated to each of the Group’s cash-generating
units expected to benefit from the synergies
of the combination. Cash-generating units to
which goodwill has been allocated are tested for
impairment annually, or more frequently when there
is an indication that the unit may be impaired. If
the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit,
the impairment loss is allocated first to reduce the
carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro-rata on
the basis of the carrying amount of each asset in the
unit. An impairment loss recognised for goodwill is
not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount
of goodwill is included in the determination of the
profit or loss on disposal.

20202019
Note$’000s$’000s
Gross Carrying Amount
Balance at beginning of financial year 57,951 56,561
Additional amounts recognised from business combinations occurring during the period
E1
- 758
Translation of goodwill amounts held in foreign currency (635) 632
Balance at end of financial year 57,316 57,951
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 45

Judgement
Determining whether goodwill is impaired requires
an estimation of the value in use of the cash-
generating units to which goodwill has been
allocated. The value in use calculation requires
the Directors to estimate the future cash flows,
particularly in relation to future project wins and
market conditions, expected to arise from the
cash-generating unit and a suitable discount rate
in order to calculate present value.

Impairment Testing Summary
For the purposes of preparing these financial statements, the Board has reviewed the intangible assets and impairment model
and determined that there is no impairment of any intangible assets in the current year, or in prior periods based upon the inputs
and assumptions made for each Cash Generating Unit (CGU).
Sensitivity analysis has been performed on the impairment model to determine how sensitive the model is to any changes to inputs,
specifically around the cash flow forecasts. The sensitivity analysis showed no reasonably possible scenarios resulting in impairment
for Australasia, Americas or China manufacturing and all three models are supported by historical data where available and the cash
flows in the models are conservative in relation to what has been achieved historically.
A heightened degree of focus has been given to the European CGU, due to the lack of historical data from recent acquisitions whilst
within the Scott Group, the impacts of Brexit and COVID-19 on Europe, and the German operations which have been restructured in
the current year. After taking account of the restructuring of the German operations, the impairment model includes assumptions
around the post-Brexit and post-COVID-19 recovery, resulting in an expectation that the European CGU will improve its Earnings
Before Interest and Tax (EBIT) by NZ$4.4m in 2022 and then adjusting for annualised growth after that date. The Board consider this
a conservative estimate of forecast growth given the changes made to the Europe business in the current year. Sensitivity analysis
has showed that if the improvement in the net result from 2022 onwards is NZ$3.5m rather than the NZ$4.4m assumed and no
subsequent recovery in earnings is made, the model would result in nil headroom. The Board do not consider this a reasonably
possible outcome given the forecast opportunities of the Europe business. The Board is satisfied that the assumptions included in
the model are reasonable and the lower level of the sensitivity analysis is unlikely to be realised.
Allocation of Goodwill to Cash-Generating Units
The Group’s cash-generating units are:
Australasia is reported as a single cash-generating unit due to the integrated nature of customers, management,
manufacturing, sales and financing activities across New Zealand and Australia.
Americas is reported as a single cash-generating unit due to the integrated nature of customers, management, manufacturing,
sales and financing activities across North and South America.
During the period, the former Asia and Europe manufacturing cash generating unit (CGU) has been split into Europe
manufacturing and China manufacturing CGUs. This is due to these CGU's now having separate management, manufacturing,
sales and financing activities.
Goodwill has been allocated for impairment testing purposes to the cash-generating units:
• Australasia manufacturing
• Americas manufacturing
• Europe manufacturing
• China manufacturing
20202019
$’000s$’000s
Gross Carrying Amount(restated)
Australasia manufacturing24,37024,028
Americas manufacturing 14,318 15,324
Europe manufacturing 18,278 18,240
China manufacturing 350 359
57,31657,951
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 46

Goodwill had previously been allocated to the cash-generating unit Europe and Asia. Upon the reorganisation
of the CGU's the Goodwill associated with the acquisitions of companies located in each new CGU has been
reallocated to align with the CGU that each entity whose acquisition gave rise to the goodwill is now a part of.
Impairment Model Inputs by Region
The recoverable amount of each cash-generating unit is determined based on a value in use calculation which
uses cash flow projections based on financial budgets and forecasts covering a five-year period. The inputs for
each of the CGU's have been listed below.
Australasia20202019
Annual growth rate2.5%3.0%
Terminal growth rate2.0%2.0%
Pre-tax discount rate11.0%10.6%
Australasia cashflow projections during the budget and forecast period are based on historical gross margins during
the budget and forecast period. The rate of revenue and materials price inflation during 2020 of 2.5% (2019: 3.0%)
reflects the effect of COVID-19 on global sales over the five year period. Cash flows beyond that five year period have
been extrapolated using a steady 2.0% p.a. growth rate (2019: 2.0%). The pre-tax discount rate calculated in 2020 is
11.0% (2019: 10.6%).
The Australasian CGU has sufficient historical data to support the cash flow assumptions included in the impairment
model and management believes that any reasonably possible change in the key assumptions on which the
recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable
amount of the Australasian cash-generating unit.
Americas20202019
Annual growth rate2.0%3.0%
Terminal growth rate1.5%2.0%
Pre-tax discount rate10.6%10.6%
Americas cash flow projections during the budget and forecast period are based on historical gross margins,
where available, during the budget and forecast period. Where historical data is not easily comparable for recent
acquisitions, recent sales, forward work and sales pipelines have been used to assist with projections. There is
sufficient headroom in the model to support the carrying amount of the goodwill.
The rate of revenue and materials price inflation during 2020 of 2.0% (2019: 3.0%) reflects the effect of COVID-19
on global sales over the five year period. Cash flows beyond that five year period have been extrapolated using
a steady 1.5% p.a. growth rate (2019: 2.0%). The pre-tax discount rate calculated in 2020 is 10.6% (2019: 10.6%).
Management believes that any reasonably possible change in the key assumptions on which the recoverable
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of
the American cash-generating unit.
Europe20202019
Annual growth rate1.8%3.0%
Terminal growth rate1.3%2.0%
Pre-tax discount rate9.7%10.6%
Europe cashflow projections during the budget and forecast period are based on historical gross margins during the
budget and forecast period. The rate of revenue and materials price inflation during 2020 of 1.8% (2019: 3.0%) reflects
the effect of COVID-19 on global sales over the five year period. Cash flows beyond that five year period have been
extrapolated using a steady 1.3% p.a. growth rate (2019: 2.0%). The pre-tax discount rate calculated in 2020 is 9.7%
(2019: 10.6%).
As noted above, the European CGU has received a heightened degree of focus for the impairment testing due to the
lack of historical data that is not easily comparable, the German restructure, Brexit and COVID-19. The key assumptions
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 47

in the impairment test relate to achieving forecast EBIT. The Board believe the forecast EBIT used in the impairment
model is conservative and that any reasonably possible change in the key assumptions on which the recoverable amount
is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the European
cash-generating unit.
China20202019
Annual growth rate2.5%3.0%
Terminal growth rate2.0%2.0%
Pre-tax discount rate13.5%10.6%
China cash flow projections during the budget and forecast period are based on historical gross margins during the
budget and forecast period. The rate of revenue and materials price inflation during 2020 of 2.5% (2019: 3.0%) reflects
the effect of COVID-19 on global sales over the five year period. Cash flows beyond that five year period have been
extrapolated using a steady 2.0% p.a. growth rate (2019: 2.0%). The pre-tax discount rate calculated in 2020 is 13.5%
(2019: 10.6%).
The Chinese CGU has sufficient historical data to support the assumptions included in the impairment model and
management believes that any reasonably possible change in the key assumptions on which the recoverable amount
is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the Chinese
cash-generating unit.
SECTION B: ASSETS
B6. INTANGIBLE ASSETS
Policy
Intangible assets with finite useful lives that are
acquired separately are carried at cost, less
accumulated amortisation and accumulated
impairment losses. Amortisation is recognised
on a straight line basis over their estimated useful
lives. Intangible assets with indefinite useful lives
that are acquired separately are carried at cost, less
accumulated impairment losses.
Intangible assets that are acquired in a business
combination and recognised separately from goodwill
are initially recognised at fair value at the acquisition
date, which is regarded as their cost. Subsequent
to initial recognition, intangible assets acquired in a
business combination are recognised on the same basis
as intangible assets that are acquired separately.
At each balance sheet date, the Group reviews the
carrying amounts of its non financial tangible and
intangible assets to determine whether there is
any indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss, if any.
Goodwill is tested for impairment annually. Where the
asset does not generate cash flows that are independent
from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset
belongs.
The recoverable amount is the higher of fair value, less
costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their
present value using a discount rate that reflects current
market assessments of the time value of money and
the risks specific to the asset for which the estimates of
future cash flows have not been adjusted.
If the recoverable amount of a cash-generating unit,
(CGU), is estimated to be less than its carrying amount,
the carrying amount of the CGU is reduced to its
recoverable amount. An impairment loss is recognised
in profit or loss immediately, unless the asset is carried at
fair value, in which case the impairment loss is treated as
a revaluation decrease.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 48

Accumulated amortisation and impairment
As at 31 August 2018 203 2,637 - 28 354 34 - 11 3,267
Amortisation expense 509 1,333 - 6 49 26 62 5 1,990
Foreign Translation
Difference
- (82) - 2 - - - - (80)
As at 31 August 2019 712 3,888 - 36 403 60 62 16 5,177
Amortisation expense 746 1,367 - 6 - 26 231 3 2,379
Foreign Translation
Difference
5 99 - (2) - - - - 102
As at 31 August 2020 1,463 5,354 - 40 403 86 293 19 7,658
Net book value
As at 31 August 2019 5,522 6,775 2,064 43 - 280 1,564 72 16,320
As at 31 August 2020 4,513 5,579 1,929 34 - 254 1,344 68 13,721
Conveyor &
Palletiser
Technology
at Cost
BladeStop
Technology
at Cost
URLs
at Cost
Non-
compete
at Cost
HTS
Technology
at Cost
Centrifuge
Technology
at Cost
Automated
Grading
Technology
at cost
Patents
& OtherTotal
$000’s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s
(restated)(restated)(restated)(restated)(restated)(restated)(restated)(restated)(restated)
Gross carrying amount
As at 31 August 2018 5,531 11,006 1,955 75 403 300 - 88 19,358
Acquisitions through
business combinations
- - - - - - 1,585 - 1,585
Additions 704 - - - - 40 - - 744
Foreign Translation
Difference
(1) (343) 109 4 - - 41 - (190)
As at 31 August 2019 6,234 10,663 2,064 79 403 340 1,626 88 21,497
Additions 65 - - - - - - - 65
Disposals (344) - - - - - - - (344)
Foreign Translation
Difference
21 270 (135) (5) - - 11 (1) 161
As at 31 August 2020 5,976 10,933 1,929 74 403 340 1,637 87 21,379
Assets
Intangible assets comprise:
• Conveyor and palletiser technology used in the materials handling industry, purchased through the acquisition of the Alvey
business in April 2018, is being amortised on a straight line basis over an estimated remaining useful life at the time of purchase of
ten years.
• BladeStop bandsaw safety technology purchased in October 2017, is being amortised on a straight line basis over an estimated
remaining useful life at the time of purchase of eight years.
• Domain names (URLs) and a non-compete arrangement resulting from the purchase of the RobotWorx business in May 2014.
• Intangible assets associated with the RobotWorx non-compete arrangement are being amortised on a straight line basis over
a fifteen year period, while intangible assets related to the URLs are indefinite life intangibles as the rights to the URLs are held
indefinitely and are assessed for impairment annually.
• Intellectual Property associated with current leads and flux pumps which were largely acquired on the purchase of
HTS-110 Limited are being amortised over an estimated remaining useful life at the time of purchase of eight years.
• Centrifuge technology used in the honey and fish oil industry purchased through the acquisition of the other joint venture
partners’ interests in Scott Separation Technology Limited in May 2017, is being amortised on a straight line basis over an
estimated remaining useful life at the time of purchase of thirteen years.
• Automated grading technology used in the meat industry purchased through the acquisition of Normaclass in May 2019, is being
amortised on a straight line basis over an estimated useful life at the time of purchase of ten years.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 49

20202019
Note$’000s$’000s
Impairment of Scott LED assets 168 -
Impairment of Investment in Veritide Limited 420 -
Impairment of Scott Dairy development assetB9 3,370 -
Impairment of other development assetsB9 3,642 -
7,600 -
During the current year the Group has undertaken a restructure and revised its corporate strategy. As a result,
certain development and other assets have been deemed not in line with the updated strategy. A decision has
been taken to cease work on these developments and other assets and therefore they have been fully impaired.
All of the impaired assets relate to the Australasia segment.
The recoverable amount of each asset after impairment is nil on the basis there is no alternative for sale or
residual value in the assets.
Scott LED is a company that sells LED lightbulbs. As a part of a review of the operations of the Group, this business
activity has been identified as being non-core to the Scott strategy. As a result, the assets related to Scott LED
Limited have been impaired and the business has ceased trading. The total amount of this provision at 31 August
2020 is $0.2m.
Scott holds an investment in Veritide Limited, (Veritide), a research collaboration that provides mobile, handheld
scanners to identify visible and non-visible faecal contamination on meat carcasses. As at 31 August 2020,
Veritide had not secured any further funding to keep operating and Scott’s investment of $0.4m has been
impaired as a result.
SECTION B: ASSETS
B7. RESEARCH & DEVELOPMENT COSTS
Policy
Expenditure on research activities is recognised as
an expense in the period in which it is incurred.
An asset arising from development (or from the
development phase of an internal project) is
recognised if, and only if, all of the following are
demonstrated:
• The technical feasibility of completing the
asset so that it will be available for use or sale
• The intention to complete the asset and use
or sell it
• The ability to use or sell the asset
• How the asset will generate probable future
economic benefits
• The availability of adequate technical,
financial and other resources to complete the
development to use or sell the asset.
• The ability to measure reliably the expenditure
attributable to the asset during the development
SECTION B: ASSETS
B8. IMPAIRMENT OF ASSETS
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 50

Policy
Development assets exist where the Group is
working on developments with the intention to
meet an end customer's needs, but no contract
exists with that end customer. Revenue is not
recognised on these projects until a contract with a
customer is agreed. The costs incurred are evaluated
against the criteria for capitalisation and where
appropriate are recognised as development assets on
the balance sheet. Any costs not meeting the criteria
for capitalisation are expensed as incurred.
SECTION B: ASSETS
B9. DEVELOPMENT ASSETS
SECTION C
CAPITAL & FUNDING
C1. SHARE CAPITAL
Policy
Equity instruments issued by the Group are recorded at the proceeds received, net of issue costs.

2020201920202019
NumberNumber$’000s$’000s
Fully paid ordinary shares at beginning of financial year 77,544,752 75,902,939 80,073 75,647
Issue of shares under dividend reinvestment plan 766,280 1,641,813 1,749 4,426
Balance at end of financial year 78,311,032 77,544,752 81,822 80,073
All shares have equal voting rights and participate equally in any dividend distribution or any surplus on the
winding up of the Group.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
In the current year, impairment adjustments have been made to the following development assets:
Scott Dairy is automated milking technology for the dairy industry that has been developed over several years. During the
first half of the 2020 financial year, discussions with potential commercialisation partners ceased with no further plans to
commercialise this product at this stage. As a result, the total amount of the asset has been written down at 31 August
2020, totalling $3.4m.
Impairment of other development assets is related to one non-performing project based in Australasia. The project
related to the development of a pork automation solution. During the current year execution issues led to unexpected
additional costs to complete the project and achieve performance objectives. As a consequence, discussions with the
commercial partners interested in the development ceased with no further plans to commercialise this product at this
stage. All additional costs relating to these projects have been expensed in the 2020 financial statements. This project is
also disclosed in note E5.
ANNUAL REPORT 2020
PAG E 51

SECTION C: CAPITAL & FUNDING
C2. EARNINGS & NET TANGIBLE ASSETS PER SHARE
SECTION C: CAPITAL & FUNDING
C3. BORROWINGS
Earnings per share from continuing operations
20202019
Cents Per ShareCents Per Share
Basic (22.2)11.3
Diluted (22.2)11.3
20202019
$’000s$’000s
Net (loss) / surplus for the year used in the calculation of basic and diluted
earnings per share from continuing operations
(17,331)8,690
Weighted average number of ordinary shares used in the calculation of basic and
diluted earnings per share from continuing operations
78,12976,801
Non-GAAP information
20202019
Cents Per ShareCents Per Share
Net tangible assets per ordinary share20.250.4
20202019
Note$’000s$’000s
Ordinary shares at year end used in the calculation of net tangible assets per
ordinary share
C178,31177,545
Net tangible assets (net assets excluding goodwill, intangible assets and deferred tax)15,83839,087
Policy
Borrowings are recorded initially at fair value, net of
transaction costs.
Subsequent to initial recognition, borrowings are
measured at amortised cost with any difference
between the initial recognised amount and the
redemption value being recognised in the profit or
loss over the period of the borrowings using the
effective interest rate method.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 52

The carrying amounts of the Group’s borrowings
are denominated in the following currencies:
20202019
FacilityUtilisedFacilityUtilised
NZD$’000sNZD$’000sNZD$’000sNZD$’000s
New Zealand Dollar 14,634 6,635 4,900 4,900
United States Dollar 2,600 2,459 3,176 3,176
European Euros 3,426 1,933 3,843 3,340
Czech Koruna 378 158 751 251
21,038 11,185 12,670 11,667
Borrowing Facilities
Borrowings shown above include bank debt, a loan from JBS Australia Pty Ltd, and vehicle financing.
Borrowing facilities include credit card facilities which are included in trade creditors and accruals and bank guarantees and
bonds, which are included in contingent liabilities.
The main source of financing for the Group is through ANZ Bank in New Zealand. The Group's facility agreement with ANZ
Bank New Zealand Limited is currently being renegotiated. The total of the ANZ Bank New Zealand Limited current facility
agreement for borrowings and working capital is NZ$19.7m, of which NZ$5.2m was unutilised at 31 August 2020 (2019:
NZ$2.1m unutilised at 31 August 2019).
The bank facilities of ANZ Bank New Zealand Limited are secured by general security agreements over all the present and
after acquired property of Scott Technology Limited and certain subsidiaries, and therefore associated property, plant and
equipment assets are pledged as security for these facilities. The bank facilities from ANZ Bank New Zealand Limited are
also secured by mortgages over the properties at 630 Kaikorai Valley Road Dunedin, 10 Maces Road Christchurch and 1B
Quadrant Drive Lower Hutt.
The Group also has borrowing facilities through KBC Bank in Belgium with a total facility for borrowings and working capital
of EUR 3.0m, of which EUR 1.9m was unutilised at 31 August 2020.
20202019
NZD$’000sNZD$’000s
Current 3,719 4,217
Non-current 7,466 7,450
Total Term Loans 11,185 11,667
Maturity Profile of non-current portion
One to two years 5,266 844
Two to three years 1,824 5,014
Three to five years 376 1,592
7,466 7,450
Interest rates applicable to 31 August 2020 on the bank term loans ranged from 1.8% to 8.5% p.a.
(2019: 1.2% to 8.5% p.a.)
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
The Group also has access to the following
working capital facilities:
20202019
FacilityUtilisedFacilityUtilised
NZD$’000sNZD$’000sNZD$’000sNZD$’000s
New Zealand Dollar 12,500 7,391 13,000 10,878
United States Dollar 1,484 - 794 -
European Euros 1,943 - - -
Czech Koruna 1,078 - - -
17,005 7,391 13,794 10,878
ANNUAL REPORT 2020
PAG E 53

The bank facilities from KBC Bank are secured by a registered pledge on the business assets of Scott Automation NV for a total
of EUR 3.8m and a registered pledge on the bank guarantees line of 50% of any amount exceeding EUR 3.5m.
Other borrowing facilities include a US$1m line of credit from BB&T Bank (not utilised at 31 August 2020), a CZK 10m overdraft
facility (not utilised at 31 August 2020) and a CZK 6m bank guarantee line (not utilised at 31 August 2020).
Due to the uncertainty of the impact of COVID-19, the Group entered into an agreement with JBS Australia Pty Ltd in March
2020 to obtain access to a revolving credit facility up to a maximum amount of NZ$10m. The expiry date of this facility is

31 August 2022. At 31 August 2020, NZ$2m has been drawn down from this facility.
SECTION C: CAPITAL & FUNDING
C4. TRADE CREDITORS & ACCRUALS
SECTION C: CAPITAL & FUNDING
C5. LEASES
Policy
Trade creditors are initially measured at fair value and subsequently measured at amortised cost using the
effective interest rate method.
Policy
The Group assess whether a contract is, or contains,
a lease, at the inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease
liability with respect to all lease arrangements in which
it is the lessee, except for short-term leases, defined
as leases with a lease term of 12 months or less, and
leases of low value assets. For these leases, the Group
recognises the lease payments as an operating expense
on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the
time pattern in which economic benefits from the leased
assets are consumed.
The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted by using the rate
implicit in the lease. If the rate cannot be readily
determined, the Group uses its incremental borrowing
rate (IBR). The lease liability is subsequently measured
by increasing the carrying amount to reflect interest
on the liability, using the effective interest method, and
by reducing the carrying amount to reflect the lease
payments made.
The right-of-use assets comprise the initial
measurement of the corresponding lease liability, lease
payments made at, or before, the commencement
day and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and
impairment losses. Right-of-use assets are depreciated
over the shorter period of lease term or useful life of
the underlying asset. The Group applies NZ IAS 36 to
determine whether a right-of-use asset is impaired
and accounts for any identified impairment loss as
described in Intangible assets policy in note B6.

20202019
$’000s$’000s
Trade creditors15,143 22,420
Accruals 8,890 8,637
24,033 31,057
Terms
All trade creditors are current and paid within the terms agreed with individual suppliers.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 54

Judgement
The estimation of the IBR relies on the Directors
considering the credit risk of the Group. If the
credit risk faced by the Group differs from what is
estimated, the IBR may differ, and consequently the
future net present value of the lease cash flows may
be over or understated.
The Group leases several assets, including buildings, cars and machinery. The average lease term is 3.7 years
(2019: 3.7 years).
The Group has options to purchase certain equipment at the conclusion of their current lease term. As management
is undecided on the outcome of these transactions, the purchase price has not been included in the lease liability
calculations.
The determination of lease term relies on the Directors
view of the likelihood of any lease renewal options being
renewed. If the lease renewal options are included and
then not taken up, or are not included and are taken
up, the net present value of the lease cash flows may be
over, or understated.

Right-of-use assets
BuildingsPlantVehiclesGroup
Cost$’000s$’000s$’000s$’000s
Balance 31 August 2018 - - - -
Recognised on change of accounting policy 11,465 509 2,747 14,721
Additions 5,156 24 929 6,109
Balance 31 August 2019 16,621 533 3,676 20,830
Additions 343 1 545 889
Disposals(730) (150) (503)(1,383)
Translation of leases held in foreign currency(134) (5) 17 (122)
As at 31 August 2020 16,100 379 3,735 20,214
Depreciation
Balance 31 August 2018 - - - -
Depreciation expense 2,469 240 1,125 3,834
Balance 31 August 2019 2,469 240 1,125 3,834
Depreciation expense 3,241 160 1,144 4,545
Disposals(683) (150) (445) (1,278)
Translation of leases held in foreign currency 30 (3) 14 41
As at 31 August 2020 5,057 247 1,838 7,142
As at 31 August 2019 14,152 293 2,551 16,996
As at 31 August 2020 11,043 132 1,897 13,072
Amounts recognised in profit and loss and cash flow statement
20202019
$’000s$’000s
Total cash outflow for leases 4,176 3,993
Interest expense on lease liabilities 662 518
Expense relating to short-term liabilities 448 959
As at 31 August 2020, the Group is committed to $0.2 million (2019: $1 million) for short-term leases.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 55

The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored
within the Group’s treasury function.
Lease liabilities
20202019
$’000s$’000s
Current liability 3,818 4,081
Non-current liability 10,008 13,311
Total 13,826 17,392
Maturity analysis
20202019
$’000s$’000s
Not later than 1 year 3,818 4,081
Later than 1 year and not later than 5 years 7,189 9,636
Later than 5 years 2,819 3,675
13,826 17,392
SECTION C: CAPITAL & FUNDING
C6. CASH FLOW HEDGE RESERVE
Policy
See cash flow hedge policy in note D1.
20202019
$’000s$’000s
Balance at 1 September - 370
Gain reclassified to profit or loss – hedged item has affected profit or loss - (370)
Balance at 31 August - -
The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments
deemed effective in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is
recognised in profit or loss only when the hedged transaction impacts the profit or loss, or is included directly in
the initial cost or other carrying amount of the hedged non-financial items (basis adjustment).
SECTION C: CAPITAL & FUNDING
C7. EMPLOYEE BENEFITS
Policy
Provision is made for benefits accruing to employees in
respect of wages and salaries, annual leave, long service
leave and sick leave when it is probable that settlement will
be required and they are capable of being measured reliably.
Provision made in respect of employee benefits expected
to be settled within twelve months are measured at their
nominal values using the remuneration rate expected to
apply at the time of settlement.
Provisions made in respect of employee benefits which
are not expected to be settled within twelve months, are
measured at the present value of the estimated future
cash outflows to be made by the Group in respect of
services provided by employees up to reporting date.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 56

SECTION C: CAPITAL & FUNDING
C8. PROVISION FOR WARRANTY
Policy
The provision for warranty claims represents the present
value of the Directors' best estimate of the future
outflow of economic benefits that will be required under
the Group's twelve month warranty programme for
certain equipment. The estimate has been made on
the basis of historical warranty trends and may vary
as a result of new materials, altered manufacturing
processes or other events affecting product quality.
20202019
$’000s$’000s
Balance at 1 September 1,546 1,857
Provisions recognised / (derecognised) during the year 328 (311)
Balance at 31 August 1,874 1,546
Obligation
The provision for warranty reflects an obligation for after sales service work in relation to completed contracts
and products sold to customers. The provision is expected to be utilised within two years of balance date,
however, this timing is uncertain and dependent upon the actual level of after sales service work required.
SECTION C: CAPITAL & FUNDING
C9. SHARE BASED PAYMENT ARRANGEMENTS
Policy
For cash-settled share-based payments, a liability
is recognised for the goods or services acquired,
measured initially at the fair value of the liability. At
the end of each reporting period, until the liability is
settled, and at the date of settlement, the fair value
of the liability is remeasured, with any changes in
fair value recognised in profit or loss for the year.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
Details of Arrangement
The Group has a long term bonus scheme for certain executives and senior employees of the Group. In
accordance with the terms of the plan, executives and senior employees who remain in employment with
the Group at the vesting dates will be granted a cash incentive based on the movement in Scott Technology
Limited’s share price from the beginning of the scheme to the vesting date. The fair value of the scheme is
measured at year end with reference to the share price. At balance date there is a liability of $0.1 million
(2019: $0.2 million) included in employee entitlements in the balance sheet. The impact of the movement in
the liability on profit for the year was a $0.1 million decrease (2019: $0.2 million increase) and is included in the
employee benefits expenses. No shares, or share options, in Scott Technology Limited are issued under the plan.
ANNUAL REPORT 2020
PAG E 57

Policy
Derivatives are initially recognised at fair value on the
date the derivative contract is entered into and are
subsequently re-measured to their fair value at each
reporting date. The resulting gain or loss is recognised
in profit or loss unless the derivative is designated and
effective as a hedging instrument, in which event, the
timing of the recognition depends on the nature of the
hedge relationship.
The Group designates certain derivatives as hedges of
the fair value of firm commitments (fair value hedge)
or as hedges of forecast future sales (cash flow hedge).
Open firm commitments reflect contractual agreements
to provide goods to customers at an agreed price
denominated in a foreign currency on specified future
dates.
The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash flow
hedges are recognised in other comprehensive income
and accumulated as a separate component of equity in the
hedging reserve. The gain or loss relating to the ineffective
portion is recognised immediately in profit or loss, and is
included in the other expenses line.
SECTION D
RISK MANAGEMENT
D1. FINANCIAL INSTRUMENTS
Amounts recognised in the hedging reserve are reclassified
from equity to profit or loss (as a reclassification
adjustment) in the periods when the hedged item is
recognised in profit or loss, in the same line as the
recognised hedged item.
However, when the forecast transaction that is hedged
results in the recognition of a non-financial asset or a non-
financial liability, the gains and losses previously recognised
in the hedging reserve are transferred from equity and
included in the initial measurement of the cost of the asset
or liability.
Hedge accounting is discontinued when the Group
revokes the hedging relationship, the hedging instrument
expires, or is sold, terminated, or exercised, or no longer
qualifies for hedge accounting. Any cumulative gain or loss
recognised in the hedging reserve at that time remains in
equity and is recognised when the forecast transaction
is ultimately recognised in profit or loss. When a forecast
transaction is no longer expected to occur, the cumulative
gain or loss that was recognised in the hedging reserve is
recognised immediately in profit or loss.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SECTION C: CAPITAL & FUNDING
C10. ONEROUS CONTRACT PROVISION
Policy
Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist where the Group has
a contract under which the unavoidable costs of
meeting the obligations under the contract exceed the
economic benefits expected to be received under it.
The onerous contract provision relates to the expected losses on certain long term projects in progress as at 31 August.
The Onerous contract provisions are based on management's best estimate to complete the projects in progress. The
completion of work required is typically expected in the next 12 months.
20202019
$’000s$’000s
Balance at 1 September4,236-
Movement recognised in profit or loss3,463 4,236
Balance at 31 August7,6994,236
SCOTT TECHNOLOGY LIMITED
PAG E 58

Financial Risk Management Objectives
The Group’s finance function provides services to the business, co-ordinates access to domestic and international financial
markets and monitors and manages the financial risks relating to the operations of the Group through internal risk reports,
which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk and fair value
interest rate risk), credit risk, liquidity risk and cash flow interest rate risk.
The Group seeks to minimise the effects of these risks by using derivative financial instruments to hedge these risk exposures. The
use of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provide written principles
on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments and
the investment of excess liquidity. Compliance with policies and exposure limits are reviewed on a continuous basis. The Group
does not enter into, or trade, financial instruments, including derivative financial instruments, for speculative purpose.
Capital Risk Management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising
the return to stakeholders through the optimisation of the debt and equity balance. The Group's overall strategy remains
unchanged from 2019.
The capital structure of the Group consists of equity attributable to equity holders of the parent, comprising issued capital and
retained earnings.
The Group has sufficient liquid assets to fund the operational assets. To the extent that additional working capital funding is
required the Group has bank facilities available as disclosed in note C3. Where the Group requires funding for a significant capital
acquisition, separate funding facilities are established, provided the Directors consider that the Group has adequate equity to
support these facilities.
Market Risk
The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The Group enters
into a variety of derivative financial instruments to manage its exposure to foreign currency risk, including forward foreign
exchange contracts to hedge the exchange rate risk arising on the export of manufactured products.
There has been no change to the Group's exposure to market risks or the manner in which it manages and measures the risk.
Foreign Currency Risk Management
The Group undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations
arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.
There are no open cash flow hedges at balance date. The carrying amounts in New Zealand Dollars of the Group’s foreign
currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
AssetsLiabilities
2020201920202019
$’000s$’000s$’000s$’000s
United States Dollar 17,275 20,957 8,218 12,073
Euro 13,624 23,722 10,559 25,197
Australian Dollar 8,739 7,523 6,714 8,178
Japanese Yen - - 105 -
Great Britain Pound 309 271 64 103
Chinese Yuan 4,512 2,609 674 1,472
Canadian Dollar - 489 - -
Czech Koruna 365 137 5,239 6,622
Singaporean Dollar - - 165 -
44,824 55,708 31,738 53,645
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 59

Assets
20202019
$’000s$’000s
At fair value:
Fair value hedge of open firm commitments
728 1,216
Foreign currency forward contracts held as effective fair value hedges
162 -
Foreign exchange derivatives
146 -
1,036 1,216
Represented by:
Current financial assets 1,032 1,207
Non current financial assets 4 9
1,036 1,216
20202019
Liabilities
$’000s$’000s
At fair value:
Fair value hedge of open firm commitments 162 -
Foreign currency forward contracts held as effective fair value hedges 728 1,216
Foreign exchange derivatives 82 1,334
Interest rate swap contracts 814 960
1,786 3,510
Represented by:
Current financial liabilities
972
2,541
Non current financial liabilities
814
969
1,786 3,510
Forward Foreign Exchange Contracts
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific foreign currency
payments and receipts. The Group also enters into forward foreign exchange contracts to manage the risk associated
with anticipated sales and purchase transactions. These are presented in other financial assets or other financial
liabilities in the balance sheet.
For hedges of firm commitments, as the critical terms (i.e. the notional amount, life and underlying) of the
foreign exchange forward contracts and their corresponding hedged items are the same, the Group performs a
qualitative assessment of effectiveness and it is expected that the value of the forward contracts and the value of
the corresponding hedged items will systematically change in opposite direction in response to movements in the
underlying exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the
Group’s own credit risk on the fair value of the forward contracts, which is not reflected in the fair value of the
hedged item attributable to changes in foreign exchange rates. No other sources of ineffectiveness emerged from
these hedging relationships.
From time to time the Group will enter into collar options to cover forecast sales and purchases. These are not
hedge accounted.
The fair value of foreign exchange contracts outstanding is recognised as other financial assets/liabilities.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 60

Outstanding forward foreign currency contracts
Nominal ValueFair Value
Average Fx Rate2020201920202019
20202019$’000s$’000s$’000s$’000s
Sell US Dollars0.64910.6774 7,981 33,713 20 (1,879)
Sell Australian Dollars0.96260.9424 13,380 9,095 (579) (63)
Sell British Pounds0.4914- 417 - 11 -
Sell Canadian Dollars0.88120.8812 108 1,458 - (74)
Sell Euro0.57190.5959 1,070 11,629 (17) (521)
Buy Australian Dollars0.9747- 958 - 63 -
Buy Euro-0.5692 - 12,175 - (24)
Buy Japanese Yen-75.1300 - 91 - 11
23,914 68,161 (502) (2,550)

Outstanding forward foreign currency contracts maturity profile
Nominal ValueFair Value
2020201920202019
$’000s$’000s$’000s$’000s
0 to 3 months 9,984 55,459 (206) (1,917)
3 to 6 months 9,062 7,004 (173) (210)
6 to 9 months 2,801 4,627 (47) (338)
9 to 12 months 1,854 994 (72) (80)
Greater than 12 months 213 77 (4) (5)
23,914 68,161 (502) (2,550)
Foreign Currency Sensitivity Analysis
The Group is mainly exposed to the United States Dollar, the Euro, the Australian Dollar and the Chinese Yuan.
The following table details the Group’s sensitivity to a 10% increase and decrease in the New Zealand Dollar
against the relevant foreign currencies. 10% represents management’s assessment of the reasonably
possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the period end for a 10% change in foreign
currency rates. A positive number below indicates an increase in profit and equity where the New Zealand
Dollar weakens 10% against the relevant currency.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 61

10% Increase in
New Zealand Dollar
10% Decrease in
New Zealand Dollar
2020201920202019
$’000s$’000s$’000s$’000s
United States Dollar (625) (76) 625 76
Euro (253) 147 253 (147)
Australian Dollar (198) 177 198 (177)
Japanese Yen 10 - (10) -
Great Britain Pound (25) (17) 25 17
Chinese Yuan (384) (114) 384 114
Canadian Dollar 11 3 (11) (3)
Czech Koruna 487 648 (487) (648)
Singaporean Dollar 17 - (17) -
These movements are mainly attributable to the exposure to outstanding foreign currency bank accounts,
receivables, payables and derivatives at year end in the Group.
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year
end exposure does not reflect the exposure during the year.

Credit Risk Management
In the normal course of business, the Group incurs credit risk from trade receivables and transactions with
financial institutions. The Group has a credit policy which is used to manage this exposure to credit risk, including
requiring payment prior to shipping to high credit risk countries and customers, the use of Export Credit Office
financing facilities and customer credit checks. The Group, as a result of the industries in which they operate,
can be exposed to significant concentrations of credit risk from trade receivables and counterparty risk with the
bank in relation to the outstanding forward exchange contracts. They do not require any collateral or security to
support financial instruments as these represent deposits with, or loans to, banks and other financial institutions
with high credit ratings.
At year end the amount receivable from the five largest trade debtors is $5.7 million (2019: $10.1 million).
The maximum credit risk of on balance sheet financial instruments is their carrying amount.
The carrying amount of financial assets recorded in the financial statements, which is net of impairment losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
Liquidity & Interest Rate Risk Management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and long-
term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows and matching the maturity profiles of financial assets and liabilities. Included in Note C3 are details of
additional undrawn facilities that the Group has at its disposal to further reduce liquidity risk.
There is no reasonable movement in interest rates that could have a material impact on the financial statements.
Interest Rate Swap Contracts
Under interest rate swap contracts, the Group agrees to exchange the difference between fixed and floating rate
interest amounts calculated on agreed notional principal amounts. Such contracts enable the Group to mitigate
the risk of changing interest rates on the fair value of issued fixed rate debt and the cash flow exposures on the
issued floating rate debt. The fair value of interest rate swaps at the reporting date is determined by discounting
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 62

10% Increase in
New Zealand Dollar
10% Decrease in
New Zealand Dollar
2020201920202019
$’000s$’000s$’000s$’000s
United States Dollar (625) (76) 625 76
Euro (253) 147 253 (147)
Australian Dollar (198) 177 198 (177)
Japanese Yen 10 - (10) -
Great Britain Pound (25) (17) 25 17
Chinese Yuan (384) (114) 384 114
Canadian Dollar 11 3 (11) (3)
Czech Koruna 487 648 (487) (648)
Singaporean Dollar 17 - (17) -
the future cash flows using the curves at reporting date and the credit risk inherent in the contract, and is
disclosed below. The average interest rate is based on the outstanding balances at 31 August.
The interest rate swap contract obligation was taken over through the acquisition of the Alvey business. The loan
facility is not currently being used.
Outstanding receive floating pay fixed contracts
Average Contracted
Fixed Interest Rate
Notional
Principal AmountFair Value
202020192020201920202019
%% $’000s$’000s$’000s$’000s
5 years +2.70%2.70% 3,164 3,263 (814) (960)
The following table details the Group’s remaining undiscounted contractual maturity for its non derivative
financial liabilities. The tables below have been drawn up based on the undiscounted cash flows of financial
liabilities based on the earliest date on which the Group can be required to pay.
The tables include both interest and principal cash flows.
Weighted
Average
Effective
Interest
Rate
On
Demand
Less
than
1 Year1-2 Years2-3 Years3-5 Years5+ YearsTotal
% $’000s$’000s$’000s$’000s$’000s$’000s$’000s
2020 Financial Liabilities
Lease liabilities4.32% - 3,983 2,816 2,324 2,355 2,946 14,424
Term loans3.44% - 3,846 5,447 1,887 389 - 11,569
Deferred settlement on
purchase of business
- - 1,376 505 - - - 1,881
Payable to joint ventures- - 431 - - - - 431
Trade creditors & accruals-24,033 - - - - - 24,033
24,033 9,636 8,768 4,211 2,744 2,946 52,338
2019 Financial Liabilities
Finance lease liabilities4.22% - 4,253 3,840 2,612 3,590 3,830 18,125
Term loans3.55% - 4,367 874 5,192 1,218 471 12,122
Deferred settlement on
purchase of business
- - 2,385 - - - - 2,385
Payable to joint ventures- - 393 - - - - 393
Trade creditors & accruals- 31,057 - - - - - 31,057
31,057 11,398 4,714 7,804 4,808 4,301 64,082
The Group has access to financing facilities, of which the total unused amount is $19.5 million at the balance sheet date,
(2019: $3.9 million). The Group expects to meet its other obligations from operating cash flows and proceeds of maturing
financial assets.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 63

Fair Value
The fair value of financial instruments not already measured at fair value approximates their carrying value.
Level 1Level 2Level 3Total
$’000s$’000s$’000s$’000s
2020
Financial assets at fair value through profit and loss
Fair value hedge of open firm commitments - 728 - 728
Foreign currency forward contracts held as effective fair value hedges - 162 - 162
Foreign exchange derivatives - 146 - 146
Financial liabilities at fair value through profit and loss
Fair value hedge of open firm commitments - (162) - (162)
Foreign currency forward contracts held as effective fair value hedges - (728) - (728)
Foreign exchange derivatives - (82) - (82)
Interest rate swap contracts - (814) - (814)
- (750) - (750)
2019
Financial assets at fair value through profit and loss
Fair value hedge of open firm commitments - 1,216 - 1,216
Financial liabilities at fair value through profit and loss
Foreign currency forward contracts held as effective fair value hedges - (1,216) - (1,216)
Foreign exchange derivatives - (1,334) - (1,334)
Foreign currency forward contracts held as cash flow hedges - - - -
Interest rate swap contracts - (960) - (960)
- (2,294) - (2,294)
Fair Value Measurements Recognised in the Balance Sheet
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at
fair value, grouped into Levels 1 to 3 on the degree to which fair value is observable:
The fair values of financial assets and financial liabilities are determined as follows:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets and liabilities;
• Level 2 fair value measurements are those derived from inputs, other than quoted prices, included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and;
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
The fair value of forward exchange contracts and options is based on their quoted market price, if available. If a quoted
market price is not available, then fair value is estimated by discounting the difference between the contractual forward
price and the current forward price for the residual maturity and options of the contract using a market rate of interest.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 64

Deferred Settlement
Closure of DC Ross
On 29 November 2019, the proposal to close the operations of DC Ross in Dunedin was announced. A provision of $1.4m to
close the facility has been included in the 2020 half year financial statements, primarily related to the write off of fixed assets
where the book value of these assets is unlikely to be recovered.
The operations officially closed in April 2020 and all assets were either sold or disposed resulting in $0.1m being recovered
from the sale of the assets and as a result, the total expenditure recognised to complete the closure was $1.3m.
Closure of Scott Technology GmbH
On 8 May 2020, the Group announced plans to close the manufacturing operations at Scott Automation GmbH,
based in Germany. The manufacturing operations have since been consolidated into other existing facilities within
the Scott Group, resulting in $3.0m of expenditure recognised in the second half of FY20. This includes payments for
redundancies, legal costs and costs related to exiting the building.
A sales and service team remain in Germany and as a result, the German entity Scott Technology Gmbh remains
operational.
SECTION E
GROUP STRUCTURE & SUBSIDIARIES
E1. ACQUISITION OF BUSINESS
20202019
$’000s$’000s
Balance at 1 September 2,385 6,275
Deferred consideration on purchase of business - 858
Payment of deferred consideration(514) (4,748)
Movement in balances held in foreign currency 10 -
Balance at 31 August 1,881 2,385
Current 1,376 2,385
Non-current 505 -
Total Deferred Settlement 1,881 2,385
Made up of:
Transbotics 994 1,527
Normaclass 887 858
1,881 2,385
SECTION E: GROUP STRUCTURE & SUBSIDIARIES
E2. RESTRUCTURING EXPENSES
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 65

SECTION E: GROUP STRUCTURE & SUBSIDIARIES
E3. SUBSIDIARIES
20202019
%%
Parent Entity
Scott Technology Limited31-AugNew Zealandn/an/a
New Zealand Trading Subsidiaries
Scott Technology NZ Limited 31-AugNew Zealand100100
Scott Automation Limited 31-AugNew Zealand100100
Scott Technology USA Limited 31-AugNew Zealand100100
QMT General Partner Limited 31-AugNew Zealand9393
QMT New Zealand Limited Partnership31-AugNew Zealand9292
Scott Technology Americas Limited 31-AugNew Zealand100100
Scott Technology Europe Limited 31-AugNew Zealand100100
New Zealand Non Trading Subsidiaries
Scott LED Limited31-AugNew Zealand100100
Rocklabs Limited 31-AugNew Zealand100100
Overseas Subsidiaries
Scott Technology Australia Pty Ltd 31-AugAustralia100100
Applied Sorting Technologies Pty Ltd 31-AugAustralia100100
Scott Automation & Robotics Pty Ltd 31-AugAustralia100100
Scott Systems International Incorporated 31-AugUSA100100
Scott Systems (Qingdao) Co Limited 31 December (*)China9595
Scott Technology GmbH 31-AugGermany100100
Scott Technology Belgium bvba 31-AugBelgium100100
Scott Automation NV 31-AugBelgium100100
FLS Group bvba 31-MarBelgium100100
FLS Systems NV 31-MarBelgium100100
Alvey do Brazil Comercio de Maquinas de Automacao 31 December (*)Brazil100100
Scott Automation a.s. 31-AugCzech Republic100100
Scott Automation SAS 31-AugFrance100100
Scott Automation Limited 31-AugUnited Kingdom100100
Normaclass 31-AugFrance100100
Rivercan S.A. 31 December (*)Uruguay100100
(*) Determined by local regulatory requirements.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 66

SECTION E: GROUP STRUCTURE & SUBSIDIARIES
E4. INVESTMENTS ACCOUNTED FOR USING
THE EQUITY METHOD
Interests in Joint Ventures
Policy
A joint venture is a joint arrangement whereby the
parties that have joint control of the arrangement have
rights to the net assets of the joint arrangement. Joint
control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the
parties sharing control.
The results, assets and liabilities of joint ventures are
incorporated in these consolidated financial statements
using the equity method of accounting. Under the
equity method a joint venture is initially recognised in
the consolidated statement of financial position at cost
and adjusted thereafter to recognise the Group’s share
of the profit or loss, and other comprehensive income
of the joint venture. In assessing the Group’s share of
the profit or loss or other comprehensive income of the
joint venture, the Group’s share of any unrealised profits
or losses on transactions between Group companies
and the joint venture is eliminated. Dividends or
distributions received from a joint venture reduce the
carrying amount of the investment in that joint venture
in the Group financial statements. When the Group’s
share of losses of a joint venture exceeds the Group’s
interest in that joint venture, the Group discontinues its
share of further losses. Additional losses are recognised
only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of
the joint venture. An investment in a joint venture is
accounted for using the equity method from the date
on which the investee becomes a joint venture until
the date it ceases to be a joint venture. On acquisition
of the investment in a joint venture, any excess of the
cost of the investment over the Group’s share of the
net fair value of the identifiable assets and liabilities
of the investee is recognised as goodwill, which is
included within the carrying value of the investment.
Any excess of the Group’s share of the net fair value
of the identifiable assets and liabilities over the cost
of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the
investment is acquired.

Joint Ventures
Country of
Incorporation
Ownership Interest
2020201920202019
%%$’000s$’000s
Robotic Technologies Limited (i)New Zealand5050 267 335
Scott Technology Euro Limited (ii)Ireland5050 66 135
Scott Technology S.A. (iii)Chile5050 137 71
Rocklabs Automation Canada Limited (iv)Canada5050 753 830
Balance at 31 August 1,223 1,371
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 67

Carrying value of equity accounted investments:
20202019
$’000s$’000s
Balance at 1 September 1,372 928
Share of net surplus 149444
Share of dividends (298) -
Balance at 31 August 1,223 1,372
Summarised statement of comprehensive income of
joint ventures from continuing operations
Joint Ventures
20202019
$’000s$’000s
Income 5,072 6,576
Expenses (4,774)(5,688)
Net surplus and total comprehensive income 298 888
Group share of net (loss)/surplus 149444
Summarised balance sheets of joint ventures:
Joint Ventures
20202019
$’000s$’000s
Current assets3,153 4,474
Non-current assets 996 982
Current liabilities (1,106) (1,775)
Non-current liabilities (801) (1,127)
Net assets2,242 2,554
Group share of net assets1,121 1,277
(i) Scott Technology Limited’s joint venture with Silver Fern Farms Limited, Robotic Technologies Limited (RTL),
was formed in October 2003 and has a balance date of 31 August. RTL’s principal activity is the marketing and
development of (primarily) lamb meat processing equipment and the management of the intellectual property
associated with these developments. Scott Technology Limited’s share of RTL’s net deficit was $68,000 (2019: share
of net deficit $217,000) and RTL paid a dividend to Scott Technology Limited of $Nil (2019: Nil).
(ii) Scott Technology Euro Limited (STEL) is a European sales agency for Scott Technology Limited and is a joint venture
between Scott Technology Limited and Industrial Process Solution of Italy. STEL was formed in 2009 and has a
balance date of 31 August. Scott Technology Limited’s share of STEL’s net deficit was $69,000 (2019: share of net
surplus $55,000). STEL is no longer trading and is in the process of being wound up.
(iii) Scott Technology S.A. (STSA) is a joint venture between Scott Technology Limited and Canadian private company
STG Holdings Limited. STSA commenced trading in June 2014 and has a balance date of 31 August. STSA is a sales
agency for mining equipment in the Americas and is based in Chile. Scott Technology Limited’s share of STSA’s net
surplus was $66,000 (2019: share of net surplus $65,000).
(iv) Rocklabs Automation Canada Limited (RAC) is a joint venture between Scott Technology Limited and Canadian
private company, STG Holdings Limited. RAC commenced trading in 2013 and has a balance date of 31 August.
RAC is a sales agency for mining equipment in North America. Scott Technology Limited’s share of RAC’s net surplus
was $220,000 (2019 share of net surplus: $541,000) and RAC paid a dividend of $298,000 (2019: $Nil).
RTL, STEL, STSA and RAC do not have any contingent assets, contingent liabilities or commitments for capital
expenditure. The Group is not jointly and severally liable for any of the joint ventures’ liabilities.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 68

20202019
$’000s$’000s
Joint Ventures
Project work undertaken by the Group for RTL296 942
Administration, sales and marketing fees
charged by the Group to RTL 214 164
Sales revenue received by RTL from the Group 389 982
Advance from RTL to Scott Technology (426) (344)
Interest charged by RTL to Scott Technology on advance 101 105
Administration fees charged by the Group to STEL - 6
Commission received by STEL from the Group - 211
Advance from STEL to Scott Technology2 (49)
Project work undertaken by the Group for STSA424 571
Advance from Scott Technology to STSA765 1,129
Project work undertaken by the Group for RAC 3,305 1,715
Advance from Scott Technology to RAC (5) 423
SECTION E: GROUP STRUCTURE & SUBSIDIARIES
E5. RELATED PARTY TRANSACTIONS
Advances
Advances to/from joint ventures are unsecured, interest free and repayable on demand.
Directors
S J McLauchlan is trustee of the Scott Technology Employee Share Purchase Scheme. The balance of the interest free
advance owing to the scheme at 31 August 2020 was $7,694 (2019: $7,110). During the year no shares vested with
employees and no shares (2019: no shares) which had not vested with employees were disposed of at market value. As
at 31 August 2020 17,779 (2019: 17,779) shares were being held on trust which had vested with the Trustees upon the
resignation of employees during the period of the Scheme and are available for sale. These shares have been treated as
equity under share capital.
Substantial Shareholders
C C Hopkins is a Director of Oakwood Group Limited, which owns Oakwood Securities Limited, a substantial shareholder
of Scott Technology Limited. C C Hopkins received Directors’ fees of $4,750 from Oakwood Group Limited during the
year (2019: $21,500) whilst a Director of Scott Technology Limited.
JBS Australia Pty Ltd owns a 51.9% shareholding in Scott Technology Limited. The Group has recognised sales to JBS
companies of $6.8 million (2019: $6.2 million), the majority of which are sales of BladeStop machines, and has made
purchases from JBS Companies of $Nil (2019: $Nil). As at balance date the Group had $1.3 million receivable from JBS
Companies (2019: $0.5 million).
The Group has a revolving credit facility with JBS. Refer to C3 for details.
The Group had been working on a development project with the intention of securing a contract for the system with JBS
in the USA. The Group has not been able to meet the performance criteria of this project, and as a result, this project
was written off during the 2020 financial year. This project is included in the impairment of development assets balance
in Note B8 and B9.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 69

SECTION F
OTHER DISCLOSURES
F1. NOTES TO THE CONSOLIDATED STATEMENT
OF CASH FLOWS
Policy
The Statement of Cash Flows is prepared exclusive of
GST, which is consistent with the method used in the
Statement of Comprehensive Income.
Definition of terms used in the Statement of Cash Flows:
Cash includes cash on hand, demand deposits, and other
short-term highly liquid investments that are readily
convertible to a known amount of cash and are subject
to an insignificant risk of change in value, net of bank
overdrafts.
Operating activities include all transactions and other
events that are not investing or financing activities.
Investing activities are those activities relating to the
acquisition and disposal of current and non-current
investments and any other non-current assets.
Financing activities are those activities relating to
changes in the equity and debt capital structure of
the Group and those activities relating to the cost of
servicing the Group’s equity.

20202019
$’000s$’000s
Net (loss)/surplus for the year (17,503)8,604
Adjustments for non-cash items:
Depreciation and amortisation 9,898 8,969
Net gain on sale of property, plant and equipment
(328)
(237)
Deferred tax
(6,491)
(1,456)
Share of net loss/(surplus) of joint ventures and associates
(149)
(444)
Movement due to IFRS 15 adjustment
-
(450)
2,930 6,382
Add/(less) movement in working capital:
Trade debtors
15,564
(1,929)
Other financial assets – derivatives
180
363
Sundry debtors
629
327
Inventories
(123)
265
Contract assets/liabilities
17,455
(13,257)
Development assets
6,786
-
Onerous contract provision
3,463
-
Taxation payable
(126)
(2,520)
Trade creditors and accruals
(7,024)
734
Other financial liabilities – derivatives
(1,724)
1,046
Employee entitlements
(2,726)
(1,692)
Provision for warranty
328
(311)
Interest paid
1,431
1,715
34,113 (15,259)
Movements in working capital disclosed in investing/financing activities:
Working capital relating to purchase of business and non controlling interest
10
1,011
Movement in foreign exchange translation reserve relating to working capital
13
(12)
Net cash inflow from operating activities
19,563
726
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 70

20202019
$’000s$’000s
Net (loss)/surplus for the year (17,503)8,604
Adjustments for non-cash items:
Depreciation and amortisation 9,898 8,969
Net gain on sale of property, plant and equipment
(328)
(237)
Deferred tax
(6,491)
(1,456)
Share of net loss/(surplus) of joint ventures and associates
(149)
(444)
Movement due to IFRS 15 adjustment
-
(450)
2,930 6,382
Add/(less) movement in working capital:
Trade debtors
15,564
(1,929)
Other financial assets – derivatives
180
363
Sundry debtors
629
327
Inventories
(123)
265
Contract assets/liabilities
17,455
(13,257)
Development assets
6,786
-
Onerous contract provision
3,463
-
Taxation payable
(126)
(2,520)
Trade creditors and accruals
(7,024)
734
Other financial liabilities – derivatives
(1,724)
1,046
Employee entitlements
(2,726)
(1,692)
Provision for warranty
328
(311)
Interest paid
1,431
1,715
34,113 (15,259)
Movements in working capital disclosed in investing/financing activities:
Working capital relating to purchase of business and non controlling interest
10
1,011
Movement in foreign exchange translation reserve relating to working capital
13
(12)
Net cash inflow from operating activities
19,563
726
SECTION F: OTHER DISCLOSURES
F2. CONTINGENT LIABILITIES
SECTION F: OTHER DISCLOSURES
F3. KEY MANAGEMENT PERSONNEL COMPENSATION
Payment guarantees are provided to customers in respect of advance payments received by the Group for contract
work in progress, while performance bonds are provided to some customers for a period of up to one year from final
acceptance of the equipment.
Scott Technology Limited has a payment bond to the value of $75,000 in place with ANZ Bank New Zealand Limited in
favour of the New Zealand Stock Exchange.
The Group has exposure to penalty clauses on its projects. These clauses relate to delivery criteria and are becoming
increasingly common in international contractual agreements. There is a clearly defined sequence of events that needs
to occur before penalty clauses are imposed.
The compensation of the executives, being the key management personnel
of the entity, is set out below:
20202019
$’000s$’000s
Payment guarantees and performance bonds 26,272 14,339
Stock Exchange bond 75 75
Maximum contract penalty clause exposure 7,041 6,865
20202019
$’000s$’000s
Short term benefits – employees667
863
Short term benefits – executive Director524 404
Long term benefits – employees - (80)
Long term benefits – executive Director - (76)
1,191 1,111
Reconciliation of Movement in Debt Facilities
Balance at 1
September
Change in
accounting
policyAdditionsDisposals
Net
Drawings
Net
Repayment
Translation
of Foreign
exchange
Balance at
31 August
$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s
2020
Bank Loans 11,667 - - - 3,264 (3,574) (172) 11,185
Lease Liabilities 17,392 - 889 (107) - (4,176) (172) 13,826
29,059 - 889 (107) 3,264 (7,750) (344) 25,011
2019
Bank Loans 7,409 - - 5,000 (742) - 11,667
Lease Liabilities 346 14,375 6,263 - (3,592) - 17,392
7,755 14,375 6,263 - 5,000 (4,334) - 29,059
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 71

SECTION F: OTHER DISCLOSURES
F4. COVID-19 AND GOING CONCERN
COVID-19 continues to have a significant impact on the global economy. As a global organisation with
operations in multiple jurisdictions, the Group has been impacted in numerous ways and continues to assess
the impact on the Group on a regular basis.
The Group took fast and decisive action to protect the health and safety of the employees and the financial
integrity of the Group. The actions taken included:
• Putting the health and wellbeing of all employees and their families first,
• Following all Government regulations, including limiting access to sites,
• Enabling employees to work from home where required, possible and viable,
• Deferred all non-essential capital expenditure and limited all discretionary expenditure,
• Accessing available Government support for employees globally,
• Suspended dividend payments,
• Secured an additional funding line from our majority shareholder, JBS Australia Pty Ltd, and
• Released a revised strategy and restructured the Group’s global operations to right-size the business and
reduce the overall cost base.
The Group has sufficient headroom in its current banking facilities and has also been finalising negotiations with
Scott’s major banking partner, ANZ Bank New Zealand Limited, to ensure the Group continues to have access to
sufficient debt facilities for future investment needs.
COVID-19 continues to provide uncertainties within the day to day operations of the Group and these have
been considered in the Group’s key estimates and judgements.
The actions that have been taken have resulted in improved underlying performance in the second half of FY20,
a stronger cash position and a renewed strategy for future years.
The Board of Directors has reviewed the forecasts of the Group and are satisfied that based on their review,
there will be adequate cash flows generated from operating and financing activities to meet the obligations of
the Group for at least twelve months from signing the financial statements.
The Board believes that the actions taken by the Group, along with the continued support of ANZ Bank
New Zealand Limited and JBS Australia Pty Ltd, will ensure Scott continues to be in a good position to manage
the on-going impacts from COVID-19.
SECTION F: OTHER DISCLOSURES
F5. SUBSEQUENT EVENTS
There have been no events after balance sheet date which materially affect the information within the
consolidated financial statements.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 72

For the year ended 31 August 2020
TO THE SHAREHOLDERS OF SCOTT TECHNOLOGY LIMITED
Opinion
We have audited the consolidated financial statements
of Scott Technology Limited and its subsidiaries (the
‘Group’), which comprise the consolidated balance sheet
as at 31 August 2020, and the consolidated statement of
comprehensive income, statement of changes in equity
and statement of cash flows for the year then ended, and
notes to the consolidated financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying consolidated financial
statements, on pages 24 to 72, present fairly, in all material
respects, the consolidated financial position of the Group
as at 31 August 2020, and its consolidated financial
performance and cash flows for the year then ended in
accordance with New Zealand Equivalents to International
Financial Reporting Standards (‘NZ IFRS’) and International
Financial Reporting Standards (‘IFRS’).
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (‘ISAs’) and International Standards
on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial
Statements section of our report.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
We are independent of the Company in accordance with
Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants
(including International Independence Standards), and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
Other than in our capacity as auditor and the provision of
taxation advice, we have no relationship with or interests in
the Company or any of its subsidiaries. These services have
not impaired our independence as auditor of the Company
and Group
Audit materiality
We consider materiality primarily in terms of the magnitude
of misstatement in the financial statements of the Group that
in our judgement would make it probable that the economic
decisions of a reasonably knowledgeable person would be
changed or influenced (the ‘quantitative’ materiality). In
addition, we also assess whether other matters that come
to our attention during the audit would in our judgement
change or influence the decisions of such a person (the
‘qualitative’ materiality). We use materiality both in planning
the scope of our audit work and in evaluating the results of
our work.
We determined materiality for the Group financial
statements as a whole to be $780,000.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
consolidated financial statements of the current period.
These matters were addressed in the context of our audit
of the consolidated financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
ANNUAL REPORT 2020
PAG E 73
INDEPENDENT AUDITOR’S REPORT
For the year ended 31 August 2020

For the year ended 31 August 2020
INDEPENDENT AUDITOR’S REPORT CONTINUED
Key audit matter How our audit addressed the key audit matter
Recognition of Revenue on Long Term Projects
The Group’s most significant revenue stream relates to
long term projects for customers in various industries.
Revenue on long term projects is recognised over the
term of the contract period using the input method
based on management’s estimate of the percentage
of completion of the individual contracts as detailed in
note A1. An estimate of the percentage of completion
is based on costs associated with the work done to date
relative to the total forecast costs to complete.
There is a significant level of judgement involved in the
recognition of revenue and profit on long term projects
driven by factors which arise throughout the life of the
project requiring estimation, and contract conditions
differing between projects. For these reasons, we have
identified this area as a key audit matter.
We assessed the group’s processes and controls around preparation/
calculation of the percentage of completion.
For a sample of projects in place at the end of the prior year, we
compared the current year actual results to prior year forecasts to
assess the reliability of management estimates relating to the cost of
completion.
For a sample of contracts, we performed the following procedures:
• Assessed whether the key estimates made by management reflect
the terms and conditions of the contract;
• Evaluated cost to complete forecasts by challenging management’s
key assumptions and comparing revenue recognition calculations to
project cost forecasts prepared by project managers;
• Obtained evidence of scope variations and claims and verified that
these have not been included in management’s determination of
revenue recognition until agreed with the customer; and
• Tested the costs incurred on long term projects during the year to
validate the costs and assess whether they have been applied to
contracts appropriately.
Goodwill Impairment Assessment
As at 31 August 2020, there is $57.3 million (2019: $58.0
million) of goodwill included on the balance sheet of the
Group as detailed in note B5. The balance is now held
across four cash generating units after the reallocation
of goodwill to recently separated China and Europe cash
generating units due to the changes of the Group’s senior
management during the year.
NZ IAS 36: Impairment of Assets requires the Group to
complete an impairment test related to goodwill annually.
The Group tests for impairment by determining the
recoverable amount of the cash generating units to which
the goodwill is allocated and comparing the recoverable
amounts of the cash generating units to their carrying
values.
The recoverable amount of each CGU is based on value
in use which is determined using a discounted cash flow
calculation. This calculation is subjective, and requires the
use of judgement, primarily in respect of:
• Annualised forecast cash flows for the 5 year forecast
period (using the budget for the first year of the
forecast period)
• Discount rates
• Annual growth rates
• Terminal growth rates
We have included the impairment assessments of
goodwill as key audit matter due to the significance of
the balance to the financial statements and the level of
judgements and estimates required in preparing the value
in use model.
We considered whether the Group’s methodology for assessing
impairment is compliant with NZ IAS 36. We focused on testing and
challenging the suitability of the models and reasonableness of the
assumptions used by the Group in conducting their impairment reviews.
Our procedures included, among others:
• Agreeing forecast cash flows to Board approved budgets;
• Challenging the reliability of the Groups revenue and expense growth
rates to historical forecasts and actual results. This also included
consideration of COVID-19 on both forecast revenue and profitability
of the cash generating units;
• Assessing reasonableness of key assumptions and changes from the
previous years; and
• Assessing management’s determination of cash generating units
and our understanding of the Group’s business and operating
environment, including the separation of China and Europe in to
separate cash generating units in the current year;
We used our internal valuation experts to assist with evaluating the
models and challenging the Groups key assumptions. The procedures of
the specialist included:
• Evaluating the appropriateness of the models;
• Testing the mathematical integrity of the models; and,
• Comparing the Groups annualised and terminal growth rates to
market data.
We evaluated the sensitivity analysis performed by management
to consider the extent to which a change in one or more of the key
assumptions could give rise to impairment in the goodwill. This was most
evident for the Europe CGU for which additional disclosure was included
in the financial statements.
SCOTT TECHNOLOGY LIMITED
PAG E 74

For the year ended 31 August 2020
Other information
The directors are responsible on behalf of the Group for
the other information. The other information comprises
the information in the Annual Report that accompanies the
consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
Our responsibility is to read the other information and
consider whether it is materially inconsistent with the
consolidated financial statements or our knowledge
obtained in the audit or otherwise appears to be materially
misstated. If so, we are required to report that fact. We
have nothing to report in this regard.
Directors’ responsibilities for the consolidated
financial statements
The directors are responsible on behalf of the Group for
the preparation and fair presentation of the consolidated
financial statements in accordance with NZ IFRS and IFRS,
and for such internal control as the directors determine
is necessary to enable the preparation of consolidated
financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the
directors are responsible on behalf of the Group for
assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
consolidated financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with ISAs and ISAs (NZ) will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these consolidated financial statements.
A further description of our responsibilities for the audit
of the consolidated financial statements is located on the
External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit- report-1
This description forms part of our auditor’s report.
Restriction on use
This report is made solely to the Company’s shareholders,
as a body. Our audit has been undertaken so that we might
state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than
the Company’s shareholders as a body, for our audit work,
for this report, or for the opinions we have formed.

Mike Hawken, Partner
for Deloitte Limited
Dunedin, New Zealand
30 October 2020
ANNUAL REPORT 2020
PAG E 75
INDEPENDENT AUDITOR’S REPORT CONTINUED
For the year ended 31 August 2020

Automated order picking system for boxes and plastic crates for Satens Metaalwaren, Belgium
SCOTT TECHNOLOGY LIMITED
PAG E 76

specific and stringent rules also apply to trading in Scott
Technology Limited’s securities by Directors and certain
employees who are more likely to be exposed to material
information relating to Scott. A Director or senior manager
is obliged to advise the NZX promptly if they trade in the
Company’s shares.
The Directors’ shareholdings and all trading of shares during
the year by the Directors are disclosed under Directors’
Interests on page 84 of the Annual Report.
PRINCIPLE 2
BOARD COMPOSITION
& PERFORMANCE
The Board of Directors operates under a written charter,
which outlines the roles and responsibilities of the Board.
The charter complies with the relevant recommendations in
the NZX Corporate Governance Code and is available on the
company website.
The primary responsibilities of the Board include:
• Ensure the Company’s goals are clearly established and
that strategies are in place for achieving them.
• Establish policies for strengthening the performance of
the Company and ensure that management is proactively
seeking to build the business.
• Monitor the performance of management.
• Appoint the CEO and set the terms of the CEO’s
employment agreement.
• Ensure the Company’s financial statements are true and
fair and conform with the law.
• Ensure the Company adheres to high standards of ethics
and corporate behaviour.
• Ensure the Company has appropriate risk management /
regulatory compliance policies in place.
BOARD COMPOSITION AS AT 31 AUGUST 2020
The Board composition reflects the majority shareholding
of the company, with 51% held by JBS Australia Pty Ltd. As
at 31 August 2020, the Board comprises three Independent
Directors, three Directors representing JBS Australia Pty
Ltd and one Executive Director. The Chair of the Board is an
Independent Director.
CORPORATE GOVERNANCE
Scott Technology Limited (Scott) believes in the benefit of
strong corporate governance and the value it provides for
our shareholders, customers, staff and other stakeholders.
The Board is ultimately responsible for ensuring that the
Company maintains high ethical standards and corporate
governance practices. The Company is striving to ensure its
corporate governance practices are in line with best practice
and the NZX Corporate Governance Code (NZX Code). Any
exceptions to this are identified where appropriate under
Principles 1 to 8 below.
The key corporate governance documents referred to in this
report are available on Scott’s website:
www.scottautomation.com/investor-relations/governance
PRINCIPLE 1
CODE OF ETHICAL
BEHAVIOUR
The Board is committed to maintaining the highest standards
of behaviour and accountability. Scott’s Code of Conduct is
the framework of standards by which the Directors, senior
management and employees are expected to conduct their
professional lives. It is intended to support decision-making
that is consistent with Scott's values, business goals and legal
and policy obligations, rather than to prescribe an exhaustive
list of acceptable and non-acceptable behaviour.
As part of the induction process, new employees receive a
copy of the Code of Conduct, which is accessible to all staff
on the Scott intranet and the Company website. The Code
was most recently reviewed in 2020.
The Company also has an Ethics Line Policy which provides a
confidential online reporting system that allows employees
to report suspected breaches of law or company policies as
well as other serious concerns they may have. The purpose
of the Policy is to protect an employee who wishes to raise
concerns from reprisals or victimisation for reporting their
concerns.
Scott supports the integrity of New Zealand’s financial
markets and has a Financial Product Trading Policy to
mitigate the risk of insider trading by employees and
Directors. In addition to this Policy and Guidelines, more
STATEMENT OF
CORPORATE GOVERNANCE
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 77

STATEMENT OF CORPORATE GOVERNANCE CONTINUED
During the year, Andre Nogueira and Chris Hopkins resigned
as Directors and Alan Byers and John Kippenberger were
appointed as Directors.
Stuart McLauchlanIndependent Chair
Derek ChargeIndependent Director
John ThormanIndependent Director
Brent EastwoodNon-executive Director representing
JBS Australia Pty Ltd
Edison AlvaresNon-executive Director representing
JBS Australia Pty Ltd
Alan ByersNon-executive Director representing
JBS Australia Pty Ltd
John KippenbergerExecutive Director/CEO
John BerryAlternative non-executive Director
representing JBS Australia Pty Ltd
In order for a Director to be deemed Independent,
the Board has determined that he/she must not be an
executive of Scott Technology nor an executive or director
of JBS Australia Pty Ltd and must have no disqualifying
relationships. Independence will be determined by reference
to the NZX Listing Rules and the NZX Corporate Governance
Code.
Further details on each Director, including their interests,
qualifications and shareholdings, is provided in the Annual
Report and on the Company’s website.
DIRECTOR APPOINTMENT
Membership, rotation and retirement of Directors is
determined in accordance with the Company Constitution
and NZX Listing Rules.
Directors will retire and may stand for re-election by
shareholders every three years. A Director appointed since
the previous annual meeting holds office only until the next
annual meeting but is eligible for re-election at that meeting.
The Board asks for Director nominations each year prior to
the Annual Shareholders Meeting, in accordance with the
constitution of the Company and the NZX Listing Rules.
The Governance, Remuneration and Nominations Committee
undertakes the process for nominating and appointing
Directors on behalf of the Board and makes appropriate
recommendations to the Board, in line with the Committee’s
Terms of Reference. New Board members enter into written
agreements with the Company, setting out the terms of their
appointment.
The Board has a skills matrix and Directors are selected on
individual skills, qualifications, experience and contribution
to the Company. The Board believes that all current Directors
offer valuable and complementary skill sets.
For the year ended 31 August 2020
CORE SKILLS
Governance
Finance & Accoun�ng
Risk Management
Capital Markets and M&A
Health & Safety
Regulatory Knowledge & Experience
Human Resources
GROWTH
Growth Execu�on
Strategy
Opera�ons & Supply Chain Excellence
Industry Experience
Customer / Brand / Marke�ng
Interna�onal Experience
RELATIONSHIPS
Govt / Regulatory Rela�onships
Investor Rela�onships
Skills Matrix and Director Strength
Number of directors with strength in this area
The Board is satisfied that each Director has the necessary
time available to devote to the position, broadens the
Board’s expertise and has a personality that is compatible
with the other Directors.
The company encourages all Directors to undertake
appropriate training and education to ensure they remain up
to date on how to best perform their duties as Directors.
Day-to-day management of Scott is delegated to the CEO
and the senior management team, in line with the company’s
Delegated Authority framework.
Management is responsible for providing information of
sufficient content, quality and timeliness as the Board
considers necessary to allow the Board to effectively
discharge its duties. In addition, all Directors have access
to management to discuss issues or obtain information on
specific areas in relation to matters to be discussed at Board
meetings, or other areas as they consider appropriate.
SCOTT TECHNOLOGY LIMITED
PAG E 78

For the year ended 31 August 2020
With the prior approval of the Chair, each Director also has
the right to seek independent legal and other professional
advice at the Company’s expense about any aspect of the
Company’s operations or undertakings to assist in fulfilling
their duties and responsibilities as Directors.
The Board regularly evaluates its own collective and
individual performance, processes and procedures, including
those of sub committees. Through this informal process, the
Board identifies any training opportunities for the individual
Directors to ensure they have relevant and up-to-date skills
for performing their role.
DIVERSITY
The Board has a Diversity Policy which outlines Scott’s
commitment to providing an inclusive and diverse working
environment.
Diversity initiatives are applicable, but not limited, to
our practices and policies on recruitment and selection;
compensation and benefits; professional development
and training; promotions; transfers; social and recreational
programs; restructures; and terminations.
The Board believes the principles of the Diversity Policy were
upheld in FY20, and is working towards setting measurable
objectives to supports its focus on diversity and inclusion.
The following initiatives are in place to support Scott’s
diversity plan:
• Anti-bullying & Harassment policy
• Ethics hotline where employees can anonymously report
anything they believe to be unethical or discriminatory
• Newly introduced Wellbeing plan that focuses on the
long-term wellbeing and engagement of our people
• Employee surveys
As at 31 August 2020, Scott had 613 employees of which 15%
were female and 85% were male (31 August 2019: 781 Scott
employees, 13% female, 87% male).
PRINCIPLE 3
BOARD COMMITTEES
The Board has delegated a number of responsibilities to
Committees to assist in the execution of the Board’s duties.
However, any recommendations made by Committees
are recommendations to the Board and the Board retains
ultimate responsibility for the functions of its Committees.
Each Committee operates under specific terms of reference,
which are reviewed regularly and approved by the Board.
The Board has four standing committees. A separate
Independent Directors’ Committee meets if needed.
Responsibilities of each Committee are detailed in Committee
charters which are available on the company website.
Management attends Committee meetings only at the
invitation of the Committee.
Audit and Financial Risk
Committee
John Thorman (chair)
Stuart McLauchlan
Edison Alvares
Health& Safety CommitteeStuart McLauchlan (chair)
Full Board
Governance, Remuneration
and Nominations Committee
Stuart McLauchlan (chair)
Derek Charge
John Thorman
Treasury CommitteeStuart McLauchlan (chair)
John Kippenberger
Edison Alvares
AUDIT AND FINANCIAL RISK COMMITTEE (AFRC)
The objective of the Audit and Financial Risk Committee
(AFRC) is to assist the Board in discharging its
responsibilities for financial reporting and risk and financial/
secretarial compliance.
The AFRC must consist of at least three Directors and a
majority of Independent Directors. The chair of the AFRC is
John Thorman, who is an Independent Director and is not
the Board Chair. Stuart McLauchlan is a Fellow and John
Thorman a Member of Chartered Accountants Australia and
New Zealand (CAANZ).
The Committee generally invites the Chief Executive Officer,
Chief Financial Officer and the external auditors to attend
AFRC meetings as appropriate. The Committee also meets
and receives regular reports from the external auditors
without management present, concerning any matters which
arise in connection with the performance of their role.
* Officers include all members of the Executive Team who
report to the CEO.
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2020
20192020
As at 31 AugustFemaleMale FemaleMale
Directors,
including the CEO
0808
Officers*
3234

ANNUAL REPORT 2020
PAG E 79

HEALTH AND SAFETY COMMITTEE
The Board recognises the critical role health and safety
forms as part of Scott’s day-to-day operations and its focus
is on ensuring a safety-first culture across all business
operations. Health and Safety is deemed an ‘all of Board’
responsibility and all Directors are members of the Health
and Safety Committee. The Committee assists the Board in
discharging its responsibilities in overseeing and reviewing
health and safety matters arising out of Scott’s activities
and the impact of these activities on staff, contractors and
visitors to Scott.
GOVERNANCE, REMUNERATION AND
NOMINATIONS COMMITTEE
The Governance, Remuneration and Nominations Committee
assists the Board in establishing remuneration policies and
practices for the Company, and to also assist in discharging
the Board’s responsibilities relative to remuneration-setting
and review of, the Company’s Chief Executive Officer and
Directors. The Committee also undertakes the process for
nominating and appointing Directors on behalf of the Board
and makes appropriate recommendations to the Board.
Due to a conflict of interest in being the majority
shareholder, JBS Australia Pty Ltd and their Board
representatives abstain from voting on the appointment of
Independent Directors.
TREASURY COMMITTEE
The role of the Treasury Committee is to oversee the
treasury management processes to ensure the integrity,
transparency and adequacy of the Group’s investments,
borrowings, hedging, balance sheet management and
treasury risk management in accordance with Group
Treasury policies.
INDEPENDENT DIRECTORS’ COMMITTEE
The Independent Directors’ Committee is convened as
needed and consists of Independent Directors who address
significant conflicts of interest and any other matters
referred by the Board. Scott has protocols that set out the
procedures to be followed if there is a takeover offer. These
procedures are set out in the Takeover Response Protocols
that have been adopted by the Board.
BOARD MEETINGS AND ATTENDANCE
Director attendance at Board and Committee
meetings during FY20 was as follows:
BoardAudit & Financial

Risk CommitteeHealth & Safety

CommitteeGovernance,

Remuneration & Nominations Committee
Total Number of Meetings7371
Stuart McLauchlan7371
Brent Eastwood515-
Edison Alvares737-
Andre Nogueira
1
----
Alan Byers
2
1-1-
John Berry (alternate)4-4-
John Thorman7371
Derek Charge7271
Chris Hopkins
3
212-
John Kippenberger
4
626-
1. Andre Nogueira resigned as Director on 7 May 2020
2. Alan Byers was appointed as Director on 7 May 2020
3. Chris Hopkins resigned as Director on 9 December 2019
4. John Kippenberger was appointed as Director on 13 July 2020
5. There were no formal meetings of the Treasury committee
during FY20.
PRINCIPLE 4
REPORTING AND
DISCLOSURE
The Board is committed to providing accurate, adequate
and timely information, both to existing shareholders and
to the market generally. This enables all investors to make
informed decisions about the Company.
Scott, as a company listed on the NZX Main Board, has an
obligation to comply with the disclosure requirements under
the NZX Main Board Listing Rules. Scott recognises that these
requirements aim to provide equal access for all investors
or potential investors to material price-sensitive information
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 80

For the year ended 31 August 2020
concerning issuers or their financial products. This, in turn,
promotes confidence in the market.
Scott’s Continuous Disclosure Policy outlines the obligations
of Scott and relevant Scott personnel in satisfying the
disclosure requirements. It also covers other related matters,
including external communications by Scott.
Scott publishes its key governance and other relevant
documents in the investor centre of the Company’s website at
www.scottautomation.com/investor-relations/governance.
All significant announcements made to the NZX and reports
issued are also posted on the Company’s website.
FINANCIAL REPORTING
Scott’s management team is responsible for implementing
and maintaining appropriate accounting and financial
reporting principles, policies and internal controls. These are
designed to ensure compliance with accounting standards,
applicable laws and regulations.
The Audit & Financial Risk Committee oversees the quality and
integrity of external financial reporting, including the accuracy,
completeness, balance and timeliness of financial statements.
It reviews the full and half year financial statements and
makes recommendations to the Board concerning accounting
policies, areas of judgement, compliance with accounting
standards, stock exchange and legal requirements, and
the results of the external audit. All matters required to be
addressed, and for which the Committee has responsibility,
were addressed during the reporting period.
For FY20, the Directors believe that proper accounting
records have been kept which enable, with reasonable
accuracy, the determination of the financial position of
the Company and facilitate compliance of the financial
statements with the Financial Markets Conduct Act 2013.
The CEO and CFO have confirmed in writing to the Board
that the company’s external financial reports present a true
and fair view in all material aspects.
Scott’s full and half year financial statements are available on
the Company’s website.
NON-FINANCIAL REPORTING
In FY20, Scott introduced a new five-year strategy which
builds on five foundational pillars. Scott believes these pillars
enhance the long term sustainability of the company and
support the company’s licence to operate. The company
discusses its strategy and progress against objectives in
the Annual Report and other investor presentations and
communications.
The company has policies that support environmental,
social and governance concerns and is in the process of
formulating a formal ESG framework. Material matters that
may impact on, or influence, the long term sustainability of
the company are considered and managed as part of the
risk management process.
PRINCIPLE 5
REMUNERATION
Scott’s remuneration philosophy promotes the Company’s
shared performance culture with the aim of achieving
sustained growth within the business, both in terms of
corporate size and the quality of equipment and services
provided to our customers. The philosophy also emphasises
the fundamental value of all our employees and their role
in attaining sustained growth through fair and balanced
remuneration practice.
The Governance, Remuneration and Nominations Committee
makes recommendations to the Board on remuneration
matters, particularly remuneration of Directors and senior
executives, including the CEO.
DIRECTOR REMUNERATION
Details of individual Directors’ remuneration for the year are
on page 89 of the Annual Report.
The total Director remuneration pool of $300,000 was last
approved by shareholders at the 2012 annual meeting. The
Board is responsible for the setting of individual Directors’
fees in accordance with the permitted pool. Any proposed
increases in non-executive Director fees and remuneration
are put to shareholders for approval.
In FY20, the approved remuneration for each role was as follows:
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2020
Fees per annum
(NZ$)
Board Chair$105,000
Independent Director $52,500
Audit & Financial Risk Committee Chair$10,000
Audit & Financial Risk Committee Member$5,000
Health & Safety Committee Chair$10,000
Health & Safety Committee Member$5,000
Governance, Remuneration &
Nominations Committee Chair$5,000
Governance, Remuneration &
Nominations Committee Member $2,500
No fees were paid to Directors representing JBS Australia Pty Ltd.
ANNUAL REPORT 2020
PAG E 81

EXECUTIVE REMUNERATION
The remuneration of the CEO and the Executive Team is
determined by the significance of their role and industry
benchmarking. The total remuneration is made up of fixed
remuneration and short-term cash-based incentives, plus
long term incentives.
The short-term incentives are at-risk payments that reward
performance. They are designed to motivate and incentivise
senior staff in the delivery of performance. The amount
payable is determined annually. The payment of the short-
term incentive depends on achieving certain results and
outcomes. Performance over the financial year is measured
against ‘stretch’ performance targets. The performance
metrics differ with each role. The levels and appropriateness
of these incentives and weighting are reviewed each year.
The senior management phantom share scheme is a long-
term incentive linked to the Company’s share price which
aligns the long-term interests of both senior management
and shareholders, as well as acting as a retention incentive to
senior management.
Further details of the CEO and executive remuneration can
be viewed on page 89 of the Annual Report.
PRINCIPLE 6
RISK MANAGEMENT
The Board is responsible for overseeing the Company’s
system of internal controls to manage key risks and have
overall responsibility for managing risk.
The Company maintains a group risk register to identify and
manage risk. Specific health and safety risk registers for
each site are separately maintained, given the significance
of this area to the business. The senior executive team is
responsible for maintaining the risk registers.
Through the Audit and Financial Risk Committee, the Board
considers the recommendations and advice of external
auditors in relation to financial risk, and ensures that those
recommendations are investigated and, where considered
necessary, appropriate action is taken. Financial statements
are prepared monthly and are reviewed by the Board
progressively during the year to monitor management’s
performance against budget goals and objectives.
A structured framework is in place for capital expenditure,
including appropriate authorisation and approval levels
which place a high emphasis on commercial logic for the
investment. The Board has set limits to management’s
ability to incur expenditure, enter contracts and acquire or
dispose of assets.
The Board requires managers to identify and respond to risk
exposures and key business risks are formally reviewed by
the Board.
Crisis plans are in place, along with agreed protocols on
actions to be taken in crisis scenarios.
HEALTH AND SAFETY
The Board recognises that effective management of health and
safety is essential for the operation of a successful business. Its
intent is to prevent harm and promote wellbeing for employees,
contractors, customers and suppliers. The Health and Safety
Committee Charter outlines the Board’s responsibilities and
approach in regards health and safety matters.
Specific protocols include:
• Well established Health and Safety management systems
and processes in the workplace, fully supported by the
Executive Team and Board.
• Processes and documents are reviewed and audited on
a regular basis as part of our continuous improvement
program through the HS Strategic programme.
• Dedicated Health and safety coordinators on each site,
fully supported and well informed with the legislation
and law changes.
• In-house competency-based training program that
utilises both in-house expertise and external certified
trainers to ensure our staff are safe to operate in our
workshop and on customer sites.
• Health and safety measures which are monitored and
regularly reviewed.
Scott’s Lost Time Injury Frequency Rate (LTIFR) was 8.68 as
at end of September 2020, below industry benchmark for
specialised equipment manufacture is 14.5 (Sourced through
Safework Australia).
CYBER SECURITY
The Board recognises the critical role of Cyber Security and
the importance of having appropriate systems and processes
in place to protect the Company’s data, including financial,
employee, engineering, supplier and customer data.
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 82

PRINCIPLE 7
AUDITORS
The Audit and Financial Risk Committee makes
recommendations to the Board on the appointment of the
external auditor, as set out in the Charter. The Committee
also monitors the independence and effectiveness of the
external auditor and reviews and approves any non-audit
services performed by the external auditor.
The Committee regularly meets with the external auditor to
approve the terms of engagement, audit partner rotation
(at least every 5 years), the audit fee, and to review and
provide feedback on the annual audit plan. Every year,
a comprehensive review and formal assessment of the
independence and effectiveness of the external auditor is
undertaken. The assessment uses an external auditors’
assessment tool, which is internationally recognised and
endorsed by the Independent Directors Council. The
Committee routinely has time with Scott’s external auditor,
Deloitte, without management present.
For the financial year ended 31 August 2020, Deloitte was
the external auditor for Scott Automation Limited. Deloitte
was re-appointed under the Companies Act 1993 at the 2019
Annual Meeting.
All audit work is separated from non-audit services to ensure
that appropriate independence is maintained. Other services
provided by Deloitte were non-audit related and involved
the provision of advice, rather than recommendations.
These were deemed to have no effect on the independence
or objectivity of the auditor in relation to audit work. The
amount of fees paid to Deloitte for audit and non-audit work
in FY20 are detailed on page 36 of the Annual Report.
The last audit partner rotation was in 2020. Deloitte attends
the Company’s Annual Meeting.
Scott has a number of internal controls, including controls
for computerised information systems, security, business
continuity management, insurance, health and safety,
conflicts of interest and prevention and identification of
fraud. Scott does not have an internal audit function.
PRINCIPLE 8
SHAREHOLDER RIGHTS
AND RELATIONS
The Company seeks to ensure that investors understand
its activities by communicating effectively with them and
providing access to clear and balanced information.
The Company website www.scottautomation.com provides
an overview of the business and information about Scott.
This information includes details of operational sites, latest
news, investor information, key corporate governance
information and copies of significant NZX announcements.
The website also provides profiles of the Directors and the
senior management team.
All shareholders are given the opportunity to elect to receive
electronic communications from the Company. Copies of
previous annual reports, financial statements and results
presentations are available on the website.
Shareholders are encouraged to attend the Annual Meeting
and may raise matters for discussion at this event, and vote
on major decisions which affect the Company. The Company
aims to publish notices of Annual Meetings on its website at
least 20 business days before the meeting each year. Voting
is by poll.
In addition to shareholders, Scott has a wide range of
stakeholders and maintains open communication channels
for all audiences, including brokers, the investing community
and the New Zealand Shareholders’ Association, as well
as its staff, suppliers and customers. In particular, Scott’s
Chief Executive Officer and Chief Financial Officer develop
strong relationships with the investor community and ensure
shareholders are kept informed. Scott has a number of
policies which uphold stakeholder interests.
For the year ended 31 August 2020
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 83

STATUTORY INFORMATION
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 84
DIRECTORS’ INTERESTS
The Company maintains an Interests Register in accordance with the Companies Act 1993 and the Financial
Markets Conduct Act 2013.
The following are general disclosures of interest given by Directors of the company under section 140 of the
Companies Act 1993.
Stuart McLauchlan
Chairman
New Zealand Sports Hall of Fame
Chairman
Analog Digital Instruments Ltd
("Group Instruments")
Chairman
Compass Agribusiness Management Limited
Chairman
Otago Community Hospice
Chairman
The New Zealand Whisky Co. Ltd
Chairman
University of Otago Foundation Studies Ltd
Chairman
Woodworks Southern Ltd
Partner/Director
GS McLauchlan & Co Ltd
Director
Argosy Property Ltd
Director
Cargill Hotel 2002 Ltd
Director
Dunedin Casinos Ltd
Director
EBOS Group Ltd
Director
Scenic Hotel Group Ltd
Director
Scott Technology NZ Ltd
Director
Orari Street Properties Ltd
Director
Rosebery Holdings Ltd
Director
Scott Automation Ltd
Director
B Pac NZ
Director
South Link Education Trust
Board Member
& Trustee
Otago Southland Employers Association
Trustee
Scott Technology Employee Share Purchase
Scheme
John Kippenberger
Director
Scott Technology Ltd
Director
Scott Technology NZ Ltd
Edison Alvares
Director
JBS Australia Pty Ltd & Associated Companies
Director
Andrews Meat Industries Pty Ltd Director
Director
Premier Beehive NZ Director
John Thorman
Director
Thorman Holdings Ltd
Director
Corporate Services New Zealand Ltd
Director
GoGlobal New Zealand Ltd
Director
Kitaki Nominees Ltd
Director
Healthlink Group Investments Ltd
Director
Konnect Net Investments Ltd
Director
GAP II NZ GP Ltd
Director
Global Outsourcing Team (NZ) Ltd
Director
P A S Holding Ltd
Director
Proactive Software Ltd
Director
Kitaki Ventures GP Ltd
Brent Eastwood
Chief Executive
& Director
JBS Australia Pty Ltd & Associated Companies
Director
Afoofa Development Pty Ltd
Director
Andrews Meat Industries Pty Ltd
Director
Enunga Enterprises Pty Ltd
Director
Premier Beehive NZ
Member
Business Council of Australia
Derek Charge
Director
Charge Advisory Ltd
Director
Larooma Farm Holdings Pty Limited
John Berry

(alternate for Brent Eastwood, Edison Alvares & Alan Byers)
Chairman
Australian Meat Processor Corporation
Chairman
DirectorJBS Australia Pty Ltd & Associated Companies
DirectorAndrews Meat Industries Pty Ltd Director
DirectorPremier Beehive NZ Director
Alan Byers
Nothing to declare

For the year ended 31 August 2020
STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 85
DIRECTOR APPOINTMENT DATES
The dates below are the first appointment dates for all current Directors. Directors have been re-appointed at
Annual Shareholder Meetings, when retiring by rotation.
Stuart McLauchlan9 October 2007Brent Eastwood10 May 2016
John Kippenberger13 July 2020Edison Alvares10 May 2016
John Thorman1 May 2018Alan Byers7 May 2020
Derek Charge6 March 2019John Berry16 February 2017
DIRECTORS’ SECURITY HOLDINGS AS AT 31 AUGUST 2020
Securities in the Company in which each Director and associated person of each Director, has a relevant interest,
are specified in the table below as at 31 August 2020.
Beneficially OwnedNon-Beneficially Held * (Jointly)
2020201920202019
S McLauchlan404,093398,36017,77917,779
J Kippenberger43,000---
J Thorman----
D Charge----
JBS Australia Pty Ltd
(Represented by H Eastwood, E Alvares,
A Byers and J Berry (Alternate))
--40,612,44339,912,982
Total
447,093398,36040,630,22239,930,761
* The non-beneficially held shares that are held by S McLauchlan are in his capacity as trustee for the
Scott Technology Employee Share Purchase Scheme.
SECURITY DEALINGS OF DIRECTORS
The details of disclosures by Directors of acquisitions or disposals of shares Directors held a relevant interest in
are shown below.
Director
Number of
Shares Acquired Date
Consideration Paid
$’000
JBS Australia Pty Ltd699,461*26 November 20191,597
S McLauchlan (beneficially)5,733*26 November 201913
J Kippenberger32,5773 December 201975
J Kippenberger9,9994 December 201923
J Kippenberger4245 December 20191
* Share acquisitions in relation to the dividend reinvestment plan.
USE OF COMPANY INFORMATION
The Board of Directors received no notices from Directors wishing to use Company information received in their
capacity as Directors, which would not have ordinarily been available.

STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 86
DIRECTORS AND OFFICERS INSURANCE
In accordance with the Companies Act 1993 and the constitution of the Company, Scott Technology Limited
indemnifies and insures its Directors and Officers, including Directors and Officers of subsidiary companies within
the Group, in respect of liability incurred for any act or omission in their capacity as a Director or Officer of the
Company. This insurance includes defence costs. If an act or omission was to occur that was covered by this
insurance, the Company would pay the liability of the act or omission, and be reimbursed by the insurer.
SUBSIDIARY COMPANY DIRECTORS
Sectio n 211(2) of the Companies Act 1993 requires the company to disclose, in relation to its subsidiaries, the total
remuneration and value of other benefits received by Directors and former Directors, and particulars of entries in the
interests registers made during the year ended 31 August 2020.
No subsidiary has Directors who are not Directors of Scott Technology Limited or employees of the Group.
The remuneration and other benefits of such Directors are included in the Directors Remuneration section of this
report and the remuneration and other benefits of employees totalling NZ$100,000, or more, during the year
ended 31 August 2020 are included in the relevant bandings for remuneration on page 90.
No remuneration is paid to any Director of a subsidiary company for their position as Director of that subsidiary
company.
The persons who held office as Directors of subsidiary companies at 31 August 2020 are as follows:
Subsidiary CompanyDirectors
Scott Technology NZ Limited
Stuart McLauchlan, John Kippenberger, Chris Steedman
Scott Automation Limited
Stuart McLauchlan, Chris Steedman
Scott Technology USA Limited
Chris Steedman, Kate Rankin
QMT General Partner Limited
Chris Steedman, Kate Rankin
QMT New Zealand Limited Partnership
N/A
Scott Technology Americas Limited
Chris Steedman, Kate Rankin
Scott Technology Europe Limited
Chris Steedman, Kate Rankin
Scott LED Limited
Kate Rankin
Rocklabs Limited
Chris Steedman, Kate Rankin
Scott Technology Australia Pty Ltd
Chris Steedman, Steve Russell
Applied Sorting Technologies Pty Ltd
Chris Steedman, Steve Russell
Scott Automation & Robotics Pty Ltd
Chris Steedman, Steve Russell, Kate Rankin
Scott Systems International Incorporated
Tony Joyce, Kate Rankin
Scott Systems (Qingdao) Co Limited
Chris Hopkins, Henry Pan
Scott Technology GmbH
Aaron Vanwalleghem
Scott Technology Belgium bvba
Aaron Vanwalleghem BV, MEL-ADMI CONSULTING CommV,
Kate Rankin
Scott Automation NV
Aaron Vanwalleghem BV, Chris Hopkins, Richard Jenman
FLS Group bvba
Aaron Vanwalleghem BV, Chris Hopkins, Richard Jenman
FLS Systems NV
Aaron Vanwalleghem BV, Chris Hopkins, Richard Jenman,
Frederic Hermier
Alvey do Brazil Comercio de Maquinas de Automacao
N/A
Scott Automation a.s. Aaron Vanwalleghem BV, Chris Hopkins (chairperson),
Richard Jenman

For the year ended 31 August 2020
STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 87
Subsidiary CompanyDirectors
Scott Automation SAS
Aaron Vanwalleghem BV, Chris Hopkins, Richard Jenman
Scott Automation Limited
Aaron Vanwalleghem BV, Chris Hopkins, Richard Jenman
Normaclass
N/A
Rivercan S.A.
N/A
Normaclass
-
Rivercan S.A.
-
TWENTY LARGEST EQUITY SECURITY SHAREHOLDERS AS AT 30 SEPTEMBER 2020
RankRegistered ShareholderNumber of Shares
% of Total Shares
in the Company
1JBS Australia Pty Ltd40,612,44351.86
2Oakwood Securities Limited5,500,0007.02
3Russell John Field & Anthony James Palmer2,000,0002.55
4JBWERE (NZ) Nominees Limited1,670,0162.13
5Leveraged Equities Finance Limited1,512,3361.93
6Forsyth Barr Custodians Limited919,5301.17
7Jack William Allan & Helen Lynnette Allan525,0000.67
8Jarden Custodians Limited479,9820.61
9Rosebery Holdings Limited404,0930.52
10Wairahi Investments Limited400,0000.51
11Forsyth Barr Custodians Limited379,7400.48
12Custodial Services Limited376,3240.48
13FNZ Custodians Limited362,6540.46
14GMH 38 Investments Limited250,0000.32
15Robert Wong & Cristein Joe Wong229,5670.29
16Custodial Services Limited226,8290.29
17Custodial Services Limited219,6730.28
18James Ferguson Ring215,0000.27
19Harry McMillan Hearsey Salmon200,0000.26
20New Zealand Depository Nominee163,3450.21
SUBSIDIARY COMPANY DIRECTORS CONTINUED

For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 88
SPREAD OF SECURITY HOLDERS AS AT 30 SEPTEMBER 2020
Range
Number of Ordinary
Security Holders% of Issued Capital
1-1,0008180.53
1,001-5,0001,1413.78
5,001-10,0004274.04
10,001-50,0003929.86
50,001-100,000272.36
Greater than 100,0003579.43
Total Security Holders2,840100%
SUBSTANTIAL PRODUCT HOLDERS
The following substantial product holder information is given pursuant to section 293 of the Financial Markets Conduct Act
2013. These substantial product holders are shareholders who have a relevant interest of 5% or more of a class of quoted
voting products of the Company. As at 31 August 2020, details of the substantial product holders of the Company and their
relevant interests in the Company’s Shares are as follows:
Name of Substantial
Product Holder
Number of Ordinary Voting
Securities as at 31 August 2020% of Issued Capital
JBS Australia Pty Ltd40,612,44351.86
Oakwood Securities Limited5,500,0007.02
DONATIONS
The Group made no donations during the year (2019: $8,000).
CREDIT RATING
The Company currently does not have a credit rating.
WAIVERS FROM NZX LISTING RULES
No waivers were granted by NZX during the 12 month period ended 31 August 2020.
EXERCISE OF NZX POWERS (LISTING RULE 5.4.2)
NZX did not exercise its powers during the year under Listing Rule 5.4.2.
STATUTORY INFORMATION CONTINUED

For the year ended 31 August 2020
REMUNERATION
For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 89
DIRECTORS’ REMUNERATION
Non-Executive Directors received the following Directors’ fees from the Company as follows:
Non-Executive Director
Directors’ Fees FY20
NZ$’000s
Directors’ Fees FY19
NZ$’000s
S McLauchlan (Chair)123125
J Thorman6870
D Charge*5933
Total250228
* Derek Charge was appointed as a Director on the 6th of March 2019 and therefore his fees in FY19 represent
his involvement in FY19.
As a result of the impact of COVID-19, all Non-Executive Directors elected to take a 20% reduction in their fees for
the month of April 2020. Therefore the actual fees paid to the Non-Executive Directors during FY20 was less than
the total fees they were eligible to be paid.
Non-Executive Directors also receive reimbursement for reasonable travel, accommodation and other expenses
incurred in the course of performing their duties. Directors’ fees exclude GST, where applicable.
Remuneration and meeting costs of Directors representing JBS Australia Pty Ltd are paid directly by the JBS Group
of Companies.
CHIEF EXECUTIVE OFFICER REMUNERATION
The review and approval of the CEO’s remuneration is the responsibility of the Board.
The CEO’s remuneration comprises:
• A fixed base salary, including Kiwisaver contributions by the Group;
• An at risk short term incentive (STI) payable annually of up to 50% of the base salary subject to agreed upon
company and individual key performance indicators;
• A long term incentive (LTI) programme which includes the payment of a monetary amount after a period of
approximately three years of continuous full-time employment. The payment amount is determined by the
differential between the Company’s share price at the beginning of the period and the end of the period, after
adjusting for any event that affects the share price, such as capital reconstructions, bonus issues or dividends.
The remuneration of the Chief Executive Officer (CEO) is shown below:
Chief Executive Officer Remuneration
Salary and
Benefits
Short Term
Incentive
Long Term
Incentive
Total
Remuneration
FY20
John Kippenberger (29 November 2019 to 31 August 2020)524--
524
Chris Hopkins
1
(1 September 2019 to 28 November 2019)104--
104
FY19
Chris Hopkins38816(76)
328
1. The CEO remuneration table includes Chris Hopkins' remuneration whilst holding the CEO position. The remainder of his
remuneration as an employee is included in the employee remuneration table.

For the year ended 31 August 2020
SCOTT TECHNOLOGY LIMITED
PAG E 90
REMUNERATION CONTINUED
Salary RangeNumber of Employees
$100,000 - $110,00044
$110,001 - $120,00039
$120,001 - $130,00028
$130,001 - $140,00035
$140,001 - $150,00028
$150,001 - $160,00012
$160,001 - $170,00030
$170,001 - $180,00010
$180,001 - $190,00012
$190,001 - $200,0006
$200,001 - $210,0005
$210,001 - $220,000
4
Salary RangeNumber of Employees
$220,001 - $230,000
4
$230,001 - $240,0004
$240,001 - $250,0005
$250,001 - $260,0003
$260,001 - $270,0002
$270,001 - $280,0002
$290,001 - $300,0001
$340,001 - $350,0001
$350,001 - $360,0001
$370,001 - $380,0002
$600,001 - $610,000
1
EMPLOYEE REMUNERATION
Employee Remuneration consists of a fixed salary, and on an employee by employee basis, may also include
variable or “at-risk” remuneration.
Fixed remuneration includes: an individual’s base salary, for core responsibilities, capability and performance,
along with any superannuation scheme contributions by the Group and any other health or disability benefits
provided by the Group. The base salary is benchmarked to the market.
Variable remuneration includes:
• Short term incentives (STI) that are linked directly to individual and company performance.
• A long term incentive (LTI) programme which includes the payment of a monetary amount after a period of
approximately three years of continuous full-time employment. The payment amount is determined by the
differential between the Company’s share price at the beginning of the period and the end of the period, after
adjusting for any event that affects the share price, such as capital reconstructions, bonus issues or dividends.
The table below shows the number of employees and former employees of the Group, not being Directors or
CEO of the Group, who, in their capacity as employees, received remuneration and other benefits during the
period ended 31 August 2020 totalling at least NZ$100,000. This remuneration includes redundancy payments
but excludes any long-term incentives that have not been triggered
The Group operates in Australasia, Europe, China and the United States where market remuneration levels differ.
Of the employees noted in the table above, 80% are employed by the Group outside New Zealand. The offshore
remuneration amounts are converted into New Zealand dollars.

For the year ended 31 August 2020
ANNUAL REPORT 2020
PAG E 91
DIRECTORS' RESPONSIBILITY
STATEMENT
The Directors are responsible for the preparation, in accordance with New Zealand law and
generally accepted accounting practice, of financial statements which present fairly, in all material
respects, the consolidated financial position of Scott Technology Limited and its subsidiaries (“the
Group”) as at 31 August 2020 and the results of their operations and cash flows for the year ended
31 August 2020.
The Directors consider that the financial statements of the Group have been prepared using
accounting policies appropriate to the Group’s circumstances, consistently applied, and are
supported by reasonable and prudent judgements and estimates, and that all applicable New
Zealand equivalents to International Financial Reporting Standards have been followed.
The Directors have responsibility for ensuring that proper accounting records have been kept which
enable them to ensure that the financial statements comply with the Companies Act 1993 and the
Financial Markets Conduct Act 2013.
The Directors have responsibility for the maintenance of a system of internal control designed to
provide reasonable assurance as to the integrity and reliability of financial reporting. The Directors
consider that adequate steps have been taken to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities.
The Directors present the financial statements of Scott Technology Limited for the year ended
31 August 2020.
These financial statements are dated 30 October 2020 and are signed in accordance with a
resolution of the Directors made pursuant to section 461(1)(b) of the Financial Markets Conduct
Act 2013.
For and behalf of the Directors
Stuart McLauchlan
Chairman & Independent Director
John Kippenberger
Chief Executive Officer

SCOTT TECHNOLOGY LIMITED
PAG E 92
PARENT COMPANY
Registered Office
Scott Technology Limited
630 Kaikorai Valley Road
Dunedin 9011
New Zealand
t +64 3 478 8110
Mailing Address
Scott Technology Limited
Private Bag 1960
Dunedin 9054
New Zealand
Website
scottautomation.com
Chairman & Independent Director
Stuart McLauchlan
Independent Directors
John Thorman
Derek Charge
Directors Representing JBS Australia Pty Ltd
(non Independent Directors)
Alan Byers
Brent Eastwood
Edison Alvares
John Berry (Alternate Director)
Chief Executive Officer
John Kippenberger
REGIONAL CONTACTS
ANZ
Twain Drewett
t +61 4281 30922
tdrewett@scottautomation.com
China
Cathy Smart (Zhang)
t + 86 186 6168 1911
c.smart@scott.co.nz
Europe
Aaron Vanwalleghem
t +32 473 477 590
a.vanwalleghem@scottautomation.be
Americas
Tony Joyce
t +1 740 692 5086
t.joyce@scotttechnology.com
PROFESSIONAL SERVICES
Share Registry
Link Market Services Ltd
PO Box 91976
Auckland 1142
t +64 9 375 5998
f +64 3 375 5990
enquiries@linkmarketservices.co.nz
Bankers
ANZ Bank New Zealand Ltd
Solicitors
Gallaway Cook Allan
Auditor
Deloitte Limited
DIRECTORY

Complete Rocklabs fire assay system solution for Peñoles, Mexico

---

RESULTS FOR
THE YEAR ENDED
31 AUGUST 2020
30 OCTOBER 2020
1

FY20 SNAPSHOT
•Appointment of new CEO and strengthened executive team
•Significant impact from COVID-19 seen from late in the first half and throughout the second half of
the financial year.
•Softening economic conditions noted in key markets, including the impact of global trade and
Brexit, further exacerbated by COVID-19 restrictions across the globe.
•Launched new strategy focused on sustainable and profitable returns and reduction in risk
•Restructuring of cost base completed including the relocation of manufacturing from Germany,
consolidation of sites in New Zealand and commenced sale process for non-core HTS-110 business
in New Zealand.
•Increased focus on working capital discipline, cost management and more rigorous project risk
assessment.
•Value continues to be added by acquired businesses, particularly Transboticsand BladeStop
•Demand for high quality robotics and automation continues, albeit with some disruptions from
COVID-19.
2

OUR RESPONSE TO COVID-19
Response:
•Remote working solutions
•Restructuring and right-sizing of
organisation
•Commenced development of in-
country ‘design, build, service’
resources
•Local sub-contracting of resources,
as needed
•Strong control over cash flows
•Receipt of $3.6m in Government
wage subsidies
•Access to JBS funding facility
Significant impact on results and performance:
•Health, safety and wellbeing of team members has
remained a priority
•Border restrictions means team members are unable to
travel, affecting implementation and execution of
projects
•Remote working solutions have been put in place but
this is not always a suitable solution
•Impact of COVID-19 on customers, including capital
expenditure, resulting in deferral or delayed start times
for some projects
•Challenges around site access during COVID-19
lockdowns
3

NEW FIVE-YEAR STRATEGY
OUR MISSION
Delivering smart automation solutions that
transform industries and lives.
OUR VISION
To be the first choice for businesses around the
world wanting smart automation and robotic
solutions which make their businesses safer, more
productive and more efficient.
OUR GOALS
•Establish and maintain leadership positions in
our areas of expertise
•Deliver positive customer outcomes
•Continue to build on our global brand and
reputation for delivering exceptional
automation and robotics solutions
•Build a highly focused and efficient global
operating platform
•Deliver sustainable and profitable returns and
reduce risk
4

ENGINEERING SCOTT TO HIGH PERFORMANCE
2020 - 2025
FOUNDATIONS FOR
PROFITABLE GROWTH
See appendix slides for more detail on individual Foundations
5

RESTRUCTURING PROGRAMME
Goal to right size the business and workforce for the new strategy and operating environment.
Business now has a strong regional footprint for the future.
•EstablishedCentresofExcellencewhereeachplanthasa specificfocusona productorindustry
sector.
•Streamlinedregionallyfocusedbusinessplatformwithfourregions- Australasia(NewZealand&
Australia),Europe,AmericasandChina.
•Reduced headcount by approx. 20% -147 full time equivalent employees. Increased use of
alternative human resource models moving forward.
•Network changes include:
•Relocation of manufacturing from Germany, with production moved to other plants
•Consolidated sites in New Zealand from 7 to 5
•Sales process underway for small non-core business in New Zealand
6

FY20 RESULTS SUMMARY TABLE
$MFY20FY19
Revenue
186.1225.1
EBITDA
(11.6)20.0
Non-trading adjustments
1
15.3-
Underlying EBITDA
2
3.720.0
NPAT/NLAT
(17.5)8.6
Net Cash/ (Overdraft)7.7(4.7)
Operating Cashflow 19.60.7
1.FY20 includes non-trading adjustments of $15.3m. Refer to slide 9 for further details.
2.Underlying EBITDA excludes non-trading adjustments.
FY20 results reflect:
•impact of COVID-19
•launch of new strategy
•close out of several challenging
legacy projects
•restructuring and write down of
non-core assets as a result of
the new strategy.
No final dividend has been
declared.
7

REVENUE BY OPERATING REGION
0.0
20.0
40.0
60.0
80.0
100.0
120.0
AustralasiaAmericasEuropeChina
$MILLIONS
•Revenue down 17% due to existing economic
trends, significant impact of COVID-19, and
complexity of projects.
•Positive growth in USA in 1H20 with strong
performance from BladeStopand Transbotics.
•China impacted by COVID-19 shutdown during
January and February but one of the first regions
to recover.
•Reduced Australasia revenue mainly in New
Zealand, from lower sales in Meat and
Appliances sectors.
•Europe was the most affected region, with
challenges of COVID-19 exacerbated by Brexit
issues.
8

EBITDA
Non-trading adjustments of
(15.3)m comprise:
•$7.6mimpairment of Australasian
assets due to the new strategic
direction
•$4.3m restructuring provision
•$6.2m revenue impairment on
challenging legacy Australasian
projects
•$2.8m wage subsidies included
in FY20
•EBITDA $(11.6)m, Underlying EBITDA $3.7m
•EBITDAimpacted by reduced revenue, lower volumes
leading to lower overhead recoveries, margin
pressure and forex impact
•Non-trading adjustments reflect new strategy,
restructuring and challenging Australasian projects.
•Close-out of challenging Australasian projects: Have
been moved to either acceptable outcomes for both
Scott and the customer, or to an exit. Mandatory pre-
bid review has been introduced on all large project
bids to appropriate price risk.
9

STRONG OPERATING CASHFLOW & NET CASH
POSITION
FY19
FY19FY20FY20
(6)
(4)
(2)
0
2
4
6
8
10
12
14
Net Cash/(Overdraft)Bank term loans
$M
Net Cash/(Overdraft) and
Term Loans
•Net operating cashflow of $19.6m, up by $18.9m
from $0.7m in prior year.
•FY20 cashflow is now more representative of
underlying business.
•Focus on working capital disciplines has resulted in
strong improvements despite COVID-19 environment
-Trade debtors reduced by 40% to $23.4m
-Trade creditors reduced by 23% to $24.0m
•Bank term loans of approx. $11m.
•Positive cash position of $7.7m as at 31 August 2020.
10

SECTOR AND
REGIONAL
REVIEW
11

OUR BUSINESS
12

REVENUE MIX
ANZ
22%
China
5%
Europe
41%
Americas
32%
By Region
Percentage of FY20 Sales Revenue
Meat
15%
Appliances
11%
Materials
Handling
28%
Industrial
Automation
28%
Mining
18%
By Industry Segment
Percentage of FY20 Sales Revenue
13

MINING
•Primarily in Australia.
•Strong performance in FY20 with significant inroads made
into the automated laboratory and sampling space.
•High precious metal and gold prices driving customers’
investment in new and increased capacity.
•Strong interest for automating laboratory solutions for a
number of new mines in both Australia and North America,
as well as upgrades on existing sites.
•Long-term customer partnerships including Rio Tinto,
MinAnalyticaland FortesqueMetals Group.
•Centre of Excellence: Rocklabsmining products: New
Zealand.
14

MEAT
•Primarily Australia/New Zealand and growing opportunity in
the USA.
•Demand for BladeStopband-saw machines continues,
together with demand for service.
•Relatively quiet year for large primal cutting automation.
•Number of new opportunities now being progressed,
including with pork and poultry sectors in the USA; and lamb
deboning and materials handling in ANZ.
•Labour shortages and COVID-19 risks continue to drive
demand for automation solutions.
•Centre of Excellence for Meat Processing systems in both
Australia and New Zealand.
15

APPLIANCES
•Increase in global consumer demand for white goods has
seen growing level of interest from large appliance
customers.
•These world renowned brands, including GE, Haier, Subzero,
Electrolux and Bosch, are looking for a mix of upgrades to
existing production lines along with new line builds to
increase capacity in the United States and China in particular.
•Centre of Excellence for Appliances in New Zealand and
China, with team then travelling to install, commission and
service systems. Significant impact of COVID-19 on ability to
deliver on projects in FY20.
16

MATERIALS HANDLING & LOGISTICS
•Mainly focused on European market which has been
impacted by COVID-19 and Brexit.
•Focus on rebuilding European market as well as taking
proven technology into ANZ and North America.
•Early stage opportunities in both ANZ and USA which will
provide successful testimony sites to expand our market
reach.
•Expect that more companies will invest in their homeland
and will automate factories to reduce dependence on
production lines manned by people. Scott’s global reach
ensures we are well placed to serve these customers, as
and when needed.
•Centre of Excellence in Europe: Alveymaterial handling &
logistics brand.
17

INDUSTRIAL AUTOMATION
•Centre of Excellence: Transbotics– autonomous guided
vehicles (AGVs) in USA; Robotworxin USA.
•Ongoing demand from US companies looking for
specialised large weight-carrying autonomous guided
vehicles.
•In Australia and New Zealand, there are a number of
ongoing projects in the area of robotics and automation.
•Projects deferred or delayed by COVID-19 are now being
progressed or are completed.
•Working with a range of customers from defence
contractors to food, beverage and warehousing
providers.
18

REGIONAL FOCUS
•ANZ: Primarily Meat and Mining customers. Government stimulus in Australia expected to benefit
Scott. Growth potential lies in providing more of our product/systems range to existing customers
and building on customer partnerships for new projects.
•EUROPE:Most impacted by COVID as well as Brexit. Future pipeline continues to build with a
number of deferred and new projects expected to come on stream in FY21. Potential to grow
sales of BladeStopas well as Materials Handling systems.
•USA: Primarily Industrial Automation sector. Deferred projects now coming back on stream.
Growth of demand for BladeStopexpected to continue, new opportunities being progressed in
the Meat sector particularly pork and poultry, and in Materials Handling.
•CHINA: More recent part of the business, primarily Appliances, with good opportunities.
Increasing demand for automation is being driven by Government promotion, increasing labour
cost, and the impact of COVID-19 on manufacturing sites, with more businesses looking to invest
in equipment. A key focus for the year ahead is on delivery and costs to ensure a competitive
regional service offer.
19

RECENT AND CURRENT PROJECTS
20

RECENT AND CURRENT PROJECTS
21

SCOTT OUTLOOK FOR FY21
•LONG TERM TRENDS REMAIN POSITIVE for the automation and robotics industry.
•NEW 5-YEAR STRATEGY is seeing Scott focus on areas of expertise and continued innovation to
drive growth and margins while reducing risk.
•CONTINUING UNCERTAINTY OF COVID-19 ENVIRONMENT: Continuing restrictions and border
closures are likely to impact on the business in FY21.
•RECOVERY AND GROWTH IN DEMAND: Some deferred and delayed projects now coming back
online, with demand gaining traction in some regions and sectors.
•NEW ORGANISATIONAL FOOTPRINT AND STRENGTHENED EXECUTIVE TEAM will stand company
in good stead, with a leaner cost base, manufacturing centres of excellence and more appropriate
regional network.
•Confident that actions being taken under new strategy will deliver value to customers, staff and
shareholders.
22

THANK YOU
23

NON-GAAP FINANCIAL INFORMATION
Non-GAAP financial information:
Scott has used several non-GAAP measures
when discussing financial performance.
These include EBITDA and Underlying
EBITDA. Management believes that these
measures provide useful information on the
underlying performance of Scott’s business.
They may be used internally to evaluate
performance, analysetrends and allocate
resources. Non-GAAP financial measures
should not be viewed in isolation nor
considered as a substitute for measures
reported in accordance with NZ IFRS.
Non-trading Adjustments:
Impairments (Australasia)
•$(0.2)m relating to non-core LED business which has
ceased trading
•$(0.4)m - cessation of a research collaboration project
•$(3.4)m - cessation of dairy technology development project
•$(3.6)m – impairment of other development assets
Restructure Provision
•$(4.3)m restructuring provision for the closure of facilities in
Dunedin (DC Ross) and Germany.
Revenue
•$(6.2)m project impairments
•$2.8m wage subsidy
24

GLOSSARY OF TERMS
•EBITDA: Earnings/ Loss before the deduction of interest, tax, depreciation and amortisation. FY20
EBITDA was impacted by a number of non-trading adjustments totaling $(15.3) million, details of
which are included in Scott’s Financial Statements.
•Underlying EBITDA: This is EBITDA excluding non-trading adjustments.
25

AUTHENTIC CUSTOMER PARTNERSHIPS
•Focusondeliveringexcellencetocustomersinourtargeted
sectors–Mining,Meat,Appliances,MaterialHandling&
Logistics.
•Strongcustomerrelationshipswithstreamlinedpointsof
interactionandregionalsupport& execution.
•LeveragetheScottbrandandreputationforbest-in-class
design,deliveryandservice.
Buildauthenticcustomerpartnershipswhichyieldrepeatbusinessandgrowth
opportunities.
26

LEADING EDGE TECHNOLOGY
•PivottheProject/Product/Servicemixfrom60/20/20to40/30/30todrive
growthandmargins,whilereducingrisk.
-Project: Bespoke customer solutions focused on areas of expertise to
reduce risk, improve customer delivery and generate higher margins.
-Products: Repeat, profitable sales of developed and proven technology,
products and systems which are core to the Scott Group and offer
strong margins.
-Service: Structured long-term support and servicing of products and
technologies, driving safety, performance and efficiency at customer
sites.
-R&Dactivitiesfocusedontargeted,strategicandcommercial
innovationopportunities.
LeverageScott’sleadingtechnologyplatformsandofferings.
27

ONE GLOBAL TEAM
•Enableend-to-endteamownershipandaccountabilityforcustomer
outcomesandshareholderreturns.
•Provideeffectiveregionalleadershipandexecutionwithsupport
fromtheNewZealandHeadOffice.
•ContinuetodriveaGroup-widesafetyculture; inourfactories,
duringinstallationsandwhilsttravelling.
•Investintalentdevelopment,engagementandretention.
•Alignremunerationandincentivestructurestodriveahigh-
performanceculture.
CreateaneffectiveglobalScott‘identity’andculture,witha focusondelivering
excellenceandpositivecustomeroutcomes.
28

OPERATIONAL EXCELLENCE
•Identify,evaluateandpricedevelopmentriskupfrontandbuild
effectiverisk-sharingmodelswithglobalcustomers.
•Excelinprojectmanagementdisciplines,designandengineering
controls.
•ImplementstrongfinancialmanagementsystemsGroup-wide.
Robustsystems,controlsandprocessestoensuredeliveryofprojectsonspec,on
timeandonbudget
29

ROBUST GLOBAL PLATFORM
•Agileandefficientfixed-vs-variablelabourcoststructure.
•Streamlinedregionallyfocusedbusinessplatformwithfour
regions- Australasia(NewZealand&Australia),Europe,
NorthAmericaandChina.
•Centresofexcellencewhereeachplantwillhavea specific
focusona productorindustrysector.
Buildanoperationsinfrastructurematchedtoourgrowthcurve.
30

DISCLAIMER
•This presentation has been prepared by Scott Technology Limited (NZX: SCT).The information in this presentation is of a general nature
only. It is not a complete description of SCT.
•This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitationorsolicitation for
such offers.
•This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor. It does not
take into account any particular prospective investor’s objectives, financial situation, circumstances or needs, and does notpurport to
contain all the information that a prospective investor may require. Any person who is considering an investment in SCT securiti es should
obtain independent professional advice prior to making an investment decision, and should make any investment decision havingre gard to
that person’s own objectives, financial situation, circumstances and needs.
•Past performance information contained in this presentation should not be relied upon (and is not) an indication of future
performance.This presentation may also contain forward looking statements with respect to the financial condition, results of operations
and business, and business strategy of SCT. Information about the future, by its nature, involves inherent risks and uncertainties.
Accordingly, nothing in this presentation is a promise or representation as to the future or a promise or representation thatantransaction
or outcome referred to in this presentation will proceed or occur on the basis described in this presentation. Statements or assumptions in
this presentation as to future matters may prove to be incorrect.
•Financial measures used in this presentation should not be considered in isolation from, or as a substitute for, the informationprovided in
SCT’s financial statements available at
https://www.scottautomation.com/.
•SCT and its related companies and their respective directors, employees and representatives make no representation or warranty of any
nature (including as to accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any
errors in or omissions from, or for any loss (whether foreseeable or not) arising in connection with the use of or reliance on, information in
this presentation.
31

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Scott Technology Limited

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Results for announcement to the market
Name of issuer Scott Technology Limited
Reporting Period 12 months to 31 August 2020
Previous Reporting Period 12 months to 31 August 2019
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
186,073 (17%)
Total Revenue 189,611 (17%)
Net profit/(loss) from
continuing operations
(17,503) (303%)
Total net profit/(loss) (17,503) (303%)
Interim/Final Dividend
Amount per Quoted Equity
Security
The Company has resolved not to pay a final dividend for the
year ended 31 August 2020.
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.202 $0.504
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the results, please refer to the commentary
in the related NZX release. Further information is also set out in
the audited financial statements of the Company for the 12
months to 31 August 2020 which accompany this information.
Authority for this announcement
Name of person

authorised
to make this announcement
Kate Rankin, Chief Financial Officer
Contact person for this
announcement
Kate Rankin
Contact phone number 03 478 8110
Contact email address k.rankin@scott.co.nz
Date of release through MAP

30 October 2020

Audited financial statements accompany this announcement.

Scott Awarded Multi Million Dollar Contract Scott Announces Strategic Partnership with Savoye

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.