Karooooo Ltd. · NASDAQ:KARO
Karooooo — Q4 FY2021 Earnings Presentation
20 slides from Karooooo's earnings presentation, May 2021
Slide 1: Earnings Presentation Q4 FY2021 and FY2021
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: Corporate structure as at February 28, 2021 and April 21, 2021
>: As at February 28, 2021 KAROOOOO Private company 68.1% CARTRACK JSE TICKER “CTK” As at April 21, 2021 KAROOOOO NASDAQ TICKER “KARO” JSE TICKER “KRO” 100% CARTRACK Founded in South Africa, now headquartered in Singapore
Slide 4: All vehicles will be connected; our mission
>: In our view, all vehicles will be connected & data will drive all aspects of mobility in the future OUR MISSION To build the leading mobility SaaS platform that maximizes the value of data
Slide 5: A History of Consistent Organic Growth
A HISTORY OF CONSISTENT ORGANIC GROWTH Scale Growth Profitability Subscribers Revenue Adj. Net Income“) 000s ZAR M ZARM 33 133 1306 S16 29 128 589 1,246 551 1175 116 535 14 1134 12 1,127 su 1,089 493 1039 468 470 101 Il l l } | oe o mw 1 ao oo ao 2 oO ow o @ @ a ao 2 o ow o @ @ o So moh wh ee fo Sm
Slide 6: Our Track Record of Execution
>: OUR TRACK RECORD OF EXECUTION 16% Subscriber Growth 18% Revenue Growth FY21 1.306M FY21 ZAR 2,291M FY20 1.127M FY20 ZAR1,942M 32% Operating Profit margin FY2021 49% FY2021 Adjusted EBITDA margin (2) 96% ~163M USD FY21 Subscription ARR ZAR 2.4Bn as of revenue as a % of total revenue February 28, 2
Slide 7: Quarterly Net Subscriber Additions
QUARTERLY NET SUBSCRIBER ADDITIONS 48,897 41,626 29,275 = «2 ~16% -15% Growth Growth = FY20 mFY21 42% Growth 59% Growth
Slide 8: Geared for Growth
GEARED FOR GROWTH ARR“) Operating Profit Adj EBITDA ZARM ZARM ZARM $163M USD? $50M USD®) $77M USD® 2,377 77 vue 18% Growth 18% Growth 21% Growth FY20 FY21 FY20 FY21 FY20 FY21 ° TAN, "ARR is defined as the annual run-rate subscription revenue of subscription agreements from all customers at a point i
Slide 9: Cash Flow
CASH FLOW Net Cash Flow from Operating Activities ZARM 931 AsatFebruary As at February 28,2020 28,2021 Cash Flow from Investing Activities: PPE ZARM 478 333 43% Growth FY20 FY21 Free Cash Flow?) ZARM 513 453 -12% Growth FY20 FY21 MAN © Net Cash Flow from Operating Activities for FY20 has been adjust
Slide 10: Our Low Cost of Acquiring a Subscriber
OUR LOW COST OF ACQUIRING A SUBSCRIBER Total Unit Cost of Acquiring a Subscriber“) ZAR 2,359 a = 2,008 ne 221 292 |, Capex 1,814 CapEx CapEx 1,509 * }e r ‘ 1,433 ver 1488 ro Fv20 ren ° Ww ()For bundled sales which contribute to Subscription Revenue m Sales and Marketing Opex Non-capitalized Sales Co
Slide 11: Robust Operating Metrics
ROBUST OPERATING METRICS Investing for growth FY20 FY21 Annual Subscription Revenue ( ZAR M) 1,888 2,209 YoY Subscription Revenue Growth 24% 17% ARPU (ZAR) 151 154 Gross Margin 70% 71% Research & Development as a % of Subscription Revenue “) 2% 5% Sales & Marketing as a % of Subscription Revenue @)
Slide 12: We Contextualize Billions of Data Points
WE CONTEXTUALIZE BILLIONS OF DATA POINTS & DRIVE EXCEPTIONAL VALUE FOR CUSTOMERS DATA COLLECTION & REAL-TIME DATA AGGREGATION DRIVING INSTANT VALUE DATA CONTEXTUALIZATION MoNETienTiOn Business intelligence S5OBn+ data points monthly Telematics fleet management Proprietary Data in-vehicle storage & a
Slide 13: A Large, Underpenetrated Market
A LARGE, UNDERPENETRATED MARKET 2018-2026 EXPECTED CAGR: 26% Global SAM Global SAM Europe: $6.5Bn USD Europe: $40.3Bn USD . $77.4Bn APAC & ME: $4.8Bn USD APAC & ME: $30.0Bn USD Africa : $0.9Bn USD Africa : $7.1Bn USD RB 2018 2026 (The Global Automotive Telematics Market. Source: Allied Market Resear
Slide 14: Organic Customer Growth
ORGANIC CUSTOMER GROWTH Consumers & Sole Proprietors Small Enterprises Medium-Sized Enterprises Large Enterprises 1-5 vehicles 1 — 24 vehicles 25 - 99 vehicles 100+ vehicles 612,774 72,803 2,461 449 409 e766 2,189 485,843 54,368 1,787 341 397,227 FY19 FY20 FY21 FYI9 FY20 FY21 FY19 FY20 Fy21 FYI9 FY2
Slide 15: Our Success Across Industries
OUR SUCCESS ACROSS INDUSTRIES Orin for BZ Gort, ipnipce awe ZS South Africa Zing Price — DeBrers “phuce Courier Spartans @cfao eret HNO Rest of Africa iy) (Game mcve “4 NCBA GEMFIELDS TOYOTA om Europe Mx eo 4 SHV > A ZZ Asia z. 1 @ S Oar >: 15
Slide 16: Continued International Expansion Under COVID
CONTINUED INTERNATIONAL EXPANSION UNDER COVID >: ‘000s Subscribers / ZAR M FY19 FY20 FY21 YoY change SOUTH AFRICA Subscribers 746 869 1,014 17% Subscription Revenue 1,117 1,384 1,622 17% AFRICA- OTHER Subscribers 56 60 62 3% Subscription Revenue 98 107 94 -12% EUROPE Subscribers 83 99 111 12% Subscr
Slide 17: Outlook
OUTLOOK ® Geared for growth and scalability with strong financial discipline and earnings FY20 FY21 FY22 Expected Number of subscribers (000s) 1,127 1,306 1,500 - 1,600 Subscription Revenue (ZAR M) 1,888 2,209 2,500 — 2,700 Adjusted EBITDA margin 48% 49% 45% — 50% Actual results may differ materiall
Slide 18: Reconciliation of Karooooo & Cartrack
RECONCILIATION OF KAROOOOO & CARTRACK EBITDA & NET INCOME Net Income Karooooo vs. Cartrack ZAR (000s) FY2020 FY2021 Net Income Cartrack 456,422 542,338 IPO costs expensed - (25,570) Corporate and other Karooooo expenses (10,801) (4,392) Taxation (2,095) (14,956) Net Income Karooooo. 443,526 497,420
Slide 19: Thank You
‘Thank You
Slide 20: Appendix
CARTRACK Appendix REFER TO Q4 & FY 2021 EARNINGS MEDIA RELEASE FOR DETAILED FINANCIAL TABLES & RECONCILIATIONS