Slide 1: Final Results Presentation
Final Results Presentation 29 February 2016
Slide 2: Financial Results
Financial 20 Revenue Results £m EBIT 15 Operating cash flow 10 5 yr CAGRs: 5 Revenue: +24% EBIT: +27% Operating 0 Cash flow: +39% 2011 2012 2013 2014 2015
Slide 3: Subscription Base
Subscription Base 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 4: KPIs
KPIs 2015 2014 % change Fleet installations 21,518 16,355 31.6 Fleet subscription base (units) 73,744 59,765 23.4 Fleet customer base 7,849 6,342 22.6 Fleet attrition (annualised) (%) 11.3 9.4 Fleet invoiced recurring revenues (£’000) 11,828 9,816 20.4 Fleet revenues (£’000) 12,957 11,038 17.4 Insur
Slide 5: Recurring Revenues
Recurring Revenues 12.0 2015 10.0 2014 £m 8.0 2013 6.0 2012 4.0 2011 The chart shows 2010 invoiced fleet rental 2009 2.0 and communications 2002 revenues segmented to 2008 0.0 by year of customer acquisition
Slide 6: Overview
Overview Year ended 31st December - £’000 (except where stated) 2015 2014 % change Revenues Fleet 12,957 11,038 17.4 Insurance 6,718 4,293 56.5 Total 19,675 15,331 28.3 Gross profit 12,150 9,943 22.2 Gross margin 62% 65% Operating profit 6,045 4,885 23.7 Operating margin 31% 32% Net profit 5,014 4,0
Slide 7: Financial Results
Financial Results Free Dividends paid FCF up 20% to cash flow £5.4m 5.4 2.3 (2014: 4.5m) £m Net cash EPS up 25% to 2014: 3.0 10.69p net debt per share Net cash: of £0.2m Proposed final £3.0m at 0.2 dividend 4.0p per year end share
Slide 8: Dividend Policy
Dividend Policy £’000 Less taxes paid Interim dividend: 2.0p per share 6,781 1,092 Final dividend: 4.0p per share Less interim dividend 50% 2,845 940 The current policy is 1,905 to pay out 50% of free cash flow (defined as cash Cash flow Final generated from from dividend operations operations, less
Slide 9: Supplementary Dividend
Supplementary Dividend £’000 2015 year end example Year end cash balance 4,040 Year end final dividend 1,905 2,135 Year end cash balances Amount over £2m 135 in excess of £2m after the final dividend will Cash required for 2p per share 944 be paid as a supplementary dividend, subject to No supplemen
Slide 10: Customer quote: Ginsters Ltd
“We have seen improved driving standards utilising the Quartix driving style reports, resulting in reduced vehicle incidents and an 18% improvement in fuel consumption.” Andrew Gibbons, Fleet CI Manager, Ginsters Ltd
Slide 11: Customer quote: SLTI
“Using the Quartix system we have reduced communication costs with our drivers by 50%.” Arnaud Richter, Directeur Exploitation, SLTI
Slide 12: Fleet Tracking
Fleet 21,516 Tracking 20,000 Units 15,000 16,337 10,000 32% growth 5,000 in new fleet installations 0 2014 2015
Slide 13: Fleet Tracking
Fleet 80,000 73,744 Active vehicle Tracking subscriptions 60,000 40,000 29,991 Fleet base 20,000 5 year CAGR 20% 0 2011 2012 2013 2014 2015
Slide 14: Fleet UK
Fleet UK 12 £11.7m 62,655 15,566 6000 5,960 + 15% + 15% + 13% + 12% 60000 15000 £ m 10 50000 8 4000 40000 10000 6 30000 4 20000 5000 2000 2 10000 0 0 0 0 2014 2015 2014 2015 2014 2015 2014 2015 Revenue Subscriptions Installations Customers
Slide 15: Fleet France
Fleet France 1.5 + 48% €1.4m 7500 +38% 7,190 + 52% 3,145 + 34% 1,196 € m 3000 1000 1.0 5000 2000 500 0.5 2500 1000 0.0 0 0 0 2014 2015 2014 2015 2014 2015 2014 2015 Revenue Subscriptions Installations Customers
Slide 16: Fleet USA
Fleet USA 0.4 $0.4m 3,179 3000 2,805 750 693 $ 3000 m 0.3 2000 500 2000 0.2 1000 250 1000 0.1 0.0 0 0 0 2014 2015 2014 2015 2014 2015 2014 2015 Revenue Subscriptions Installations Customers
Slide 17: Insurance Telematics
Insurance Telematics 20% Estimated proportion of market by age 15% 10% Estimated market size 5% 250-300k per annum 0% 17 18 19 20 21 22 23 24 25 26 27
Slide 18: Insurance Telematics
Insurance 7 Telematics unit 57,024 £m 6.7 6 s 5 4 4.3 32,842 3 Growth: 2 74% volume 1 56% revenue 2014 2015 0 2014 2015 Installations Revenue
Slide 19: Research and Development
Research and Development TCSV11 US network Temperature approvals Monitoring TCSV10 3G IFTA Quartix Web Reporting Services AP I iOS & SafeSpeed Android Apps Database
Slide 20: Summary and Outlook
Summary and Outlook • Strong growth in subscriptions underpins recurring revenues in fleet • Good progress in all three fleet markets • Good profit growth despite increased investment in new markets, new installations and increased plc costs • Strong cash generation enables high returns to sharehold
Slide 21: Appendix: Introduction to Quartix
Final Results Presentation Appendix: Introduction to Quartix
Slide 22: Our Proposition: Increased Productivity and Reduced Risk
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 * Eliminate fraud and * Verify agreed vehicle + Reduce loss ratios paym
Slide 23: Daily route map demo
cal:0870 013 6663 Home Logout Support HiDemo Daily route map for Demo fehicle:QX11 QE Citroen C! J Map HOD Ire }) Upminster " Barking Dagenham South ilylog RauteMep Zoom andFolon Zoom to Location Shon Soeed Data Bupha bury eal — n Southend-on-Sea [Mew + | Fobbing ves Corringham Canvey Islan Ke Stanf
Slide 24: GPS GPRS
GPS GPRS
Slide 25: Operations
Operations Chicago Newtown Cambridge Leatherhead Bishop’s Waltham
Slide 26: Customer quote: Broadland Guarding Services
“We have always found Quartix to be customer-focused and approachable. We look forward to continuing our partnership for the next 15 years.” Phil House, Director, Broadland Guarding Services Ltd.
Slide 27: Final Results Presentation
Final Results Presentation 29 February 2016