June Trading Update and Cash Position

17 June 2020

Codan Limited ABN 77 007 590 605

Technology Park

2 Second Avenue Mawson Lakes SA 5095

Australia

PO Box 35

Salisbury South SA 5106

Australia

COMPANY ANNOUNCEMENTS PLATFORM

AUSTRALIAN SECURITIES EXCHANGE

Trading Update and Cash Position

In our last trading update, we disclosed that our sales were down 20% in April against our record first-half run rates. At the time, our Malaysian-based contract manufacturers were operating at lower capacities due to COVID-19 restrictions.

In early May, the Malaysian Government removed restrictions on their manufacturing sector. Since then our supply partners have increased their production capacity and are now supplying product at pre-pandemic levels.

Demand has remained strong for our metal detectors across both our recreational and gold mining markets, and May was a particularly strong month for our Communications business, with a $7 million project delivered by our Tactical Comunications division. As a result, the group had a record sales month in May and has returned to operating at similar levels to the record first-half run rate.

Cash generation has been excellent, and the balance sheet has further strengthened to circa $85 million net cash.

Although we continue to operate in very uncertain times, Codan will deliver a record profit this year in the order of $63 million net profit after tax.

On behalf of the Board

Michael Barton Company Secretary

This announcement was authorised by the Board of Directors.

Codan is a technology company that provides robust technology solutions that solve customers' communications, safety, security and productivity problems in some of the harshest environments around the world. Our customers include United Nations organisations, mining companies, security and military groups, government departments, major corporates as well as individual consumers and small-scale miners.

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