INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 AUGUST 2017

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1 INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 AUGUST 2017

2 AGENDA BUSINESS TRENDS AND STRATEGY Zak Calisto SEGMENTAL PERFORMANCE Zak Calisto FINANCIAL REVIEW John Edmeston OUTLOOK AND QUESTIONS Zak Calisto

3 TECHNOLOGY Mobile asset management solutions Asset recovery WE ARE CARTRACK Workforce optimisation Telematics and data analytics Proven global platform 3

4 AMONG THE LARGEST TELEMATICS COMPANIES GLOBALLY subscribers 24 countries 5 continents 4

5 A ROBUST OPERATING MODEL Economies of scale Vertical integration protects margins Highly scalable business model and technology platform Strong customer retention 5

6 A LOW-RISK FINANCIAL MODEL Compound 5-yr revenue growth of 20% pa Cash conversion 91% Annuity income 88% of total revenue 6

7 A RAPIDLY EXPANDING INDUSTRY A significant addressable market Global fleet telematics revenue estimated to reach US$55 billion by 2021, almost double the current market revenue Gartner Inc. estimate 7

8 MULTIPLE GROWTH DRIVERS Regulatory compliance Global growth of 20% p.a. Barriers to entry New applications Insurance telematics Access to larger data sets Value-added products and services Stronger SVR demand Smart transportation OEM partnering Driver safety and security 8

9 STRATEGY REVIEW

10 A CONSISTENT STRATEGY FROM VEHICLE TRACKING KEY STRATEGIC PRINCIPLES Vigorous subscriber acquisition Continuous innovation Margin management through vertical integration Strong cash flow TO AN INTEGRAL PART OF CUSTOMERS LIVES Disciplined capital investment 10

Number of subscribers STRATEGIC DRIVER diversified subscriber base 700 000 650 000

000 50 000 0 2012 2013 2014 2015 2016 2017 HY 18 20% CAGR subscriber growth over five

11 Number of subscribers STRATEGIC DRIVER diversified subscriber base HY 18 20% CAGR subscriber growth over five years Spread across a range of economic regions South Africa Africa Europe Asia-Pacific 11

12 STRATEGIC DRIVER data and technology Scalable proprietary SaaS platform Mobile apps 3G to 4G Software integration New front end Platform improvements DATA SHARING Stolen Vehicle Recovery Fleet Management Insurance Telematics Mobile asset solutions Workforce optimisation Regulatory compliance Driver safety 12

13 STRATEGIC DRIVER customer retention Customer lifecycle of 64 months vs contractual commitment of 36 months Capitalised rental units depreciated over 36 months Operating margin increases significantly post depreciation period FUTURE SALES LIKELY TO BE PREDOMINANTLY RENTAL-BASED 13

14 STRATEGIC DRIVER integrated business model Margins 90% 80% 78% 81% 80% 82% 70% Generating industry-leading margins 60% 50% 40% 30% 43% 35% 34% 46% 46% 47% 32% 32% 20% 10% 0% HY 18 Gross margin % EBITDA % Operating profit % 14

15 CURRENT STRATEGIC INITIATIVES INFRASTRUCTURE AND DISTRIBUTION CAPACITY PRODUCT DEVELOPMENT SUSTAINABLE REVENUE & SUBSCRIBER GROWTH, GENERATING STRONG MARGINS & RETURNS CUSTOMER PARTNERSHIPS NEW REVENUE STREAMS 15

16 SEGMENTAL PERFORMANCE

17 A GREAT START TO 2018 Subscriber base up 21% HEPS up 20% Lucrative growth opportunities across all regions Interim dividend of 18 cps 17

Rm SEGMENTAL PERFORMANCE 1 000 SOUTH AFRICA Revenue 14% Subscription revenue 19% Subscribers 19% Operating profit 22% 900 800 700 600 500 400 300

18 Rm SEGMENTAL PERFORMANCE SOUTH AFRICA Revenue 14% Subscription revenue 19% Subscribers 19% Operating profit 22% Economies of scale and operating efficiencies HY 17 HY 18 Revenue Profit before tax 18

19 SEGMENTAL PERFORMANCE PERFORMANCE IN RAND PERFORMANCE IN CONSTANT CURRENCY Africa-Other Subscription revenue Down 6% Up 10% Subscribers Down 3% Down 3% Operating profit Down 3% Up 14% PERFORMANCE IN RAND PERFORMANCE IN CONSTANT CURRENCY Europe Subscription revenue Up 3% Up 14% Subscribers Up 24% Up 24% Operating profit Down 6% Up 2% Asia-Pacific and ME PERFORMANCE IN RAND PERFORMANCE IN CONSTANT CURRENCY Subscription revenue Up 112% Up 140% Subscribers Up 122% Up 122% Operating profit Up 99% Up 129% 19

20 SEGMENTAL PERFORMANCE USA 3,1 million vehicles still require ELD telematics Cartrack will benefit from operating in a highly technology-driven society In-field testing expanded in the past six months Further hardware and software adaptions implemented Sales activities have now commenced 20

21 FINANCIAL REVIEW

Rm SOLID REVENUE GROWTH 115 000 new subscribers year-on-year 1 200 Revenue 1 000 Revenue up

consolidation Subscription revenue up 19% to R557,2 million Subscription revenue is now 88%

22 Rm SOLID REVENUE GROWTH new subscribers year-on-year Revenue Revenue up 14% to R629,9 million 800 Revenue up 18%, when excluding exchange rate effects on consolidation Subscription revenue up 19% to R557,2 million Subscription revenue is now 88% of total revenue HY 17 HY 18 Revenue Subscription revenue 22

23 Rm ROBUST PROFITABILITY EBITDA 600 EBITDA of R297,1 million, up 26% EBITDA margin of 47% R5,3 million negative impact from currency fluctuations HY 17 HY 18 23

R000 INVESTING IN THE FUTURE Expenditure on Research and Development 30 000 25 000 20 000 20 462 28 229 Significant

24 R000 INVESTING IN THE FUTURE Expenditure on Research and Development Significant investment in distribution over the past three years H1-16 H2-16 H1-17 H2-17 H

25 Cents Cents EARNINGS AND DIVIDENDS HEPS and DPS EPS and Normalised EPS* HY 17 HY HY 17 HY 18 HEPS DPS EPS NEPS *Normalised EPS removes non-operational forex gains/losses 25

26 R000 CASH GENERATION AND UTILISATION Clear dashed items represents HY 17 comparatives Cash at 1 Mar 2017 Cash from operating activities Capitalised rentals Capitalised other fixed assets Dividends paid Other cash payments and receipts Cash at 31 Aug

27 STRONG BALANCE SHEET POSITIONED FOR GROWTH ROE 59% ROA 33% Clean debtors book debtors days 30 Stock levels increased to accommodate growth expectations Current ratio 0,9 Quick ratio 0,5 27

28 OUTLOOK P 28 I Strictly private and confidential

29 A ROBUST OUTLOOK Well-positioned for growth and strong operating results Demand for telematics data continues to increase Lucrative growth opportunities across all channels Double-digit revenue and subscriber growth expected for the foreseeable future 29

Nigeria Philippines Poland Portugal Rwanda Singapore

30 International offices Angola Botswana Hong Kong Indonesia Kenya Malaysia Malawi Mozambique Namibia New Zealand Nigeria Philippines Poland Portugal Rwanda Singapore South Africa Spain Swaziland Thailand Tanzania UAE USA Zimbabwe 30

31 ANNEXURES

32 WHAT WE OFFER INVESTORS 32

Rm Percentage operating profit converted to cash A CONSISTENTLY HIGH CASH CONVERTER 400 350 300 250 200 150 100 50 0 140% 120% 100% 80% 60% 40% 20% 0% 2012 2013 2014 2015 2016 2017 HY 17 HY

33 Rm Percentage operating profit converted to cash A CONSISTENTLY HIGH CASH CONVERTER % 120% 100% 80% 60% 40% 20% 0% HY 17 HY 18 Operating profit Net cash from operating activities Cash conversion ratio Annuity business with strong revenue visibility Strong track record of returning excess cash to the shareholders 33

34 SEGMENTAL GROWTH R million Revenue HY 18 HY 17 Change South Africa % South Africa Africa-Other % Europe % Asia-Pacific % USA HY 18 Africa-Other Europe Asia-Pacific HY 17 Total % USA Profit before tax South Africa % Africa-Other % Europe % Asia-Pacific % USA -4-1 >100% Total % HY 18 South Africa Africa-Other Europe Asia-Pacific USA HY 17 EBITDA South Africa % South Africa Africa-Other % Europe % Asia-Pacific 9-1 >100% USA -4-1 >100% Total % HY 18 Africa-Other Europe Asia-Pacific USA HY 17 34

reflects economies of scale and operating efficiency OUTLOOK AND INITIATIVES Market remains underpenetrated

35 SOUTH AFRICA A SOLID PERFORMER REPRESENTATION Operations across South Africa CURRENT RESULTS Investment in distribution resulting in market penetration Strong sales pipeline Single-digit operating expense growth reflects economies of scale and operating efficiency OUTLOOK AND INITIATIVES Market remains underpenetrated with significant opportunity for further growth Lower value vehicle segment offers attractive opportunities 35

AFRICA-OTHER OPERATIONALLY SOUND REPRESENTATION Angola Botswana Kenya Malawi Mozambique Namibia Nigeria Rwanda Swaziland Tanzania Zimbabwe CURRENT RESULTS Resilient performance despite challenging

36 AFRICA-OTHER OPERATIONALLY SOUND REPRESENTATION Angola Botswana Kenya Malawi Mozambique Namibia Nigeria Rwanda Swaziland Tanzania Zimbabwe CURRENT RESULTS Resilient performance despite challenging economic conditions Subscriber base maintained and constant currency revenue increased by 9% Highly profitable in local currency and positive cash flows Operating costs decreased by 6% OUTLOOK AND INITIATIVES New management structure implemented Sales and distribution strategy refreshed Changes expected to impact positively over the next 6-18 months 36

EUROPE STRONG GROWTH IN COMPETITIVE ENVIRONMENT REPRESENTATION Poland Portugal Spain CURRENT RESULTS Strong subscriber growth Revenue unchanged due to exchange rate effects and competitive pricing

37 EUROPE STRONG GROWTH IN COMPETITIVE ENVIRONMENT REPRESENTATION Poland Portugal Spain CURRENT RESULTS Strong subscriber growth Revenue unchanged due to exchange rate effects and competitive pricing Continued investment in distribution and operating capacity EBITDA increased by 23% - significant impact from capitalised rentals and related depreciation OUTLOOK AND INITIATIVES Continued strong subscriber growth Lucrative growth opportunities evident Competition remains strong Insurance telematics and individual retail markets remain underpenetrated 37

ASIA-PACIFIC BUSINESS CASE PROVEN REPRESENTATION Hong Kong Indonesia Malaysia New Zealand Philippines Singapore Thailand UAE CURRENT RESULTS Continued investment in distribution and operating

38 ASIA-PACIFIC BUSINESS CASE PROVEN REPRESENTATION Hong Kong Indonesia Malaysia New Zealand Philippines Singapore Thailand UAE CURRENT RESULTS Continued investment in distribution and operating capacity Start-up entities deliver strong growth Singapore acts as strategic hub EBITDA turns positive as subscriber base starts to achieve scale OUTLOOK AND INITIATIVES Startups in Thailand, Malaysia, Philippines and Indonesia now months into establishment cycle Strong sales pipeline Significant cross-border opportunities Cartrack s sophisticated and reliable products ideally positioned to take advantage of considerably underpenetrated and fragmented market 38

HY17 RESULTS PRESENTATION

1 HY17 RESULTS PRESENTATION TABLE OF CONTENTS About Cartrack 3 Business trends 4 Strategy overview 6 Segmental performance 13 Financial review 19 Outlook 28 Annexures 32 ABOUT CARTRACK A leading global