Karooooo Ltd. · NASDAQ:KARO
Karooooo — Q4 FY24 Earnings Presentation
27 slides from Karooooo's earnings presentation, May 16, 2024
Slide 1: Earnings Presentation Q4 FY24 and FY24
Earnings Presentation Q4 FY24 and 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) includes “forward-looking statements.” Forward-looking statements are based on our beliefs and assumptions and on information currently availabl
Slide 3: Carzuka, Karooooo, Karooooo Logistics
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: Karooooo Comfortably Meets 2024 Outlook
KAROOOOO COMFORTABLY MEETS 2024 OUTLOOK FY24 FY24 Outlook Number of Subscribers (000s) 1,972 1,900 – 2,100 Cartrack’s Subscription Revenue 3,523 3,400 – 3,600 (ZAR M) Cartrack’s Operating Profit 30% 28% – 31% Margin 5
Slide 6: Our Hard to Replicate Culture Remains a Game Changer
OUR HARD TO REPLICATE CULTURE REMAINS A GAME CHANGER CUSTOMER CENTRICITY SUCCESFULLY SCALE IN DIFFERENT MARKETS AND INNOVATION & CREATIVITY VARYING MACROECONOMIC CONDITIONS OWNERSHIP & ENTREPRENEURSHIP AGILITY & ADAPTABLE CONTINUOUSLY INNOVATE & EVOLVE PLATFORM MERITOCRACY RESOURCEFUL, RESILIENT PRO
Slide 7: Investment in AI Continues to Save Lives
INVESTMENT IN AI CONTINUES TO SAVE LIVES Leading mine in South Africa makes huge strides in safety in just one month with our fully digitalized coaching platform, AI event-based footage and actionable analytics. -32% -35% FATIGUED DRIVING SEATBELT NOT ON -13% -40% MOBILE PHONE USAGE CAMERA OBSTRUCTI
Slide 8: Over 121,000 Customers Power Their Operations
OVER 121,000 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: Positioned for Growth
POSITIONED FOR GROWTH Added new members to Continue building out Continued investment in leadership team in SEA, all infrastructure throughout SEA, internal systems to focused on execution and successfully increased maintain high service growth. presence in new provinces. delivery. New head office b
Slide 10: Financial performance for Q4 FY24 and FY24
Financial performance for Q4 FY24 and FY24 10
Slide 11: Karooooo's Record Subscription Revenue & Earnings
KAROOOOO’S RECORD SUBSCRIPTION REVENUE & EARNINGS Q4 FY24 FY24 Subscription Q4 FY24 ZAR 935M FY24 ZAR 3,536M Revenue Q4 FY23 ZAR 794M FY23 ZAR 3,010M Operating Q4 FY24 ZAR 296M FY24 ZAR 1,043M Profit Q4 FY23 ZAR 237M FY23 ZAR 882M Earnings Per Q4 FY24 ZAR 6.81 FY24 ZAR 23.85 Share Q4 FY23 ZAR 4.70 F
Slide 12: High Cash Conversion Coupled with Focused Capital Allocation
KAROOOOO’S HIGH CASH CONVERSION COUPLED WITH FOCUSED CAPITAL ALLOCATION ZAR M ZAR M Earnings (1) Total Earnings and Free Cash Flow Free Cash Flow ZAR263 million 215 was invested in 199 the development 178 of the South 171 162 158 162 161 African central 156 157 155 147 150 office 1,459 113 1,170 106
Slide 13: Karooooo Accelerates Earnings Per Share
KAROOOOO ACCELERATES EARNINGS PER SHARE EPS Growth EPS Reconciliation Q4 FY24 6.81 ZAR Q4 FY23 4.70 6.81 Q1 Q2 Q3 Q4 6.34 FY23 FY24 FY24 FY24 FY24 FY24 5.61 4.96 4.93 5.09 4.72 4.70 4.70 3.90 3.85 20.61 24.77 5.40 5.89 6.96 6.52 3.61 (1.42) (1.40) (0.39) (0.42) (0.75) 0.16 0.10 0.48 0.08 0.14 0.13 0
Slide 14: Robust Business Model Backed by Strong and Clean Balance Sheet
KAROOOOO HAS A ROBUST BUSINESS MODEL BACKED BY A STRONG AND CLEAN BALANCE SHEET Net cash on hand plus cash in bank fixed deposits ZAR M 1,137 1,001 966 Strong unit economics 922 854 (1) 819 799 718 782 Robust operating margins (2) 664 651 554 Unleveraged balance sheet Q4 FY24 Strong cash conversion
Slide 15: 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 1,972 930 295 1,908 289 900 1,833 858 1,758 834 1,717 252 1,679 793 248 771 232 1,600 224 1,543 733 221 222 1,526 707 1,470 209 1,409 663 670 198 1,366 628 182 185 181
Slide 16: Cartrack's Consistent Track Record of Strong CAGR
CARTRACK’S CONSISTENT TRACK RECORD OF STRONG CAGR CAGR 1 5 10 FY14 FY19 FY23 FY24 Year Years Years 348 430 960 798 1 717 077 1 971 532 15% 15% 19% 467 1,521 3,004 3,523 17% 18% 22% 503 1,208 2,202 2,589 18% 17% 18% 254 500 915 1,069 17% 16% 15% 16
Slide 17: Cartrack Continues Strong SaaS Revenue Growth
CARTRACK CONTINUES WITH DECADE-PLUS TRACK RECORD OF STRONG SaaS REVENUE GROWTH Q4 FY24 FY24 Revenue Q4 FY24 ZAR 958M FY24 ZAR 3,614M Q4 FY23 ZAR 796M FY23 ZAR 3,077M Subscription Q4 FY24 ZAR 930M FY24 ZAR 3,523M Revenue Q4 FY23 ZAR 793M FY23 ZAR 3,004M 97% OF CARTRACK’S REVENUE IS SUBSCRIPTION REVEN
Slide 18: Cartrack Extends Track Record of EPS Growth at Scale
CARTRACK EXTENDS DECADE-PLUS TRACK RECORD OF EPS GROWTH AT SCALE 6.96 6.52 ZAR 5.89 5.40 5.18 5.20 5.12 5.11 (1) 4.85 (1) 4.03 3.96 (1) (1) 3.73 Q4 FY24 6.52 Q4 FY23 5.12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 EARNINGS CONTINUE TO BENEFIT FROM
Slide 19: Cartrack Demonstrates Ability to Maintain High Margins
CARTRACK DEMONSTRATES ITS ABILITY TO MAINTAIN HIGH MARGINS AND WIN Gross Operating Adjusted Gross Profit Operating Profit Adjusted EBITDA Profit Profit EBITDA(1) Margin Margin Margin(1) Q4 FY24 ZAR 686M Q4 FY24 ZAR 289M Q4 FY24 ZAR 454M Q4 FY24 72% Q4 FY24 30% Q4 FY24 47% Q4 FY23 ZAR 568M Q4 FY23 ZA
Slide 20: Cartrack's Leading Unit Economics
CARTRACK’S LEADING UNIT ECONOMICS Lifetime Value of Low Cost of Acquiring a Strong Benefits from (1) Customer Relationships Customer (2) Economies of Scale ▲ LTV to CAC Commercial Customer Retention Rate FY23: 73% WELL POSITIONED TO CONTINUE SCALING (1) The product of our subscription revenue gross
Slide 21: Cartrack's Strong Track Record of Subscriber Unit Economics
CARTRACK’S STRONG TRACK RECORD OF SUBSCRIBER UNIT ECONOMICS CONTINUES Average Cost of adding a Subscriber to our cloud (1) & ZAR 2,363 2,264 2,231 2,281 Q1 Q2 Q3 Q4 2,160 2,093 2,070 FY21 FY22 FY23 FY24 FY24 FY24 FY24 1,002 OpEx 880 950 ARPU (ZAR) 154 151 155 160 159 160 160 660 921 864 718 Subscrib
Slide 22: Cartrack Continues to Grow Subscriber Base & ARR
CARTRACK CONTINUES TO GROW SUBSCRIBER BASE & ARR WITH SOLID TRACTION IN SOUTHEAST ASIA ARR (1) ZAR M ▲ Y-on-Y 3,749 ‘000s Subscribers FY22 FY23 FY24 Change 3,228 1,186 1,315 1,493 14% 2,722 145 185 230 24% 127 144 167 16% 68 73 82 12% 1,526 1,717 1,972 15% As at Feb 2022 As at Feb 2023 As at Feb 202
Slide 23: Cartrack's Consistent Operating Metrics
CARTRACK’S CONSISTENT OPERATING METRICS FY21 FY22 FY23 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% 13% General & Administration as a % of Subscription Reve
Slide 24: Karooooo Logistics Continues to Gain Adoption
KAROOOOO LOGISTICS CONTINUES TO GAIN ADOPTION BY OUR E-COMMERCE CUSTOMERS Karooooo Logistics (1) Karooooo Logistics (1) Revenue Operating Profit ZAR M 93 ZAR M 91 8 Q4 FY24 93 72 7 7 Q4 FY24 7 Q4 FY23 56 Q4 FY23 2 62 56 5 54 41 2 2 28 1 24 18 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 25: Karooooo Comfortably Meets 2024 Outlook
KAROOOOO COMFORTABLY MEETS 2024 OUTLOOK FY22 FY23 FY24 FY24 Outlook Number of Subscribers (000s) 1,526 1,717 1,972 1,900 – 2,100 Cartrack’s Subscription Revenue (ZAR M) 2,566 3,004 3,523 3,400 – 3,600 Cartrack’s Operating Profit Margin 27% 30% 30% 28% – 31% 25
Slide 26: Karooooo's Outlook for 2025
KAROOOOO’S OUTLOOK FOR 2025 FY22 FY23 FY24 FY25 Outlook Number of Subscribers (000s) 1,526 1,717 1,972 2,200 – 2,400 Cartrack’s Subscription Revenue (ZAR M) 2,566 3,004 3,523 3,900 – 4,150 Cartrack’s Operating Profit Margin 27% 30% 30% 27% – 31% Karooooo’s Earnings Per Share (ZAR) 15.24 19.29 23.85
Slide 27: Questions
YN A KAROOOOO Questions