Slide 1: Exchange SA Conference
CODAN LIMITED Exchange SA Conference 8 J u n e 2 017 Donald McGurk Managing Director & CEO
Slide 2: Disclaimer
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 summary information about
Slide 3: Technologies for Global Markets
TECHNOLOGIES FOR GLOBAL MARKETS Headquartered in South Australia, Codan is an international company that develops rugged and reliable electronics solutions for government, corporate, NGO and consumer markets across the globe Our purpose is to create long term shareholder value through the design, de
Slide 4: Delivering Shareholder Value Over the Long Term
DELIVERING SHAREHOLDER VALUE OVER THE LONG TERM Shareholder value We succeed by: - Developing unique, high value technology - Delivering superior product performance in the harshest conditions - Solving customers’ safety, security and productivity problems - Creating multiple revenue streams from gl
Slide 5: Global Footprint – 85% of Sales Exported
GLOBAL FOOTPRINT – 85% OF SALES EXPORTED FY16 sales by location $25M $20m $32m$15M $38m $46m $20m $35 m $10m $10m $11m $45m $20M $50m $52m $55M $2m $2m $30m $30m $5M $26m $15M 9 offices 375 employees 5
Slide 6: Financial Snapshot
FINANCIAL SNAPSHOT Underlying NPAT $45.4m $44.0m ASX Code CDA Shares on issue 177.2 million $27.9m Market capitalisation $420 million $21.1m FY16 NPAT $21 million $12.7m $9.0m FY17 NPAT (guidance) $44 million Debt free FY12 FY13 FY14 FY15 FY16 FY17 guidance Baseline business: Revenue $160 - $180 mil
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Revenue of $191 million for the ten months to 30 April (33% higher than prior comparative period) FY17 NPAT guidance double FY16 Strong cash flow generation over the second half $20 million net cash position at 30 April History of 50% dividend payout ratio – fully franked FY17
Slide 8: Business Units
BUSINESS UNITS : | EICODAN | RADIO COMMUNICATIONS
Slide 9: Radio Communications
RADIO COMMUNICATIONS Best in class solutions Two technology platforms: Long range digital radio (HF) Land Mobile Radio (LMR) Transitioning from a product to a solutions business Key markets in Africa, Asia, North America 9
Slide 10: Radio Communications
RADIO COMMUNICATIONS Long range digital radio (HF) New products for global military markets Acquisition of Stealth antenna technology (Jan 2017) has expanded product line Large project wins can lift revenues 10
Slide 11: Radio Communications
RADIO COMMUNICATIONS Land Mobile Radio (LMR) LMR used by first responders (police, fire, emergency services) ™ New Cascade product range released from July 2017 Software Defined Radio (SDR) – customer can upgrade without buying hardware 11
Slide 12: Metal Detection
METAL DETECTION World’s best metal detecting technology Key markets - Australia, USA, Key markets – Africa / AsiaPac / LATAM Key market – countries impacted by Europe, Russia war – past and present Users: Users: Users: Families Small scale artisanal miners Demining organisations Weekend enthusiasts
Slide 13: Metal Detection
METAL DETECTION ® GPZ 7000 – released in Africa October 2015 Ground-breaking technology ™ Up to 40% depth improvement over GPX 5000 Deepest ground penetration available Driving a replacement market High return on investment 13
Slide 14: Metal Detection
METAL DETECTION ® New product – Gold Monster 1000 Specifically designed for harsh African conditions Challenge competitors at lower price point Rugged and easy to use Launched in May 2017 14
Slide 15: Tracking Solutions
TRACKING SOLUTIONS Highly accurate tracking of assets to improve mine productivity and safety “GPS” for an underground mine Numerous installed mines, critical reference sites for further sales Gaining market traction Operating profitably 15
Slide 16: Defence Electronics
DEFENCE ELECTRONICS Leveraging our Defence capability Recent initiative to capitalise on our long history of supplying the defence sector Core technical competence in RF sub-system design Supplying large defence contractors 16
Slide 17: Thank You
THANK YOU Ed CODAN