Karooooo Ltd.

Hello and welcome to Kourou's fourth quarter and full year fiscal 2025 financial results presentation. On behalf of Kourou, we would like to thank you for joining us today. I'm Paul Bieber, VP of Investor Relations and Strategic Finance. We are joined today by Zach Callisto, Founder and Group CEO, Hoshin Goy, Chief Financial Officer, and Carmen Callisto, Chief Strategy and Marketing Officer. I would like to remind everyone that some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions. They are subject to several risks and uncertainties. Our actual results could differ materially. Please refer to the Safe Harvest Statement in our Form 20F, including the risk factors and the 6K that we filed yesterday. We undertake no obligation to update any forward-looking statements. During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in the 6K that we filed with the SEC yesterday. Our comments will refer to year-over-year comparisons unless stated otherwise. Before handing the call over to Carmen, we'd like to present a six-minute video of our SaaS platform to illustrate the depth and breadth of our platform's capabilities.

CAR Track's all-in-one IoT platform simplifies decision-making. From conquering fuel and maintenance to empowering a safety-first culture and setting teams up for success, our platform gives businesses visibility and control of their entire operation in a single place. low visibility and manual checks, leave companies struggling with fuel theft, fuel card fraud, claim validations, and inefficient driving behavior challenges. Our platform validates fuel transactions with telematics data. to ensure that vehicles were at the right station and that all fuel actually entered the right tank. Transactions are assessed from low to high risk, automatically notifying managers and enabling quick verification of fuel claims. Hundreds of fuel transactions are verified in minutes. All transactions are audited and time and money are saved. Fuel wasting habits like idling are conquered with in-vehicle buzzers, management alerts, and comparative dashboards that benchmark drivers and businesses against others in their industry. This empowered a top food and beverage company to save more than $200,000 in fuel costs in a year. When managing deliveries or field jobs across a fleet, Keeping track of where everyone is and what's getting done is no small feat. Drivers need clear instructions. Dispatch and collections teams need estimated times of arrival to prepare. Clients want real-time updates. And in such competitive industries, even minor delays and a few bad days can affect brand and customer loyalty. Our workforce management solution allows businesses to transform their workflow by digitally creating, assigning, and monitoring each task. They simply indicate daily jobs to complete, driver availability, and any special requirements such as cold storage or skills to landscape bonsais. and our platform automatically generates job cards for every worker that optimize the workflow of the entire business, minimizing total travel distance and costs. Workers get everything to complete their tasks via mobile app and customers get real-time updates with live tracking and proof of job completion. Our tool enabled a medical lab to quickly expand its blood collection operations from 15 clinics to more than 400. Ten folding productivity and decreasing sample collection times. Businesses sharing vehicles and assets struggle with double bookings, cumbersome booking processes, frustrating key management, and license renewal slip-ups, resulting in unnecessary team friction, fleet increases, and wasted costs. Our software allows businesses to seamlessly combine vehicles and centralize fleets. Managers set up driver permissions, vehicle requirements, and an approval matrix. Then workers request bookings via our app. and vehicles are automatically allocated to evenly distribute asset usage and maximize acceptance rates. Drivers digitally lock and unlock vehicles, and requirements for inspections are automated into one workflow with full reporting. Our tool empowers businesses to reduce fleet sizes, increase utilization and improve user experience while eliminating unnecessary admin headaches and costs. Globally, businesses and governments have growing road safety concerns. Our AI vision technology scans and monitors hundreds of data points every second, detecting high-risk driving behaviors the moment they happen. When high-risk driving is spotted, an immediate in-cabin audible alert gives drivers the chance to correct their actions and prevent an accident. But the goal isn't to be reactive. Managers gain unmatched visibility into the driver's seat. So they can coach drivers before bad habits turn into real risks setting a new proactive standard for safer driving every day off the road costs a fleet. Preventative maintenance is key. Our platform sends managers custom reminders using real-time data when it's time for a service, tire swap, oil change, and more. They assign the vehicle out for maintenance, and once it's back, drivers confirm that everything is in order. And if drivers spot something out of the ordinary, They simply report an ad hoc defect or highlight this in customized digital inspection forms. Everything gets logged, assets get repaired quickly, maintenance costs decrease, and fleets run reliably. Sometimes every second counts. Businesses need a control room that keeps an eye on all events and takes action right away. Whether that means live streaming what's happening on the ground, or dialing into the cabin and speaking to drivers directly, or using real-time sensor data, teams can react instantly, investigate appropriately, and mark incidents as resolved with full audit trails, from fuel to maintenance. To fines and taxes, businesses enter all their expenses to understand their full cost of ownership and how that translates to outputs and profits. We integrate with tons of partners and bring all fleet data into one place With contextualized data points, tailored reporting, and one single source of truth for their operation, businesses easily pinpoint leakages, make the right decisions faster, and better deliver on their missions. Simplify decision-making with CarTrack today.

Welcome to Karoo's Q4 and full-year fiscal 2025 financial results presentation. We hope you enjoyed the demonstration of our SaaS platform. For those new to Karoo, we operate a SaaS platform for connected vehicles and mobile assets that enables businesses to enhance operational efficiency, reduce costs, improve safety, and ensure compliance. We help businesses across industries simplify decision-making to optimize their physical operations. We serve a large, under-penetrated market with strong, sustained demand driven by digital transformation, a constant need to improve operational efficiency and an increasing focus on safety and compliance. As a founder-led business, we have a strong financial profile, a proven track record of execution excellence and a cultural focus on disciplined capital allocation. Our platform supports more than 2.3 million subscribers across more than 125,000 businesses in South Africa, Southeast Asia and Europe, spanning industries such as logistics, mining, agriculture, construction, retail and the public sector. Our financial model is anchored by high margin subscription revenue and robust customer retention. We continue to scale our proprietary data asset, now generating over 200 billion data points monthly, which we leverage to drive actionable insights for our customers and long-term customer value. During our presentation, we will review both of Karoo's operating segments, Kartrak and Karoo Logistics. CarTrack is our operations management SaaS platform. CarTrack operates at scale and has a very attractive financial profile. CarTrack's operating momentum has primarily driven Karoo's growth and strong financial performance. CarTrack's momentum continued in FY25. In FY25, CarTrack generated 4.1 billion ZAR in subscription revenue, an increase of 15% or 19% on a US dollar basis, and CarTrack's operating profit margin was a healthy 31%. Karoo Logistics is our rapidly growing delivery as a service business that empowers large enterprise customers to scale their e-commerce and logistics operations. Karoo Logistics is a structurally lower margin business in Kartrak showing strong growth momentum. Karoo Logistics is strategically important to us as it empowers our customers to scale their e-commerce and logistics operations through a capital light model while driving high contract customer retention. We continue to profitly scale the Karoo Logistics business in FY25. In FY25, Karoo Logistics' delivery-as-a-service revenue reached 420 million ZAR, an increase of 33% or 37% on a US dollar basis. Given Karoo Logistics' robust revenue growth, we are very excited about the long-term growth opportunity for the business. Karu exited FY25 with growing momentum despite a fluid macro backdrop. In Q4, 120 million za, an increase of 16%, subscription revenue of 1,086 million za, an increase of 16%, an adjusted earnings per share of 9.48 ZAR, an increase of 39% of delivering profitable growth at scale. In Q4, we were a rule of 60 company when adding our Q4 subscription revenue growth of 16% and our Q4 car track adjusted EBITDA margin of 48%, operating profit margin of 17%, an operating profit margin of 34% remained robust in Q4 and underpins our stellar financial performance. It's noteworthy that the Q4 CarTrack subscriber growth rate of 17% was consistent throughout FY25 and represented a 200 basis point acceleration versus FY24. Also, CarTrack's FY25 operating profit margin expanded modestly while FY25 subscriber growth accelerated. Before detailing our Q4 business and operational accomplishments, we want to take a moment to underscore our distinctive financial profile, something that is exceptionally rare in the public markets, particularly among small cap companies. We believe we are among a select few SaaS companies operating at a rule of 50 plus based on 2025 Gap Street estimates. Notably, within a SaaS universe of approximately 160 companies, we believe we are the only small cap company operating at this level. Being part of this elite group reflects our unwavering commitment to disciplined and profitable growth. In Q4, Cartrack's total subscribers increased 17%, highlighted by stable growth in South Africa and 100 basis point quarter-on-quarter acceleration in Europe. Net subscriber additions were strong and increased 25% and 30% in Q4 and FY25 respectively. With ongoing investments in sales, marketing, and infrastructure to support future growth, we believe we have ample runway to accelerate our organic growth while maintaining strong, robust earnings. Annualized recurring revenue, or ARR, accelerated 300 basis points quarter-on-quarter to 17%, and ARR increased 21% in U.S. dollars. We delivered healthy subscriber additions in Q4 while maintaining strong unit economics. Our results reflect our ability to grow at scale with discipline. Our Q4 financial highlights included CarTrack subscription revenue accelerated 200 basis points quarter-on-quarter to 16%, CarTrack subscription revenue increased 20% on a US dollar basis. Southeast Asia constant currency revenue growth accelerated to 31% compared to 26% in Q3. CarTrack's operating profit margin was a robust 34%, we remained a Rule of 60 company, and Karoo's adjusted earnings per share increased 39% to 9.48 ZAR. Our balance sheet remained strong and unleveraged, and we ended the quarter with net cash and cash equivalents of 838 million ZAR. Our healthy subscription gross margin, efficient customer acquisition, an attractive commercial retention rate continued to drive our healthy unit economics. In Q4, our subscription gross margin was 76%, our LTV to CAC ratio remained above 9, and our commercial retention rate was 95%. It's noteworthy that we accelerated our subscriber growth by 200 basis points in FY25 while maintaining healthy unit economics. We are excited about our massive TAM and remain committed to profitable growth as we pursue the expansive growth opportunity ahead of us. We ended FY25 with more than 1.7 million subscribers in South Africa, representing 75% of our global subscriber base. Our recent investment in a newly built central office supports our long-term growth strategy in the region by enabling us to scale operations, enhance customer service, and drive deeper platform penetration within our existing customer base. We are optimistic about the future of our business in South Africa, driven by ongoing digital transformation, rising demand for video solutions, and the market expanding impact of Cartrack Tag. With a trusted brand and an experienced team, we're well positioned for continued success in South Africa. We are encouraged by the strong momentum that we are building to accelerate our organic growth in the region. We ended FY25 with more than 274,000 subscribers in Southeast Asia and the Middle East, with most of the subscribers in Southeast Asia. Southeast Asia and the Middle East comprise 12% of total subscribers. In Q4, our constant currency subscription revenue growth in the region reached an impressive 31%, an acceleration compared to 26% in Q3. As the second largest contributor to group revenue, Southeast Asia continues to present the most compelling growth opportunity for the group in the medium to long term. In September 2024, we started a strong yet prudent drive to increase sales and marketing in Southeast Asia and believe that we will begin to see results in FY26. We aim to increase our sales headcount by 70% in FY26 in the region. Our differentiated SaaS platform, growing brand equity built on superior customer service, service delivery and distribution, and attractive regional macro trends provide us with a solid foundation to drive continued growth and expansion in the region for years to come. We ended FY25 with more than 200,000 subscribers in Europe, which comprised 9% of our total subscribers. Our subscriber growth in the region accelerated 100 basis points quarter-on-quarter to 20% in Q4. We remain focused on increasing our presence in the region, especially through OEM partnerships. We have partnered with leading OEMs to provide easy access to our platform, seamlessly integrating their connected vehicle data into our platform through application programming interfaces or APIs. We expect these partnerships to contribute to our results in the medium term. In addition, we are experiencing encouraging demand for our proprietary compliance technology in the region as customers seek to simplify compliance with evolving legislation and enforcement. In FY25, Career Logistics continued to build scale and delivered revenue of 420 million ZAR, an increase of 33% and a 9% operating profit margin. By immersing our platform into large customers' operations, contributing to strong customer retention. Karoo Logistics also enables us to learn about the operational and logistics challenges confronting our large customers. We see a large opportunity for Karoo Logistics going forward as large businesses seek to increase their e-commerce offerings and optimize their logistics capabilities through a capital light model. Our platform simplifies decision-making by seamlessly unifying and contextualizing data from a wide range of sources, including OEM devices and proprietary devices, as well as open APIs. By consolidating business operations into a single centralized hub, We enable our customers to overcome complex operational challenges related to safety, compliance, productivity, service delivery, cost control, fuel management, maintenance, routing, resource allocation, and workforce retention. Powered by our extensive data asset, advanced AI, and robust analytics, our platform delivers actionable insights that drive meaningful improvements to our customers' physical operations. We are deeply committed to continuous innovation, ensuring our platform remains intuitive, fast, and adaptable to the ever-evolving business needs of our customers. Simplicity is at the core of our solution, from implementation to daily use, helping customers make smarter decisions faster while driving ROI. The CarTrack Operations Cloud is an end-to-end SaaS platform that delivers significantly more than traditional telematics. By unifying mission-critical capabilities into one intelligent solution, we help customers enhance safety, boost productivity and reduce operating costs, driving measurable ROI. Key platform capabilities include real-time telematics, fleet management and asset optimization, video and AI-powered safety monitoring, field service and workforce management, risk management and compliance, last mile delivery and logistics management, seamless integration via open APIs and analytics and reporting. By delivering a unified, feature-rich platform, we empower our customers to scale efficiently, improve operational and financial performance, and drive long-term growth. We remain deeply committed to investing in product innovation, and CarTrack Tag exemplifies our commitment to innovation and expanding the power of our platform. In Q4, we launched CarTrack Tag, a next-generation wireless asset tag that extends our platform to any mobile asset in South Africa, delivering secure, near real-time visibility, even in areas with limited or no cellular coverage. Built for demanding commercial environments, Cartrack Tag helps businesses locate misplaced or stolen assets, reduce operating costs, and simplify asset management. Powered by our proprietary RF network and cloud integration, CarTrack Tag offers tamper-resistant protection. When paired with a CarTrack IoT device, it can detect signal interference and instantly alert both the asset owner and our 24x7 surveillance team, enabling rapid response and recovery. We're excited about CarTrack TAG's potential to deliver unparalleled asset protection, advanced risk management and expanded operational oversight. Its easy installation on a wide range of mobile assets such as trailers, generators, compressors, heavy machinery and large tools reduces friction to adoption and supports our committed TAM expansion across industries. Our customers choose us because we deliver tangible ROI by reducing costs, boosting productivity and enhancing safety through a user friendly platform backed by a best in class service team. The value proposition of our platform is significant, with a proven ability to create meaningful business impact. FY25 was a year of strong execution, impactful innovation and significant progress. We accelerated customer acquisition, enhanced our platform with more advanced AI video capabilities and other features, and successfully launched the contract tag. We also continue to invest in strategic headcount expansion, ensuring we are very well positioned for durable, long-term growth. Our solid financial performance and robust balance sheet underscore the strength of our operating model. We remain confident in our competitive positioning across regions and believe we are exceptionally well positioned to accelerate our growth in FY26. Looking ahead, our key strategic priorities for FY26 are as follows. Cement our leadership position in the countries we have achieved scale, expand our distribution footprint in Asia and Europe, broaden platform adoption by driving deeper customer engagement with our platform, and capturing growing demand for video capabilities, including AI video. Capital allocation is a fundamental part of our culture and we aim to remain disciplined with our capital allocation strategy rooted in a 20-year culture of profitable growth and prudent financial management, key drivers of long-term shareholder value. Our capital allocation framework is unchanged and prioritizes organic growth and innovation. Our paramount priority is investing in organic growth and product innovation given our strong unit economics, sustained profitability, and large market opportunity. Returning capital to shareholders. At current growth rates, our business generates significant excess cash. With our strong balance sheet and net cash position, We aim to return surplus capital to shareholders when we cannot efficiently invest it for growth, primarily through an annual dividend. As to avoid doubt, management prioritizes growth over dividends. Strategic M&A. We take a prudent and strategic approach to M&A. We view M&A as a tool to accelerate time to market in key geographies, expand our product portfolio or strengthen our competitive position. However, given our compelling organic growth profile, customer-centric culture and attractive unit economics, we set a high bar for any potential acquisitions. M&A opportunities must offer clear strategic value or optionality to meet our criteria. Ultimately, we see it as our responsibility to allocate capital thoughtfully, always with the goal of maximizing long-term shareholder returns. I will now hand it over to Hu Xin, who will discuss our Q4 and full-year FY25 financial performance, as well as our outlook for FY26.