Slide 1: Strong Turnaround Continues - Annual General Meeting
For personal use only STRONG TURNAROUND CONTINUES 2012 Donald McGurk Managing Director & CEO ANNUAL Michael Barton Chief Financial Officer GENERAL Sarah Emms Manager, Investor Relations MEETING 8 September 2015
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only Disclaimer This presentation has been prepared by Codan Limited (ABN 77 007 590 605) (Codan). The information contained in this presentation is for information purposes only and is not investment, financial product, legal or tax advice. This pres
Slide 3: What We Do: Technology Solutions for Global Markets
WHAT WE DO: TECHNOLOGY SOLUTIONS FOR GLOBAL MARKETS For personal use only Codan is an Australian based global company that designs, develops and manufactures technology products, solutions and systems for government, corporate, NGO and consumer markets Over our 56 year history we have developed a po
Slide 4: FY15 Overview: Strong Turnaround Continues
FY15 OVERVIEW STRONG TURNAROUND CONTINUES For personal use only Annual results Profit of $12.5 million - up 36% Earnings per share of 7.1 cents Annual fully franked dividend of 3.5 cents Net debt cut by $11.5 million Radio Communications revenue increased 18% and segment contribution increased 33% M
Slide 5: Competitive Advantage
COMPETITIVE ADVANTAGE CREATING SHAREHOLDER VALUE OVER THE LONG TERM For personal use only 1. Superior patented technology Ownership of unique and protectable IP Military encryption Patented world’s-best metal detection technology 2. Market leading brands Minelab = world’s best metal detection techno
Slide 6: Globally Diversified Sales
GLOBALLY DIVERSIFIED SALES For personal use only Selling into 150 countries $25M $20m $15M $38m $35 $20m m $10m $10m $45m $20M $50m $55M $2m $30m $30m $5M $15M FY15 ‐ Sales numbers are approximate 6
Slide 7: Investment in Engineering & Design
INVESTMENT IN ENGINEERING & DESIGN For personal use only More than 100 engineers across the globe Teams in Adelaide (Minelab, HF Radio), Perth (Minetec) and Canada (Land Mobile Radio) Software, electronic and mechanical engineering Development of unique and protectable IP Working collaboratively wit
Slide 8: Strategic Framework
STRATEGIC FRAMEWORK Significant progress across all three divisions For personal use only During FY15: Significant take-up of new GO-FIND® metal detector Progressed LMR technology roadmap Capitalise on Opened Minetec office in South Africa emerging Gaining traction with global miners opportunities O
Slide 9: Business Unit Update
BUSINESS UNIT UPDATE For personal use only Communications using High Finding gold, treasure and land Tracking assets to enhance Frequency (HF) and Land mines mine safety and productivity Mobile Radio (LMR) systems 9
Slide 10: Radio Communications: HF Long Range Digital Radio
RADIO COMMUNICATIONS HF – Long Range Digital Radio (LRDR) For personal use only Codan’s Envoy® Digital Radio has rejuvenated the use of HF radio Enabled integrated systems Secure global networks Superb voice quality Taken up by agencies worldwide Won major Australian utilities contract Envoy® capabi
Slide 11: Radio Communications: Land Mobile Radio
RADIO COMMUNICATIONS Land Mobile Radio (LMR) For personal use only Stratus™ product launch: The industry’s first and only solution that extends LMR through cellular networks Launched in March, significant interest from over 20 major US agencies Won major US government order in July Demonstrations ta
Slide 12: Radio Communications: New LMR Products to Drive Growth
RADIO COMMUNICATIONS New LMR products to drive growth in the medium term For personal use only FY15 Summary FY16 Objectives 18% revenue growth over FY14 Further enhance Envoy® Segment contribution increased 33% Bid into larger communications projects Envoy® sales gained further traction Continue LMR
Slide 13: Metal Detection: GPZ 7000 Release
METAL DETECTION GPZ 7000® release For personal use only GPZ 7000® Super Gold Detector “Far surpasses GPX® detectors for detecting gold at greater depth.” – Bruce Candy, GPZ Inventor Released February 2015 in Australia, US & Europe Very successful release, driving improved 2nd half performance of Min
Slide 14: Metal Detection: GO-FIND Release
METAL DETECTION GO-FIND® release For personal use only GO‐FIND® Detector Series Released May 2015 in Australia, US & Europe Redefining entry level hobby and leisure detecting Three models Retail pricing US$179 to US$309 Wireless detecting via smartphone Apps to: identify coins record finds on Google
Slide 15: A Product at Every Price Point
METAL DETECTION A product at every price point For personal use only 15
Slide 16: Countermine: GROUNDSHARK Handheld Dual Sensor
COUNTERMINE GROUNDSHARK Handheld Dual Sensor For personal use only The most technically advanced dual-sensor handheld detector on the market Combines metal detection & ground penetrating radar Detects plastic mines in highly mineralised soils Developed in partnership with NIITEK® Sold to Polish Mini
Slide 17: Metal Detection: Optimising GPZ 7000 and GO-FIND Distribution
METAL DETECTION Optimising GPZ 7000® and GO-FIND® distribution For personal use only FY15 Summary FY16 Objectives Released 2 significant new product Enter more developing markets platforms Introduce GPZ 7000® in Africa Opened retail and distribution centre Develop global retail network to maximise i
Slide 18: Mining Technology: Value Proposition
MINING TECHNOLOGY Value proposition For personal use only Customer requirements Legislation compliance Cost reduction Zero fatalities Operational efficiency Reduced accident rate Profitability WASP SafeDetect® Communications Infrastructure SMARTS® Proximity Awareness High precision tracking & locati
Slide 19: Mining Technology: Unified Platform for Safety & Productivity
MINING TECHNOLOGY Unified Platform for Safety & Productivity For personal use only Safety Productivity WASP ® High Precision Tracking & Communications Delivering Return on Investment through a Safety Solution 19
Slide 20: Mining Technology: Securing Commitments for Full-Scale Deployment
MINING TECHNOLOGY Securing commitments for full-scale operational deployment For personal use only FY15 Summary FY16 Objectives Successful completion of pilot projects Secure customer commitment to full- scale operational deployments Baselined product development and systems integration Maximise val
Slide 21: Delivering on Our Commitment: Revenue and EBITDA Growth
DELIVERING ON OUR COMMITMENT For personal use only Strong revenue and EBITDA growth Profit $12.5 million, up 36% Final dividend 2.0 cents, record date 15 September 2015, payment date 1 October 2015 Full year dividend 3.5 cents – 49% payout ratio Revenue EBITDA* $ millions $ millions 9% revenue growt
Slide 22: Underlying NPAT
UNDERLYING NPAT Solid profit margins For personal use only 41% growth in underlying NPAT on 9% sales growth in FY15 due to strong gold detector margins NPAT to Sales % 10% 16% 14% 16% 19% 7% 9% Gold Rush Years 22
Slide 23: Delivering on Our Commitment: Underlying Performance
DELIVERING ON OUR COMMITMENT For personal use only Administrative expenses Underlying business performance FY15 FY14 ($ millions) $m % to sales $m % to sales Revenue $143.9 100% $132.3 100% Underlying business performance EBITDA $29.9 21% $22.6 17% EBIT $19.3 13% $13.6 10% Net interest ($2.5) -2% ($
Slide 24: Engineering Investment
ENGINEERING INVESTMENT Continued commitment to product development For personal use only Engineering spend ($m) Engineering spend (% sales) Investment in new product development maintained at historically high levels Committed to accelerated new product development and engineering as we fast-track k
Slide 25: Balance Sheet
BALANCE SHEET For personal use only Continued strong improvement $30.7 million cash generated from operations over the year, $25.1 million in the second half Net debt reduced $18 million in the second half, to $35.4 million; well within debt facility of $85 million Gearing ratio reduced from 30% (De
Slide 26: Key Ratios
KEY RATIOS For personal use only Underlying earnings per share (cents) Free cash flow ($m)2 Return on equity (%)1 Gearing (%)3 1Return on equity calculated as net profit after tax divided by total equity 2 Free cash flow = operating cash flow + interest – cash outflow for product development, IP acq
Slide 27: Key Trends
KEY TRENDS Informing our future strategy For personal use only Connectivity – the pervasive connection of systems, platforms and applications GO-FIND®, STRATUS™, WASP® Big Data – the capture of large data sets and the use of predictive analytics to increase operational Data Driven Mining Operations
Slide 28: Facilities: Consolidation of Adelaide Operations
FACILITIES Consolidation of Adelaide operations For personal use only Consolidation of Adelaide operations onto one site Improved facilities, making Codan an employer of choice Capacity for future growth On track for move in December 2015 28
Slide 29: Outlook
OUTLOOK For personal use only Compelling value propositions in all of our markets New product pipeline is strong Creating a sustainable foundation for growth over the next two to three years Finalising the process of Board regeneration Plan to provide further business update at October AGM 29