Slide 1: 2022 AGM - Investor Presentation (ASX cover letter)
26 October 2022 Company Announcements Office Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2022 AGM - Investor Presentation Please find attached a copy of Codan Limited’s investor presentation dated 26 October 2022 for release to the market. Yours faithfully
Slide 2: 2022 Codan Limited Annual General Meeting
2022 Codan Limited Annual General Meeting
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER DISCLAIMER This presentation has been prepared by Codan Limited (ABN 77 007 590 605) The historical information in this presentation is, or is based upon, information (Codan). The information contained in this presentation is for information that has been released to
Slide 4: FY22 Full Year Summary
FY22 FULL YEAR SUMMARY Record group sales of $506 million (+16% YoY) and underlying NPAT of Sales EBITDA $100.5 million (+3% YoY) $506.1m $162.0m Acquisition of DTC and Zetron, balancing sales portfolio and geographic exposure Increased by 16% Increased by 2% • Exceeding first year targets, achievin
Slide 5: Diversification – Metal Detection vs Communications
DIVERSIFICATION – METAL DETECTION VS COMMUNICATIONS Achieving a more-balanced and predictable revenue base Sales ($m) Segment profit ($m) 172 506 162 • Successfully diversified both 437 sales and segment profit 118 • Communications sales +153% 348 52% 71% YoY, driven by DTC and Zetron 271 230 77% 83
Slide 6: Africa vs Rest of World
AFRICA VS REST OF WORLD Favorable geographic mix, enhancing group stability FY21 Sales FY22 Sales • Growing RoW¹ contribution, notably developed markets exposure LATAM LATAM 2% 3% Africa • During FY22, RoW sales grew $139 million North America 26% (+59% YoY) 25% North • Greater stability, predictabi
Slide 7: Metal Detection Outlook
METAL DETECTION OUTLOOK Challenging market conditions remain • Execution of strategy to strengthen Minelab via geographic expansion and development • Africa – historically Minelab’s largest market – remains materially disrupted • RoW represents an encouraging growth opportunity, continues to perform
Slide 8: Communications Outlook
COMMUNICATIONS OUTLOOK Significant future growth engine • Pleasing performance in FY22 has continued into FY23 • Communications well positioned for success – orderbook has increased ~10% since 30 June 2022 • Strong contribution from both Zetron and Tactical communications businesses, as both acquisi
Slide 9: Group Outlook
GROUP OUTLOOK • To recap, H1 FY23 outlook: • Macroeconomic and geopolitical factors significantly impacted Minelab African sales • Minelab’s RoW sales proving resilient, in line with a normalised FY22 • Communications to deliver strong growth across sales and segment profit margin • H1 FY23 NPAT gui
Slide 10: Building a Stronger Codan
BUILDING A STRONGER CODAN MAXIMISING CASH DIVERSIFIED REDUCE STRENGTHEN PROFITABILITY GENERATION EARNINGS RELIANCE BALANCE SHEET Primary objective Focused on cash Targeting a Reduce relative Further of maximising generation and more diversified reliance on Africa, strengthen sales and ensuring earni
Slide 11: Business Unit Presentation
Business Unit Presentation 10
Slide 12: Metal Detection – Africa
METAL DETECTION – AFRICA • 54 countries in Africa – almost all have artisanal mining activity • Codan’s footprint includes 10 dealers in 34 countries • 19 accredited service centres in 13 countries Our response to the current situation: • Launch of GPX6000 into Africa has commenced • Continuous in c
Slide 13: Metal Detection – Rest of World
METAL DETECTION – REST OF WORLD KEY INITIATIVES: • Several new Coin & Treasure detectors • Direct E-Commerce presence • Ongoing development in retail across USA, Australia and Europe • New retailers • Larger store presence • Minelab India office established • Significant Countermine orders: • Ukrain
Slide 14: Metal Detection Manticore
METAL DETECTION MANTICORE High End Coin and Treasure Detector US$1,599 RRP High Power Multi-IQ+ Fast Target Separation More Depth 2 Dimensional Discrimination Waterproof Lightweight Significant pre-orders 13
Slide 15: Business Unit Presentation
Business Unit Presentation 14
Slide 16: Market Diversity Ensures Revenue Stability and Growth
MARKET DIVERSITY ENSURES REVENUE STABILITY AND GROWTH MARKET DIVERSITY ENSURES REVENUE STABILITY AND GROWTH MILITARY LAW ENFORCEMENT UNMANNED BROADCAST COMMERCIAL/NGO & INTELLIGENCE Market Segment Market Segment Market Segment Market Segment Market Segment • Army • Safe Cities • Air • Wireless Camer
Slide 17: Tactical Communications
TACTICAL COMMUNICATIONS WHY WE WIN KEY WINS • Unique, world class radio waveforms Strong HF orders $11.8m in total over the first quarter Renewal of US military customer contracts $8.8m • Market segmentation and focus Strong broadcast order intake $6.5m • Globally distributed engineering of ex
Slide 18: Tactical Communications – Case Study Southern Border
TACTICAL COMMUNICATIONS – CASE STUDY SOUTHERN BORDER UNITED STATES OF AMERICA • Coverage where you don’t have coverage today • Augment or be augmented by 4G or 5G Existing border coverage • Private spectrum so hard Predicted border coverage to detect or jam MEXICO • Secure with government grade accr
Slide 19: Business Unit Presentation
Business Unit Presentation 18
Slide 20: Zetron
ZETRON WHY WE WIN KEY WINS • More than 75 years of proven experience $6.8m LMR & Max Dispatch (5 yr term) • Long term steadfast commitment to standards and interoperability $6.8m ACOM Command & Control (10 yr term) • End to end solutions backed by excellent services and unwavering commitment to qual
Slide 21: Case Study - Iowa
CASE STUDY - IOWA IOWA model to update public safety infrastructure – Zetron well positioned for additional NG911 solutions “It’s really been a win-win proposition for our counties that have joined the program so far.” Blake DeRouchey 911 Program Director Iowa Department of Homeland Security and Eme
Slide 22: Slide 22