Slide 1: Earnings Presentation Q4 & FY22
Earnings Presentation Q4 & 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: We think beyond connected vehicles & equipment
We think beyond connected vehicles & equipment 3
Slide 4: To establish the leading on-the-ground operations cloud
To establish the leading on-the-ground operations cloud 4
Slide 5: Operational partner helping customers evolve to ensure success
OPERATIONAL PARTNER HELPING CUSTOMERS EVOLVE TO ENSURE SUCCESS • Is my warehouse storage layout optimised? • What is my carbon footprint? • How can I unify data between sales, HR, accounting, billing and • Where are my cost leakages? operations? • Are my drivers fatigued or • How can I predict asset
Slide 6: Our diverse customer base: one size does not fit all
OUR DIVERSE CUSTOMER BASE: ONE SIZE DOES NOT FIT ALL Manufacturing, Mining, Retail, Utilities & Energy, Transport, Logistics, Construction, Financial Institutions, Government , Education Healthcare & medical, Agriculture, Food & Beverages (1) Valuable data points monthly Commercial customers Countri
Slide 7: Open operations cloud with seamless integrations
OPEN OPERATIONS CLOUD WITH SEAMLESS INTEGRATIONS & Telematics fleet management AI powered video telematics Proprietary APIs & Delivery management in-vehicle third-party systems Smart-Devices receive & push data DIFFERENTIATED DATA-DRIVEN Smart fleet administration SaaS PLATFORM Business intelligence
Slide 8: Untapped network effect of our platform
UNTAPPED NETWORK EFFECT OF OUR PLATFORM THE SCALE OF DATA ON OUR CLOUD IS VAST & GROWING (1)For the month of February 2022
Slide 9: Early stage of a large & long-term growth opportunity
EARLY STAGE OF A LARGE & LONG-TERM GROWTH OPPORTUNITY Mobility is core to all on-the-ground operations A massive opportunity (2) of global GDP 1,185,528 145,143 127,336 67,965 FY22 FY22 FY22 FY22 IoT DATA IS KEY TO IMPROVING OPERATIONS (1)Management’s best estimate based on market research including
Slide 10: Robust & consistently profitable business model
ROBUST & CONSISTENTLY PROFITABLE BUSINESS MODEL SaaS ARR growth ZAR M Vertically integrated business model Compound annual growth rate USD 177.1M (1) End-to-end all inclusive IoT cloud software platform 2,727 Established infrastructure 2,377 Expanding distribution network 2,018 Ability to execute &
Slide 11: Performance for Q4 & FY22
iN A KAROOOOO Performance for Q4 & FY22
Slide 12: Founded in South Africa, now headquartered in Singapore
As at February 28, 2021 Since April 21, 2021 to date Private company NASDAQ TICKER “KARO” JSE TICKER “KRO” 68.1% 100% JSE TICKER “CTK” Founded in South Africa, now headquartered in Singapore 12
Slide 13: Performance in line with management's outlook for 2022
PERFORMANCE IN LINE WITH MANAGEMENT’S OUTLOOK FOR 2022 FY22 FY22 Outlook Outlook FY21 FY22 Reported Achieved Number of subscribers (000s) 1,306 1,526 1,500 – 1,600 ✔️ Cartrack’s Subscription Revenue (Constant Currency basis)(ZAR M) 2,209 2,625 2,500 – 2,700 ✔️ Cartrack’s Adjusted EBITDA margin (1) 4
Slide 14: Consistently growing subscription revenue
CONSISTENTLY GROWING SUBSCRIPTION REVENUE Subscriber Subscription Revenue Growth on a Cartrack’s Subscription Revenue Growth constant currency basis as a % of Total Revenue FY22 1.526M FY22 ZAR 2,628M FY22 FY21 1.306M FY21 ZAR 2,209M FY21 96% Increase in Net subscriber Revenue Growth on a Commercial
Slide 15: Karooooo's strong growth at scale
KAROOOOO’s STRONG GROWTH AT SCALE (1) Revenue Adjusted EBITDA ZAR M ZAR M ▲ Strong unit economics 2,746 Robust operating margins 2,291 ▲ (2) 1,942 1,212 Consistently beaten Rule of 40 1,125 927 Strong balance sheet Strong cash position FY20 FY21 FY22 FY20 FY21 FY22 SUPPORTED BY HIGH CUSTOMER RETENTI
Slide 16: Karooooo's strong cash position
KAROOOOO’s STRONG CASH POSITION Net Cash on hand ZAR M 718 ▲ 76 FY22 FY21 FY22 FY21: 35 Days STRONG EARNINGS GENERATION DESPITE CAPITAL ALLOCATION FOR FUTURE GROWTH (1) A non-IFRS measure & is after provisioning for expected credit losses due to COVID-19 16
Slide 17: Karooooo's free cash flow
KAROOOOO’s FREE CASH FLOW After significant investment into R&D and customer acquisition Operating Activities Investing Activities: PPE Free Cash Flow(1) ZAR M ZAR M ZAR M Includes telematics devices still to be installed 938 932 553 460 478 379 Strong Revenue Growth Strong Earnings Generation ▼ ▲ ▼
Slide 18: Karooooo's track record of disciplined capital allocation
KAROOOOO’s TRACK RECORD OF DISCIPLINED CAPITAL ALLOCATION Earnings per Share Payable entirely out of Karooooo’s FY22 Retained Earnings Adjusted EBITDA(2) Free Cash Flow (2) Growth Generated FY22 FY22 ZAR 1,212M FY21 ZAR 1,125M STRONG CASH GENERATIVE BUSINESS MODEL (1) Earnings per share of ZAR15.76
Slide 19: Cartrack has a history of consistent execution
CARTRACK HAS A HISTORY OF CONSISTENT EXECUTION (1) Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M 2,566 727 1,526 715 2,209 631 1,888 1,306 1,127 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 WITH STRONG FINANCIAL DISCIPLINE (1) Cartrack’s operating profit increased 1% to ZAR731 m
Slide 20: Record net new subscriber additions of 220K
RECORD NET NEW SUBSCRIBER ADDITIONS OF 220K COVID-19 70,916 219,972 61 776 60,470 59,911 179,485 55,587 165,717 48,897 49,775 42,139 41,626 37,770 29,275 7,032 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Q1 Q2 Q3 Q4 Full Year CONSISTENT INNOVATION WITH 88,000+ COMMERCI
Slide 21: Attractive unit economics
ATTRACTIVE UNIT ECONOMICS Constantly evaluate trade-off Unit Economics vs. Accelerated Growth Lifetime Value of Low Cost of Acquiring a Strong Comparative (1) Customer Relationships Customer (2) Benefits from ▲ ▼ Economies of Scale LTV to CAC WELL POSITIONED TO MATERIALLY INCREASE INVESTMENT FOR GRO
Slide 22: Cartrack's low cost of acquiring a subscriber
CARTRACK’s LOW COST OF ACQUIRING A SUBSCRIBER Average Cost of adding a Subscriber to our cloud (1) & 2,093 ZAR FY22 2,070 Despite continued strategic 660 718 OpEx investment for long-term growth OpEx Lifetime value of a subscriber FY21 FY22 CapEx ARPU (ZAR) 154 151 1,433 1,352 CapEx Subscriber contr
Slide 23: Continued expansion despite COVID-19
CONTINUED EXPANSION DESPITE COVID-19 Year-on-Year ‘000s Subscribers FY20 FY21 FY22 change Subscribers 869 1,014 1,186 17% Subscribers 99 119 145 22% Subscribers 99 111 127 15% Subscribers 60 62 68 9% 23
Slide 24: Cartrack building for the future
CARTRACK BUILDING FOR THE FUTURE R&D Sales & Marketing G&A ZAR M ZAR M ZAR M (1) 523 477 322 238 141 100 ▲ ▲ ▲ FY21 FY22 FY21 FY22 FY21 FY22 STRATEGIC & DISCIPLINED CAPITAL ALLOCATION (1) Excluding the impact of the once-off exceptional item expensed in 2022 (ZAR15 million) 24
Slide 25: Cartrack's robust operating metrics
CARTRACK’s ROBUST OPERATING METRICS Investing for the future Long-term FY21 FY22 Targets (1) Research & Development as a % of Subscription Revenue 5% 6% 4-6% Sales & Marketing as a % of Subscription Revenue 11% 13% 17-19% (2) General & Administration as a % of Subscription Revenue 22% 20% 12-16% (3)
Slide 26: Cartrack's outlook
CARTRACK’s OUTLOOK Geared for growth and scalability with strong financial discipline and earnings FY20 FY21 FY22 FY23 Outlook Number of subscribers (000s) 1,127 1,306 1,526 1,700 – 1,900 Cartrack’s Subscription Revenue (ZAR M) 1,888 2,209 2,566 2,950 – 3,100 Cartrack’s Adjusted EBITDA margin (1) 48
Slide 27: Thank You
yon A KAROOOOO Thank You