Slide 1: Investor Presentation: FY14 Full Year Results
INVESTOR PRESENTATION For personal use only FY14 Full Year Results Donald McGurk Managing Director & CEO Michael Barton Chief Financial Officer Sarah Emms Manager, Investor Relations 5 September 2014
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: 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 electronics solutions to global markets Our core products are metal detectors, ra
Slide 4: FY14 Overview
FY14 OVERVIEW For personal use only Annual results Reported profit of $9.2 million Earnings per share of 5.2 cents Annual dividend of 3.0 cents Significant reduction in inventory and debt achieved in the second half of FY14 Radio Communications delivered a much stronger second half and goes into FY1
Slide 5: Strategic Framework
STRATEGIC FRAMEWORK A bias towards internal investment For personal use only During FY14: Monitored opportunities but focused on the core business Developed metal detector to enter new consumer market segment Expanded land mobile radio product roadmap Established Dubai office for Radio Communication
Slide 6: FY14 Group Sales
FY14 GROUP SALES1 For personal use only $25M $15M $20M $55M $5M $15M 1 Sales numbers are approximate 6
Slide 7: Radio Communications: A greatly expanded product offering
RADIO COMMUNICATIONS A greatly expanded product offering For personal use only EnvoyTM software defined HF radio Land mobile radio infrastructure Integrating HF and LMR to supply resilient radio networks that save lives and provide security 7
Slide 8: Radio Communications: New HF radio platform driving growth
RADIO COMMUNICATIONS New HF radio platform driving growth For personal use only Radio Communications revenue 8
Slide 9: Radio Communications: Entering FY15 with strong momentum
RADIO COMMUNICATIONS Entering FY15 with strong momentum For personal use only FY14 summary FY15 objectives Released upgraded digital voice Upgrade and expand LMR product capability for EnvoyTM portfolio Restructured under new management Take EnvoyTM platform to the world and team demonstrate its uni
Slide 10: Metal Detection: A diversified business with revenue streams
METAL DETECTION A diversified business with 3 revenue streams For personal use only Detection of gold nuggets, CONSUMER coins, treasure and artefacts Markets in the developed world Detection of gold as a GOLD MINING commercial enterprise Markets in the emerging world Detection of land mines and unex
Slide 11: Metal Detection: Beginning a series of planned product releases
METAL DETECTION Beginning a series of planned product releases For personal use only Fully waterproof gold detector for the consumer market Released June 2014 Mid-priced Compact Best-in-class detection performance for fine gold Well received by the market …and much more to come during FY15 11
Slide 12: Metal Detection: Continuing to develop world leading technologies
METAL DETECTION Continuing to develop world leading technologies For personal use only FY14 summary FY15 objectives Sales declined significantly in Africa Get closer to our gold detecting markets after record FY13 year and customers Released SDC 2300TM to fill gap in the developed world consumer mar
Slide 13: Mining Technology: Long term solutions to reduce mine operating costs
MINING TECHNOLOGY Long term solutions to reduce mine operating costs For personal use only Best in class mine safety and productivity solutions for open-pit and underground mines We have a unique and integrated capability that no one else in the industry can offer 13
Slide 14: Mining Technology: Entering FY15 with proven mine-ready products
MINING TECHNOLOGY Entering FY15 with proven mine-ready products For personal use only FY14 objectives FY15 objectives Broadened customer base outside of Realise the potential of this blue sky Australia opportunity Won a number of competitive tender Focus on delivering to key global mining processes
Slide 15: FY14 Profit and Loss
FY14 PROFIT AND LOSS For personal use only Reduced revenue and profit caused by significantly lower demand for Minelab metal detectors in Africa Severe price pressure in our African markets as we aggressively fought counterfeiters Final dividend 1.5 cents, record date 12 September 2014, payment date
Slide 16: Engineering Investment
ENGINEERING INVESTMENT An unwavering commitment to product development For personal use only Engineering spend ($m) Engineering spend (% sales) Maintained our investment in engineering to ensure a growing pipeline of world class products 16
Slide 17: Capital Position
CAPITAL POSITION For personal use only Significantly improved balance sheet since 31 December 2013 Significant reduction in gold detector inventories in second half of FY14 Net debt well down on $65 million half year position Net debt of $47 million sits well inside the company’s debt facility of $8
Slide 18: Key Ratios
KEY RATIOS For personal use only Underlying earnings per share (cents) Free cash flow ($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 19: Codan (CDA) – Key Drivers
CODAN (CDA) – 4 KEY DRIVERS Exposure to global markets For personal use only 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 w
Slide 20: Outlook
OUTLOOK For personal use only Business has stabilised Radio Communications goes into FY15 with good momentum Continue to heavily invest in new product development New product pipeline is strong Benefit from full year of new product sales will be realised in FY16 FY15 will be a year of consolidation