Slide 1: FY25 Half-year investor presentation cover letter
21 February 2025 Company Announcements Office Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam FY25 Half-year investor presentation Please find attached a copy of Codan Limited’s investor presentation dated 21 February 2025 for release to the market. Yours faith
Slide 2: H1 FY25 Results
H1 FY25 Results Codan Limited 21st February 2025
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer This presentation has been prepared by Codan Limited (ABN 77 007 590 605) This presentation may contain forward‐looking statements with respect to the (Codan). The information contained in this presentation is for information purposes financial condition, r
Slide 4: Contents
CONTENTS RESULT HIGHLIGHTS BUSINESS UNITS • Tactical Communications | DTC • Zetron • Minelab STRATEGY UPDATE OUTLOOK AND SUMMARY APPENDIX 3
Slide 5: Building a Stronger Codan
BUILDING A STRONGER CODAN Our success “building a stronger Codan” is underpinned by both financial and operational objectives GLOBAL OPPORTUNITY AND EXCEPTIONAL DIVERSIFIED EARNINGS CULTURE Large, globally addressable Fosters collaboration market, notably within and inclusivity, inspiring developed
Slide 6: H1 FY25 Group Highlights
H1 FY25 GROUP HIGHLIGHTS • Strong Group financial performance, reflecting strong organic growth across its operations, with Communications business the key driver Revenue EBIT • Group revenue of $305.6 million, delivering net $305.6m profit after tax of $46.1 million $65.8m • All profitability metri
Slide 7: H1 FY25 Performance
H1 FY25 PERFORMANCE • Delivered sustainable growth over the last four consecutive PROFIT & LOSS Dec-24 Dec-23 Change halves, highlighting strong operational execution $m $m % Revenue • Communications performance the key driver of Group’s Communications $187.0 $153.6 22% result, achieving revenues of
Slide 8: Financial Position
FINANCIAL POSITION Flexibility to support future growth opportunities Balance Sheet Dec-24 Jun-24 Change • Net debt increased $48.7 million to $124.1 million at 31- Dec-24 having funded: $m $m $m Receivables 106.4 93.9 12.5 o $36.1 million for the Kägwerks acquisitions; and Inventories 131.3 110.1 2
Slide 9: Change in Net Debt Position
CHANGE IN NET DEBT POSITION CHANGES IN NET DEBT (DEC-24 VS JUN-24, $M) 64.7 (21.8) (36.1) (75.4) (26.2) (29.3) (124.1) Jun-24 Operating Dividends Kägwerks Working Capital Investment in Dec-24 Net Debt Cashflow Acquisition¹ Increase Capex & Engineering Net Debt 1. Cash consideration for Kägwerks acqu
Slide 10: Engineering Investment
ENGINEERING INVESTMENT Invest in ourselves - strong pipeline of projects • Ongoing engineering investment across segments supports competitive positioning and drives inorganic growth ENGINEERING ENGINEERING SPEND BY strategy SPEND ($M)1 BUSINESS UNIT • Global team of highly skilled engineers and res
Slide 11: Business Units
Business Units 10 10
Slide 12: Communications
COMMUNICATIONS • All key strategic financial metrics achieved, reflecting strong overall performance • H1 FY25 Communications revenue increased 22% vs the pcp, to $187.0 million as organic growth exceeded top end of targeted 10-15% growth range, further enhanced with acquisitions • Communications se
Slide 13: Tactical Communications
TACTICAL COMMUNICATIONS • Tactical Communications delivered strong results, primarily due to growth achieved in the law enforcement and unmanned systems verticals • Leading MESH radio technology, demonstrating exceptional performance in harsh and contested environments • Wide ranging application giv
Slide 14: Zetron
ZETRON • Zetron delivered growth in line with expectations in H1 FY25, with all geographic regions contributing • Continues to strengthen position in critical sectors such as public safety, utilities and transport by focusing on innovation • Some notable H1 achievements include: o Continued growth i
Slide 15: Minelab
MINELAB • H1 FY25 Minelab revenues increased 5% vs the pcp, to $115.0 million • Minelab Africa delivered a better than expected result, increasing revenues 48% vs the pcp to $45.0 million (+15% vs H2 FY24), driven by West Africa as the Sudan region of Northeast Africa remains disrupted • As a result
Slide 16: Strategy Update
Strategy Update Ea CODAN
Slide 17: Strategy Overview
STRATEGY OVERVIEW Codan’s growth strategy focuses on three core pillars that drive long-term value VEST IN OURSELVES NED CA PITAL ALL OCA IN LI TIO IP SC N DI GETTING QUALITY OF ACQUISITIONS THAT EVERYTHING RIGHT TOPLINE CREATE VALUE • Continued focus across people, • Global opportunity - Ongoing •
Slide 18: Recent Acquisitions
RECENT ACQUISITIONS Successfully acquiring, integrating and delivering value DOMO TACTICAL COMMUNICATIONS ZETRON May 2021 May 2021 Established technology provider Leading US based company for high bandwidth wireless providing mission critical Purchase Purchase communications and communications with
Slide 19: Near Term Objectives
NEAR TERM OBJECTIVES Successful execution will see a more-balanced, integrated and sustainable Codan Enhance offering as full solutions Expand systems support & Promote new products & expand provider predictability of recurring revenue channels to market • First release of the multi-waveform radio •
Slide 20: Outlook & Summary
Outlook & Summary CODAN
Slide 21: Group Outlook
GROUP OUTLOOK When considering the outlook for the balance of FY25: o Communications continues to target organic revenue growth in a 10 to 15% range. Including the benefit of Kägwerks, acquired during FY25, Communications overall revenue growth is expected to exceed 15% for the full year; o If busin
Slide 22: Appendix
Appendix CODAN
Slide 23: Globally Diversified Technology Company
GLOBALLY DIVERSIFIED TECHNOLOGY COMPANY Codan develops and manufactures innovative lifesaving, mission critical communications and detection technology for individuals, communities and governments. 150+ Countries where Codan products & solutions sold 900+ Global employees, >30% engineering Codan’s c
Slide 24: The Journey
THE JOURNEY Key milestones in Codan’s history FOUNDED ASX LISTED MINELAB ACQUISITION DOMINANCE OF METAL COVID ERA A STRONGER CODAN 1959 2003 2008 DETECTION 2021 2021 > TODAY Friends from University Codan Limited lists on Codan acquires Minelab, Minelab takes metal Unprecedented A strong diversified
Slide 25: Leadership Team
LEADERSHIP TEAM Alf Ianniello Michael Barton Marjolijn Woods Managing Director Chief Financial Officer Chief Human and CEO and Company Secretary Resources Officer Ben Harvey Paul Sangster Scott French Daniel Hutchinson Executive General Executive General Manager, Executive General Executive General
Slide 26: Primary Markets: Tactical Communications
TACTICAL COMMUNICATIONS Communications solutions that enable customers to be connected FAVOURABLE MARKET FUNDAMENTALS: MILITARY • Increasing global military and defence spend in the Five Eyes Intelligence community1 PRIMARY MARKETS • Smart and safe city initiatives, growing adoption of Internet of T
Slide 27: Primary Market: Zetron
ZETRON True end-to-end mission critical solutions provider FAVOURABLE MARKET FUNDAMENTALS: PRIMARY MARKET • Government funding environment ~US$10-15 billion Next PUBLIC SAFETY Generation 911 funding, upgrading emergency response communications • Long term contracts – recurring revenue stream • Techn
Slide 28: Primary Markets: Minelab
MINELAB Delivering market-leading, innovative detectors FAVOURABLE MARKET FUNDAMENTALS: • Emerging awareness of recreational metal detection RECREATION / PROFESSIONAL • Shift in consumer preference towards direct-to-consumer Coin & Treasure, Gold Detectors and eCommerce channels • Continued geograph
Slide 29: Contact Us
CONTACT US Codan Limited | ASX: CDA Technology Park 2 Second Avenue Mawson Lakes SA 5095 Australia Phone: +61 (0)8 8305 0392 Email: info@codan.com.au Website: codan.com.au