Slide 1: 2022 Results - Business Presentation February 2023
Quartix Technologies plc 2022 Results - Business Presentation February 2023
Slide 2: Richard Lilwall - CEO, Emily Rees - CFO
Quartix Richard Lilwall - CEO Emily Rees - CFO 20+ years in Tracking and Telematics Operational & Commercial Finance Specialisation Head of HR
Slide 3: Quartix company overview and history
EVolve & Q Check (‘23) product launches 240 Quartix is an AIM Listed, cash Richard Lilwall joins as CEO 220 generative, debt free business with 92% recurring revenues and high 200 Launched in Italy and Germany customer satisfaction rates. We Investors in Customer Gold 180 offer a value-based proposi
Slide 4: Poor adherence to the work plan and less effective job allocation
Poor adherence to the Road miles = carbon work plan and less With no oversight fraud emissions and climate effective job allocation is more likely - fuel impact theft, cargo theft, private usage Once mobile workers Companies have a duty leave HQ there is no of care for lone and visibility mobile wor
Slide 5: Cloud based platform, business insights, resolve high-risk behaviours
Cloud based platform Business insights Resolve high-risk behaviours 100% visibility Real time resource allocation and planning Enhanced green credentials 5
Slide 6: Fuel reduction and mobile workforce productivity
Fuel reduction More vehicle utilisation Overall mobile workforce Fewer miles driven productivity Reduced employee Reduction in idle time overtime 6 Source – Frost and Sullivan 2015
Slide 7: Quartix Today
Emily Rees - CFO Quartix Today February 2023
Slide 8: Growth of Reported ARR
GROWTH OF REPORTED ARR Return on Investment seen in ARR Growth New installations growth has accelerated following the investment made in 2021 £27.3M ARR saw double digit growth £23.9m over 2022, accelerating further in 2023 onwards £22.2m following further investments £20.5m made in 2022. £18.8m £16
Slide 9: Key performance indicators 2022 vs 2021
2022 2021 CHANGE Annualised Recurring Revenue (ARR) (£’m) 27.3 24.6 11% 1 Fleet subscriptions (new units) 60,809 50,765 20% Fleet gross attrition 12.8 11.6 Fleet subscription base (units) 235,510 202,734 16% Fleet customer base 25,342 22,668 12% Price erosion (%) 2 4.7 6.2 1: Annualised data service
Slide 10: Financial results summary
2022 2021 Change [Restated] Total revenue 27,517 25,513 8% Gross profit 19,702 18,753 6% Gross margin 71.6 % 73.5 % Operating profit 5,553 5,425 2% Operating margin 20.2% 21.3 % Adjusted EBITDA 6,051 5,840 4% Earnings per share (p) 10.42 10.32 1% Cash generated from operations 4,170 3,963 5% % Opera
Slide 11: Change in cost recognition policy
• Prior policy immediately expensed hardware, installation and carriage costs. • From 2022, recognition of these costs will be over initial expected contract term of two years • The capitalisation and subsequent amortisation of the incremental costs will be more aligned to the core principles in IFR
Slide 12: Invoiced subscription revenue by year of customer acquisition
28 INVOICED SUBSCRIPTION REVENUE BY 26 YEAR OF CUSTOMER ACQUISITION 2022 24 (£m) 22 2021 20 18 2020 16 2019 14 2018 12 10 2017 8 2016 2015 6 2014 2013 4 2012 2011 2 2002-2010 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 12
Slide 13: Thousands Thousands Thousands
140 + 9% + 30% 140 + 10% 140 + 63% 137k 140 Thousands Thousands Thousands Thousands 125k 120 120 120 120 100 100 100 100 80 80 80 80 60 60 60 60 53k 40k 40 40 40 40 28k 31k 20 20 20 20 16k 10k 0 0 0 0 2021 2022 2021 2022 2021 2022 2021 2022 13
Slide 14: Price of new units based on installations in month
PRICE NEW UNITS – BASED ON INSTALLATIONS IN MONTH 2015 2023 January 2019 14
Slide 15: Revenue
REVENUE Revenue growth accelerates as expected from 2022 onwards 7.9% total revenue growth in 2022. Deferred revenue insurance and the associated profit benefit is removed from 2023. Growth in revenue will lead to improvement in profit and cash flows in the short to medium term. 2017 2018 2019 2020
Slide 16: Energy and Carbon Reporting
Energy and Carbon Reporting 2022 2021 Variance Total Energy Consumption Scope 1 and 2 (kWh) 1 184,071 150,131 23% Greenhouse gas (GHG) emissions (tonnes CO2e) 2 Natural Gas - 1 (100)% Scope 1: Combustion of fuel and operation of facilities Direct Transport 4 3 33% Total Scope 1 4 4 0% Scope 2: Elect
Slide 17: 2022 Product Launches
Quartix Real-Time Vehicle Tracking 2022 Product Launches
Slide 18: EVolve: ICE to EV made easier
EVolve Quartix ICE to EV made easier #v Challenge Fleet operators need to understand how to move from ICE to EV with minimal business disruption a 59 out ores #¥ Solution We take journey data combined with other data sources to produce comprehensive and dynamic planning tool ~63 024 ko /yea C0; s th
Slide 19: Quartix Check: Walkaround Vehicle Inspections
Quartix Check Quartix Walkaround Vehicle Inspections Challenge Solution Adoption Fleet operators have a duty of care to ensure Drivers download a smartphone app and Released in Jan '23 with early pipeline and vehicles are safe to drive every day carry out necessary vehicle checks. Fleet sales encour
Slide 20: Our Opportunity
Quartix Real-Time Vehicle Tracking Our Opportunity
Slide 21: North America and Europe commercial vehicles and installed base
NORTH AMERICA TOTAL COMMERCIAL EUROPE TOTAL COMMERCIAL VEHICLES VEHICLES AND INSTALLED BASE (m) AND INSTALLED BASE (m) 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 Total parc Installed base Total parc Installed base 21 Source – Berg Insight
Slide 22: Where we will win
Where we will win The best service levels available at a lower price than you pay today SMB Greenfield Switch Opportunities Flight to value 22
Slide 23: Service Levels
Service Levels OETA = = ‘ | ; =F S Quartix pad pie tor in Soe Ea, ° p= ESESESESES °° mmm Customers eS vensmconney mum Gold 2023 23
Slide 24: Year Plan
3 Year Plan Quartix Sales Execution Operational Scalability Deeply Understand Customers 24
Slide 25: Sales approach by country
UK France US (TX) Italy Spain Germany Comparison Existing and Sales ongoing investments Direct Sales Additional investment for 2023 Field Sales Distribution 25
Slide 26: The best service levels available at a lower price than you pay today
The best service levels available at a lower price than you pay today Sales Efficiency Platform Proactive Support 26
Slide 27: Long Term Vision
Long Term Vision Customer lens Continuously learning from our customers and using these insights to guide our decisions Innovation Keeping our product simple to use whilst adding valuable features that address customer experience and unfolding mobility changes Scalability Process and digital transfo
Slide 28: Quartix Technologies plc Business Presentation
Quartix Technologies plc Business Presentation