Slide 1: Interim Results Presentation
Quartix Real-Time Vehicle Tracking Quartix Holdings ple 26 July 2017 Interim Results Presentation y
Slide 2: Highlights
Quartix • Strong development of our fleet markets • Good growth in subscription and customer bases • Group gross margin maintained despite large reduction in insurance installations • Good progress in transition away from low-margin insurance volume • Reinstatement of some insurance volume at higher
Slide 3: Revenue, costs and operating profit
Quartix £m 11.6 11.5 9.2 Recruitment of senior management to focus on the fleet business: COO and heads of UK and France Distribution commissions increased with growth (cost of sales) and marketing £m 3.3 expenditure also grew 3.2 2.7 45% more new fleet units were installed than in H1 2016. These we
Slide 4: Key performance indicators
Quartix June 2017 June 2016 % change Fleet installations 14,324 9,898 +44.7 Fleet subscription base (units) 96,791 79,214 +22.4 Fleet customer base 10,076 8,212 +22.7 Fleet attrition (annualised %) 10.1 11.3 Fleet invoiced recurring revenues (£m) 7.57 6.54 +15.7 Fleet revenues (£m) 8.29 7.20 +15.2 I
Slide 5: Fleet subscription revenue by customer cohort
Quartix The chart shows invoiced fleet subscription revenue segmented by year of customer acquisition
Slide 6: Financial results summary
Quartix Revenues 2017 (6m) 2016 (6m) % change Fleet 8,291 7,196 15.2 Insurance 3,219 4,378 -26.5 Total revenue 11,510 11,574 -0.6 Gross profit 7,070 7,091 -0.3 Gross margin 61% 61% Operating profit 3,210 3,322 -3.4 Operating margin 28% 29% Net profit 2,806 2,782 0.9 Earnings per share (p) 5.92 5.89
Slide 7: Cash flow and net cash
Quartix £m Exercise of options 2.6 0.2 4.3 £2.6m Free Dividends (2016: £3.1m) cash flow Paid (including supplementary dividend) 6.3 2.4p per share (2016: 2.2p) 4.8 Net cash at end Net cash at end of 2016 of June 2017
Slide 8: Supplementary dividend policy
Quartix £’000 Year end cash balance 7,000 Year end cash balances in excess of £2m after the final Year end final dividend 2,500 dividend will be paid as a supplementary dividend. 4,500 Supplementary dividend 2,500 (amount over £2m) In this example a supplementary dividend of around 5.3p would be pai
Slide 9: Fleet subscription base growth
Quartix Growth in the fleet subscription base is core to our business model Over the past 5 years we have maintained a CAGR of 22% 22% also recorded over past 12 months
Slide 10: UK fleet
Quartix New installations increased by 44% to 10,450 Strong growth in new installations Good performance from each sales channel Continuing development of sales teams and processes
Slide 11: France fleet
Quartix New installations increased by 30% to 1,760 Good progress in subscription base Significant progress in indirect sales channels Continuing development of sales team Further work on sales channels underway
Slide 12: USA fleet
Quartix New installations increased by 61% to 2,094 Excellent growth in subscription base Investment in driver logging capabilities for the USA Reseller and price comparison channels being integrated with UK in 2nd half
Slide 13: Insurance telematics
Quartix The value of our service and data quality was clearly demonstrated in the first half Strategic shift from low-margin business resulted in expected reduction in volume Alternative supplier failed to deliver acceptable standards of quality Some of lost volume to be reinstated in H2 Remains les
Slide 14: Young-driver product for brokers
Quartix A standard young-driver product for brokers, using our fleet platform An excellent showcase for our service and technology Two brokers now live, several in discussion Delivering excellent loss ratios so far
Slide 15: Speed data assessment capability
Quartix Each data point is assessed against the speed distribution for that stretch of road A unique Quartix capability which is saving lives and reducing loss ratios
Slide 16: Customer acquisition and marketing
Quartix The value of our service and data quality was clearly demonstrated in the first half Cost of customer acquisition key to future growth Continued investment in CRM and marketing automation planned New website for USA in H2 Continued focus on channel effectiveness
Slide 17: Summary and outlook
Quartix June 2017 (6 months) Growth in subscriptions underpins fleet revenue Good progress in all three fleet markets Continuing investment in customer acquisition H2 has started well, with increase in insurance volume at higher average pricing On track to meet profit expectations for 2017
Slide 18: Appendix: An Introduction to Quartix
Quartix Real-Time Vehicle Tracking Quartix Holdings ple . Appendix: Interim Results Presentation an Introduction to Quartix,
Slide 19: How fleet customers and insurers use Quartix
Quartix 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 • Reduce loss ratios Assessing driving style and ri
Slide 20: Architecture
Architecture Quartix 20
Slide 21: Office locations
Quartix Chicago Newtown Cambridge Leatherhead Bishop’s Waltham
Slide 22: Interim Results Presentation
Quartix Real-Time Vehicle Tracking Quartix Holdings ple 26 July 2017 Interim Results Presentation y