I I I nvestor Presentation I nvestor Presentation t t P P t ti t ti Codan Limited Business Performance Half Year 2011 Codan Limited Business Performance Half Year 2011 Donald McGurk Donald McGurk Managing Director and CEO Managing Director and CEO Michael Barton Michael Barton Chief Financial Officer Chief Financial Officer
Codan Overview Codan Overview • C d Codan Limited (ASX: CDA) design, Li it d (ASX CDA) d i manufacture and market "clever" products for global low to medium products for global low to medium volume niche markets. • ~ 500 employees 500 l • Exports represent approximately 85% p p pp y of revenues to more than 150 countries Clever Products Global Niche Markets Innovative products of our Demand in many countries, own design own design often the developing world often the developing world • Business segments: High intellectual property Global market size hundreds content, high value-add of millions of dollars (not – Communications billions) Exceptional performance, Exceptional performance Likely that Codan will be a Likely that Codan will be a • Radio reliability and support market leader • Satellite Electronics products “Below the radar” of large preferably potential competitors – Metal detection Page 2
Communications Communications HF R di HF R di HF Radio Communications HF Radio Communications C C i i ti ti • Products and systems for remote area long distance radio communications g • Used for: – Rapid network deployment Rapid network deployment – Communications without the need for transmission infrastructure – Back-up emergency communications Back up emergency communications • End user organisations: g – Security – Military – Peacekeeping and humanitarian p g Page 3
Communications Communications HF Radio Communications HF R di HF R di HF Radio Communications C C i i ti ti • The preferred supplier of HF communications products p pp p and systems to the developing world military, global security and peacekeeping markets • Compelling value proposition p g p p – Class-leading reliability with operational simplicity – Complete suite of operational features at the lowest life-cycle cost • Industry-leading capabilities y g p – Digital Voice – Frequency Hopping – Encryption – High Speed Data High Speed Data – Interoperability MANPORTABLE VEHICULAR TRANSPORTABLE HEADQUARTERS Page 4
Communications Communications HF Radio Communications HF R di HF R di HF Radio Communications C C i i ti ti Markets / Competitive Landscape Markets / Competitive Landscape • Military & Security – Leverage off Codan experience in industrialising markets – Codan offers flexible, best-value solutions for maturing security markets • Peacekeeping/NGO Agencies – Preferred supplier with the largest installed base • Commercial – Fragmented and declining market, strong Codan brand g g g Growth Strategy • Provide integrated customer solutions (radio communications) • Adjacent markets technologies products Adjacent markets, technologies, products • Leverage strong, established market positions in the developing world (Africa, China, India, Far East) Page 5
Communications Communications S t llit S t llit Satellite Communications Satellite Communications C C i i ti ti • World leading supplier of RF Subsystems for Satellite Earth Stations • Customers include system integrators service providers and mobile Customers include system integrators, service providers and mobile antenna platform manufacturers • Market segments include, maritime and offshore, mobile telecommunications, government and military networks 6 Maritime & Offshore Telecom Network Infrastructure Government & Military Networks Page 6
Communications Communications Satellite Communications S t llit S t llit Satellite Communications C C i i ti ti Hi hl Highly Competitive and Consolidating Market C titi d C lid ti M k t • New Executive leadership based in the US • • More US centric model More US centric model • Innovative / integrated product solutions to move up the value chain • Excellence in manufacturing Growth Strategy • Improved access to Government and Military markets through Locus X-Band • C Continue to dominate rapidly growing maritime segment ti t d i t idl i iti t • Exploit and explore (adjacent markets, technologies, products) Codan Satcom HQ in Pennsylvania USA Page 7
Minelab Metal Detectors Minelab supplies metal detection products and systems for Consumer, Mine Clearance and Artisanal Gold Mining markets Consumer : Detection of gold nuggets, coins, treasure and • artefacts by serious hobbyists, semi-professional prospectors and archaeologists prospectors and archaeologists Premium Premium ETRAC Mine Clearance : Detection of land mines and unexploded • ordnance by government and NGO demining organisations d b t d NGO d i i i ti and the military Countermine F3 Countermine F3 Artisanal Gold Mining : Detection of gold as a commercial • enterprise by small groups of prospectors Gold Machine Gold Machine GPX5000 Page 8
Minelab Metal Detectors Consumer Markets • 1 st world leisure market i.e. retirees, archaeologists, treasure hunters g , • USA is the largest single market Competitive Landscape • Largest global market share L t l b l k t h • Competition is US based and entrenched in that market • Superior mid to high end products • Superior mid to high end products • Significant patent protection • Strong investment in innovation Growth Strategies • US focus • Emerging country markets • 1st world markets: Growing populations • Wealth increasing • Activity increasing in popularity Activity increasing in popularity • Page 9
Minelab Metal Detectors Mine Clearance Mi Cl Markets • Estimated to be 50-100 million unexploded land mines globally • Unexploded Ordnance (“UXO”) – explosive weapons that did Unexploded Ordnance ( UXO ) explosive weapons that did not explode • Improvised Explosive Device (“IED”) – roadside bombs • Project-based business (Timing of large orders) Competitive Landscape • Only 3 or 4 significant competitors globally • Technologically superior T h l i ll i • Not just about performance, price important Growth Strategies Growth Strategies • Additional resources in the US • Leverage of HF Radio success in Africa • Release of F3 compact metal detector for armed forces Release of F3 compact metal detector for armed forces • Military and security market focus (IED and UXO) Page 10
Minelab Metal Detectors Artisanal A i l Markets • Developing world market focus • Commercial enterprise Commercial enterprise • Huge success in Africa Competitive Landscape p p • Dominant position based on superior technology • First entrant into growing market • Brand recognition in the “boom” markets • Codan/Minelab history in dealing in “remote” regions C d /Mi l b hi t i d li i “ t ” i Growth Strategies g • Investment into existing markets • Development of new markets • Substitute technology • “Rushes” lead to stable and significant residual markets “R h ” l d t t bl d i ifi t id l k t Page 11
Acquisition strategy Acquisition strategy q q gy gy • Codan has assigned high priority and resources to C d h i d hi h i it d t acquisitions • Successfully acquired and integrated Minelab and Locus • Successfully acquired and integrated Minelab and Locus Microwave • Strategic acquisitions are considered critical for the long- • Strategic acquisitions are considered critical for the long- term growth plan: – Bolt-ons: • Strengthen existing business units • Increasing market share and position • Access to adjacent markets, technologies and products A t dj t k t t h l i d d t – Diversifications: • Clever products in global niche markets Clever products in global niche markets • Potential to be number 1 or 2 in our niche • Australian, New Zealand, North America or European focus Page 12
Business Update Business Update p • Financial performance in line with guidance • New Managing Director and Chief Executive Officer • Business streamlined through divestment of non-core Business streamlined through divestment of non core assets • Minelab performance while not at the peak of FY10 remains • Minelab performance while not at the peak of FY10 remains very strong • HF Radio Communications has strong order book and sales HF R di C i ti h t d b k d l pipeline for second half • Satellite Communications currently being restructured to foster future growth Page 13
Recommend
More recommend
