Slide 1: FY24 Full-year investor presentation (ASX cover letter)
22 August 2024 Company Announcements Office Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam FY24 Full-year investor presentation Please find attached a copy of Codan Limited’s investor presentation dated 22 August 2024 for release to the market. Yours faithfull
Slide 2: FY24 Full Year
FY24 FULL YEAR Codan Limited 22nd August 2024
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer This presentation has been prepared by Codan Limited (ABN 77 007 590 605) This presentation may contain forward‐looking statements with respect to the (Codan). The information contained in this presentation is for information purposes financial condition, r
Slide 4: Contents
CONTENTS RESULT HIGHLIGHTS BUSINESS UNITS • Tactical Communications | DTC • Zetron • Minelab ENVIRONMENT, SOCIAL & GOVERNANCE STRATEGY UPDATE OUTLOOK AND SUMMARY APPENDIX 3
Slide 5: FY24 Group Highlights
FY24 GROUP HIGHLIGHTS • Strong Group financial performance • Group revenue of $550.5 million, delivering underlying net profit Revenue EBIT after tax of $81.3 million $550.5m $113.9m • Strong organic growth, further supplemented by the businesses acquired throughout the year (Eagle and Wave Central)
Slide 6: FY24 Performance
FY24 PERFORMANCE PROFIT & LOSS FY24 FY23 Change • Strong Communications performance sustained: $m $m % o revenues of $326.9 million (+19% vs pcp); and Revenue Communications $326.9 $274.5 19% o expanding orderbook of $197 million (+21% vs pcp) Metal Detection $219.9 $176.1 25% Other $3.7 $5.9 (37%)
Slide 7: Financial Position
FINANCIAL POSITION Flexibility to support future growth opportunities • Net debt increased $23.7 million to $75.4 million at 30-Jun- Balance Sheet Jun-24 Jun-23 Change 24 after: $m $m $m Receivables 93.9 71.0 22.9 o cash consideration for acquisitions (~$37.2 million); Inventories 110.1 121.4 (11.3)
Slide 8: Change in Net Debt Position
CHANGE IN NET DEBT POSITION CHANGES IN NET DEBT (JUN-24 VS JUN-23, $M) 2 1. Cash consideration for acquisitions 2. Property, Plant and Equipment capital expenditure 7
Slide 9: Engineering Investment
ENGINEERING INVESTMENT Invest in ourselves - strong pipeline of projects • Sustained engineering investment across segments ensures competitive position maintained ENGINEERING ENGINEERING SPEND BY SPEND ($M)1 BUSINESS UNIT • Global team of highly skilled engineers and research scientists to drive pr
Slide 10: Business Units
Business Units 9 9
Slide 11: Communications
COMMUNICATIONS • FY24 Communications revenue increased by 19% vs pcp, to $326.9 million • Communications organic revenue growth of 16%, exceeded the target 10- 15%¹ • Growth primarily attributed to Zetron’s strong performance, bolstered by the acquisition of two high-quality businesses (Zetron UK an
Slide 12: Tactical Communications
TACTICAL COMMUNICATIONS • Tactical Communications delivered a solid FY24 result with strong growth in unmanned systems and broadcast markets, offsetting softness in HF due to geopolitical factors in Africa • Continued benefit from leading MESH radio technology, demonstrating exceptional performance
Slide 13: Zetron
ZETRON • Zetron outperformed expectations in FY24, continuing to deliver revenue growth from its expanded footprint • Growth driven by customers seeking to benefit from complete command and control solution offering across all key markets – public safety, utilities and transport • Some notable wins
Slide 14: Minelab
MINELAB • FY24 Minelab revenues increased 25% vs pcp, to $219.9 million • As a result of enhanced operating leverage, Minelab’s segment profit margin also increased to 35% (FY23: 32%) • Rest of world (RoW¹) benefited from release of new products, alongside an expansion of retail channel points of di
Slide 15: Environment, Social & Governance
Environment, Social & Governance 14
Slide 16: Climate Change Framework Priority Areas
CLIMATE CHANGE FRAMEWORK Stakeholder Scope 1 and 2 Track, Engagement science-based monitor emission and assess Climate Change Framework Priority Areas reduction targets Transition to net Zero Establish Preparation Consider scope 1, 2 & 3 reduction carbon for Mandatory targets towards Net Zero 1 2 3
Slide 17: Social Initiatives
SOCIAL INITIATIVES Codan Founders University of South Australia Codan Playford Scholarship with the STEM Girls Academy Trust Scholarship University of Adelaide Creative Challenge 36 Undergraduate STEM years of gold Scholarship for Women at the sponsorship of University of South Australia the Variety
Slide 18: Strategy Update
Strategy Update Ed CODAN
Slide 19: Building a Stronger Codan
BUILDING A STRONGER CODAN Our success “building a stronger Codan” is underpinned by both financial and operational objectives GLOBAL OPPORTUNITY AND EXCEPTIONAL CULTURE DIVERSIFIED EARNINGS Large, globally addressable market, notably Fosters collaboration and inclusivity, inspiring within developed
Slide 20: Core Values
CORE VALUES CUSTOMER TRUST & HIGH CAN-DO DRIVEN INTEGRITY PERFORMING Foster a positive experience Act honestly with Commit to defining and Positive determination to for all our customers, both transparency and embrace achieving ambitious goals. take the right action to internal and external. diversi
Slide 21: Strategy Overview
STRATEGY OVERVIEW Codan’s renewed growth strategy focuses on three core pillars that drive long-term value ST IN OURSELVES PITAL ALL VE INED CA OCA IN IPL TIO SC N DI GETTING QUALITY OF ACQUISITIONS THAT EVERYTHING RIGHT TOPLINE CREATE VALUE • Continued focus across people, • Global opportunity - On
Slide 22: Tactical Communications
TACTICAL COMMUNICATIONS Enhance offering as full solutions provider FY24 ACHIEVEMENTS • Experienced strong growth in unmanned systems market • Several key appointments to strengthen divisional leadership and regional focus • Successfully delivered first MANET soldier system to Korean Army (through H
Slide 23: Zetron
ZETRON Expand systems support contracts and predictability of recurring services revenue FY24 ACHIEVEMENTS • Significant year-on-year orderbook growth: o Several large system wins o Major service renewals o Continued North America channel growth • Acquired Zetron UK (Eagle), a leading software suppl
Slide 24: Minelab
MINELAB Promote new products & expand channels to market FY24 ACHIEVEMENTS • Successful launch of several new products (X-TERRA® ELITE and X-TERRA® VOYAGER) • Direct-to-consumer sales channel development, including launch of www.usa.minelab.com • African gold detector sales into countries other than
Slide 25: Recent Acquisitions
RECENT ACQUISITIONS Ability to quickly integrate bolt-on acquisitions is a key competitive advantage DOMO TACTICAL COMMUNICATIONS ZETRON May 2021 May 2021 Established technology provider Leading US based company for high bandwidth wireless providing mission critical Purchase Purchase communications
Slide 26: Outlook & Summary
Outlook & Summary CODAN
Slide 27: Group Outlook
GROUP OUTLOOK When considering the outlook for FY25: o Communications continues to target 10 to 15% organic revenue growth, with approximately $120 million of FY25 revenues secured in orderbook and strong pipeline; o Minelab continues to target rest of world revenues to grow at high- single digits;
Slide 28: Appendix
Appendix CODAN
Slide 29: Globally Diversified Technology Company
GLOBALLY DIVERSIFIED TECHNOLOGY COMPANY Codan develops and manufactures innovative lifesaving, mission critical communications and detection technology for individuals, communities and governments. 150+ Countries where Codan products & solutions sold 900+ Global employees, >30% engineering Codan’s c
Slide 30: The Journey
THE JOURNEY Key milestones in Codan’s history 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 Codan acquires Minelab, Minelab takes metal Unprecedented A strong diversified
Slide 31: Leadership Team
LEADERSHIP TEAM 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 General Executive General
Slide 32: Primary Markets: Tactical Communications
TACTICAL COMMUNICATIONS Communications solutions that enable customers to be connected FAVOURABLE MARKET FUNDAMENTALS: • Increasing global military and defence spend in the Five Eyes MILITARY Intelligence community1 PRIMARY MARKETS • Smart and safe city initiatives, growing adoption of Internet of T
Slide 33: Primary Market: Zetron
ZETRON True end-to-end mission critical solutions provider FAVOURABLE MARKET FUNDAMENTALS: 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 • Techn
Slide 34: Primary Markets: Minelab
MINELAB Delivering market-leading, innovative detectors FAVOURABLE MARKET FUNDAMENTALS: • Emerging awareness of recreational metal detection RECREATION / PROFESSIONAL • Shift in consumer preference towards direct-to-consumer and eCommerce channels Coin & Treasure, Gold Detectors • Continued geograph