Slide 1: Investor Presentation: Business Performance Half Year 2012
For personal use only Investor Presentation Business Performance Half Year 2012 Donald McGurk Managing Director and CEO Michael Barton Chief Financial Officer Steve Hannah General Manager, Minetec 23 February 2012
Slide 2: Financial Highlights
Financial Highlights For personal use only Underlying profit maintained at $10.4 million Interim dividend maintained at 44.00 cents Well placed to deliver another good year in FY12 Acquisition of Minetec brings diversification into mining sector Strong profit growth achieved in Radio Commu
Slide 3: Divisional Overview
Divisional Overview For personal use only Communications Metal Detection Mining Technology Radio Communications Satellite Communications Page 3
Slide 4: Strategic Options
Strategic Options For personal use only Codan Radio Mining Satcom Metal Detection Communications Technology Strategic g Invest in Ourselves considerations Expand our Businesses core Page 4
Slide 5: Strategic Options
Strategic Options For personal use only - Diversification: - Acquisition Time forr return n Expand our businesses: Ris - Adjacent markets / sk technologies ___ - Acquire competitors T Invest in ourselves: - Organic growth gro th - Fast track product development - Market a e e expansion pa s o + Page
Slide 6: Communications - highlights
Communications - highlights For personal use only Radio Communications: − Continued market position improvement in the targeted global security, security military and peacekeeping segments − Significant investment to fast track new product development continues; progressing to plan − Initiatives t
Slide 7: Minelab Metal Detectors
Minelab Metal Detectors Metal Detection Products For personal use only Minelab Mi l b supplies li metal t l detection d t ti products d t and d systems t for f consumer, mine clearance and artisanal gold mining markets Premium Coin & Treasure Consumer: Detection of gold nuggets, coins, treasure an
Slide 8: Minelab Metal Detectors - highlights
Minelab Metal Detectors Metal Detection Products --highlights highlights For personal use only Lower sales into North East Africa due to Chinese manufactured counterfeit product entering this market Implementing a comprehensive action plan to address this counterfeit issue Sales in all other m
Slide 9: Minetec Acquisition
For personal use only Mi t Acquisition Minetec A i iti Page 9
Slide 10: Why the Mining Technology Industry?
Why the Mining Technology Industry? For personal use only Mining boom is projected to continue for at least 10 years New technologies are required to improve mine safety and productivity Australia is considered to be the world’s most innovative mining technology community Opportunity to cons
Slide 11: Minetec Overview
Minetec Overview For personal use only Founded in 2000 Employs approximately 50 staff Perth-based Perth based provider of communication solutions to the mining sector Minetec has grown significantly over the past few years Core business Technology gy Communications systems expertise Tech
Slide 12: Vertical Growth Map
Vertical Growth Map For personal use only Enterprise Solutions Remote Collision Traffic Situational Autonomous Integrated Operations Avoidance Control Awareness Security Vehicles Solutions Process SMARTS SCADA Planning Messaging Automation Traffic Applications Tracking Tags Control Simulation Video
Slide 13: Technologies and Branding
Technologies and Branding For personal use only Hard rock underground mining: Delivering a value ELF Technology proposition utilising: Wi-Fi Networks Core communications systems expertise Tagging-Tracking gg g g In-house technology and Collision Detection product development Traffic Management
Slide 14: Competitive Landscape
Competitive Landscape For personal use only Market leading technology, providing Enterprise-Wide Solutions Hi Higher-spec h t h l technology “ELF” th than allll competitors tit ffor underground d dddata t and voice communications Collision detection technology outperforms competitors Proprie
Slide 15: Markets
Markets Markets For personal use only Existing Markets Global mining operators with Australian operations Leverage off already established market positions in Australia and Southern Africa G Growth th Strategies St t i Follow our globally active customers as they expand their mining operations
Slide 16: Financials
Financials For personal use only Acquisition price: Up front cost Up-front $6m Earn out App. $4m If certain earn-out targets are achieved over the next two and a half years 2nd Half Year Financial Forecast: Sales $9m EBITDA $1m Project sales leave a trail of product sales and site services revenue A
Slide 17: Key Synergies
Key Synergies For personal use only Minetec is at a point where it requires additional funding, funding improved processes and assistance to maintain its significant growth rate: Sales and Marketing Leverage Codan’s core competence to develop the business internationally: ─ Developing world countr
Slide 18: Financial Overview — P&L
Financial Overview — P&L For personal use only Half year results Half Year Half Year Half Year Profitability maintained Dec 11 Dec 10 Dec 09 despite lower $m % $m % $m % revenues R Revenue Communication products 36.6 49% 33.0 39% 38.1 43% Improved profitability Metal detectors 35.2 48% 46.6 56%
Slide 19: Financial Overview — Balance Sheet
Financial Overview — Balance Sheet For personal use only December June December '11 ‘11 '10 Increase I in i bborrowings i primarily i il $m due to working capital movements Working capital $m $m $m due to changes in business activity ti it and d operations ti Receivables 16.0 14.6 15.2 Inventories
Slide 20: Financial Overview — Dividends
Financial Overview — Dividends For personal use only FY12 FY11 FY10 FY09 Interim dividend per ordinary share 4.0 cents 4.0 cents 3.5 cents 3.0 cents Final dividend per ordinary share 5.0 cents 4.5 cents 3.5 cents Total dividend per ordinary share 9.0 cents 8.0 cents 6.5 cents Franking 100% 100% 100%
Slide 21: Outlook
Outlook For personal use only Codan operates in global markets, short-term outlook for world economy is uncertain The core Minelab business remains strongg The sales pipeline for Radio Communications continues to strengthen Evaluating our strategic options for Satellite Communications and ex