Q2 2024 Karooooo Ltd. Earnings Call

Speaker 1: Hello and welcome to Karoo's Financial Year 2024 Q2 Earnings Call. On behalf of Karoo, we'd like to thank you for joining us today. I'm Carmen, the Group's Chief Strategy and Marketing Officer, and together with Hu Xin, our Group Chief Financial Officer, we'll be taking you through our strong business updates and financials.

Hello, and welcome to <unk> financial year, 'twenty 'twenty, four Q2 earnings call on behalf of curve, we'd like to thank you for joining us today.

I'm Carmen the group's chief strategy, and marketing officer, and together with fusion, Our group Chief Financial Officer, who will be taking you through our strong business updates and financials.

Speaker 1: All investors are advised to read through the disclaimer.

All investors are advised to read through the disclaimer.

Speaker 1: We will be reviewing all three of KARU's business units in today's webinar, namely, CAR Track, Kazuka and Karu Logistics.

We will be reviewing all three of <unk> business units in today's webinar, namely contract Kazuko <unk> and Courier logistics.

Speaker 1: Karoo continues to believe in our mission to be the leading operations cloud and we see how we are helping to set the path for tomorrow for operational businesses with our platform. Industry leading customers consult with us on how to improve their operations and tackle their day to day challenges. And our ability to think beyond connected vehicles and equipment has been pivotal in delivering a cloud that connects an entire operation in one place to achieve real business impact.

Peru continues to believe in our mission to be the leading operations cloud and we see how we are helping to set the path for tomorrow operational businesses with our platform.

Industry, leading customers consult with us on how to improve their operations and tackle their day to day challenges and our ability to think beyond connected vehicles and equipment has been pivotal in delivering a cloud that connects an entire operation in one place to achieve real business impact.

Operator: Hello and welcome to Karoo's Financial Year 2024 Q2 earnings call. On behalf of Karoo, we'd like to thank you for joining us today.

Carmen Calisto: I'm Carmen, the Group's Chief Strategy and Marketing Officer, and together with Hushin, our Group Chief Financial Officer, we'll be taking you through our strong business updates and financials. All investors are advised to read through the disclaimer. We will be reviewing all three of Karoo's business units in today's webinar, namely, Kachak, Kazuka, and Karoo logistics. Karoo continues to believe in our mission to be the leading operations cloud, and we see how we are helping to set the path for tomorrow for operational businesses with our platform.

Speaker 1: Despite the varying macroeconomic environments we encountered, digitalisation, ESG and compliance continue to be strong drivers for demand of our platform.

Despite the varying macroeconomic environments, we encountered digitalization ESG and compliance continue to be strong drivers for demand of our platform.

Speaker 1: Our platform offers the flexibility customers need to digitalize their operation at their own pace and in a way that makes sense for them. Whether it is digital forms that facilitate workers and drivers to complete their workflows effectively via mobile apps.

Our platform offers the flexibility customers need to digitalize their operations at their own pace and in a way that makes sense for them whether it is digital forms that facilitate work isn't jive is to complete their workflows effectively via mobile app coaching solutions that generate success and provide accountability risk manager.

Speaker 1: Coaching solutions that generate success and provide accountability, risk management tools that enable quick resolutions and full audit trails, automated carbon emission reporting and progress tracking, or detailed productivity reporting for optimized operations, our platform fits into an operation for success.

<unk> tools that enable quick resolutions and full audit trails automated carbon emission reporting in progress tracking or detailed productivity reporting for optimized operations our platform fits into an operation for success. Additionally, customers can integrate with their existing tools such as fuel card.

Carmen Calisto: Industry leading customers consult with us on how to improve their operations and tackle their day-to-day challenges, and our ability to think beyond connected vehicles and equipment has been pivotal in delivering a cloud that connects an entire operation in one place to achieve real business impact. Despite the very macroeconomic environments we encountered, digitalization, ESG, and compliance continue to be strong drivers for demand of our platform. Our platform offers the flexibility customers need to digitalize their operation at their own pace, and in a way that makes sense for them.

Speaker 1: Additionally, customers can integrate with their existing tools such as fuel card providers and ERPs to further curate insights that suit their needs.

It is and Erp's to further curate insights that suit their needs.

Speaker 1: By partnering with our customers to understand their operation and help tackle their challenges, we get deep insider knowledge to continue adding innovative features to our platform to further increase the value customers get and the importance we play in optimizing their operation. Our platform brings both operational and non-operational teams together and helps companies remain compliant, competitive in their industries and most importantly, forward thinking.

By partnering with our customers to understand their operation and help tackle their challenges, we get deep insight and knowledge to continue adding innovative features to our platform to further increase the value customers get and the importance we play in optimizing their operation.

Our platform brings both operational and non operational teams together and helps companies remain compliant competitive in their industries and most importantly forward thinking.

Carmen Calisto: Whether it is digital forms that facilitate workers and drivers to complete their workflows effectively via mobile app, coaching solutions that generate success and provide accountability, risk management tools that enable quick resolutions and full audit trails, automated carbon emission reporting and progress tracking, or detailed productivity reporting for optimized operations, our platform fits into an operation for success. Additionally, customers can integrate with their existing tools such as fuel card providers and ERPs to further curate insights that suit their needs.

Speaker 1: To illustrate how our platform impacts a customer's operation, we can take a look into an existing customer. A large furniture manufacturer that delivers their own goods needed a way to alleviate their administrative burden whilst improving their operations. With delivery fees often impacting a customer's decision to buy, offering competitive rates was critical to their operation.

To illustrate how our platform impacts a customer's operation we can take a look into an existing customer.

A large furniture manufacturer that delivers their own goods needed a way to alleviate their administrative burden, whilst improving their operations with delivery fees, often impacting our customers' decision to by offering competitive rates was critical to their operation.

Speaker 1: After 10 days of implementing our delivery management tool, our customer saw returns at large.

After 10 days of implementing our delivery management tool our customers saw returns at large without easy to use solution that optimizes all jobs across drivers and provides optimal groups as well as a practical mobile app for drivers to received everything they need to accelerate job our customers successfully saved fully.

Carmen Calisto: By partnering with our customers to understand the operation and help tackle their challenges, we get deep inside a knowledge to continue adding innovative features to our platform to further increase the value customers get and the importance we play in optimizing their operation. Our platform brings both operational and non-operational teams together and helps companies remain compliant, competitive in their industries, and most importantly forward thinking. To illustrate how our platform impacts our customers' operation, we can take a look into an existing customer.

Speaker 1: Without easy-to-use solution that optimises all jobs across drivers and provides optimal routes, as well as a practical mobile app for drivers to receive everything they need to excel at their jobs, our customer successfully saves 4 litres of diesel per vehicle per day.

Because of diesel per vehicle per day with this reduction they are on track to exceeding their sustainability goals and reducing their carbon emissions by over 2800 kilograms per vehicle per year.

Speaker 1: With this reduction, they're on track to exceeding their sustainability goals and reducing their carbon emissions by over 2,800 kilograms per vehicle per year.

Speaker 1: The payback period of our solution is under three days and the ROI is over 700% and this is purely looking at the fuel cost savings. If we were to account for the manpower cost saves on dispatching and managing drivers, as well as communicating with customers and collecting payment after delivery with our electronic proof of delivery, ROI would further increase.

The payback period of our solution is under three days and the ROI is over 700% and this is purely looking at the fuel cost savings. If we were to account for the manpower cost saves on dispatching and managing drivers as well as communicating with customers and collecting payments after delivery with our electronic.

Carmen Calisto: A large furniture manufacturer that delivers their own goods needed a way to alleviate their administrative burden whilst improving their operations. With delivery fees often impacting a customer's decision to buy, offering competitive rates was critical to their operation. After 10 days of implementing our delivery management tool, our customer saw returns at large, without easy-to-use solution that optimizes all jobs across drivers and provides optimal routes, as well as a practical mobile app for drivers to receive everything they need to excel at their job.

Proof of delivery or ROI would further increase this goes to highlight <unk> strong value proposition and the impact how cloud platform has in streamlining operations lowering environmental impact and helping businesses thrive in a more robust and competitive business landscape.

Speaker 1: This goes to highlights career strong value proposition and the impact how cloud platform has in streamlining operations, lowering environmental impact and helping businesses thrive in a more robust and competitive business landscape.

Carmen Calisto: Our customer successfully saved four litres of diesel per vehicle per day. With this reduction, they're on track to exceeding their sustainability goals and reducing their carbon emissions by over 2,800 kilograms per vehicle per year. The payback period of our solution is under three days and the ROI is over 700% and this is purely looking at the fuel cost savings. If we were to account for the manpower cost saves on dispatching and managing drivers as well as communicating with customers and collecting payment after delivery with our electronic proof of delivery, ROI would further increase. This goes to highlights Karoo's strong value proposition and the impact our cloud platform has in streamlining operations, lowering environmental impact and helping businesses thrive in a more robust and competitive business landscape.

Speaker 1: The same way reaching for a phone has become second-aged to society. Many drivers are unaware of their actions as well as the risks these actions have on their safety. What feels like half a second of screen time is actually 5 or a harmless yarn is actually the first fine of falling asleep at the wheel. Beyond harsh driving behavior detected by telemetry, AI cameras have given a new dimension to both managers and drivers to overcome high risk driving behavior.

The same way, reaching for a phone has become second nature to society. Many drivers are unaware of their actions as well as the risks. These actions have on their safety what feels like office second of screen time is actually five or harmless Jan is actually the first sign of falling asleep at the wheel.

Beyond harsh driving behavior detected by Telemetric AI cameras have given a new dimension to both managers and drivers to overcome high risk driving behavior.

Speaker 1: Real-time audible alerts have proven critical in enabling drivers to correct their behavior in real-time to avoid collisions and accidents. Whilst with total visibility of events that previously went undetected, managers are now equipped to establish effective training programs and monitor the progress of drivers towards a safety first working environment.

Real time audible alerts have proven critical in enabling Jive is to correct. The behavior in real time to avoid collisions and accidents, whilst with total visibility of events had previously went undetected managers are now equipped to establish effective training programs and monitor the progress of drivers towards safety.

First working environment AI cameras allow for a preventative and proactive approach to safety.

Speaker 1: AI cameras allow for preventatives and proactive approach to safety.

Carmen Calisto: The same way reaching for a phone has become second-aged society. Many drivers are unaware of their actions as well as the risks these actions have on their safety. What feels like half a second of screen time is actually five or a less yarn is actually the first sign of falling asleep at the wheel. Beyond harsh driving behavior detected by telemetry, AI cameras have given a new dimension to both managers and drivers to overcome high risk driving behavior.

Speaker 1: A customer that transports fuel has seen a 46% decrease in high-risk driver events detected by our AI after three calendar months of implementation.

A customer that transports fuel has seen a 46% decrease in high risk driver events to take FID by our AI after three calendar months of implementation D.

Speaker 1: These events include fatigue, mobile phone usage, other distracted driving and tailgating. An accident with a vehicle carrying such sensitive cargo is not only detrimental to driver's lives, but also can cause vast negative public relations that can have a long lasting negative effects on a business.

These events include fatigue mobile phone usage, other distracted driving and tailgating and accidents with a vehicle carrying such sensitive cargo is not only detrimental to the drivers' lives, but also it can cause loss negative public relations that can have a long lasting negative effects on our business avoiding.

Carmen Calisto: Real-time audible alerts have proven critical in enabling drivers to correct their behavior in real-time to avoid collisions and accidents. Whilst the total visibility of events that previously went undetected, managers are now equipped to establish effective training programs and monitor the progress of drivers towards the safety first working environment. AI cameras allow for preventatives and proactive approach to safety. A customer that transports fuel has seen a 46% decrease in high risk driver events detected by our AI after three calendar months of implementation.

Speaker 1: Avoiding these high-risk events reduces accidents and implementing this technology has enhanced our customer's reputation for strong service delivery, which has led to increased business growth.

Avoiding these high risk events reduces accidents and implementing this technology has enhanced our customers' reputation for strong service delivery, which has led to increased business growth.

Speaker 1: The benefits of increased safety are far reaching. Not only does this lead to safer communities and better working environments, but it reduces cost substantially through reduced accident repairs, maintenance fees and insurance premiums. Drivers feel more loyal to companies as they feel the fruits of the investment, and end customers feel more confident in the ability of our customers to exceed expectations.

The benefits of increased safety of far reaching not only does this lead to safer communities and better working environments, but it reduces cost substantially through reduced accident repairs maintenance fees and insurance premiums drivers feel more loyal to companies as they feel the fruits of the investments and end customers feel.

More confidence in the ability of our customers to exceed expectations.

Carmen Calisto: These events include fatigue, mobile phone usage, other distracted driving and tailgating. An accident with a vehicle carrying such sensitive cargo is not only detrimental to drivers' lives, but also can cause vast negative public relations that can have a long-lasting negative effects on a business. Avoiding these high-risk events reduces accidents and implementing this technology has enhanced our customers' reputation for strong service delivery which has led to increased business growth. The benefits of increased safety are far-reaching, not only does this lead to safer communities and better working environments, but it reduces costs substantially through reduced accident repairs, maintenance fees and insurance premiums.

Speaker 1: We encourage companies to work with their drivers by investing in their coaching and education. And as a benefit and success of these solutions gain traction, we believe we will continue to see increased government mandates around the implementation of this technology as a means to increase safety for communities.

We encourage companies to work with their drivers by investing in their coaching and education and that's what benefits and success of these solutions gain traction. We believe he will continue to see increased government mandates around the implementation of this technology as a means to increase safety for communities.

Speaker 1: Our robust customer growth across industries is testament to our proven business model, competitive differentiators and strong financial position. And we continue to see no customer or industry concentration risk.

Our robust customer growth across industries is testament to our proven business model competitive differentiators and strong financial position and we continue to see no customer or industry concentration risk.

Carmen Calisto: Drivers feel more loyal to companies as they feel the fruits of the investment and end customers feel more confident in the ability of our customers to exceed expectations. We encourage companies to work with their drivers by investing in their coaching and education, and as a benefit and success of these solutions gain traction, we believe we will continue to see increased government mandates around the implementation of this technology as a means to increase safety for communities.

Speaker 1: With over a decade of insights into operations and how our customers work, we are able to pinpoint what will drive business value and are incorporating AI and machine learning into our platform to enhance our solution. From accidents and fuel flow detection to industry insights and benchmarks, our customers are reaping the benefits from our vast data scale and network effects. And we will continuously enhance our platform to further increase these benefits.

With over a decade of insights into operations and how our customers work, we are able to pinpoint what will drive business value and are incorporating AI and machine learning into our platform to enhance our solution from accident and fuel fraud detection to industry insights and benchmarks our customers are reaping the benefits from our vos.

Data scale and network effects, and we will continuously enhance our platform to further increase these benefits.

Speaker 1: Our progress remains aligned with our ethos and long-term strategy to drive unparalleled value to the day-to-day operations of our customers. There's ample runway for growth and our team is motivated to deliver on it.

Our progress remains aligned with our ethos and long term strategy to drive unparalleled value to the day to day operations of our customers.

There is ample runway for growth and our team is motivated to deliver on it.

Carmen Calisto: Our robust customer growth across industries is testament to our proven business model competitive differentiators and strong financial positions, and we continue to see no customer or industry concentration risk. With over a decade of insights into operations and how our customers work, we are able to pinpoint what will drive business value and are incorporating AI and machine learning into our platform to enhance our solution. From accidents and fuel flow detection to industry insights and benchmarks, our customers are reaping the benefits from our vast data scale and network effects, and we will continuously enhance our platform to further increase these benefits. Our progress remains aligned with our ethos and long-term strategy to drive unparalleled value to the day-to-day operations of our customers. There is ample runway for growth, and our team is motivated to deliver on it.

Speaker 1: The Invisual Community of Lodge has continued to ask many questions around our culture and teams. We understand that running an operation the way we do is in those small seats. And we believe that our culture empowers us to deliver on key market differentiators that are difficult to replicate.

The Investor community at large has continued to ask many questions around our culture and teams we understand that running an operation. The way. We do is no small feat and we believe that our culture empowers us to deliver on key market differentiators that are difficult to replicate.

Speaker 1: We are open and transparent and we zero in on execution, not politics. Our solution-orientated mindset continues to be focuses on better solving customer pain points.

We are open and transparent and we zero in on execution not politics.

Our solution orientated mindset continuously focuses on better solving customer pain points, we attract top talent that does not step away from a challenge and is not afraid to try something new people that believe in hard work less froze and more action. It is not easy to take ownership of work, but while.

Speaker 1: We attract top talent that does not step away from a challenge and is not afraid to try something new. People that believe in hard work, less frills and more action. It is not easy to take ownership of work, but while entrepreneurial and customer centric teams, this is a key result of the innovation and creativity they continuously demonstrate.

Ariel and customer centric teams. This is a key result of the innovation and creativity they continuously demonstrate.

Speaker 1: As with most things, talking is easy. But our teams lead by example. We've had team members work their way from in-field technicians to key decision makers, from analysts to leading country managers. Not only does the show our teams the progression and reward they can achieve in their career, but it also creates a team with a diverse set of experience, skill and knowledge that is able to empathize with the challenges faced by our diverse customers and the challenges faced by our diverse customers.

As with most things talking is easy, but our teams lead by example, we have had team members work their way from infield technicians to key decision makers from analyst to leading country managers not only does this show our teams the progression and reward they can achieve in their Korea, but it also.

Carmen Calisto: The Invested Community of Lodge has continued to ask many questions around our culture and teams. We understand that running in operation the way we do is no small feat, and we believe that our culture empowers us to deliver on key market differentiators that are difficult to replicate. We are open and transparent, and we zero in on execution, not politics. Our solution-orientated mindset continues to be focuses on better solving customer pain points.

Creates a team with a diverse set of experience skills and knowledge that is able to empathize with the challenges faced by our diverse customers to solve them.

Speaker 1: We have a loyal team with the deep business and industry understanding required to build scalable tools that unleash the potential of operational businesses.

We have a loyal team with a deep business and industry understanding required to build scalable tools that unleash the potential of operational businesses.

Carmen Calisto: We attract top talent that does not step away from a challenge and is not afraid to try something new. People that believe in hard work, less frills, and more action. It is not easy to take ownership of work, but while entrepreneurial and customer centric teams, this is a key result of the innovation and creativity they continuously demonstrate. As with most things, talking is easy, but our teams lead by example. We have had team members work their way from infield technicians to key decision makers, from analysts to leading country managers.

Speaker 1: Our culture is not for everybody, but the people that sit out DNA are resourceful, ingenious and have a strong desire and ability to solve complex problems efficiently. They collaborate and combine in knowledge from diverse industries and geographies to deliver on easy to use solutions in a quick and efficient way.

Our culture is not for everybody, but the people that fit our DNA, a resourceful ingenious and have a strong desire and ability to solve complex problems efficiently. They collaborate and combine the knowledge from diverse industries and geographies to deliver an easy to use solutions in a quick and easy.

Speaker 1: Our staff are motivated by the success we see in our customers and this places us in the privileged position of working with a team that has a long-term mindset that is designed to win.

Fishing way all staff are motivated by the success, we see in our customers and this places us in the privileged position of working with the team that has a long term mindset that is designed to win.

Carmen Calisto: Not only to show our teams the progression and reward they can achieve in their career, but it also creates a team with a diverse set of experience, skill, and knowledge that is able to empathize with the challenges faced by our diverse customers to solve them. We have a loyal team with the deep business and industry understanding required to build scalable tools that unleash the potential of operational businesses. Our culture is not for everybody, but the people that fit our DNA are resourceful, ingenious, and have a strong desire and ability to solve complex problems efficiently.

Speaker 1: I will now hand over to Yushin, who will take us through our financial performance.

I will now handover tuition, who will take us through our financial performance.

Speaker 2: Thank you, Kamen. I will now talk through Curious Financial Performance for Quarter 2 FY24. Please note that all comparisons are against Quarter 2 FY 23 unless otherwise they.

Thank you Carmen I will now call Tucows financial performance for quarter, two FY 'twenty full. Please note that all comparisons are against quarter, two FY2023 unless otherwise stated.

Speaker 2: Our quarter to performance has gained momentum building from our solid start of the year and demonstrating growth across various financials.

Our quarter two performance has gained momentum building from our solid start off the year and demonstrating growth across various financial metrics.

Speaker 2: As expected, after substantial investment for future growth, in quarter to, Kuru's total subscription revenue increased by 17% to 860 million.

As expected after substantial investments for future growth in quarter, two coastal dos subscription revenue increased by 17% to eight habit and 60 million van.

Carmen Calisto: They collaborate and combine their knowledge from diverse industries and geographies to deliver on easy-to-use solutions in a quick and efficient way. Our staff are motivated by the success we see in our customers, and this places us in the privileged position of working with a team that has a long-term mindset that is designed to win.

Speaker 2: Operating profit increased by 13% to 247 million rent, and earnings per share increased 14% to 5,000,000,000,000,000,000.

Operating profit increased by 15% to to have it in 47 medium van and earnings per share increased 14% to five in and 61 cents.

Speaker 2: Our profitable SaaS business model continue to bluster our cash flow generation updates.

Unknown Executive: I will now hand over to Yushin, who will take us through our financial performance. Thank you, Carmen. I will now talk to Kuru's financial performance for quarter two FY24.

Our profitable business model continue to bolster our cash flow generation of D D.

Speaker 2: Net cash from operating activity increased by 26% to 300.4 million rent. This healthy cash generation will continue to support our future cash outflow required for investment.

Cash from operating activity increased by 26% to Chi Havent and 4 million win.

Yushin: Please note that all comparisons are against quarter two FY23 unless otherwise stated. Our quarter two performance has gained momentum, building from our solid start of the year and demonstrating growth across various financials. As expected, after substantial investment for future growth in quarter two, Karoo's total subscription revenue increased by 17% to 860 million rent. Operating profit increased by 13% to 247 million rent, and earnings per share increased 14% to 5,000 and 61 cents.

This healthy cash generation will continue to support our future cash outflow required for investment.

And future growth.

Speaker 2: All segments continue to see strong traction with the benefits of our strategic investment beginning to show.

All segments continue to see strong traction with the benefits of our strategic investment beginning to show.

Speaker 2: Our consistent results extend our track record of growth at scale, profitability and cash generation, please.

Our consistent results extend our track record off girlfriend, SKU profitability and cash generation ability after paying a dividend of 26.3 million U S dollars and investing 87 million van in the development of the South African Central office, our net cash on hand stood.

Speaker 2: After paying a dividend of $26.3 million US dollars, and investing 87 million rent in the development of the South African Central Office, our net cash on hand stood at 651 million rents.

At 651 million van.

Speaker 2: that does turn over stays improving to 29 days, alongside with prudent provisioning to weather of strong economic headwinds in some of the market we are operating.

That that's the newest days, improving 2019, alongside with prudent provisioning to better off strong economy. He wins in some of the market we are operating well.

Yushin: Our profitable sales business model continue to bloster our cash flow generation a plity, net cash from operating activity increased by 26% to 304 million rent. This healthy cash generation will continue to support our future cash outflow required for investment and future growth. Our segments continue to see strong traction with the benefits of our strategic investment beginning to show. Our consistent results extend our track record of growth at scale, profitability, and cash generation a plity.

Speaker 2: We have strong unit economics, robust operating margins, a leverage balance sheet and a strong cash conversion.

We have strong unit economics robust operating margins and leverage balance sheet and strong cash conversion.

Speaker 2: We remain confident that our track record of success, especially our ability to generate healthy cash flow, is sustainable.

We remain confident that our track record of success, especially our ability to generate healthy cash flow is sustainable.

Speaker 2: earnings the share increased by 14% to 5,000,000 and 61 cents.

Our earnings per share increased by 14% to five in and 61 cents.

Speaker 2: The increase is the result of positive revenue growth and improved profitability despite our prudent and strategic investment for growth.

The increase is the result of positive revenue growth and improved profitability, despite our prudent and strategic investments for growth.

Yushin: After paying a dividend of 26.3 million US dollars and investing 87 million rent in the development of the South African Central Office, our net cash on hand stood at 651 million rent. That does turn over stays improving to 29 days, alongside with prudent provisioning to weather of strong economic headwinds in some of the market we are operating. We have strong unit economics, robust operating margins, a leverage balance sheet and a strong cash conversion.

Speaker 2: We will now focus on Cartract, the underlying assets to Karoo's success.

We will now focus on contract.

S S. Two caboose success.

Speaker 2: The heart tracks continue to prove its ability to scale in varying macroeconomic conditions and consistently beaten the rule of force.

Contracts continued to prove its ability to skew in very macro economic conditions and consistently be turned to 40.

Speaker 2: Overall, subscriber grew at scale by 14% to over 1.83 million.

Overall subscriber grew at SKU by 14% to over 1.83 million.

Speaker 2: In this quarter, subscription revenue grew at 17% to 858 million when, while operating profits stood at 252 million.

And in this quarter subscription revenue grew at 17% to 858 million win while operating profit stood at 252 million drain.

Yushin: We remain confident that our track record of success, especially our ability to generate healthy cash flow, is sustainable. Our earnings per share increased by 14% to 5,000 and 61 cents. The increase is the result of positive revenue growth and improved profitability despite our prudent and strategic investment for growth.

Speaker 2: Our solid start in Quarter 1 continue as we gain momentum in Quarter 2 with a record net subscriber additions of over 75,000 in this quarter.

Our solid start in quarter, one continue as we gain momentum in quarter, two with a record net subscriber additions of over 75000 in this quarter.

Speaker 2: This was largely supported by the increasing demand of small to large enterprise, emphasising the necessity to enhance compliance functions and digitally transform their businesses to become more efficient and competitive.

This was largely supported by the increasing demand of small to large enterprise emphasizing the necessity to enhance compliance functions and digitally transform their businesses to become more efficient and competitive.

Yushin: We will now focus on car track the underlying assets to career success. Car tracks continue to prove its ability to scale in varying macroeconomic conditions and consistently beaten the rule of 40. Overall, subscriber grew at scale by 14% to over 1.83 million. And in this quarter, subscription revenue grew at 17% to 858 million rent while operating profits stood at 252 million rent. Our solid start in quarter 1 continue as we gain momentum in quarter 2 with a record net subscriber additions of over 75,000 in this quarter.

Speaker 2: CarTracks continue to build on its solid track record of growing at scale and experience strong customer acquisition in this quarter. CarTracks total subscription revenue grew 17% to 858 million rent.

Contracts continue to build on its solid track record of doing it skew and experienced strong customer acquisition in this quarter.

Gotcha.

Revenue grew 17% to 858 million Vin and represent 97% of total revenue, which is in line with our SaaS business model.

Speaker 2: Total revenue grew 17% to 884 million rent. Our SES ARR grew 17% to 3%

Revenue grew 17% to 884 million win.

Yes. They are all grew 17% to 3470 5 million van.

Speaker 2: contracts operating profit grew 13% to 252 million when and adjust the EBTA grew 9% to 40%

Contracts operating profit goes, but 10% to 252 million vein and adjusted EBITDA grew 9% to 417 million van.

Yushin: This was largely supported by the increasing demand of small to large enterprise, emphasizing the necessity to enhance compliance functions and digitally transform their businesses to become more efficient and competitive. Car tracks continue to build on its solid track record of growing at scale and experience strong customer acquisition in this quarter. Car tracks total subscription revenue grew at 17%, to 858 million rent. Ren, and Rep. 97% of Total Revenue, which is in line with our SaaS Business Model.

Speaker 2: Over the years, Cartrad has maintained a steady R4 and average up-front cost of acquiring a subscriber. R4 for the quarter was 159 yen. Cartrad's average lifetime revenue per...

Over the years contract catch maintained a steady off food and average upfront cost of acquiring a subscriber.

Apple for the quarter was 159 million.

Contracts average lifetime revenue per subscriber in this quarter stood at 9556 fan.

Speaker 2: The average up-francoach of adding a subscriber to our cloud in this quarter was 2002.

The average upfront cost of adding a subscriber to our cloud in this quarter was 2200 and ninety-two even.

Speaker 2: These costs mainly relate to sales commission and telemetric device which are capitalized and sales and marketing expense that are expense.

These costs, mainly relates to sales commission and telematic device beach capitalize and shifts in marketing expense that I expand shelf.

Yushin: Total Revenue grew 17% to 884 million Ren. Our SaaS ARR grew 17% to 3475 million Ren. CarTrack's operating profit grew 13% to 252 million Ren, and adjusted EBITDA grew 9% to 417 million Ren. Over the years, CarTrack has maintained a steady ARRFU and average upfront cost of acquiring a subscriber. ARRFU for the quarter was 159 Ren. CarTrack's average lifetime revenue per subscriber in this quarter stood at 956 Ren. The average upfront cost of adding a subscriber to our cloud in this quarter was 2,293 Ren.

The hateful derived from the average lifetime revenue per subscriber.

Speaker 2: After subtracting the average up front cost of adding a subscriber was 7200

Obstructing the average upfront cost of adding a subscriber was 7262 event the subscriber.

Speaker 2: From the 7,263 van, we incur the cost to service a subscriber over the contract lifecycle.

From the 7260 trees in we incurred a cost of service or subscriber a water contract lifecycle of 60 months the cost of service or subscribe a decrease as we grow our subscriber base.

Speaker 2: to service a subscriber decrease as we grow our subscriber

Speaker 2: Our Unit Economic Suspens Study, allowing us strong operates.

Our unit economics has been steady, allowing us strong operating profits.

Okay.

Speaker 2: The South African economy remains under pressure as a result of continuing strain on the national power grid.

<unk> continue to grow each subscriber base N E R out to expand in all geographies.

The South African economy remains under pressure as a result of continuing stream on the national power grid.

Yushin: This cost mainly relates to sales commission and telemetric device, which are capitalized and sales and marketing expense that are expensive. The headroom derived from the cost of adding a subscriber was 7,263 Ren per subscriber. From the 7,263 Ren, we incurred the cost to service a subscriber over the contract lifecycle of 60 months. The cost to service a subscriber decreased as we grow our subscriber base. Our unit economic has been steady, allowing us strong operating profits. CarTrack continues to grow its subscriber base and ARRFU to expand in all geographies.

The challenging trading conditions, our subscribers grew by 14%.

In Asia, the Middle East and U S E subscribers grew by 26% as detection in South East Asia has been encouraging.

Speaker 2: The subscriber grew by 26% as the traction in Southeast Asia has been...

Speaker 2: Salci Seisha remain as the second largest contributor to the group.

Southeast Asia remain as the second largest contributor to the group's revenue and we believe our value. The decision do you continue to find fever in this region and presenting the most compelling growth opportunity and deliver increasing and sustainable income to the group in medium to long term.

Speaker 2: we believe our value to decision will continue to five favor in this region and present the

Speaker 2: and deliver increasing and sustainable income to the group in medium tools.

Speaker 2: Europe saw a healthy growth of 14% and remain a region we are focusing on.

Europe saw a healthy growth of 14% and remain a region, we are focusing all our resources on.

Speaker 2: With our recent partnership with leading OEMs, we are poised to leverage our extensive offering to further develop the connected vehicle X-

With our recent partnership with leading Oems, we are poised to leverage our extensive offering to further develop the connected vehicle ecosystem and expect this partnership to contribute to our results in medium term.

Yushin: The South African economy remains under pressure as a result of continuing strain on the national power grid. Despite the challenging trading conditions, our subscriber grew by 14%. In Asia, the Middle East and USA, subscriber grew by 26% as the traction in Southeast Asia has been encouraging. Southeast Asia remains as the second largest contributor to the group's revenue, and we believe our value per decision will continue to find favor in this region and present the most compelling growth opportunity and deliver increasing and sustainable income to the group in medium to long-term.

Speaker 2: and expect this partnership to contribute to our results in

Speaker 2: In addition, we are experiencing and encouraging demand for our proprietary compliance technology.

In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region.

Speaker 2: Others maintains its groww with 8% increase.

Africa, others maintains the screw this 8% increase in subscriber.

Speaker 2: At the end of quarter two, our ARR increased 17% to 3,475 million rent.

At the end of quarter, two our E. R. R increased 17% to 3470 5 million Vin.

This is a good trending as we continue to see the momentum of growth in our subscriber and E. R. R.

Speaker 2: As we continue to see the momentum of growth in our subscriber and AI.

Speaker 2: The card strikes continue to have robust operating margins, and our trends are in line with the long-term financial goals set upon our listing in green.

<unk> continued to have robust operating margins and our trends are in line with our long term financial goals set up on our leasing in 2021.

Yushin: Europe saw a healthy growth of 14% and remained a region we are focusing on resources on. With our region partnership with leading OEMs, we are poised to leverage our extensive offering to further develop the connected vehicle ecosystem and expect this partnership to contribute to our results in medium-term. In addition, we are experiencing and encouraging demand for our proprietary compliance technology in the region. Africa others maintains its growth with 8% increase in subscriber.

Speaker 2: In this quarter, our subscription revenue goes profit margin stood at 72%.

In this quarter of our subscription revenue gross profit margin stood at 72%, which is consistent with our expectation.

Speaker 2: and development expense as a percentage of subscription revenue are.

Research and development expense as a percentage of subscription revenue up 6% as we focus on driving substantial benefit from our R&D capital location.

Speaker 2: as we focus on driving substantial benefit from our R&D capital allocation.

Our planned investment in improving and reaching and expanding our operation in club and internal management system issue and hence our value proposition to our customer.

Speaker 2: and reaching and expanding our Operation Cloud and Internal Management system, it should enhance our value.

Yushin: At the end of quarter two, our ARR increased 17% to 3475 million rent. This is at a good trending as we continue to see the momentum of growth in our subscriber and ARRFU. Karooooo, Karooooo, Karooooo,[inaudible] Sales and marketing expands as a percentage of subscription revenue increased to 14%. We believe the strategic investment for customer acquisition, position as well for continued growth, and we expect to see future benefit from this investment. General and admin expansion as a percentage of subscription revenue are at 22%.

Speaker 2: skills and monitoring expense as a percentage of subscription revenue increased to four.

Sales and marketing expense as a percentage of subscription revenue increased to 14%. We believe this strategic investment for customer acquisition.

Speaker 2: believe the strategic investment for customer access.

Speaker 2: Precision us well for continue growth and we expect to see future benefit from this

Our staff will continue growth and we expect to see future benefit from this investment.

Speaker 2: In general, and at mean as sponsors as a percentage of subscription revenue are at 22%. This plan increased Reflex Management Commitment to build a strong...

General and admin expenses as a percentage of subscription revenue at 92%.

This planned increase reflects management's commitment to build a strong support infrastructure to meet our future growth plan.

Speaker 2: Operating profit as a percentage of sufficient revenue are 29.

Operating profit as a percentage of subscription revenue up 99% and our adjusted EBITDA as a percentage of subscription revenue is at 49%.

Speaker 2: and our adjusted EBITDA as a percentage of subscription revenue is at 49%. We have had a solid start and we are happy with the progress we have made in quarter two. Our guidance for car tracks outlook remain unchanged with number of subscribers.

We have had a solid start and we are happy with the progress we have made in quarter two.

Our guidance for cash tax outlook remain unchanged with number of subscribers between one nine to $2 1 million contract subscription revenue between three four to 3.6 million vein and contracts operating profit margin between 28% to 31%.

Yeah.

Because you've got delivered 85 million in revenue in this quarter and an operating loss of 50 million men.

Speaker 2: to the quarter to n despite the growth experience by Kazuka in south

Yushin: This plan increased reflex management commitment to build a strong support infrastructure to meet our future growth plan. Operating profit as a percentage of subscription revenue are 29%, and our adjusted EBTA as a percentage of subscription revenue is at 49%.

Subsequent to the quarter, two and despite the growth experienced by because we go in South Africa.

Speaker 2: A decision was made to cease buying second-hand vehicles in

Fishing was made to cease buying secondhand vehicles in South Africa.

Speaker 2: This decision follows considerable interaction with motor dealership over the last.

This decision follows country durable interaction be from auto dealerships over the last 12 months.

Speaker 2: Over the years, CarTrack has been partnering with dealership as part of his customer acquisition strategy.

Oh, whether yes contract has been partnering with dealership as part of its customer acquisition strategy to acquire customers through the introduction of these dealerships.

Yushin: We have had a solid start, and we are happy with the progress we have made in quarter two. Our guidance for car tracks outlook remain unchanged, with number of subscribers between 1.9 to 2.1 million, car track subscription revenue between 3.4 to 3.6 million rent, and car tracks operating profit margin between 28 to 31%. Kazuka delivered 85 million rent in revenue in this quarter, and an operating loss of 13 million rent. Subsequent to the quarter two end, despite the growth experience by Kazuka in South Africa, a decision was made to cease buying second-hand vehicles in South Africa.

Speaker 2: However, some dealership has perceived the Kazuka business interest to be conflicting with their business interests in buying vehicles from customers. We maintain that the Kazuka

However, some dealership has perceived because we kept business interests to be conflicting beefed up your interest in buying vehicles from customers.

We maintained that the cut your current business model is robust, but we do not want to reach the long standing strategic relationship that contract had spots with motor dealership across South Africa.

Speaker 2: The rule logistic delivered significant growth generating 72 million rents.

Cool I'll, just stick delivered significant growth generating 72 million in revenue and an encouraging operating profit of 8 million rent in this quarter.

Speaker 2: and encouraging operating profit of 8 million rent in this quarter.

His focus on delivery as a service to selected the pop you crowdsource drivers and logistic companies has been highly scalable and is delivering substantial growth.

Speaker 2: Two selected third party crowd source drivers and logists

Yushin: This decision follows considerable interaction with motor dealership over the last 12 months. Over the years, car track has been partnering with dealership as part of its customer acquisition strategy to acquire customer through the introduction of this dealership. However, some dealership has perceived the Kazuka business interests to be conflicting with their business interests in buying vehicles from customers. We maintain that the Kazuka business model is robust, but we do not want to raise the long-standing strategic relationship that car track has forged with motor dealership across South Africa.

Speaker 2: has been highly scalable and is delivering substance.

Speaker 2: While it continues to integrate into car track platform to expand its customer base, the Coru logistic stack is expected to deliver a long-term revenue stream to the group. We believe the benefits of our strategic investment in this segment are...

While we continue to integrate into contracts platform to expand its customer base. The Corona logistics that is expected to deliver a long term revenue stream to the group.

Believe the benefits of our strategic investment in this segment are beginning to show.

I would like to thank everybody for joining us today, and we will now open the floor to Q&A with our group CEO and founder Mr. Zhang Callisto.

Speaker 3: Good morning, good afternoon. Good evening, depending on your... Thanks very much for joining the presentation. I'll open up the questions. And the first question comes from Mars 3. When will projects start monetizing data as a service? What percentage of projects annual revenues will come from data as a service in 3 years time?

Hi, Good morning, good afternoon, good evening could be in New York. Thanks.

Yushin: Career logistic delivered significant growth generating 72 million rent in revenue, and an encouraging operating profit of 8 million rent in this quarter. It is focused on delivery as a service through selected third-party crowd source drivers and logistic companies has been highly scalable and is delivering substantial growth. While it continues to integrate into car track platform to expand its customer base, the career logistic stack is expected to deliver a long-term revenue stream to 2 million. We believe the benefits of our strategic investment in this segment are beginning to show.

Thanks, very much for joining the presentation.

I'll open up to questions.

The first question comes from malls free.

We will contract start monetizing data as a service.

The percentage of contracts with annual revenues will come from a data as a service in three years time.

Speaker 3: Miles, sometimes you know these words are a bit of jogging. So they do the services, currently what we do do, the way I understand it.

Malls, sometimes with a bit of jargon. So data as a service is currently what we do do it the way I understand it.

Speaker 3: and we basically take all data, push the data through the IoT devices in Cloud Cloud. We obviously then...

And we basically take the raw data.

Push the data to the Iot devices Intel cloud, we obviously been.

Isaias Calisto: I would like to thank everybody for joining us today and we will now open the floor to Q&A with our group CEO and founder Mr. Jack Calisto. Hi, good morning, good afternoon. Good evening, depending where you are. Thanks very much for joining the presentation.

Speaker 3: Work with data and give intelligent business reports to our customers.

Work with data and keep our intelligent business reports to our customers so in our opinion.

Speaker 3: So in our opinion, a great portion of our subscription revenue model is already dated to the service, which we obviously offer it as a sub-to-the-service. And so I think either I'm not understanding a question, or that's...

Oh, great portion of our subscription revenue model is a rabies that as a service.

Obviously, you operate as a software as a service.

Isaias Calisto: I'll open up the questions and the first question comes from Mars 3. When will contracts start monetizing data as a service? What percentage of contracts annual revenues will come from data as a service in 3 years time?

And so I think I'm not understanding your question or that's my answer.

Speaker 3: The next question comes from Sebastian. Qua, Qua, Kombus, I'm not certain if I'm pronounced in the certain correctives, I apologize Sebastian if that's wrong. Can you expand further on the decision should shut down cause who can start that figure? And will there be any costs associated to cause in this division? So basically we have one list that it comes to closure during this financial year. So there is no real material cost.

Your next question comes from Sebastian.

I'm not certain if I'm pronouncing that correctly, so I apologies Sebastian if that's wrong.

Isaias Calisto: Mars, sometimes you know these words are a bit of jargon. So data as a service is currently what we do do, the way I understand it. And we basically take raw data, push the data to the IoT devices into our cloud. We obviously then work with data and give intelligent business reports to our customers. So in our opinion, a great portion of our description revenue model is already data as a service, which we obviously offer it as a software as a service. And so I think either I'm not understanding your question or that's my answer.

We expected under decision should shut down because you can't South Africa.

Isaias Calisto: The next question comes from Sebastian. Quack, Quack combos, I'm not certain if I'm pronouncing the certain correctly. So apologies Sebastian if that's wrong.

Will there be any costs associated because in this division so.

Basically we have one lease that it comes to carry during this financial year. So there is no real material costs.

Speaker 3: We've got in contract at this point in time about 500 vacancies open and the majority of the causes the cost of we will transition into contract so there is no make.

We've got in contract at this point in time about 500 vacancies open and the majority of the quasi Christophe we will transition to contract so.

No major costs.

Speaker 3: Clearly it is because there is a strong impact on

Clearly these costs could have an impact on contract initially okay. It's been planned and it will be I think by the time, we get to your 425 these costs won't be weighing us down. So I think the reality is we've been reducing our losses operating losses.

Speaker 3: car track initially, but that's been planned and it will be faced I think by the time we get to FY25 in a these costs won't be waiting us down so I think

Speaker 3: the realities we've been losing and losses, or breaking losses, of approximately 50 million render a year.

Isaias Calisto: Can you spend further on the decision should shut down cause who can start that figure? Will there be any costs associated to close in this division? So basically we have one list that it comes to closure during this financial year. So there is no real material costs. We've got in car track at this point in time about 500 vacancies open. And the majority of the cause you can stop, we will transition into car track.

Approximately.

$15 million range, a year and we see this loss disappearing and do it for roofing positively in our earnings next year, Although I do believe that as we speak in that effort in the last 12 months to really put our shoulders beyond Zika would've been much further but we've been in a long discussed.

Speaker 3: and we see this loss disappearing and it will reflect positively in our earnings next year, although I do believe that as we spent enough effort in the last 12 months to really put our shoulders beyond cause we could have been much further. But

Speaker 3: We've been in long discussions with our partners, which is basically the motor dealers.

<unk> with our partners, which is basically been voted dealers.

Speaker 3: where a few of them are saying that we've got conflict of interest with them and we've decided to cite these long-standing relationships.

A few of them all sound. Good REIT calls, we've got conflict of interest with them and we've decided to take these longstanding relationships and draw the continue keeping our relationships with them that I could give is helping.

Isaias Calisto: So there is no major costs. Clearly, these costs could have a strike impact on car track initially, but that's been planned and it will be faced. I think by the time we get to FY 25, you know, these costs won't be wearing us down. So I think the reality is we've been using a loss of operating losses of approximately 50 million render year. And we see this loss disappearing and it will affect positively in our earnings next year, although I do believe that as we spent enough effort in the last 12 months to really put our shoulders behind causes a little bit much further.

Speaker 3: and rather continue keeping out relationships with the multi-gillers help.

Speaker 3: The next question comes from Matthew, from Conference Impact Fund.

The next question comes from Matthew.

Confluence impact fund.

Speaker 3: acts filibiro comfort conference explanations thank you for the presentation combinations of prayers in ease results

Alright, Matthew controlled Congress impacts on thank you for the presentation progressions fragrance. These results despite the growth experienced oncologic into that decision.

Speaker 3: The spike of growth experience, not a cause you can have as a decision, might as well see this buying sick and anti-accessive. What does this mean for? Because it will be buying selling vehicles inside and what the difference shows are the dealers. So we have got the platform, we have developed the software for cars you can. We will still utilize the software for the benefit of our dealers. So currently quite a lot of our dealers advertise the second and vehicles on the cars you can platform. We then...

So you can add here is that what this is painful because it would you be buying selling vehicles in Vermont.

From a different source or they give us so we.

We have got the platform we have developed a soft before caused Zika, we will utilize this I'll speak to the benefit about dealers. So currently quite a lot of our dealers advertise the thickener and vehicles on the Zika platform. We then.

Isaias Calisto: But we've been in long discussions with our partners, which is basically the multidilist where a few of them are saying that we've got conflict of interest with them. And we've decided to save these long-standing relationships and rather continue keeping our relationships so the multidilist helps.

Speaker 3: within a system in the selling day pre-owned vehicles and we don't see this in any way conflicting so we will still be able to anyone that wants to add the tons on our platform more than willing to do it but we will not be taking inventory and buying selling vehicles but we will certainly allow our partners the dealerships to still get the benefit that I've read and told now

We then assistant in selling the vehicles and we don't see this in anyway conflicting so we'll still be able to anyone that wants to advertise on our platform more than willing to do it but we will not be typhoon greentree and buying and selling season in vehicles, but we all sit here now.

Isaias Calisto: The next question comes from Matthew, from Confluence Impact Fund by Ex-Native Confluence Impact Fund. Thank you for the presentation,[inaudible] Karooooo, Karooooo, Karooooo, Karooooo,[inaudible] Isaias Calisto, Unknown Executive, Isaias Calisto, Hoe Goy, Karooooo Isaias Calisto Hoe Goy, Karooooo Isaias Calisto, Hoe Goy Karooooo Isaias Calisto, Unknown Executive, Isaias Calisto, Hoe Goy, Karooooo Isaias Calisto, Hoe Goy, Karooooo Isaias Calisto, Hoe Goy, Karooooo[inaudible] Then a final question from Sikunati.

Oh.

Parker's dealerships to still get the benefit.

Good enough.

Speaker 3: LA Alex Scholar, quite a few operating margins, up nicely, the score that can you talk about operating margin expectations? Three and four given euro, absorbing quite a few, quite zicking, please. It's...

And then Alex caller contract operating margin is up nicely. This quarter can you talk about the operating margin expectation.

<unk> given you are absorbing cost quasi king please.

Yeah.

Uh huh.

It suits them you have a negative impact on our.

Speaker 3: on C not går nuestras

On on contract, but it's really a planned impact that we would have done anyway, because we need to employ this cost.

Speaker 3: But it's really a planned impact that we would have done anyway because we need to employ the staff.

Speaker 3: but I don't believe this impact is in the material. The staff moving over to the contract is strategic. We know the people, so we already know these strengths and weaknesses and where to put them into which departments. So it's all really just helping us for about five and a day to see that we currently have at the moment.

I don't believe this impact these material.

The stock, leaving two to contract is strategically we know the people. So we already know the strengths and weaknesses and wait to put them in two weeks departments takes all really.

Helping us for about apartment vacancies that would be kind of in cash at the moment.

Speaker 3: Matthew from William Blair as a net subscriber man in the second quarter continuing to the third quarter Matthew yes it has so in the first 40 days of Q3 our net subscriber additions were actually 40 000 so we are expecting to probably be over 80 000 net subscribers during Q3 that is our expectation for Q3 given that we all fly through Q3

And Mac you probably didn't play as a nuisance government in the second quarter concludes the third quarter and.

<unk> so in the first 40 days of Q3.

Subscriber additions were actually 40 person.

We are expecting.

Probably be over 80000 net subscribers during Q3.

That is our expectation for Q3, given that we all fly through Q3.

Speaker 3: Another question from Matthew from William Blay. Can you provide an update on the AEM relationships when could you start to contribute to subscribe additions? We have done a lot of integrations already with the European AEMs. We should be able to start seeing a series from these relationships in F125.

Another question from Matthew from William Blair.

Can you provide us an update on the I M relationships win could be start to contribute to subscriber additions.

We we have done a lot of integrations already with a European Oems.

We should be able to start seeing us from these relationships into FY 'twenty for us.

Matthew from Concord.

Speaker 3: Please can you comment on the proposed merger begin next, Salamaks and Power Fleet, which geographies the year other?

Please can you comment on the proposed merger between mixed Panamax in our fleet, which geographies do you.

Overlapping.

Speaker 3: I must say that you are not very familiar with plastics but very if we can make it

I must say I'm actually I'm, not very familiar with Bell Creek mix I'm really quickly configure with them.

Speaker 3: So my understanding is correct, powerfully, is very much a meek and base, but so I prefer not to comment because I don't really know. I haven't devoured into this information, I don't know.

So.

My understanding is correct powerfully.

You mentioned, making base, but so I prefer not to comment because I don't really know the odd thing to this information.

Speaker 3: You focus on different customers or rich tomatoes if we compare ourselves to mix.

You focus on different customers or routes to market and if we compare ourselves to mix I do not believe that we focus on different customers or different routes to market.

Speaker 3: I do not believe that we focus on the print customers or the print reach to market.

Speaker 3: what the French says your law offer to mix entirely? Stay outuisle!

Different shapes or offer from mix in power fleet.

I think it's multiple things.

Speaker 3: thing that's with our parts of solutions. I think our reduce market although die level it looks similar. But fundamentally when you get into the detail we quite different mix operating about Android geographies we are operating 23. We are a great believer that we need to have staff on the ground in all the countries. We do not

Same goes with our types of solutions.

I think al.

Z to market all that.

The high level it looks similar.

Fundamentally when you get into the detail of wheat quite different.

Mix operates in about 100 feet and.

Geographies, we are on the operating 23, we have great believer that we need to add staff on the ground in all the countries.

We did not.

Speaker 3: This should be in countries where we don't have presence, physical presence.

<unk>.

Distribute in countries, where we don't have presence physical presence.

Speaker 3: And I think that makes quite a big difference. And then obviously we very much focused on owning the customer. And that could also be a little bit of a difference between us and next. So, potentially, but I'm seeking it under correct.

And I think that makes quite a big difference and then obviously, we very much focused on owning the customer in that.

Could also be a little bit of a difference between us and mix potentially but I'm speaking under correction.

Speaker 3: Next question from painter worry gir same cattle

Next question from Sam DB, Michael Gila.

Speaker 3: Patrick Eberta margin is 47%. Why can't we reach the bottom at this level? Can you allow margin to 3 below 47 marks? You know, we've traditionally as our Eberta margins between about 45 or 44 and about 62%. We believe that will continue, you know, it depends how many...

EBITA margin is 47% what type we reached the bottom at this level.

A lot of margin to trend below 40%.

Mark.

So that we've traditionally our EBITA.

Since between about 45, or 44 and about 62% we believe that we've got to continue.

It means how much capital we have allocated into back office into cells and it's a timing thing we envisage that we all remain in these sort of margins.

Speaker 3: Capital we've allocated into back office and to sales and it's a timing thing. We've envisaged that we all remain in these sort of margins for quite a few years to come.

For quite a few years to come.

Speaker 3: Second in terms of Africa's Scarborough Bridge, a creature with the expect growth rates and subscribers to peak, given that they can send growth to the cheap into two. And you know, South Africa, we've got about 1.4 million vehicles on our cloud.

Secondly in terms of South Africa, Chicago, Bruce I appreciate that you expect growth rates and subscribers to peak given that through some simcoe team achieved in Q2.

South Africa, we've got about $1 4 million vehicles on our cloud.

Speaker 3: We believe we can drive that to about 3 million vehicles. Obviously we'll try to do that as quickly as possible. Currently we're going, you know, we're starting to see better momentum in growth in Q2 compared to Q1 and Q3, we continue with that momentum.

We believe we can drive that to about 3 million vehicles, obviously, we're trying to do that as quickly as possible.

We are growing we're starting to see better momentum in growth in Q2.

Compared to Q1 and Q3, we continue with that momentum.

Speaker 3: Thirdly, the plan is to integrate Kosovo-Kasovsino what is the estimated impact going on to the introduction or think of cover that? Fourth question, where do you see quite a traditional common equity teaching over the coming years? Well, there's many ways of calculating that. So we've got quite a lot of cash. So if you give it out the cash, as a dividend, then obviously you'll be in a situation that your return on equity is sprained.

Currently the plan is to integrate Kazuko software.

Looking back at the introduction of our drink a cup of direct.

First question, where do you see contract return on common equity over the coming years.

There's many ways of calculating that so we've got quite a lot of cash. So if you if.

If you strip out the cash as a dividend, obviously youll be in a situation that character and integrity spikes.

Speaker 3: You certainly make embedded returns faster than any ever your earnings in a form of business. At what phase of growth cycle of the business, would it make sense for you to...

You, Susan making better returns for us.

Earnings in the form of business at what size of credit cycle of the business.

Would it make sense for you to buy.

Speaker 3: As for the Divin, given that the naturally high cash provision has special investments in organic growth and peace.

Forward the dividend given that the naturally architectural vision rise, especially in the business inorganic growth.

Speaker 3: I rather stay away from that question simply because we're quite pragmatic in the way we run the business. We've got sufficient cash to accelerate growth and we intend keeping a solid cash base on our balance sheet, not we've been doing and we generate quite a lot of pre cash flow and at this point in time we can deploy as much cash as we actually generate and send in. Next question please.

I'd, rather stay away from that question simply because we quite pragmatic in the way we run the business.

We've got sufficient cash to accelerate growth and we can keep them.

Solid cash.

Based on our balance sheet that we've been doing.

And we are generating quite a lot of pre cash flow and at this point in time, we can't deploy as much cash as we exit interact with sandy.

Next question from Ross free.

Speaker 3: Why does collusion go as happy stage as the good, the most compelling growth opportunity in the mid-and-too-long term? And when is it the term as Europe and Cochak at part of the three games in Europe ? Well, we certainly believe...

Why does cause allergic or atopic stature as the group's most compelling growth opportunity in the medium to long term and when is it the Tam is European car ticket because it would be.

In Europe , while we certainly believe southeast Asia is the largest states in the east in terms of the economy growth Southeast Asia is probably one of the most fastest growing economies in the <unk>.

Speaker 3: is the largest. It's certain it is in terms of the economy growth Southeast Asia is probably one of the most fastest grain economies in the world in the region. It's also a huge large adjustable market. We've come in as outsiders, we're making good progress. We're starting to get good momentum. And I think we've still got a very long way to go before we reach the full camp.

World.

The region.

It's also a huge knowledge of faithful market with communist outside as we are making good progress you're starting to get good momentum and I think we've still got a very long way to go before we would reach.

Okay.

It's worth it and answer the Oems.

Well.

Yeah.

Okay.

Speaker 3: It's so quite check out the double-end number of subscribers every four years.

Check out the double the number of subscribers every four years do you see this continue at this pace of course, the pace and currently we are growing slightly slower than that in those years and I think all when Covid came and then the one year post COVID-19 is sort of cramped desktop.

Speaker 3: You see this continue at the space of FIASTA pace. Currently we grow in slightly slower than we did in those years. I think when COVID came and then the one year post COVID, it sort of cramped our style, but we certainly are getting momentum. And our intention is to grow to more than double our subscriber base in less than four years. So it's just a position of us getting our momentum back, which is certainly are getting at post COVID.

But we certainly are getting momentum and our intention is to get out of it.

More than doubling our subscriber base in listening for years. So just a question of us, giving our momentum back, which we certainly are getting advice cause it.

Speaker 3: Alexander, can you talk about the new area of the Scarlet Grows from June 3, September ? Did you see improvements every month or was it fairly thatable? Any change in vehicles but customer in terms of what you added with quarter? So our customer base in terms of our ECU's large enterprise customers and consumers remains quite constant over the years.

Alexander.

Can you talk about.

The reality of subscriber growth from June to September <unk> every month or was it.

Tractable any changing vehicles per customer in terms of what you added this quarter.

Our customer base in terms of our AC knees launching across customers and consumers remains quite consistent over the years.

Speaker 3: And then our growth has been quite consistent on a daily basis. We really measure our growth on working days. So quite frankly, we've got very steady growth. We've been, you know, we measure that growth on a daily basis. And the more working days we have, the better we do. And we're certainly not picking up on the instance. You've got your growth. And already static growth and I look at that fairly? on your phone today. And why do they allow you to run while it comes on? Good. industries.

Yeah, and then the outgrowth has been quiet.

It's been quite consistent.

On a daily basis, we really measure our growth on.

Working days.

I think so.

Quite frankly, as we got the steady growth we can see it.

We made sure that growth on a daily basis and the more working days, we would have to pay for we do and we certainly are picking up momentum.

Adding to that Alex typically.

Speaker 3: Q3 is normally out there squatter, given that there's less holidays in Q3.

Q3 is not only out this quarter given that these delays holidays in Q3.

Speaker 3: and soil development. What will the financial impact of people who cause the gains of Africa? What percentage is coming from refurbishing? So I think up onto that soil.

And so I L Hoffman, what will the financial impact of suitable consequence, South Africa, what percent is coming from refurbishing.

I think up onto that trial.

Okay.

Speaker 3: Andrew, do you compete with Discord Group? Andrew, our politicians, but do not know the Discord Group?

Andrew do you compete with this client group.

Andrew I apologize, but I do know that I do not know that this client group.

And then Chris slogan.

Speaker 3: Well done on shrinking momentum sensor, you see a lot of strength in non-vehicle applications. What are the core equipment monitoring? Is this an A, E, S, C, S potentially? That's fundamentally quick. And, you know, we're doing a lot of...

Well done on sinking momentum since how are you seeing a lot of strength in non vehicle applications, while core equipment momentum is this an AUC Sirius potentially.

Fundamentally Chris.

We do a lot of.

Speaker 3: and there's a lot of demons from broadcasting throughout the project.

There's a lot of demand from our customers as well.

Speaker 3: IoT devices for equipment. So it depends what you call equipment, but we've got a lot of the yellow machine, a sport clip.

Iot devices for equipment so.

It depends what you call equipment, but we've got a lot of yellow machineries forklifts, we do we deal with a lot of machinery already so when we say subscribed, but some of it includes that type of equipment, that's being used in warehouses.

Speaker 3: you know we deal with a lot of machinery already so when we say subscribe some of it includes that type of equipment that's been used in warehouse

Speaker 3: And so, our onset date is clearly as long as it's RIT device and we can collect raw data and push that date into our cloud and our customers run their businesses, that's what we do.

And so amar.

That is clearly.

Long as at the RTD pause and rethink the late towards data and push that back in downtown and help our customers run their businesses. That's what we do.

Yeah.

Speaker 3: then a final course of questions from Secretary-General

Dan.

Our final question from <unk>.

Speaker 3: Cosica will be closing down altogether. We have got the technology so the company will remain open but we will not be buying and selling vehicles and only in danger.

Okay.

It causes a good word because in down altogether.

We have got the technologies. So the company will remain open, but we will not be buying and selling vehicles into earnings.

On the inventory.

Speaker 3: I want to thank everybody for asking this more questions that just came through. Easter.

I want to thank everybody for asking this.

One more question that just came through.

Eastern Georgia <unk>.

Speaker 3: Aqua has been stable for quite some time, given all the inflation around the world, what is the reason you haven't increased prices? Eastern, our Aqua today is the same that it was.

<unk> has been stable for quite some time given all the inflation around the world. What is the reason you haven't increased prices.

Easter week.

<unk> today is the same that it was.

Speaker 3: years ago and we've got great operating profit margins, irritable margins, great close profit margins, we continue to grow our customer base and quite frankly the way we've always been in inflation is just through economies of scale and as we feel these expenses clearly we feel them over the years and but we've always been able to be done through economies of scale.

15 years ago, and we've got great operating profit margins EBITDA margins, great gross profit margins we can.

Group to grow our customer base and quite frankly, the way, we always speak any inflation just to.

Economies of scale and as we feel these expenses clearly we feel it killed him over the years and we've always been able to be done to economies of scope.

Isaias Calisto: Kozuka will be closing down altogether. We have got the technology, so the company will remain open, but we will not be buying and selling vehicles and only in danger. I want to thank everybody for asking this more question that just came through. Isaias Calisto, Joe Grip, Aqua has been stable for quite some time.

Speaker 3: I want to thank everybody for joining us today and look forward to talking to you again in the next time. Okay, bye-bye.

And I want to thank everybody for joining us today, and we look forward to talking to you are getting <unk> kind of top line.

They're recording has stopped.

Isaias Calisto: Even all the inflation around the world, what is the reason you haven't increased prices? Isaias Calisto, our Aqua today is the same that it was 15 years ago, and we've got great operating profit margins, Eleta margins, great close profit margins. We continue to grow our customer base, and quite frankly, the way we've always eaten inflation is just through economies of scale. And as we feel these expenses, clearly we feel them over the years, and we've always been able to be done through economies of scale.

Isaias Calisto: I want to thank everybody for joining us today, and look forward to talking to you again in the next time. Okay, bye bye.

Operator: The recording has stopped.

Okay.