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

2008: Purchased international mining services business Rocklabs Ltd. 2000: A 100% export company 1913: J & AP Scott Removed from the commenced trading Dunedin stock exchange 2010: Completed 1997: Relisted on purchased of reference the stock exchange materials business from Malcolm Smith 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 Post WWII: Developed and SCT focuses on design and 2011: Acquired a Involved in the merged – part of building of appliance 50.65% controlling stake appliance industry Donaghy’s production systems of 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 Meat Processing Global Mining Industrial High Temperature Industry Automation Industry – Automation Superconductors Laboratory Sample Solutions Testing (Rocklabs) (Rocklabs)

Key Market Divisions Key Market Divisions  With the acquisition of HTS-110, SCT now operates in five main market segments Industrial High Temperature High Temperature Appliances Mining Meat Processing Automation Superconductors Solutions 100% export Worldwide in Predominantly NZ Predominantly NZ High temperature      approximately 100 and Australia and Australia superconductor Worldwide (in  countries electromagnets p particular North 3 – 5 projects per p j p Multiple industries p   America, Asia and 30 agents globally year with project – non specialised Worldwide   Europe) values of up to Historically – standard, Largely robotic Multiple industries –    NZ$4m 5 – 10 systems per off the shelf solutions non specialised  Stepping stone  year (ringmills, crushes), then Substantial R&D in  (incubator) for Magnets supplied to  combined individual units areas that have Project values future original equipment  together into automated g traditionally been y range from NZ$1m range from NZ$1m specialisation specialisation manufacturers manufacturers solutions difficult to achieve to NZ$18m (OEM’s) automated Current and future –  Preferred supplier to solutions Ongoing R&D for   combining SCT’s robotics most of the major new products and and automation expertise global appliance applications with Rocklabs industry companies knowledge knowledge 5

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 of 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 NMR Cryocoolers Custom Magnets Magnets • Coils • Process • HTS • Scientific research monitoring • Current • Liquified • Hard-drive industry leads • Yield gases • Synchrotron Synchrotron optimisation optimisation • MRI • Ion-beam • Screening • Mag-sep… • QA MRI • Orthopaedic • Small mammal • fMRI

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

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 1997 through 2011 Shareholders Equity $000 Shareholders Equity $000 40,000 35,000 Cumulative Dividend $000 30,000 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 ‐ ‐ 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 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

2011 Revenue by Product Type 2011 Revenue by Product Type 2010 Revenue by Product Type 2010 Revenue by Product Type Standard equipment Standard equipment Automated Automated equipment equipment

2011 Revenue by Industry y y 2010 Revenue by Industry 2010 Revenue by Industry High Temperature Industrial Industrial Superconductors Automation Automation Meat Processing Processing Meat Processing Appliances Appliances Appliances Mining Mining

2011 Revenue by Region y g 2010 Revenue by Region y g Africa & Africa & Middle East Middle East Russia & Russia & Former Former Former States States North North Asia America America Asia Australia & Pacific Is Australia & Pacific Is South South South America New Zealand America Other Europe New Zealand Other Europe

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) ▲ Some licence arrangements for others’ patents ▲ S li t f th ’ t t ▲ 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

to 2012 and beyond Looking Ahead -

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