Karooooo Ltd (KARO) 2024 Q2 法說會逐字稿

Hello, and welcome to Karooooo's Financial Year 2024 Q2 Earnings Call. On behalf of Karooooo, we'd like to thank you for joining us today. I'm Carmen, the group's Chief Strategy and Marketing Officer; and together with Hoe Shin, 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.

您好，歡迎參加 Karooooo 的 2024 財年第二季財報電話會議。我們謹代表 Karooooo 感謝您今天加入我們。我是卡門，該集團的首席策略和行銷長；我們將與我們的集團財務長 Hoe Shin 一起向您介紹我們強大的業務更新和財務狀況。建議所有投資者仔細閱讀免責聲明。

We will be reviewing all 3 of Karooooo's business units in today's webinar, namely Cartrack, Carzuka, and Karooooo logistics. Karooooo 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. Despite the varying macro 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, 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 integrate with their existing tools, such as fuel card providers and ERPs to further curate insights that suit their needs. 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 nonoperational teams together and helps companies remain compliant, competitive in their industries and most importantly, forward thinking.

我們將在今天的網路研討會上回顧 Karooooo 的所有 3 個業務部門，即 Cartrack、Carzuka 和 Karooooo Logistics。 Karooooo 仍然堅信我們的使命是成為領先的營運雲，我們看到我們如何透過我們的平台幫助為營運業務制定未來的道路。業界領先的客戶向我們諮詢如何改善他們的營運並應對日常挑戰，而我們超越互聯車輛和設備的思考能力對於提供將整個營運連接到一個地方以實現真正的雲端至關重要。儘管我們遇到了不同的宏觀環境；數位化、ESG 和合規性仍然是我們平台需求的強勁驅動力。我們的平台為客戶提供了所需的靈活性，讓他們可以按照自己的節奏並以對他們有意義的方式實現營運數位化，無論是幫助工人和司機透過行動應用程式有效完成工作流程的數位形式，還是能夠帶來成功的指導解決方案以及我們的平台提供問責制、風險管理工具，可實現快速解決方案和完整的審計追蹤、自動碳排放報告和進度追蹤或優化營運的詳細生產力報告，我們的平台適合成功的營運。此外，客戶還可以與加油卡提供者和 ERP 等現有工具集成，以進一步提供適合其需求的見解。透過與客戶合作，了解他們的營運情況並幫助他們應對挑戰，我們獲得了深厚的內部知識，可以繼續為我們的平台添加創新功能，從而進一步增加客戶獲得的價值以及我們在優化他們的營運方面所發揮的重要性。我們的平台將營運和非營運團隊聚集在一起，幫助公司保持合規性、在產業中的競爭力，最重要的是保持前瞻性思維。

To illustrate how our platform impacts the customers' 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 customers' decision to buy, offering competitive rates was critical to their operation. After 10 days of implementing our delivery management tool, our customers saw returns at large. With our easy-to-use solution that optimizes all jobs across drivers and provides optimal roots as well as a practical mobile app for drivers to receive everything they need to excel at their job, our customers successfully saved 4 liters 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 3 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 costs saved 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 highlight Karooooo'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. 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 half a second of screen time is actually 5 or [harness yawn] 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. 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. AI cameras allow for a preventative and proactive approach to safety.

為了說明我們的平台如何影響客戶的運營，我們可以研究一下現有客戶。一家自己送貨的大型家具製造商需要一種方法來減輕管理負擔，同時改善營運。由於送貨費用往往會影響客戶的購買決定，因此提供有競爭力的價格對於他們的營運至關重要。在實施我們的交付管理工具 10 天后，我們的客戶看到了大量退貨。憑藉我們易於使用的解決方案，優化了駕​​駛員的所有工作並提供最佳的根，以及實用的移動應用程序，讓駕駛員能夠獲得出色完成工作所需的一切，我們的客戶每天每輛車成功節省了4 升柴油。透過這項減排，他們有望超越永續發展目標，並將每輛車每年的碳排放量減少 2,800 公斤以上。我們的解決方案的投資回收期不到 3 天，投資回報率超過 700%，這純粹是考慮節省燃料成本。如果我們將在調度和管理司機以及與客戶溝通和透過電子交貨證明在交貨後收款方面節省的人力成本考慮在內，投資回報率將進一步提高。這突顯了 Karooooo 強大的價值主張以及我們的雲端平台在簡化營運、降低環境影響以及幫助企業在更強大和更具競爭力的商業環境中蓬勃發展的影響。同樣，伸手拿手機也已成為社會的第二天性。許多駕駛員沒有意識到他們的行為以及這些行為對其安全造成的風險。感覺上半秒的螢幕時間實際上是 5 秒或[哈欠]實際上是在方向盤上睡著的第一個跡象。除了遙測偵測到的惡劣駕駛行為之外，人工智慧攝影機還為管理人員和駕駛員克服高風險駕駛行為提供了新的維度。事實證明，即時聲音警報對於駕駛員能夠即時糾正其行為以避免碰撞和事故至關重要，同時透過全面了解以前未檢測到的事件，管理人員現在可以製定有效的培訓計劃並監控駕駛員的進度打造安全第一的工作環境。人工智慧攝影機可以採取預防性和主動的安全方法。

A customer that transports fuel has seen a 46% decrease in high-risk driver events detected by our AI after 3 calendar months of implementation. These events include fatigue, mobile phone usage, other distracted driving and tailgating. An accident with the vehicle carrying such sensitive cargo, is not only detrimental to driver's lives, but also can cause vast negative public relations that can have long-lasting negative effects on our business. Avoiding these high-risk events reduces accidents and implementing this technique 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. 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 the benefits and success of the 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.

實施 3 個日曆月後，一家運輸燃料的客戶發現我們的 AI 偵測到的高風險駕駛員事件減少了 46%。這些事件包括疲勞、使用手機、其他分心駕駛和尾隨。運載此類敏感貨物的車輛發生事故不僅會危及駕駛員的生命，還會造成巨大的負面公共關係，從而對我們的業務產生長期的負面影響。避免這些高風險事件可以減少事故，並且實施該技術提高了客戶在提供強大服務方面的聲譽，從而促進了業務成長。提高安全性的好處是深遠的。這不僅可以帶來更安全的社區和更好的工作環境，而且可以透過減少事故維修、維護費用和保險費來大幅降低成本。司機對公司更忠誠，因為他們感受到了投資的成果，而最終客戶對我們的客戶超越期望的能力更有信心。我們鼓社區。

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. 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 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. 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. 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 frills and more action. It is not easy to take ownership of work. But for our entrepreneurial and customer-centric teams, this is a key result of the innovation and creativity they continuously demonstrate.

我們跨行業的強勁客戶成長證明了我們成熟的業務模式、競爭優勢和強大的財務狀況，而且我們仍然認為不存在客戶或行業集中風險。憑藉十多年來對營運和客戶工作方式的深入了解，我們能夠確定推動業務價值的因素，並將人工智慧和機器學習融入我們的平台以增強我們的解決方案。從事故和燃油詐欺檢測到行業洞察和基準，我們的客戶正在從我們龐大的數據規模和網路效應中獲益，我們將不斷增強我們的平台，以進一步增加這些優勢。我們的進步與我們的精神和長期策略保持一致，為客戶的日常營運帶來無與倫比的價值。這裡有充足的成長空間，我們的團隊也有動力去實現它。廣大投資者群體繼續就我們的文化和團隊提出許多問題。我們知道，我們的經營方式絕非易事，我們相信我們的文化使我們能夠實現難以複製的關鍵市場差異化。我們公開透明，我們注重執行，而不是政治。我們以解決方案為導向的思維方式不斷致力於更好地解決客戶痛點。我們吸引不迴避挑戰、不害怕嘗試新事物的頂尖人才。人們相信努力工作、少一點虛飾、多一點行動。掌控工作並不容易。但對於我們的創業團隊和以客戶為中心的團隊來說，這是他們不斷展現創新和創造力的關鍵成果。

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. Not only does it 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 emphasize with the challenges faced by our diverse customers to solve them. We have a loyal team with a 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. 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 the team that has a long-term mindset that is designed to win. I will now hand over to Hoe Shin, who will take us through our financial performance.

與大多數事情一樣，談話很容易，但我們的團隊以身作則。我們的團隊成員從內場技術人員到關鍵決策者，都在努力工作。 從分析師到領先的國家經理。它不僅向我們的團隊展示了他們在職業生涯中可以獲得的進步和回報，而且還創建了一支具有多樣化經驗、技能和知識的團隊，能夠強調解決我們不同客戶面臨的挑戰。我們擁有一支忠誠的團隊，對業務和行業有深入的了解，可以建立可釋放營運業務潛力的可擴展工具。我們的文化並不適合所有人，但符合我們 DNA 的人足智多謀、獨創性，並且擁有高效解決複雜問題的強烈願望和能力。他們協作並結合來自不同行業和地區的知識，以快速有效的方式提供易於使用的解決方案。我們的員工因客戶的成功而受到激勵，這使我們處於與具有長期獲勝心態的團隊合作的特權地位。現在我將把工作交給 Hoe Shin，他將向我們介紹我們的財務表現。

Thank you, Carmen. I will now talk to Karooooo's financial performance for quarter 2 FY '24. Please note that all comparisons are against quarter 2 FY '23, unless otherwise stated. Our quarter 2 performance has gained momentum building from our solid start of the year and demonstrating growth across various financial metrics. As expected, after substantial investment for future growth in quarter 2, Karooooo's total subscription revenue increased by 17% to ZAR 860 million. Operating profit increased by 13% to ZAR 247 million and earnings per share increased 14% to ZAR 5.61. Our profitable SaaS business model continue to bolster our cash flow generation ability.

謝謝你，卡門。我現在將談談 Karooooo 2024 財年第 2 季的財務表現。請注意，除非另有說明，所有比較均針對 2023 財年第 2 季。我們第二季的業績從年初的穩健開局中獲得了動力，並在各種財務指標上展現了成長。正如預期的那樣，在第二季度為未來成長進行大量投資後，Karooooo 的總訂閱收入增長了 17%，達到 8.6 億南非蘭特。營業利潤成長 13%，達到 2.47 億南非蘭特，每股盈餘成長 14%，達到 5.61 南非蘭特。我們的獲利 SaaS 業務模式持續增強我們的現金流量產生能力。

Net cash from operating activity increased by 26% to ZAR 304 million. This healthy cash generation will continue to support our future cash outflow required for investment and future growth. All 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 ability. After paying a dividend of USD 26.3 million and investing ZAR 87 million in the development of the South African Central office, our net cash on hand stood at ZAR 651 million. That does then improving to 29 days, alongside with prudent provisioning to weather off strong economic headwinds in some of the markets we are operating. We have strong unit economics, robust operating margins and leveraged balance sheet and a strong cash conversion. We remain confident that our track record of success, especially our ability to generate healthy cash flow is sustainable.

經營活動產生的現金淨額成長 26%，達到 3.04 億南非蘭特。這種健康的現金產生將繼續支持我們未來投資和成長所需的現金流出。隨著我們策略投資的效益開始顯現，所有細分市場都繼續受到強勁的關注。我們一致的業績延續了我們在規模、獲利能力和現金產生能力方面的成長記錄。支付股息2630萬美元並投資8700萬蘭特用於南非中央辦事處的開發後，我們手頭現金淨額為6.51億蘭特。然後，這一期限確實改善到了 29 天，同時也採取了審慎的撥備措施，以應對我們正在運營的一些市場中強勁的經濟逆風。我們擁有強勁的單位經濟效益、強勁的營業利潤率、槓桿資產負債表、強勁的現金轉換能力。我們仍然相信我們的成功記錄，特別是我們產生健康現金流的能力是可持續的。

Our earnings per share increased by 14% to ZAR 5.61, and the increase is the result of positive revenue growth and improved profitability despite our prudent strategic investment for growth.

我們的每股盈餘成長了 14%，達到 5.61 南非蘭特，這一成長是由於儘管我們對成長進行了審慎的策略投資，但收入的正成長和獲利能力的提高。

We will now focus on Cartrack, the underlying assets to Karooooo's success. Cartrack 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 ZAR 858 million, while operating profit stood at ZAR 252 million.

我們現在將專注於 Cartrack，它是 Karooooo 成功的基礎資產。 Cartrack 繼續證明其在不同宏觀經濟條件下擴展的能力，並始終打破 40 的規則。本季度，訂閱收入成長 17%，達到 8.58 億南非蘭特，營業利潤為 2.52 億南非蘭特。

Our solid start in quarter 1 continued as we gained momentum in quarter 2 with a record net subscriber additions of over 75,000 in this quarter. 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. Cartrack continue to build on a solid track record of growing at scale and an experienced strong customer acquisition in this quarter. Cartrack's total subscription revenue grew 17% in to ZAR 858 million and represent 97% of total revenue, which is in line with our SaaS business model. Total revenue grew 17% to ZAR 884 million. Our SaaS ARR grew 17% to ZAR 3,475 million. Cartrack's operating profit grew 13% to ZAR 252 million and adjusted EBITDA grew 9% to ZAR 417 million.

我們在第一季繼續保持良好的開局，並在第二季度取得勢頭，本季淨用戶新增量創紀錄地超過 75,000 人。這在很大程度上得到了小型到大型企業不斷增長的需求的支持，強調了增強合規職能和數位化業務轉型以提高效率和競爭力的必要性。 Cartrack 在本季持續建立在規模成長和經驗豐富的強大客戶獲取方面的良好記錄。 Cartrack 的總訂閱收入成長了 17%，達到 8.58 億南非蘭特，佔總營收的 97%，這與我們的 SaaS 業務模式相符。總營收成長 17%，達到 8.84 億南非蘭特。我們的 SaaS ARR 成長了 17%，達到 34.75 億南非蘭特。 Cartrack 的營業利潤成長 13%，達到 2.52 億南非蘭特，調整後 EBITDA 成長 9%，達到 4.17 億南非蘭特。

Over the years, Cartrack has maintained a steady ARPU and average upfront cost of acquiring a subscriber. ARPU for the quarter was ZAR 159. Cartrack's average lifetime revenue per subscriber in this quarter stood at ZAR 9,556. The average upfront cost of adding a subscriber to our cloud in this quarter was ZAR 2,293. These costs mainly relates to sales commission and telematic device, which are capitalized and sales and marketing expense that are expensed off. The headroom derived from the average lifetime revenue per subscriber after subtracting the average upfront cost of adding a subscriber was ZAR 7,263 per subscriber. From the ZAR 7,263, we incurred the cost to service a subscriber over the contract life cycle of [60] months. The cost to service a subscriber decrease as we grow our subscriber base. Our unit economics has been steady allowing us strong operating profits. Cartrack continued to grow its subscriber base and ARR to expand in all geographies. The South African economy remains under pressure. As a result of continuing strain on the National Power Grid Group. Despite the challenging trading conditions, our subscriber grew by 14%. In Asia, the Middle East and U.S. subscriber grew by 26% as the traction in Southeast Asia has been encouraging. Southeast Asia remained as the second largest contributor to the group's revenue, and we believe our value proposition 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.

多年來，Cartrack 一直保持穩定的 ARPU 和獲取訂戶的平均前期成本。本季的 ARPU 為 159 南非蘭特。本季為我們的雲端添加訂閱者的平均前期成本為 2,293 南非蘭特。這些成本主要與資本化的銷售佣金和遠端資訊處理設備以及費用化的銷售和行銷費用有關。每個訂戶的平均終身收入減去增加訂戶的平均前期成本後得出的淨空為每個訂戶 7,263 南非蘭特。從 7,263 南非蘭特開始，我們在 [60] 個月的合約生命週期內支付了為訂戶提供服務的成本。隨著我們訂戶基數的擴大，為訂戶提供服務的成本將會降低。我們的單位經濟效益一直穩定，使我們擁有強勁的營業利潤。 Cartrack 的用戶群和 ARR 持續成長，在所有地區不斷擴張。南非經濟仍面臨壓力。 由於國家電網集團的持續緊張。儘管交易環境充滿挑戰，我們的訂閱用戶仍成長了 14%。在亞洲，由於東南亞的吸引力令人鼓舞，中東和美國的用戶成長了 26%。東南亞仍然是集團收入的第二大貢獻者，我們相信我們的價值主張將繼續在該地區受到青睞，並提供最引人注目的成長機會，並在中長期為集團帶來持續成長的收入。

Europe saw a healthy growth of 14% and remain a region we are focusing our resources on. 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. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region.

歐洲實現了 14% 的健康成長，仍然是我們重點關注的地區。透過最近與領先的原始設備製造商的合作，我們準備利用我們廣泛的產品來進一步開發互聯車輛生態系統，並期望這種合作夥伴關係能夠在中期為我們的業績做出貢獻。此外，該地區對我們專有合規技術的需求令人鼓舞。

Africa, others maintains its growth with 8% increase in subscribers. At the end of quarter 2, our ARR increased 17% to ZAR 3,475 million. This is at a good trending as we continue to see the momentum of growth in our subscriber and ARR. Cartrack continue to have robust operating margins and our trends are in line with the long-term financial goals set upon our listing in 2021. In this quarter, our subscription revenue gross profit margin stood at 72%, which is consistent with our expectations. Research and development expense as a percentage of subscription revenue are 6% as we focus on driving substantial benefit from our R&D capital allocation. Our planned investment in improving and reaching and expanding our operation cloud and internal management system is to enhance our value proposition to our customer. Sales and marketing expense as a percentage of subscription revenue increased to 14%. We believe the strategic investment for customer acquisition position us well for continued growth, and we expect to see future benefit from this investment. General and admin expenses as a percentage of subscription revenue are at 22%. This planned increase reflects management's commitment to build a strong support infrastructure to meet our future growth plan. Operating profit as a percentage of subscription revenue are 29% and 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 2.

非洲和其他地區的用戶數量增加了 8%，保持成長。截至第二季末，我們的 ARR 成長了 17%，達到 34.75 億南非蘭特。這是一個良好的趨勢，因為我們繼續看到我們的用戶和 ARR 的成長勢頭。 Cartrack 持續維持強勁的營業利潤率，我們的趨勢與 2021 年上市時設定的長期財務目標一致。研發費用佔訂閱收入的百分比為 6%，因為我們專注於從研發資本配置中獲得實質收益。我們計劃投資改進、實現和擴展我們的營運雲端和內部管理系統，以增強我們對客戶的價值主張。銷售和行銷費用佔訂閱收入的百分比增加至 14%。我們相信，用於客戶獲取的策略性投資為我們的持續成長奠定了良好的基礎，我們預計未來將從這項投資中受益。一般費用和管理費用佔訂閱收入的百分比為 22%。這項計劃的成長反映了管理層對建立強大的支援基礎設施以滿足我們未來成長計劃的承諾。營業利潤佔訂閱收入的百分比為 29%，調整後的 EBITDA 佔訂閱收入的百分比為 49%。我們有一個良好的開端，我們對第二季度的進展感到滿意。

Our guidance for Cartrack's outlook remain unchanged with number of subscribers between 1.9 million to 2.1 million. Cartrack subscription revenue between ZAR 3.4 million to ZAR 3.6 million and Cartrack's operating profit margin between 28% to 31%.

我們對 Cartrack 前景的指引保持不變，訂戶數量在 190 萬至 210 萬之間。 Cartrack 訂閱收入介於 340 萬至 360 萬南非蘭特之間，Cartrack 的營業利潤率在 28% 至 31% 之間。

Carzuka delivered ZAR 85 million in revenue in this quarter and an operating loss of ZAR 13 million. Subsequent to the quarter 2 end, despite the growth experienced by Carzuka in South Africa, a decision was made to cease buying secondhand vehicles in South Africa. This decision follows considerable interaction with motor dealership over the last 12 months. Over the years, Cartrack has been partnering with dealership as part of its customer acquisition strategy to acquire customers through the introduction of this dealership. However, some dealership has perceived the Carzuka business interest to be conflicting with their business interest in buying vehicles from customers. We maintain that the Carzuka business model is robust, but we do not want to reach the long-standing strategic relationship that Cartrack has forged with motor dealership across South Africa.

Carzuka 本季實現營收 8,500 萬南非蘭特，營運虧損 1,300 萬南非蘭特。第二季末後，儘管 Carzuka 在南非實現了成長，但仍決定停止在南非購買二手車。這項決定是在過去 12 個月中與汽車經銷商進行了大量互動後做出的。多年來，Cartrack 一直與經銷商合作，作為其客戶獲取策略的一部分，透過引入該經銷商來獲取客戶。然而，一些經銷商認為 Carzuka 的商業利益與他們從客戶那裡購買車輛的商業利益相衝突。我們認為 Carzuka 的商業模式很穩健，但我們不想建立 Cartrack 與南非各地汽車經銷商建立的長期策略關係。

Karooooo Logistics delivered significant growth, generating ZAR 72 million in revenue and an encouraging operating profit of ZAR 8 million in this quarter. It's focus on delivery as a service through selected third-party crop source drivers and logistic companies have been highly scalable and is delivering substantial growth. While we continue to integrate into Cartrack's platform to expand its customer base, the Karooooo logistics 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 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. Zak Calisto.

Karooooo Logistics 實現了顯著成長，本季實現了 7,200 萬南非蘭特的收入和令人鼓舞的 800 萬南非蘭特的營業利潤。它專注於透過選定的第三方農作物來源驅動程式提供交付服務，而物流公司具有高度可擴展性，並且正在實現大幅成長。在我們繼續整合 Cartrack 平台以擴大其客戶群的同時，Karooooo 物流堆疊預計將為該集團帶來長期收入來源。我們相信，我們在這一領域的策略投資的好處已經開始顯現。我要感謝大家今天加入我們，現在我們將與我們的集團執行長兼創始人扎克·卡利斯托先生進行問答。

Hi. good morning, good afternoon, good evening, depending where you are. Thanks very much for joining the presentation. I'll open up to questions. And the first question comes from (inaudible) When will Cartrack start monetizing Data-as-a-Service, what percentage of Cartrack's annual revenues will come from Data-as-a-Service in 3 years' time?

你好。早安，下午好，晚上好，取決於你在哪裡。非常感謝您參加示範。我將開放提問。第一個問題來自（聽不清楚）Cartrack 何時開始將數據即服務貨幣化，3 年後 Cartrack 年收入的百分比將來自數據即服務？

[Miles,] sometimes 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 through the IoT devices into our cloud. We obviously then work the data and keep intelligent business reports to our customers.

[邁爾斯]有時這些話有點行話。因此，數據即服務是我們目前所做的事情，也是我所理解的方式。我們基本上獲取原始數據，透過物聯網設備將數據推送到我們的雲端。顯然，我們隨後會處理數據並向客戶提供智慧業務報告。

So in our opinion, a great portion of our subscription revenue model is a really 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.

因此，我們認為，我們的訂閱收入模式的很大一部分是真正的數據即服務，我們顯然將其作為軟體即服務提供。所以我想要嘛我不理解你的問題，要嘛這就是我的答案。

The next question comes from Sebastian (inaudible). I'm not certain if I'm pronouncing the surname correctly. So apologies, Sebastian if that's wrong. Can you expand further on the decision should -- shut down Carzuka in South Africa? Will there be any costs associated to close in this division.

下一個問題來自塞巴斯蒂安（聽不清楚）。我不確定我的姓氏發音是否正確。如果這是錯誤的，那麼抱歉，塞巴斯蒂安。您能否進一步闡述關閉南非 Carzuka 的決定？ 關閉該部門是否會產生任何相關費用？

So basically, we have one lease that it comes to closure during this financial year. So there is no real material costs we've got in Cartrack at this point in time. About 500 vacancies open and the majority of the Carzuka staff, we will transition into Cartrack. So there is no major costs. Clearly, these costs could have a slight impact on Cartrack initially, but that has been planned, and it will be phased. So I think by the time we get to FY '25, these costs won't be wearing us down. So I think the reality is we've been loosing losses -- operating losses of approximately ZAR 50 million a year. And we see this loss disappearing and it will reflect positively in our earnings next year although I do believe that had we spent enough effort in the last 12 months to really put our shoulders behind Carzuka would have been much further. But we've been in long discussions with our partners, which is basically the motor dealers, 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 with the motor dealers dealers healthy.

基本上，我們有一項租約將在本財政年度結束。因此，目前我們在 Cartrack 中還沒有真正的材料成本。大約有 500 個職缺，Carzuka 的大部分員工將過渡到 Cartrack。所以沒有什麼大的成本。顯然，這些成本最初可能會對 Cartrack 產生輕微影響，但這是已經計劃好的，並且將分階段進行。因此，我認為到 25 財年時，這些成本不會讓我們疲憊不堪。所以我認為現實是我們一直在虧損——每年的營運虧損約為 5,000 萬南非蘭特。我們看到這種損失正在消失，它將積極地反映在我們明年的收益中，儘管我確實相信，如果我們在過去12 個月中付出足夠的努力，真正支持Carzuka，我們的業績將會走得更遠。但我們已經與我們的合作夥伴（基本上是汽車經銷商）進行了長時間的討論，其中一些人說我們與他們有利益衝突。我們決定挽救這些長期的關係，並繼續保持我們與汽車經銷商的健康關係。

The next question comes from [Matthew from Confluence Impact Fund.]

下一個問題來自 [Confluence Impact Fund 的 Matthew]。

Thank you for the presentation, congratulations on presenting these results. Despite the growth experienced by consequence [decision of mostly seized by] What does this mean for -- because would you be buying selling vehicles (inaudible) on what different source are they (inaudible)?

感謝您的介紹，恭喜您介紹這些結果。儘管結果經歷了增長[大多數人的決定]這意味著什麼——因為您會透過什麼不同的來源（聽不清楚）購買銷售車輛（聽不清楚）？

So we have got the platform. We have developed a software for Carzuka. We will still utilize the software for the benefit of our dealers. So currently, quite a lot of our dealers advertise their secondhand vehicles on the Carzuka platform. Within -- a system within selling the pre-owned vehicles. And we don't see this in any way conflicting, so we will still be able to anyone that wants to advertise on our platform. We're more than willing to do it, but we will not be taking inventory and buy and selling secondhand vehicles, but we will certainly allow our partners the dealerships to still get the benefit that they read until now.

這樣我們就有了平台。我們為 Carzuka 開發了一款軟體。我們仍然會為了經銷商的利益而使用該軟體。所以目前我們有相當多的經銷商在Carzuka平台上宣傳他們的二手車。內部－銷售二手車的系統。我們認為這沒有任何衝突，因此我們仍然可以為任何想要在我們的平台上做廣告的人提供服務。我們非常願意這樣做，但我們不會盤點庫存和買賣二手車，但我們肯定會讓我們的合作夥伴經銷商仍然獲得他們到目前為止所看到的好處。

[Alex Sklar.] Carzuka operating margin is up nicely this quarter. Can you talk about the operating margin expectation (inaudible) before given you are absorbing Carzuka's employees?

[Alex Sklar。在吸收 Carzuka 的員工之前，您能否談談營業利潤率預期（聽不清楚）？

It would certainly have a negative impact on Cartrack, but it's really a planned impact that we would have done anyway because we need to employ the staff. But I don't believe this impact is material. The staff moving over to Cartrack is strategic. We know the people. So we already know their strengths and weaknesses and where to put them and into which departments. So it's all really just helping us fall about 500 vacancies that we currently have at the moment.

這肯定會對 Cartrack 產生負面影響，但這確實是我們計劃中的影響，無論如何我們都會這樣做，因為我們需要雇用員工。但我不認為這種影響是實質的。員工轉移到 Cartrack 具有戰略意義。我們了解這裡的人。所以我們已經知道他們的優勢和劣勢，以及將他們放在哪裡以及哪個部門。所以這一切實際上只是幫助我們減少目前大約 500 個職缺。

Matthew from William Blair. Has the net subscriber mainly in the second quarter continuing into the third quarter?

威廉布萊爾的馬修。淨訂戶主要集中在第二季度，是否會持續到第三季？

Matthew, yes, it has. So in the first 40 days of Q3, our net and 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 the Q3, given that we're halfway through Q3.

馬修，是的，確實如此。因此，在第三季的前 40 天，我們的淨用戶數和淨用戶增量實際上為 40,000 人。因此，我們預計第三季的淨訂閱人數可能會超過 80,000 名。鑑於第三季已經過半，這是我們對第三季的預期。

Another question from Matthew from William Blair. Can you provide an update on the OEM relationships, when could they start to contribute to subscriber additions?

威廉·布萊爾馬修提出的另一個問題。您能否提供有關 OEM 關係的最新信息，他們什麼時候可以開始為訂閱者的增加做出貢獻？

We have done a lot of integrations already with the European OEMs. We should be able to start seeing fruits from these relationships in FY '25.

我們已經與歐洲原始設備製造商進行了大量整合。我們應該能夠在 25 財年開始看到這些關係的成果。

Matthew from [Confluence.] Please, can you comment on the proposed merger between Mix Telematics and Powerfleet, which geographies do you overlap in?

來自 [Confluence] 的 Matthew。

I must say, Matthew, I'm not very family with Powefleet.

我必須說，馬修，我和鮑弗利特不太像一家人。

Mix, I'm relatively familiar with them. So, if my understanding is correct, Powerfleet is very much American-based. So I prefer not to comment because I don't really know. I haven't (inaudible) into this information. I don't know.

Mix，我對他們比較熟悉。所以，如果我的理解是正確的，Powerfleet 很大程度上是基於美國的。所以我不想發表評論，因為我真的不知道。我還沒有（聽不清楚）了解這些資訊。我不知道。

Do you focus on different customers or routes to market. If we compare ourselves to mix, I do not believe that we focus on different customers or different routes to market. What differentiates your offer from Mix and Powerfleet?

您是否關注不同的客戶或市場路線？如果我們將自己進行比較，我不相信我們會專注於不同的客戶或不同的市場路線。你們的產品與 Mix 和 Powerfleet 有何不同？

I think there's multiple vendors with our types of solutions. I think our route to market, although at a high level, it looks similar. But fundamentally, when you get into the detail, we're quite different. Mix operating about 100 geographies. We are only operating 23. We're a great believer that we need to have staff on the ground in all the countries. We do not distribute in countries where we don't have presence -- physical presence and I think that makes quite a big difference. And then, obviously, we're very much focused on owning the customer and that could also be a little bit of a difference between us and Mix potentially, but I'm speaking under correction.

我認為有多個供應商提供我們類型的解決方案。我認為我們的市場路線雖然在較高層面上看起來很相似。但從根本上來說，當你深入細節時，我們會發現我們完全不同。混合經營約 100 個地區。我們只經營 23 個。 我們堅信我們需要在所有國家派駐工作人員。我們不會在我們沒有實體存在的國家進行分銷，我認為這會帶來很大的不同。然後，顯然，我們非常專注於擁有客戶，這也可能是我們和 Mix 之間潛在的一點差異，但我正在糾正。

Next question from (inaudible). Cartrack's EBITDA margin has reached 47%, what have we reached the bottom at this level? Can you allow margin to trend below 47 marks?

下一個問題來自（聽不清楚）。 Cartrack的EBITDA利潤率已經達到47%，我們在這個水準上觸底的是什麼？您能允許保證金趨勢低於 47 標記嗎？

We've traditionally had our EBITDA margins between about 45% or 44% and about 52%. We believe that that will continue. It depends how much capital we've allocated into back office into sales, and it's a timing thing. We envisage that we will remain in these sort of margins for quite a few years to come.

傳統上，我們的 EBITDA 利潤率大約在 45% 或 44% 到 52% 之間。我們相信這種情況將會持續下去。這取決於我們在後台分配了多少資金用於銷售，這是一個時機問題。我們預計，在未來相當長的一段時間內，我們將保持在這樣的邊緣地位。

Secondly, in terms of South Africa subscriber base, at which level do you expect growth rates in subscribers to peak, given that 30% growth achieved in Q2?

其次，就南非用戶基礎而言，鑑於第二季實現了 30% 的成長，您預計用戶成長率將在哪個水準達到高峰？

In South Africa, we've got about 1.4 million vehicles on our cloud. We believe we can drive that to about 3 million vehicles. Obviously, we'll try and do that as quickly as possible. Currently, we're growing, we're starting to see better momentum in growth in Q2 compared to Q1, and Q3 we will continue with that momentum.

在南非，我們的雲上約有 140 萬輛汽車。我們相信我們可以將其數量推至約 300 萬輛。顯然，我們會盡力盡快做到這一點。目前，我們正在成長，與第一季相比，我們開始看到第二季的成長勢頭更好，第三季我們將繼續保持這種勢頭。

Thirdly, the plan is to integrate Carzuka software, what is the estimated impact introduction?

第三，計劃整合Carzuka軟體，預計引入的影響是什麼？

I think I've covered that.

我想我已經介紹過了。

Fourth question, where do you see Cartrack return on common equity peaking over the coming years?

第四個問題，您認為 Cartrack 的普通股報酬率未來幾年會在哪裡達到高峰？

Well, there's many ways of calculating that. So we've got quite a lot of cash. So if you give out the cash as a dividend, then obviously you'll be in a situation that your return on equity is spikes.

嗯，有很多計算方法。所以我們有很多現金。因此，如果您將現金作為股息發放，那麼顯然您將面臨股本回報率飆升的情況。

You're certainly making better returns for us than any other of your earnings in a form of dividends. At what phase of growth cycle of the business, would it make sense for you to [battle] with the dividend given that the naturally high cash flow version rate, especially investments in organic growth and peak.

與您以股息形式獲得的任何其他收入相比，您肯定為我們帶來了更好的回報。在業務成長週期的哪個階段，考慮到自然高的現金流版本率，特別是在有機成長和高峰期的投資，您與股息[鬥爭]是否有意義。

I'd 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, that's what we've been doing and we're generating quite a lot of the free cash flow. And at this point in time, we can't deploy as much cash as we actually generate (inaudible).

我寧願迴避這個問題，因為我們經營業務的方式非常務實。我們有足夠的現金來加速成長，我們打算在資產負債表上保持堅實的現金基礎，這就是我們一直在做的事情，我們正在產生大量的自由現金流。目前，我們無法部署實際產生的現金（聽不清楚）。

Next question from [Miles Free.]

[免費里程] 的下一個問題。

Why does (inaudible) Southeast Asia is the group's most compelling growth opportunity in the medium to long term? And when is it the TAM, as you have been Cartrack at a 500 OEMs in Europe.

為什麼（聽不清楚）東南亞是集團中長期最引人注目的成長機會？什麼時候是 TAM，因為您一直在歐洲 500 家 OEM 中使用 Cartrack。

Well, we certainly believe Southeast Asia is the largest. It certainly is. In terms of the economy growth Southeast Asia is probably one of the most fastest-growing economies in the world in the region. It's also a huge large addressable market. We've come in as outside as we're making good progress. We're starting to get good big momentum. And I think we've still got a very long way to go before we reach the full TAM.

嗯，我們當然相信東南亞是最大的。確實如此。就經濟成長而言，東南亞可能是該地區世界上成長最快的經濟體之一。這也是一個巨大的潛在市場。我們已經取得了良好的進展，所以我們已經進入了外部。我們開始獲得良好的動力。我認為，在達到完整的 TAM 之前，我們還有很長的路要走。

And I will answer the OEMs as well.

我也會回答 OEM 廠商的問題。

Is so that Cartrack have to double their number of subscribers every 4 years? Do you see this continue at this pace or faster pace?

Cartrack 是否必須每 4 年將訂戶數量增加一倍？您認為這種情況會繼續以這樣的速度還是更快的速度進行？

Currently, we're growing 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 star] , but we certainly are getting momentum. And our intention is to grow to more than double our subscriber base in less than 4 years. So it's just a question of us getting our momentum back, which you certainly aren't getting it post-COVID.

目前，我們的成長速度比那些年略慢。我認為，當新冠病毒到來時，以及新冠病毒發生一年後，它有點[限制了我們的明星]，但我們確實正在獲得動力。我們的目標是在不到 4 年的時間內將我們的用戶數量增加一倍以上。因此，問題只是我們能否恢復勢頭，在新冠疫情之後，我們肯定無法恢復這種勢頭。

Alexandra. Can you talk about the new (inaudible) of subscriber growth from June [3] through to September? Did you see improvements every month or was it fairly ratable? Any change in vehicles (inaudible) in terms of what you added this quarter.

亞歷珊卓.您能談談從 6 月 [3] 到 9 月的新（聽不清楚）用戶的成長情況嗎？您每個月都看到了進步，還是相當值得評價？就您本季新增的車輛而言，車輛有任何變化（聽不清楚）。

So our customer base in terms of our SMEs, large enterprise customers and consumers remains quite constant over the years. And then our growth has been quite -- it's been quite consistent on a daily basis. We really measure our growth on working days, Alex. So quite frankly, we've got very steady growth. We can see it. We measure that growth on a daily basis. And the more working days we have, the better we do, and we certainly are picking up momentum.

因此，我們的中小企業、大型企業客戶和消費者的客戶群多年來保持相當穩定。 然後我們的成長非常——每天都非常穩定。我們確實在工作日衡量我們的成長，亞歷克斯。坦白說，我們的成長非常穩定。我們可以看到它。我們每天都會衡量這種成長。我們的工作日越多，我們的工作就越好，而且我們的勢頭確實正在增強。

Adding to that, Alex, typically, our Q3 is normally our best quarter, given that there's less holidays in Q3.

除此之外，亞歷克斯，通常情況下，我們的第三季度通常是我們最好的季度，因為第三季度的假期較少。

(inaudible) what will the financial impact of ceasing Carzuka in South Africa? What percentage is coming from refurbishing.

（聽不清楚）停止 Carzuka 在南非會產生什麼財務影響？有多少百分比來自翻新。

So I think I've answered that too.

所以我想我也回答了這個問題。

Andrew. Do you compete to a [Discard] group.

安德魯.您是否參加[放棄]組？

Andrew, I apologize, but I do not know the Discard group.

安德魯，我很抱歉，但我不知道丟棄組。

And then Chris Logan. Well done on sinking momentum since already seeing a lot of strength in non-vehicle applications. What do they call equipment monitoring? Is this an [AE] as we say is potentially.

然後是克里斯·洛根。由於已經在非車輛應用中看到了很大的優勢，因此在下沉勢頭方面做得很好。他們所謂的設備監控是什麼？這是否是我們所說的潛在的[AE]？

Fundamentally, Chris, we're doing a lot of -- there's a lot of demand from our customers as well -- just IoT devices for equipment. So it depends what you call equipment, but we've got a lot of the yellow machinery, forklifts -- we deal with a lot of machinery already. So when we say subscribers, some of it includes that type of equipment that's been used in warehouses, and so my answer to that is clearly as long as it IoT device, and we can collect raw data and push that data into our cloud and help our customers run their businesses. That's what we do.

從根本上說，克里斯，我們正在做很多事情——我們的客戶也有很多需求——只是用於設備的物聯網設備。所以這取決於你所說的設備，但我們有很多黃色機械，堆高機——我們已經處理了很多機械。因此，當我們說訂閱者時，其中一些包括倉庫中使用的那種設備，所以我對此的回答顯然是只要它是物聯網設備，我們就可以收集原始數據並將該數據推送到我們的雲中並幫助我們的客戶經營他們的業務。這就是我們所做的。

Then a final question from (inaudible) Carzuka 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 -- owning inventory.

然後（聽不清楚）Carzuka 提出的最後一個問題將完全結束。我們已經掌握了技術。因此，公司將保持營業，但我們不會買賣車輛，而只會擁有庫存。

I want to thank everybody for asking -- there's one more question that just came through.

我要感謝大家的提問——剛剛又提出了一個問題。

(inaudible) [Georgia] , ARPU has been stable for quite some time. Given all the inflation around the world, what is the reason you haven't increased prices.

（聽不清楚）[格魯吉亞]，ARPU 已經穩定相當長一段時間了。考慮到世界各地的通貨膨脹，你們沒有提高價格的原因是什麼？

(inaudible) our ARPU today is the same that it was 15 years ago. And we've got great operating profit margins, EBITDA margins, great gross profit margins. We continue to grow our customer base. And quite frankly, the way we've always beaten inflation is just through economies of scale. And as we feel these expenses, clearly, we feel them over the years, but we've always been able to beat them through the economies of scale.

（聽不清楚）我們今天的 ARPU 與 15 年前相同。我們擁有很高的營業利潤率、EBITDA 利潤率和毛利率。我們不斷擴大我們的客戶群。坦白說，我們一直擊敗通貨膨脹的方法就是透過規模經濟。顯然，當我們感受到這些費用時，我們多年來一直感受到它們，但我們總是能夠透過規模經濟擊敗它們。

I want to thank everybody for joining us today and look forward to talking to you again in 3 months' time. Okay. Bye-bye

我要感謝大家今天加入我們，並期待 3 個月後再次與大家交談。好的。再見