Slide 1: Earnings Presentation Q2 FY24
Earnings Presentation Q2 FY24 1
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements The information in this presentation (which includes any oral statements made in connection therewith, as applicable) include s “forward-looking statements.” Forward-looking statements are based on our beliefs and assumptions and on information currently availab
Slide 3: Carzuka, Karooooo Logistics: founded in South Africa, headquartered in Singapore
NASDAQ TICKER “KARO” JSE TICKER “KRO” 100% 100% 70.1% CARZUKA KAROOOOO LOGISTICS Founded in South Africa, now headquartered in Singapore 3
Slide 4: Setting the Path for Tomorrow
SETTING THE PATH FOR TOMORROW THINKING BEYOND CONNECTED VEHICLES AND EQUIPMENT 4
Slide 5: We Digitally Transform Operations with Our Fully-Integrated Cloud Platform
WE DIGITALLY TRANSFORM OPERATIONS WITH OUR FULLY-INTEGRATED CLOUD PLATFORM WE CONTINUE DRIVING STRONG VALUE-ADDING PRODUCT INNOVATION AND ENHANCEMENT QUARTERLY COMPLIANCE AND ESG WORKFORCE & ASSET MANAGEMENT AND OPTIMISATION DRIVER & WORKER SAFETY AND WELLBEING REAL-TIME VISIBILITY OF VEHICLES, WORK
Slide 6: Customer Spotlight: Easy-to-Use Solution That Shows a Massive ROI
4 LITERS SAVED PER VEHICLE PER DAY1 CUSTOMER SPOTLIGHT “EASY-TO-USE PAYBACK PERIOD < 3 DAYS1 SOLUTION THAT ROI OVER 700%1 SHOWS A MASSIVE ROI” A large furniture manufacturer transformed operations to further SLASH CO2 EMISSIONS BY 2,840KG PER VEHICLE PER YEAR2 delight customers with digital dispatch
Slide 7: AI Video Provides Critical Insights to Establish a Safety First Culture
PRODUCT INSIGHTS CUSTOMER SPOTLIGHT AI VIDEO PROVIDES 20 AI SAFETY RISK EVENTS PER 100KM1 CRITICAL INSIGHTS TO 19 18 ESTABLISH A SAFETY 17 16 FIRST CULTURE 15 14 13 12 • Drivers are not aware of their behaviour 11 • Managers had no visibility into the severity and frequency of 1st Month 2nd Month 3r
Slide 8: Over 113,000 Customers Power Their Operations Using Our Cloud Platform
OVER 113,000 CUSTOMERS POWER THEIR NO INDUSTRY OR CUSTOMER CONCENTRATION RISK OPERATIONS AI AND MACHINE LEARNING ENHANCED USING OUR 170 BN+ VALUABLE DATA POINTS COLLECTED MONTHLY WITH STRONG NETWORK EFFECTS CLOUD PLATFORM 8
Slide 9: The Cartrack DNA Fuels Hard-to-Replicate Differentiators
THE CARTRACK DNA FUELS HARD-TO-REPLICATE DIFFERENTIATORS KEY DIFFERENTIATORS WHY BEST-IN-CLASS TALENT CHOOSES US UNIQUE CULTURE INNOVATION & CREATIVITY VERTICAL INTEGRATION OWNERSHIP & ENTREPRENEURSHIP ABILITY TO EXECUTE ON EASY-TO-USE SOLUTIONS AGILITY & ADAPTABLE BUILD SCALABLE INTERNAL AND EXTERN
Slide 10: Financial Performance for Q2 FY24
Financial Performance for Q2 FY24 10
Slide 11: Karooooo Has a Decade-Plus Strong Track Record of Growth at Scale
KAROOOOO HAS A DECADE-PLUS STRONG TRACK RECORD OF GROWTH AT SCALE Subscription Revenue Net Cash from Operating Activities Q2 FY24 ZAR 860M Q2 FY24 ZAR 304M Q2 FY23 ZAR 734M Q2 FY23 ZAR 240M Operating Profit Earnings Per Share Q2 FY24 ZAR 247M Q2 FY24 5.61 Q2 FY23 ZAR 218M Q2 FY23 4.93 11
Slide 12: Karooooo Has a Robust Business Model Backed by a Strong and Clean Balance Sheet
KAROOOOO HAS A ROBUST BUSINESS MODEL BACKED BY A STRONG AND CLEAN BALANCE SHEET Net Cash on hand ZAR M 1,137 Strong unit economics 1,001 966 Robust operating margins 651 Unleveraged balance sheet Q2 FY24 Strong cash conversion Q2 FY23: 33 days Q2 FY23 Q4 FY23 Q1 FY24 Q2 FY24 A CASH DIVIDEND OF USD26
Slide 13: Karooooo's Earnings Per Share
KAROOOOO’S EARNINGS PER SHARE EPS Growth EPS Reconciliation ZAR M 5.61 (1) FY22 FY23 Q1 FY24 Q2 FY24 5.09 4.96 4.93 4.72 4.70 4.70 16.57 20.61 5.40 5.89 3.92 3.85 3.61 (0.40) (1.42) (0.39) (0.42) (0.07) 0.10 0.08 0.14 16.10 19.29 5.09 5.61 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY22 FY22 FY22 FY22 FY23 FY23
Slide 14: Cartrack Extends Decade-Plus Track Record of Execution Excellence
CARTRACK EXTENDS DECADE-PLUS TRACK RECORD OF EXECUTION EXCELLENCE Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M 1,833 858 252 1,758 834 248 1,717 1,679 793 232 771 1,600 224222 733 221 1,543 1,526 707 1,470 209 663670 1,409 198 1,366 628 1,306 606 185 182 181 1,246 567574 1,175
Slide 15: Cartrack Starts to Gain Momentum with Record Q2 Net Subscriber Additions
CARTRACK STARTS TO GAIN MOMENTUM WITH RECORD Q2 NET SUBSCRIBER ADDITIONS ▲ 78,593 75,256 60,470 61,776 ▲ 57,251 55,587 40,375 42,139 38,471 16,800 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY2 FY23 FY24 Q1 Q2 Q3 Q4 15
Slide 16: Cartrack Continues with Decade-Plus Track Record of Growth
CARTRACK CONTINUES WITH DECADE-PLUS TRACK RECORD OF GROWTH (1) Subscription Revenue Revenue ARR Q2 FY24 ZAR 858M Q2 FY24 ZAR 884M Q2 FY24 ZAR 3,475M Q2 FY23 ZAR 733M Q2 FY23 ZAR 752M Q2 FY23 ZAR 2,960M (2) Operating Profit Adjusted EBITDA Subscriber Growth Q2 FY24 75,256 Q2 FY24 ZAR 252M Q2 FY24 ZAR
Slide 17: Cartrack's Strong Subscriber Unit Economics Continue
CARTRACK’S STRONG SUBSCRIBER UNIT ECONOMICS CONTINUE Average Cost of adding a Subscriber to our cloud (1) & ZAR 2,363 2,264 2,293 Q1 Q2 2,093 2,070 FY21 FY22 FY23 FY24 FY24 880 1,002 959 OpEx ARPU (ZAR) 154 151 155 160 159 660 718 Subscriber contract life 60 60 60 60 60 cycle (Months) Average life c
Slide 18: Cartrack Continues to Grow Subscriber Base & ARR with Traction in Southeast Asia
CARTRACK CONTINUES TO GROW SUBSCRIBER BASE & ARR WITH ENCOURAGING TRACTION IN SOUTHEAST ASIA ARR (1) ZAR M ▲ Q2 Q2 Q2 Q-on-Q ‘000s Subscribers FY22 FY23 FY24 Change 3,475 2,960 1,094 1,228 1,393 14% 2,523 132 165 207 26% 118 136 156 14% 65 71 77 8% 1,409 1,600 1,833 15% As at Aug 2021 As at Aug 2022
Slide 19: Cartrack Operating Metrics
CARTRACK OPERATING METRICS FY21 FY22 FY23 Q2 FY24 Subscription Revenue Gross Profit Margin 72% 70% 73% 72% Research & Development as a % of Subscription Revenue 5% 6% 6% 6% Sales & Marketing as a % of Subscription Revenue 11% 13% 13% 14% General & Administration as a % of Subscription Revenue 22% 21
Slide 20: Cartrack's Outlook for 2024
CARTRACK’S OUTLOOK FOR 2024 FY21 FY22 FY23 HY24 FY24 Outlook Number of Subscribers (000s) 1,306 1,526 1,717 1,833 1,900 – 2,100 Cartrack’s Subscription Revenue (ZAR M) 2,209 2,566 3,004 1,692 3,400 – 3,600 Cartrack’s Operating Profit Margin 32% 27% 30% 28% 28% – 31% SOLID START TO OUR 2024 FINANCIAL
Slide 21: 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 85 ZAR M ZAR M ZAR M 82 72 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 72 FY22FY22FY22FY22FY23FY23FY23FY23FY24FY24 65 64 62 54 56 50 8 (3) (3
Slide 22: Questions
YN A KAROOO00 Questions