Codan Limited Upgraded Profit Guidance: Stronger First Half

Codan Limited

18 December 2019ABN 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

CODAN LIMITED UPGRADED PROFIT GUIDANCE:

STRONGER FIRST HALF

• Upgraded forecast half-year profit to now be in the order of $30 million
• Delivered Codan Communications $15 million Kenyan contract
• Continuing strong metal detector sales
• Strengthening balance sheet - $44 million net cash position at 30 November 2019

At the Annual General Meeting held in October 2019, we stated that the company had made an excellent start to the first four months of the year. These business conditions have continued into November and December, with Metal Detection and Communications sales exceeding our expectations.

The Board now expects the underlying net profit after tax for the six months to 31 December 2019 to be in the order of $30 million.

Large projects like the Tactical Communications project in Kenya may not be repeated in the second half and, given the strength of our metal detector sales in the first half, it is too early to determine if our traditional second-half weighting of sales will occur this year.

We will continue to keep shareholders updated as the year progresses.

On behalf of the Board

Michael Barton

Company Secretary

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.

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