Annual Meeting 2023
1
22 November 2023
Scott Technology Annual Meeting 2023
Chairman’s Address
[Stuart McLauchlan, Chairman and Independent Director]
It gives me great pleasure to report on our results for the 2023 financial year.
The success we have achieved as a business across the 2023 financial year is thanks to the
combined efforts of our 650 employees across our worldwide facilities.
The diversified nature of our portfolio of businesses has provided us stability in the current
dynamic macro-economic environment. Demand for our products and services continues to
demonstrate resilience to economic conditions. However, with the current inflationary
environment, we have experienced increases in key cost items, including labour, material costs
and freight to varying degrees across our business. Importantly, each business has had an
increased focus on various strategies to mitigate these increases and preserve margins.
The business environment has changed and the new reality in global markets for at least the
next decade, will include:
• Higher interest rates
• Inflation is likely to persist above 2% in the medium term.
• Economic growth is likely to be desynchronized and more choppy.
• Rising geopolitical tensions will result in what is being called nearshoring.
With these new dynamics, Scott is well positioned with our geographic spread in Asia, Europe,
the US, and of course, Australasia.
The FY23 result was underpinned by sales growth with revenues of $267.5m, along with strong
earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 27%. This
continues to reflect the focus on driving customer outcomes and the further delivery of the Scott
2025 strategy. The focus on the next phase of the strategy is for accelerated growth in our key
markets due to the successful development of new products, which brings scale to our offerings.
The Board has recently signed off on a number of important capex investments that will assist
our talented staff to continue their market-leading developments.
Dividend
The Directors have recommended a final dividend of 4.0 cents which has been paid, on top of
2
the interim 4.0 cents dividend paid earlier in the year. The Dividend Reinvestment Plan did not
apply to this payment.
Governance
As advised in June, the company commenced a strategic review of its ownership structure with a
view to exploring options to maximise value for all shareholders. As part of this process, the
company engaged with a group of potentially interested parties in relation to transactions
involving an offer to all shareholders for their shares in Scott.
These discussions will not progress further as no offers were received at price ranges which
reflect the independent Directors’ view of value for all of the company. The review has
highlighted a range of other initiatives which the Directors will task management to continue to
work on.
The Board remains committed to the Scott 2025 strategy and believes the ongoing
implementation of the strategy will continue to drive shareholder value.
We value our people by supporting them to lead healthy, balanced lives. Investment in learning
and development provides employees with opportunities for advancement while ensuring our
business attracts and develops the skills and capabilities we need to deliver for our stakeholders.
We recognise and reward performance in a fair and equitable way to encourage all members of
our team to strive for excellence in everything we do.
I would also like to acknowledge the guidance, support and wisdom of the Board.
The Board is committed to, and continues to invest in, the development of our Environmental,
Social and Governance (ESG) Programme. Some of the key projects include safety and
wellbeing, carbon scoping and sustainable procurement.
As noted in the Notice of Meeting, I am up for re-election at this meeting. If I am successful in
being reappointed for a further term I wish to signal that this will be my last. I have been a
Director and Chairman of Scott Technology now for 16 years.
Outlook
The Board is pleased with the strong earnings growth in FY23, driven by organic growth. Our
team is still receiving a high level of enquiries, with our order book showing a very high level of
forward work, which bodes well for the coming year.
On behalf of the Board, I would like to thank shareholders for your continued interest in, and
support of, our company, the Board and Management.
- END -
---
1
22 November 2023
Scott Technology Annual Meeting 2023
CEO’s Address 2023
(incl. presentations by CFO & Group GM – People, Marketing & Minerals)
Scott 2025 Strategy
[John Kippenberger, CEO]
Scott 2025 Strategy delivers record year in FY23
In a year defined by transformation and progress, we stand at the threshold of exciting
opportunities, driven by our unwavering commitment to our Scott 2025 Strategy, focusing on
accelerated growth and productisation.
The past year has been a testament to the growth of Scott’s three core sectors of protein,
minerals and materials handling, delivering record revenue and EBITDA of $267.5m (+ 21%) and
$30.4m (+27%) respectively.
We have intensified our focus on converting innovation into market-ready products that deliver
tangible value to our customers. Our commitment to productisation is evident in the successful
launch of our poultry trussing technology into the North American market earlier in the year.
We are extremely proud of the progress that has been made under our Scott 2025 strategy after
several years of stabilising and focusing the business into large sectors where we have a strong
competitive advantage through our world-leading technology.
FY23 Performance Snapshot
FY23 revenue increased 21% on the prior year to $268m, as Scott’s strategy of generating more
revenue from repeatable core products and services continued to deliver sales growth. You can
see that margins for core sectors have held at 30% while the margins for the total Group have
lifted to 27% due to an improvement in performance from other areas including the appliance
2
business.
As we mentioned, EBITDA has increased strongly to $30m, up from $24m for the prior year. The
business’ sales pipeline remains strong, with $195m in forward work comprising several materials
handling and logistics (MHL) projects, continued positive minerals and protein product
orderbooks, as well as continued progress in secured service contracts.
These results reflect the collective efforts of our talented people and the strong relationships we
have built with our valued customers.
Safety & wellbeing culture continues to mature
Fostering a work environment that prioritises safety and wellbeing continues to be the highest
priority for Scott Technology. This is reflected both in the organisation’s safety culture and our
key metrics.
The Safe Mate programme continues to encourage staff to uphold the six core expectations in the
Be Safe, Be Well, Be Scott framework. The integration of the BeScott reporting app has also
played a significant role, and is now fully embedded across the global business, with high levels of
engagement. These positive initiatives have resulted in a significant decrease in our lost time
injury frequency rate going from 6.1 in August last year, to 4.3 in 2023.
Continuous improvement in workplace health and safety is a fundamental commitment for Scott
and we know there is always more that can be done. The team has been working hard on
developing a Critical Risk Management Strategy, which has involved defining critical risks and
establishing eight risk categories.
Continued leadership across core sectors
Building long-term, forward looking customer partnerships has been a priority for Scott over the
last three years. The team has invested in understanding our customers' objectives, strategies,
growth and capital investment plans. These partnerships are focused on the rolling investment
cycle, by collaborating to identify further product and system opportunities.
We are proud that we now have over 170 customers around the world with more than one Scott
solution installed in their business.
The protein and material handling sectors grew strongly over the year at 33% and 35%
respectively, while the minerals business delivered single digit revenue growth after picking up
the final full year impact of the forgone business into Russia.
The margin performances of all core sectors are well up on the rest of business – which is at 14% .
However, this rest of business margin has increased from earlier years as appliance projects in
particular have shown margin improvement.
3
One of several positive insights which came out of the Strategic Review was around areas to
continue driving improvements in our material handling business. We look forward to sharing
these strategies together with delivering margin traction at the FY24 half year.
Looking at a few customer reference points from the past year:
• Growing BladeStop safety bandsaw sales into the processing operations of US giant
retailer Walmart, along with a growing rollout of Scott saws into giant protein processor
Cargill are highly exciting developments with strong future growth opportunities.
• The first new poultry trusser units are being commissioned into Costco USA. These will
then set the performance benchmark for further sales into other US poultry companies.
• During the year we worked on a large first warehouse automation project for our first
Slovenian customer, the leading dairy and ice-cream producer Incom Leone.
• We are well progressed into our first commercial automated modular laboratory system –
known as AMS - for the Onslow iron ore project in West Australia for Mineral Resources.
FY23 Performance
[Cameron Mathewson, CFO]
FY23 results summary
Let me take you through some of the key results across the Financial Statement of the company
for FY23. Revenue grew by 21% versus the prior year – and I will talk on the next few slides in
more detail about what drove this pleasing growth. This revenue growth was the key driver of
improved Operating EBITDA (up 27%) and Net Profit After Tax (up 21%).
The FY23 Net Cash / (Debt) figure of negative zero point one million means, once all the cash and
debt lines in the balance sheet are added up, we finished the year with only a tiny amount of debt
– with this being achieved off the back of a lift in Operating Cash Flow.
Strategy delivering accelerated growth across core business and geographies
As mentioned earlier we can now take a look at the elements that accelerated growth and drove
such a strong performance for FY23. In particular our three Core Sectors of Protein, MHL and
Minerals continued to perform well as we converted innovation into market ready products such
Poultry Trussing in Protein and our Modular solution in Minerals, both of which will be talked
about in more detail later in this presentation.
4
Revenue from these three core sectors rose by 27% in FY23 and with margin dollars up by 33%
and margin percent stable at a pleasing 30% our strategy of supplying repeatable products into
large addressable markets continues to gather momentum.
And in terms of markets our Strategy of targeting key growth markets saw USA / North America
grow from 24% of group revenue to 34% in FY23.
Looking at the Core Sectors from another angle, in an aggregated manner, you can see on this
page how the growth in Core over the last 3 years has lifted both Revenue and Margin for the
Group as a whole.
In FY23 revenue from Core lifted from 75% in the prior year to be 79% of Group revenue – and
even more significantly it delivered 89% of Group margin dollars.
In relation Group Margin percentage, showing at the bottom of the right hand chart, which has
increased from 24% to 27% it is important to note that this growth has largely come from our
imperative not to take Scott into commercial positions in our Rest of Business sector that are
misaligned with Strategy, particularly in relation to excessive risk and / or low margins.
Core Sector Performance & outlook
[John Kippenberger, CEO]
Protein: Strong demand continues for high margin products and solutions
Protein sales revenue is up 33% from our poultry trussing product, along with continued strong
sales of our BladeStop safety bandsaw. The protein service business again grew strongly, up 60%
on the prior year, whilst delivering further margin growth of 43% mainly due to BladeStop parts
and service.
The second poultry trusser site installation is on track, at Costco in North America. The next eight
are in production to be installed throughout 2024. There is significant interest in seeing this
product in action after winning the IPPE US best new processing product of 2023.
BladeStop has a strong lead into FY24 with an additional 10 saws sold recently to major American
retailer Walmart, taking their total BladeStop saws to 44 and with strong opportunity still ahead
with this customer.
The BladeStop range expansion is under way with the smaller T300 retail saw well to
development and ready for testing at the first customer site. This follows the success of
BladeStop across large supermarkets, such as, Foodstuffs and Woolworths.
5
Materials Handling: Impressive growth from key markets Europe and US
MHL has delivered impressive growth of 35% on prior year coming from both of Scott’s key
markets for MHL; Europe and the US.
Europe sales revenue grew 46% during the year converting last year's record order book into
revenue including the design and production of Clarebout’s new warehouse facility in its
greenfield french-fry plant in France, and Incom Leone’s Slovienian ice cream facility.
Growth in MHL revenue and margins in US and Europe follows the successful change in
management structure to bring the US business under the leadership of Scott Europe. This
enables greater focus on the US market as global processor relationships from Europe are
extended into the US.
Materials Handling Europe MHL technology to debut in US
This EU-USA strategy has produced another important step forward with McCain Foods ordering
a $12m palletisation system for one of its North American sites. The forward order book of
$127m for MHL globally – which includes the large JBS Canada warehouse automation contract -
is very healthy, with other new orders including A-ware Food Group and Colruyt. We see the
industry pressures of labour supply and wage inflation continuing to drive demand.
[Casey Jenkins, Group GM of People, Marketing and Minerals]
Minerals: Reliable Rocklabs products deliver improved margin
With an increased focus on business and product development, Scott’s minerals business,
Rocklabs, continues to grow strongly contributing 33% of the Group's EBITDA.
Our world-leading range of sample preparation products underpin our minerals revenue, with our
high-margin aftermarket business contributing 36%.
Minerals: Automated Modular Solution
The recent launch of our new automated modular solution (AMS) has been received positively in
the industry, with our first contracts won and builds well under way. This solution was developed
to replace the fully automated, end to end solutions that carry high complexity and therefore
high risk.
The modular solution takes our existing technology and packages it into a linear solution to meet
the needs of the high sampling end of the market. This product will drive our future growth as
global mining companies and commercial laboratories look to automation to increase
6
productivity, improve health and safety and address labour challenges.
Minerals: New Rocklabs Premises
To enable future growth, our minerals business has very recently moved into a new, larger, fit for
purpose facility in Auckland. This will provide improved manufacturing capacity and ensure we
can capitalise on the large addressable market for both our standard product offering and
recently launched automated modular solution.
Sustainability: People & Planet
[Casey Jenkins, Group GM of People, Marketing and Minerals]
Leading a sustainable future
Scott’s commitment to sustainable growth extends beyond financial success, to include our
responsibility to society and the environment.
The momentum behind Scott’s ESG strategy has continued in FY23, with strong engagement at
every level of the organisation and deep support at a Board and Executive level as Scott lives its
commitment to playing a role in leading a sustainable future.
Positive engagement and momentum in ESG
In the past year, Scott has made positive steps in our sustainability journey, with the
measurement and verification of our full global carbon footprint for the first time, increased
employee benefits and the development of deeper partnerships in education.
As we have already heard from John, Employee safety and wellbeing continues to be the highest
priority for Scott. The ‘BeScott’ Health and Safety programme continues to drive Scott's safety
culture and more importantly a significant improvement across all safety metrics in FY23.
The increased investment in people-led initiatives has resulted in an outstanding eNPS
engagement score of 83% across the group, alongside the highest-ever level of employee
engagement survey participation (78%).
Finally, in March, as part of our commitment to encouraging women into engineering, Scott was
proud to announce a partnership with the University of Canterbury, including the launch of the
Scott Technology Women in Engineering Scholarship. Scott has now awarded the first scholarship
and looks forward to continuing to support these programs in FY24 and beyond.
7
Carbon emissions management journey
For Scott, understanding the carbon footprint of our operations was an important first step in
developing a low-impact, climate-resilient business.
In the past year, Scott Technology further fortified its commitment to sustainability by expanding
its carbon emissions across all global operations mapping our entire global footprint for the first
time.
Scott’s carbon emissions are broken into three scopes. Scope 1 and 2 are emissions that the
business has control over, while scope 3 emissions are those up and down our supply chain that,
to measure and manage accurately, requires collaboration with suppliers and customers.
Understanding the activities that produce emissions within our business is only the first step in
our journey. We are currently developing our reduction targets and set of strategies that will get
us there.
Scott is committed to creating a decarbonised future and are looking forward to sharing our
progress as part of our climate-related disclosures later next year.
CEO Close
[John Kippenberger, CEO]
As we look to the future, our vision for Scott Technology is clear. We will continue as global
leaders in automation, providing solutions that benefit organisations worldwide. Whether it’s
enhancing manufacturing efficiency, reducing environmental impact or improving workplace
safety, we will continue to make a positive difference in the world through automation.
With the Scott 2025 Strategy as our roadmap, we are well prepared to meet the challenges and
opportunities of the future, ensuring that our legacy of excellence continues for many decades to
come.
I would like to extend my gratitude to our exceptional team, it is your dedication and unrivalled
talent that make our achievements possible. And, to our loyal shareholders and customers I thank
you for your ongoing commitment and support.
-END-
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1
ANNUAL
SHAREHOLDER
MEETING
SCOTT TECHNOLOGY LIMITED
22 November 2023
3
CHAIRMAN
PRESENTATION
Stuart McLauchlan
Chairman and Independent Director
Contents
PRESENTED BY
“In a year defined by transformation and progress, we stand at
the threshold of exciting opportunities, driven by our unwavering
commitment to our Scott 2025 Strategy, focusing on accelerated
growth and productisation.”
_
John Kippenberger
Chairman Presentation3
Scott 2025 Strategy update
Progression of strategy by focusing on
key areas of strength for the business
7
FY23 performance
Strong performance across the business at
revenue, margin and EBITDA
13
Core sector performance
Core sectors providing growth across the
business through sales and services
18
Sustainability, people & planet
People updates with focus on ESG projects
commenced in FY23
25
General Business & Questions30
Voting & Resolution31
Stuart McLauchlan
Chairman
John Kippenberger
Chief Executive Officer
Cameron Mathewson
Chief Financial Officer
Casey Jenkins
Group GM – People,
Marketing & Minerals
Chairmans Address & Outlook
1
Demand for our products and services continues to demonstrate resilience to economic conditions. Our teams continue to
focus on various strategies to mitigate theinflationaryenvironmentand preserve margins as we continue to experience
increases to labour, material costs and freight to varying degrees across our business.
2
The FY23 result was underpinned by sales growth with revenues of $267.5m, along with strong EBITDA growth of 27%. This
continues to reflect the focus on driving customer outcomes and the further delivery of the Scott 2025 strategy.
3
The Board has recently signed off on a number ofimportant capex investments that will assist our talented staff to continue
their market-leading developments.
4
The Directors have recommended a final dividend of 4.0 cents which has been paid, on top of the interim 4.0 cents dividend
paid earlier in the year. The Dividend Reinvestment Plan did not apply to this payment.
5
As advised in June, the company commenced a strategic review of its ownership structure. These discussions will not progress
further as no offers were received at price ranges which reflect the independent Directors’ view of value for all ofthe
company. The review has highlighted a range of other initiatives which the Directors will task management to continue to
work on.
6
The Board is committed to, and continues to invest in, the development of our Environmental, Social and Governance (ESG)
Programme. Some of the key projects include safety and wellbeing, carbon scoping and sustainable procurement.
7
Forward work remains strong heading in to FY24, $195m.
SCOTT 2025
STRATEGY
John Kippenberger
Chief Executive Officer
Scott 2025 Strategy delivers record year in FY23
Engineering Scott to high performance
FY23 performance snapshot
$268M
REVENUE
EBITDA
$30M
•Forward Work represents contracted activity. It is not
an indicator of revenue over a set period of time
DIVIDENDS PER SHARE (Cents)
EARNINGS PER SHARE (Cents)
FY23 8.0 | FY22 8.0 | FY21 6.0
FY23 19.3 | FY22 15.9 | FY21 10.8
•Information is Continuing Operations (excludes the
divestment of the non-core Robotworx business)
FORWARD WORK*
$179M
SALES
SERVICES
$16M
27%
GROUP MARGIN %
30%
CORE MARGIN %
FY22 $222M +21%
FY21 $206M +8%
FY22 29%
FY21 30%
FY22 24%
FY21 24%
FY22 $24M +27%
FY21 $21M +14%
FY22 $172M +4%
FY21 $119M +44%
FY22 $19M -16%
FY21 $9M +115%
Safety & wellbeing culture continues to mature
LTI
MTI
First Aid
Injuries
EP&D
/ Near Miss
Hazards Reported
Management
Conversations
FY22
Fatality
FY23
0
5
0
38
28
1035
251
0
9
5
30
56
872
233
Strong engagement delivers positive
improvements proving mature safety culture
•Positive engagement with BeScott Safety App, with 1035 hazards reported
in FY23 compared to 872 hazards reported in the same period last financial
year.13% increase in identifying and reporting Hazards, Near Misses and
Early Pain & Discomfort.
•Lost time Injury Frequency rate (LTIFR) continued a downward trend;
sittingat 4.3compared to 8.7 in August 2022, 30% reduction.
•Continuous improvement in workplace safety and wellbeing is a
fundamental commitment, the team is working hard on developing a
Critical Risk Management Strategy, launched earlierthis month.
Continued leadership across core sectors
Revenue mix %
Revenue growth
% (vs pcp)
Margin %
21%29%
PROTEINREST OF BUSINESS
15%
MINERALS
35%
MHL
2%33%4%35%
14%33%40%23%
FY23
Customers
FY23
PERFORMANCE
Cameron Mathewson
Chief Financial Officer
FY23 results summary
Results Snapshot (NZ$m)
FY23FY22FY21
Revenue267.5221.8206.0
Operating EBITDA30.423.921.0
Non-trading adjustments*(0.7)--
EBITDA29.723.921.0
Net Profit After Tax (NPAT)**15.412.78.4
Net Cash / (Debt)(0.1)(8.0)1.3
Net Cash / (Overdraft)12.43.912.2
Bank Loans(12.5)(12.0)(10.9)
Operating Cash Flow20.26.313.4
* FY23 EBITDA includes $0.7m of expenses related to the strategic review announced in June 2023
** FY22 reported NPAT is $0.1m as it captures $12.6m of non-cash write offs from the discontinued Robotworx operation
34%
34%
16%
5%
11%
Scott have intensified focus on converting innovation into market-
ready products that deliver tangible value to our customers.
•Our Strategy of supplying repeatable products into large addressable markets continues
to gather momentum.
•Revenue from Core sectors grew by 27%. Core Margin in dollars rose by 33%, as margins
lifted from 29% to 30%.
•Our compelling product offerings were successful in attracting significant new
customers, such as our first BladeStop installs for Cargill and the Poultry Trusser for
Costco, both in our key US target market.
•MHL grew by a record 35% as the large order book in Europe was converted to revenue
and the US AGV business signed new orders with the likes of McCain Canada.
•Forward order book remains strong at $195m, with 86% from Core Sectors.
•Geographic contribution mix with expansion across Europe and US in line with
Scott 25 Strategy.
•US revenue contribution increases from 24% of group revenue in F22 to 34% in F23, as the
demand for Poultry Trussers grows.
•Europe grows from 26% to 34% as a result ofthe MHL strong momentum.
Strategy delivering accelerated growth
across core business & geographies
Meat
29%
MHL
35%
Mining
15%
ROB
21%
FY23
Revenue
$268m
Core business
Revenue
$211m
79%
China
+ RoW
NZ
AU
Europe
USA
FY23
Revenue
$268m
REVENUE BY GEOGRAPHY
REVENUE BY SECTOR
43.7
47.9
63.7
FY21FY22FY23
49.6
53.3
71.5
FY21FY22FY23
Core sectors driving strong growth
Scott’s strategy of more revenue
from proven systems, product
and service delivers another
period of growth
•Core Sectors contributed the
majority of growth during the
FY23 period at 30% margin
(+139bps).
•Core Sectors represent 79% of
Group Revenue (up from 75%).
•Rest of business operations
represented 21% of revenue and
11% of margin in FY23.
Margin (%)
CoreGroupCoreGroup
Revenue (NZ$m)Margin (NZ$m)
27%24%24%
30%31%29%
143
167
211
FY21FY22FY23
206
222
268
FY21FY22FY23
CAGR (%)
15
CORE SECTOR
PERFORMANCE
& OUTLOOK
Protein: Strong demand continues for
high margin products and solutions
Revenue (NZ$m)
Margin (NZ$m)
Strong period for BladeStop and meat products
•Continued demand for Scott meat solutions as customers address
labour and skills shortages and rising health and safety
requirements.
•Strong demand for poultry trussers, with 10 units ordered in FY23
for Costco. Advanced completion resulting in 6 units recognised
in revenue.
•Key sales of Lamb Primal to Silver Fern Farms (NZ), a successful
BladeStop trial at Cargill (US) and additional BladeStop saws sold
to Walmart.
•33% revenue growth on FY22 underpinned by strong
performance from:
-Momentum in new Poultry Trusser solution, contributing 13%
of the growth.
-BladeStopSaws in Europe (+36%) and Americas(+51%), which
is now the region with the most sales in FY23.
-Global BladeStop service revenue (+59%).
Margin dollars up 40% vs FY22 (CAGR FY21: +38%)
•Strong margins of 33% in FY23, driven by higher proportion of
services revenue and product sales focus.
•Focus on efficiency remain high to keep growing Margin %.
23%
Service
mix (%)
28%33%
Margin
(%)
28%
32%
33%
Service
Sales
Total
Service
Sales
Total
36.1
41.3
50.7
10.9
15.8
25.3
47.0
57.1
76.0
FY21FY22FY23
9.5
13.4
17.1
3.9
4.7
8.3
13.4
18.2
25.4
FY21FY22FY23
Materials Handling: Impressive growth from
key markets Europe and US
34%34%28%
26%
20%23%
Promising momentum in global markets
•MHL continues to grow strongly in Europe.
•With the recent leadership amalgamation, established
palletisation solutions are being presented to the US market.
•Strong revenue growth from FY22 (+35%), higher than CAGR
from FY21 of 18%, due to conversion of forward work as
supply chain pressures ease.
•Strong forward order book of $127m:
-US Palletisation with $66m confirmed for 2 projects.
-Materials Handling EU: confirmed contracts with
Clarebout & new customer Incom Leone.
-Transbotics US: confirmed contracts with major global
businesses, including Microsoft, Novelis, and Gulfstream.
•Sales growth driven by strong order books means that
service mix drops to 28%, despite the increase of service
revenue of $3m.
Margin improving after period of disruption
•More than proportionate increase in margins (+56% growth)
as a focused business concentrates on lower risk more
profitable projects.
Revenue (NZ$m)
Margin (NZ$m)
Service
Sales
Total
Service
Sales
Total
Service
mix (%)
Margin
(%)
9.2
5.0
13.0
8.5
8.9
8.6
17.7
13.9
21.6
FY21FY22FY23
44.7
46.5
67.9
23.1
23.6
26.5
67.8
70.0
94.4
FY21FY22FY23
McCain Coaldale
System to process cartons of French fries from fourproduction lines
and transported to the palletizing area complete with two high
speed Scott PAL 4.0 machinesand empty and full pallet circuit.
JBS Brooks
System to process cartons of protein from threeproduction lines,
including storage in ASRS system until a full pallet is ready.Cartons
are then palletised on two high speed Scott PAL 4.0 machines.
Materials Handling: Europe MHL technology
to debut in US
Automated Storage and Retrieval Systems
(ASRS)
•9 aisles, 31 levels per aisle
(47m wide, 70m deep, 13m height)
•279 shuttles
•High density storage for +90.000 cartons
Palletizing area
•2 PAL 4.0
•4 AGV’s to handle empty and full pallet
transport
•Capacity for 60 cartons per minute
Multi-line system
•3 different types of pallets with
6 different pallet patterns
•9 SKU’smanaged simultaneously
•+500m of case conveyors
•9 accumulations tables
•2 PAL8300_4.0
•Total capacity of 130 cartons per minute
Minerals: Reliable Rocklabs products deliver
improved margin
33%
30%
37%
44%
40%
40%
Strong global demand outlook for old and new
minerals from mining manufacturers and
distributors
•Positive launch of ‘modular’ Rocklabs solutions for
mining and laboratory customers, as evidenced by first
contract win to Mineral Resources Limited of $12m
($3.3m in FY23).
•An estimated $3msales from Russia missed in the
period due to the war in Ukraine.
•Partially offset by strong and high margin service
growth of 21% (+$1.1m).
High margin translates growth of service mix
•Overall margin increase by 5% shows strong revenue
from Rocklabs and good progress while AMS and
Energize are progressing well.
Revenue (NZ$m)
Margin (NZ$m)
Service
Sales
Total
Service
Sales
Total
Service
mix (%)
Margin
(%)
19.1
27.5
26.0
9.3
12.0
15.1
28.4
39.6
41.2
FY21FY22FY23
9
11
10
3.8
5.2
6.3
12.6
15.9
16.6
FY21FY22FY23
The AMS is a linear automated sample preparation
system that links machine modules to control and
automate crushing, pulverising, and dispensing.
•The solution offers several improvements across the sample
preparation process:
•Reduced labour requirements
•Easier Integration
•Increased processing up-time
•Increased standardisation of outputs.
•The total potential equipment
pool for AMS in the ANZ and
North American geographies
is estimated at c.$NZ900m
today, with mines (52%) and
commercial labs (48%).
Minerals: Automated Modular Solution
Mines
Commercial labs
ANZ
Canada
USA
6 FTE
<1FE
3 Crushers/Splitters Combos
3 Pulverisers
3 Crushers/Splitters Combos
1 ABM
Semi-Automated
X3
X3
16 samples p/h
Standard Equipment
Automation with AMS
1 AMS (Crush, pulverise and dispense
Typical lab configuration
3 FTE
<1 FTE
Minerals: New Premises
22
SUSTAINABILITY
PEOPLE & PLANET
Casey Jenkins
Group GM of People, Marketing & Minerals
Leading a sustainable future
Positive engagement and momentum in ESG
100% GHG emissions
footprint measured
and verified.
Progress was made in
measuring GHG emissions in
China and the US. Data has
now been collected and
audited for the whole business.
Climate related
disclosures
Work under way to prepare
business for 2024 reporting
requirements, gap analysis
completed.
Expanded employee
benefits programme.
Featuring increased
employer contributions to
KiwiSaver, enhanced
medical insurance offerings
and celebrating employees
through staff awards.
Pathways support talent
development
33 young people globally in
an internship, apprenticeship
or graduate programme,
11 new this year.
Investing in
our future with
University of Canterbury
Final year project sponsorship
and the launch of the Scott
Technology woman in engineering
scholarship in 2023.
Engagement initiatives
bring positive results
to our eNPS score.
Highest overall score to date at
83%, FY22 82%. Highest return
rate so far at 78% across the
group, target 70%, FY22 63%.
Positive employee engagement
is a key measure of successand
the business is committed to
ensuring it retains and attracts
the top talent.
Carbon emissions-management journey
Understanding the scale of our carbon footprint and the
impact of our actions, allows us to identify opportunities
for reduction and improvement.
•100% of our global GHG Emissions footprint has been measured, audited
and verified. Additionally, we have made seen reductions across both ANZ
(13%) and Europe (9%) on FY19.
•Next steps for our carbon emissions management include:
•Expanding the boundary of the Scope 3 measurement especially for
Freight and Purchased Goods and Services.
•Factor in group revenue growth to see the growth in emissions and
the impact on target setting.
•Development of regionalised reduction strategies and finalise the
group reduction targets (absolute and intensity).
ANZ
1,495 tCO
2
e
Unites States
192 tCO
2
e
China
402 tCO
2
e
Europe
2,490 tCO
2
e
Business
Travel 15%
708 tCO
2
e*
Transport
Fuel 22%
995 tCO
2
e*
Stationary
Fuel 6%
266 tCO
2
e**
Electricity
22%
1,009 tCO
2
e**
Materials
31%
1,418 tCO
2
e
Packaging
1%
29 tCO
2
e
Waste
1%
60 tCO
2
e
Refrigerant
gas 1%
42 tCO
2
e
Other
1%
51 tCO
2
e*
FY22 GLOBAL GHG EMISSIONS FOOTPRINT
CEO
CLOSE
John Kippenberger
Chief Executive Officer
Key Points Summary
1
Scott continues to experience ongoing demand for automation as our customers invest to drive productivity, safety, and
toovercome ongoing globallabourshortages.
2
Success from the Scott 2025 strategy to focus on core areas of proven expertise and sell into large addressable markets. This
delivers core revenue growth of 22%, making up 79% of group revenue and 89% of group margin.
3
These proven and repeatable products delivered Sales margin of 24% and Services / Aftermarket margin of 35%
Which lifted group margin from 24% to 27%.
4
Continued track record of managing costs efficiently and taking revenue growth to the bottom line as demonstrated by record
growth of operatingEBITDA of 27% from FY22 to $30.4m.
5
Demand for automation combined with clear Strategy maintains a strong forward order book totaling $195m.
6
We continue to move efficiently though the various stages of ESG, Strategy and Culture.
7
Winner of the 2022 Deloitte Best Growth Strategy Award recognising outstanding growth performance.
8
We have taken several key insights and learnings out of the recent Strategic Review work. And as a company always striving
for exceptional growth and performance we will work together on these and look forward to updating you on this progress at
the FY24 half year.
28
VOTING &
RESOLUTIONS
Voting andaskingquestions
29
Voting Card
Question Box
Resolution 1: Re-Election of Director –Stuart McLauchlan
That Stuart McLauchlan, who retires as a Director and,being eligible,
offers himself for re-election by shareholders, be re-elected as a Director.
Resolution 2: Re-Election of Director –John Kippenberger
That John Kippenberger, who retires as a Director and,being eligible,
offers himself for re-election by shareholders, be re-elected as a Director.
Resolution 3: Re-Election of Director –Alan Byers
That Alan Byers, who retires as a Director and,being eligible, offers
himself for re-election by shareholders, be re-elected as a Director.
Resolution 4: Auditor
To record the reappointment of Deloitte as auditor of the Company
and to authorise the Directors to fix the auditor’s remuneration.
30
Resolutions
31
GENERAL BUSINESS
32
THANK YOU
4.0
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