Slide 1: Earnings Presentation Q2 FY25
Earnings Presentation Q2 FY25
Slide 2: Today’s Presenters
Today’s Presenters Zak Calisto Goy Hoeshin Carmen Calisto Group CEO Group CFO Group Chief & Founder Strategy & Marketing Officer 22
Slide 3: Disclaimer: Forward-Looking Statements
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 4: Logistics: Leading Physical Operations Management Platform
LEADING PHYSICAL OPERATIONS MANAGEMENT PLATFORM, FOCUSED ON AFRICA, ASIA AND EUROPE 100% 74.8% Ownership Ownership Logistics Operations Management Platform Delivery-as-a-Service ZAR USD ZAR USD 3,990 M 224 M 419 Annualised B2B M 24 M Annual Recurring Revenue As at August 2024 Delivery-as-a-Service R
Slide 5: Karooooo Group Snapshot Q2 FY25
KAROOOOO GROUP SNAPSHOT Q2 FY25 Total Revenue1 27% UP ZAR 1,107M Operating Profit Margin 16% Q2 FY24: ZAR 956M 125,000+ Subscription Revenue Commercial Customers UP ZAR 986M 15% Q2 FY24: ZAR 860M 4,300+ Employees3 Adjusted Earnings Per Share2 UP ZAR 7.35 180bn+ 31% Q2 FY24: ZAR 5.61 Monthly Data Poi
Slide 6: Q2 FY25 Business and Operational Highlights
Q2 FY25 BUSINESS AND OPERATIONAL HIGHLIGHTS Completed building central Increased investment in Cartrack net subscriber office in South Africa, Sales and Marketing in additions increased 18% to a which positions us to Southeast Asia beginning in record 89,168. support higher organic August to capital
Slide 7: Q2 FY25 Financial Highlights
Q2 FY25 FINANCIAL HIGHLIGHTS Karooooo subscribers Cartrack subscription Cartrack gross margin increased 17% Y/Y revenue of ZAR983 million improved approximately to 2.14 million increased 15% Y/Y. 300bps Y/Y to 74%. Strong and unleveraged Raising FY25 outlook for Karooooo Adjusted balance sheet with
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS • Attractive FY19-FY24 subscriber growth of 15% CAGR WELL POSITIONED TO DRIVE • Proven track record of profitable growth and high margins PROFITABLE GROWTH • Efficient unit economics and go-to-market strategy as evidenced by 9x+ LTV/CAC • Customer-centric culture with 95% comme
Slide 9: Simplifies Decision Making of Physical Operations
SIMPLIFIES DECISION MAKING OF PHYSICAL OPERATIONS 9
Slide 10: Our Platform Transforms Decision Making by Unifying Data and Information
OUR PLATFORM TRANSFORMS DECISION MAKING BY UNIFYING DATA AND INFORMATION CUSTOMER BENEFITS Safety Vision SAFETY • PRODUCTIVITY • COMPLIANCE • PROFITABILITY • ABILITY TO SCALE Delivery Cost Centralised platform for simplified decision making Management In-field Specialized In-Field worker Delivery Op
Slide 11: Why 125,000+ Customers Choose Our Platform
Commercial fleet telematics REDUCED can reduce unsafe driving by 60%, translating to profit WHY 125,000+ COSTS margin increases of 30%1 CUSTOMERS Real-time fleet data means INCREASED efficient route and maintenance planning, as well PRODUCTIVITY as utilization and service CHOOSE OUR interval KPI ins
Slide 12: AI-Powered Decision-Making Saves Lives
CASE STUDY AI-POWERED DECISION-MAKING SAVES LIVES Customer in South Africa made huge strides in safety in just one month with our fully digitalized coaching platform, AI event-based footage and actionable analytics. DECISIONS RESULTS Alert In-cabin sound alert prompts the driver to -32% modify their
Slide 13: Karooooo Logistics
KAROOOOO LOGISTICS B2B DELIVERY AS A SERVICE PLATFORM Connects customers to a network of vetted 3rd party drivers and specialist couriers CONNECTING BUSINESS DEMAND FOR FOCUSED ON LAST-MILE DELIVERY LAST-MILE DELIVERY WITH Enables customers to scale their e-commerce AN ELASTIC SUPPLY OF VETTED busin
Slide 14: Growing Physical Operations Market Opportunity
GROWING PHYSICAL OPERATIONS MARKET OPPORTUNITY Automotive Telematics in GLOBAL Commercial Vehicles1 Automotive Telematics in Commercial Vehicles1 PHYSICAL OPERATIONS $33.7bn $225.6bn 2018 2026 14 1 Allied Market Research.
Slide 15: Our Growth Strategy
OUR GROWTH STRATEGY INCREASE EXPAND OUR SUBSCRIPTION SALES CUSTOMER TO EXISTING BASE CUSTOMERS EXPAND OUR EXPAND SCOPE OF OPERATIONS OPERATIONS IN NEWER PLATFORM AND GEOGRAPHIES SERVICES 15
Slide 16: Key Differentiators
KEY DIFFERENTIATORS UNIQUE GO-TO-MARKET STRATEGY EASY-TO-USE CUSTOMER AND CENTRICITY INDUSTRY AGNOSTIC PLATFORM ENTREPRENEURIAL VERTICALLY CULTURE INTEGRATED BUSINESS MODEL USER FRIENDLY PROPRIETARY END-TO-END INTERNAL OPERATIONS ENTERPRISE CLOUD MANAGEMENT GRADE SYSTEMS FEATURES WITH EXTENSIVE API
Slide 17: 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 Q2 FY24: 72% COMMITTED TO EFFICIENT AND PROFITABLE GROWTH (1) The product of our subscription re
Slide 18: Financial Performance for Q2 FY25
Financial Performance for Q2 FY25
Slide 19: 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 2,137 2,047 983 295 293 960 289287 1,972 930 1,908 900 1,833 858 252 1,758 834 248 1,717 1,679 793 232 771 224 1,600 221 222 733 1,526 1,543 707 209 1,470 198 1,409 66
Slide 20: Cartrack Delivered Record Net Subscriber Additions
CARTRACK DELIVERED RECORD NET SUBSCRIBER ADDITIONS ▲ 89,168 78,593 75,910 75,256 75,484 61,776 63,340 60,470 57,241 55,587 40,375 42,139 38,471 16,800 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25 Q1 Q2 Q3 Q4 ACCELERATED CAPITAL ALLOCATION TO SALES AND MARKETING STA
Slide 21: Revenue and Subscriber Mix
REVENUE AND SUBSCRIBER MIX1 Karooooo Revenue Mix2 Cartrack Subscriber Mix 4% 9% 8% 12% 91% 76% Cartrack Karooooo Logistics South Africa Asia & Middle East Europe Africa - Other WELL POSITIONED FOR GEOGRAPHICAL EXPANSION 1 As at Q2 FY25. 2 Carzuka segment revenues consolidated into Cartrack and Karoo
Slide 22: Karooooo Continues to Deliver Strong Earnings Per Share Growth
KAROOOOO CONTINUES TO DELIVER STRONG EARNINGS PER SHARE GROWTH (2) (1) Q1 Q2 Q3 Q4 Q1 Q2 ZAR FY22 FY23 FY24 FY24 FY24 FY24 FY24 FY25 FY25 Q2 FY25 7.35 16.59 20.61 24.77 5.40 5.89 6.96 6.52 6.94 7.17 Q2 FY24 5.61 (0.42) (1.42) (1.40) (0.39) (0.42) (0.75) 0.16 0 0 (0.07) 0.10 0.48 0.08 0.14 0.13 0.13
Slide 23: Karooooo Has a Decade-Plus Track Record of High Cash Conversion
KAROOOOO HAS A DECADE-PLUS TRACK RECORD OF HIGH CASH CONVERSION ZAR M ZAR M Earnings Total Earnings and Free Cash Flow Free Cash Flow 225 ZAR316 million 215 216 was invested in 199 the development 178 of the South 171 (1) 162158 162 161 166 African central 156 157 155 147 150 office 1,900 113 106 1,
Slide 24: 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 plus cash in bank fixed deposits ZAR M 1,137 1,001 966 950 Strong unit economics 922 854 (1) 819 799 718 782 Robust operating margins (2) (3) 664 651 674 554 Unleveraged balance sheet Q2 FY25 Strong cash
Slide 25: Raising FY25 Outlook for Subscribers and Cartrack Subscription Revenue
RAISING FY25 OUTLOOK FOR SUBSCRIBERS AND CARTRACK SUBSCRIPTION REVENUE AT MIDPOINT YTD Previous Revised FY22 FY23 FY24 FY25 FY25 Outlook FY25 Outlook Number of Subscribers (000s) 1,526 1,717 1,972 2,137 2,200 – 2,400 2,300 – 2,400 Cartrack’s Subscription Revenue (ZAR M) 2,566 3,004 3,523 1,943 3,900
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