Codan Limited · ASX:CDA
Codan — FY2011 Earnings Presentation
17 slides from Codan's earnings presentation, 2011
Slide 1: Investor Presentation: Business Performance Full Year 2011
I Investor t Presentation P t ti Codan Limited, Business Performance Full Year 2011 Donald McGurk Managing M i DiDirector t and d CEO Michael Barton Chief Financial Officer Peter Charlesworth General Manager, Minelab
Slide 2: Financial highlights
Financial highlights Annual dividend increased to 9 cents per share Second highest revenue and underlying profit in the company’s company s history Highest reported profit Continued strength of gold detector sales Radio Communications poised for significant growth Strategic options for s
Slide 3: Divisional overview
Divisional overview Communications Metal Detection Radio Communications Satellite Communications Page 3
Slide 4: Global presence
Global presence Global service and manufacturing facilities Page 4
Slide 5: Communications - highlights
Communications - highlights Radio Communications: − Well positioned in military and security market - strengthening sales pipeline − Signed an important licence agreement with a leading provider of advanced technology for high-frequency radio communications products Satellite Communications: − C
Slide 6: Communications - objectives and outlook
Communications - objectives and outlook Radio communications have set an aggressive growth target of 15% per annum for the next three years Focus our business on militaryy and security applications and solutions Resolve future direction for Satcom business Page 6
Slide 7: Minelab Metal Detectors: Metal detection products
Minelab Metal Detectors Metal detection products Minelab Mi l b supplies li metal t l detection d t ti products d t and d systems t for f consumer, mine clearance and artisanal gold mining markets Premium Coin & Treasure ETRAC Consumer: Detection of gold nuggets, coins, treasure and artefacts by s
Slide 8: Metal detection products - highlights
Minelab Metal Detectors Metal detection products p --highlights highlights Successful launch of GPX 5000 and GPX 4800 gold detectors Introduction of the new F3 Compact detector Sales to artisanal gold miners still delivering excellent ll t results lt Achieved successful consumer marketing ex
Slide 9: Metal detection products - objectives and outlook
Minelab Metal Detectors Metal detection products p --objectives objectivesand andoutlook outlook Aggressive new market development ~10 million small-scale gold prospectors/miners operating in remote corners of the world potentially have a need for our high-performance gold detectors Accelerate m
Slide 10: Financial overview - revenue
Financial overview - revenue Full F ll Year Y Full F ll Year Y Full F ll Year Y FULL YEAR RESULTS Jun 11 Jun 10 Jun 09 Revenue $m % $m % $m % M t ld Metal detection t ti products d t 92 1 92.1 54% 106 6 106.6 56% 41 7 41.7 32% Communications products 69.8 41% 70.1 37% 77.3 58% Other 7.7 5% 12.6 7% 1
Slide 11: Financial overview - P&L
Financial overview - P&L FULL YEAR RESULTS FY11 FY 10 FY 09 $m % $m % $m % Total revenue 169.6 100% 189.3 100% 132.4 100% Underlying business performance EBITDA 44.0 26% 56.1 30% 29.4 22% EBIT 35.0 21% 45.8 24% 21.5 16% Interest (3 0) (3.0) (3 1) (3.1) (4 6) (4.6) Net profit before tax 32.0 19% 42.7
Slide 12: Financial overview - balance sheet
Financial overview - balance sheet Jun 11 Jun 10 Jun 09 $m $m $m Strong balance sheet position: Working capital Receivables 14.6 12.5 16.1 Debtor collection has remained Inventories 23.3 25.1 14.2 excellent Payables (26.4) (28.5) (17.5) Total working capital 11.5 9.1 12.8 Investment made in inve
Slide 13: Financial overview - ratios
Financial overview - ratios FY11 FY10 FY09 Return on net operating assets (average) 33.1% 39.5% 17.5% Return on equity (average) 33.0% 42.5% 20.9% Underlying earnings per share 14.3 cents 18.8 cents 7.9 cents Earnings per share 13.3 cents 8.8 cents 7.4 cents Definitions Return on net operating ass
Slide 14: Financial overview - dividends
Financial overview - dividends FY11 FY10 FY09 Interim dividend per ordinary share 4.0 cents 3.5 cents 3.0 cents Final dividend per ordinary share 5.0 cents 4.5 cents 3.5 cents Total dividend per ordinary share 9.0 cents 8.0 cents 6.5 cents Franking 100% 100% 100% Record date: 15 September 2011 Payme
Slide 15: Acquisition strategy
Acquisition strategy The aim is to profitably expand the Codan group into related b i businesses th thatt lleverage our core competencies: t i – Ability to optimise the development and manufacture of electronics products and associated software – Ability to do business anywhere in the world Coda
Slide 16: Codan's success is based on continuous improvement
Codan’s success is based on continuous improvement Future desired state New insights Experiential learning Current satisfaction level Page 16
Slide 17: Response to major market change
Response to major market change Sec rit and military Security militar New insights Aid and humanitarian Experiential learning Page 17