Slide 1: Presentation - Half-Year Results to 31 Dec 2003
Codan Limited Presentation - Half-Year Results to 31 Dec 2003 Mike Heard Managing Director
Slide 2: Overview - The Company and Business
CODAN Overview - The Company and Business Australian company founded in 1959 Serving global markets for communications and broadcast products Listed in November 2003 IPO forecast FY 04 Revenue $125.5m, Net Profit After Tax $14.1m Vv Vv VV WV Track record of 15% compound growth in revenue and profit
Slide 3: Key Financial Information
CODAN Key Financial Information Statement of Financial Performance (Profit & Loss Statement) Half-Year to _ Half-Year to Growth Dec 2002 Dec 2003 $m $m Total Revenue 53.5 63.0 +17.8% Cost of Goods Sold 28.4 33.8 - Margin 25.1 29.2 +16.3% Margin% 46.9% 46.4% - Expenses (excluding interest) 16.5 17.2
Slide 4: Half-Year Results - Commentary
CODAN Half-Year Results - Commentary Sales and Profits stronger than expected: >» Strong demand for Communications Products >» HF Radio and Satellite Communications growth in private networks >» Terrestrial Microwave under-performed — depressed general telecommunications sector >» Broadcast Products
Slide 5: Key Financial Information (continued)
Key Financial Information (continued) Statement of Financial Position (Balance Sheet) CODAN 31 Dec 2003 31 Dec 2003 $m $m Current Assets Current Liabilities Cash 8.4 Accounts Payable 17.6 Receivables 13.7 Other 10.3 Inventories 14.0 Borrowings 25 Other 12.0 Provisions 5.4 478 35.7 Non-Current Assets
Slide 6: Interim Dividend
CODAN Interim Dividend Earnings per ordinary share 4.81 cents (on issued capital at 31 December 2003 fully diluted) Interim dividend per ordinary share 2.5 cents Payout ratio 51.8% Record date 18 March 2004 Payment date 1 April 2004
Slide 7: Outlook — Second Half and Full Year
CODAN Outlook — Second Half and Full Year > Timing of large orders can influence sales across reporting periods > Order timing depends upon rollout of customers’ networks > Strong first half could be offset in second half >» Otherwise no significant change in markets and business
Slide 8: Outlook — Second Half and Full Year
Outlook — Second Half and Full Year Economic Factors: > Exchange Rate — hedge profile in place > Australia/US Free Trade Agreement — possible future benefits but probably beyond forecast period Full Year Forecast: > Confident of achieving full year IPO forecast
Slide 9: Codan Revenue Growth
Codan Revenue Growth 120 116 100. 90 80 70 60 50 40 30 20 T T T T T t t t t 1 1 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year ended 30 June $ millions Actual == =» 15% Compound Annual growth NPAT Compound Annual Growth also 15 % over the same period
Slide 10: Revenue Growth ($m)
Revenue Growth ($m) CODAN $ millions 36.6 49.6 67.6 110.7 113.1 87.9 75.8 sl 125.5 1996 1997 1998 1999 2000 2001 Year end 30 June 2002 al 2003 2004 Forecast
Slide 11: EBITDA Growth ($m)
EBITDA Growth ($m) CODAN $ millions 35 4 30 4 7.1 11.0 14.6 23.9 24.2 26.9 20.1 18.1 1 29.0 1996 1998 1999 2000 2001 Year end 30 June 2002 2003 2004 Forecast
Slide 12: Opportunities for Growth - High Frequency Radio Communications
CODAN Opportunities for Growth High Frequency Radio Communications > Penetration of first world government markets > Increased sales in China and India > New product release - Manpack radio > Market's adoption of data and email transmission > Demand arising from world security concerns > R&D for add
Slide 13: Opportunities for Growth - Satellite Communications
CODAN Opportunities for Growth Satellite Communications >» Increased demand from world security concerns > Recovery of general telecommunications market > Expansion in to government and business private networks > Release of new transceiver range >» Growth in Africa, CIS, China and India > Recovery
Slide 14: Opportunities for Growth - Terrestrial Microwave Communications
CODAN Opportunities for Growth Terrestrial Microwave Communications > Focus on developing world markets - Codan competitive advantage > Market penetration using existing selling and distribution networks of HF and satellite > Extension of product range through strategic alliance or acquisition > Foc
Slide 15: Opportunities for Growth - Broadcast Products - Provideo
° CODAN Opportunities for Growth Broadcast Products - Provideo > Export drive, particularly Asia and Middle East > Use of existing Codan sales and distribution networks > New product development in SDTV and HDTV >» Sale of Codan products to TV broadcast industry >high power amplifiers > digital vide
Slide 16: Thankyou
gs 1S Thankyou Lo pe a = @ CODAN