Slide 1: Investor Presentation
Investor Presentation 19 February 2010 Mike Heard Managing Director Michael Barton Chief Financial Officer
Slide 2: Contents
Contents What is Codan’s Core Business.......................................2 Business segments / product groups..............................3 Highlights............................................................................7 Financial overview.................................................
Slide 3: What is Codan's Core Business?
What is Codan’s Core Business? “Clever Products for Global Niche Markets” Clever Products • Innovative products of our own design • High intellectual property content, high value add • Exceptional performance, reliability and support • Electronics products preferably Global Niche Markets • Demand in
Slide 4: Business Segments and Product Groups: HF Radio
What are Codan’s Current Business Segments and Product Groups? Communication Products – High Frequency (HF) Radio Products and systems for remote area long distance radio communications Used for: rapid network deployment communications without the need for transmission infrastructure back-
Slide 5: Business Segments and Product Groups: Satellite Communications
What are Codan’s Current Business Segments and Product Groups? Communication Products - Satellite Communications RF Subsystem (Satcom) RF Subsystem portion of satellite communications earth stations Used in networks for telecommunications over satellite; for public infrastructure and private net
Slide 6: Business Segments and Product Groups: Minelab Metal Detection
What are Codan’s Current Business Segments and Product Groups? Minelab Metal Detection Metal detection products and systems for Consumer, Countermine and Artisanal Gold Mining markets Consumer: Detection of gold nuggets, coins, treasure and artefacts by serious hobbyists, semi- professional prospe
Slide 7: Business Segments and Product Groups: Other
What are Codan’s Current Business Segments and Product Groups? Other Codan Broadcast – Signal routers and signal management products for TV broadcast studios IMP Printed Circuits – Manufacture and importing of bare printed circuit boards for Australian and NZ electronics manufacturers Parketro
Slide 8: Financial highlights 1st half FY10
Financial highlights 1st half FY10 Record sales and profit for a half year Net profit after tax was $13.6 million for the half-year ended 31 December 2009, an increase of 102% compared to the previous corresponding period. The profit arose from revenue of $89.4m, compared with $71.1m in the prev
Slide 9: Financial overview: Sales
Financial overview Sales Half year results 1st half FY10 1st half FY09 $m % $m % Revenue Communication Products $38.2 43% $41.2 58% Metal Detection $45.0 50% $22.0 31% Other $6.3 7% $8.0 11% Total revenue $89.4 100% $71.1 100% Key highlights: Strong sales of HF radio products continued to security
Slide 10: Financial overview: P&L
Financial overview P&L Half year results 1st half FY10 1st half FY09 $m % $m % Total revenue $89.4 100% $71.1 100% Underlying business performance EBITDA $26.6 30% $16.8 24% EBIT $22.3 25% $12.9 18% Interest ($1.6) ($3.0) Net profit before tax $20.7 23% $9.9 14% Underlying net profit after tax $14.8
Slide 11: Financial overview: Balance sheet
Financial overview Balance sheet December '09 June '09 $14.1m decrease in net debt $m from excellent operating cash Working Capital Receivables $17.3 $15.3 flows. Inventories $16.5 $14.2 Accounts Payable ($25.5) ($17.5) Total Working Capital $8.3 $12.1 Property, Plant & Equipment $22.4 $23.2 Produ
Slide 12: Integration and Restructuring
Integration and Restructuring Continued with consolidation and outsourcing of manufacturing activities across the group, with attendant savings. Most notably, manufacturing of Minelab metal detectors in Ireland ceased during the period and was relocated to Codan Limited’s outsource partner in Ma
Slide 13: Outlook
Outlook The second half has commenced strongly. Whilst demand for all Minelab products is good, it remains extremely strong for detectors for artisanal gold mining and Minelab has a very high level of orders on hand. Second half sales for Minelab products will most likely be limited by the ext