Slide 1: Investor Presentation: Business Performance Half Year 2011
For personal use only I Investor t Presentation P t ti Codan Limited Business Performance Half Year 2011 Donald McGurk Managing Director and CEO Michael Barton Chief Financial Officer
Slide 2: Codan Overview
Codan Overview For personal use only • Codan C d LiLimited it d (ASX: (ASX CDA) d design, i manufacture and market "clever" products for global low to medium volume niche markets. • ~ 500 employees l • Exports p represent p approximately pp y 85% of revenues to more than 150 countries Clever Product
Slide 3: Communications: HF Radio Communications
Communications HF R Radio di CCommunications i ti For personal use only • Products and systems for remote area long g distance radio communications • Used for: – Rapid network deployment – Communications without the need for transmission infrastructure – Back-up Back up emergency communications • En
Slide 4: Communications: HF Radio Communications
Communications HF R Radio di CCommunications i ti For personal use only • The p preferred supplier pp of HF communications p products and systems to the developing world military, global security and peacekeeping markets • p g value p Compelling proposition p – Class-leading reliability with operati
Slide 5: HF Radio: Markets / Competitive Landscape
Communications HF R Radio di CCommunications i ti For personal use only Markets / Competitive Landscape • Military & Security – Leverage off Codan experience in industrialising markets – Codan offers flexible, best-value solutions for maturing security markets • Peacekeeping/NGO Agencies – Preferred
Slide 6: Communications: Satellite Communications
Communications S t llit Communications Satellite C i ti For personal use only • World leading supplier of RF Subsystems for Satellite Earth Stations • Customers include system integrators integrators, service providers and mobile antenna platform manufacturers • Market segments include, maritime and
Slide 7: Satellite Communications: Competitive Market and Growth Strategy
Communications S t llit Communications Satellite C i ti For personal use only Hi hl C Highly Competitive titi and dCConsolidating lid ti Market M k t • New Executive leadership based in the US • More US centric model • Innovative / integrated product solutions to move up the value chain • Excellence
Slide 8: Minelab Metal Detectors
Minelab Metal Detectors For personal use only Minelab supplies metal detection products and systems for Consumer, Mine Clearance and Artisanal Gold Mining markets • Consumer: Detection of gold nuggets, coins, treasure and artefacts by serious hobbyists, semi-professional Premium prospectors and arch
Slide 9: Minelab Metal Detectors: Consumer
Minelab Metal Detectors Consumer For personal use only Markets • 1st world leisure market i.e. retirees, archaeologists, g , treasure hunters • USA is the largest single market Competitive Landscape • L Largestt global l b l market k t share h • Competition is US based and entrenched in that market
Slide 10: Minelab Metal Detectors: Mine Clearance
Minelab Metal Detectors Mi Mine Clearance Cl For personal use only Markets • Estimated to be 50-100 million unexploded land mines globally • Unexploded Ordnance (“UXO”) ( UXO ) – explosive weapons that did not explode • Improvised Explosive Device (“IED”) – roadside bombs • Project-based business (T
Slide 11: Minelab Metal Detectors: Artisanal
Minelab Metal Detectors A i Artisanal l For personal use only Markets • Developing world market focus • Commercial enterprise • Huge success in Africa Competitive p Landscape p • Dominant position based on superior technology • First entrant into growing market • Brand recognition in the “boom” mark
Slide 12: Acquisition strategy
Acquisition q strategy gy For personal use only • Codan C d hash assigned i d hi high h priority i it and d resources tto acquisitions • Successfully acquired and integrated Minelab and Locus Microwave • Strategic acquisitions are considered critical for the long- term growth plan: – Bolt-ons: • Str
Slide 13: Business Update
Business Update p For personal use only • Financial performance in line with guidance • New Managing Director and Chief Executive Officer • Business streamlined through divestment of non-core non core assets • Minelab performance while not at the peak of FY10 remains very strong • HF R Radio di CCom
Slide 14: Financial Overview — Sales
Financial Overview — Sales For personal use only Half H lf Y Year Half H lf Y Year Half H lf Y Year FULL YEAR RESULTS Dec 10 Dec 09 Dec 08 Revenue $m % $m % $m % C Communication i ti P Products d t 33 0 33.0 39% 38 1 38.1 43% 41 2 41.2 58% Metal Detectors 46.6 56% 45.0 50% 21.9 31% Other 4.2 5% 6.3
Slide 15: Financial Overview — P&L
Financial Overview — P&L For personal use only Half Year Half Year Half Year FULL YEAR RESULTS Dec 10 Dec 09 Dec 08 $m % $m % $m % Total Revenue 83.8 100% 89.4 100% 71.1 100% Underlying Business Performance EBITDA 20.2 24% 26.6 30% 16.8 24% EBIT 16.2 19% 22.3 25% 12.9 18% Interest (1.4) (1.6) (3.0)
Slide 16: Financial Overview — Balance Sheet
Financial Overview — Balance Sheet For personal use only Dec 10 Jun 10 Jun 09 $m $m $m • Debtor collection has remained Working Capital excellent Receivables 15.2 12.5 16.1 Inventories 22.4 25.1 14.2 • Inventory investment made in Payables (17.6) (28.4) (17.5) order to maintain capacity and Total Wo
Slide 17: Financial Overview — Dividends
Financial Overview — Dividends For personal use only HY11 FY10 FY09 Interim dividend per ordinary share 4.0 cents 3.5 cents 3.0 cents Final dividend per ordinary share 4.5 cents 3.5 cents Total dividend per ordinary share 8.0 cents 6.5 cents Franking 100% 100% 100% Record date 18 March 2011 Payment
Slide 18: Outlook for second half FY11
Outlook for second half FY11 For personal use only Communications Products • HF Radio – strong orders on hand and robust sales opportunities pipeline. Second half will be driven by timing of major products • Satellite Communications – focus for the second half is on profitability improvement and the
Slide 19: Outlook – Codan Limited
Outlook – Codan Limited For personal use only 35 0 35.0 31.1 30.0 AUD AT M.A 25.0 20.0 20.0 Underrlying NPA 15.0 12.8 10.5 10 0 10.0 5.0 0.0 FY08 actual FY09 actual FY10 actual FY11 guidance Guidance provided “FY11 underlying NPAT in range of $20m to $22m” Strong trend line growth Page 19