Listings Information

Pre-Listing Statement

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Fact Sheet

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Investment Case

Cartrack has a well-established and experienced senior management team led by Zak Calisto, Group Global CEO.

Most members of the management team have in excess of 10 years’ experience in the Telematics industry with each of the Executive Directors having in excess of 17 years’ individual experience. The senior management team is equipped with specialist operational experience, deep industry knowledge and a high level of technical expertise. Cartrack has a flat management structure thereby facilitating quick decision-making and shortened response times.

Proven track record of profitability and strong financial metrics

Cartrack has a proven track record since inception. This is demonstrated by Cartrack having achieved an average compound annual growth rate in revenue and net profit after tax for the period 2012 to 2015 of 23.5% and 23% respectively. Revenue is generated predominantly through annuity income from a diverse client base with a very low concentration level from any single client – 0.5% of revenue is generated from our largest client.

Cartrack is a leader in the industry in terms of gross profit, EBITDA and PBT margins, being 79.3%, 43.9% and 35.9% respectively.

Cartrack believes that its strong margins provide the Company with flexibility and resilience for durable revenue growth should the competitive pricing scenario become more aggressive.

History of strong cash flow generation and cash conversion with low financial leverage and strong dividends

Cartrack’s margins, coupled with low capital expenditure requirements, ensures high levels of cash conversion which has consistently been approximately 80% over the last two-year period. The strong cash flow generation and conversion, positions Cartrack for strong, sustainable growth with a healthy dividend policy.

Cartrack’s capital discipline is demonstrated by its working capital efficiency, which is effectively managed through its receivables that are historically, on average, lower than one month of turnover for the Group.

Furthermore, Cartrack does not have any material third party debt on its balance sheet providing it with the ability to leverage opportunities that may arise.

Platform for growth

Cartrack has well established businesses, both locally and internationally, and a growing footprint in selected African, Asian and European countries. The Company is well-positioned to take advantage of the vastly underdeveloped SaaS market in these territories and to enter new high growth markets.

Pivotal to Cartrack’s expansion strategy is a well-defined and tested expansion model with low initial set-up costs and a hands-on approach from management.

In the four-year period ended February 2015, the Cartrack subscriber base has seen a 105% increase. This growth comprises of a 196% increase in Fleet Management subscribers and a 35% increase in Stolen Vehicle Recovery subscribers. Off the back of this growth, as at February 2015, Fleet Management accounts for more than 50% of Cartrack’s subscriber base.

Favourable industry dynamics

Telematics service and product demand is a direct by-product of the size of the global vehicle fleets (including both commercial and passenger vehicles). With the size of the global vehicle fleet currently estimated at 1.1 billion vehicles and forecasted to grow to 2.3 billion vehicles by the year 2035, Cartrack is ideally positioned in a burgeoning industry.

The uptake in SaaS is forecast to be even more pronounced with the global commercial telematic subscriptions in 2019 set to treble from current levels.

The Fleet Management industry is mindful of the need to reduce costs, enhance efficiencies and margins and improve driver behaviour and road safety. Actionable data intelligence is rapidly evolving as a result of the ease of accessibility and the market demand is expected to rapidly increase.

Constantly adapting to cater to these trends, Cartrack’s proven research and development team continuously develops innovative software to meet management’s objectives of expanding through territorial growth, increased market share and service diversification.

In high crime rate countries, our Stolen Vehicle Recovery services and sophisticated Insurance Telematics services has proven to be indispensable and extremely effective in combating vehicle theft, thereby providing huge savings to the insurance industry and our clients.

Competitive strengths

Cartrack is uniquely positioned through its:

Scalable approach

Cartrack’s success is attributable to its innovative and integrated approach in the provision of Fleet Management, Stolen Vehicle Recovery and Insurance Telematics services. This is achieved through a strong technology platform and innovation through Cartrack’s in-house research and development department.

Cartrack has positioned itself to cater for the mainstream market and does not intend to position itself in low volume niche markets. This approach has allowed Cartrack to achieve economies of scale across its business.

Infrastructure requirements are minimised by utilising secure cloud-based computing services which are managed centrally by a team of technology specialists.

Audited recovery success rate and warranty

Cartrack boasts an audited Stolen Vehicle Recovery success rate of 94% (2016).

Focus and investment in technology

A key pillar underpinning Cartrack’s performance is the dedicated technical team that is focused on enhancing software offerings through continuous innovation, thereby ensuring adaptability and rapid deployment globally.

International footprint and expansion provides increasing economies of scale

Cartrack has an international business footprint with operations in Africa, Asia and Europe. Geographic diversification and expansion provides Cartrack with the ability to benefit from growth and income diversification.