Slide 1: Final Results Presentation
Final Results Presentation 27 February 2017
Slide 2: Financial Results
Financial Results £m 23.3 FCF +10% to Revenue £6.0m 20 EBIT Operating cash flow 15 CAGRs (2012-2016): 10 6.5 6.8 Revenue: +29% EBIT: +22% 5 Operating Cash flow: +15% 0 2012 2013 2014 2015 2016
Slide 3: KPIs
KPIs 2016 2015 % change Fleet installations 22,224 21,518 3.3 Fleet subscription base (units) 87,889 73,744 19.2 Fleet customer base 9,105 7,849 16.0 Fleet attrition (annualised) (%) 10.0 11.3 Fleet invoiced recurring revenues (£’000) 13,646 11,828 15.4 Fleet revenue (£’000) 14,909 12,957 15.1 Insur
Slide 4: Recurring Revenue
Recurring Revenue £m 14.0 2016 12.0 2015 10.0 2014 8.0 2013 6.0 2012 The chart shows invoiced fleet rental 4.0 2011 and communications 2010 revenue segmented 2.0 2009 by year of customer 2002 to acquisition 2008 0.0 2002-2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 5: Overview
Overview Year ended 31st December - £’000 (except where stated) 2016 2015 % change Revenue Fleet 14,909 12,957 15.1 Insurance 8,430 6,718 25.5 Total 23,339 19,675 18.6 Gross profit 14,063 12,150 15.7 Gross margin 60% 62% Operating profit 6,543 6,045 8.2 Operating margin 28% 31% Adjusted EBITDA 6,808
Slide 6: Financial Results: Free cash flow and net cash
Financial 6.0 2.9 Dividends Results Free paid cash flow FCF up 10% to Exchange £m differences £6.0m (2015: 5.4m) 6.2 EPS up 20% to Closing net Net cash: 3.0 cash 12.87p 2015 2016 per share £6.2m at year end
Slide 7: Dividend Policy
Dividend Policy £m Less taxes paid Interim dividend: 2.2p per share 6.8 0.6 Final dividend: 4.3p per share Less interim 50% dividend 3.1 1.0 2.1 The current policy is to pay out 50% of cash generated from operations, Cash flow Final less taxes. from dividend operations
Slide 8: Supplementary Dividend
Supplementary Dividend £’000 2016 calculation Year end cash balance 6,249 Year end final dividend (4.3p) 2,036 4,214 Amount over £2m 2,213 Year end cash balances in excess of £2m after Final dividend: 4.3p the final dividend will Supplementary dividend: 4.7p be paid as a Proposed supplementary final
Slide 9: Fleet Tracking
Fleet 87,899 Active vehicle Tracking 80,000 subscriptions 60,000 40,000 29,991 CAGR 20,000 since 2011 24% 0 2011 2012 2013 2014 2015 2016 Second half subscription base growth 59% higher than first half (8,675 vs. 5,470)
Slide 10: Fleet UK
10 Fleet UK £m £12.8m 71,712 + 10% + 15% 70000 12 • Good subscription growth in 2nd half 60000 10 50000 • Customer base expanded by 11% to 8 6,602 40000 6 • New installations of 15,766 units 30000 4 20000 • New software features released at 2 mid-year point aided 2nd half growth 10000 0 0 • Senior a
Slide 11: Fleet France
11 Fleet France €1.8m 10000 9,986 1.75 + 25% + 26% €m • Customer base increased by 19% to 1.50 8000 1,428 1.25 6000 • Head of French operations appointed 1.00 on 1st July 0.75 4000 • Privacy functionality released to meet 0.50 changed CNIL legislation 2000 0.25 • Continued improvements in marketing
Slide 12: Fleet USA
12 Fleet USA 1.0 $0.9m +131% + 95% 6,191 $m 6000 • Customer base increased by 55% to 0.8 5000 1,075 • Product continues to be well received 4000 0.6 • ELD legislation slowed demand in first 3000 0.4 half; product in beta test by year end 2000 • Nationwide installation network 0.2 helped accelerate n
Slide 13: UK Insurance Telematics
13 UK Insurance Telematics £m + 26% Units + 22% 8 8.4 (000s) 60,000 • Strong growth with margins maintained, but significant demands 6 on management time 40,000 • Market limited in size by 4 demographics 20,000 • Price pressure demands selective 2 approach to business development • Management focus
Slide 14: Powered By Quartix
14 Powered By Quartix • A standard product aimed at specialised brokers, using our fleet platform • Each broker equivalent to a large fleet customer • Monetarising Quartix’s SafeSpeed Database and other innovations • One small project launched, a second due to launch and further opportunities being
Slide 15: Research and Development
15 Research and Driving style enhancements to Development mobile apps New privacy features Real-time dashboards Miniature self-install system: the TCSV12 Electronic logging
Slide 16: Customer Acquisition
16 Customer Acquisition • Cost of customer acquisition is key to future growth • Digital marketing , e-commerce and ease of installation are all vital to this • Additional investment is planned • Chief operating officer with strong track record in digital joined in February 2017
Slide 17: Subscription Base
Subscription Base 90,000 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 2016
Slide 18: Summary and Outlook
Summary and Outlook • Strong growth in subscriptions underpins recurring revenue in fleet • Good progress in all three fleet markets • Good profit growth despite increased investment in new markets, new installations and R & D • Strong cash generation enables high returns to shareholders • Good star
Slide 19: Appendix: Introduction to Quartix
Final Results Presentation Appendix: Introduction to Quartix
Slide 20: 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 21: Daily route map and vehicle log
cal:0870 013 6663 Home Logout Support Daily route map for Demo HiDemo shicle:QX11 QQE Citroen C: fect | d are se Bulphan Southend-on-Sea [Mew + | parking Dagenham Feboing Paice Map South Corringham Canvey Island Key Stanford-le-Hope Ji Ser otto bur bury cle Isle OF Sain Daily Vehicle Log for Demo QX
Slide 22: GPS GPRS
GPS GPRS
Slide 23: Operations
Operations Chicago Newtown Cambridge Leatherhead Bishop’s Waltham
Slide 24: Final Results Presentation
Final Results Presentation 27 February 2017