Slide 1: Real-Time Vehicle Tracking: Final Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 26 February 2018 Final Results Presentation
Slide 2: Highlights
Highlights Good growth in fleet installations • Strong development of our fleet markets • Good growth in subscription and customer bases • Good progress in transition away from low-margin insurance volume • Reinstatement of some insurance volume at higher pricing achieved in second half • Continued
Slide 3: KPIs
KPIs 2017 2016 Change Fleet installations (units) 27,227 22,224 23% Fleet subscription base (units) 105,314 87,889 20% Fleet customer base 10,961 9,105 20% Fleet attrition (annualised %) 10.1 10.0 Fleet invoiced recurring revenues (£’m) 15.6 13.6 14% Fleet revenue (£’m) 17.0 14.9 14% Insurance insta
Slide 4: Recurring Revenue
Recurring Revenue 16 £’m 2.00 The chart shows invoiced 2017 £’m 14 fleet subscription revenue segmented by year of 2016 customer acquisition 12 1.50 2015 10 2014 8 1.00 2013 6 2012 4 2011 0.50 2010 2009 2 2002 to 2008 0 0.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 4
Slide 5: Financial Results
Financial Results REVENUE BY SECTOR £’m FLEET INSURANCE 7.5 Focus on fleet 8.4 6.7 PEOPLE 17.0 Recruitment of senior 14.9 management to focus on the 13.0 fleet business: COO and heads of UK and France MARKETING Marketing investment 2015 2016 2017 maintained (in line with 2016) ADJUSTED EBITDA £’m 7.
Slide 6: Performance by Market
Performance by Market 2017 Increase / (Decrease) UK France USA Total UK France USA Total Fleet Revenue (‘m) £14.0 €2.2 $1.5 £17.0 9% 24% 66% 14% Fleet Installed Base 83,210 13,131 8,973 105,314 16% 32% 45% 20% Fleet Customer Base 7,725 1,776 1,460 10,961 17% 24% 36% 20% Units per Customer 10.8 7.4 6
Slide 7: Financial Overview
Financial Overview 2017 2016 Change Fleet revenue 17,030 14,909 14% Insurance revenue 7,458 8,430 (12%) Total revenue 24,488 23,339 5% Gross profit 14,842 14,063 6% Gross margin 61% 60% Operating profit 6,593 6,543 1% Operating margin 27% 28% Adjusted EBITDA 7,199 6,808 6% Earnings per share (p) 12.
Slide 8: Cash Generation
Cash Generation CASH GENERATED FROM OPERATIONS 8,000 120% £’000 7,000 7,014 100% 6,781 6,812 6,000 5,845 80% 5,000 5,014 4,000 60% 3,000 40% 2,000 20% 1,000 0 0% 2013 2014 2015 2016 2017 Cash generated from operations % Operating Profit % Adjusted EBITDA 8
Slide 9: Cash
Cash £’m Proceeds from share issues FREE CASH FLOW £6.3m Free 0.2 Dividends (2016: £6.0m) cash flow 5.4 paid (including 6.3 supplementary YEAR END CASH BALANCE dividend) £7.3m (2016: 6.2m) 7.3 6.2 Net cash Net cash at end of at end of 2016 2017 9
Slide 10: 2017 Dividend
2017 Dividend Final Interim dividend: Supplementary £’m dividend £’m 2.4p per share dividend: 7.3 7.0 0.7 Less taxes 6.8p per share paid Final dividend: 2.0 4.3p per share Less 3.2 Supplementary 50% interim dividend dividend 1.1 3.1 2.0 2.0 Cash flow Final Year end Retained from dividend cash balanc
Slide 11: Fleet Tracking
Fleet Tracking ACTIVE VEHICLE 100,000 SUBSCRIPTIONS AT YEAR-END 21% CAGR 80,000 60,000 40,000 Growth in the fleet subscription base is core to our business model Over the past 5 years we have maintained a 20,000 CAGR of 21% Excellent progress made in all three markets 0 Further investment planned fo
Slide 12: Fleet UK
Fleet UK 16 + 9% £14.0m +16% 83,210 £’m 80000 New installations increased by 25% to 12 19,714 60000 8 40000 4 20000 Strong growth in new installations Good performance from each sales channel Continuing development of sales teams and 0 0 processes 2016 2017 2016 2017 Additional potential with some l
Slide 13: Fleet France
Fleet France 2.5 €’m +24% €2.2m +32% 13,131 New installations increased by 30% to 2.0 3,819 10000 1.5 1.0 5000 Excellent progress in subscription base 0.5 Significant progress in distribution and price comparison channels 0.0 0 Continuing development of sales team 2016 2017 2016 2017 Strong end to t
Slide 14: Fleet USA
Fleet USA 10000 $’m +66% $1.5m +45% 8,973 1.5 New installations increased by 5% to 3,694 1.0 5000 0.5 Good growth in subscription base Strong performance in direct sales channel Further work needed on indirect channels 0.0 0 2016 2017 2016 2017 Investment in marketing and sales automation Revenue Su
Slide 15: UK Insurance Telematics
UK Insurance Telematics 80000 10.0 - 17% £m - 12% 9.0 The value of our service 70000 and data quality was 57,826 8.0 £7.5m clearly demonstrated in 60000 2017 7.0 50000 6.0 40000 5.0 30000 4.0 3.0 20000 Strategic shift from low-margin business 2.0 resulted in expected reduction in volume 10000 1.0 Co
Slide 16: Powered by Quartix
Powered by Quartix 40000 23,954 5.0 £3.2m - 35% - 27% £m 4.0 30000 3.0 20000 2.0 10000 A standard young-driver product for brokers, 1.0 using our fleet platform An excellent showcase for our service and 0 0.0 technology Jun 16 Jun 17 2016 6m 2017 6m Three brokers now active Fleet opportunities for t
Slide 17: The SafeSpeed Database
The SafeSpeed Database Each data point is assessed against the speed distribution for that stretch of road A unique Quartix capability which is saving lives A strong differentiator in both insurance and fleet Accident risk Speed limit 20 40 60 mph 17
Slide 18: Customer Acquisition
Customer Acquisition The value of our service and data quality was clearly demonstrated in the first half Optimisation of customer acquisition cost remains key to future growth Investment in sales and marketing automation for USA completed in 2017 New USA website launched in December Strategic focus
Slide 19: Growth and Outlook
Growth and Outlook FLEET SUBSCRIPTION BASE 100,000 Growth in subscriptions underpins fleet revenue 80,000 Good progress in all three fleet markets Continuing investment in customer acquisition 60,000 40,000 20,000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 20: Appendix: an Introduction to Quartix
Real-Time Vehicle Tracking Quartix Holdings plc Appendix: Final Results Presentation an Introduction to Quartix20
Slide 21: Our Proposition
Our Proposition Increased productivity and reduced risk Fleet customers use our software to: Insurers use our data and alerts to: • Increase capacity • Improve fuel economy • Assess risk • Respond to accidents • Reduce overtime payments • Eliminate fraud and wastage • Verify agreed vehicle usage • R
Slide 22: Background information
Background information 400,000 systems installed since 2001 A UK LEADER 166,000 vehicles currently tracked in the UK: • 83,000 across 8 insurance companies • 83,000 across 7,500 UK fleet clients +3,500 fleet clients in France and USA 22,000 vehicles tracked in France and USA Chicago STRONG FINANCIAL
Slide 23: Company values
Company values Long-term relationships MISSION “We provide operational information to maximise productivity and reduce risk for organisations with mobile workforces. Our customers improve their business performance with information delivered quickly and reliably through our web and mobile-based appl
Slide 24: Architecture
Architecture GPS GPRS/ 3G 24
Slide 25: Real-time tracking
Real-time tracking ROUTE MAPS LIVE TRACKING Available online with timing, speed and speed distribution information With google maps, streetview and satellite imaging. Also available in mobile apps for iOS TIMESHEETS and Android Available online or delivered by email in HTML or Excel format 25
Slide 26: Real-Time Vehicle Tracking: Final Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 26 February 2018 Final Results Presentation