Scott Announces FY21 Results

Full Year Results20 October 2021SCTIndustrials

View on NZX PDF 1 PDF 2 PDF 3 PDF 4 PDF 5

21 October 2021
Company Announcement

SCOTT TECHNOLOGY ANNOUNCES FY21 RESULTS: SOLID PERFORMANCE AS
2025 STRATEGY PASSES FIRST ANNIVERSARY
 Ongoing momentum as the Scott 2025 strategy becomes well established following its first
year, with a streamlined cost structure, a focus on core areas of proven expertise, and
improved performance
 Delivery of year‐on‐year increases in revenue and stronger gross margin percentages which
both combine in the form
of the Group’s highest EBITDA
 Revenue up 16% to $216.2m, gross margin up from 13% to 23%, EBITDA of $22.1m, and net
profit after tax of $9.5m
 Strong programme of forward work with new system design and build contracts in Europe,
USA, China, and Australasia, and continuing growth
in product and service businesses
 Dividend of 4.0 cents per share declared
Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), has today released
its audited results for the twelve months to 31 August 2021 (FY21).
The results demonstrate double digit growth in both revenue and margin, affirming the
progress made
with the Scott 2025 strategy, and as each of the regions reach different stages in their recovery from
COVID‐19. This has seen forward work programs transition in‐line with the business’s core focus areas,
as evidenced by today’s announcement of a NZ$20 million contract to deliver an
automation solution
for a US‐based, leading global appliance manufacturer. This is supported by Scott’s established
repeatable products business, specifically across Rocklabs, BladeStop, Meat Processing and Materials
Handling. The shape of the business’s sales pipeline has similarly transitioned as the capability of its
sales teams matures in‐line with the strategy.

While all three of Scott’s categories have achieved significant revenue growth, it was the Products
category which grew the most (30%), taking its share of total revenue to 23%, up 250 basis points.
Rocklabs, Scott’s mining products and parts business, together with the BladeStop product revenues
into the meat industry,
both showed strong growth on the prior year.
Service revenues across several key markets have also grown, with the Group up 11%, as the team
places increasing importance on executing up‐front service level agreements with key customers.
Growing Service is a strategic priority which is underpinned by a strong execution plan for FY22 and
beyond.
The streamlined operating cost structure now in place following last year’s restructuring activity, has
supported an increase in margins in each of the Scott regions.
Employee health and safety across the Group was once again a big focus for Scott, resulting in a large
increase
in reported near‐misses. These are a forward‐looking indicator and enable the business to
avoid potential future risk. ‘Lag’ indicators of lost time injuries fell 63% at year end. This is great
progress and a result of the deep and sincere commitment from leadership, management, and
employees across the Scott
Group.
Scott Technology Chief Executive Officer, John Kippenberger, says, “At Scott we are proud of our team,
together with our local and global partners. Through their combined efforts, we have successfully
recovered the base business operating performance from the harsh impacts of 2020, and we are

positively positioned to achieve sustained, profitable growth across our key industry sectors and
geographic regions for years to come.

“We will continue to progress our Scott 2025 strategy and focus our energy, talent and investment in
those areas where we believe we have proven world‐leading, technology, systems, and products.”

Results overview


1: Non trading adjustments in FY20 relate to impairment of assets and restructuring expenses.

FY21 revenue of $216.2m increased 16% on the prior comparative period (pcp) as Scott’s strategy of
generating more revenue from proven systems, products and service continued to deliver revenue
growth.
With an EBITDA of $22.1m, the Group reached its highest ever profit, superseding its pre‐COVID FY19
performance of $20.0m.
This was despite lower revenue when compared to the same period,
reflecting margin growth as a result of the ongoing execution of the Scott 2025 strategy.
Margins increased from 8% in FY20, to 23% in FY21, as Scott focused on expanding repeatable
solutions, such as BladeStop and Rocklabs, whilst taking opportunities
to increase price where their
customer proposition is strong. The Group also captured the benefit from last year’s significant right
sizing program, with employee numbers now sitting at 622 in FY21, down from 784 for FY19.
Net profit after tax (NPAT) for the year was $9.5m, significantly ahead of pcp
and 10% higher than
FY19.
Operating cash flow of $13.4m was lower than the pcp of $19.6m as the company’s revenue growth,
in the form of higher trade debtors and contract work in progress, consumed a portion of the higher
net profit after tax ($9.5m) earned in FY21. The Group had
cash in the bank of $12.2m on 31 August
2021.
The Group net debt position moved to a net cash balance of $1.3m, despite the demands on cash of
a growing top line.
In recognition of the progress made by the company, the Directors declared an (unimputed) dividend
of 4.0
cents per share, payable on 22 November 2021. The Dividend Reinvestment Plan will apply.

Results Snapshot
$M
FY21FY20FY19
Revenue216.2186.1225.1
EBITDA22.1(11.6)20.0
Non‐trading adjustments
1
0.011.90.0
Normalised EBITDA22.10.220.0
Net Profit After Tax9.5(17.5)8.6
Net Cash / (Debt)1.3(3.4)(16.4)
Net Cash / (Overdraft)12.27.7(4.7)
Bank Loans(10.9)(11.2)(11.7)
Operating Cash Flow13.419.60.7

COVID‐19 update
The disruptions from the global pandemic have impacted the many countries and continents in which
Scott operates, albeit to varying extents. Ongoing travel restrictions and lockdowns continue to
disrupt in‐person sales meetings, project commissioning, and resource allocation within several of the
company’s operating markets. However, despite the challenges of these
unpredictable environments,
the Scott team has remained steadfast in its commitment to achieving the best possible customer
outcomes, safely and efficiently, at all times.
As vaccination roll‐outs progress, the business looks forward to the world returning to a more open
travel and operating environment in 2022.

Regional business updates
Scott Europe – Strong order book and EBITDA rebound
Scott’s European business has broken free from the constraints of COVID‐19 as the year has ended. It
has delivered an order book which stretches forward close to six months and includes materials
handling projects for European food manufacturers, including as examples
Poco Loco and McCain, and
New Zealand red meat cooperative, Alliance.
Service revenue grew (+27%), as did the meat product business of BladeStop (+130%), through a
maturing sales and operations process and growing market demand.
Most pleasing was the significant recovery in EBITDA with the restructuring program lowering the cost
base and the strategically aligned revenue mix change lifting margins.

Scott Australasia – Strong product demand supported by positive new projects
Profitability growth has continued for the project type business in New Zealand and Australia. This is
a result of new project work in the form of large, repeatable meat
automation systems, most notably
Alliance (NZ), Thomas Foods Australia, and poultry trussing (USA), as well as a continuous flow of mid‐
size industrial automation projects. The latter is reinforced by today’s announcement regarding a
multi‐million‐dollar contract to develop a fully automated, high‐quality, appliance production line for
a
global leader in the branded white goods sector.
Strong global demand in Scott’s mining product business, Rocklabs, has provided important cashflow
and margin generation within its Australasian business. The BladeStop product business is also seeing
steady domestic and global demand, as more focus and capability is applied to this important part
of
the business.
The Scott mining team is deeply embedded in the commissioning of two large complex automated
laboratory systems for Rio Tinto and Min Analytical respectively. The team is progressing well on a
separate semi‐automated system for Rio Tinto. Meanwhile, a

second proprietary heavy machinery
Robotic Fuelling system for a large mining customer, is in the implementation stage.
Europe
Results Snapshot$M
%
$M
%
Revenue54.067.4
EBITDA4.6
8.6%
0.5
0.7%
FY21FY20

Scott China – Growing workloads trigger a move to a new larger production facility
The Scott China team has grown revenue by a factor of 2.3 times versus FY20, through ongoing
demand for their quality automation solutions into the whitegoods appliance sector for global
customers, such as Whirlpool.
To
maintain this growth trajectory, a move to a new facility almost three times the size of the prior
location, took place in the second half of the year.
Comparatively, the China business is in its infancy but the FY21 results demonstrate clear growth
opportunities. Scott’s ambition to build a much larger
business in China continues, with opportunities
to play an increasing role in its supply strategy for the European and American markets, a key part of
this expansion.

Scott North America – BladeStop (meat) growth and margin % drives improved EBITDA
Despite the erratic presence of the pandemic throughout the
year, the Scott America team has
continued to experience inbound interest in its core AGV (autonomous guided vehicles) business. This
demand from the industrial and automotive sectors, together with a stable revenue performance of
its refurbished robot business, Robotworx, has seen a solid financial performance for FY21, despite
the external headwind.

Scott’s BladeStop safety saw product generated strong growth in revenues (+130%) with over 100
machines sold during the year. This reinforces the company’s belief that there is still significant unmet
demand for BladeStop in the North American market, as the protein industry looks for safer
alternatives to the traditional bandsaw.
The significant poultry trussing automation project has been successfully installed and is in production.
US customer Pilgrims, one of America’s largest bird processors, is heavily engaged with this project,
including the roll‐out of this new technology throughout its operations.


Australasia
Results Snapshot$M
%
$M
%
Revenue112.171.4
EBITDA17.5
15.7%
3.3
4.6%
FY21FY20
China
Results Snapshot$M
%
$M
%
Revenue12.95.5
EBITDA2.5
19%
(0.2)
‐3.6%
FY21FY20
North America
Results Snapshot$M
%
$M
%
Revenue37.241.8
EBITDA5.8
15.4%
3.0
7.1%
FY21FY20

Scott 2025 Strategy update
Good progress has been made on the Scott 2025 strategy that is now past its first anniversary.
 Authentic Customer Partnerships: Secured significant repeat business across all sectors, e.g. Rio
Tinto, Yumi, Alliance, Little Swan, Bosch, Candy Haier, McCain, Whirlpool.
 Leading Edge Technology: Focus and higher capability generating strong growth
across our
Rocklabs sample preparation and BladeStop product businesses.
 One Global Team: Significant decrease in lost time injuries and continued focus on employee
retention, development, and wellness.
 Operational Excellence: Delivered sustainable margin improvement across all regions.
 Robust Global Platforms: Strategically aligned pipeline of forward work operating off
a reduced
and more streamlined cost structure. Centre of excellence model bringing focus and efficiency to
the Group.

Sector updates
Meat: Strong, ongoing demand for Scott’s industry leading BladeStop safety saw product continues,
with over 1200 units now installed globally. In the system space, Scott remains focused on sales of
lamb primal systems into the ANZ meat sector and rolling out the new poultry trussing systems across
Pilgrims in the US
and other relevant markets.
Mining:  Scott’s mining business continues to move ahead in two key directions. The products business
– Rocklabs’ crushing, splitting, and pulverising equipment, and reference materials – continues to
trade well across virtually all its global markets. This strength in demand is a testament to the global
reputation of the Rocklabs brand, a talented production and sales team, combined with the continuing
strong global precious metal prices driving capacity globally.
The systems‐end continues to focus on strategically and thoughtfully expanding the semi‐automated
offering of Scott’s laboratory range to bring speed and efficiency to mine operators and
independent
laboratory managers.

Sound progress has also been made in the rollout of the Scott Robofuel systems. These robotic
refuelling stations allow the large mining trucks to be refuelled safely without human intervention
and in an efficient manner that keeps trucks circulating without the need to take them offline.

Appliances:
While this sector is seeing positive investment in capacity from the world’s largest
whitegoods manufacturers, Scott is experiencing increasing competition from automation solution
providers from the likes of Italy, however today’s announcement is further testament to the quality
of Scott’s automation solutions in this sector. The company’s focus remains on providing
quality design
options towards the premium‐end of the market, while driving for competitive pricing, without
exposing Scott to unacceptable risk.
Scott’s China business will continue to drive local growth and support global projects, when
appropriate, from its competitive design and build platform in Qingdao, China.
Material handling and logistics:
Scott has seen ongoing pressure on global distribution and supply
chains because of COVID‐19 and believes this will continue in its aftermath. This, in turn, drives the
ongoing demand for the material handling equipment offered by Scott and with particular demand
in areas such as the e‐commerce and essential
grocery goods sectors.

In the AGV part of the segment, the automotive industry continues to be one of the largest adopters
of unmanned fork‐trucks, due to the autonomy and efficiency they bring to daily operations. With
strong relationships amongst the global tire manufacturers, as an example, Scott sees a positive
future for its
United States based AGV business, Transbotics.

A year into the new strategy, and 18 months into the pandemic, Scott Technology, one of New
Zealand ’s few truly global companies, begins to soar.

ENDS

For more information, visit www.scottautomation.com or contact:
John Kippenberger      Media and investor contact:
Chief Executive Officer,
Scott Technology   Amber McEwen
T: +64 21 964 045      T: +6421 194 0429
E: j.kippenberger@scottautomation.com  E: amberm@porternovelli.kiwi

About Scott
Scott delivers smart automation and robotic solutions that transform industries by making businesses
safer, more productive and more efficient. Our diverse capability makes us the first choice for
hundreds of the world’s leading brands. With design and build operations across Australasia, China,
Europe and America and over 100
years of engineering excellence, Scott is the global expert in
automation.
Scottautomation.com

---

SCOTT TECHNOLOGY LIMITED
ANNUAL REPORT 2021

Automated lamb boning room.

02 Our business
04 FY21 at a glance
06 Chairman’s commentary
08 Chief Executive Officer's commentary
12 COVID-19 response and impact
15 Engineering Scott to high performance:
An update on the 2025 strategy
18 Proactively pursuing service and fostering
customer partnerships at Scott
20 Pivoting the system, product and service
mix to elevate Scott’s Leading Edge
Technology pillar
22 Celebrating regional diversity across
one global team
24 Leading a sustainable future
26 Our Board
27 Financial report
77 Independent auditor’s report
81 Statement of corporate governance
88 Statutory information
93 Remuneration
95 Directors responsibility statement
96 Directory
CONTENTS
DIVIDEND
Final dividend: 4.0 cents per share (unimputed)
Record date: 9 November 2021
Payment date: 22 November 2021
Dividend reinvestment plan applies to this
payment for shareholders who have elected
to receive shares in lieu on a cash dividend.
ANNUAL MEETING
Thursday 25 November 2021, 3:00pm
www.virtualmeeting.co.nz/sct21
Proxies close 3:00pm,
Tuesday 23 November 2021
The Board of Directors of Scott Technology
Limited is pleased to present the Annual
Report for the year ended 31 August 2021. This
provides a review of our progress in FY21 and
our focus for the financial year ahead. Strong
progress has been made in the first full year of
the Scott 2025 strategy, including the COVID-19
pandemic response and impact.
On behalf of the Board, 21 October 2021.
Stuart McLauchlan
Chairman and Independent Director
John Kippenberger
Chief Executive Officer
ANNUAL REPORT 2021
PAG E 1

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

FY21 AT A GLANCE
STRONG RETURN
TO PROFITABILITY
REVENUE UP 16% TO
$216.2M, GROSS MARGIN
UP FROM 8% TO 23%,
EBITDA OF $22.1M AND
NET PROFIT AFTER TAX
OF $9.5M
DIVIDEND
Total annual dividend 6.0 cents.
significant right-sizing program, with employee
numbers now sitting at 622 in FY21, down from
784 for FY19.
Net profit after tax (NPAT) for the year was
$9.5m, significantly ahead of pcp and 10%
higher than FY19.
Operating cash flow of $13.4m was lower than
the pcp of $19.6m as the company’s revenue
growth, in the form of higher trade debtors and
contract work in progress, consumed a portion
of the higher net profit after tax ($9.5m) earned
in 2021. The Group had cash in the bank of
$12.2m on 31 August 2021.
The Group net debt position moved to a net
cash balance of $1.3m despite the demands on
cash of a growing top line.
In recognition of the progress made by
the Company, the Directors declared an
(unimputed) dividend of 4.0 cents per share,
payable on 22 November 2021. The Dividend
Reinvestment Plan will apply.
FINANCIAL PERFORMANCE
FY21 revenue of $216.2m
increased 16% on the prior
comparative period (pcp) as Scott’s
strategy of generating more
revenue from proven systems,
products and service continued to
deliver revenue growth.
With an EBITDA of $22.1m, the Group reached
its highest ever profit, superseding its pre-
COVID-19 performance of $20.0m. This was
despite lower revenue when compared to the
same period, reflecting margin improvement as
a result of the ongoing execution of the Scott
2025 strategy.
Margins increased from 8% in FY20, to 23% in
FY21 as Scott focused on expanding repeatable
solutions such as BladeStop and Rocklabs,
whilst taking opportunities to increase price
where its customer proposition is strong. The
Group also captured the benefit from last year’s
ONGOING
MOMENTUM OF
SCOTT 2025 STRATEGY
With a streamlined cost structure, a focus
on core areas of proven expertise and
improved performance.
SCOTT TECHNOLOGY LIMITED
PAG E 4

20172018201920202021
FINANCIAL$‘000s$‘000s$‘000s$‘000s$‘000s
Revenue132,631181,779225,093186,073 216,234
Net surplus / (loss) after tax10,26510,7728,604(17,503)9,527
Operating cash flow13,4071,01872619,56313,426
Net cash / (overdraft)26,67012,473(4,737)7,74512,242
Bank loans-7,40911,66711,18510,920
Total asset s126,181194,310217,786193,110194,504
Shareholders' equity97,156105,677112,73292,74098,195
DIVIDENDS (CENTS PER SHARE)
20172018201920202021
Interim4.04.04.0-2.0
Final6.06.04.0-4.0
EMPLOYEES (NUMBER)
20172018201920202021
New Zealand215249248188188
Australia84951017786
China2733363545
Americas4474835673
Europe53327316257230
Total423778784613622
FIVE YEAR TRENDS
COVID-19 IMPACT
Still being felt deeply across the Group.
STRONG FORWARD
WORK
With new system design and build contracts
in Europe, USA, China and Australasia and
continuing growth in product and service.
DRIVING HIGH-
PERFORMANCE
SAFETY CULTURE
An increased focus on lead indicators,
resulting in a significant reduction in LTIs.
DEVELOPMENT
OF SUSTAINABILITY
STRATEGY
As we pursue a long-term sustainable future
together with our customers, communities
and wider stakeholders.
ANNUAL REPORT 2021
PAG E 5

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
CHAIRMAN'S COMMENTARY
It is my pleasure to present
Scott Technology’s 2021 Annual
Report on behalf of the Board
of Directors.
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.
The unpredictable nature of COVID-19 has
required Scott to be flexible in managing
individual situations across our global
businesses. Our businesses continue to
stringently follow COVID-19 protocols and
the advice of relevant local authorities, as
applicable to the circumstances at the time.
Throughout the pandemic we have
implemented strict controls with the
objectives of keeping our people safe.
The Scott pandemic response team,
consisting of John Kippenberger, myself and
John’s Executive team, continues to oversee
all COVID-19 related matters impacting our
employees and businesses.
The impacts of lockdowns, and other
restrictions, have put extra demands on
the business and our people. We are very
conscious of the wellbeing and safety of our
people and have invested in extra resources
to assist us through the pandemic.
MANAGEMENT HAS CONTINUED
TO DELIVER A VERY DISCIPLINED
APPROACH TO MARGIN CONTROL,
DEBTOR COLLECTIONS AND
INVENTORY CONTROL
Stuart McLauchlan - Chairman and Independent Director

Stuart McLauchlan
Chairman and Independent Director
HEALTH AND SAFETY
Health and Safety is an important focus for
Scott and we look for the same commitment
from our customers.
We strive for continuous improvement in our
health and wellbeing outcomes for all our
employees and stakeholders. We have set the
same best practice expectations across our
operations in all regions.
The Health and Safety Committee
compromises all Board members.
FINANCIAL PERFORMANCE
The company achieved sales of $216.2m, despite
the ongoing disruptions we have faced in all of
the markets we operate in. We are pleased with
the very strong return to profitability after the
restructuring undertaken last year to right-size
Scott to deliver on the Board’s 2025 strategy.
Management has continued to deliver a very
disciplined approach to margin control, debtor
collections and inventory control.
SCOTT TECHNOLOGY LIMITED
PAG E 6

Stuart McLauchlan
Chairman and Independent Director
We have finished the year with a very healthy
balance sheet, with net cash of $1.3m.
DIVIDEND
The Directors are recommending a final dividend
of 4.0 cents be paid on top of the interim 2.0
cents dividend paid in May of this year.
GOVERNANCE
The annual shareholder meeting is planned to
be held in Dunedin and online on 25 November
at 3:00pm. In accordance with the company’s
constitution and the NZX Listing Rules, John
Thorman, Edison Alvares and Brent Eastwood
will retire and will be eligible for re-election.
The Board and management are committed
and have invested in the development of our
Environmental, Social and Governance (ESG)
program. This will ensure sustainability factors
remain front of mind to both preserve and
create value for all shareholders.
OUTLOOK
Despite the ongoing difficulties of operating
a global business from New Zealand, we
are seeing very good engagement from our
customers. This is resulting in a strong order
pipeline which bodes well for the coming year.
On behalf of the Board, I would like to thank
our shareholders for your continued support
of our company, the Board and management.
Automated mine site laboratory for the Rio Tinto Gudai-Darri
iron ore project during production at our Sydney facility.
ANNUAL REPORT 2021
PAG E 7

84
775
$0
$128m
$103m
$40m $20m $60m $80m $100m $120m
Current
Last year
Forwar d Work
Sys tems
Products
Service
+80%
+67%+9%
35
9
21
CHIEF EXECUTIVE
OFFICER'S COMMENTARY
The 2021 financial year is one which
has seen the Scott team forge strong
and compelling progress across most
parts of the global Scott Group. This
has been achieved through strong
focus on the core fundamentals of
the Scott 2025 strategy, exceptional
talent, commitment and teamwork,
and notwithstanding the ongoing
restrictions and challenges caused by
the global pandemic.
At Scott we are proud of our team, together
with our local and global partners. Through
their efforts we have recovered the base
business operating performance from the
harsh impacts of 2020, and we are positively
positioned to achieve sustained, profitable
growth across our key industry sectors and
geographic regions for years to come.
RESULTS
The results demonstrate double-digit growth
in both revenue and margin, affirming the
progress made with the Scott 2025 strategy and
as each of the regions reach different stages of
their recovery from COVID-19. This has seen
forward work programs transition in line with the
company's core focus areas and supported by
established repeatable products across Rocklabs,
BladeStop, Meat Processing and Materials
Handling. The shape of the business’ sales pipeline
has similarly transitioned as the capability of its
sales teams matures in line with strategy.
While all three of Scott’s categories have achieved
significant revenue growth, it was the Products
category which grew the most (30%), taking
its share of total revenue to 23%, up 256 basis
points. Rocklabs, Scott’s mining products and
parts business, together with the BladeStop
product revenues into the meat industry, are
both showing strong growth on prior year.
John Kippenberger - Chief Executive Officer

AT SCOTT WE ARE PROUD OF
OUR TEAM, TOGETHER WITH OUR
LOCAL AND GLOBAL PARTNERS.
THROUGH THEIR EFFORTS WE HAVE
RECOVERED THE BASE BUSINESS
OPERATING PERFORMANCE...
REVENUE BY GEOGRAPHY
Australia
31%
Americas
17%
Europe
25%21%
New ZealandChina
6%
Forward work progress
SCOTT TECHNOLOGY LIMITED
PAG E 8

Service revenues across several key markets
have also grown, with the Group up 11%, as the
team places increasing importance on executing
up-front service level agreements with key
customers. Growing the Service category is a
strategic priority, which is underpinned by a
strong execution plan for FY22 and beyond.
The streamlined operating cost structure now in
place following last year’s restructuring activity
across all regions and Group head office has
supported an increase in margins in each of the
Scott sectors.
MEAT SECTOR FOCUS AND DRIVE
One of the most fundamental propositions of
the Scott 2025 strategy is to focus our energy,
talent and investment in those areas where
we believe we have world-leading, proven
technology, systems and products. We will
also support our customers via an efficient
and reliable service offer, which ensures
Scott equipment continues to operate at high
performance, safety and efficiency, while at the
same time underlining our brand integrity.
In the large systems side of our meat business,
the team has focused on selling and delivering
proven technology in the lamb primal area. This
is a large solution, which employs dynamic x-ray
vision systems to deliver superior cut accuracy
for the lamb processor. Further, this is a proven
technology where Scott has a strong reputation
in the global marketplace, and the team and
experience to deliver these systems efficiently
and to standard every time.
Most recent examples of this include the sales
into Alliance Lorneville, New Zealand, and
Thomas Foods International, Australia. These
systems are built at our Dunedin meat centre of
excellence and supported by our Christchurch
operations where required.
PRODUCT
Meat Processing
Our meat product offering continues to expand
as we commercialise existing intellectual
property and leading technology, for consistent
and efficient deployment to customers around
the world.
The standard product in meat is our BladeStop
bandsaw. This world-leading technology
combines high-quality engineering of the
bandsaw with patent protected stopping
systems to prevent worker injuries. This part
of our meat business is growing strongly and
with our new global BladeStop leadership
on board to lead our group efforts, we have
a clear pathway to deliver significant sector
penetration and market share growth in
Australia and the United States in particular.
Through our R&D department we are continuing
to package other product options where we
see sizeable addressable global markets. This
includes our recent poultry trussing – a world
first in employing robotics to tie rotisserie
birds – removing ongoing safety issues (RSI) and
freeing-up scarce labour for other roles.
Robotic poultry trussing system for Pilgrims Pride, USA.
ANNUAL REPORT 2021
PAG E 9

John Kippenberger
Chief Executive Officer
REVENUE BY INDUSTRY
Materials Handling
and Logistics
32%
Industrial
Automation
15%
Mining
27%
Appliances
9%
Meat
Processing
17%
Mining
Our mining business continues to move ahead
in two key directions. The products business
– Rocklabs crushing, splitting, and pulverising
equipment, and Reference Materials – continues
to trade well across virtually all of its global
markets. This strength in demand is a testament
to the global reputation of the Rocklabs brand, a
talented production and sales team, combined
with the continuing high precious metal prices
driving capacity and outputs around the world.
The systems-end of our mining business is
currently focused on the completion of the
large fully-automated laboratory for Rio Tinto in
Western Australia. This highly complex project
is further challenged by the impact of COVID-19
in Australia, which presents a range of obstacles.
Most notable is that of being unable to freely
move our team of engineers across the country –
from the build and commissioning work in Sydney,
to the site works in Western Australia. However,
despite these challenges, the team, thanks to a
relentless pursuit of excellence, is making good
progress towards commissioning in 2022.
We are also making sound progress in the rollout
of our Scott Robofuel systems. These robotic
refuelling stations allow large mining trucks to be
refuelled safely without human intervention and
in an efficient manner that keeps trucks circulating
without the need to be taken offline.
Looking forward, we will continue to drive our
Rocklabs products and Robofuel systems. At the
same time we will strategically and thoughtfully
expand the semi-automated offering of our
laboratory range to bring speed and efficiency
to mine operators and independent laboratory
managers.
Materials Handling and Logistics
We have seen ongoing pressure on global
distribution and supply chains as a result of
COVID-19 and believe this will continue in its
aftermath. This in turn drives the ongoing demand
for materials handling equipment offered by Scott.
This is particulary prevalent in areas such as the
e-commerce and essential grocery goods sectors.
In the AGV part of the sector, the automotive
industry continues to be one of the largest
adopters of unmanned fork-trucks due to the
autonomy and efficiency they bring to daily
operations. With our strong relationships
amongst the global tyre manufacturers, as
an example, we see a positive future for our
United States based AGV business, Transbotics.
OUTLOOK
Despite the ongoing disruptions of the global
pandemic and the pressures this continues to
place on our international operations and travel,
the team at Scott has demonstrated strong
progress with our new focused strategy. Our
priority remains to deliver in our proven areas of
expertise across systems, products and service.
With a promising forward work plan and a
number of key projects in commmisioning
stages we are moving into FY22 with positive
momentum.
SCOTT TECHNOLOGY LIMITED
PAG E 10

John Kippenberger, CEO.
ANNUAL REPORT 2021
PAG E 11

I would like to express our sincere
gratitude and appreciation to
the entire Scott team for the way
they have continued to rise to the
expansive challenges presented by the
ongoing COVID-19 pandemic.
When faced with an ever-changing and largely
unpredictable environment, and the impact
of the virus on business and travel around the
world, our Scott team has remained steadfast
in their commitment to achieving the best
possible customer outcomes, safely and
efficiently.
The disruptions from the pandemic are highly
varied across the many continents in which
Scott operates. However, the summarised
areas of largest impact include:
• Teams working remotely from their
colleagues, and from the customer, on
complex projects which demand close and
effective team integration. At times, we
have to accept that the team dislocation
will inevitably impact upon business
efficiency, despite all efforts to work
virtually across our Scott network.
• The time taken to plan and manage travel,
whether this be across State borders or
between countries and regions of the
world. As situations have changed almost
daily in some countries, most notably within
Australia and in relation to Trans-Tasman
travel, the amount of time and energy
required to safely move team members
around the global Scott Group has been
extreme. The commitment from our Scott
team members to travel, and in doing so be
away from family and home for extended
periods of time, is exemplary.
• Commissioning projects in locations, where
due to travel restrictions, we are unable
to move the most experienced technicians
to site. This results in projects taking more
time with less efficient commissioning
processes, and in many cases, has involved
the use of local contractors. Both strategies
incur additional operating costs, and deliver
a related margin erosion effect to Scott.
At Scott we are positively encouraging our
team members to seek full vaccination where
they are able. It is our belief that this is the only
way to keep our fellow colleagues safe, and
for the world to return to a more open travel
environment within the foreseeable future.
Again, we thank and honour our team’s
commitment to continue to drive positive,
and safe, business outcomes in these highly
challenging COVID-19 times.
COVID-19 RESPONSE AND IMPACT
John Kippenberger - Chief Executive Officer
When faced with an ever-changing
and largely unpredictable environment...
our Scott team has remained steadfast in
their commitment
John Kippenberger
Chief Executive Officer
SCOTT TECHNOLOGY LIMITED
PAG E 12

Dunedin team completing FAT (factory acceptance testing) on the
Poultry trussing project, which was installed at Pilgrims Pride, USA.
ANNUAL REPORT 2021
PAG E 13

Automated coil supply for cooktop manufacturing.
SCOTT TECHNOLOGY LIMITED
PAG E 14

While the new Scott strategy was
launched late in FY20, the FY21
financial year presented the first full
year opportunity to really embed
and operationalise it right across
the global business. With a firm
emphasis on focus and playing to
the organisation’s strengths, the
team has made great progress.
CEO John Kippenberger says he’s had huge
admiration for his people over the past
financial year as they’ve adapted in this
exceptional environment to really drive the
new strategy forward.
“Scott 2025 takes the best of our incredibly rich
business and the valuable IP built over our 100
plus year tenure. It creates focus in the areas
where we’re already successful or have proven
technology, and then commercialises it. We then
build our R&D on these proven platforms and
create a world class service business to support it.”
projects that transcend international borders
and historically we’d fly experts into the markets
we operate in to deliver these. The resilience and
agility the team has shown to find new ways to
successfully deliver projects without being on the
ground has been a source of great pride. It’s the
essence of our One Global Team pillar in action.”
Overlaid with the massive disruption to global
supply chains creating difficulties moving both
raw materials and finished product, what the
Scott team has achieved in FY21 is no mean feat.
ENGINEERING SCOTT TO HIGH
PERFORMANCE: AN UPDATE
ON THE 2025 STRATEGY
OUR MISSION
TO DELIVER SMART

AUTOMATION SOLUTIONS
THAT TRANSFORM
INDUSTRIES
He continues, noting that a strategy without
people is nothing but some words on paper.
“The key to making our strategy a reality is,
of course, our people. I’ve been awed this last
year by the way the organisation has come
together in the face of the extreme adversity
that COVID-19 has presented. We have many
A YEAR OF CONSIDERABLE PROGRESS
IN CHALLENGING TIMES
On a macro level, Scott has made a positive step
change in the last year towards becoming a high
performing organisation. With the new structure
now bedded in, adoption and understanding of
the Scott 2025 strategy has accelerated across
the organisation. Pleasingly, this is reflected in
the financials with revenue, gross margins and
profitability all reinforcing the progress.
Diving a little deeper, this progress can also be
tracked against each strategic pillar.
THE KEY TO MAKING OUR
STRATEGY A REALITY IS, OF

COURSE, OUR PEOPLE. I’VE BEEN
AWED THIS LAST YEAR BY THE WAY
THE ORGANISATION HAS COME

TOGETHER IN THE FACE OF THE
EXTREME ADVERSITY...
ANNUAL REPORT 2021
PAG E 15

Customer relationships have always been
important to Scott, but this pillar aims to
take these to the next level. “We are looking
to move our global relationships to be true
partnerships,” says Kippenberger. “This means
we have authentic and honest conversations
about Scott’s capabilities and proven
technologies, including how focusing on these
drives an efficient, low risk outcome for all
parties. These discussions are moving more
towards a five to ten year investment horizon
covering multiple plants of each customer.
This also helps align Scott’s R&D activities for
developing the next generations of our proven
base systems and solutions.” Kippenberger
adds “We’ve had great feedback on our new
approach including introducing step-changes
to our project reporting which serves to keep
the combined Scott and customer teams
aligned and focused at all times during a
design and build project.”
AUTHENTIC
CUSTOMER
PARTNERSHIPS
The central philosophy with this pillar is
rebalancing the business from a highly
complex systems focus, to one which has
an increased focus on products and service.
In the last year, this mix change has gained
great momentum, particularly in the product
space with the likes of our mining parts and
equipment, and BladeStop. And there is room
for huge future growth.
“We will be a big product business in the
future,” says Kippenberger. “I’m proud of the
progress we’ve made in the last 12 months
with mining equipment, BladeStop and
Poultry Trussing, and we will continue to add
products to our portfolio where we marry
our proven expertise with large addressable
international markets.
In terms of service, we are still in the early
stages of building out this offer and I’m
excited about the progress we’ll make here in
the coming years.”
LEADING EDGE
TECHNOLOGY

The biggest change here has been moving from
a centralised to decentralised business model,
with Regional Directors responsible for the
businesses in each market.
“We couldn’t possibly have foreseen the
emergence or impacts of COVID-19 when we
developed the new structure to deliver the
2025 strategy, but it has been exactly what we
needed to do,” says Kippenberger. “With strong
leadership on the ground in each market,
we’ve been able to continue embedding
and operationalising the strategy over the
past 12 months. Further to this, we’ve been
able to give each of our people a clear sense
of the role they play in delivering it." Cathy
Zhang, Regional Director - China, mirrors
this sentiment. "It’s helped us to navigate
through the ongoing uncertainty of COVID-19
and keep our people well, engaged, and our
business moving forward.”
ONE
GLOBAL
TEAM
A key part of this pillar is focussed on building
and embedding the fundamentals of strong
project management into the organisation.
In the past 12 months, Scott has continued to
invest in developing its people in this space.
“Bolstering our project management process
and capability creates efficiencies, and
we’ve seen this play out in project delivery
times, professional customer engagement
OPERATIONAL
EXCELLENCE
throughout the project life cycle, and of
course through a positive impact on the
bottom line,” says Kippenberger.
As well as project management, Scott has
introduced a number of other processes
and methodologies based on industry best
practice to help standardise its operations
and protect margins.
SCOTT TECHNOLOGY LIMITED
PAG E 16

ROBUST
GLOBAL
PL ATFORMS
The central theme of this pillar is having
focussed operating units with each functioning
as a centre of excellence in a particular area.
New Zealand, for example is the centre of
excellence for Meat Processing, Belgium and the
Czech Republic is the centre of excellence for
material handling and logistics. “This has really
resonated with our people,” says Kippenberger.
“In the past year, they’ve felt able to focus
and excel in their areas of expertise, going
bigger and deeper, rather than being spread
too thin across a wide range of systems and
technologies.”
Part of this pillar is also the divestment of
non-core business and at the end of August,
Scott sold its HTS-110 business undertakings.
POSITIVE PROGRESS AND CLEAR
DIRECTION FOR FY22
Kippenberger is proud of the progress he and his
people have made on Engineering Scott to High
Performance 2025. “Smart thinking, resilience
and grit has seen us make great progress on our
2025 strategy. Despite the challenges of national
and international border closures, lockdowns
across our different markets at varying levels
and times, and global supply chain issues, we’ve
managed to come together as one team and
progress each of our strategic pillars.”
combined the Australian and New Zealand
businesses under a single Regional Director.
What’s transpired in the last 12 months is that
this hasn’t worked as a result of COVID-19 and
due to vastly different areas of expertise.”
The team will look to resolve this through the
appointment of New Zealand GM, Andrew
Arnold, and an Australian GM in early FY22.
On what he’d like to have seen more progress
in, Kippenberger’s response is clear. Health and
Safety. “We’ve made significant progress in the
last year, increasing our near-miss and hazard
reporting, reducing our lost time injuries, and
bringing the idea of the broader employee
wellness into our thinking. But this is an area
that we should always demand continuous
improvement in. We will continue to put focus
here in the years to come to ensure our people
and customers are kept safe and happy.”
FY22 looks bright, for the Scott people,
customers and shareholders alike. With progress
set to continue against the Scott 2025 strategy
and the growing appetite for automation across
most of Scott’s major sectors, Scott Technology
is a company to watch.
SMART THINKING,
RESILIENCE AND GRIT HAS
SEEN US MAKE GREAT PROGRESS
ON OUR 2025 STRATEGY.
DESPITE THE CHALLENGES...
WE’VE MANAGED TO COME
TOGETHER AS ONE TEAM
Any good leader will also be able to reflect
on where things haven’t gone quite right.
“When we designed our new structure, we
It’s helped us to navigate through the
ongoing uncertainty of COVID-19 and keep
our people well, engaged, and our business
moving forward
Cathy Zhang
Regional Director - China
ANNUAL REPORT 2021
PAG E 17

While providing customers with
good service has always been
an important part of the Scott
business, it has become a real focal
point over the past 12 months and
has played a fundamental role
in continuing to foster authentic
customer partnerships – a value that
is significant to the business. Jerry
McDonough, Head of US Service,
says the biggest change has been the
level of focus that is put on service.
“We’re proactively seeking to become a service
business versus reactively doing it when we
can. This means we’re introducing service
earlier in the project process, rather than it
being an after-thought. In the US, we’re also
beginning to build out our service organisation
with additional field and back-office support.
We are realigning tasks so that individuals are
becoming more customer-facing.”
Scott’s service offerings are segmented into
regular service and preventative maintenance.
While they are designed to generate revenue,
and build solutions and yield, they also help
foster strong customer partnerships that are
built on trust and transparency.
Chief Financial Officer, Cameron Mathewson,
says that customer intimacy, and having
inside knowledge of their business, is key to
understanding how Scott can continue to adapt
its strategy and ensure its service offering is
evolving to keep up with customer needs.
PROACTIVELY PURSUING SERVICE
AND FOSTERING CUSTOMER
PARTNERSHIPS AT SCOTT
WE’RE IN FOR THE LONG HAUL
AND WE ARE ALWAYS WANTING
TO FIND A SOLUTION WITH

OUR CUSTOMERS
“The industries we work with mean our
customers have machinery that is operating 24
hours, seven days a week, and we need to be
able to assist them at all times. The work we’ve
been doing on elevating our service offerings
over the past year helps us keep our customers
out of trouble, rather than having to get them
out of trouble – a situation no one wants. We’re
continuing to respond to customer feedback in
this area, and it’s impacting where we focus the
changes in our business.”
McDonough concurs, adding that “Introducing
service during the project point-of-sale, and
setting expectations for both Scott and the
We’re continuing to respond to customer
feedback in this area, and it’s impacting where
we focus the changes in our business
Cameron Mathewson
Chief Financial Officer
SCOTT TECHNOLOGY LIMITED
PAG E 18

5.0%
$0
$50m
$100m
$150m
$200m
$2m$4m$6m$8m$10m
$250m
0.5%
1.6%
2.0%
7.8%
12.1%
5.2%
8.4%
8.2%
AppliancesBladeStopIndustrial automa�onRocklabsMining - SystemsLamb automa�onRobotworxTransbo�cs
Sum o
f i nstall b
ase v
alue
Sum of annualised total s ervice revenue
15.0%
5.0%
7.0%
Value Shift >>
Value Shift >>
Value Shift >>
customer, is critical. It helps both parties
agree on what service will look like, as well as
understanding what their responsibilities are
to ensure a successful partnership. Constant
communication, and actively listening to our
customers’ needs, is key.”
McDonough adds “COVID-19 has forced
customer contact to be either virtual or over
the phone, site visits happen less frequently
for several reasons, and many administrative
employees are continuing to work remotely.”
Looking to the future and what’s in the
pipeline for Scott from a service and customer
partnerships perspective, Mathewson says the
business view is that it’s a multi-year horizon.
“There’s still work to be done in ironing out
all of the fundamentals, and the Executive
Team is referring to this as Horizon One. As an
immediate next step, we’re about to increase
the number of service technicians across
each country, as well as build a more robust
roadmap for our service offering that can be
communicated globally. Horizon Two will see
us building a platform and methodology for the
future, and Horizon Three will focus on service
being a strategic offering that is unique to Scott
Technology.”
CONSTANT COMMUNICATION,
AND ACTIVELY LISTENING TO OUR
CUSTOMERS’ NEEDS, IS KEY
From a service and customer partnerships
perspective, COVID-19 has continued to have an
impact on the business globally.
Aaron Vanwalleghem, Regional Director –
Europe says “It has been harder to get in front
of new customers, and there are different rules
surrounding what site access Scott technicians
have in each of the different countries where
Scott has a presence.”
Service revenue growth is a priority of the Scott 2025 Strategy
Focusing on three key service growth
areas, lamb automation, mining and
BladeStop, we can see an additional
delivery of $13m revenue per annum
Annual service revenue as a percentage of installed machine base
Sum of install base value
Sum of annualised total service revenue
5.0%
$0
$50m
$100m
$150m
$200m
$2m$4m$6m$8m$10m
$250m
0.5%
1.6%
2.0%
7.8%
12.1%
5.2%
8.4%
8.2%
AppliancesBladeStopIndustrial automa�onRocklabsMining - SystemsLamb automa�onRobotworxTransbo�cs
Sum o
f i nstall b
ase v
alue
Sum of annualised total s ervice revenue
15.0%
5.0%
7.0%
Value Shift >>
Value Shift >>
Value Shift >>
ANNUAL REPORT 2021
PAG E 19

PIVOTING THE SYSTEM, PRODUCT
AND SERVICE MIX TO ELEVATE SCOTT’S
LEADING EDGE TECHNOLOGY PILLAR
The central philosophy with the
Leading Edge Technology pillar is
rebalancing the business from a
highly complex systems focus, to
one which has an upweighted focus
on products and service. This is
being referred to as the pivot mix.
In the last year, this mix change has gained
great momentum, particularly in the product
space with the likes of BladeStop. Mark Seaton,
Research and Development Manager, talks
about the business’ journey to date, saying it is
very early days on this pathway.
“We have been looking at how we manage
existing standard products such as the
BladeStop product line and determining a
benchmark business model that we hope to
be able to roll out across the group. This will
help us to take full advantage of the benefits of
further productisation.”
“In Scott terminology, a system is traditionally
synonymous with production lines, and a product
Custom unit load AGV for aluminum coils, Novelis Aluminum, China.
SCOTT TECHNOLOGY LIMITED
PAG E 20

PREVIOUSLY, WHEN WE’VE
BEEN DEALING WITH A SYSTEM,
IT’S UNIQUE FOR THAT CUSTOMER
– IT’S HIGH RISK, IT CAN BE
CHALLENGING, AND IT CAN
AFFECT YOUR MARGINS
implies a small stand-alone production unit. Our
end goal is for production lines in the future to be
at least 80% standardised,” says Seaton.
Andrew Arnold, General Manager New Zealand,
adds that there has been a change in thinking
within the team about what a product is versus
a system, and that this change in mindset will
take some time.
“Previously, when we’ve been dealing with a
system, it’s unique for that customer – it’s high
risk, it can be challenging, and it can affect your
margins. When we talk about pivoting the mix,
we want to be more focused on treating our
opportunities to ensure we minimise risk.”
Seaton agrees, saying that in focusing
predominantly on standardised products and
systems, the business can avoid extensive
reworking during a project or designing from
scratch for each new contract, thus being able
to price jobs with more certainty.
“There is a lot of internal growth within the
sectors that we work with, resulting in significant
customisation for each job because of the many
different variations of what can be done.”
“We’re also working to make it easier for
our service technicians who can familiarise
themselves with a core offering, versus new,
customised systems and products each time.”
When asked about what’s in the pipeline for
pivoting the system / product / service mix,
Arnold says a change of thinking continues to
be critical.
“COVID-19 has had a big impact – business has
been hard and it’s been challenging to get in
front of our customers. But as our business
and our way of thinking matures, this mix
pivot will become part of our DNA. We want
the team to understand how to get the most
of out of this mix, as this will impact how we
price things and what our margins are, and
we ultimately want to do what’s best for our
customers.”
WHAT WE HAVE BEEN DOING
IS WITHOUT COMPETITION, SO
WE’RE IN A STRONG POSITION
“Despite this change in mix, our priority is to
ensure our products remain desirable for our
customers, as well as niche – we’re not in the
competitive landscape, we own this space. In our
meat processing business in particular, we have
a strong point of difference. Our lamb systems
and poultry trussing are both good examples of
building the same thing over and over. What we
have been doing is without competition, so we’re
in a strong position,” says Arnold.
As our business and our way of thinking
matures, this mix pivot will become part

of our DNA
Andrew Arnold
General Manager, New Zealand
ANNUAL REPORT 2021
PAG E 21

Scott truly is a global business,
with employees spread across
twelve countries and more than
five continents. In order to succeed,
it is vital that an effective global
Scott ‘identity’ and culture that
focuses on delivering excellence is
implemented across every corner of
the business.
The close of the FY21 financial year presents an
opportunity to reflect on how this key part of
the strategy has been initiated and embraced
by people at all levels of Scott Technology over
the past 12 months.
Core to this pillar is the goal of creating a global
Scott ‘identity’ and culture, while still retaining
the strong regional identities that make Scott
Technology unique as a business. Having
one global strategy has ensured that every
employee is working towards the same goal
– to deliver excellence and positive customer
outcomes – while still allowing the strengths
that stem from these regional cultural
identities to shine.
Having effective regional leadership and
execution is core to achieving this. Casey
Jenkins, Director of Marketing and People, says
the business is benefitting from strong regional
leaders who not only understand the different
regional identities, but exemplify how they
contribute back to the one global strategy.
“Through our global approach to process we
have established a ‘Scott way of doing things’,
however we know that each part of this
business has its own cultural differences and
strengths. For us, it’s about celebrating these
differences and appreciating the diversity of
thought that they bring.”
CELEBRATING REGIONAL DIVERSITY
ACROSS ONE GLOBAL TEAM
FOR US, IT’S ABOUT
CELEBRATING THESE
DIFFERENCES AND
APPRECIATING THE
DIVERSITY OF THOUGHT
THAT THEY BRING
Bringing people together across different
locations, whether it be physically or digitally,
can be challenging and COVID-19 has only
exaggerated this. Jenkins explains “Previously
we have had to rely on flying people across
the world to install new systems, but new
connective technologies have given us the
ability to remote in the very best expert for
the job via augmented reality to work on
projects, no matter their physical location.
Putting the wellbeing of our people first
is more important now than ever before
Casey Jenkins
Director - Marketing and People
SCOTT TECHNOLOGY LIMITED
PAG E 22

“Where this hasn’t been possible and it’s
been critical to have people on the ground,
we’ve effectively managed to overcome the
challenges of the pandemic, ensuring that
our employees that needed to do essential
international travel, into the United States for
example, were able to do this safely.”
Scott has made significant progress in its
company-wide health and safety culture over
the past 12 months. “We are particularly
proud of our efforts in the safety and
wellbeing space,” says Jenkins. “Putting
the wellbeing of our people first is more
important now than ever before. To begin
embedding this into our company culture,
we’ve implemented wellbeing training using
external specialists, offered every employee
a paid wellbeing day off and complimentary
confidential counselling, and brought on a new
Health and Safety Manager, who is a facilitated
mental health first aid trainer. This is just
the beginning, but it’s so important that our
people have the tools to recognise the early
warning signs and direct someone to help, or
even just how to lean into a conversation with
a colleague to make sure they’re okay.”
When dealing with critical risk, a strong
emphasis on workplace safety remains
paramount. “We’ve increased our focus on
reporting incidents and hazards. In fact, we
actually encourage our people to celebrate
reporting near misses. This has improved
safety culture and subsequently seen a large
increase in near miss and hazard reporting as
well as a 63% decrease in incidents at Scott
over the past year.”
Looking to the future, this continued focus on
putting people first will be vital to business
success. “Our people are incredibly smart. It
is truly their skills and strengths that set Scott
apart. They have a highly sought-after skill set,
yet 20% of our hires are internal promotions.
This is something we’re incredibly proud of,
but we can still continue to build on this to
foster talent through pathways to amazing
career opportunities. Continuing to develop
our people is key,” says Jenkins.
“Ultimately, we want to stay close to our
people – whether it be through our increased
focus on safety and wellbeing, or development
opportunities and leadership training. We want
to create a culture where every single person is
empowered to add value, every single day.”
Dunedin team on site installing an automated lamb boning
room at Alliance Lorneville, New Zealand.
ANNUAL REPORT 2021
PAG E 23

“People is about building an
engaged, diverse, and talented
workforce. It focuses on
retention and recruitment which
is a priority for our people-led
business. This is supported by
a commitment to maintaining
a safe and inclusive working
environment for all our people.”
Purpose refers to the
recipients of our solutions and
services – Scott’s customers
and shareholders. It covers
the importance of building
meaningful customer
relationships, which is a key
foundation of the Scott 2025
strategy. This pillar also highlights
Scott’s commitment to growing
a profitable business focused on
long term growth and positive
shareholder return. This pillar
is led by Chief Financial Officer,
Cameron Mathewson.
Place outlines the organisation’s
commitment to the environment
and ensures it develops and
encourages sustainable
business practices. Our focus on
Sustainability ensures that Scott
is partnering with employees,
customers, suppliers that share
our values. This pillar is led by
Aaron Vanwalleghem, Regional
Director – Europe.
“We’re at the beginning of our sustainability
journey and the framework we have developed is
very much a starting point for Scott to continue
building on. Each issue will be expanded upon
as our sustainability strategy matures and as
different issues become material to our business
and to our stakeholders,” says Jenkins.
LEADING A SUSTAINABLE FUTURE
At Scott we are passionate about
pursuing a long-term sustainable
future together with our customers,
communities and wider stakeholders.
We recognise that our collective
responsibility extends beyond
commercial outcomes, and it includes
our relationship with our people, and
the planet.
In the last 12 months, the Scott team, led
by Director of Marketing and People Casey
Jenkins, has worked to develop an ESG
(Environmental, Social and Governance)
Framework, which will help to improve both
financial and non-financial performance. As
part of this, Scott has committed to a series
of long-term sustainability goals that have
been defined as People, Purpose and Place.
Each pillar is aligned with UN Sustainable
Development Goals.
SCOTT CAN PLAY ITS PART IN
BUILDING A BRIGHTER, MORE
SUSTAINABLE WORLD FOR
GENERATIONS TO COME
Jenkins says that it was imperative the new
sustainability strategy should be driven by the
organisation's people and that the goals had
a global perspective. “In order to deliver a
truly global strategy and outcomes, we’ve set
up a sustainability committee, which includes
employees from our sites all around the world.
These people, and the wider business, are
passionate about working together so that Scott
can play its part in building a brighter, more
sustainable world for generations to come.”
Each sustainability pillar is being led by a
different member of the executive team.
Jenkins, with her role and experiences, says it
made sense for her to lead the People pillar.
SCOTT TECHNOLOGY LIMITED
PAG E 24

OUR SUSTAINABILITY FRAMEWORK
PEOPLE
Executive Lead
Casey Jenkins
WHAT DOES THIS LOOK LIKE?
Employee retention
Global recruitment
Employee health and safety
Gender diversity
PURPOSE
Executive Lead
Cameron Mathewson
WHAT DOES THIS LOOK LIKE?
Customer satisfaction
Financial performance
PLACE
Executive Lead
Aaron Vanwalleghem
WHAT DOES THIS LOOK LIKE?
Sustainable procurement
Environmental management
SDGS Sustainable Development
Good Health and Wellbeing
Gender Equality
Decent Work and Economic Growth
SDGS Sustainable Development
Decent Work and Economic Growth
Industrial, Innovation
and Infrastructure
Responsible Consumption
and Production
SDGS Sustainable Development
Climate Action
Responsible Consumption
and Production
Our focus on Sustainability ensures that
Scott is partnering with employees, customers
and suppliers that share our values
Aaron Vanwalleghem
Regional Director - Europe
ANNUAL REPORT 2021
PAG E 25

Stuart McLauchlan
Chairman and
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 26

ANNUAL REPORT 2021
PAG E 27
KEY
Accounting policy
Key judgements and
other judgements made
INDEX TO THE FINANCIAL STATEMENTS
FINANCIAL REPORT
For the year ended 31 August 2021
C. Capital and funding
55
C1.Share capital55
C2.Earnings and net tangible assets per share56
C3.Borrowings56
C4.Trade creditors and accruals58
C5.Leases58
C6.Employee benefits60
C7.Provision for warranty60
C8. Performance based compensation61
C9.Onerous contract provision61
D. Risk management62
D1.Financial instruments62
E. Group structure and subsidiaries69
E1. Acquisition of business69
E2. Restructuring expenses69
E3. Subsidiaries70
E4. Investments accounted for using the
equity method
71
E5. Related party transactions73
F. Other disclosures74
F1.Notes to the consolidated statement of
cash flows
74
F2.Contingent liabilities75
F3.Key Management personnel compensation75
F4.COVID-19 impact76
F5.Subsequent events76
Independent auditor’s report
77
Consolidated statement of comprehensive income28
Consolidated statement of changes in equity
29
Consolidated balance sheet
30
Consolidated statement of cash flows
31
Notes to the consolidated financial statements
32
Summary of accounting policies
32
A. Financial performance
35
A1. Revenue from contracts with
customers and operating expenses
35
A2. Income taxes41
A3. Segment information43
B. Assets
45
B1. Trade debtors45
B2.Inventories47
B3. Contract assets / liabilities47
B4. Property, plant and equipment48
B5. Goodwill49
B6. Intangible assets52
B7. Research and development costs54
B8. Impairment of assets54
B9. Development assets54

SCOTT TECHNOLOGY LIMITED
PAG E 28
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
For the year ended 31 August 2021
20212020
Notes$'000s$'000s
RevenueA1
216,234 186,073
Other operating incomeA1 2,118 3,389
Share of joint ventures’ net surplusE4 796 149
Raw materials, consumables used and operating expenses (132,811) (118,023)
Employee benefits expense
(64,225) (71,377)
OPERATING EARNINGS BEFORE INTEREST, TAX, DEPRECIATION, AMORTISATION,
IMPAIRMENT OF ASSETS AND RESTRUCTURING EXPENSES (OPERATING EBITDA)
22,112 211
Impairment of assetsB8 - (7,600)
Restructuring expensesE2 - (4,257)
OPERATING EARNINGS / (LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (EBITDA)
22,112 (11,646)
Interest revenue 102 191
Depreciation and amortisationB4, B6, C5 (8,836) (9,898)
Finance costs (1,380) (2,093)
NET PROFIT / (LOSS) BEFORE TAX 11,998 (23,446)
Taxation (expense) / benefitA2 (2,471) 5,943
NET PROFIT / (LOSS) FOR THE YEAR AFTER TAX 9,527 (17,503)
Other comprehensive (loss) / income
Items that may be reclassified to profit or loss:
Translation of foreign operations (3,370) (1,136)
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR NET OF TAX 6,157 (18,639)
Net profit / (loss) for the year after tax is attributable to:
Members of the parent entity (used in the calculation of earnings per share) 9,624 (17,331)
Non-controlling interests (97) (172)
9,527 (17,503)
Total comprehensive income is attributable to:
Members of the parent entity 6,254 (18,467)
Non-controlling interests (97) (172)
6,157 (18,639)
20212020
NoteCents per shareCents per share
Earnings per share (weighted average shares on issue):
BasicC2 12.3 (22.2)
DilutedC2 12.3 (22.2)

ANNUAL REPORT 2021
PAG E 29
For the year ended 31 August 2021
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
For the year ended 31 August 2021
Fully paid
ordinary
shares
Retained
earnings
Foreign
currency
translation
reserve
Non-
controlling
interestsTotal
Note$’000s$’000s$’000s$’000s$’000s
Balance at 31 August 2019 80,073 31,949 745 (35) 112,732
Net (loss) / profit for the year after tax - (17,331) - (172) (17,503)
Other comprehensive (loss) / income 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
Net profit / (loss) for the year after tax - 9,624 - (97) 9,527
Other comprehensive (loss) / income
for the year net of tax
- - (3,370) - (3,370)
Dividends paid (2.0 cents per share) - (1,581) - - (1,581)
Issue of shares under dividend
reinvestment plan
C1 879 - - - 879
Balance at 31 August 2021 82,701 19,559 (3,761) (304) 98,195

SCOTT TECHNOLOGY LIMITED
PAG E 30
20212020
Notes$’000s$’000s
Current assets
Cash and cash equivalents 12,242 7,745
Trade debtorsB1 27,485 23,429
Other financial assetsD1 663 1,032
Sundry debtors 5,170 2,575
InventoriesB2 23,125 22,682
Contract assetsB3 24,487 25,381
Receivable from joint venturesE5 - 767
TOTAL CURRENT ASSETS 93,172 83,611
Non-current assets
Property, plant and equipmentB4 17,741 18,298
Investment in joint venturesE4 348 1,223
Other financial assetsD1 37 4
GoodwillB5 55,171 57,316
Deferred taxA2 5,428 5,865
Intangible assetsB6 10,874 13,721
Development assetsB9 2,210 -
Right of use assetsC5 9,523 13,072
TOTAL NON-CURRENT ASSETS 101,332 109,499
TOTAL ASSETS 194,504 193,110
Current liabilities
Trade creditors and accrualsC4 30,095 24,033
Lease liabilitiesC5 2,900 3,818
Other financial liabilitiesD1 714 972
Contract liabilitiesB3 22,739 29,052
Employee entitlementsC6, C8 8,282 7,815
Provision for warrantyC7 1,230 1,874
Taxation payable 1,236 92
Payable to joint venturesE5 108 431
Current portion of term loansC3 737 3,719
Deferred settlement on purchase of businessE1 1,327 1,376
Onerous contracts provisionC9 7,962 7,699
TOTAL CURRENT LIABILITIES 77,330 80,881
Non-current
liabilities
Other financial liabilitiesD1 696 814
Employee entitlementsC6, C8 712 696
Lease liabilitiesC5 7,388 10,008
Term loansC3 10,183 7,466
Deferred settlement on purchase of businessE1 - 505
TOTAL NON-CURRENT LIABILITIES 18,979 19,489
Equity
Share capitalC1 82,701 81,822
Retained earnings 19,559 11,516
Foreign currency translation reserve (3,761) (391)
Equity attributable to equity holders of the parent 98,499 92,947
Non-controlling interests (304) (207)
TOTAL EQUITY 98,195 92,740
TOTAL LIABILITIES AND EQUITY 194,504 193,110
CONSOLIDATED BALANCE SHEET
as at 31 August 2021

20212020
Note$’000s$’000s
Cash flows from
operating activities
Cash was provided from / (applied to):
Receipts from operations 208,146 218,083
Interest received 102 191
COVID-19 wage subsidies received 591 3,614
Payments to suppliers and employees (194,583) (201,651)
Taxation paid (830) (674)
Net cash inflow from operating activitiesF1 13,426 19,563
Cash flows
(to) / from
investing activities
Cash was provided from / (applied to):
Purchase of property, plant, equipment and intangible assets (2,303) (3,206)
Sale of property, plant and equipment 209 2,807
Dividend received from joint venture - 298
Proceeds from advances with joint ventures - 824
Divestment of joint venture 1,215 -
Sale of HTS 768 -
Purchase of development assetB9 (2,210) -
Purchase of businessE1 (457) (514)
Sale / (purchase) of investments - (20)
Net cash (outflow) / inflow from investing activities (2,778) 189
Cash flows to
financing activities
Cash was provided from / (applied to):
Repayment of borrowings (10,175) (3,574)
Dividends paid (702) (1,353)
Proceeds from borrowings 10,119 3,264
Lease payments (4,007) (4,176)
Interest paid (1,386) (1,431)
Net cash (outflow) from financing activities (6,151) (7,270)
Net increase in cash held 4,497 12,482
Add cash and cash equivalents at start of year 7,745 (4,737)
Balance at end of year 12,242 7,745
Comprised of:
Cash and bank balances / (bank overdraft) 12,242 7,745
ANNUAL REPORT 2021
PAG E 31
as at 31 August 2021
CONSOLIDATED STATEMENT
OF CASH FLOWS
For the year ended 31 August 2021

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 circumstances, 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.
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 systems
contracts (Note A1).
• Provisions for losses relating to contract assets (Note 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
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.
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 21 October 2021.
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 2021 and the comparative information presented in
these financial statements for the year ended 31 August 2020.
There have been no changes in accounting policy during the year.
SCOTT TECHNOLOGY LIMITED
PAG E 32
NOTES TO AND FORMING PART OF THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 August 2021

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.
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 AND INTERPRETATIONS
EFFECTIVE IN THE CURRENT PERIOD
The Group has adopted all mandatory new and amended
standards and interpretations. None had a material impact
on these financial statements.
STANDARDS AND 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.
Of these, amendments to NZ IAS 37 Onerous Contracts -
Cost of Fulfilling a Contract and amendment to NZ IAS 12
are assessed as relevant to the Group. The forthcoming
requirements of amendments to NZ IAS 37 requires the
onerous contract costs to include both incremental costs and
an allocation of other direct costs (overheads). Amendment
to NZ IAS 12 clarifies the deferred tax treatment of certain
transactions. The amendments will have no material impact
on 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.
RECLASSIFICATIONS
Segment reporting - products and sources of revenue
The Group's chief operating decision maker (the Board) and
its executives examine and manage the Group's performance
from a product and geographic perspective. In 2020, the
Group redefined its segments and Cash Generating Units
(CGUs) with how it managed its business and separated its
reporting segment of Asia and Europe into two separate
segments. In 2021, the Group redefined its sources of
revenue from contracts with customers.
As a result, the previously reported products from which the
Group derives its revenue of long term contracts, standard
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
Czech service team with one of their new service vans.
ANNUAL REPORT 2021
PAG E 33
For the year ended 31 August 2021

Belgium team testing a compact robot palletising unit.
equipment, and short term products and service work were
made to align with the new strategy document and how the
Group had redefined its principal products and sources of
revenue. The revised classifications for revenue sources are
by systems, products and services. The new classification is
included in Note A1 Revenue.
The main impact of this reclassification is a reallocation of
revenue between the old and new categories particularly,
standard equipment, and short term products and service
work. Comparative figures in Note A1 Revenue have been
restated in line with current year reporting.
GOODS AND SERVICES TAX AND 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.
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, monetary 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.
NON-GAAP FINANCIAL INFORMATION
The Group uses operating earnings / (loss) before interest,
tax, and depreciation and amortisation, impairment of
assets and restructuring expenses (operating EBITDA) and
operating earnings / (loss) before interest, tax, depreciation
and amortisation (EBITDA) to describe financial performance
as it considers these line items provide a better measure of
underlying business performance.
These non-GAAP measures are not prepared in accordance
with New Zealand Equivalent to International Financial
Reporting Standards (NZ IFRS) and may not be compatible to
similarly titled amounts reported by other entities.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 34

Policy
Revenue on fixed price 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.
Scope variations that may potentially lead to additional
revenue are only recognised when certain.
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 incremental costs to obtain a contract where the
contract period is less than 12 months is expensed
to the profit and loss under the practical expedient
provisions of IFRS 15.
The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C7).

Judgement
The estimation of percentage of completion relies on
the Directors estimating costs to complete systems
contracts. If the costs incurred to complete the
systems 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 – products
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.
• Bandsaw safety equipment under the “BladeStop” brand, primarily for use by meat processors.
• New and refurbished industrial robots under the “RobotWorx” brand.

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:
• Systems
• Products
• Services
Revenue recognition – systems
The Group designs, manufactures and sells customised automation and robotic systems for use in a wide range of
industries under fixed-price contracts. The contracts are often for periods in excess of twelve months although shorter
periods can also apply. These contracts are specific to each customer and the Group is restricted by these contracts in
its ability to redirect the products to another customer. The Group, through these contracts, has an enforceable right to
payment when agreed milestones are met for performance completed up to a point in time.

For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 35

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
Policy
Revenue under service contracts is recognised
at a point in time when the service is delivered
or performed, depending on the terms of the
contract.

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.
The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C7).

Revenue recognition – services
The Group 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).

The Group’s obligation to repair or replace faulty
products under the standard warranty terms is
recognised as a provision (see Note C7).
Engineering team finalising the design of an automated lamb boning room.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 36

For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 37
Systems Products Services Total
$’000s $’000s $’000s
$’000s
Australasia
manufacturing
Segment revenue61,417 33,527 19,782
114,726
Inter-segment revenue 516 (4,661) 1,479
(2,666)
Revenue from external customers61,933 28,866 21,261
112,060
Timing of revenue recognition
- At a point in time - 28,866 21,261
50,127
- Over time61,933 - -
61,933
61,93328,86621,261
112,060
Americas
manufacturing
Segment revenue8,702 12,593 11,914
33,209
Inter-segment revenue1,118 4,560 (1,639)
4,039
Revenue from external customers9,820 17,153 10,275
37,248
Timing of revenue recognition
- At a point in time - 17,153 10,275
27,428
- Over time9,820 - -
9,820
9,820 17,153 10,275
37,248
Europe
manufacturing
Segment revenue34,403 3,770 17,076 55,249
Inter-segment revenue (1,510) 82 160 (1,268)
Revenue from external customers32,893 3,852 17,236 53,981
Timing of revenue recognition
- At a point in time - 3,852 17,236 21,088
- Over time32,893 - - 32,893
32,893 3,852 17,236 53,981
China manufacturing
Segment revenue12,542 508 - 13,050
Inter-segment revenue (124) 19 - (105)
Revenue from external customers12,418 527 - 12,945
Timing of revenue recognition
- At a point in time - 527 - 527
- Over time12,418 - - 12,418
12,418 527 - 12,945
Total manufacturing
Segment revenue117,06450,39848,772
216,234
Inter-segment revenue - - -
-
Revenue from external customers117,064 50,398 48,772
216,234
Timing of revenue recognition
- At a point in time - 50,39848,772
99,170
- Over time117,064 - -
117,064
117,06450,39848,772
216,234
Year Ended 31 August 2021

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 38
Systems Products Services Total
$’000s $’000s $’000s $’000s
Australasia
manufacturing
Segment revenue35,259 18,730 21,854 75,843
Inter-segment revenue (3,340) (2,551) 1,483 (4,408)
Revenue from external customers31,919 16,179 23,337 71,435
Timing of revenue recognition
- At a point in time - 16,179 23,337 39,516
- Over time31,919 - - 31,919
31,91916,17923,33771,435
Americas
manufacturing
Segment revenue16,658 13,662 8,662 38,982
Inter-segment revenue2,975 1,536 (1,733) 2,778
Revenue from external customers19,633 15,198 6,929 41,760
Timing of revenue recognition
- At a point in time - 15,198 6,929 22,127
- Over time19,633 - - 19,633
19,633 15,198 6,929 41,760
Europe
manufacturing
Segment revenue46,272 6,033 13,443 65,748
Inter-segment revenue289 1,138 250 1,677
Revenue from external customers46,561 7,171 13,693 67,425
Timing of revenue recognition
- At a point in time - 7,171 13,693 20,864
- Over time46,561 - - 46,561
46,561 7,171 13,693 67,425
China
manufacturing
Segment revenue5,298 202 - 5,500
Inter-segment revenue76 (123) - (47)
Revenue from external customers5,374 79 - 5,453
Timing of revenue recognition
- At a point in time - 79 - 79
- Over time5,374 - - 5,374
5,374 79 - 5,453
Total
manufacturing
Segment revenue 103,487 38,627 43,959 186,073
Inter-segment revenue - - - -
Revenue from external customers103,487 38,627 43,959 186,073
Timing of revenue recognition
- At a point in time - 38,627 43,959 82,586
- Over time103,487 - - 103,487
103,487 38,627 43,959 186,073
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.
Revenue recognised included in the contract liability balance at the beginning of the period.
20212020
$’000s$’000s
Fixed price contracts for long term projects 15,409 15,571
There was no revenue recognised from performance obligations satisfied in previous periods on long term projects.
Unsatisfied long term fixed price project contracts
The following table shows unsatisfied performance obligations resulting from fixed price long term project contracts.
20212020
$’000s$’000s
Aggregate amount of the transaction price allocated to long term fixed price
project contracts that are partially or fully unsatisfied as at 31 August 2021
71,302 85,297
Management expects that 94% of the transaction price allocated to the unsatisfied contracts as of 31 August
2021 will be recognised as revenue during the next reporting period ($67 million) (2020: 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)). The remaining 6% ($4 million) (2020: 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.

20212020
$’000s$’000s
Rental income 74 217
Government grants related to research and development 625 67
COVID-19 wage subsidies 1,351 2,777
Gain on sale of property, plant and equipment68 328
2,118 3,389
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 39

The Group receives grant revenue related to research and development through its Australian subsidary Scott
Automation and Robotics Pty Ltd. Any tax credits claimed are offset against any tax expense.
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 recognised as revenue in FY21 was $1.4m (2020: $2.8m).
The Australian wage subsidy ended on 30 September 2020 and no further extension has been obtained.
(C) OPERATING EXPENSES
20212020
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
$’000s$’000s
Audit services:
Deloitte Limited
Group Audit 412 422
Other assurance services - -
Total remuneration for audit services 412 422
Non-audit services:
Deloitte Limited
Taxation services 261 66
Total remuneration for non-audit services 261 66
The auditor of the Group is Deloitte Limited.
20212020
$’000s$’000s
Other separately
disclosed expenses:
Directors’ fees 255 250
Superannuation scheme contributions5,762 7,009
Foreign exchange loss 1,706 -
Unrealised fair value losses on foreign exchange derivatives 521 82
Fair value losses on derivatives held as fair value hedges - 890
Unrealised fair value losses on interest rate swap contracts - -
and after crediting:
Foreign exchange gains - 450
Fair value gains on firm commitments - 1,036
Unrealised fair value gains on foreign exchange derivatives 132 146
Unrealised fair value gains on interest rate swap contracts 155 146
SCOTT TECHNOLOGY LIMITED
PAG E 40

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:
20212020
$’000s$’000s
Net profit / (loss) before tax 11,998 (23,446)
Income tax expense / (benefit) calculated at 28% (2020: 28%) 3,359 (6,565)
Non-deductible expenses / non-assessable income (642) 1,469
Research and development tax credits claimed (Australia) - (1,167)
(Over) / under provision of income tax in previous year (246) 569
Change in tax policy - (249)
Taxation expense / (benefit) 2,471 (5,943)
Represented by:
Current tax 2,034 548
Deferred tax 437 (6,491)
2,471 (5,943)
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 2021 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
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 41

Imputation credit account balances

2021
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 324 (161) - - 163
Other financial assets 97 (60) - - 37
Employee entitlements 998 424 - - 1,422
Provisions 3,832 (2,297) - - 1,535
Tax losses 2,793 1,836 - - 4,629
Leases 274 (12) - - 262
Inventories 358 334 - - 692
8,676 64 - - 8,740
Gross deferred
tax liabilities:
Property, plant and equipment (1,020) (564) - - (1,584)
Intangible assets (1,791) 63 - - (1,728)
(2,811) (501) - - (3,312)
5,865 (437) - - 5,428

At the reporting date, the Group has unused gross tax losses of $16.5m (2020: $10.0m) available to offset against
future profits. A deferred tax asset has been recognised in respect of $4.6m (2020: $2.8m) 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.
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
Leases 134 140 - - 274
Inventories (367) 725 - - 358
3,166 5,510 - - 8,676
Gross deferred
tax liabilities:
Property, plant and equipment (1,669) 649 - - (1,020)
Intangible assets (2,123) 332 - - (1,791)
(3,792) 981 - - (2,811)
(626) 6,491 - - 5,865
20212020
$’000s$’000s
Imputation credits available to shareholders - -
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.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 42

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.
Europe is reported as a single segment due to the
integrated nature of customers, management,
manufacturing, sales and financing activities across
Europe.
China is reported as a single segment due to the
integrated nature of customers, management,
manufacturing, sales and financing activities across
China.

Segment revenues and 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 as
these allocations would not result in a meaningful and comparable measure of profitability by segment.

Australasia
manufacturing
Americas
manufacturing
Europe
manufacturing
China
manufacturing UnallocatedTotal
2021
$’000s $’000s $’000s $’000s $’000s $’000s
Revenue 112,060 37,248 53,981 12,945 - 216,234
Segment profit 19,447 4,117 6,275 2,514 - 32,353
Impairment of assets - - - - - -
Restructuring provision - - - - - -
Depreciation and amortisation (3,792) (601) (3,991) (79) (373) (8,836)
Share of net surplus in joint ventures 796 - - - - 796
Interest revenue - - 3 99 - 102
Central administration costs - - - - (11,037) (11,037)
Finance costs (160) (194) (392) - (634) (1,380)
Net profit / (loss) before taxation 16,291 3,322 1,895 2,534 (12,044) 11,998
Taxation (expense) / benefit (1,112) (737) (501) (121) - (2,471)
Net profit / (loss) after taxation 15,179 2,585 1,394 2,413 (12,044) 9,527
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 43

Australasia
manufacturing
Americas
manufacturing
Europe
manufacturing
China
manufacturing UnallocatedTotal
2020
$’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 surplus / (deficit) in 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 (loss) / profit 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 (loss) / profit after taxation (6,940) 1,735 (4,425) 301 (8,174) (17,503)
Revenue reported above represents revenue generated from external customers. Inter-segment sales, which are
eliminated on consolidation, were $12.0 million for the year ended 31 August 2021 (2020: $5.0 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 industrial automation.
The Group’s revenue from external customers by industry is detailed below:

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:
20212020
$’000s$’000s
Appliances 19,597 20,058
Materials handling and logistics 68,158 51,528
Meat processing 36,706 29,013
Mining 58,383 33,006
Industrial automation 33,390 52,468
216,234 186,073
20212020
$’000s$’000s
New Zealand (country of domicile) 14,161 6,651
Australia and Pacific Islands 53,919 32,714
North America, including Mexico 56,348 56,142
South America 5,416 2,975
Asia 21,933 10,088
Europe 56,745 66,919
Russia and former states 4,696 7,035
Africa and Middle East 3,016 3,549
216,234 186,073
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 44

SECTION B: ASSETS
B1. TRADE DEBTORS
Policy
Trade 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.
20212020
$’000s$’000s
Australia 21,803 23,305
USA 16,634 17,904
Europe 29,033 33,548
China 907 578
68,377 75,335
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 13.1% of total Group sales (2020: Australasia manufacturing segment
and the mining industry 2.9%).
20212020
$’000s$’000s
Trade debtors 28,069 24,715
Allowance for expected credit losses (584) (1,286)
27,485 23,429
Credit losses in profit and loss
The allowance for expected credit losses recognised in the profit and loss during the year was $(0.7) million
(2020: $0.2 miilion).
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 to be used. The expected
credit loss model requires the Group to account for expected credit losses and changes in those expected credit losses at
The Group holds non-current assets in geographical areas outside of New Zealand, the
country of domicile. These non-current assets are held in the following locations:
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 45

each reporting date to reflect changes in credit risk since initial recognition of the financial assets. Under NZ IFRS 9
it is not 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 2021 was determined as follows;
Provision matrix
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 and FY21.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
AustralasiaAmericasChinaEuropeGroup
2021202020212020202120202021202020212020
$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s
Debtors
Current-30 days 10,615 5,820 4,848 2,875 2,053 703 5,510 3,769 23,026 13,167
31-60 days 195 2,435 524 254 - 186 350 2,450 1,069 5,325
61-90 days 217 1,209 135 286 - - 284 607 636 2,102
Over 91 days 795 1,512 1,006 477 124 61 1,413 2,071 3,338 4,121
Total debtors 11,822 10,976 6,513 3,892 2,177 950 7,557 8,897 28,069 24,715
Contract assets 15,177 16,679 781 436 3,487 1,780 5,042 6,486 24,487 25,381
Total assets 26,999 27,655 7,294 4,328 5,664 2,730 12,599 15,383 52,556 50,096
Allowance based on
expected credit loss
- - - - - - - - - -
Expected credit loss on
individually assessed
balances
(548) (1,132) (36) (37) - - - (117) (584) (1,286)
Credit loss allowance (548) (1,132) (36) (37) - - - (117) (584) (1,286)
SCOTT TECHNOLOGY LIMITED
PAG E 46

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,
with the majority being valued on a first-in-first-out
basis. Net realisable value represents the estimated
Policy
Contract assets are balances due from customers
under fixed price 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.
selling price for inventories, less all estimated costs of
completion and costs necessary to make the sale.
Provision for slow moving and obsolete inventories is
assessed by the Group as part of the ongoing financial
reporting. Obsolescence is assessed based on the
time the inventory has been held and the likelihood of
future sales of the inventory.
Contract liabilities relating to fixed price project contracts
are balances due to customers under fixed price 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.
20212020
$’000s$’000s
Raw materials 11,930 10,951
Work in progress 7,046 4,419
Finished goods 5,860 8,247
Provision for obsolete inventory (1,711) (935)
23,125 22,682
Judgement
Determining the level of provisions to include against
contract assets and liabilities requires an estimation
of the costs to complete for the fixed price contracts.
If the costs incurred to complete the contracts differ
from the estimates completed by management,
the Directors could be over or underestimating the
contract assets or contract liabilities.

Write downs
The cost of inventories recognised as an expense during the year includes $0.8 million (2020: $0.9 million) in
respect of write downs of inventory to net realisable value and write offs of obsolete inventory.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 47

SECTION B: ASSETS
B4. PROPERTY, PLANT AND 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 and vehicles 1 - 13 years
Freehold
land at cost
Freehold
buildings
at cost
Plant,
equipment and
vehicles at costTotal
$’000s $’000s $’000s $’000s
Gross carrying amount
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
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 cashflows are agreed upfront with the customer when the contract is signed. When a particular
milestone is reached, the 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 fixed price 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.
20212020
$’000s$’000s
Contract assets 24,487 25,381
Contract liabilities (17,214) (25,313)
Deferred revenue (5,525) (3,739)
1,748 (3,671)
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 48

Freehold
land at cost
Freehold
buildings
at cost
Plant,
equipment and
vehicles at costTotal
$’000s $’000s $’000s $’000s
Gross carrying amount
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 and
vehicles at costTotal
$’000s $’000s $’000s $’000s
Additions - 197 2,011 2,208
Disposals - (8) (3,102) (3,110)
Translation of amounts held in foreign currency - 80 (406) (326)
As at 31 August 2021 2,432 13,011 25,920 41,363
Accumulated depreciation and impairment
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
Disposals - (7) (2,869) (2,876)
Depreciation expense - 471 1,946 2,417
Translation of amounts held in foreign currency - 96 (308) (212)
As at 31 August 2021 - 3,521 20,101 23,622
Net book value
As at 31 August 2020 2,432 9,781 6,085 18,298
As at 31 August 2021 2,432 9,490 5,819 17,741
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.

For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
Gross carrying amount
20212020
$’000s$’000s
Balance at beginning of financial year 57,316 57,951
Translation of goodwill amounts held in foreign currency (2,145) (635)
Balance at end of financial year 55,171 57,316
ANNUAL REPORT 2021
PAG E 49

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.
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 and the impacts that Brexit and COVID-19 continue to have on Europe in the
current year. 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$3.8m 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 prior year. Sensitivity analysis has showed that if the improvement
in the net result from 2022 onwards is NZ$3.0m rather than the NZ$3.8m assumed and no subsequent recovery in
earnings is made, the model would result in nil headroom. Sensitivity analysis also showed that if the upper limit of
the discount rate range was used the model would result in nil headroom. The Board is satisified 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 manufacturing
• Americas manufacturing
• Europe manufacturing
• China manufacturing
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.
Europe is reported as a single cash-generating unit due to the integrated nature of customers, management,
manufacturing, sales and financing activities across Europe
China is reported as a single cash-generating unit due to the integrated nature of customers, management,
manufacturing, sales and financing activities across China.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 50

20212020
$’000s$’000s
Australasia manufacturing 23,678 24,370
Americas manufacturing 13,734 14,318
Europe manufacturing 17,404 18,278
China manufacturing 355 350
55,17157,316
Impairment model inputs by region
The recoverable amount of each cash-generating unit is determined based on a value in use calculation which uses
cashflow projections based on financial budgets and forecasts covering a five-year period. The inputs for each of
the CGU's have been listed below.
Australasia
20212020
Annual growth rate2.5%2.5%
Terminal growth rate2.0%2.0%
Pre-tax discount rate11.0%11.0%
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 2021 of 2.5% (2020: 2.5%) 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 (2020: 2.0%). The pre-tax discount rate calculated in 2021 is 11.0%
(2020: 11.0%).
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
Australisian cash-generating unit.
Americas
20212020
Annual growth rate2.4%2.0%
Terminal growth rate2.0%1.5%
Pre-tax discount rate10.6%10.6%
Americas cashflow 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 acquistions,
recent sales, forward work and sales piplelines 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 2021 of 2.4% (2020: 2.0%) reflects the effect of COVID-19 on
global sales over the five year period, albeit with a slight recovery in 2021. Cash flows beyond that five year period have
been extrapolated using a steady 2.0% p.a. growth rate (2020: 1.5%). The pre-tax discount rate calculated in 2021 is
10.6% (2020: 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.
Europe
20212020
Annual growth rate1.5%1.8%
Terminal growth rate1.0%1.3%
Pre-tax discount rate9.7%9.7%
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 2021 of 1.5% (2020: 1.8%) reflects
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
Goodwill has been allocated for impairment testing purposes to the cash-generating units:
ANNUAL REPORT 2021
PAG E 51

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 1.0% p.a. growth rate (2020: 1.3%). The pre-tax discount rate calculated in 2021
is 9.7% (2020: 9.7%).
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, Brexit and COVID-19. The key assumptions in the impairment test relate to
achieving forecast EBIT and the discount rate used.
China
20212020
Annual growth rate2.5%2.5%
Terminal growth rate2.0%2.0%
Pre-tax discount rate13.5%13.5%
China 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 2021 of 2.5% (2020: 2.5%)
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 (2020: 2.0%). The pre-tax discount rate calculated in
2021 is 13.5% (2020: 13.5%).
The China 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 China 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 2021
SCOTT TECHNOLOGY LIMITED
PAG E 52

Accumulated amortisation and impairment
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
Amortisation expense
767 1,333
- 6 - 26 192 19 2,343
Disposals
- -
- - (403) - - - (403)
Foreign translation difference
(148) (303)
- (2) - - (34) 1 (486)
As at 31 August 2021 2,082 6,384 - 44 - 112 451 39 9,112
Net book value
As at 31 August 2020 4,513 5,579 1,929 34 - 254 1,344 68 13,721
As at 31 August 2021 3,542 4,003 1,850 28 - 228 1,092 131 10,874
Conveyor
and
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
and otherTotal
$000’s$’000s$’000s$’000s$’000s$’000s$’000s$’000s$’000s
Gross carrying amount
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
Additions 16 - - - - - - 79 95
Disposals - - - - (403) - - - (403)
Foreign translation difference (368) (546) (79) (2) - - (94) 4 (1,085)
As at 31 August 2021 5,624 10,387 1,850 72 - 340 1,543 170 19,986
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, which 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 have now been sold with HTS-110 in August 2021.
• 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,
and is being amortised on a straight line basis over an estimated useful life at the time of purchase of ten years.

For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 53

20212020
$’000s$’000s
Impairment of Scott LED assets - 168
Impairment of Investment in Veritide Limited - 420
Impairment of Scott Dairy development asset - 3,370
Impairment of other development assets - 3,642
- 7,600
During FY20 the Group underwent a restructure and revised its corporate strategy. As a result, certain
development and other assets were deemed not in line with the updated strategy. A decision was taken to cease
work on these developments and other assets, and the assets fully impaired.
All of the impaired assets relate to the Australasia segment.
The recoverable amount of each asset after impairment was nil on the basis there was no alternative for sale or
residual value in the assets.
SECTION B: ASSETS
B7. RESEARCH AND 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
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 formed
and all the costs incurred will sit on the balance sheet
until a conclusion is reached. These projects have
a large portion research and development and are
undertaken with the view that the Group will be able
to realise future sales on these products.
At the end of each reporting period, an assessment
is made of these development assets for indicators
of impairment using the mix of external and internal
indicators included under NZ IAS 36. Where there are
indicators of impairment, these are expensed in the
period to which they relate.
SECTION B: ASSETS
B9. DEVELOPMENT ASSETS
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 54

SECTION C: CAPITAL AND FUNDING
C1. SHARE CAPITAL
Policy
Equity instruments issued by the Group are recorded at the proceeds received, net of issue costs.

2021202020212020
NumberNumber$’000s$’000s
Fully paid ordinary shares at beginning of financial year 78,311,032 77,544,752 81,822 80,073
Issue of shares under dividend reinvestment plan 354,803 766,280 879 1,749
Balance at end of financial year 78,665,835 78,311,032 82,701 81,822
All shares have equal voting rights and participate equally in any dividend distribution or any surplus on the
winding up of the Group.
The meat development assets relate to work being completed on producing systems to automated processing solutions
for pork and chickens. Work has also been completed on updating design drawings for a lamb processing system. All
meat development assets relate to the Australasia segment. These assets will be amortised over future sales.
In FY20, the decision was made to impair the value of the pork processing system due to the degree of complexity and
concerns about the commercial viability of this project. In 2021 discussions with commercial partners have progressed
and the development has been restarted. As the development is still ongoing, management has not reversed the
impairment booked in 2020 on this project. This project is also disclosed in E5.
Mining development assets relate to work completed in a large project to develop two products that will be able to be
sold as future products. All mining development assets relate to the Australasia segment. These assets will be amortised
over future sales.
Meat
development
assets
Mining
development
assetsTotal
$’000s $’000s $’000s
Gross carrying amountAs at 31 August 2019 6,786 - 6,786
Additions 226 - 226
Impairment (7,012) - (7,012)
Foreign translation difference - - -
As at 31 August 2020 - - -
Additions 1,576 634 2,210
Disposals - - -
Foreign translation difference - - -
As at 31 August 2021 1,576 634 2,210
Accumulated
depreciation and
impairment
As at 31 August 2020
- - -
Amortisation expense - - -
Foreign translation difference - - -
As at 31 August 2021 - - -
Net book valueAs at 31 August 2020 - - -
As at 31 August 2021 1,576 634 2,210
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 55

SECTION C: CAPITAL AND FUNDING
C2. EARNINGS AND NET TANGIBLE ASSETS PER SHARE
SECTION C: CAPITAL AND FUNDING
C3. BORROWINGS
Earnings per share from continuing operations
20212020
Cents per shareCents per share
Basic 12.3 (22.2)
Diluted 12.3 (22.2)
20212020
$’000s$’000s
Net profit / (loss) for the year used in the calculation of basic and diluted earnings
per share from continuing operations
9,624 (17,331)
Weighted average number of ordinary shares used in the calculation of basic and
diluted earnings per share from continuing operations
78,42178,129
Non-GAAP information
20212020
Net tangible assets per ordinary shareCents per shareCents per share
Basic31.220.2
Diluted31.220.2
20212020
Note$’000s$’000s
Ordinary shares at year end used in the calculation of net tangible assets
per ordinary share
C178,66678,311
Net tangible assets (net assets excluding goodwill, intangible assets, development assets
and deferred tax)
24,51215,838
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 2021
20212020
NZD$’000sNZD$’000s
Current 737 3,719
Non-current 10,183 7,466
Total term loans 10,920 11,185
SCOTT TECHNOLOGY LIMITED
PAG E 56

The carrying amounts of the Group's borrowings
are denominated in the following currencies:
2021202120202020
FacilityUtilisedFacilityUtilised
NZD$’000sNZD$’000sNZD$’000sNZD$’000s
New Zealand Dollar 18,000 8,000 14,634 6,635
United States Dollar 3,416 1,952 2,600 2,459
European Euros 1,848 748 3,426 1,933
Czech Koruna 730 220 378 158
23,994 10,920 21,038 11,185
Borrowing facilities
Borrowings shown above include bank debt and vehicle financing.
Borrowing facilities include bank overdraft, term loans, credit card facilities which are included in cash and cash
equivalents, 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 total of the ANZ Bank New
Zealand Limited current facility agreement for borrowings and working capital is NZ$23.4m (2020: NZ$19.7m), of which
NZ$13.5m was unutilised at 31 August 2021 (2020: NZ$5.2m).
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 assests 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 (2020: EUR 3.0m), of which EUR 2.6m was unutilised at 31 August 2021 (2020: EUR 1.9m).
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, (2020: EUR 3.8m), and a registered pledge on the bank guarantees line of 50% of any amount
exceeding EUR 3.5m (2020: EUR 3.5m).
20212020
Maturity profile of non-current portionNZD$’000sNZD$’000s
One to two years 10,039 5,266
Two to three years 78 1,824
Three to five years 66 376
10,183 7,466
Interest rates applicable to 31 August 2021 on the bank term loans ranged from 1.8% to 8.5% p.a.
(2020: 1.8% to 8.5% p.a.)
The Group also has access to the following
working capital facilities:
2021202120202020
FacilityUtilisedFacilityUtilised
NZD$’000sNZD$’000sNZD$’000sNZD$’000s
New Zealand Dollar 12,000 - 12,500 7,391
United States Dollar 356 - 1,484 -
European Euros 3,635 706 1,943 -
Czech Koruna 658 - 1,078 -
16,649 706 17,005 7,391
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 57

Other borrowing facilities include a US$0.3m, (2020: US$1.0m), line of credit from BB&T Bank not utilised at 31 August
2021 or 31 August 2020, and a CZK 10.0m, (2020: CZK 10.0 m), overdraft facility not utilised at 31 August 2021 or 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. This facility is not utilised at 31 August 2021, (2020: NZ$2.0m).
SECTION C: CAPITAL AND FUNDING
C4. TRADE CREDITORS AND ACCRUALS
SECTION C: CAPITAL AND 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.

20212020
$’000s$’000s
Trade creditors 20,261 15,143
Accruals 9,834 8,890
30,095 24,033
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 2021
SCOTT TECHNOLOGY LIMITED
PAG E 58

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
(2020: 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.
Right-of-use assets
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.
BuildingsPlantVehiclesGroup
$’000s$’000s$’000s$’000s
Cost
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
Additions 910 89 556 1,555
Disposals (2,104) (105) (1,265) (3,474)
Translation of leases held in foreign currency (612) (10) (157) (779)
As at 31 August 2021 14,294 353 2,869 17,516
Depreciation
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
Balance 31 August 2020 5,057 247 1,838 7,142
Depreciation expense 3,034 122 920 4,076
Disposals (1,856) (105) (968) (2,929)
Translation of leases held in foreign currency (212) (6) (78) (296)
As at 31 August 2021 6,023 258 1,712 7,993
As at 31 August 2020
11,043 132 1,897 13,072
As at 31 August 2021 8,271 95 1,157 9,523
Amounts recognised in profit and loss and cash flow statement
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
20212020
$’000s$’000s
Total cash outflow for leases 4,007 4,176
Interest expense on lease liabilities 509 662
Expense relating to short-term liabilities 496 448
As at 31 August 2021, the Group is committed to $0.5 million (2020: $0.2 million) for short-term leases.
ANNUAL REPORT 2021
PAG E 59

SECTION C: CAPITAL AND FUNDING
C6. 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, share based payment
arrangements, and short term incentives 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.
SECTION C: CAPITAL AND FUNDING
C7. 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 12 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.
20212020
$’000s$’000s
Balance at 1 September 1,874 1,546
Additional provisions (derecognised) / recognised (644) 328
Balance at 31 August 1,230 1,874
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 twelve months of balance date, however, this
timing is uncertain and dependent upon the actual level of after sales service work required.

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
20212020
$’000s$’000s
Lease
liabilities
Current liability 2,900 3,818
Non-current liability 7,388 10,008
Total 10,288 13,826
Maturity
analysis
Not later than 1 year 2,900 3,818
Later than 1 year and not later than 5 years 5,310 7,189
Later than 5 years 2,078 2,819
10,288 13,826
SCOTT TECHNOLOGY LIMITED
PAG E 60

SECTION C: CAPITAL AND FUNDING
C8. PERFORMANCE BASED COMPENSATION
Policy
For cash-settled performance based compensation,
a liability is recognised for the amount payable based
on on-target performance against set performance
measures. For long term incentives (which include
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 scheme and at the end of the
reporting period, after adjusting for any events that
affects the share price, such as capital reconstruction,
bonus issues or dividends. Accordingly, 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.

Details of arrangement
The Group has short term and long term incentives in place for certain executives and senior employees of the Group.
Short term incentives (STI) are annual performance based compensation linked directly to individual and company
performance while long term incentives (LTI) are payable to executives and senior employees who are members of the
LTI and remain in employment with the Group at the vesting dates (after 3 years). On the vesting date, those members
of the LTI 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.
At balance date there is a liability of $0.5 million (2020: $0.1 million) included in employee entitlements in the balance
sheet. The impact of the movement in the liability on profit for the year was a $0.4 million increase (2020: $0.1 million
decrease) and is included in the employee benefits expenses.
No shares, or share options, in Scott Technology Limited are issued under either incentive scheme.

SECTION C: CAPITAL AND FUNDING
C9. 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.

For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
20212020
$’000s$’000s
Balance at 1 September 7,699 4,236
Additional provisions expensed to the profit and loss during the year 4,069 3,599
Utilisation of provisions (3,806) (136)
Balance at 31 August 7,962 7,699
ANNUAL REPORT 2021
PAG E 61

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.
Changes in the fair value of derivatives that are
designated and qualify as fair value hedges are
recorded in profit or loss, together with any changes
in the fair value of the hedged asset or liability that are
attributable to the hedged risk. The gain or loss relating
to the effective portion of interest rate swaps hedging
fixed rate borrowings is recognised in profit or loss
within finance costs, together with changes in the fair
value of the hedged fixed rate borrowings attributable
to interest rate risk. The gain or loss relating to the
ineffective portion is recognised in profit or loss within
other gains / (losses).
If the hedge no longer meets the criteria for hedge
accounting, the adjustment to the carrying amount of
a hedged item for which the effective interest method
is used is amortised to profit or loss over the period to
maturity using a recalculated effective interest rate.
SECTION D: RISK MANAGEMENT
D1. FINANCIAL INSTRUMENTS
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.
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 2021
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
SCOTT TECHNOLOGY LIMITED
PAG E 62

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 2020.
The capital structure of the Group consists of equity attributable to equity holders of the parent, comprising issued
capital and retaiined earnings.
The Group has sufficient liquid assets to fund the operations of the business. 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, seperate 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
2021202020212020
$’000s$’000s$’000s$’000s
United States Dollar 14,003 17,275 7,003 8,218
Euros 11,404 13,624 8,219 10,559
Australian Dollar 7,126 8,739 14,117 6,714
Japanese Yen 50 - - 105
Great Britain Pound 587 309 28 64
Chinese Yuan 2,771 4,512 2,974 674
Canadian Dollar 37 - - -
Czech Koruna 662 365 1,382 5,239
Swedish Krona - - 143 -
Singaporean Dollar - - 645 165
36,640 44,824 34,511 31,738
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 63

Assets
20212020
$’000s$’000s
At fair value:
Fair value hedge of open firm commitments
324 728
Foreign currency forward contracts held as effective fair value hedges
375 162
Foreign exchange derivatives
1 146
700 1,036
Represented by:
Current financial assets 663 1,032
Non current financial assets 37 4
700 1,036
20212020
Liabilities
$’000s$’000s
At fair value:
Fair value hedge of open firm commitments 375 162
Foreign currency forward contracts held as effective fair value hedges 324 728
Foreign exchange derivatives 52 82
Interest rate swap contracts 659 814
1,410 1,786
Represented by:
Current financial liabilities
714 972
Non current financial liabilities
696 814
1,410 1,786
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 2021
SCOTT TECHNOLOGY LIMITED
PAG E 64

Outstanding forward foreign currency contracts
Average Fx RateNominal valueFair value
202120202021202020212020
$’000s$’000s$’000s$’000s
Sell US Dollars0.69210.6491 7,502 7,981 (11) 20
Sell Australian Dollars0.92810.9626 5,550 13,380 (173) (579)
Sell British Pounds-0.4914 - 417 - 11
Sell Canadian Dollars-0.8812 - 108 - -
Sell Euro-0.5719 - 1,070 - (17)
Buy Australian Dollars-0.9747 - 958 - 63
Buy Euro0.5689- 6,572 - 236 -
(AUD) Buy Euro0.6221- 5,452 - (52) -
25,076 23,914 - (502)

Outstanding forward foreign currency contracts maturity profile
Nominal valueFair value
2021202020212020
$’000s$’000s$’000s$’000s
0 to 3 months 7,906 9,984 (209) (206)
3 to 6 months 8,188 9,062 144 (173)
6 to 9 months 4,573 2,801 35 (47)
9 to 12 months 3,164 1,854 5 (72)
Greater than 12 months 1,245 213 25 (4)
25,076 23,914 - (502)
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.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 65

10% increase in
New Zealand Dollar
10% decrease in
New Zealand Dollar
2021202020212020
$’000s$’000s$’000s$’000s
United States Dollar (636) (625) 636 625
Euro (1,774) (253) 1,774 253
Australian Dollar 750 (198) (750) 198
Japanese Yen (4) 10 4 (10)
Great Britain Pound (51) (25) 51 25
Chinese Yuan 18 (384) (18) 384
Canadian Dollar (3) 11 3 (11)
Czech Koruna 65 487 (65) (487)
Swedish Krona 8 - (8)-
Singaporean Dollar 59 17 (59) (17)
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, 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 (2020: $5.7 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 and 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 reasonably possible 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
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.
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 66

10% increase in
New Zealand Dollar
10% decrease in
New Zealand Dollar
2021202020212020
$’000s$’000s$’000s$’000s
United States Dollar (636) (625) 636 625
Euro (1,774) (253) 1,774 253
Australian Dollar 750 (198) (750) 198
Japanese Yen (4) 10 4 (10)
Great Britain Pound (51) (25) 51 25
Chinese Yuan 18 (384) (18) 384
Canadian Dollar (3) 11 3 (11)
Czech Koruna 65 487 (65) (487)
Swedish Krona 8 - (8)-
Singaporean Dollar 59 17 (59) (17)
floating rate debt. The fair value of interest rate swaps at the reporting date is determined by discounting 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 2021.
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
202120202021202020212020
%%$’000s$’000s$’000s$’000s
5 years +2.70%2.70% 2,886 3,164 (659) (814)
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
2021 financial liabilities
Lease liabilities4.25% - 3,271 2,580 1,488 1,863 2,311 11,513
Term loans3.29% - 761 10,369 81 68 - 11,279
Deferred settlement on
purchase of business
- - 1,327 - - - - 1,327
Payable to joint ventures- - 108 - - - - 108
Trade creditors and accruals- 30,095 - - - - - 30,095
30,095 5,467 12,949 1,569 1,931 2,311 54,322
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 and accruals- 24,033 - - - - - 24,033
24,033 9,636 8,768 4,211 2,744 2,946 52,338
The Group has access to financing facilities, of which the total unused amount is $29.0 million at the balance
sheet date, (2020: $19.5 million). The Group expects to meet its other obligations from operating cash flows
and proceeds of maturing financial assets.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 67

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
2021
Financial assets at fair value through profit and loss
Fair value hedge of open firm commitments - 324 - 324
Foreign currency forward contracts held as effective fair value hedges - 375 - 375
Foreign exchange derivatives - 1 - 1
Financial liabilities at fair value through profit and loss
Fair value hedge of open firm commitments - (375) - (375)
Foreign currency forward contracts held as effective fair value hedges - (324) - (324)
Foreign exchange derivatives - (52) - (52)
Interest rate swap contracts - (659) - (659)
- (710) - (710)
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)
Fair value measurements recognised in the balance sheet
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 2021
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:
SCOTT TECHNOLOGY LIMITED
PAG E 68

20212020
$’000s$’000s
Balance at 1 September 1,881 2,385
Payment of deferred consideration (457) (514)
Movement in balances held in foreign currency (97) 10
Balance at 31 August 1,327 1,881
Current 1,327 1,376
Non-current - 505
Total Deferred Settlement 1,327 1,881
Made up of:
Transbotics 484 994
Normaclass 843 887
1,327 1,881
Deferred settlement
In the 2020 period expenditure was incurred from the restructuring of operations in Germany and New Zealand.
There were no restructuring costs incurred in the current year.
SECTION E: GROUP STRUCTURE AND SUBSIDIARIES
E1. ACQUISITION OF BUSINESS
SECTION E: GROUP STRUCTURE AND SUBSIDIARIES
E2. RESTRUCTURING EXPENSES
Rocklabs crusher gets final inspection before dispatch.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 69

SECTION E: GROUP STRUCTURE AND SUBSIDIARIES
E3. SUBSIDIARIES
20212020
%%
Parent entity
Scott Technology Limited31 AugustNew Zealandn/an/a
New Zealand trading subsidiaries
Scott Technology NZ Limited 31 AugustNew Zealand100100
Scott Automation Limited 31 AugustNew Zealand100100
Scott Technology USA Limited 31 AugustNew Zealand100100
QMT General Partner Limited 31 AugustNew Zealand9393
QMT New Zealand Limited Partnership31 AugustNew Zealand9292
Scott Technology Americas Limited 31 AugustNew Zealand100100
Scott Technology Europe Limited 31 AugustNew Zealand100100
New Zealand non-trading Subsidiaries
Scott LED Limited31 AugustNew Zealand100100
Rocklabs Limited 31 AugustNew Zealand100100
Overseas subsidiaries
Scott Technology Australia Pty Ltd 31 AugustAustralia100100
Applied Sorting Technologies Pty Ltd (**)31 AugustAustralia - 100
Scott Automation and Robotics Pty Ltd 31 AugustAustralia100100
Scott Systems International Incorporated 31 AugustUSA100100
Scott Systems (Qingdao) Co Limited 31 December (*)China9595
Scott Technology GmbH 31 AugustGermany100100
Scott Technology Belgium bvba 31 AugustBelgium100100
Scott Automation NV 31 AugustBelgium100100
FLS Group bvba 31 AugustBelgium100100
FLS Systems NV 31 AugustBelgium100100
Alvey do Brazil Comercio de Maquinas de Automacao 31 December (*)Brazil100100
Scott Automation a.s. 31 AugustCzech Republic100100
Scott Automation SAS 31 AugustFrance100100
Scott Automation Limited 31 AugustUnited Kingdom100100
Normaclass 31 AugustFrance100100
Rivercan S.A. 31 December (*)Uruguay100100
(*) Determined by local regulatory requirements.
(**) Liquidated in 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 70

SECTION E: GROUP STRUCTURE AND 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 interestCarrying value
2021202020212020
%%$’000s$’000s
Robotic Technologies Limited (i)New Zealand5050
348 267
Scott Technology Euro Limited (ii)Ireland - 50
- 66
Scott Technology S.A. (iii)Chile - 50
- 137
Rocklabs Automation Canada Limited (iv)Canada - 50
- 753
Balance at 31 August 348 1,223
(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 profit was $81,000 (2020: share of net deficit $68,000).
(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 $Nil (2020: share of net deficit $69,000).
STEL is no longer trading and was liquidated in March 2021. The Group incurred a loss on $72,000 upon liquidation.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 71

Carrying value of equity accounted investments:
20212020
$’000s$’000s
Balance at 1 September 1,223 1,372
Share of net surplus 796 149
Share of dividends - (298)
Divestment of interest in joint venture (1,671) -
Balance at 31 August 348 1,223
Summarised statement of comprehensive income of joint
ventures from continuing operations:
Joint ventures
20212020
$’000s$’000s
Income 9,894 5,072
Expenses (8,302) (4,774)
Net surplus and total comprehensive income 1,592 298
Group share of net surplus 796 149
Summarised balance sheets of joint ventures:
Joint ventures
20212020
$’000s$’000s
Current assets 1,882 3,153
Non-current assets 300 996
Current liabilities (1,486) (1,106)
Non-current liabilities - (801)
Net assets 696 2,242
Group share of net assets 348 1,121
(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 $37,000 (2020: share of net surplus $66,000). In August 2021, Scott Technology Limited sold its share in Scott
Technology S.A. to STG Holdings Limited. The Group incurred a loss of $137,000 for this transaction.
(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 profit was $677,000
(2020: $220,000) and RAC did not pay a dividend (2020: $298,000). In August 2021, the Group sold its 50% share
in Rocklabs Automation Canada Limited to STG Holdings Limited. The Group incurred a loss of $157,000 for this
transaction.
RTL does 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 2021
SCOTT TECHNOLOGY LIMITED
PAG E 72

20212020
Joint ventures
$’000s$’000s
Project work undertaken by the Group for RTL
197296
Administration, sales and marketing fees charged by the Group to RTL
198 214
Sales revenue received by RTL from the Group 558 389
Advance from RTL to Scott Technology (108) (426)
Interest charged by RTL to Scott Technology on advance 66 101
Administration fees charged by the Group to STEL
- -
Commission received by STEL from the Group - -
Advance from STEL to Scott Technology - 2
Project work undertaken by the Group for STSA
- 424
Advance from Scott Technology to STSA
- 765
Project work undertaken by the Group for RAC
- 3,305
Advance from Scott Technology to RAC
-
(5)
SECTION E: GROUP STRUCTURE AND SUBSIDIARIES
E5. RELATED PARTY TRANSACTIONS
Advances
Advances to/from joint ventures are unsecured, interest free and repayable on demand.
Directors
S J McLauchlan was a trustee of the Scott Technology Employee Share Purchase Scheme. All of the shares in this scheme
have been disposed in 2021 and the scheme has been liquidated. An amount of $0.1 million was recognised in the profit
and loss. The balance of the interest free advance owing to the scheme at 31 August 2021 was $Nil (2020: $7,694).
Substantial shareholders
JBS Australia Pty Ltd owns a 52.02% shareholding in Scott Technology Limited (2020: 51.9%). The Group has recognised
sales to JBS companies of $6.9 million (2020: $6.8 million), the majority of which are sales of BladeStop machines, and has
made purchases from JBS Companies of $Nil (2020: $Nil). As at balance date the Group had $1.0 million receivable from
JBS Companies (2020: $1.3 million).
The Group has a revolving credit facility with JBS. Refer to Note C3 for details.
In the 2020 period, the Group had been working on an development project with the intention of securing a contract
for the system with JBS in the USA. The Group had 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 FY20 impairment of
development assets balance in Note B9. In the 2021 period, negotiations have re-started for this project and work has
been re-commenced in this financial period.
Dividends paid to JBS amounted to $0.8 million (2020: $1.6 million). All dividends have been reinvested in Scott
Technology Limited under a dividend reinvestment plan.
Terms and conditions
Transactions relating to dividends, calls on shares and subscriptions for new shares are on the same terms and
conditions that applied to other shareholders.
Goods sold to related parties during the year are based on price lists in force and terms that would be available to third parties.
Outstanding balances are unsecured and repayable in cash.
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 73

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.

20212020
$’000s$’000s
Net profit / (loss) after tax for the year 9,527 (17,503)
Adjustments for non-cash items:
Depreciation and amortisation 8,836 9,898
Net gain on sale of property, plant and equipment
(68) (328)
Deferred tax
437 (6,491)
Share of net loss/(surplus) of joint ventures and associates
(796) (149)
Interest expense
1,380 1,431
9,789 4,361
Add/(less) movement in working capital:
Trade debtors
(4,056) 15,564
Other financial assets – derivatives
336 180
Sundry debtors
(2,595) 629
Inventories
(443) (123)
Contract assets
894 17,455
Contract liabilities
(6,313) -
Development assets
- 6,786
Onerous contract provision
263 3,463
Taxation payable
1,144 (126)
Trade creditors and accruals
6,062 (7,024)
Other financial liabilities – derivatives
(376) (1,724)
Employee entitlements
483 (2,726)
Provision for warranty
(644) 328
(5,245) 32,682
Movements in working capital disclosed in investing/financing activities:
Working capital relating to sale / (purchase) of business and non controlling interest
(97) 10
Movement in foreign exchange translation reserve relating to working capital
(548) 13
Net cash inflow from operating activities
13,426 19,563
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 74

20212020
$’000s$’000s
Net profit / (loss) after tax for the year 9,527 (17,503)
Adjustments for non-cash items:
Depreciation and amortisation 8,836 9,898
Net gain on sale of property, plant and equipment
(68) (328)
Deferred tax
437 (6,491)
Share of net loss/(surplus) of joint ventures and associates
(796) (149)
Interest expense
1,380 1,431
9,789 4,361
Add/(less) movement in working capital:
Trade debtors
(4,056) 15,564
Other financial assets – derivatives
336 180
Sundry debtors
(2,595) 629
Inventories
(443) (123)
Contract assets
894 17,455
Contract liabilities
(6,313) -
Development assets
- 6,786
Onerous contract provision
263 3,463
Taxation payable
1,144 (126)
Trade creditors and accruals
6,062 (7,024)
Other financial liabilities – derivatives
(376) (1,724)
Employee entitlements
483 (2,726)
Provision for warranty
(644) 328
(5,245) 32,682
Movements in working capital disclosed in investing/financing activities:
Working capital relating to sale / (purchase) of business and non controlling interest
(97) 10
Movement in foreign exchange translation reserve relating to working capital
(548) 13
Net cash inflow from operating activities
13,426 19,563
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 (2020: $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.
Key management personnel include the Directors of the Company, the Chief Executive and his direct reports.
The compensation of the executives, is set out below:
Detailed remuneration disclosures are provided in the remuneration statement on pages 93 to 94.
20212020
$’000s$’000s
Payment guarantees and performance bonds 30,370 26,272
Stock Exchange bond 75 75
Maximum contract penalty clause exposure 5,692 7,041
20212020
$’000s$’000s
Short term benefits – employees 1,924 667
Short term benefits – Executive Director 1,803 524
Post employment benefits 10 -
Long term benefits – employees 288 -
Long term benefits – Executive Director 129 -
4,154 1,191
Directors' remuneration255250
Reconciliation of movement in debt facilities
Balance at 1
SeptemberAdditionsDisposalsDrawingsRepayment
Translation
of foreign
exchange
Balance at 31
August
$’000s$’000s$’000s$’000s$’000s$’000s$’000s
2021
Bank loans 11,185 - - 10,119 (10,175) (209) 10,920
Lease liabilities 13,826 1,555 (563) - (4,007) (523) 10,288
25,011 1,555 (563) 10,119 (14,182) (732) 21,208
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
For the year ended 31 August 2021
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 75

SECTION F: OTHER DISCLOSURES
F4. COVID-19 IMPACT
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. This continues to be
the priority,
• Following all government regulations, including limiting access to sites,
• Enabling employees to work from home where required, possible and viable,
• Deferring all non-essential capital expenditure and limited all discretionary expenditure,
• Accessing available government support for employees globally,
• Suspending dividend payments in 2020,
• Securing an additional funding line from our majority shareholder, JBS Australia Pty Ltd, and
• Releasing and implementing 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 currrent banking facilities including 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.
While COVID-19 continues to provide uncertainties within the day to day operations of the Group,
the measures taken, together with the renewed strategy for future years, have resulted in a much
improved underlying performance for the year, increased balance sheet resilience and a stronger
cash position.
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
On 21 October 2021 the Board of Directors approved a final dividend of four cents per share to be
paid for the 2021 year. (2020: nil)

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 76

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 2021, 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 28 to 76, present fairly, in all material
respects, the consolidated financial position of the Group as
at, 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 $950,000 (2020: $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.
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 77
INDEPENDENT AUDITOR’S REPORT
For the year ended 31 August 2021

Key audit matter How our audit addressed the key audit matter
Recognition of Profit on Systems Contracts
The Group’s most significant revenue stream relates to
contracts for designing and manufacturing customised
automation and robotic systems for customers in various
industries (“systems contracts”). Revenue on systems
contracts 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 systems contracts
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 systems contracts during the year to
validate the costs and assess whether they have been applied to
contracts appropriately.
Goodwill Impairment Assessment – Europe cash generating unit
As at 31 August 2021, there is $55.2 million (2020: $57.3
million) of goodwill included on the balance sheet of the
Group as detailed in Note B5. The balance is held across
four cash generating units (CGUs). $17.4 million (2020:
$18.3 million) of the goodwill balance is allocated to the
Europe CGU.
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 CGUs 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 assessment of
goodwill relating to the Europe CGU as key audit matter
due to the significance of the balance to the financial
statements, the lower level of headroom relative to the
other cash generating units 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 of the Europe cash generating unit is compliant with NZ IAS
36. We focused on testing and challenging the suitability of the model
and reasonableness of the assumptions used by the Group in conducting
their impairment review.
Our procedures included, among others:
• Agreeing first year forecast cashflows to Board approved budgets;
• Challenging the reliability of the Group’s 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 Europe CGU;
• Assessing reasonabless 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.
We used our internal valuation experts to assist with evaluating the
models and challenging the Group’s key assumptions. The procedures of
the specialist included:
• Evaluating the appropriateness of the model;
• Testing the mathematical integrity of the model; and,
• Comparing the Group’s 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. We note that
this analysis resulted in additional disclosure in the financial statements
relating to the Europe CGU.
INDEPENDENT AUDITOR’S REPORT CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 78

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.

Andrew Dick,
Partner for Deloitte Limited
Auckland, New Zealand
21 October 2021
For the year ended 31 August 2021
INDEPENDENT AUDITOR’S REPORT CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 79

Pal 4.0 installed for a dairy product producer, Poland.
SCOTT TECHNOLOGY LIMITED
PAG E 80

mitigate the risk of insider trading by employees and
Directors. In addition to these policy and guidelines, more
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 pages 89-90 of the Annual Report.
PRINCIPLE 2
BOARD COMPOSITION
AND 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 2021
The Board composition reflects the majority shareholding
of the company, with 52.02% held by JBS Australia Pty
Limited. As at 31 August 2021, the Board comprises three
Independent Directors, three Directors representing JBS
CORPORATE GOVERNANCE
Scott Technology Limited (Scott) believes in the benefit
of strong corporate governance and the value it provides
for our shareholders, customers, employees 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/en/investor-centre/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
employees 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
STATEMENT OF
CORPORATE GOVERNANCE
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 81

Australia Pty Limited and one Executive Director. The Chair
of the Board is an Independent Director.
Stuart McLauchlanIndependent Chair
Derek ChargeIndependent Director
John ThormanIndependent Director
Brent EastwoodNon-executive Director representing
JBS Australia Pty Limited
Edison AlvaresNon-executive Director representing
JBS Australia Pty Limited
Alan ByersNon-executive Director representing
JBS Australia Pty Limited
John KippenbergerExecutive Director/CEO
John BerryAlternative non-executive Director rep-
resenting JBS Australia Pty Limited
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 Limited 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.
CORE SKILLS
Governance
Finance and accoun�ng
Risk management
Capital markets and M&A
Health and safety
Regulatory knowledge and experience
Human resources
GROWTH
Growth execu�on
Strategy
Opera�ons and 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.
With the prior approval of the Chair, each Director also has
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 82

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 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 FY21, and is working towards setting measurable
objectives to support its focus on diversity and inclusion. The
following initiatives are in place to support Scott’s diversity plan:
• Anti-bullying and harassment policy.
• Ethics hotline where employees can anonymously report
anything they believe to be unethical or discriminatory.
• Wellbeing plan that focuses on the long-term wellbeing
and engagement of our people.
• Employee surveys.
As at 31 August 2021, Scott had 622 employees of which 14%
were female and 86% were male (31 August 2020: 613 Scott
employees, 15% female, 85% 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 and 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.
20202021
As at 31 AugustFemaleMaleFemaleMale
Directors,
including the CEO
0808
Officers* 3425

For the year ended 31 August 2021
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 83

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 employees, 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.
BoardAudit and Financial

Risk CommitteeHealth and Safety

CommitteeGovernance,

Remuneration and Nominations Committee
Total Number of Meetings6362
Stuart McLauchlan6362
Brent Eastwood414-
Edison Alvares626-
Alan Byers 616-
John Berry (alternate)313-
John Thorman6362
Derek Charge6-62
John Kippenberger 636-
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
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/en/investor-centre/governance
All significant announcements made to the NZX and reports
issued are also posted on the Company’s website.
BOARD MEETINGS AND ATTENDANCE
Director attendance at Board and Committee meetings
during FY21 were as follows:
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 84

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 and 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 FY21, 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 emphases
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 93 of the Annual Report.
The total Director remuneration pool of $300,000 was last
approved by shareholders at the 2012 annual meeting. The
Board is responsible for the setting of individual Directors’
fees in accordance with the permitted pool. Any proposed
increases in non-executive Director fees and remuneration
are put to shareholders for approval.
In FY21, the approved remuneration for each role was as
follows:
For the year ended 31 August 2021
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2021
Fees
per annum
(NZ$)
Board chair
$105,000
Independent Director
$52,500
Audit and Financial Risk Committee Chair
$10,000
Audit and Financial Risk Committee Member
$5,000
Health and Safety Committee Chair
$10,000
Health and Safety Committee Member
$5,000
Governance, Remuneration and Nominations
Committee Chair
$5,000
Governance, Remuneration and Nominations
Committee Member
$2,500
No fees were paid to Directors representing JBS Australia Pty Ltd.
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.
ANNUAL REPORT 2021
PAG E 85

The short-term incentives are at-risk payments that reward
performance. They are designed to motivate and incentivise
senior employees 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 93 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 to 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 employees 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
3.47 as at the end of August 2021, (8.68 as at the end
of September 2020), below the industry benchmark for
specialised equipment manufacture of 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 2021
SCOTT TECHNOLOGY LIMITED
PAG E 86

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 2021, Deloitte was
the external auditor for Scott Technology Limited. Deloitte
was re-appointed under the Companies Act 1993 at the 2020
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 FY21 are detailed on page 40 of the Annual Report.
The last audit partner rotation was in 2021. 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 additional 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 employees, 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 2021
STATEMENT OF CORPORATE GOVERNANCE CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 87

STATUTORY INFORMATION
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 88
DIRECTORS’ INTERESTS
The Company maintains an Interests Register in accordance with the Companies Act 1993 and the Financial
Markets Conduct Act 2013.
No interest disclosures for the purposes of section140(1) were given during the year ended 31 August 2021.
The following are general disclosures of interest given by Directors of the company under section 140(2) of the
Companies Act 1993.
Stuart McLauchlan
ChairmanNew Zealand Sports Hall of Fame
Chairman
Analog Digital Instruments Ltd
("Group Instruments")
ChairmanOtago Community Hospice
ChairmanThe New Zealand Whisky Co. Ltd
ChairmanWoodworks Southern Ltd
ChairmanSkyline Healthcare Group Ltd
Partner/DirectorGS McLauchlan and Co Ltd
DirectorArgosy Property Ltd
DirectorCargill Hotel 2002 Ltd
DirectorDunedin Casinos Ltd
DirectorEBOS Group Ltd
DirectorScenic Hotel Group Ltd
DirectorOrari Street Properties Ltd
DirectorRosebery Holdings Ltd
DirectorB Pac NZ
DirectorSouth Link Education Trust
John Kippenberger
DirectorRobotic Technologies Limited
Brent Eastwood
Chief Executive
and Director
JBS Australia Pty Ltd and associated companies
DirectorAfoofa Development Pty Ltd
DirectorAndrews Meat Industries Pty Ltd
DirectorEnunga Enterprises Pty Ltd
DirectorPremier Beehive NZ
MemberBusiness Council of Australia
Derek Charge
DirectorCharge Advisory Ltd
DirectorLarooma Farm Holdings Pty Limited
DirectorSWS Lawyers Pty Ltd
DirectorWhisky Tasmania Ltd
DirectorHellyers Road Distillery Pty Ltd
John Thorman
DirectorCorporate Services New Zealand Ltd
Director
East Pacific Telecommunications Company
Ltd
DirectorTNX Ltd
DirectorFairfield TIR New Zealand Ltd
DirectorKitaki Nominees Ltd
DirectorKitaki Ventures GP Ltd
DirectorHeilig Assets Ltd
DirectorStarnow GP Ltd
DirectorCSNZ Trustees Ltd
DirectorProactive Software Ltd
DirectorP A S Holding Ltd
DirectorGAP II NZ GP Ltd
DirectorLiveops New Zealand Ltd
DirectorGlobal Outsourcing Team (NZ) Ltd
DirectorHealthlink Group Investments Ltd
DirectorKonnect Net Investments Ltd
DirectorPrimer Technologies New Zealand Ltd
DirectorBlackbird GP NZ Ltd
DirectorBlackbird Ventures NZ Ltd
Edison Alvares
DirectorJBS Australia Pty Ltd and associated companies
DirectorAndrews Meat Industries Pty Ltd Director
DirectorPremier Beehive NZ Director
John Berry

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

For the year ended 31 August 2021
STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 89
Director20212020
S McLauchlanIndirect/beneficial interest484,602479,639
Non-beneficial interest*-17,779
J KippenbergerLegal and beneficial interest73,23243,000
J ThormanIndirect/beneficial interest5,000-
D ChargeIndirect/beneficial interest5,000-
H EastwoodNon-beneficial interest**40,923,70040,612,443
E AlvaresNon-beneficial interest**40,923,70040,612,443
J BerryNon-beneficial interest**40,923,70040,612,443
* The non-beneficially held shares that were held by S McLauchlan were in his capacity as trustee for the
Scott Technology Employee Share Purchase Scheme. This scheme has been wound up in 2021.
** The non-beneficially held shares H Eastwood, E Alvares and J Berry are in their capacity as directors of
JBS Australia Pty Ltd, the majority shareholder of the Group.
SHARE DEALINGS OF DIRECTORS
The details of disclosures by Directors of acquisitions or disposals by Directors of relevant interests in ordinary
shares of the Company during the financial year ended 31 August 2021, in accordance with section 148(2) of the
Companies Act 1993, are shown below.
DirectorNature of relevant interest
Number of
shares acquired
(disposed)
Date
Consideration
paid /
(received) ($)
J Berry
Issue of ordinary shares pursuant to the Company’s dividend
reinvestment plan to JBS Australia Pty Ltd, being a person that acts
in accordance with the directions and instructions of the director in
relation to the Company’s ordinary shares (jointly with other directors
of JBS Australia Pty Ltd).
311,257*10 May 2021771,636
E Alvares
Issue of ordinary shares pursuant to the Company’s dividend
reinvestment plan to JBS Australia Pty Ltd, being a person that acts
in accordance with the directions and instructions of the director in
relation to the Company’s ordinary shares (jointly with other directors
of JBS Australia Pty Ltd).
311,257*10 May 2021771,636
H Eastwood
Issue of ordinary shares pursuant to the Company’s dividend
reinvestment plan to JBS Australia Pty Ltd, being a person that acts
in accordance with the directions and instructions of the director in
relation to the Company’s ordinary shares (jointly with other directors
of JBS Australia Pty Ltd).
311,257*10 May 2021771,636
S McLauchlan
Issue of ordinary shares pursuant to the Company’s dividend
reinvestment plan to Roseberry Holdings Limited, being a person over
whom the director has power and control.
2,18410 May 20215,415
Off-market disposal of ordinary shares as trustee of the Scott
Technology Employee Share Purchase Scheme in connection with the
winding up of that scheme.
(17,779)26 July 2021(56,535)
Power to exercise, or control the exercise of, a right to vote attached
to ordinary shares acquired through an off-market acquisition by the
registered holder with whom there is a personal relationship.
2,77926 July 20217,642
J Kippenberger
Issue of ordinary shares pursuant to the Company’s dividend
reinvestment plan.
23210 May 2021576
DIRECTORS’ RELEVANT INTERESTS IN SHARES AS AT 31 AUGUST 2021
In accordance with the NZX Listing Rules, as at 31 August 2021, ordinary shares in the Company in which each
Director has a relevant interest are specified in the table below.

STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 90
DirectorNature of relevant interest
Number of
shares acquired
(disposed)Date
Consideration
paid /
received ($)
J Kippenberger
(continued)
On-market acquisition of ordinary shares
10,00018 June 202125,889
On-market acquisition of ordinary shares
5,00022 June 202112,874
On-market acquisition of ordinary shares
2,90623 June 20217,487
On-market acquisition of ordinary shares
2525 June 202174
On-market acquisition of ordinary shares
2,06928 June 20215,333
On-market acquisition of ordinary shares
5,00029 June 202112,610
On-market acquisition of ordinary shares
5,0005-July 202112,750
J Thorman
Power to exercise, or control the exercise of, a right to vote attached to ordinary
shares acquired through an off-market acquisition by the registered holder with
whom there is a personal relationship.
5,00026 July 202113,750
D Charge
Power to exercise, or control the exercise of, a right to vote attached to ordinary
shares acquired through an off-market acquisition by the registered holder with
whom there is a personal relationship.
5,00026 July 202113,750
* The non-beneficially held shares H Eastwood, E Alvares and J Berry are in their capacity as directors of
JBS Australia Pty Ltd, the majority shareholder of the Group.
USE OF COMPANY INFORMATION
The Company received no notices from Directors wishing to use Company information received in their capacity as
Directors, which would not have ordinarily been available.
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
Section 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 2021.
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
2021 are included in the relevant bandings for remuneration on page 94.
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 2021 are as follows:
Subsidiary companyDirectors
Scott Technology NZ Limited Stuart McLauchlan, John Kippenberger, Cameron Mathewson, Chris Steedman*
Scott Automation Limited Stuart McLauchlan, Cameron Mathewson, Chris Steedman*
Scott Technology USA Limited Cameron Mathewson, Kate Rankin, Chris Steedman*
QMT General Partner Limited Cameron Mathewson, Kate Rankin, Chris Steedman*
QMT New Zealand Limited PartnershipQMT General Partner Limited
Scott Technology Americas Limited Cameron Mathewson, Kate Rankin, Chris Steedman*

STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 91
Subsidiary companyDirectors
Scott Technology Europe LimitedCameron Mathewson, Kate Rankin, Chris Steedman*
Scott LED LimitedCameron Mathewson, Kate Rankin
Rocklabs Limited Cameron Mathewson, Kate Rankin, Chris Steedman*
Scott Technology Australia Pty Ltd Twain Drewett, Steve Russell, Chris Steedman*
Scott Automation and Robotics Pty Ltd Twain Drewett, Steve Russell, Kate Rankin, Chris Steedman*
Scott Systems International Incorporated Tony Joyce, Kate Rankin
Scott Systems (Qingdao) Co Limited Chris Hopkins, Henry Pan
Scott Automation GmbH Aaron Vanwalleghem BV
Scott Technology Belgium bvba Aaron Vanwalleghem BV, Cameron Mathewson, Jonas Vromant, MEL-ADMI
Consulting CommV*
Scott Automation NV Aaron Vanwalleghem BV, Cameron Mathewson, Jonas Vromant, Chris Hopkins*
FLS Group bvba Aaron Vanwalleghem BV, Kate Rankin, Jonas Vromant, Richard Jenman*
FLS Systems NV Aaron Vanwalleghem BV, Kate Rankin, Frederic Hermier, Richard Jenman*
Alvey do Brazil Comercio de Maquinas de Automacao N/A
Scott Automation a.s. Aaron Vanwalleghem BV, Kate Rankin, Pavel Cevela, Vladimir Stoklas, Chris
Hopkins*, Richard Jenman*
Scott Automation SAS Aaron Vanwalleghem BV, Jonas Vromant, Chris Hopkins*, Richard Jenman*
Scott Automation Limited Aaron Vanwalleghem BV, Kate Rankin, Chris Hopkins*, Richard Jenman*
Normaclass s.a.s.Aaron Vanwalleghem BV
Rivercan S.A. N/A
* ceased to hold office during the period.
Other than as set out in the Directors Interest table above, no interest disclosures for the purposes of
section 140 (1) were given by any director of a subsidiary during the year ended 31 August 2021.
TWENTY LARGEST SHAREHOLDERS AS AT 31 AUGUST 2021
SUBSIDIARY COMPANY DIRECTORS CONTINUED
RankRegistered shareholderNumber of shares
% of total shares
in the company
1JBS Australia Pty Limited 40,923,700 52.02
2Oakwood Securities Limited 5,500,000 6.99
3Russell John Field and Anthony James Palmer 2,000,000 2.54
4Accident Compensation Corporation 1,991,807 2.53
5JBWERE (NZ) Nominees Limited 1,641,981 2.09
6Leveraged Equities Finance Limited 1,634,344 2.08
7Custodial Services Limited 1,061,630 1.35
8Citibank Nominees (NZ) Ltd 918,372 1.17
9Forsyth Barr Custodians Limited 860,517 1.09
10BNP Paribas Nominees NZ Limited Bpss40 801,799 1.02
11Jack William Allan and Helen Lynnette Allan 535,000 0.68
12Forsyth Barr Custodians Limited 510,741 0.65
13Jarden Custodians Limited 479,982 0.61
14New Zealand Depository Nominee 422,719 0.54
15Wairahi Investments Limited 410,000 0.52
16Rosebery Holdings Limited 406,277 0.52
17FNZ Custodians Limited 329,781 0.42
18Gmh 38 Investments Limited 300,000 0.38
19Robert Wong and Cristein Joe Wong 237,042 0.3
20Public Trust Forte Nominees Limited 228,267 0.29

STATUTORY INFORMATION CONTINUED
For the year ended 31 August 2021
SCOTT TECHNOLOGY LIMITED
PAG E 92
SPREAD OF SHAREHOLDERS AS AT 31 AUGUST 2021
As at 31 August 2021, there were 78,665,835 ordinary shares in the Company on issue which were held as follows:
Range
Number of ordinary
security holders% of issued capital
1-1,0007830.48
1,001-5,00011693.88
5,001-10,0004033.8
10,001-50,0003759.2
50,001-100,000292.68
Greater than 100,0003079.96
Total Shareholders2,789100%
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 according to the Company’s records. As at 31 August 2021, details of the substantial product
holders of the Company and their relevant interests in the Company’s ordinary shares are as follows. As at the balance date
(31 August 2021) there were 78,665,835 ordinary shares in the Company on issue.
Name of substantial
product holder
Number of ordinary voting
securities as at 31 August 2021% of issued capital
JBS Australia Pty Ltd40,923,70052.02
Oakwood Securities Limited5,500,0006.99
DONATIONS
The Group made no donations during the year (2020: $0).
CREDIT RATING
The Company currently does not have a credit rating.
WAIVERS FROM NZX LISTING RULES
No waivers were granted by NZX or relied on by the Company during the 12 month period ended 31 August 2021.
Automated order preparation system for the logistics
facility of the French army (ELOCA Châtres).

REMUNERATION
For the year ended 31 August 2021
ANNUAL REPORT 2021
PAG E 93
DIRECTORS’ REMUNERATION
Non-Executive Directors received the following Directors’ fees from the Company as follows:
Non-Executive Director
Directors’ Fees FY21
NZ$’000s
Directors’ Fees FY20
NZ$’000s
S McLauchlan (Chair) 125 123
J Thorman 70 68
D Charge 60 59
Total 255 250
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:
Salary and
benefits
Short term
incentive
Long term
incentive
Total
remuneration
Chief Executive Officer remunerationNZ$’000sNZ$’000sNZ$’000sNZ$’000s
FY21
John Kippenberger* 753 1,050 129
1,932
FY20
John Kippenberger (29 November 2019 to 31 August 2021) 524 --
524
Chris Hopkins

(1 September 2019 to 28 November 2019) 104 --
104
* The short term incentive includes a FY20 bonus that wasn't approved at the signing of the FY20 accounts.

SCOTT TECHNOLOGY LIMITED
PAG E 94
Salary rangeNumber of employees
$100,000-$110,00048
$110,001-$120,00031
$120,001-$130,00022
$130,001-$140,00026
$140,001-$150,00018
$150,001-$160,00016
$160,001-$170,00010
$170,001-$180,00012
$180,001-$190,00011
$190,001-$200,0003
$200,001-$210,000
4
Salary rangeNumber of employees
$210,001-$220,000
7
$220,001-$230,0004
$230,001-$240,0004
$240,001-$250,0005
$260,001-$270,0002
$270,001-$280,0002
$280,001-$290,0002
$310,001-$320,0001
$350,001-$360,0001
$400,001+
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 year ended
31 August 2021 totalling at least NZ$100,000. This remuneration includes redundancy payments but excludes any
long-term incentives that have not been triggered.
REMUNERATION CONTINUED
For the year ended 31 August 2021
The Group operates in Australasia, Europe, China and the United States where market remuneration
levels differ. Of the employees noted in the table above, 70% are employed by the Group outside
New Zealand. The offshore remuneration amounts are converted into New Zealand dollars.

ANNUAL REPORT 2021
PAG E 95
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 2021 and the results of their operations and cash flows for the year
ended 31 August 2021.
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 2021.
These financial statements are dated 21 October 2021 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 and Independent Director
John Kippenberger
Chief Executive Officer
For the year ended 31 August 2021

SCOTT TECHNOLOGY LIMITED
PAG E 96
PARENT COMPANY
Registered office
Scott Technology Limited
630 Kaikorai Valley Road
Dunedin 9011
New Zealand
+64 3 478 8110
Mailing address
Scott Technology Limited
Private Bag 1960
Dunedin 9054
New Zealand
Website
www.scottautomation.com
Chairman and 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
New Zealand
Andrew Arnold
+64 21 670 975
a.arnold@scottautomation.com
Australia
Cameron Mathewson
+64 27 705 6457
c.mathewson@scottautomation.com
China
Cathy Smart (Zhang)
+86 186 6168 1911
c.smart@scott.co.nz
Europe
Aaron Vanwalleghem
+32 473 477 590
a.vanwalleghem@scottautomation.be
Americas
Tony Joyce
+1 740 692 5086
t.joyce@scottautomation.com
PROFESSIONAL SERVICES
Share registry
Link Market Services Ltd
PO Box 91976
Auckland 1142
+64 9 375 5998
+64 3 375 5990 (fax)
enquiries@linkmarketservices.co.nz
Bankers
ANZ Bank New Zealand Ltd
Solicitors
Gallaway Cook Allan
Auditor
Deloitte Limited
DIRECTORY

Rocklabs Certified Reference Materials team producing samples.

---

2021
FULL YEAR RESULTS
INVESTOR PRESENTATION
21 October 2021

CONTENTS
Scott 2025 Strategy Update3-4
FY21 Results Summary 5-9
Revenue by Operating Region10
Forward Work Trend11
Service Revenue Growth Strategy 12
Revenue by Industry13
Authentic Customer Partnerships14-16
Industry Outlook17-22
Our People & Planet23-26
FY22 Outlook27
2
PRESENTED BY
John Kippenberger
Chief Executive Officer
Cameron Mathewson
Chief Financial Officer
“A year into the new strategy, and 18 months into the
pandemic, Scott Technology, one of New Zealand’s few
truly global companies begins to soar.”
_
John Kippenberger
Chief Executive Officer

ENGINEERING SCOTT TO HIGH PERFORMANCE
OUR PROGRESS
•Authentic Customer Partnerships: Secured significant repeat
business across all sectors e.g. Rio Tinto, Alliance, Little Swan,
Bosch, Candy Haier, McCain, Whirlpool. $216.2m revenue in FY21.
•Operational Excellence: Delivered sustainable margin
improvement across all regions +190% increase on FY20.
•Leading Edge Technology: Significant growth across all standard
products.
•One Global Team: Significant decrease in lost time injuries, and
continued focus on employee retention, development and wellness
reduction in lost time injuries from 11 in FY20 to 4 in FY21.
•Robust Global Platforms: The centre of excellence (COE) strategy is
helping build clarity and confidence across the Group. Forward work of
$128m.
3
Scott 2025

GROWTH STRATEGY
ANZEUUSCN
MEAT PROCESSING
GROW
●●●
GROW
●
LAUNCH
●●
-
GROW
●
MINING
MAINTAIN
●●
-GROW
●
-
MATERIALS HANDLING
LAUNCH
●
GROW
●●
LAUNCH
●●
-
APPLIANCES
MAINTAIN
●
LAUNCH
●
GROW
●●
GROW
●
INDUSTRIAL AUTOMATION
GROW
●●
-GROW
●
-
Centre of Excellence
SystemProduct
Service
LIFE CYCLE: Launch, Grow, Maintain, Exit
4

$35M
FY21 PERFORMANCE SNAPSHOT
5
$216.2M
+16% | FY20 $186.0M
REVENUE
23%
+190% | FY20 8%
MARGIN PERCENTAGE
+289% | FY20 ($11.6M)
EBITDA
$22.1M
FORWARD WORK*
$84M
SYSTEMS
PRODUCTS
SERVICE
$9M
FY20
REVENUE MIX
54/23/23
SYSTEMS
PRODUCTSSERVICE
-4% | FY19 $225.1M
* ‘Forward Work’ represents contracted activity. It is
not an indicator of revenue over a set period of time
+9% | FY19 21%
+10.3% | FY19$20.0M
DIVIDENDS PER SHARE (Cents)
EARNINGS PER SHARE (Cents)
FY21 6.0 |FY20 nil |FY19 8.0
FY21 12.3 | FY20 (22.2) | FY19 11.3
9%
+67%
+80%
STRATEGY 40/30/30

6
FY21 HEALTH & SAFETY PERFORMANCE
LTI
MTI
First Aid
Injuries
EP&D
/ Near Miss
Hazards Reported
Management
Conversations
FY20
Fatality
FY21
HEALTH & SAFETY
0
4
1
21
44
486
143
0
11
0
22
38
51
15
Forward indicators of hazard
reporting and management
conversations underpin a
maturing safety culture.

FY21 OPERATING ENVIRONMENT
•Multiple large contract wins support our strong post
COVID-19recovery. GE Appliances, McCain, Alliance,
Bosch, Whirlpool, Little Swan, Thomas Foods International.
•Rocklabsand BladeStopproduct business showing
continued growth and strong margin performance.
•Streamlined operating cost structure following last years
restructuring is contributing to increased margins.
•As globaldemand for automation continues to grow
strongly, the key priority for our team is to remain focused
and committed to our core areas of proven expertise,
avoiding unknown areas of risk. This is the central
underlying theme of Scott 2025.
7
•Focus on Health & Safety across the group continues to
build positive momentum which is reflected in a large
decrease in lost time injuries. Increased emphasis on
employee wellbeing with introduction of mental health
education and initiatives.
•COVID-19
-Travel restrictions have continued to challenge how
Scott operates, resulting in new, agile ways of working
and commissioning projects.
-Wide spread global supply chain delays on parts and
products are effecting our customers timelines.
-Global pressure on shipping industry creating inbound
and outbound risk.

FY21 RESULTS SUMMARY TABLE
8
ResultsSnapshot $M
FY21FY20FY19
Revenue216.2186.1225.1
EBITDA22.1(11.6)20.0
Non-trading adjustments0.011.9*0.0
Normalised EBITDA22.10.220.0
Net ProfitAfter Tax9.5(17.5)8.6
Net Cash / (Debt)1.3(3.4)(16.4)
Net Cash / (Overdraft)12.27.7(4.7)
Bank Loans(10.9)(11.2)(11.7)
Operating Cash Flow13.419.60.7
* FY20 Non trading adjustments related to restructuring and impairments

OPERATIONAL EXCELLENCE
9
TOTAL GROUP GROSS MARGIN %

1

1

1

1

1

1

1

1

1
•Stronger margins driven by sales mix
and improved cost structure’

REVENUE BY OPERATING REGION
10
•Strong rebuild in the Australasia
work program, largely driven by
mining and meat sectors.
•North America lead-indicators of
inbound interest and recent
contracts starting to show
turnaround.
•Europeconstrained by COVID-19
restrictions, however, promising
rebuild of forward work underway.
•China is experiencing strong
demand in appliance systems.
OPERATING REVENUE $M

FORWARD WORK TREND
11
FORWARD WORK $M
•Mix evolving towards products and
service in line with our Scott 2025
Strategy.
•This shift towards repeatable products
and increased services will see
subsequent drive in margin growth
•24% uplift in forward work compared
to prior year

SERVICE REVENUE GROWTH STRATEGY
12
•Annual service revenue as a
percentage of installed machine base.
•Focusing on three key service growth
areas, lamb automation, mining and
BladeStop, we can see the additional
delivery of +$13m revenue per
annum.

REVENUE BY INDUSTRY
13

e
a
t

r
o
c
es
s
i
n
g

i
n
i
n
g
A
p
p
l
i
a
n
c
e
s

n
d
u
s
tr
i
a
l

A
u
t
o
m
a

o
n

a
t
e
r
i
a
l
s

a
n
d
li
n
g

o
g
i
s

c
s
REVENUE BY INDUSTRY
•Global demand from the protein
industry translates to growth in our
meat processing business.
•Mining grows on the back of Rocklabs
product and large one-off automated
systems.

AUTHENTIC CUSTOMER PARTNERSHIPS
14
MATERIALS HANDLING
AND LOGISTICS
INDUSTRIAL
AUTOMATION
APPLIANCES
MINING
MEAT

AUTHENTIC CUSTOMER PARTNERSHIPS
15
Poultry trussing system
BladeStopsafety saws
Dunedin, New Zealand
Sydney, Australia
SCOTT FACILITY
CUSTOMER SITE
CUSTOMER
SCOTT SYSTEM/PRODUCT
BladeStopsafety saws
Lamb primal system
Warehouse automation system
Dunedin, New Zealand
Deerlijk, Belgium
Sydney, Australia
Automated laboratory system
Autonomous guided vehicle
Automated refuelling system
Charlotte, North Carolina
Sydney, Australia
Laboratory equipment & partsDunedin, New Zealand
Sydney, Australia

GLOBAL SYSTEM/PRODUCT FLOW
16

17
INDUSTRY OUTLOOK

INDUSTRY OUTLOOK
18
MEAT
•Strong, ongoing demand for our industry leading BladeStop safety
saw product continues, and have now sold over
1200 units globally.
•In the system space, we remain focused on selling more lamb
primal systems into the ANZ meat sector and rolling out the new
poultry trussing systems across Pilgrims in the US and across other
relevant markets (UK and Australia most notably).

19
Poultry Trussing System -Full Video available on YouTube[00:53 -01:40]

INDUSTRY OUTLOOK
20
MINING
•Our mining products business Rocklabsand Reference Materials
continue to trade well across virtually all of its global markets.
•This strength in demand is a testament to the global reputation of
the Rocklabsbrand, a talented production and sales team, combined
with the continuing strong global precious metal prices driving
capacity globally.
•The systems-end continues to focus on strategically and thoughtfully
expanding the semi-automatedoffering of our laboratory range to
bring speed and efficiency to mine operators and independent
laboratory managers.
•We are also making sound progress in the rollout of our Scott
Robofuelsystems.

INDUSTRY OUTLOOK
21
APPLIANCES
•While this sector is seeing positive investment in capacity from the
world’s largest whitegoods manufacturers, we are experiencing
increasing competition from the automation solution providers from
the likes of Italy.
•Our focus remains on providing quality design options towards the
premium-end of the market, while driving for competitive pricing
without exposing Scott to unacceptable risk.
•Our China business will continue to drive local growth and support
global projects when appropriate from our competitive design and
build platform in Qingdao, China.

INDUSTRY OUTLOOK
22
MATERIALS HANDLING & LOGISTICS
•We have seen ongoing pressure on global distribution and supply
chains as a result of COVID-19 and believe this will continue in its
aftermath.
•This in turn drives the ongoing demand for material handling
equipment offered by Scott and is particularly prevalent in areas such
as the e-commerceand essential grocery goods sectors.
•In the AGV part of the sector, the automotive industry continues to be
one of the largest adopters of unmanned fork-trucks, due to the
autonomy and efficiency they bring to daily operations.
•With our strong relationships amongst the global tyre manufacturers,
as an example, we see a positive future for our United States based
AGV business, Transbotics.

23
OUR PEOPLE & PLANET

CONTINUED IMPACT OF COVID-19
•Our first priority remains the safety and
wellbeing of our teams.Long periods of
employee isolation during lock-downs and
pressures while commissioning systems
in remote locations remain our key
watch areas.
•Strong focus on protecting employees
during travelas the world slowly begins to
open up to international travel.
•Increased interest in automated solutions
specifically in the meat processing and food
and beverage sectors.
•Deferred capital investment is resuming,
signalling a strong recovery in several of our
regions.
•Travel restrictions continue to impact how
we commission and install projects.
24
Fully
Vaccinated
Partially
Vaccinated
CzechRepublic
56%-
Belgium
95%-
Germany
65%-
France
73%-
America
32%-
China
94%-
NewZealand
57%88%
Australia
73%90%
Employee vaccination rates

LEADING A SUSTAINABLE FUTURE
25
•Passionate about pursing a long-term sustainable future together
with our customers, shareholders and wider stakeholders.
•We recognise that our collective responsibility extends beyond
commercial outcomes, and includes our relationship with the planet,
and our people.
•We are committing to a series of long term Environmental, Social and
Governance (ESG) goals. Thefoundations of ourstrategy are People,
Place and Purpose.
“Our focus on Sustainability ensures that Scott is
partnering with employees, customers, and suppliers
that share our values.”
_
Aaron Vanwalleghem
Regional Director -Europe

LEADING A SUSTAINABLE FUTURE
26
OUR SUSTAINABILITY FRAMEWORK

ase en ins
AT S T S
lobal recruitment
mployee health and safety
ender di ersity

ameron at e son
AT S T S
inancial performance

aron an a e em
AT S T S
Sustainable procurement
n ironmental management
•People is about building an engaged, diverse, and
talented workforce. It focuses on retention and
recruitment which is a priority for our people-led
business. This is supported by a commitment to
maintaining a safe and inclusive working
environment for all our people.
•Purpose refers to the recipients of our solutions
and services –Scott’s customers and shareholders.
It covers the importance of building meaningful
customer relationships, and highlights Scott’s
commitment to growing a profitable business
focused on long term growth and positive
shareholder return.
•Place out ines t e or anisation’s commitment to
the environment and ensures it develops and
encourages sustainable business practices

LOOKING FORWARD
•Forward work continues to solidify.
•Product business has firm order books at healthy margins
(BladeStop / Rocklabs).
•Continued focus on maintaining efficient cost structures that
resulted from last years right sizing.
•New business continues to be sourced with improved margin
and in line with strategy.
•Improved ability to service and commission projects pending
progress with vaccines.
•Significant opportunity to increase service revenue on
the existing equipment installed base.
•Industry dynamics in all sectors and geographies continue to
be strong.
27

28
www.scottautomation.com
THANK YOU

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019

Results for announcement to the market
Name of issuer Scott Technology Ltd
Reporting Period 12 months to 31 August 2021
Previous Reporting Period 12 months to 31 August 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$216,234 16%
Total Revenue $219,148 16%
Net profit/(loss) from
continuing operations
$9,527 154%
Total net profit/(loss) $9,527 154%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.04
Imputed amount per Quoted
Equity Security
Nil
Record Date 9 November 2021
Dividend Payment Date 22 November 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.312 $0.202
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 2021 which accompanies this information.
Authority for this announcement
Name of person

authorised
to make this announcement
Cameron Mathewson, Chief Financial Officer
Contact person for this
announcement
Cameron Mathewson
Contact phone number 03 478 8110
Contact email address c.mathewson@scottautomation.com
Date of release through MAP

21/10/2021

Audited financial statements accompany this announcement.

---

Distribution Notice

Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Scott Technology Limited
Financial product name/description Ordinary shares
NZX ticker code SCT
ISIN (If unknown, check on NZX
website)
NZSCTE0001S3
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly

Half Year Special
DRP applies X
Record date 9 November 2021
Ex-Date (one business day before the
Record Date)
8 November 2021
Payment date (and allotment date for
DRP)
22 November 2021
Total monies associated with the
distribution
1

$3,146,633.40
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04000000
Gross taxable amount
3
$0.04000000
Total cash distribution
4
$0.04000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

0%
Imputation tax credits per financial
product
$0.00000000
Resident Withholding Tax per
financial product
$0.01320000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
1.5%
Start date and end date for
determining market price for DRP
10 November 2021 12 November 2021
Date strike price to be announced (if
not available at this time)
16 November 2021
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product
$unknown
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
10 November 2021
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Cameron Mathewson, Chief Financial Officer
Contact person for this
announcement
Cameron Mathewson, Chief Financial Officer
Contact phone number 03 478 8110
Contact email address c.mathewson@scottautomation.com
Date of release through MAP

21 October 2021

6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

Modifications to Dividend Reinvestment Plan Notice of Meeting 2021

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.