Slide 1: ASX CEO Connect Presentation
INNOVATION WHEREVER YOU ARE ASX CEO Connect Presentation 11 December 2018 DONALD McGURK Managing Director & CEO
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER 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 presentation contains summ
Slide 3: Codan: Robust, innovative technology for global markets
CODAN Robust, innovative technology for global markets Portfolio of technology solutions: Communications Metal Detection Tracking Unique, protected intellectual property Superior performance in harsh environments Customers in 150 countries 3
Slide 4: Global Footprint
GLOBAL FOOTPRINT Adelaide based, exporting around 85% of sales $35m $37m $44m $31m $17m $91m $6m $37m 4 FY18 sales
Slide 5: Financial Snapshot
FINANCIAL SNAPSHOT Underlying NPAT ($ millions) ASX Code CDA Shares on issue 178 million Market capitalisation $550 million FY18 NPAT $40 million Dividend payout ratio 50% Debt free Net cash position at 30 November $12 million 5
Slide 6: Track Record of Strong Growth and Regular Dividends
TRACK RECORD OF STRONG GROWTH AND REGULAR DIVIDENDS Sales and EBITDA 15% compound annual sales growth 33% compound annual EBITDA growth 25% average EBITDA margin 17% average return on equity Increasing ordinary dividends Outperformance rewarded with special dividends Dividends (cents) Return on Equi
Slide 7: Base Business Increased 20% in FY18
BASE BUSINESS INCREASED 20% IN FY18 Outperformance during periods of stronger demand for gold detectors in Africa Sales 250 $226m $230m Codan has a strong base business: 200 Sales $180 - $200 million $170m NPAT $25 - $30 million Comprised of: 150 Radio Communications solutions $ millions Metal detec
Slide 8: Four Business Units
FOUR BUSINESS UNITS 8
Slide 9: Radio Communications
RADIO COMMUNICATIONS Expanding Tactical and Land Mobile Radio offerings Infrastructure free, long range radio Purpose-built radios for maximum Robust, dependable wireless systems communications reliability and ruggedness Key markets – Africa, Asia Key markets – Africa, Middle East, Key markets – Nor
Slide 10: Metal Detection
METAL DETECTION Developing new products, entering new markets Coin & Treasure, Gold Detectors Hand-held Gold Detectors Land Mine Detectors Key markets - Australia, USA, Europe, Key markets – Africa, AsiaPac, Latin Key market – countries impacted by war Russia America – past and present Users: Users:
Slide 11: Equinox
EQUINOX® Major technology upgrade in recreational market NEW technology Simultaneous multi-frequency Adaptable for all target types and ground conditions Obsoletes all single frequency VLF detectors Mid-range recreational detector Waterproof Wireless audio Lightweight Easy set-up RRP $649 - $899 USD
Slide 12: Tracking Solutions
TRACKING SOLUTIONS Commercialising a unique solution for underground mines TRACKING + DATA COMMUNICATIONS + SOFTWARE One system for real time tracking and communications in underground hard rock mines Exclusive partnership with Caterpillar 12
Slide 13: Cat MineStar
CAT MINESTAR™ Working in partnership with Caterpillar Integrated solution to improve mine productivity Existing CAT Solution Exis ting Minetec Solution Combined offering: for Underground 13
Slide 14: Defence Electronics
DEFENCE ELECTRONICS Leveraging Codan’s RF defence capability The opportunity: $200 billion of Australian defence equipment procurement over the next ten years Qualified Australian partner for Defence Primes Prime Contractors: Approved supplier to Rheinmetall for LAND400 Combat Reconnaissance Vehicle
Slide 15: Positive Outlook FY19
POSITIVE OUTLOOK FY19 Strong start to FY19 Radio Communications sales for the first half will exceed prior first half Metal detection sales strong Expect NPAT in the range of $20 to $22 million in the first half Potential to again exceed base business sales and profit in FY19 15
Slide 16: Thank you
Thank you 16 Eg CODAN