Karooooo Ltd. · NASDAQ:KARO
Karooooo — Q1 FY2022 Earnings Presentation
18 slides from Karooooo's earnings presentation, Jul 20, 2021
Slide 1: Earnings Presentation Q1 FY2022
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: Karooooo
>: KAROOOOO NASDAQ TICKER “KARO” JSE TICKER “KRO” 100% CARTRACK Founded in South Africa, now headquartered in Singapore
Slide 4: Our view: all vehicles will be connected; our mission
>: IN our view, all vehicles will be connected & data will drive all aspects of mobility in the future OUR MISSION To build the leading mobility SaaS platform that maximizes the value of data
Slide 5: We contextualize billions of data points and drive exceptional value for customers
WE CONTEXTUALIZE BILLIONS OF DATA POINTS & DRIVE EXCEPTIONAL VALUE FOR CUSTOMERS DATA COLLECTION & REAL-TIME DATA AGGREGATION DRIVING INSTANT VALUE DATA CONTEXTUALIZATION MONETIZATION a) S8Bn+ data points monthly Business intelligence Telematics fleet management Proprietary Data in-vehicle storage &
Slide 6: A history of consistent execution
>: A HISTORY OF CONSISTENT EXECUTION Scale Subscribers 000s 1,366 1,306 1,246 W7s yya7 "4 1,089 1,039 iil a a fo Fao FID a0 Fala Fal Fal Y22 Growth Profitability Revenue Operating Profit ZAR M ZARM 626 616 182 185 seo 163 163 ies: 551 535 si 493 468 470 a @ @ wo ao @ @ o ai ae ow a eo ao a Fro FY20
Slide 7: Healthy subscription revenue growth
® HEALTHY SUBSCRIPTION REVENUE GROWTH 21% 17% 22% Subscriber Growth Revenue Growth Revenue Growth on a constant Qi FY22 1.366M Qi FY22 626M currency basis Q1 FY22 Qi FY21 1.134M Qi FY21 535M iu} iF 97% 2.SBn ZAR 181M USD” Subscription revenue ARR as of May 31, 2021 ARR as of May 31, 2021 as a % of t
Slide 8: Robust quarterly net subscriber additions
>: ROBUST QUARTERLY NET SUBSCRIBER ADDITIONS 760% Growth 70,916 60,470 59,911 48,897 49,775 41,626 37,770 29,275 7,032 FY20 FY21 FY22 FY20 FY21 FY20 FY21 FY20 FY21 Qi Q2 Q3 Q4
Slide 9: Organic customer growth
ORGANIC CUSTOMER GROWTH Small Enterprises Medium-Sized Enterprises Large Enterprises 1 - 24 vehicles 25 - 99 vehicles 100+ vehicles 72.803 73572 2,461 2399 449 “sa 61754 2,189 409 54368 4,787 341 76,000+ COMMERCIAL CUSTOMERS FY19 FY20 FY21 Qi FY19 FY20 FY21 Qi FY19 FY20 FY21 Qi FY22 FY22 FY22 Low in
Slide 10: Cash flow
CASH FLOW Operating Activities Investing Activities: PPE Free Cash Flow” ZARM ZARM ZARM 224 188 118 121 106 67 19% 17% -12% Growth Growth Growth Qi FY21 Qi FY22 QU FY21 QI FY22 QuFY21 Qi FY22 MAN. ©Free cash flow is defined as net cash generated from operating activities less purchase of property, p
Slide 11: Our low cost of acquiring a subscriber
OUR LOW COST OF ACQUIRING A SUBSCRIBER Total Unit Cost of Acquiring a Subscriber ) ZAR 2636 2005 1379 1207 1,489 Qi FY21 Ql FY22 Telematics Devices Capitalized = Sales Commission Capitalized = Sales and Marketing Opex Non-Capitalized @ Subscriber Contract Life Cycle Q1 FY21 Q1 FY22 ARPU (ZAR) 155 15
Slide 12: 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 South Africa Africa- other Southeast Asia Europe ~—~* 1,064,005 ~—* 63,081 ‘—* 124,617 ——* 114,767 Ql FY22 Ql FY22 Ql FY22 Ql FY22 Largely Underpenetrated Market Penetr
Slide 13: Continued expansion despite COVID-19
>: CONTINUED EXPANSION DESPITE COVID-19 Y-0-Y Qi Q1 Q-0-Q ‘000s Subscribers FY19 FY20 FY21 change FY21 FY22 change SOUTH AFRICA Subscribers 746 869 1,014 17% 866 1,064 23% AFRICA- OTHER Subscribers 56 60 62 3% 60 63 5% EUROPE Subscribers 83 99 111 12% 101 115 14% ASIA, MIDDLE EAST, USA Subscribers 7
Slide 14: Investing for future growth
>: INVESTING FOR FUTURE GROWTH Sales & marketing R&D G&A ZAR M ZAR M ZAR M STRATEGIC & DISCIPLINED CAPITAL ALLOCATION
Slide 15: Robust operating metrics
ROBUST OPERATING METRICS Investing for growth Q1 FY21 Q1 FY22 Subscription Revenue (ZAR M) 526 606 ARPU (ZAR) 155 151 Gross Profit Margin 73% 71% Research & Development as a % of Subscription Revenue 4% 5% Sales & Marketing as a % of Subscription Revenue 10% 15% General & Administration as a % of Su
Slide 16: Outlook
® OUTLOOK Geared for growth and scalability with strong financial discipline and earnings FY20 FY21 FY22 Outlook Number of subscribers (000s) 1,127 1,306 1,500 — 1,600 Subscription Revenue (ZAR M) 1,888 2,209 2,500 — 2,700 Adjusted EBITDA margin 48% 49% 45% -50% ARR as at May 31, 2021: ZAR 2,491 mil
Slide 17: Thank You
KAROOOO ‘Thank You
Slide 18: Tables & Reconciliations
TABLES & RECONCILIATIONS.