managing directors address - scott - automation · based on a $3.70 share price (23rd nov 2017) 1...

Annual Meeting 2017Managing Directors Address

Scott Annual Meeting 2017

Outline

Performance & Results

Operational Review

Research & Development

Opportunities & Ambitions

Outlook

Performance highlights ‐ Results

In the year to 31 August 2017 we :

Achieved revenues of $133m – up 18% on 2016 Delivered operating cashflows of $13m with cash reserves of $26m

Had a full 12 months contribution from our operations in Germany and converted our Bladestop licence to a full ownership model

Delivered Net Profit Before Tax of $15m – up 35% on 2016Increased annual dividend by 0.5c to 10 cents

Revenues ‐ Industry Movements 2016 to 2017

132,631

‐ 1,588

112,044

11,238

6,127 4,104

‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2016 sales Other industrialautomation

Appliances Mining Meat processing High temperaturesuperconductors

2017 sales

• Industrial Automation & Robotics +41% yoy– a full 12 months of Germany– more customers seeking robotic solutions to labour concerns

• Appliances +30% yoy– a full 12 months of Germany– several large projects for China and the USA

• Meat Processing +2% yoy– activity consolidated following a 256% increase last year– expanding resources for the next phase of growth

• Mining +18%– mining upcycle swing across all geographies

Revenues ‐ Industry Movements 2016 to 2017

Ten year revenue growth profile

CAGR: Compound annual growth rate

‐2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

35%

21%

20%

Revenue

5 year CAGR

3 year CAGR

RocklabsApr 08

BladestopOct 16

MARJan 15

RobotWorxMay 14

JBS buys 50.1%Apr 16

10 year CAGR

EBITDA

Sales to JBS: $3.2m

Ten year divisional revenue breakdown

April 2016JBS acquires 50.1% at $1.39 per share

Aug BD 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ac c um growth

$m $m $m $m $m $m $m $m $m $m $m

Meat processing 5 5 6 6 8 8 11 39 40 40Industrial 2 1 1 5 5 7 29 27 39 39Mining 9 12 19 28 34 29 14 17 22 26 17Appliances 16 12 22 16 16 17 29 14 20 26 10HTS products 2 3 2 2 2 3 2 2Other 6 3 3 1 1 2 1 1Total 25 31 47 59 67 63 62 73 114 134 108

JBS sales 0.3 3.2

Acquisitions Rocklabs RobotWorx MAR BladestopApr-08 May-14 Jan-15 Oct-16

Revenue CAGR 1 year 3 year 5 year Max.Mining 18% 25% -2% 10%Appliances 30% 39% 12% 10%Meat processing 2% 90% 50% 30%HTS products -48% -8% 3% -5%Industrial 41% 16% 63% 43%TOTAL 17% 35% 21% 20%

Ten year Net Profit After Tax growth profile

CAGR: Compound annual growth rate (Revenue)

‐2,000

0

2,000

4,000

6,000

8,000

10,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

42%

16%

57%10 year CAGR

5 year CAGR

3 year CAGR

RocklabsApr 08

BladestopOct 16

MARJan 15

RobotWorxMay 14

JBS buys 50.1%Apr 16

Share price performance and gross returns

Gross return (share price and dividends)

Based on a $3.70 share price (23rd Nov 2017)

1 year 3 year 5 year Since Aug 2015

Scott 87% 156% 73% 180%

Share price $2.10 $1.65 $2.54 $1.39Dividends 10.0c 27.5c 45.5c 19.5c

1 year 3 year 5 year

NZSE 20% 53% 108%

Out/under performance 67% 102% -34%

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Nov 12 Mar 13 Jul 13 Nov 13 Mar 14 Jul 14 Nov 14 Mar 15 Jul 15 Nov 15 Mar 16 Jul 16 Nov 16 Mar 17 Jul 17

August 2015JBS deal announced

Gross return180%

April 2016JBS deal approved and

completed


Outline


Operational Review



Outlook

Operations – Health & Safety

Commitment by all to safety at work

Systems and Processes

Monitoring effectiveness

Results matter

Operations – Europe

Operations – Asia

Operations ‐ Australia

Operations – Americas

Operations – The Americas

Operations – New Zealand

Operational Overview – New Zealand

Executive Team


Outline


Operational Review



Outlook

R&D Spend between 5% and 10% of total revenues

Demand pull, quick outcomes and collaborative approach

Includes:

AGV's

Robotics generally Inc. Collaborative and mobile robotics

LED automoulding

Scott Dairy – milking robots

Virtual Reality

Advanced vision and sensing technologies• DEXA & MEXA (Hyperspectral, 3D time of flight, NMR)


Operations – New products

Commercialisation

RoboFuel

Xray Primal Middle system

Machine Diagnostic tools and reporting

200 MHz NMR Magnets

Chine Bone machine

Hammermill

Robotic Idler change

Beef Rib Cutting

2017 Projects

INSERT 2 Min video


Outline


Operational Review



Outlook

Opportunities and Ambitions

SCOTT is overcapitalised and needs to grow

Organic Growth • Expand and improve on current activities

• Ongoing Investment in R&D:• Maintenance ‐ to maintain competitive edge• Development ‐ to create new opportunities

Acquisitions • Complementary to existing business

(Geography/technology/skills/markets)

key product drivers in the short to medium term – market opportunities for :• Bladestop

Key Product Drivers / Market Opportunities

key product drivers in the short to medium term – market opportunities for :• Bladestop• Increasing adoption of meat automation technology:

• Lamb in Australasia• Started with Beef in Australia• Development work in Pork and Poultry in USA and Europe




• DEXA – Australia developments and wider interest




• DEXA – Australia developments and wider interest• Mining technology developments

– robofuel– Robotic idler change



Outline


Operational Review



Outlook

Outlook ‐ 2017

Market Overview:

Forward project work – 10 Months

Substantial sales pipeline

Diversification

Strong balance sheet to leverage off

Thank you


managing directors address - scott - automation · based on a $3.70 share price (23rd nov 2017) 1...

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