Slide 1: FY13 Full Year Results Investor Presentation
INVESTOR PRESENTATION For personal use only FY13 Full Year Results Donald McGurk Managing Director and CEO Michael Barton Chief Financial Officer 17 September 2013
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: Overview: Annual results
OVERVIEW For personal use only Annual results Highest reported profit of $45.4 million, almost double that of FY12 37% increase in annual fully franked dividend Strong gggrowth of metal detector sales into new markets Major new product release in Radio Communications Strategic acquisition of land mo
Slide 4: History of Strong Shareholder Returns
HISTORY OF STRONG SHAREHOLDER RETURNS For personal use only Fully franked dividends (cents) Return on equity (%)1 Record date: 13 September 2013 Payment date: 1 October 2013 Final dividend increased 27% to 7 cents p per share Full year dividend increased 37% to 13 cents per share History of strong r
Slide 5: Best-in-class Electronic Solutions for Global Markets
BEST-IN-CLASS ELECTRONIC SOLUTIONS FOR GLOBAL MARKETS For personal use only Codan is a group of electronics-based businesses that capitalise on their fundamental design and manufacturing skills to provide best-in-class best in class electronics solutions to global markets Our core products are metal
Slide 6: Codan Core Values
CODAN CORE VALUES Codan has always been, and continues to be, a ‘values’-driven company. Our values act as a foundation for our future success and are ingrained in our culture. They speak to what Codan is, set the benchmark as to how we will behave and hold ourselves accountable for our actions. Thr
Slide 7: Delivering on Strategic Objectives
DELIVERING ON STRATEGIC OBJECTIVES growing the business organically and by acquisition For personal use only During FY13: Continued to pursue acquisition opportunities Diversify y p Expanded j Radio Communications into adjacent land mobile radio market Expand Leveraged international distribution n
Slide 8: Codan's Group Sales
CODAN’S GROUP SALES1 For personal use only $20M $ $30M $25M $125M $10M $35M 1 Sales numbers are approximate 8
Slide 9: In the Developed World
IN THE DEVELOPED WORLD.... For personal use only Key regions are Australia, US, UK and Western Europe Represents approximately one third of group sales Customers include: retail consumers of Minelab metal detectors governments installing LMR and HF communications systems t mining companies Sales int
Slide 10: In the Emerging World
IN THE EMERGING WORLD.... For personal use only Dominated by Africa Other regions are Central and Latin America, Asia and Eastern Europe HF photo Represents approximately two thirds of group sales Customers include: Small-scale gold miners searching for gold as their primary source of income governm
Slide 11: Metal Detection
METAL DETECTION For personal use only Key markets Detection of gold as a commercial enterprise by small groups of prospectors searching for gold as their primary source of income Small-scale gold Markets are located primarily in the emerging world g mining Represented approximately two thirds of Min
Slide 12: Metal Detection: FY13 Summary and FY14 Objectives
METAL DETECTION For personal use only FY13 summary FY14 objectives bj ti Record sales and p profits achieved Expand p gold detector sales into even more g Expanded gold detector sales into more regions and continue to diversify revenue regions streams across core markets Increased marketing support
Slide 13: Small Scale Gold Detecting Markets
SMALL SCALE GOLD DETECTING MARKETS For personal use only 10 to 13 million people across the world participate in small-scale gold mining1 Minelab detectors are a disruptive innovation which has resulted in a more successful and environmentally friendly method of mining gold Gold detector sales in th
Slide 14: Countering the Counterfeiters
COUNTERING THE COUNTERFEITERS For personal use only GENUINE MINELAB; GENUINE PERFORMANCE Security labels on product cartons of all gold series detectors and coils Minelab authorised dealer confirms product authenticity by inspecting the label through a special viewer SMS verification system for GPX
Slide 15: Radio Communications
RADIO COMMUNICATIONS For personal use only Key markets Sold to global security, peacekeeping, humanitarian and military customers Emerging world focus High Frequency B t in Best i class, l li bl simple reliable, i l tto use, cost-effective t ff ti products d t Radio (HF) High frequency radios for lo
Slide 16: Radio Communications: FY13 Summary and FY14 Objectives
RADIO COMMUNICATIONS For personal use only FY13 summary FY14 objectives bj ti Acquisition of LMR business Compete more broadly in the LMR market and expand internationally Release of EnvoyTM software software-defined defined HF radio Develop strategic technology roadmap for More advanced product fea
Slide 17: Mining Technology
MINING TECHNOLOGY For personal use only Key offerings to the hardrock underground mining market Mine Management & Mine scheduling and simulation for development mines Control which leads to improved productivity Warning and visualisation of nearby traffic and personnel in an onscreen 2 dimensional i
Slide 18: Mining Technology: FY13 Summary and FY14 Objectives
MINING TECHNOLOGY For personal use only FY13 summary FY14 objectives bj ti Successfully delivered pilots with blue-chip blue chip T iti business Transition b i ffrom product d t mining customers at mines located in Australia, Indonesia, Tanzania, Chile and development stage to a commercial entity Pa
Slide 19: FY13 Profit and Loss
FY13 PROFIT AND LOSS For personal use only Total revenue of $244.3 million (36% increase over FY12) Driven by the spike in growth of metal detector sales into the small‐scale gold mining fields of Africa Net profit of $45.4 million is a record for the company (a 63% increase over FY12 underlyi
Slide 20: FY13 Profit and Loss
FY13 PROFIT AND LOSS For personal use only Underlying business performance Administrative expenses Engineering expenses FY13 FY12 $m % to sales $m % to sales % change Revenue $244.3 100% $179.4 100% 36% Underlying business performance EBITDA $76.3 31% $51.7 29% 48% EBIT $64.7 26% $43.2 24% 50% Net i
Slide 21: Revenue by Division
REVENUE BY DIVISION For personal use only Total revenue by division FY13 FY12 $m % of total sales $m % of total sales Communications Products $58.0 24% $66.4 37% Metal Detection Products $166.3 68% $98.6 55% Mining Technology $14.5 6% $9.3 5% Other* $5.5 2% $5.1 3% Total revenue $244.3 100% $179.4 1
Slide 22: Capital Position
CAPITAL POSITION For personal use only Strong balance sheet with significant debt facilities available ― Net debt increased by $9 million due to the acquisition of the LMR business and investment in Minelab inventory ― Focus on maintaining balance sheet strength to allow Codan to continue to explo
Slide 23: Key Ratios
KEY RATIOS For personal use only Underlying earnings per share (cents) Free cash flow ($m)2 Return on invested capital (%)1 Gearing (%)3 1Return on invested capital = net operating profit after tax / average capital employed 2 Free cash flow = operating cash flow + interest – cash outflow for produc
Slide 24: Codan (CDA) - Key Drivers
CODAN (CDA) - 4 KEY DRIVERS For personal use only Exposure to global markets Activity in 150 countries across the globe Long history of success in emerging markets Superior technology and market-leading brands Development and manufacture of sophisticated electronics products and software Patented wo
Slide 25: Outlook
OUTLOOK For personal use only Sales can sometimes be volatile: gold discoveries can occur at any time and anywhere communications projects can have long lead times Entering FY14 without record level of sales momentum of gold detectors Expect first half FY14 profit to be consistent with first half of