Slide 1: Earnings Presentation Q4 and FY23
Earnings Presentation Q4 and FY23 1
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements The information in this presentation (which includes any oral statements made in connection therewith, as applicable) includes “forward-looking statements.” Forward-looking statements are based on our beliefs and assumptions and on information currently availabl
Slide 3: Carzuka, Karooooo Logistics ownership and listings
NASDAQ TICKER “KARO” JSE TICKER “KRO” 100% 100% 70.1% CARZUKA KAROOOOO LOGISTICS Founded in South Africa, now headquartered in Singapore 3
Slide 4: We think beyond connected vehicles & equipment
We think beyond connected vehicles & equipment WE ARE ON A MISSION TO BE THE LEADING OPERATIONS CLOUD 4
Slide 5: We digitally transform operations
WE DIGITALLY TRANSFORM OPERATIONS WE ADD HUGE WE IDENTIFY WE SOLVE VALUE TO THE DAILY TRENDS AND PROBLEMS OPERATIONS OF DEVELOP OUR CUSTOMERS SOLUTIONS Fleet & equipment management · Maintenance · Resource scheduling · Logistics & delivery operations management · Field worker management · Driver & v
Slide 6: Early start of a large & long-term growth opportunity
EARLY START OF A LARGE & LONG-TERM GROWTH OPPORTUNITY South Africa Southeast Asia Europe Africa- other On-the-ground (1) (1) (1) (1) operations are a >10M >100M >100M >10M massive opportunity and account for >40% (2) of global GDP 1,314,902 185,147 143,878 73,150 FY23 Q4 FY23 Q4 FY23 Q4 FY23 Q4 (1)M
Slide 7: Karooooo services small to large enterprise customers across diverse industries
KAROOOOO SERVICES SMALL TO LARGE ENTERPRISE CUSTOMERS ACROSS DIVERSE INDUSTRIES 105,000+ Commercial Customers (Q4 FY22: 88,000+) NO CUSTOMER OR INDUSTRY CONCENTRATION RISK
Slide 8: Our culture
OUR CULTURE WE TAKE OWNERSHIP Close interaction with customers and deep understanding of business operations VERTICAL INTEGRATION SCALABLE SOLUTIONS Control of our distribution allowing Consistent investment in, and for fast adaptation with best results improvement on, our proprietary internal WORLD
Slide 9: Key differentiators
KEY DIFFERENTIATORS UNIQUE GO-TO-MARKET STRATEGY VERTICALLY GREAT CUSTOMER INTEGRATED EXPERIENCE BUSINESS MODEL WHY PROPRIETARY WE WIN INTERNAL ENTREPRENEURIAL MANAGEMENT CULTURE SYSTEMS USER FRIENDLY STRONG END-TO-END DISTRIBUTION OPERATIONS CHANNELS CLOUD 9
Slide 10: Global trends driving increased demand & adoption for our platform
GLOBAL TRENDS DRIVING INCREASED DEMAND & ADOPTION FOR OUR PLATFORM DIGITALISATION ESG COMPLIANCE 10
Slide 11: Asia: an underpenetrated, fragmented market with a massive TAM
ASIA: AN UNDERPENETRATED, FRAGMENTED MARKET WITH A MASSIVE TAM Our advanced cloud platform and robust service delivery positions us well to compete favourably in Asia Rapidly growing Many small Digitally savvy Strong cultures competitors customers 11
Slide 12: Asia: also a market with forward thinking companies driving change
ASIA: ALSO A MARKET WITH FORWARD THINKING COMPANIES DRIVING CHANGE Service delivery as Pioneering EV Data-driven supply a key differentiator adoption chain management • Data integrations for platform • 10,000 daily deliveries • Significant reduction in speeding development successfully managed event
Slide 13: Untapped network effect of our platform
UNTAPPED NETWORK EFFECT OF OUR PLATFORM We are aware of the much needed related services given our large data pool THE SCALE OF DATA ON OUR CLOUD IS VAST & GROWING (1) 125Bn + valuable data points monthly (1)For the month of February 2023 13
Slide 14: Investment highlights
INVESTMENT HIGHLIGHTS Our strong management, entrepreneurial culture and vertically integrated business model are core to our success. We have a proven track record of growth and profitability in varying macro-economic headwinds across regions. Entrepreneurial mindset with First-hand operational Agi
Slide 15: Financial performance for Q4 and FY23
Financial performance for Q4 and FY23 15
Slide 16: Decade-plus track record of strong cash generation & robust earnings
KAROOOOO HAS A DECADE-PLUS TRACK RECORD OF STRONG CASH GENERATION & ROBUST EARNINGS Q4 FY23 FY23 UP 60% UP 26% Operating Q4 FY23 ZAR 237M FY23 ZAR 882M Profit Q4 FY22 ZAR 149M FY22 ZAR 699M UP 51% UP 27% Earnings Per Q4 FY23 ZAR 4.70 FY23 ZAR 19.29 Share Q4 FY22 ZAR 3.11 FY22 ZAR 15.24 UP 54% UP 44%
Slide 17: Performance by business segment
PERFORMANCE BY BUSINESS SEGMENT KAROOOOO 100% 100% 70.1% NASDAQ “KARO” JSE “KRO” KAROOOOO CARZUKA LOGISTICS Q4 FY23 FY23 Q4 FY23 FY23 Q4 FY23 FY23 Q4 FY23 FY23 Composition of Total Revenue 87% 88% 7% 7% 6% 5% Revenue (ZAR M) 916 3,507 796 3,077 64 251 56 180 Revenue Growth 24% 28% 16% 17% 98% 273% 1
Slide 18: Robust business model and strong cash position
KAROOOOO’S ROBUST BUSINESS MODEL AND STRONG CASH POSITION Net Cash on hand ZAR M Strong unit economics 966 Healthy Robust operating margins Debtor’s Days 718 Consistently beaten Rule of 40 (1) ▲ 35% 31 Quality balance sheet FY23 Strong cash position FY22: 34 days As of Feb 2022 As of Feb 2023 Strong
Slide 19: Karooooo's EPS reconciliation
KAROOOOO’S EPS RECONCILIATION Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 FY23 CARTRACK 5.12 5.18 5.19 5.12 20.61 CARZUKA (0.15) (0.26) (0.54) (0.47) (1.42) KAROOOOO LOGISTICS (0.01) 0.01 0.05 0.05 0.10 TOTAL 4.96 4.93 4.70 4.70 19.29 EARNINGS WERE NEGATIVELY IMPACTED BY DIVIDEND WITHHOLDING TAXES OF ZAR27 MILL
Slide 20: Cartrack extending decade-plus track record of execution excellence
CARTRACK EXTENDING DECADE-PLUS TRACK RECORD OF EXECUTION EXCELLENCE Scale Growth Profitability Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M 1,717 793 1,679 248 771 1,600 733 1,5261,543 707 221 224 222 1,470 663 670 1,409 209 1,366 628 1,306 606 198 1,246 567 574 185 542 182 181
Slide 21: Cartrack's strong annual compounding growth at scale
CARTRACK’S STRONG ANNUAL COMPOUNDING GROWTH AT SCALE Scale Growth Profitability Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M ▲ 13% ▲ 17% ▲ 28% 1,717 3,004 915 1,526 2,566 2,209 727 1,306 715 1,888 1,127 631 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 WITH STRONG
Slide 22: Cartrack continues decade-plus track record of strong SaaS revenue growth
CARTRACK CONTINUES WITH DECADE-PLUS TRACK RECORD OF STRONG SaaS REVENUE GROWTH Q4 FY23 FY23 UP 18% UP 17% Subscription Q4 FY23 ZAR 793M FY23 ZAR 3,004M Revenue Q4 FY22 ZAR 670M FY22 ZAR 2,566M UP 16% UP 17% Revenue Q4 FY23 ZAR 796M FY23 ZAR 3,077M Q4 FY22 ZAR 686M FY22 ZAR 2,637M 98% OF CARTRACK’S R
Slide 23: Cartrack demonstrates its ability to expand margins
CARTRACK DEMONSTRATES ITS ABILITY TO EXPAND MARGINS Gross Operating Adjusted Gross Profit Operating Profit Adjusted Profit Profit EBITDA Margin Margin EBITDA Margin UP 27% UP 61% UP 23% IMPROVED IMPROVED IMPROVED Q4 FY23 ZAR 568M Q4 FY23 ZAR 248M Q4 FY23 ZAR 371M Q4 FY23 71.4% Q4 FY23 31.1% Q4 FY23
Slide 24: Cartrack leading unit economics >9x
CARTRACK LEADING UNIT ECONOMICS Lifetime Value of Low Cost of Acquiring a Strong Benefits from (1) Customer Relationships Customer (2) Economies of Scale ▲ 95% FY23 Gross Profit Margin based only on Subscription Revenue >9x Commercial Customer 73% LTV to CAC Retention Rate FY22: 70% WELL POSITIONED
Slide 25: Cartrack's subscriber unit economics
CARTRACK’S SUBSCRIBER UNIT ECONOMICS Average Cost of adding a Subscriber to our cloud (1) Average Cost of Acquiring a Subscriber takes into account vehicles for new & existing customers ZAR 2,264 2,148 2,093 2,070 FY21 FY22 FY23 660 880 ARPU (ZAR) 154 151 155 718 943 OpEx Subscriber contract life cy
Slide 26: Cartrack continues to grow subscriber base & ARR with solid traction in Southeast Asia
CARTRACK CONTINUES TO GROW SUBSCRIBER BASE & ARR WITH SOLID TRACTION IN SOUTHEAST ASIA ARR ZAR M ▲ 19% Y-on-Y 3,235 ‘000s Subscribers FY21 FY22 FY23 Change 2,727 SOUTH AFRICA 1,014 1,186 1,315 11% 2,377 ASIA, MIDDLE EAST, USA 119 145 185 28% EUROPE 111 127 144 13% AFRICA- OTHER 62 68 73 8% TOTAL 1,3
Slide 27: Cartrack operating metrics investing for future growth
CARTRACK OPERATING METRICS INVESTING FOR FUTURE GROWTH Long-term FY21 FY22 FY23 Targets (1) Research & Development as a % of Subscription Revenue 5% 6% 6% 4-6% Sales & Marketing as a % of Subscription Revenue 11% 13% 13% 17-19% General & Administration as a % of Subscription Revenue 22% 21% 22% 12-1
Slide 28: Cartrack meets 2023 outlook
CARTRACK MEETS 2023 OUTLOOK FY21 FY22 FY23 FY23 Outlook Number of subscribers (000s) 1,306 1,526 1,717 1,700 – 1,900 Cartrack’s Subscription Revenue (ZAR M) 2,209 2,566 3,004 2,950 – 3,100 Cartrack’s Adjusted EBITDA margin (1) 49% 47% 47% 45% – 50% (1) Adjusted EBITDA margin is a non-IFRS measure. P
Slide 29: Cartrack's outlook for 2024
CARTRACK’S OUTLOOK FOR 2024 FY21 FY22 FY23 FY24 Outlook Number of subscribers (000s) 1,306 1,526 1,717 1,900 – 2,100 Cartrack’s Subscription Revenue (ZAR M) 2,209 2,566 3,004 3,400 – 3,600 Cartrack’s Operating Profit margin 32% 27% 30% 28% – 31% 29
Slide 30: Carzuka & Karooooo Logistics continue to gain traction
CARZUKA & KAROOOOO LOGISTICS CONTINUE TO GAIN TRACTION Carzuka Carzuka Karooooo Logistics (1) Karooooo Logistics (1) Revenue Operating Profit Revenue Operating Profit ZAR M ZAR M ZAR M ZAR M Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 72 56 54 65 64 (3) (3) (4) (4) (4) 2 2 50 41
Slide 31: Questions
YN A KAROOOO0O Questions