Slide 1: Earnings Presentation Q1 FY23
Earnings Presentation Q1 FY23 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: We think beyond connected vehicles & equipment
We think beyond connected vehicles & equipment 4
Slide 5: To establish the leading on-the-ground operations cloud
To establish the leading on-the-ground operations cloud 5
Slide 6: We solve problems by digitally transforming on-the-ground operations
WE SOLVE PROBLEMS BY DIGITALLY TRANSFORMING ON-THE-GROUND OPERATIONS Fleet & Logistics & Field Worker Video ESG Risk Warehouse Secure Vehicle Competitively Equipment Delivery Management Based Safety Compliance Mitigation & Other Buying & Priced Management Operations & Reporting Systems Selling Insur
Slide 7: Investment Highlights
INVESTMENT HIGHLIGHTS Early stage of a large & growing Multiple levers for expansion Decade-plus track record of profit & addressable market • Transformative products enhancing customer growth at scale acquisition • Strong customer acquisition consistently growing our • Mobility is core to all opera
Slide 8: Early stage of a large & long-term growth opportunity
EARLY STAGE OF A LARGE & LONG-TERM GROWTH OPPORTUNITY Mobility is core to all on-the-ground operations A massive opportunity (2) of global GDP 1,184,000 156,322 132,544 69,906 FY23 Q1 FY23 Q1 FY23 Q1 FY23 Q1 IoT DATA IS KEY TO IMPROVING OPERATIONS (1)Management’s best estimate based on market resear
Slide 9: Untapped network effect of our platform
UNTAPPED NETWORK EFFECT OF OUR PLATFORM THE SCALE OF DATA ON OUR CLOUD IS VAST & GROWING (1)For the month of May 2022 9
Slide 10: Robust & consistently profitable business model
ROBUST & CONSISTENTLY PROFITABLE BUSINESS MODEL SaaS ARR growth ZAR M End-to-end all inclusive IoT cloud software platform Compound annual growth rate Relevant, up-to-date, continuous improvements, seamless integrations, easy-to-use, customer facing technology USD 182.9M (1) Expanding distribution n
Slide 11: Performance for Q1 FY23
yon A KAROOOOO Performance for QI FY23
Slide 12: Record earnings & cash generation from operating activities
KAROOOOO’s RECORD EARNINGS & CASH GENERATION FROM OPERATING ACTIVITIES Earnings per Share (1) Growth As Declared on April 27, 2022 Q1 FY23 ZAR 4.96 Payable on September 12, 2022, entirely out of Q1 FY22 ZAR 3.49 Karooooo’s Profits Profit for the period (1) Cash Generated from Growth Operating Activi
Slide 13: Karooooo's strong growth at scale
KAROOOOO’s STRONG GROWTH AT SCALE (1) Revenue Operating Profit Adjusted EBITDA ZAR M ZAR M ZAR M ▲ ▲ ▲ Strong unit economics 217 801 354 Robust operating margins 182 626 168 275 (2) 266 Consistently beaten Rule of 40 535 Strong balance sheet Strong cash position Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY
Slide 14: Karooooo's robust cash position
KAROOOOO’s ROBUST CASH POSITION Net Cash on hand ZAR M 854 718 554 Q1 FY23 Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22: 33 days | Q4 FY22: 34 days BOLSTERED BY STRONG FREE CASHFLOW GENERATION NOTWITHSTANDING INVESTMENT FOR FUTURE GROWTH (1) A non-IFRS measure & is after provisioning for expected credit losses d
Slide 15: Safety in Karooooo's cash flow generation
SAFETY IN KAROOOOO’s CASH FLOW GENERATION Operating Activities Investing Activities: PPE Free Cash Flow(1) ZAR M ZAR M ZAR M Includes telematics devices still to be installed 319 162 157 155 273 118 Strong Revenue Generation Strong Earnings Growth ▲ ▲ ▲ Strong Cash Flow Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY
Slide 16: Increasing Karooooo's presence across industries
INCREASING KAROOOOO’s PRESENCE ACROSS INDUSTRIES SERVICING SMALL TO LARGE ENTEPRISE CUSTOMERS 16
Slide 17: Performance by business segment
PERFORMANCE BY BUSINESS SEGMENT KAROOOOO NASDAQ “KARO” 100% 100% 70.1% JSE “KRO” KAROOOOO CARZUKA LOGISTICS Q1 FY23 Composition of Total Revenue 90% 6% 4% Revenue (ZAR M) 801 724 50 28 Revenue Growth (%) 28% 16% >100% n/a1 Operating Profit/(Loss) (ZAR M) 217 221 (4) (<1) Operating Profit Growth (%)
Slide 18: Consistently growing Cartrack's subscription revenue
CONSISTENTLY GROWING CARTRACK’s SUBSCRIPTION REVENUE Subscription Revenue Revenue Cartrack’s Subscription Growth Growth Revenue as a % of Total Revenue Q1 FY23 Q1 FY23 ZAR 707M Q1 FY23 ZAR 724M Q1 FY22 ZAR 606 M Q1 FY22 ZAR 624 M Q1 FY22 97% CARTRACK’s OUTLOOK FOR 2023 REMAINS UNCHANGED 18
Slide 19: Extending Cartrack's decade-plus track record of execution
EXTENDING CARTRACK’s DECADE-PLUS TRACK RECORD OF EXECUTION Subscribers Subscription Revenue Operating Profit 000s ZAR M ZAR M 707 221 1,543 1,366 182 171 1,134 606 526 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 Q1 FY21 Q1 FY22 Q1 FY23 STRONG FINANCIAL DISCIPLINE & ABILITY TO SCALE IN VARYING MA
Slide 20: Cartrack's subscriber additions
CARTRACK’s SUBSCRIBER ADDITIONS & 70,916 61,776 60,470 59,911 55,587 42,139 41,626 16,800 7,032 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Q1 Q2 Q3 Q4 NET SUBCRIBER ADDITIONS NORMALIZED IN JUNE 2022, > 18,000 20
Slide 21: Cartrack's continued expansion
CARTRACK’s CONTINUED EXPANSION Q-on-Q ‘000s Subscribers Q1 FY21 Q1 FY22 Q1 FY23 Change Subscribers 866 1,064 1,184 11% Subscribers 106 125 156 25% Subscribers 101 115 133 15% Subscribers 60 63 70 11% TRACTION IN SOUTHEAST ASIA ENCOURAGING 21
Slide 22: Cartrack's attractive unit economics
CARTRACK’s ATTRACTIVE UNIT ECONOMICS Lifetime Value of Low Cost of Acquiring a Strong Comparative (1) Customer Relationships Customer (2) Benefits from ▲ Economies of Scale LTV to CAC Q1 FY22: 72% Q1 FY22: 27% WELL POSITIONED TO MATERIALLY INCREASE INVESTMENT FOR GROWTH (1) The product of our subscr
Slide 23: Cartrack's robust operating metrics
CARTRACK’s ROBUST OPERATING METRICS Investing for the future Long-term Q1 FY21 Q1 FY22 Q1 FY23 Targets (1) Research & Development as a % of Subscription Revenue 4% 5% 6% 4-6% Sales & Marketing as a % of Subscription Revenue 10% 14% 13% 17-19% General & Administration as a % of Subscription Revenue 2
Slide 24: Cartrack's outlook for 2023 remains unchanged
CARTRACK’s OUTLOOK FOR 2023 REMAINS UNCHANGED FY21 FY22 FY23 Outlook Number of subscribers (000s) 1,306 1,526 1,700 – 1,900 Cartrack’s Subscription Revenue (ZAR M) 2,209 2,566 2,950 – 3,100 Cartrack’s Adjusted EBITDA margin (1) 49% 47% 45% – 50% SOLID START TO OUR 2023 FINANCIAL YEAR NET SUBCRIBER A
Slide 25: Carzuka & Karooooo Logistics gaining promising traction
CARZUKA & KAROOOOO LOGISTICS GAINING PROMISING TRACTION Carzuka Karooooo Logistics Revenue Revenue (1) ZAR M ZAR M 28 50 24 18 32 24 9 3 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q3 FY22 Q4 FY22 Q1 FY23 (1) Karooooo acquired 70.1% of Picup in September 2021. Picup was subsequently re-branded and re-na
Slide 26: Questions
Questions 26