Scott Technology Limited logo

Annual Meeting 2023

AGM22 November 2023SCTIndustrials

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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 -

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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

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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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