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 Hoes hin, 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. We will be reviewing all three 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 macroeconomic 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 can 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 insight and 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 non-operational teams together and helps companies remain compliant, competitive in their industries, and most importantly, forward-thinking. To illustrate how our platform impacts a customer's 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 while improving their operations. With delivery fees often impacting a customer's 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 routes, as well as a practical mobile app for drivers to receive everything they need to excel at their job, our customers successfully saved 4 L 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 kg per vehicle per year. The payback period of our solution is under three 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 cost 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 five, or a harmless 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. While 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. A customer that transports fuel has seen a 46% decrease in high-risk driver events detected by our AI after three calendar months of implementation. These events include fatigue, mobile phone usage, other distracted driving, and tailgating. An accident with a vehicle carrying such sensitive cargo is not only detrimental to drivers' lives, but also can cause vast negative public relations that can have long-lasting negative effects on a business. Avoiding these high-risk events reduces accidents, and implementing this technology has enhanced our customer's 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 these 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. 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 insight 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. As with most things, talking is easy, but our teams lead by example. We have had team members work their way from in-field technicians to key decision makers, from analysts to leading country managers. Not only does this 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 empathize with the challenges faced by our diverse customers to solve them. We have a loyal team with the 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 a team that has a long-term mindset that is designed to win. I will now hand over to Hoes hin, who will take us through our financial performance. Thank you, Carmen. I will now talk through Karooooo's financial performance for quarter two, FY 2024. Please note that all comparisons are against quarter two, FY 2023, unless otherwise stated. Our quarter two 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 two, 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 continued to bolster our cash flow generation ability. 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 $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. Debtors turnover stays 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, unleveraged 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. Our earnings per share increased by 14% to ZAR 5.61. The increase is the result of positive revenue growth and improved profitability, despite our prudent and strategic investment for growth. 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, subscribers grew at scale by 14% to over 1.83 million. In this quarter, subscription revenue grew at 17% to ZAR 858 million, while operating profit stood at ZAR 252 million. Our solid start in quarter one continue as we gain momentum in quarter two, 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 its solid track record of growing at scale and experience strong customer acquisition in this quarter. Cartrack's total subscription revenue grew 17% 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. 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. This cost mainly relates to sales commission and telematics device, which are capitalized, and sales and marketing expense that are expensed. 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 incur 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 unique economics has been steady, allowing us strong operating profits. Cartrack continue 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. Despite the challenging trading conditions, our subscriber grew by 14%. In Asia, the Middle East, and U.S.A., subscriber grew by 26% as the traction in Southeast Asia has been encouraging. Southeast Asia remain 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. 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. Africa Others maintains its growth with 8% increase in subscriber. At the end of quarter two, 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 expectation. 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, enriching, 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 commitment to build a strong support infrastructure to meet our future growth plan. Operating profit as a percentage of subscription revenue are 29%, 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 two. Our guidance for Cartrack's outlook remain unchanged, with number of subscriber between 1.9 million-2.1 million, Cartrack subscription revenue between ZAR 3.4 million-ZAR 3.6 million, and Cartrack's operating profit margin between 28%-31%. Carzuka delivered ZAR 85 million in revenue in this quarter, and an operating loss of ZAR 13 million. Subsequent to the quarter two 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 dealerships as part of its customer acquisition strategy to acquire customers through the introduction of these dealerships. However, some dealerships have 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 risk the long-standing strategic relationship that Cartrack has forged with motor dealerships across South Africa. Karooooo Logistics delivered significant growth, generating ZAR 72 million in revenue and an encouraging operating profit of ZAR 8 million in this quarter. Its focus on delivery as a service through selected third-party crowdsourced drivers and logistic companies, have been highly scalable and is delivering substantial growth. While it 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. Hi, good morning, good afternoon, good evening, depending where you are. Thanks very much for joining the presentation. I'll open up the questions, and the first question comes from Myles Fourie: "When will Cartrack start monetizing data as a service? What percentage of Cartrack's annual revenues will come from data as a service in three years' time?" Myles, sometimes, you know, these words are a bit of jargon. So data as a service is currently what we 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 give intelligent business reports to our customers. In our opinion, a great portion of our subscription revenue model is already data as a service, which we obviously offer as a software as a service. I think either I'm not understanding your question, or that's my answer. The next question comes from Sebastiaan Kwakkenbos. I'm not certain if I'm pronouncing this surname correctly, so apologies, Sebastiaan, if that's wrong. "Can you expand further on the decision to shut down Carzuka in South Africa? Will there be any costs associated with closing this division?" Basically, we have one lease that comes to closure during this financial year, so there are 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. There is no major costs. Clearly, these costs could have a slight impact on Cartrack initially, but that's been planned, and it will be phased. I think by the time we get to FY 2025, you know, these costs won't be weighing us down. I think the reality is, we've been losing 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, we'd have been much further. We've been in long discussions with our partners, which is basically the motor dealers, where a few of them are saying that we, you know, we've got conflict of interests with them, and we've decided to save these long-standing relationships and rather, you know, continue keeping our relationships with the motor dealers healthy. The next question comes from Matthew from Confluence Impact Fund. Hi, it's Matthew from Confluence Impact Fund. "Thank you for the presentation, congratulations on progressing these results. Despite the growth experienced by Carzuka, as the decision was made to cease buying second-hand vehicles, what does this mean for Carzuka? Will you be buying and selling vehicles, and so from what different sources are the dealers?" We have got the platform, we have developed the 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. We then assist them in them selling the pre-owned vehicles, and we don't see this in any way conflicting. So we'll still be able to anyone that wants to advertise on our platform, they're more than willing to do it. But we will not be taking inventory and buying and selling secondhand vehicles, but we will certainly allow our partners, the dealerships, to still get the benefit that they've reaped until now. Alex Sklar. Cartrack operating margin is up nicely this quarter. Can you talk about the operating margin expectations three and four, given your absorbing costs of Carzuka employees? It's- it will certainly have a negative impact on, on Cartrack, but it's really a planned impact that we would have done anyway, because we need to employ the staff. 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 to which departments. It's all really just helping us fill about 500 vacancies that we currently have at the moment. Matthew from William Blair. Has the net subscriber momentum in the second quarter continued into the third quarter? Matthew, yes, it has. In the first 40 days of Q3, our net, 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 Q3, given that we are halfway through Q3. Another question from Matthew, from William Blair: Can you provide an update on the OEM relationships? When could you start to contribute to subscriber additions? 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 2025. Matthew from Confluence: Please, can you comment on the proposed merger between MiX Telematics and Powerfleet? Which geographies do you overlap in? I must say, Matthew, I'm not very familiar with Powerfleet. MiX, I'm relatively familiar with them. So, if my understanding is correct, Powerfleet is very much American-based, but... So I prefer not to comment because I don't really know. I haven't delved into this information. I don't know. 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? I, I think there's multiple vendors with our types of solutions. I think our route to market, although at the high level, it looks similar, but fundamentally, when you get into the detail, we're quite different. MiX operates in about 100 geographies. We only operate in 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. I think that makes quite a big difference. 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. Next question from Sandile Magagula. Cartrack's EBITDA margin is 47%. What if we reach the bottom at this level? Can you allow margin to trend below 47% mark? You know, we've traditionally had our EBITDA margins between about 45 or 44 and about 52%. We believe that will continue. You know, it depends how much capital we've allocated into back office, into sales, and it's a timing thing. We envisage that we'll remain in these sort of margins for quite a few years to come. Secondly, in terms of South Africa subscriber base, at which level do you expect growth rates and subscribers to peak, given that 30% growth achieved in Q2? You know, 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, you know, we're starting to see better momentum in growth in Q2 compared to Q1, and Q3, we continue with that momentum. Thirdly, the plan is to integrate Carzuka software. What is the estimated impact on introduction? I think I've covered that. Fourth question: Where do you see Cartrack return on common equity peaking over the coming years? Well, you know, there's many ways of calculating that. So we've got quite a lot of cash. So if you give out the cash, you know, as a dividend, then obviously you'll be in a situation that your return on equity spikes. You're certainly making better returns for us than handing over your earnings in a form of dividends. At what phase of growth cycle of the business would it make sense for you to buffer the dividend given that the naturally high cash conversion rates, especially investments in organic growth and peak? I'd rather stay away from that question, simply because, you know, 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 like we've been doing, and we're generating quite a lot of free cash flow, and at this point in time, we can't deploy as much cash as we actually generating, Sandile. Next question from Myles Fourie. Why does Karooooo regard Southeast Asia as the group's most compelling growth opportunity in the medium to long term? And when is it the term, as Europe and Cartrack have partnered with leading OEMs in Europe? Well, we certainly believe Southeast Asia is, 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 outsiders. We're making good progress. We're starting to get good momentum, and I think we've still got a very long way to go before we reach, you know, the full term. And I've answered the OEMs, as well. So Cartrack have doubled their number of subscribers every four years. Do you see this continuing at this pace or faster pace? 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 style, but we certainly are getting momentum, and our intention is to grow, you know, to more than double our subscriber base in less than four years. So it's just a question of us getting our momentum back, which we certainly are getting at post-COVID. Alexander. Can you talk about the linearity of subscriber growth from June through to September? Did you see improvements every month, or was it fairly flatable? Any change in vehicles per customer in terms of what you added this quarter? Our customer base, in terms of our SMEs, large enterprise customers and consumers, remains quite constant over the years. Yeah, and then our growth has been quite, you know, it's been quite consistent, on a daily basis. We really measure our growth on working days, Alex. Quite frankly, we've got very steady growth. We can see it. You know, 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. Adding to that, Alex, typically our Q3 is normally our best quarter, given that there's less holidays in Q3. Suhail Salman: What will the financial impact of seizing cars against South Africa? What percentage is coming from refurbishing? I think I've answered that, Suhail. Andrew Ing: Do you compete with Descartes Group? Andrew, I apologize, but I do not know the Descartes Group. Chris Logan: Well done on strengthening momentum. Samsara is seeing a lot of strength in non-vehicle applications, what they call equipment monitoring. Is this an area you see serious potentially? Fundamentally, Chris, you know, we're doing a lot of, you know, there's a lot of demand from our customers as well for just IoT devices for equipment. It depends what you call equipment, but we've got a lot of yellow machineries, forklifts. You know, we deal with a lot of machinery already. So when we say subscribers, some of it includes that type of equipment that's being used in warehouses. And so my answer to that is, clearly, as long as it's an 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. Then, a final question from Sikonathi. 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 owning inventory. I wanna thank everybody for asking. There's more, one more question that just came through. Hristo Georgiev: ARPU has been stable for quite some time. Given all the inflation around the world, what is the reason you haven't increased prices? Hristo, we, you know, 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, feel them over the years, and but we've always been able to beat them through economies of scale. I wanna thank everybody for joining us today, and look forward to talking to you again in three months' time. Okay, bye-bye.