Final Results Presentation 29 February 2016 Financial 20 Revenue - - PowerPoint PPT Presentation

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Final Results Presentation 29 February 2016 Financial 20 Revenue Results m EBIT 15 Operating cash flow 10 5 yr CAGRs: 5 Revenue: +24% EBIT: +27% Operating 0 Cash flow: +39% 2011 2012 2013 2014 2015 Subscription Base

SLIDE 1

Final Results Presentation

29 February 2016

SLIDE 2

Financial Results

5 10 15 20 2011 2012 2013 2014 2015

5 yr CAGRs:

Revenue: +24% EBIT: +27% Operating Cash flow: +39%

£m Revenue EBIT Operating cash flow

SLIDE 3

0,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Subscription Base

SLIDE 4

KPIs

Fleet revenues (£’000) 12,957 11,038 17.4

2015 2014 % change

Fleet subscription base (units) 73,744 59,765 23.4 Fleet customer base 7,849 6,342 22.6 Fleet attrition (annualised) (%) 11.3 9.4 Fleet installations 21,518 16,355 31.6 Insurance revenues (£’000) 6,718 4,293 56.5 Insurance installations 57,295 32,842 74.5 Fleet invoiced recurring revenues (£’000) 11,828 9,816 20.4

SLIDE 5

Recurring Revenues

0.0 2.0 4.0 6.0 8.0 10.0 12.0

2014 2013 2012 2011 2010 2009 2002 to 2008 2015

The chart shows invoiced fleet rental and communications revenues segmented by year of customer acquisition £m

SLIDE 6

Overview

Revenues

Fleet Insurance

Total Gross profit

Gross margin

Operating profit

Operating margin

Net profit Adjusted Earnings per share (p) Adjusted cash generation from operations

Operating profit to operating cash conversion

12,957 6,718

19,675 12,150

62%

6,045

31%

5,014 10.69 6,781

112%

11,038 4,293

15,331 9,943

65%

4,885

32%

4,032 8.52 5,523

113%

17.4 56.5

28.3 22.2 23.7 24.4 25.5 22.8

2015 2014 % change Year ended 31st December - £’000 (except where stated)

SLIDE 7

Financial Results Net cash: £3.0m at year end

Proposed final dividend

4.0p per

share EPS up 25% to

10.69p

per share FCF up 20% to

£5.4m

(2014: 4.5m)

5.4 0.2 2.3 3.0

2014: net debt

f £0.2m

Free cash flow Dividends paid

£m

Net cash

SLIDE 8

Dividend Policy

The current policy is to pay out 50% of free cash flow (defined as cash generated from

perations, less

taxes)

6,781

£’000

1,092 Cash flow from

perations

Less interim dividend 50% 2,845 940 1,905 Less taxes paid Final dividend

Interim dividend: 2.0p per share Final dividend: 4.0p per share

SLIDE 9

Supplementary Dividend

Year end cash balances in excess of £2m after the final dividend will be paid as a supplementary dividend, subject to minimum of 2p per share

£’000

2015 year end example

Year end cash balance 4,040 Year end final dividend 1,905 Amount over £2m 135 2,135 Cash required for 2p per share 944

No supplementary dividend for 2015

SLIDE 10

“We have seen improved driving standards utilising the Quartix driving style reports, resulting in reduced vehicle incidents and an 18% improvement in fuel consumption.” Andrew Gibbons, Fleet CI Manager, Ginsters Ltd

SLIDE 11

“Using the Quartix system we have reduced communication costs with our drivers by 50%.” Arnaud Richter, Directeur Exploitation, SLTI

SLIDE 12

Fleet Tracking

5,000 10,000 15,000 20,000 2014 2015

Units

32% growth in new fleet installations

21,516 16,337

SLIDE 13

Fleet Tracking

20,000 40,000 60,000 80,000 2011 2012 2013 2014 2015

Fleet base 5 year CAGR 20%

Active vehicle subscriptions

29,991 73,744

SLIDE 14

Fleet UK

2 4 6 8 10 12 2014 2015

£11.7m

Revenue

£ m

10000 20000 30000 40000 50000 60000

2014 2015

62,655

Subscriptions

5000 10000 15000

2014 2015

15,566

Installations

2000 4000 6000

2014 2015

5,960

Customers

+ 15% + 15% + 13% + 12%

SLIDE 15

Fleet France

0.0 0.5 1.0 1.5 2014 2015

€1.4m

Revenue

€ m

2500 5000 7500

2014 2015

7,190

Subscriptions

1000 2000 3000

2014 2015

3,145

Installations

500 1000

2014 2015

1,196

Customers

+ 48% +38% + 52% + 34%

SLIDE 16

Fleet USA

0.0 0.1 0.2 0.3 0.4 2014 2015

$0.4m

Revenue

$ m

1000 2000 3000

2014 2015

3,179

Subscriptions

1000 2000 3000

2014 2015

2,805

Installations

250 500 750

2014 2015

693

Customers

SLIDE 17

Insurance Telematics

0% 5% 10% 15% 20% 17 18 19 20 21 22 23 24 25 26 27

Estimated proportion of market by age

Estimated market size 250-300k per annum

SLIDE 18

Insurance Telematics

Growth: 74% volume

2014 2015

1 2 3 4 5 6 7

2014 2015

Installations Revenue

£m unit s

56% revenue

4.3 6.7

32,842 57,024

SLIDE 19

Research and Development

US network approvals TCSV10 3G IFTA Reporting iOS & Android Apps TCSV11 Temperature Monitoring Quartix Web Services SafeSpeed Database

AP I

SLIDE 20

Summary and Outlook

Strong growth in subscriptions underpins

recurring revenues in fleet

Good progress in all three fleet markets
Good profit growth despite increased

investment in new markets, new installations and increased plc costs

Strong cash generation enables high returns to

shareholders

SLIDE 21

Final Results Presentation

Appendix: Introduction to Quartix

SLIDE 22

SLIDE 23

SLIDE 24

GPS GPRS

SLIDE 25

Operations

Leatherhead Cambridge Newtown Bishop’s Waltham

Chicago

SLIDE 26

“We have always found Quartix to be customer-focused and approachable. We look forward to continuing our partnership for the next 15 years.” Phil House, Director, Broadland Guarding Services Ltd.

SLIDE 27

Final Results Presentation

29 February 2016