Slide 1: Earnings Presentation Q2 FY22
Earnings Presentation Q2 FY22 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: Founded in South Africa, now headquartered in Singapore
NASDAQ TICKER “KARO” JSE TICKER “KRO” 100% Founded in South Africa, now headquartered in Singapore 3
Slide 4: To build the leading mobility SaaS platform that maximizes the value of data
In our view, all vehicles will be connected & data will drive all aspects of mobility in the future To build the leading mobility SaaS platform that maximizes the value of data 4
Slide 5: We contextualize billions of data points & drive connectivity for our customers
WE CONTEXTUALIZE BILLIONS OF DATA POINTS & DRIVE CONNECTIVITY FOR OUR CUSTOMERS & Operational improvements Telematics fleet Predictive analytics Proprietary APIs & management in-vehicle third-party systems Delivery management Smart-Devices receive & push data DIFFERENTIATED AI powered video Field se
Slide 6: We solve mobility problems
WE SOLVE MOBILITY PROBLEMS High Fragmented Unproductive Safety & Eco Logistics Scaling Digitalizing Secure Vehicle Competitively Operating & Inefficient Use of Compliance Operational Delivery In Field Buying & Priced Costs Workflows Resources Management Operations Operations Selling Insurance Platfo
Slide 7: Untapped network effect of our platform
UNTAPPED NETWORK EFFECT OF OUR PLATFORM WE ENRICH THE DAY-TO-DAY OPERATIONS OF OUR CUSTOMERS 7
Slide 8: A large, underpenetrated market
A LARGE, UNDERPENETRATED MARKET In our view, all vehicles will be connected & data will drive all aspects of mobility in the future 1,094,001 131,670 118,061 64,877 Q2 FY22 Q2 FY22 Q2 FY22 Q2 FY22 Largely Underpenetrated Market Penetrated Market Focus on customer acquisition Focus on increasing ARPU
Slide 9: Performance for Q2 FY22 & HY22
Performance for Q2 FY22 & HY22 9
Slide 10: Healthy subscription revenue growth, strong customer acquisition
HEALTHY SUBSCRIPTION REVENUE GROWTH Subscriber Subscription Revenue Growth on a Subscription Revenue Growth constant currency basis Growth Q2 FY22 1.409M Q2 FY22 ZAR 654M Q2 FY22 ZAR 628M Q2 FY21 1.175M Q2 FY21 ZAR 542M Q2 FY21 ZAR 542M Subscription Revenue Revenue Growth on a Revenue as a % of Tota
Slide 11: A history of consistent execution with strong financial discipline
A HISTORY OF CONSISTENT EXECUTION Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M 198 1,409 182 185 178 1,366 628 168 159 163 163 161 606 1,306 147 574 1,246 567 542 1,175 526 1,134 1,127 503 1,089 488 1,039 455 990 441 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 12: Net subscriber additions
NET SUBSCRIBER ADDITIONS Covid-19 70,916 102,609 60,470 59,911 78,172 48,897 49,775 42,139 41,626 37,770 48,658 29,275 7,032 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 HY20 HY21 HY22 FY20 FY21 FY22 Q1 Q2 Q3 Q4 CONSISTENTLY GROWING OUR SUBCRIBER BASE 12
Slide 13: Our low cost of acquiring a subscriber
OUR LOW COST OF ACQUIRING A SUBSCRIBER Total Unit Cost of Acquiring a Subscriber(1) ZAR 2,066 1,953 Subscriber Contract Life Cycle Q2 FY21 Q2 FY22 725 OpEx 625 OpEx ARPU (ZAR) 156 151 Subscriber contract life cycle (Months) 60 60 1,328 CapEx 1,341 CapEx Subscription revenue gross profit margin 72% 7
Slide 14: Continued expansion despite Covid-19
CONTINUED EXPANSION DESPITE COVID-19 HY-o-HY ‘000s Subscribers HY20 HY21 HY22 change Subscribers 802 903 1,094 21% Subscribers 86 110 132 20% Subscribers 91 102 118 16% Subscribers 59 60 65 7% 14
Slide 15: Investing for future growth
INVESTING FOR FUTURE GROWTH Sales & marketing R&D G&A ZAR M ZAR M ZAR M 36 132 85 119 27 56 ▲ ▲ ▲ Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 STRATEGIC & DISCIPLINED CAPITAL ALLOCATION 15
Slide 16: Robust operating metrics, Rule of 40 beaten
ROBUST OPERATING METRICS Investing for the future Q2 FY21 Q2 FY22 HY21 HY22 Research & Development as a % of Subscription Revenue 5% 6% 5% 6% Sales & Marketing as a % of Subscription Revenue 10% 14% 10% 14% General & Administration as a % of Subscription Revenue 22% 21% 21% 21% (1) Adjusted EBITDA m
Slide 17: Cash flow, strong balance sheet
CASH FLOW Continued strategic investment into customer acquisition & long-term growth Cash & Cash Equivalents Operating Activities Investing Activities: PPE Free Cash Flow(1) ZAR M ZAR M ZAR M ZAR M 664 516 271 288 442 228 171 233 ▲ ▼ ▲ ▼ HY21 HY22 HY21 HY22 HY21 HY22 HY21 HY22 STRONG BALANCE SHEET
Slide 18: Outlook remains unchanged
OUTLOOK REMAINS UNCHANGED Geared for growth and scalability with strong financial discipline and earnings FY20 FY21 HY22 FY22 Outlook Number of subscribers (000s) 1,127 1,306 1,409 1,500 – 1,600 Subscription Revenue (ZAR M) 1,888 2,209 1,234 2,500 – 2,700 Adjusted EBITDA margin (Excluding Carzuka &
Slide 19: Thank You
yon A KAROOOOO Thank You
Slide 20: Appendix
Appendix REFER TO Q2 FY22 EARNINGS MEDIA RELEASE FOR DETAILED FINANCIAL TABLES & RECONCILIATIONS 20
Slide 21: Our success across industries
OUR SUCCESS ACROSS INDUSTRIES 21
Slide 22: Fleet owners and drivers love us
FLEET OWNERS AND DRIVERS LOVE US Optimizing vehicle maintenance & driver performance • Digitalized MAN Service Care & streamlined maintenance • Real-time information about deviations, unsafe driving & unproductive use of resources • Powerful dashboards • Clear return on investment for customers Payl
Slide 23: Fleet owners and drivers love us
FLEET OWNERS AND DRIVERS LOVE US & Compliance with health, safety & environmental regulations & accident prevention • Comprehensive safety of personnel • Integrated cameras, anti-collision technology & driver prevention lock • Driver behavior management towards zero harm in road transportation • Tra
Slide 24: One differentiated & powerful platform
ONE DIFFERENTIATED & POWERFUL PLATFORM Compliance Know The Driver Know The Driver Compliance Field Service Delivery MiFleet Insurance Business Intelligence INSURANCE BUY & SELL FINES & CARS LICENCE Carzuka AI Video and Fleet Telematics Tyres & Refer to the Appendix for Platform Overview 24
Slide 25: Our platform advantages
OUR PLATFORM ADVANTAGES Easy-to-use & implement Seamless unified platform Massive data scale Rapid innovation Strong customer success helpdesks Reliable & secure 25
Slide 26: MiFleet
MIFLEET Integrate, digitalize and automate fleet admin, maintenance, cost analysis and compliance 26
Slide 27: MiFleet features
Get reminders to renew any important contracts or update Automate your maintenance plans based on usage and regulatory documents in advance to avoid extra penalties or diagnostics to avoid unnecessary breakdowns or downtime. downtime. Get automatically alerted of potential fraud when a vehicle’s Int
Slide 28: Delivery
DELIVERY Empower drivers, automate processes, boost efficiency and scale operations to offer fast and ` ` affordable deliveries that exceed customer expectations. 28
Slide 29: Delivery features
Auto-dispatch your nearest optimal drivers or allow a pool of drivers accept on-demand deliveries based on their availability. Streamlined customer service processing with electronic proof of delivery and delivery timestamps. ` ` Integrated routing that accounts for location, time, capacity and Real
Slide 30: Field Service
FIELD SERVICE Effortlessly plan, create and manage on-site jobs and field workers to deliver the best customer service 30
Slide 31: Field service features
Ensure a strong customer satisfaction and service quality with With everything in one place and accessible by all teams double photos of the completed jobs and a customer signature upon bookings are eliminated and resource management can be completion. effortlessly optimized. Keep track of all your
Slide 32: Business Intelligence
BUSINESS INTELLIGENCE Track trends, compare vehicles and drivers, pinpoint inefficiencies and benchmark your fleet against your industry to make data-driven business decisions 32
Slide 33: Fleet and industry benchmarks from billions of data points
Accurate fleet and industry benchmarks generated using billions of data points from over 1.4m subscribers allow fleet managers to understand their relative performance internally and externally. AI powered help guides and introductory data analysis tours with recommendations for fleet manager traini
Slide 34: AI Video Telematics & LiveVision
AI VIDEO TELEMATICS & LIVEVISION Prevent incidents and establish a safety first culture with in-cab audible alerts and effective footage based driver coaching 34
Slide 35: AI detection of dangerous events and driver coaching
Dangerous events such as drowsiness, distracted driving or Driver scorecards are used alongside footage highlighting all tailgating are proactively detected using AI, and drivers are areas for improvement for drivers to ensure effective coaching. alerted in real-time to prevent accidents. Footage is
Slide 36: Fleet Telematics
FLEET TELEMATICS Gain total control of vehicles, drivers and cargo with real-time visibility and alerts to plan and optimize fleet utilization 36
Slide 37: Know The Driver
KNOW THE DRIVER Holistic risk management solution driving increased compliance and enabling developmental finance, insurance and other services 37
Slide 38: Eco & Compliance
Temperature range throughout entire delivery 23oF to 25oF ECO & COMPLIANCE Effortless compliance, improved fuel economy, reduced food spoilage and actionable fleet eco-efficiency scoring 38
Slide 39: Carzuka
CARZUKA A seamless, personalized and secure end-to-end vehicle buying and selling experience 39