Codan Limited · ASX:CDA
Codan — H1 FY2004 Earnings Presentation
15 slides from Codan's earnings presentation, February 2004
Slide 1: Codan Limited Half-Year Results to Dec 2003
Codan Limited Investor Presentation — Half-Year Results to 31 Dec 2003 CODAN Mike Heard Managing Director February 2004
Slide 2: Codan—The Company & Business
Codan—The Company & Business Australian company founded in 1959 Serving global markets for communications and broadcast products Listed in November 2003 IPO forecast FY 04 Revenue $125.5 m, Net Profit After Tax $14.1 m Track record of 15% compound growth in revenue and profit over last 10 years Expo
Slide 3: Key financial information
Key financial information Statement of financial performance (Profit & Loss Statement) Half-Year to Half-Year to Growth Dec 2002 Dec 2003 $m $m Total Revenue 53.5 63.0 +17.8% Cost of Goods Sold 28.4 33.8 - Margin 25.1 29.2 +16.3% Margin% 46.9% 46.4% - Expenses (excluding interest) 16.5 17.2 +4.2% EB
Slide 4: Half-year results—Commentary
Half-year results—Commentary Sales and profits stronger than expected Strong demand for communications products HF Radio and Satellite Communications growth in private networks Terrestrial Microwave Links under-performed—due to depressed general telecommunications sector Broadcast products under-per
Slide 5: Key financial information
Key financial information Statement of financial position (Balance Sheet) 31 Dec 2003 31 Dec 2003 $m $m Current Assets Current Liabilities Cash 8.1 Accounts Payable 17.5 Receivables 13.7 Other 10.3 Inventories 14.0 Borrowings 2.5 Other 12.0 Provisions 5.4 47.8 35.7 Non-Current Assets Non-Current Lia
Slide 6: Interim dividend
Interim dividend Earnings per ordinary share 4.81 cents (on issued capital at 31 December 2003 fully diluted) Interim dividend per ordinary share 2.5 cents Payout ratio 51.8% Record date 18 March 2004 Payment date 1 April 2004
Slide 7: Outlook—Second half and full year
Outlook—Second half and full year Timing of large orders can influence sales across reporting periods Order timing depends upon rollout of customers’ networks Strong first half could be offset in second half Otherwise no significant change in markets and business Economic factors Exchange rate—hedge
Slide 8: Outlook—Codan's growth
Outlook—Codan’s growth Codan Revenue Growth 120 110 100 90 $ millions 80 70 60 50 40 30 20 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Year ended 30 June Actual 15% Compound annual growth NPAT Compound Annual Growth also 15 % over the same period
Slide 9: Outlook—Codan's growth: Revenue Growth
Outlook—Codan’s growth Revenue Growth ($m) 140 125.5 120 110.7 113.1 104.6 100 87.9 $ millions 80 75.8 67.6 60 49.6 40 36.6 20 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 Forecast Year end 30 June
Slide 10: Outlook—Codan's growth: EBITDA Growth
Outlook—Codan’s growth EBITDA Growth ($m) 35 30 29.0 26.9 23.9 24.2 25 20.1 $ millions 20 18.1 14.6 15 11.0 10 7.1 5 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 Forecast Year end 30 June
Slide 11: Opportunities for growth: High Frequency Radio Communications
Opportunities for growth High Frequency Radio Communications Penetration of first world government markets Increased sales in China and India New product release—manpack transceiver Market’s adoption of data and email transmission Demand arising from world security concerns R&D for additional new pr
Slide 12: Opportunities for growth: Satellite Communications
Opportunities for growth Satellite Communications Increased demand from world security concerns Recovery of general telecommunications market Expansion in to government and business private networks Release of new transceiver range Growth in Africa, CIS, China and India Recovery in Asia and South Am
Slide 13: Opportunities for growth: Terrestrial Microwave Links
Opportunities for growth Terrestrial Microwave Links Focus on developing world markets—Codan competitive advantage Market penetration using existing selling and distribution networks of HF and satellite Extension of product range through strategic alliance or acquisition Focus on specialist value-ad
Slide 14: Opportunities for growth: Broadcast Products—Provideo Systems
Opportunities for growth Broadcast Products—Provideo Systems Export drive, particularly Asia and Middle East Use of existing Codan sales and distribution networks New product development in SDTV and HDTV Sale of Codan products to TV broadcast industry High power amplifiers Digital video links
Slide 15: Thank you
Thank you Codan Terrestrial Microwave Link installed in Egypt within sight of the pyramids