Managing Directors Address - SCOTT - Automation · Based on a $3.70 share price (23rd Nov 2017) 1...
Transcript of Managing Directors Address - SCOTT - Automation · Based on a $3.70 share price (23rd Nov 2017) 1...
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Annual Meeting 2017Managing Directors Address
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Scott Annual Meeting 2017
Outline
Performance & Results
Operational Review
Research & Development
Opportunities & Ambitions
Outlook
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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
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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
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• 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
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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
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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%
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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
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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
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Scott Annual Meeting 2017
Outline
Performance & Results
Operational Review
Research & Development
Opportunities & Ambitions
Outlook
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XXX
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Operations – Health & Safety
Commitment by all to safety at work
Systems and Processes
Monitoring effectiveness
Results matter
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Operations – Europe
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Operations – Asia
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Operations ‐ Australia
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Operations ‐ Australia
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Operations – Americas
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Operations – The Americas
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Operations – New Zealand
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Operations – New Zealand
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Operations – New Zealand
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Operational Overview – New Zealand
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Executive Team
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Scott Annual Meeting 2017
Outline
Performance & Results
Operational Review
Research & Development
Opportunities & Ambitions
Outlook
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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)
Research & Development
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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
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2017 Projects
INSERT 2 Min video
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Scott Annual Meeting 2017
Outline
Performance & Results
Operational Review
Research & Development
Opportunities & Ambitions
Outlook
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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)
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key product drivers in the short to medium term – market opportunities for :• Bladestop
Key Product Drivers / Market Opportunities
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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
Key Product Drivers / Market Opportunities
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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
Key Product Drivers / Market Opportunities
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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• Mining technology developments
– robofuel– Robotic idler change
Key Product Drivers / Market Opportunities
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Scott Annual Meeting 2017
Outline
Performance & Results
Operational Review
Research & Development
Opportunities & Ambitions
Outlook
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Outlook ‐ 2017
Market Overview:
Forward project work – 10 Months
Substantial sales pipeline
Diversification
Strong balance sheet to leverage off
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Thank you
Scott Annual Meeting 2017