Quartix Technologies Plc · LSE:QTX
Quartix Technologies — H1 2020 Earnings Presentation
22 slides from Quartix Technologies's earnings presentation, Jul 28, 2020
Slide 1: Real-Time Vehicle Tracking Interim Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 28 July 2020 Interim Results Presentation
Slide 2: Highlights
Highlights NEW SUBSCRIPTIONS 1ST 6 MONTHS Good progress in 20,000 subscription base 10,000 • Strong start to year: new installations 30% ahead of last year at end of February 0 • Severe contraction in all markets from mid-March to April 2018 2019 2020 resulted in new subscriptions in H1 reducing by
Slide 3: KPIs
KPIs H1 2020 H1 2019 Change Fleet subscriptions (new units) 19,454 22,505 -14% Fleet subscription base (units) 160,648 138,081 +16% Fleet customer base 17,652 14,851 +19% Fleet attrition (annualised %) 12.2 10.5 Fleet invoiced recurring revenues (£’m) 10.2 9.4 +9% Fleet revenue (£’m) 10.8 10.1 +7% A
Slide 4: HY Segmental Analysis
HY Segmental Analysis Customer Fleet Telematics £’m Total Fleet Insurance Total Business Acquisition Services Recurring revenue - 10.2 10.2 - 10.2 Other sales 0.1 0.5 0.6 2.3 2.9 Total revenue 0.1 10.7 10.8 2.3 13.1 Sales & marketing (2.6) (0.4) (3.0) - (3.0) Equipment, installations, carriage (0.7)
Slide 5: Financial Overview
Financial Overview H1 2020 H1 2019(restated) Change Fleet revenue 10,841 10,091 7% Insurance revenue 2,257 2,461 (8%) Total revenue 13,098 12,552 4% Gross profit 9,590 8,103 18% Gross margin 73% 65% Operating profit 4,318 3,349 29% Operating margin 33% 27% Adjusted EBITDA 4,606 3,674 25% Earnings pe
Slide 6: Fleet UK
Fleet UK 120000 8 + 2% £7.8m +11% 109,629 £’m New installations 100000 fell by 25% to 9,994 6 80000 60000 4 40000 2 UK was hardest hit of all of our territories, 20000 with main shortfall in larger orders and distribution 0 0 Good prospects for H2 2019 2020 2019 2020 Telephone sales efficiency impro
Slide 7: Fleet France
Fleet France 2.5 30000 €’m +21% +25% 28,015 €2.1m New installations 25000 decreased by 11% 2.0 to 3,957 20000 1.5 15000 1.0 10000 Excellent progress in subscription base and 0.5 5000 revenue. New installations grew strongly in H1, and 0.0 0 have since resumed growth in June H1 2019 H1 2020 2019 2020
Slide 8: Fleet USA
Fleet USA 1.6 $’m 20,408 +22% $1.5m +27% 20000 1.4 New installations decreased by 2% to 1.2 4,274 15000 1.0 0.8 10000 0.6 0.4 5000 Excellent progress in the subscription base and revenue 0.2 Installations broadly equivalent to H1 2019 0.0 0 but 27% ahead of H2 2019 H1 2019 H1 2020 2019 2020 New dist
Slide 9: New Territories
New Territories 3000 2,596 2500 2000 1500 +439% 1000 New subscriptions in Italy, Spain, Poland and Germany quadrupled in H1 2020 to 500 1,229 units (2019: 315) Subscription base now over 2,500 units 0 Spain and Italy showing strong potential 2019 2020 and more investment is planned Subscriptions 9
Slide 10: UK Insurance Telematics
UK Insurance Telematics 20000 3.0 - 42% £m - 8% 2.5 £2.3m 15000 2.0 9,915 10000 1.5 1.0 5000 Continued shift from low-margin business 0.5 resulted in expected reduction in volume We continue to focus on opportunities where 0 0.0 the quality of our service and data delivery H1 2019 H1 2020 H1 2019 H1
Slide 11: Subscription base growth
Subscription base growth 160,000 FLEET SUBSCRIPTION BASE 160,648 (at year-end except 2020) 140,000 7% growth in subscription base in H1 120,000 Good progress in the UK, US, France and new European territories 100,000 Good prospects for new subscription growth in H2 80,000 On-track to meet financial
Slide 12: Appendix: an Introduction to Quartix
Real-Time Vehicle Tracking Quartix Holdings plc Appendix: Interim Results Presentation an Introduction to Quartix12
Slide 13: Our Proposition
Our Proposition Increased productivity and reduced risk 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 • R
Slide 14: Background information
Background information >500,000 systems installed since 2001 A UK LEADER 144,277 vehicles currently tracked in the UK: • 34,648 across 8 insurance companies • 109,629 across 10,216 UK fleet clients 6,813 fleet clients in France and USA 623 clients in Poland, Spain, Germany and Italy 48,423 vehicles
Slide 15: Company values
Company values Long-term relationships MISSION “We provide operational information to maximise productivity and reduce risk for organisations with mobile workforces. Our customers improve their business performance with information delivered quickly and reliably through our web and mobile-based appl
Slide 16: Strategy
Strategy 5 key elements • Market development: UK, USA, France and the rest of Europe • Cost per unit leadership: doing more with what we have, right across the business • Continuous enhancement to our core software and telematics products: focusing on the needs of SME customers in the service sector
Slide 17: Architecture
Architecture GPS GPRS/ 3G 17
Slide 18: Real-time tracking
Real-time tracking ROUTE MAPS LIVE TRACKING Available online with timing, speed and speed distribution information With google maps, streetview and satellite imaging. Also available in mobile apps for iOS TIMESHEETS and Android Available online or delivered by email in HTML or Excel format 18
Slide 19: User-install options
User-install options User-install products are available in each of our markets: UK, Ireland, France, USA, Poland, Spain and Italy Approx. 60% of fleet shipments in H1 2020 Next generation 4G tracking system received full approval level in USA 19
Slide 20: Recurring Revenue
Recurring Revenue 22 INVOICED SUBSCRIPTION FIRST 6 £’m REVENUE BY YEAR MONTHS 20 2019 18 16 2018 14 The chart shows invoiced fleet subscription revenue segmented 2017 12 by year of customer acquisition 2016 10 2020 2019 2015 8 2014 6 2013 2012 4 2011 2010 2 2009 2002 to 2008 0 2008 2009 2010 2011 20
Slide 21: Financial Results
Financial Results 3.8 3.8 2.5 2.3 Additional £0.5m 10.8 Investment in Fleet 10.1 Revenue by 9.1 Sector £’m 8.3 NEW INSTALLATIONS Fleet More than 19,000 new subscriptions, despite impact of Insurance COVID-19. Costs written off during the period. H1 2017 H1 2018 H1 2019 H1 2020 SALES RESOURCE Signifi
Slide 22: Real-Time Vehicle Tracking Interim Results Presentation
Real-Time Vehicle Tracking Quartix Holdings plc 28 July 2020 Interim Results Presentation