Codan Limited · ASX:CDA
Codan — Macquarie Australia Conference 2024
31 slides from Codan's conference presentation, May 7, 2024
Slide 1: ASX cover letter for Macquarie Australia Conference
7 May 2024 Company Announcements Office Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 For personal use only Dear Sir/Madam Macquarie Australia Conference Please find attached a copy of Codan Limited’s investor presentation for release to the market. Yours faithfully Michael
Slide 2: Codan Limited Macquarie Conference
For personal use only CODAN LIMITED Macquarie Conference 8 May 2024 RULT
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer For personal use only This presentation has been prepared by Codan Limited (ABN 77 007 590 The historical information in this presentation is, or is based upon, 605) (Codan). The information contained in this presentation is for information that has been re
Slide 4: Contents
CONTENTS CODAN OVERVIEW For personal use only STRATEGY FINANCIALS BUSINESS UNITS • TACTICAL COMMUNICATIONS • ZETRON • MINELAB 3
Slide 5: Codan Limited
CODAN LIMITED OUR PURPOSE IS TO CREATE LONG-TERM SHAREHOLDER VALUE THROUGH THE DESIGN, DEVELOPMENT AND MANUFACTURE OF INNOVATIVE TECHNOLOGY SOLUTIONS For personal use only A CULTURE OF INNOVATION AND 15 SUCCESS BUILT OVER 60+ YEARS SITES GLOBALLY $456m 800+ FY23 REVENUE EMPLOYEES DIVERSIFIED EARNING
Slide 6: The Codan Group
THE CODAN GROUP CODAN DEVELOPS AND MANUFACTURES INNOVATIVE LIFESAVING, MISSION CRITICAL COMMUNICATIONS AND DETECTION TECHNOLOGY FOR INDIVIDUALS, COMMUNITIES AND GOVERNMENTS. For personal use only Metal Detection Tactical Communications Critical Communications 5
Slide 7: Core Values
CORE VALUES For personal use only CAN-DO HIGH CUSTOMER TRUST & PERFORMING DRIVEN INTEGRITY Positive determination to Commit to defining and Foster a positive experience Act honestly with take the right action to achieving ambitious goals. for all our customers, both transparency and embrace achieve
Slide 8: Leadership Team
LEADERSHIP TEAM For personal use only 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 Gene
Slide 9: The Journey
THE JOURNEY KEY MILESTONES IN OUR HISTORY For personal use only 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 the Codan acquires Minelab, Minelab takes metal Unprecedented
Slide 10: Strategy
For personal use only STRATEGY 9
Slide 11: Building a Stronger Codan
BUILDING A STRONGER CODAN OUR SUCCESS IN “BUILDING A STRONGER CODAN” IS UNDERPINNED BY BOTH FINANCIAL AND OPERATIONAL OBJECTIVES For personal use only GLOBAL OPPORTUNITY AND EXCEPTIONAL CULTURE DIVERSIFIED EARNINGS Large, globally addressable market, notably Fosters collaboration and inclusivity, in
Slide 12: Strategy Overview
STRATEGY OVERVIEW CODAN’S RENEWED GROWTH STRATEGY FOCUSED ON THREE CORE PILLARS THAT DRIVE LONG-TERM VALUE STRATEGY use only 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 For personal • Continued focus across pe
Slide 13: Engineering Investment
ENGINEERING INVESTMENT INVEST IN OURSELVES – STRONG PIPELINE OF PROJECTS For personal use only Engineering spend Engineering Spend by • Sustained engineering investment across ($m) Business Unit segments ensures competitive position H1 Metal Detection maintained H2 Communications • H1 FY24 engineeri
Slide 14: Geographic Expansion
GEOGRAPHIC EXPANSION FY23 PERCENTAGE OF REVENUE BY REGION For personal use only ASIA $18M EUROPE $111M NORTH AMERICA $230M AFRICA $48M FY22 FY23 Africa 26% 11% Asia 4% 4% SOUTH Australia 9% 9% AMERICA Europe 17% 24% $8M AUS North America 41% 50% $41M South America 3% 2% 13
Slide 15: Recent Acquisitions
RECENT ACQUISTIONS DOMO TACTICAL For personal use only COMMUNICATIONS ZETRON May 2021 May 2021 Established technology provider Leading US based company for high bandwidth wireless providing mission critical communications with specialist Purchase Purchase communications and $109.0M Price Price $50.0
Slide 16: ESG Initiatives
ESG INITIATIVES ENVIRONMENT SOCIAL GOVERNANCE For personal use only University scholarship TCFD alignment, support: Women in STEM, Female directors exceeds ESG Reporting Founders PhD ASX benchmark Stakeholder engagement Investment and Core values and ethical around climate related development in our
Slide 17: Financials
For personal use only FINANCIALS 16
Slide 18: Our Baseline
OUR BASELINE Revenue (A$m) Revenue diversity (%) EBIT (A$m) 506 456 437 140 For personal use only 137 39% 42% 348 52% 69% 77% 90 88 54 61% 58% 257 266 48% 195 212 171 31% 23% FY2020 FY2021 FY2022 FY2023 H1 FY24 FY2020 FY2021 FY2022 FY2023 H1 FY24 FY2020 FY2021 FY2022 FY2023 H1 FY24 Communication Met
Slide 19: Business Units
For personal use only BUSINESS UNITS 18
Slide 20: Tactical Communications
For personal use only TACTICAL COMMUNICATIONS 19
Slide 21: Tactical Communications
TACTICAL COMMUNICATIONS Favourable market fundamentals: only • Increasing global military and defence spend in the Five MILITARY Eyes Intelligence1 MARKETS • Smart and safe city initiatives, growing adoption of use Internet of Things (IoT) applications LAW ENFORCEMENT & INTELLIGENCE • Growth in use
Slide 22: Primary Markets and Solutions
PRIMARY MARKETS AND SOLUTIONS Market Primary market and solutions Current primary solutions / applications Key customers For personal use only Radio systems with secure talk groups Military Soldier-to-soldier situational awareness 5-eyes NATO (all services) Embedded technology to limit detection Pri
Slide 23: For personal use only
For personal use only 22
Slide 24: Zetron
ZETRON Favourable market fundamentals: only For personal use 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 • Technology convergence of broadband
Slide 25: Primary Markets and Solutions
PRIMARY MARKETS AND SOLUTIONS Market Primary market and solutions For personal use only Current primary solutions / applications Key customers Primary markets Integrated systems that streamline emergency Emergency service providers Public Safety response and management (e.g. police, fire) Airports /
Slide 26: For personal use only
For personal use only 25
Slide 27: Minelab
MINELAB DELIVERING MARKET-LEADING, INNOVATIVE DETECTORS Favourable market fundamentals: use only • Emerging awareness of recreational metal detection RECREATION / PROFESSIONAL • Shift in consumer preference towards direct-to- Coin & Treasure, Gold Detectors consumer and eCommerce channels • Continue
Slide 28: Primary Markets and Solutions
PRIMARY MARKETS AND SOLUTIONS Solution / application Key customers Distribution channels For personal use only Commercial and artisanal gold prospecting Gold Artisanal gold miners Global dealer and distributor network Global dealers and distributor network Coin & treasure detecting Minelab direct to
Slide 29: Appendix
For personal use only APPENDIX 28
Slide 30: Zetron: True End-to-End Mission Critical Solutions Provider
ZETRON TRUE END-TO-END MISSION CRITICAL SOLUTIONS PROVIDER For personal use only THE ALERT COMMAND AND CONTROL THE DELIVERY THE RESPONSE The Public Mission Critical Wireless First Responders Communications and Field Personnel DATA LOCATION AUTOMATED REPORTING MAPPING ALTERING & ANALYTICS Voice/Text/
Slide 31: Product Range
Product Range Gold Prospecting/Mining Recreational / Professional Countermine For personal use only Surface Detection Fun & Adventure Mines & Triggers Gold Recovery Treasures to Monetise Tactical/MIL & Demining