Quartix Technologies Plc · LSE:QTX
Quartix Technologies — Investor Presentation (February 2022)
37 slides from Quartix Technologies's investor presentation, Feb 28, 2022
Slide 1: Quartix Technologies plc Business Presentation 28 February 2022
Quartix Technologies plc Business Presentation 28 February 2022
Slide 2: Quartix management: CEO and CFO
Quartix Richard Lilwall - CEO Emily Rees - CFO 20+ years in Tracking and Telematics Operational & Commercial Finance Specialisation Head of HR
Slide 3: CEO background: 20+ years in tracking and telematics
20+ years in tracking and telematics Founded highly successful UK distributor Acquired in 2011 by Teletrac Navman Danaher owned – continuous improvement Accelerated Leadership Program and HBS CORe Managing Director and Vice President, Europe Joined Quartix October 2021 as CEO 3
Slide 4: Over 700,000 systems installed since 2001
Over 700,000 systems installed since 2001 Customer 125,085 fleet vehicles currently tracked in the UK across Sales, 11,332 customers Service & Support Telematics 40,343 tracked in France and 27,912 USA across 9,339 fleet clients 9,394 vehicles tracked in Poland, Spain, Italy, Germany across 1,997 cl
Slide 5: Challenges of managing mobile workforces
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 6: Cloud based platform for fleet visibility
Cloud based platform for fleet Business insights that empower Employers can monitor and visibility from any device, 24/7 instant improvements resolve high-risk behaviours High visibilty at all times increases Real time resource allocation Fewer miles and improved driving accountability and reduces f
Slide 7: LSE Green Credentials Quartix
LSE Green Credentials Quartix
Slide 8: Fuel reduction and workforce productivity benefits
Fuel reduction More vehicle utilisation Overall mobile workforce Fewer miles driven productivity Reduced employee Reduction in idle time overtime 8 Source – Frost and Sullivan 2015
Slide 9: WJ Road Markings: 12% increase in MPG
Transport Manager, Scott Logan, has made full use of the Quartix vehicle tracking data to transform the carbon efficiency of fleet operations at WJ Road Markings. As the largest • 12% increase in MPG independent road markings organisation in the UK, with 25 offices, 8 depots and • £26,000 savings in
Slide 10: Quartix Today
Emily Rees - CFO Quartix Today 28 February 2022
Slide 11: New subscriptions and fleet subscription base growth
NEW SUBSCRIPTIONS (000s) • New fleet subscriptions in 2021 increasing by 18% to 50.8k 60 Thousands 50.8 50 43.8 units (2020: 42.9k) 42.9 40 • Fleet subscription base reached +200k vehicles, up by 17% 30 20 over 12 months 10 • Annualised value of subscription base increased by £2.0m on 0 2019 2020 20
Slide 12: Key performance indicators 2021 vs 2020
2021 2020 Change Fleet subscriptions (new units) 50,765 42,898 18% Fleet subscription base 1 (units) 202,734 173,793 17% Fleet customer base 1 22,668 19,039 19% Fleet attrition (annualised %) 11.6 12.2 Price erosion (%) 2 6.0 6.6 Fleet revenue (£’m) 23.8 22.1 8% Annualised Recurring Revenue (ARR) (£
Slide 13: Segment results: customer acquisition and fleet telematics
£’m Customer Acquisition Fleet Telematics Services Total Business Total revenue 0.3 25.2 25.5 Segmental Costs (8.7) (5.4) (14.1) Profit before central fleet (8.4) 19.8 11.4 costs Central costs (5.7) Adjusted EBITDA 5.7 13
Slide 14: Fleet and insurance revenue, profit and margins
2021 2020 Change Fleet revenue 23,752 22,059 8% Insurance revenue 1,761 3,776 -53% Total revenue 25,513 25,835 -1% Gross profit 18,637 17,047 9% Gross margin 73 % 66 % Operating profit 5,309 5,680 -7% Operating margin 21% 22 % Adjusted EBITDA 5,725 7,871 -27% Earnings per share (p) 10.14 9.86 3% Cas
Slide 15: Growth by market, 2020 vs 2021
140 + 9% + 29% 140 + 19% 140 + 141% 140 Thousands Thousands Thousands Thousands 125k 120 115k 120 120 120 100 100 100 100 80 80 80 80 60 60 60 60 40k 40 40 40 40 31k 28k 23k 20 20 20 20 9k 4k 0 0 0 0 2020 2021 2020 2021 2020 2021 2020 2021 15
Slide 16: Unit installs from 2017
UNIT INSTALLS FROM 2017 7.0 (000s) COVID-19 IMPACT 6.0 5.0 4.0 3.0 2.0 1.0 Fleet installs Insurance installs 0.0 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 16
Slide 17: Price of new units based on installations in month
PRICE NEW UNITS – BASED ON INSTALLATIONS IN MONTH 2015 January 2019 2022 17
Slide 18: Fleet subscription base 202.7k
220 FLEET SUBSCRIPTION BASE 200 (000s) 202.7k 180 160 17% growth in subscription base in 2021 Strong progress in France and new European 140 territories 120 Good start to 2022- 25% installation growth year on year, and £0.4m increase in annualised recurring 100 revenue. 80 60 40 20 0 2002 2003 2004
Slide 19: Invoiced subscription revenue by year of customer acquisition
24 INVOICED SUBSCRIPTION REVENUE BY 22 2021 YEAR OF CUSTOMER ACQUISITION 20 (£m) 2019 2020 18 2019 16 14 2018 12 2017 10 2016 8 2015 6 2014 2013 4 2012 2011 2 2002 - 2010 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 19
Slide 20: Revenue by sector and adjusted EBITDA
7.0 3.8 1.8 4.8 23.8 22.0 20.8 REVENUE BY SECTOR £m 18.8 FLEET INSURANCE 2018 2019 2020 2021 8.5 7.9 ADJUSTED EBITDA £m 7.1 ADJ EBITDA 5.7 MARKETING SPEND 3.4 2.9 2.1 1.6 2018 2019 2020 2021 20
Slide 21: Growth Opportunity
Quartix Real-Time Vehicle Tracking Growth Opportunity
Slide 22: UK installed base and Quartix segments
UK INSTALLED BASE (000s) QUARTIX SEGMENTS 125k 10% 10% 10% 70% Quartix A B C D E F G Service Construction Government Transport Anonymised Competitor Data 22 Sources – Berg Insight Fleet Management in Europe 16th Edition 2021 + in-house market research
Slide 23: Total addressable market by geography
60 TOTAL ADDRESSABLE MARKET BY GEOGRAPHY 54.7 (MILLIONS) 50 COMMERCIAL VEHICLES 40 30.7 43.1 30 17.1 20 10 7.5 13.6 11.6 4.7 0 2.8 UK US EU Penetrated Unpenetrated 23 Sources – Berg Insight Fleet Management in Europe 16th Edition 2021 + in-house market research
Slide 24: US and EU installed units and penetration rate
US INSTALLED UNITS (m) AND 25 EU INSTALLED UNITS (m) AND 80.0% 25 80.0% PENETRATION RATE (%) 23.6 PENETRATION RATE (%) 22.5 70.0% 70.0% 20.5 19.9 69.7% 20 20 60.0% 17.9 60.0% 17.5 62.2% 15.6 55.5% 15.4 50.0% 50.0% 15 15 13.6 49.5% 13.3 12.3 44.2% 40.0% 40.0% 11.5 41.0% 10 10 34.5% 30.0% 30.0% 30.8%
Slide 25: Market segments and focus
Local gov. Quartix General Markets General Markets General Risk Focus Markets General Transport Markets and General Transport Markets specialist Transport specialist 25
Slide 26: Strategy in 2022/23
Strategy in 2022/23 Quartix Sales Execution Excellence Build Operational Scalability _ Deeply Understand Customers Multi-year project will include best-in- We will drive scalability with a firm focus By listening to customers more closely class product demo and pitch, an on simplification, digital t
Slide 27: Product developments: consulting, inspection app, functionality
Consulting and integration Walk-around inspection app Functionality improvements User Interface refresh 27
Slide 28: EV migration insight
Utilise customer data to provide insight on EV migration Recommendation on specific vehicles Total cost of ownership change vs. current fleet 28
Slide 29: Walk-around inspection app
Drivers confirm their company vehicle is safe- to-use before they drive Record, report and photograph any defects. Capture details of any road traffic incident 29
Slide 30: Connected camera solution
Captures real-time footage Hyperlapse technology to get to the right data fast Improvements in camera product and solution 30
Slide 31: New, modernised interface
New, modernised interface Improved ease of use More features without compromise 31
Slide 32: US Investments 2022/23
US Investments 2022/23 Marketing Increase spend in region to generate an additional 3-4k potential addressable vehicles each month E-Commerce Allowing Quartix to serve smaller customers in the most convenient way with low cost and a highly competitive price point Product Developments Launch of a Con
Slide 33: Growth of annual recurring revenues
GROWTH OF ANNUAL RECURRING REVENUES Return on Investment seen in ARR Growth £30.0m+ New installations growth will accelerate following the investment made in 2021 £23.9m ARR will continue to see £22.2m double digit growth over the £20.5m next two years £18.8m £16.9m Annual recurring revenue of at le
Slide 34: Revenue growth following insurance withdrawal
REVENUE GROWTH Revenue growth REVENUE starts to show results following withdrawal from Insurance market Expectations are that total revenue will grow increasingly year on year in 2022 and 2023. The plateau of the current price erosion and improvements to ARPU through product innovation and upselling
Slide 35: The next 5 years vision 2022-2027
5 Year Vision Innovation Keeping our product simple to use whilst adding valuable features that address customer challenges and unfolding mobility changes Customer lens Deeply know our customers, visit them, listen to them and view through their lens Value Build on our successful value-based strateg
Slide 36: Investment Case
Executive Summary Investment Case Assessment o Successful value- based strategy o Market credibility o Customer outcome focused culture Results 17% growth in Fleet Subscription Base 18% increase in Fleet Subscriptions Low attrition at 11.6% Opportunity US and EU with large addressable markets Penetr
Slide 37: Quartix Technologies plc Business Presentation 28 February 2022
Quartix Technologies plc Business Presentation 28 February 2022
Quartix Technologies — Investor Presentation (February 2022) on 6ix