Slide 1: FY21 full-year investor presentation cover letter
For personal use only 19 August 2021 Company Announcements Office Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam FY21 full-year investor presentation Please find attached a copy of Codan Limited’s investor presentation dated 19 August 2021 for release to the m
Slide 2: FY21 Full Year Results and Update
For personal use only FY21 FULL YEAR RESULTS AND UPDATE
Slide 3: 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 4: FY21 Full Year Summary
FY21 FULL YEAR SUMMARY For personal use only • Highest full-year sales in the company’s history • Record statutory net profit after tax of $90.2 million, an increase of 41% • Underlying net profit after tax of $97.3 million, an increase of 52% • Underlying Earnings per share of 54.0 cents, up 52% •
Slide 5: Increased Dividend
INCREASED DIVIDEND Final dividend 16.5 cents For personal use only Full Year Dividend (Cents) • Final dividend 16.5 cents per share • Full year dividend 27.0 cents (Interim: 10.5 cents) • Increasing dividends reflect strength of business • Interim dividend will be paid: • Record date 26 August 2021
Slide 6: FY21 Full Year Group Sales
FY21 FULL YEAR GROUP SALES A strong year for Codan For personal use only • 26% increase in sales over FY20 -8% • Metal Detection sales growth 38%: • Growth in Recreational (42%), Gold Mining (37%) and Countermine (34%) Group Sales • Increased distribution into big box retailers $437m • Communication
Slide 7: Strategic Growth Plan
STRATEGIC GROWTH PLAN Transforming lives through innovation, wherever you are For personal use only Expansion: Technology Council: • Geographic footprint • Communications • Products to solutions • Tracking/Sensing • Voice to Data to Video • Data analytics • Video Product Development: Acquisition Cri
Slide 8: FY21 Strategic Achievements
FY21 STRATEGIC ACHIEVEMENTS For personal use only Invested in excess of $30 million in product development; Invest in Ourselves ~30% of employees are engineers Added video, command and control technologies; Strengthen the Core Established Mexico office Leverage Continue to explore opportunities to f
Slide 9: Codan Limited Overview
CODAN LIMITED OVERVIEW Innovation wherever you are For personal use only 150+ Sell to over 150 countries around the world 700+ employees around the world 10 sites across the globe: AUSTRALIA BRAZIL CANADA DENMARK IRELAND MEXICO SINGAPORE UAE UK USA The Codan group consists of the following brands: 8
Slide 10: FY21 Global Footprint
FY21 GLOBAL FOOTPRINT Customers in 150 countries, exporting around 85% of sales For personal use only $107m $54m $11m CODAN OFFICE CODAN OFFICE (INC. ENGINEERING) MANUFACTURING/ $203m WAREHOUSES $8m $54m 9
Slide 11: Metal Detection
METAL DETECTION For personal use only Record performance – 38% growth in sales Metal Detection Sales Strong growth across all markets Gold Mining: • Continuing strong demand in artisanal mining, across all price points • Gold Monster® is now entry level detector of choice for artisanal miners • GPX6
Slide 12: Metal Detection Supply Chain
METAL DETECTION Supply Chain For personal use only ` Goals Reach targeted Measurements inventory levels across all key product lines in FY22. Continual supply and Approach demand reviews. Supply Chain Invest in increased manufacturing capacity and inventory holdings. Minimise supply chain disruption
Slide 13: For personal use only
For personal use only • High performance • Easy to use • Lightweight • Collapsible • Waterproof • RRP USD $5,999
Slide 14: Communications
COMMUNICATIONS For personal use only Strengthened Communications segment by adding DTC and Zetron into our portfolio Tactical Communications: Communications Sales • Business impacted by COVID-19 – Government contract deferrals and travel restrictions • Delivered our largest ever order of Sentry HF r
Slide 15: Tactical Communications
TACTICAL COMMUNICATIONS For personal use only Expanding our voice product offering to video and data driven solutions 14
Slide 16: DTC & Tactical Integration Plan
DTC & TACTICAL Integration plan For personal use only Integrate sales and Leverage routes to marketing teams market MILITARY MARKETS $21m Operate under both Offer end to end FULL SYSTEMS STRATEGIC SOLUTIONS PARTNERSHIPS brands integrated solutions $35m Expecting DTC to deliver FY22 EBITDA $14 millio
Slide 17: Public Safety Communications
PUBLIC SAFETY COMMUNICATIONS Strategic fit of Zetron with LMR For personal use only The Alert The Intake, Triage, and Coordination The Delivery The Response Command and Control Mission Critical Wireless First Responders The Public Communications and Field Personnel Voice LMR Data Broadband The Emerg
Slide 18: Zetron & LMR Integration Plan
ZETRON & LMR Integration plan For personal use only Integrate into one Offer full suite of business mission critical EMERGENCY DISPATCH solutions CALL TAKING $21m INTEROPERABILITY FIRE STATION Operate under the Capitalise on Next ALERTING Zetron brand Generation 911 $35m MAPPING AND Expecting Zetron
Slide 19: Sale of Minetec to Caterpillar
For personal use only Sale of Minetec to Caterpillar: • Sale price $18 million up-front cash • 5-year earn out and supply agreement • Settled 1 July 2021 18
Slide 20: Financial Results
For personal use only FINANCIAL RESULTS 19
Slide 21: Record FY21 Performance
RECORD FY21 PERFORMANCE For personal use only Underlying NPAT ($m) • Record sales and profits, despite strong AUD appreciation • Strong demand for Metal Detectors across all markets • Sales growth translated to NPAT, economies of scale • Investment in manufacturing capacity and inventory to minimise
Slide 22: Engineering Investment
ENGINEERING INVESTMENT Strong pipeline of projects For personal use only Engineering spend ($m) Engineering by Business Unit Return on Equity1 8% of Sales 1Return on equity = rolling 12 month net profit after tax divided by average equity 21
Slide 23: Cash Generation
CASH GENERATION Net Cash/(Debt) Balance ($m) For personal use only *Cash position at 30 June 2021 before funding DTC and Zetron acquisition • Excellent cash generation – close to zero net debt at 30 June after funding $174m for acquisitions • Proceeds from Minetec were received 1 July 2021 • Expect
Slide 24: FY22 Outlook
FY22 OUTLOOK For personal use only Well positioned for FY22: • strong start to the year and in line with FY21 run-rate; • demand for our metal detection products remains strong; • Minelab will benefit from a full year of GPX6000® sales; • Communications segment to include a full year of the acquired
Slide 25: Appendix
For personal use only Appendix 24
Slide 26: Metal Detection Products & Markets
METAL DETECTION Products & Markets For personal use only RECREATION GOLD MINING COUNTERMINE Coin & Treasure, Gold Detectors Handheld Gold Detectors Landmine Detectors Key markets — Australia, USA, Key markets — Africa, Asia Market — countries impacted by Europe, Russia Pacific, Latin America war — p
Slide 27: Gold Products
GOLD PRODUCTS Products to service all types of prospectors For personal use only GOLD DETECTOR RANGE $899 $3299 $3999 $5999 $7999 USD RRP ex tax/shipping ENTRY - MID RANGE - PROFESSIONAL 26
Slide 28: Recreational Products
RECREATIONAL PRODUCTS Expanding MULTI-IQ® technology across the range For personal use only RECREATIONAL DETECTOR RANGE All Targets, All Soils, All the Time. USD RRP ex tax/shipping $99 - $249 $199 - $499 $649 - $899 $1499 $1549 $2499 HOBBYIST - ENTHUSIAST - SPECIALIST - EXPERT 27
Slide 29: DTC Products, Solutions & Markets
DTC PRODUCTS, SOLUTIONS & MARKETS Diverse Portfolio to Address various Markets For personal use only VIDEO MIMO/MESH COMMAND AND SURVEILLANCE Audio & Low Latency Video Addresses challenges of increased CONTROL Audio and video capabilities to C2 location & associated Meta-data Transmission/Receive, B