Financial Data and Key Metrics Changes - In Q1 FY26, annual recurring revenue (ARR) increased 18% to 4,574 million ZAR and 24% to $254 million on a U.S. Dollar basis [5] - Total revenue for Q1 reached 1,277 million ZAR, an increase of 18%, with subscription revenue also increasing by 18% to 1,141 million ZAR [11][29] - Earnings per share rose 19% to 8.55 ZAR [15][34] - The company maintained a strong balance sheet with net cash and cash equivalents of 1,103 million ZAR [16] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew 19% to 1,138 million ZAR, with an operating profit margin of 30% [11][30] - Karoo Logistics generated delivery as a service revenue of 121 million ZAR, an increase of 20% [10][22] - The total subscriber base increased by 17% to approximately 2,400,000 [11][32] Market Data and Key Metrics Changes - South Africa's subscription revenue growth accelerated to 16%, contributing 70% of total subscription revenue [17] - Southeast Asia and the Middle East saw subscription revenue growth accelerate to 30%, with a subscriber base of approximately 290,000 [20] - European subscription revenue growth accelerated to 22%, now comprising 10% of total subscription revenue [21] Company Strategy and Development Direction - The company aims to strengthen its leadership position in South Africa while expanding its distribution footprint in Asia and Europe [23][24] - Capital allocation strategy prioritizes organic growth and innovation, with a disciplined approach to M&A [25][26] - The company is focused on increasing ARPU in South Africa and expanding its sales headcount by 70% by February 2026 [20][24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for both consumer and commercial customers in South Africa [41] - The company does not foresee significant impacts from U.S. tariffs on its Southeast Asia operations, attributing growth to local market engagement [41] - Management reaffirmed the FY26 growth outlook, emphasizing the importance of strategic investments in sales and marketing [36] Other Important Information - The company reported a healthy subscription gross margin of 74% and a customer retention rate of 95% [16] - Free cash flow generation resumed, benefiting from disciplined working capital management [34] - The company plans to return surplus capital to shareholders primarily through dividends [26] Q&A Session Summary Question: Subscriber growth trajectory in South Africa - Management noted strong traction in both commercial and consumer customer growth, expecting this to continue throughout the year [41] Question: Impact of U.S. tariffs on Southeast Asia subscriber growth - Management believes that local economic growth is driving adoption rather than U.S. tariffs [41] Question: Cross-selling initiatives and their impact on ARR growth - Management aims for a 6% increase in ARPU this year, with good progress noted in Q1 [42] Question: Expansion strategy in Southeast Asia versus Africa - Management indicated that Southeast Asia presents a larger market opportunity compared to Africa [44] Question: Mix between subscriber growth and cross-selling initiatives - Management reported a 2% uplift from cross-selling, with expectations for this to increase by Q4 [45] Question: Hiring capacity plans and their impact on subscription growth - Management expects a correlation between increased sales staff and subscriber growth, targeting a 28% increase in Asia [48] Question: Contract performance rollout in South Africa - Management highlighted significant progress with the contract tag, viewing it as a game changer [53] Question: Effective tax rate and its outlook - Management noted benefits from profitable entities that previously had tax losses [54]

Financial Data and Key Metrics Changes - The company's total subscription revenue increased by 16% to ZAR 1,086 million in Q4, and by 15% to ZAR 4,068 million for FY25 [37][38] - Operating profit rose by 30% to ZAR 385 million in Q4 and by 26% to ZAR 1,312 million for FY25 [38][39] - Adjusted earnings per share increased by 39% to ZAR 9.48 in Q4 and by 33% to ZAR 31.67 for FY25 [38][44] Business Line Data and Key Metrics Changes - Kartrak's subscription revenue grew by 16% to ZAR 1,084 million in Q4 and by 15% to ZAR 4,055 million for FY25 [39][40] - Karoo Logistics' revenue reached ZAR 420 million, an increase of 33% for FY25 [17][28] - Kartrak's operating profit margin was robust at 34% in Q4, while adjusted EBITDA margin was 48% [19][23] Market Data and Key Metrics Changes - South Africa's subscription revenue growth was 15% in Q4, while Southeast Asia's constant currency revenue growth accelerated to 31% [42][25] - Europe saw a 20% subscriber growth in Q4, with a 100 basis point quarter-on-quarter acceleration [27][28] - The company ended FY25 with over 1,700,000 subscribers in South Africa, representing 75% of the global subscriber base [24] Company Strategy and Development Direction - The company aims to expand its distribution footprint in Asia and Europe while enhancing customer engagement and capturing demand for video capabilities [34][49] - A focus on disciplined capital allocation and organic growth is emphasized, with plans to return surplus capital to shareholders when not reinvested for growth [35][49] - The launch of Car Track Tag is expected to enhance customer offerings and increase average revenue per user (ARPU) by approximately 10% by year-end [51][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute sales plans, citing strong momentum in the last six months and a normalization of hiring conditions post-COVID [58] - The outlook for FY26 includes expected subscription revenue growth between 16% to 21%, with operating profit margins projected between 26% to 31% [49] - The company remains optimistic about growth opportunities in all regions, particularly in Asia, which is viewed as having the highest growth potential [57] Other Important Information - The company generated significant free cash flow of ZAR 425 million in FY25, with a strong balance sheet and net cash position of ZAR 838 million [44][46] - The adjusted free cash flow decline in Q4 was attributed to strategic investments to support growth, not indicative of structural issues [45][46] - The company has a healthy subscription gross margin of 76% and a commercial retention rate of 95% [23] Q&A Session Summary Question: What is the reception of the Car Track Tag launch? - The product has been well received in South Africa, with substantial scale achieved and plans to expand to Asia next [52][53] Question: How will subscriber growth be driven in FY26? - The focus will be on enhancing customer offerings and increasing ARPU through existing customer sales [54][55] Question: What is the outlook for hiring and sales productivity? - The company plans to increase its sales force significantly, expecting improved productivity as new hires gain experience [56][62] Question: What is the strategy regarding net cash and dividends? - The company aims to allocate capital efficiently for growth, with dividends considered at the end of Q1 [60][61] Question: What is the view on share buybacks? - Share buybacks have been challenging due to low liquidity, and the focus will remain on other growth initiatives [61] Question: How does the company plan to achieve ARPU growth? - The expected ARPU growth is primarily driven by the adoption of new products like the camera and tag [59][62]

Financial Data and Key Metrics Changes - In Q4 FY25, total subscription revenue increased by 16% to ZAR 1,086 million, and on a U.S. dollar basis, it increased by 20% [37] - For FY25, total subscription revenue increased by 15% to ZAR 4,068 million, with a 19% increase on a U.S. dollar basis [38] - Adjusted earnings per share in Q4 increased by 39% to ZAR 9.48, while for FY25, it increased by 33% to ZAR 31.67 [38][44] - Operating profit in Q4 increased by 30% to ZAR 385 million, and for FY25, it increased by 26% to ZAR 1,312 million [38] Business Line Data and Key Metrics Changes - Kartrak generated ZAR 4,100 million in subscription revenue for FY25, a 15% increase or 19% on a U.S. dollar basis, with an operating profit margin of 31% [15] - Karoo Logistics' revenue reached ZAR 420 million, an increase of 33% or 37% on a U.S. dollar basis, with a 9% operating profit margin [16][27] - In Q4, Kartrak's subscription revenue increased by 16% to ZAR 1,084 million, comprising 98% of its total revenue [39] Market Data and Key Metrics Changes - South Africa represented 75% of the global subscriber base, with over 1,700,000 subscribers [23] - Southeast Asia and the Middle East accounted for 12% of total subscribers, with Q4 constant currency subscription revenue growth reaching 31% [24] - Europe had over 200,000 subscribers, with a 20% growth rate in Q4 [25] Company Strategy and Development Direction - The company aims to expand its distribution footprint in Asia and Europe while enhancing customer engagement and capturing demand for video capabilities [33] - A focus on disciplined capital allocation prioritizes organic growth and innovation, with plans to return surplus capital to shareholders when not efficiently invested [35] - The launch of Car Track Tag aims to enhance asset management and expand the platform's capabilities [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth momentum, particularly in Asia, which is viewed as having the highest growth opportunity [58] - The company anticipates a 10% increase in average revenue per user (ARPU) by the end of FY26, driven by upselling existing customers [55] - The outlook for FY26 includes subscription revenue guidance between ZAR 4,700 million to ZAR 4,900 million, implying growth of 16% to 21% [50] Other Important Information - The company ended Q4 with net cash and cash equivalents of ZAR 838 million, maintaining a strong balance sheet [22] - Adjusted free cash flow was ZAR 425 million, with a focus on strategic investments to support growth [45][46] Q&A Session Summary Question: What is the reception of the Car Track Tag launch? - The product has been well received in South Africa, with substantial scale achieved [54] Question: How does the company plan to drive growth in FY26? - The focus will be on enhancing customer offerings and increasing ARPU through existing customer sales [55] Question: What is the current view on net cash balance and dividends? - The company remains focused on capital allocation for growth, with decisions on dividends typically made in Q2 [61] Question: How does the company view share buybacks? - Share buybacks have been challenging due to low liquidity, and the focus will be on other growth initiatives [62] Question: What is the outlook for subscriber growth in Asia? - Subscriber growth is expected to improve as the sales force expands, with strong productivity anticipated [63]