Slide 1: Management Briefing & Site Tour Presentation
CODAN LIMITED M a n a g e m e n t B r i e f i n g & S i t e To u r P r e s e n t a t i o n For personal use only 1 9 M a y 2 017
Slide 2: 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 3: Agenda
AGENDA For personal use only 9.10am Introduction to Codan & Business Overview – Donald McGurk (Managing Director & CEO) & Michael Barton (CFO & Company Secretary) – 40 mins 9.50am Break & Radio Communications product demo – 10 mins 10.00am Radio Communications – Steven Jenkins (General Manager Radio
Slide 4: Introduction & Business Overview
INTRODUCTION & BUSINESS OVERVIEW For personal use only Donald McGurk Managing Director & CEO Michael Barton CFO & Company Secretary 4
Slide 5: Technologies for Global Markets
TECHNOLOGIES FOR GLOBAL MARKETS For personal use only 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
Slide 6: Delivering Shareholder Value Over the Long Term
DELIVERING SHAREHOLDER VALUE OVER THE LONG TERM For personal use only 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 r
Slide 7: Global Footprint – 85% of Sales Exported
GLOBAL FOOTPRINT – 85% OF SALES EXPORTED For personal use only 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 7
Slide 8: FY17 Profit Upgrade
FY17 PROFIT UPGRADE For personal use only Strong sales continue Gold detector sales into Africa in the second half have continued to be strong Total sales 10 months to 30 April $191 million – up 33% Full year underlying NPAT guidance upgraded to circa $44 million Strong balance sheet – $20 million n
Slide 9: Business Update
BUSINESS UPDATE For personal use only Radio Communications Sales 10 months to 30 April $61 million – up 6% Strong first half in HF due to delivery of large project Will deliver a stronger second half for LMR Cascade development on track for FY18 release Growth over the medium term as we transition f
Slide 10: Business Update
BUSINESS UPDATE For personal use only Minetec Positive profit contribution for FY17 Successfully deployed technology for key customers Unique product offering in high precision underground tracking Focus directed towards scaling the business and increasing profitability Codan Defence Electronics Rec
Slide 11: Profitability
PROFITABILITY Key ratios at 31 December 2016 For personal use only Underlying earnings per share (cents) Free cash flow ($m)2 Continuing to generate positive free cash flow Debt free - $20 million net cash position at 30 April Banking facility $55m Strong investment in product development continues
Slide 12: Dividends
DIVIDENDS For personal use only 3.0 Strong history of dividend payments Board has maintained a 50% dividend payout ratio Dividends are fully franked FY17 interim dividend was increased 50% Also paid a special dividend to reflect outperformance of the business 12
Slide 13: Q&A
For personal use only 13 Q&A
Slide 14: Radio Communications
RADIO COMMUNICATIONS For personal use only Steven Jenkins Vice President and General Manager, RC Australia Francesca Doyle Director of Marketing, Radio Communications 14
Slide 15: Radio Communications Overview
RADIO COMMUNICATIONS Overview For personal use only Communication Solutions that simply and reliably connect those that defend, protect and support humanity in the harshest environments High Frequency (HF) core of the founding company Land Mobile Radio (LMR) acquired in 2012 (Daniels Electronics) an
Slide 16: Two Technology Platforms
RADIO COMMUNICATIONS Two technology platforms For personal use only Long Range Digital Radio (HF) Infrastructure free, long range radio Used by security, peacekeeping, humanitarian and military organisations Used extensively in Africa, Middle East and Asia Land Mobile Radio (LMR) Land based VHF, UHF
Slide 17: HF Products & Markets
RADIO COMMUNICATIONS HF products & markets For personal use only Codan’s HF markets Long range digital radio (HF) US$500M New product development directed at Military 2 Acquisition of Stealth Telecom (Jan 2017) expanded product line to include HF antennas Large project wins impact annual revenues HF
Slide 18: HF Products & Markets
RADIO COMMUNICATIONS HF products & markets For personal use only HF products for Military market: Sentry-V military VHF radio Sentry-H military HF radio Stealth 93XX series antenna RIOS radio interoperability system 18
Slide 19: LMR Market
RADIO COMMUNICATIONS LMR market For personal use only Future market ~USD1B Current market ~USD100M 2016 Target markets growing at 10% – 12% CAGR1 20201 Expanding from ~USD100M low-power, remote infrastructure market into ~USD1B systems market as a Radio Network Solutions provider Key customers: Publ
Slide 20: LMR Cascade – Software Defined Radio
RADIO COMMUNICATIONS LMR Cascade – Software defined radio based on P25 Standard For personal use only 50+ year history in the mountain top repeater space Positioning as a Radio Network Solution Targeting customers with large land areas and low population Demand for ‘simple to use’ radios and interop
Slide 21: LMR – Radio Network Solutions
RADIO COMMUNICATIONS LMR – Radio Network Solutions For personal use only 21
Slide 22: Q&A
For personal use only 22 Q&A
Slide 23: Metal Detection
METAL DETECTION For personal use only Peter Charlesworth Executive General Manager, Minelab Mark Lawrie Product Technology Manager 23
Slide 24: Metal Detection Overview
METAL DETECTION Overview For personal use only World’s best metal detecting technology for finding gold, treasure and land mines Minelab - founded in 1989 Acquired by Codan in 2008 – $38M sales FY16 sales $99M – strong growth as new markets opened Offices in Adelaide (engineering & sales), Dubai, US
Slide 25: Metal Detection Markets
METAL DETECTION Markets For personal use only 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 Government
Slide 26: Coin & Treasure Detectors
METAL DETECTION Coin & Treasure detectors For personal use only Retail prices ranging from US$150 to US$2500 26
Slide 27: Gold Detectors
METAL DETECTION Gold detectors For personal use only Retail prices ranging from US$999 to US$9,999 27
Slide 28: GPZ 7000
METAL DETECTION GPZ 7000® For personal use only Ground-breaking technology Up to 40% depth improvement over GPX 5000®1 Deepest ground penetration available Three to five year development cycle for major technology platforms High return on investment Large Coil (19”) now available; even deeper detect
Slide 29: New Product
METAL DETECTION New product For personal use only Entry level specialist gold detector for recreational enthusiasts and small-scale gold miners Retail price under US$1,000, below that of GPX Designed specifically for small-scale gold mining Rugged and easy to use through automation First product sal
Slide 30: Dual Sensor Detector for Australian Defence Force
METAL DETECTION Developing dual sensor detector for Australian Defence Force For personal use only $6.7m development contract awarded by Australian Defence Force in August 2016 Funds majority of engineering investment Working with US partner, NIITEK Inc. Combines Minelab’s metal detection technology
Slide 31: Q&A
For personal use only 31 Q&A
Slide 32: Tracking Solutions
TRACKING SOLUTIONS For personal use only Rory Linehan Executive General Manager, Minetec 32
Slide 33: Tracking Solutions Overview
TRACKING SOLUTIONS Overview For personal use only Highly accurate tracking of assets to improve mine productivity and safety Minetec - founded in 2000 Acquired by Codan in 2012 Continued development of underground tracking solutions Offices in Adelaide (project delivery), Perth (engineering & sales)
Slide 34: Minetec Competitive Advantage
MINETEC Competitive Advantage For personal use only Product differentiation: Real time production management system Single sensor: communications, ranging & localisation Single vendor: tracking, safety & task management 34
Slide 35: Minetec Solution: Lifting the Lid on the Digital Mine
MINETEC SOLUTION Lifting the lid on the Digital Mine For personal use only 35
Slide 36: Change Management, Transformation & Innovation
TRACKING SOLUTIONS Change management, Transformation & Innovation For personal use only Digital Mine: unlocking today’s operations Shift turn-around Asset availability & utilisation Traffic management Proximity awareness & detection Real time production management Remote and Autonomous Operations Sa
Slide 37: Q&A
For personal use only 37 Q&A