Codan Limited · ASX:CDA

Codan — H1 FY13 Earnings Presentation

17 slides from Codan's earnings presentation, Feb 26, 2013

1. Slide 1: Investor Presentation

   For personal use only Investor Presentation Donald McGurk Managing Director and CEO Michael Barton Chief Financial Officer 26 February 2013

2. Slide 2: Overview – Half year results

   Overview For personal use only Half year results  Half-year revenue up 83% on previous corresponding period to $135.9 million  Record reported half-year net profit of $26.5 million  Underlying net profit increased from $10.4 million to $27.4 million  Interim fully franked dividend of 6.0 cents p

3. Slide 3: Best in Class Electronics Solutions Directed at Global Markets

   Best-in-Class Best in Class Electronics Solutions Directed at Global Markets For personal use only  Codan is a leading designer and manufacturer of a diversified range of high value value-added added electronics products for global markets  Our core products are metal detectors, radio communicatio

4. Slide 4: Delivering on Strategic Objectives

   Delivering on Strategic Objectives - growing the business organically and by acquisition For personal use only  Continue to assess opportunities Diversify  Integration of land mobile radio business Expand  Investment in new market development – Africa and South America  Secured exclusive licence

5. Slide 5: World's best metal detection technologies

   “World’s World s best metal detection technologies” technologies For personal use only  Detection of gold nuggets, coins, treasure and artefacts  Key customers include y , serious hobbyists, semi-professional prospectors and archaeologists  Detection of gold as a p commercial enterprise by small

6. Slide 6: Metal Detection

   Metal Detection For personal use only Revenue FY13 objectives Progress  Performing at record levels Well positioned for another strong year  Continued strong demand for gold detectors  Significant sales growth in consumer products  New market development p in Africa and South America Expand gold

7. Slide 7: World's best metal detection technologies

   “World’s World s best metal detection technologies” technologies For personal use only  Recent discovery of a 5.5kg gold nugget in Ballarat at 60cms depth by a prospector using a Minelab GPX 5000 handheld gold detector illustrates the benefit of Minelab’s cutting-edge technology in the pursuit of g

8. Slide 8: Gold Mining

   For personal use only 8 Gold Mining

9. Slide 9: Radio Communications

   Radio Communications For personal use only  Leading designer and manufacturer of premium communications equipment for HF and LMR applications  Over 100 years combined experience in developing radio solutions and support  Complementary products - one distribution network Markets Why High Frequency

10. Slide 10: Radio Communications

    Radio Communications For personal use only Revenue FY13 objectives Progress  Sales slowed due to delays with major project awards Target strong sales growth  High dependence on US government funding, funding tough economic climate  We continue to pursue many new project opportunities  Integratio

11. Slide 11: Mining Communications and Technology

    Mining Communications and Technology For personal use only Miner Proof Products – Mine Ready Engineering  Enterprise-wide communications and technology solutions for the mining sector  Specialised underground data and voice communications technologies  Collision detection technology focused on mi

12. Slide 12: Mining Communications and Technology

    Mining Communications and Technology For personal use only Revenue FY13 objectives Progress  Transition to higher value-add software solutions Continue to invest in new products and technology  Significant investment in technology research and product development  Secured exclusive license for mi

13. Slide 13: FY13 H1 Profit and Loss

    FY13 H1 Profit and Loss For personal use only  Total revenue of 135.9 million (83% increase over FY12 H1)  Driven by continued strong growth of metal detector sales and acquisitions  Underlying U d l i nett profit fit off $27 $27.4 4 million illi isi another th record d ffor the th company (163%

14. Slide 14: FY13 H1 Profit and Loss

    FY13 H1 Profit and Loss For personal use only Underlying business performance Administrative Engineering Half Year Dec 12 Half year Dec 11 expenses expenses $m % to sales $m % to sales % change Revenue $135.9 100% $74.1 100% 83% Underlying business performance EBITDA $45.8 34% $20.0 27% 133% EBIT $3

15. Slide 15: Capital Position

    Capital Position For personal use only  Strong balance sheet and conservative financial position  Net debt increased marginally from $16 million to $18 million since June 2012 – substantial investment in rebuilding Minelab inventories – partly debt debt-funded funded the acquisition of Daniels Ele

16. Slide 16: Dividends and Shareholder Base

    Dividends and Shareholder Base For personal use only Fully franked dividends (cents) Record date: 15 March 2013 Payment date: 2 April 2013  Interim fully franked dividend of 6.0 cents per share – a 50% increase over FY12 interim dividend and 9% increase over FY12 final dividend  Daily share tradin

17. Slide 17: Key Ratios

    Key Ratios For personal use only Underlying earnings per share (cents) Free cash flow ($m)2 Full year Full year Return on equity (%)1 Gearing (%)3 Full year Full year 1Return on equity calculated as previous 12 month underlying NPAT / average equity over the previous 12 months 2 Free cash flow = ope

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