VISION VISION..To be the Global Innovator in Automation To be the - - PowerPoint PPT Presentation

ANNUAL MEETING – DECEMBER 2011 Presentation by Chris Hopkins Managing Director & CEO

VISION To be the Global Innovator in Automation VISION…..To be the Global Innovator in Automation

2008: Purchased 1913: J & AP Scott commenced trading Removed from the Dunedin stock 2000: A 100% export company international mining services business Rocklabs Ltd. exchange 1997: Relisted on the stock exchange 2010: Completed purchased of reference materials business from Malcolm Smith

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

Post WWII: Involved in the appliance industry Developed and merged – part of Donaghy’s SCT focuses on design and building of appliance production systems 2011: Acquired a 50.65% controlling stake

• f HTS-110 in March

2001: Diversified into niche markets and began exporting to Asia and Europe

3

AREA OF BUSINESS FOCUS

Global Appliance Global Appliance Industry Meat Processing Automation Industrial Automation Solutions Global Mining Industry – Laboratory Sample Testing (Rocklabs) High Temperature Superconductors (Rocklabs)

Key Market Divisions Key Market Divisions

 With the acquisition of HTS-110, SCT now operates in five main market segments Industrial High Temperature Appliances Mining Meat Processing Automation Solutions High Temperature Superconductors



100% export



Worldwide (in particular North



Worldwide in approximately 100 countries



Predominantly NZ and Australia



3 – 5 projects per



Predominantly NZ and Australia



Multiple industries



High temperature superconductor electromagnets p America, Asia and Europe)



5 – 10 systems per year



Project values range from NZ$1m



30 agents globally



Historically – standard,

• ff the shelf solutions

(ringmills, crushes), then combined individual units together into automated p j p year with project values of up to NZ$4m



Substantial R&D in areas that have traditionally been p – non specialised



Largely robotic



Stepping stone (incubator) for future specialisation



Worldwide



Multiple industries – non specialised



Magnets supplied to

• riginal equipment

manufacturers range from NZ$1m to NZ$18m



Preferred supplier to most of the major global appliance companies g solutions



Current and future – combining SCT’s robotics and automation expertise with Rocklabs industry knowledge y difficult to achieve automated solutions specialisation manufacturers (OEM’s)



Ongoing R&D for new products and applications 5 knowledge

Highlights of 2010 /2011

▲ Acquisitions ▲ Malcolm Smith Reference Materials ▲ HTS-110 ▲ HTS-110 ▲ QMT (China)

HTS‐110 Limited

HTS-110 is a New Zealand company specialising in the design and manufacture

• f HTS magnets for applications that require

homogenous, high magnetic fields. HTS-110 products are robust, compact, and cryogen free.

• Established in April 2004 building on 20 years of
• Established in April 2004 building on 20 years of

HTS R&D in Industrial Research Limited

• Approx. 20 staff
• Access to Industrial Research’s HTS machine and

Access to Industrial Research s HTS machine and cryogenic R&D programme

Substantial shareholders

NZ Government 100% 50.6% 35.8% 13.6%

Product portfolio Product portfolio

HTS Components Standard and Custom Magnets NMR Magnets Cryocoolers

• Coils
• Current

leads

• Scientific research
• Hard-drive industry
• Synchrotron
• Process

monitoring

• Yield
• ptimisation
• HTS
• Liquified

gases Synchrotron

• Ion-beam
• Mag-sep…
• ptimisation
• Screening
• QA
• MRI

MRI

• Orthopaedic
• Small mammal
• fMRI

QMT Trade Flow

Shipments from QMT to US Customers Shipments from QMT to US C t Shipments from QMT to EU Customers Shipments from QMT Customers Orders fromTeknatool NZ to APAC Customers 12 fromTeknatool NZ to QMT

QMT Factory

Confidential 13

Cut out of DVR Motor

Confidential 14

NOVA DVR 2024 (incorporating DVR Motor) ( p g )

Confidential 15

Highlights of 2010 /2011

▲ Acquisitions ▲ Operating Growth (Revenue up 15% & NPBT up 32%) ▲ Research & Development ▲ Research & Development ▲ Capital Raising ▲ Management team in place

1997 through 2011

Shareholders Equity $000

1997 through 2011

Cumulative Dividend $000

30,000 35,000 40,000

Shareholders Equity $000

15,000 20,000 25,000 15,000 20,000 25,000 ‐ 5,000 10,000 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 ‐ 5,000 10,000 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 199 199 199 200 200 200 200 200 200 200 200 200 200 201 201 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20

2010 Revenue by Product Type 2011 Revenue by Product Type 2010 Revenue by Product Type 2011 Revenue by Product Type

Standard equipment Standard equipment Automated equipment Automated equipment

2010 Revenue by Industry 2011 Revenue by Industry

Meat Processing Industrial Automation

2010 Revenue by Industry

Industrial Automation High Temperature Superconductors

y y

Appliances Processing Appliances Meat Processing Appliances Mining Mining

2010 Revenue by Region 2011 Revenue by Region

Russia & Africa & Middle East

y g

Russia & Former Africa & Middle East

y g

North America Asia Former States North America Asia Former States South Australia & Pacific Is South Australia & Pacific Is South America Other Europe New Zealand America Other Europe New Zealand

2011 $000 2010 $000 Revenue 53,603 46,589 Raw materials & consumables (25,306) (22,215) Wages & salaries (17,394) (14,185) Other expenses (9,249) (4,649) Net profit before tax 7,313 5,540 Total assets 47,133 36,578 Equity 35,784 21,411 Cash flow from operations 3,381 4,504 Dividend per share 7.00 cents 5.25 cents

Research and development

▲ for our customer ▲ for industries (meat) ▲ for industries (meat) ▲ for ourselves (future growth)

What do we get for our R&D Spend?

▲ New products for Scott ▲ New business opportunities ▲ New business opportunities ▲ Extra in-house technology & intellectual property

Intellectual Property Portfolio

▲ Protection across Scott group (including subsidiaries and joint ventures) ventures) ▲ Two trademark applications ▲ Patent applications for 17 inventions (grantings for 11) ▲ S li t f th ’ t t ▲ Some licence arrangements for others’ patents ▲ Multi-country filings (target markets) ▲ Benefit ▲ Protect against copying ▲ Marketing value ▲ Collateral and protection during strategic discussion ▲ Collateral and protection during strategic discussion

Scott Milktech

Looking Ahead

• to 2012 and beyond

Risks ▲ Slow path to commercialisation ▲ NZD exchange rate ▲ Global economic uncertainty ▲ Technical and commercial

Looking Ahead Looking Ahead

• to 2012 and beyond

▲ Scott’s Innovation ▲ Scott’s relationships with customers ▲ Current workload and forward orders ▲ Develop strategic partnerships ▲ Develop strategic partnerships .............will drive growth and further successful diversification successful diversification