I N V E S T O R P R E S E N T A T I O N

Transcription

1 A U G U S T S T E F A N J O S E L O W I T Z, C E O I N V E S T O R P R E S E N T A T I O N

2 Forward looking statements 2 Safe Harbor Statement This presentation includes forward-looking statements, within the meaning of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not based on historical information and include, without limitation, statements regarding our future financial condition and results of operations, business strategy and plans and objectives of management for future operations. Forward-looking statements reflect our current views with respect to future events. The words may, will, expect, intend, anticipate, believe, project, estimate and similar expressions identify forward-looking statements. These forwardlooking statements are based upon estimates and assumptions made by us or our officials that, although believed to be reasonable, are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially and adversely as compared to those contemplated or implied by such forward-looking statements. All forward-looking statements involve risks, assumptions and uncertainties. You should not rely upon forward-looking statements as predictors of future events. The occurrence of the events described, and the achievement of the expected results, depend on many events, some or all of which are not predictable or within our control. Actual results may differ materially from expected results. See the sections Risk Factors, Management s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in our Form 20-F filed with the Securities and Exchange Commission (the "SEC") for the fiscal year ended March 31, 2016, as updated by other reports that the Company files with or furnishes to the SEC, for a more complete discussion of these risks, assumptions and uncertainties and for other risks and uncertainties. These risks, assumptions and uncertainties are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. All of the forward-looking statements we have included in this presentation are based on information available to us on the date of this presentation. We undertake no obligation, and specifically decline any obligation, to update publicly or revise any forwardlooking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this presentation might not occur.

3 Company snapshot 3 A leading global provider of information and related services for mobile assets Largest fleet management solution provider in South Africa (Berg Insight report) Broad product portfolio delivering diversified revenue streams SaaS solutions for safety, efficiency, security and compliance Subscribers in approximately 120 countries Proven ROI drives customer retention Long track record of success Balanced approach to growth. Top-line, bottomline and cash-flow Fiscal 2016 (March 2016) Subscription Revenue R 1,158 MM +16% $78 MM Total Revenue R 1,465 MM +5% $99 MM Operating Profit R 139 MM -7% $9 MM Adjusted EBITDA * R 277 MM Vehicle Subscriptions 566,000 (19% margin) +11% $19 MM Notes: During the 2016 fiscal year, the Adjusted EBITDA definition was amended to exclude all foreign exchange gains/losses. The 2015 Adjusted EBITDA result included in this presentation has been presented on the revised basis. Financials translated from South African Rand into U.S. Dollars at a rate equal to R per $1.00, which was the R/$ exchange rate reported by Oanda.com as at June 30, 2016

4 1Q Fiscal Year 2017 Highlights 4 Increased adoption of fully-bundled solutions, subscription revenue now 81% of total revenue ZAR yoy Chg. USD Subscription Revenue: R 306 mil +13% $21 mil Total Revenue: R 379 mil +10% $26 mil Total Vehicle Subscriptions: 578 k +10% +9% Operating Profit: R 23 mil -30% $2 mil Adjusted EBITDA: R 60 mil -7% $4 mil Adjusted EBITDA margin: 16% Note: Financials translated from South African rand into U.S. dollars at a rate equal to R per $1.00, which was the R/$ exchange rate reported by Oanda.com as at June 30, 2016

5 Why customers choose MiX 5 Proven track record, delivering on-going value to customers for nearly two decades Unique global footprint and ecosystem Strategic focus on large fleets Longstanding, deep industry expertise Broad suite of solutions Best-in-class technology Strong brand Loyal, happy and referenceable customers

6 Solving our customers problems 6 We deliver ongoing value to our customers, helping them address a variety of challenges Fleet Efficiency Safety and Security Driver Behavior Regulatory Compliance Insurance/Risk Management Fuel Savings Vehicle Tracking Real-time Driver Feedback Compliance Monitoring Insurance Savings Enhanced Service Crash Notification Video Monitoring Hours of Service Fewer Accidents Utilization Vehicle Theft Recovery Driver Scoring Fuel Tax Reporting Lower Claims Ratio Wrings transport in the UK reduced communication costs by 90% Red Bus in New Zealand reduced accident rates by 40%

7 Powerful, Global Distribution 7 18 offices and more than 130 fleet partners serving customers in approximately 120 countries worldwide Direct sales Channel partners Insurance providers & brokers OEM Retail Global key accounts Leasing companies Motor dealerships Customer Presence MiX Offices Regional Partners

8 Diverse, Global Customer Base 8 Customers range from passenger vehicles to small fleet operators and large enterprise fleets across multiple verticals Passenger Vehicles Fleets OIL & GAS BUS & COACH RENTAL & LEASING GOVERNMENT & MUNICIPAL UTILITIES TRANSPORTATION & LOGISTICS

9 Well positioned to continue robust growth 9 We are well positioned to take advantage of the convergence of important global trends MOBILITY 12% CAGR Subscriber growth 566 K 578 K 512 K 451 K BIG DATA Driving Growth FY14 FY15 FY16 1Q17 CLOUD

10 Substantial Market Opportunity 10 A large addressable market exists in the premium fleet space COMMERCIAL VEHICLES ILLUSTRATIVE TAM Opportunity Impact Vehicle base 200mm Current Penetration 14% Commercial Vehicles Subscription Fee / Month Subscription Fee 200mm $30 / month $360 / year TOTAL TAM OPPORTUNITY $72 BN We are highly differentiated from SMB and regional players > 73% of our subscription revenue is generated from fleet customers > 86% of our fleet subscription revenue is generated from customers with 50+ vehicles > 61% of our fleet subscription revenue is generated from customers with 500+ vehicles Source: ABI Research

11 Large, Fragmented Market 11 Unique global platform in a disparate marketplace competition differs in every region in which we operate One of few providers with more than 500,000 subscribers Most providers operate on a regional basis Many lack scale to compete globally and service multi-national corporations Note: Market data based on management estimates. Chart for illustrative purposes only.

12 Fiscal 15 16: Investment in Sales 12 MARKET DEVELOPMENT Growing success in emerging markets: Algeria, Brazil, Mexico, Thailand KEY ACCOUNT GROWTH CONTRACT EXTENSIONS Additional deployments into DHL, Linde Gas, Chevron, Halliburton and other multinationals Contract extensions secured with large anchor clients in Europe, RSA, MEA and USA SALES TEAM GROWTH Recruited experienced sales leaders and expanded teams in Americas and MEA

13 Started replacing our back-end MiX Lightning - designed to support exponential growth Fiscal 15 16: Investment in Technology 13 Significant software investments to evolve our platform; increasing retention & ARPU Built a new software platform DynaMiX - on which all SW development is now done Launched MiX Fleet Manager - enabling us to switch off legacy Added more modules - to drive up ARPU and increase customer retention Hours of Service (US, EU, ME, Africa) MiX Vision Journey Management MiX Go

14 Opportunity: ELD legislation 14 ±3 million vehicles affected, substantially expands US TAM FMCSA* adopted final rule in December 2015 > ELDs will need to give drivers more autonomy > Integration with back-end law enforcement systems required Legislation makes implementation of a fully compliant ELD system more complex > Technical complexity is a barrier to entry for those without ELD heritage > Customers will need to be helped through the change We have a flexible, state of the art solution which will scale to meet the law MiX is well positioned to take advantage of this disruptive change * Federal Motor Carrier Safety Administration

15 Investment Highlights 15 We are well positioned to take advantage of the convergence of important global trends Experienced Management Recognized Leader Strong Value Proposition Global Footprint Strong Growth Highly Profitable Substantial Market Opportunity Significant experience in the industry and tenure at MiX Strong market position more than 570,000 subscribers Clear and proven ROI from safety, efficiency and security solutions Global sales, distribution and support capabilities Making investments and driving SaaS subscription revenue growth Long track record of generating cash flows while sustaining growth Addressing a large, rapidly growing underpenetrated market