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CARTRACK HOLDINGS LIMITED - Summarised Preliminary Consolidated Audited Financial Results For The Year Ended 28 February 2019 And Cash Dividend

Release Date: 28/05/2019 07:07
Code(s): CTK     PDF:  
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Summarised Preliminary Consolidated Audited Financial Results For The Year Ended 28 February 2019 And Cash Dividend

Cartrack Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/036316/06)
Share Code: CTK ISIN:ZAE000198305
("Cartrack" or "the Group")

SUMMARISED PRELIMINARY CONSOLIDATED
FINANCIAL
RESULTS
2019

SUMMARISED PRELIMINARY CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2019 AND CASH DIVIDEND DECLARATION

FINANCIAL HIGHLIGHTS
- Robust subscriber growth of 28% to 960,798
- Net subscriber additions of 209,418 (FY18: 150,770)
- Subscription revenue up 30% to R1,521 million
- Subscription revenue is 90% of the total revenue and growing
- Total revenue up 28% to R1,693 million
- EBITDA of R761 million (FY18: R651 million) with a margin of 45%
- Operating margin of 30%
- Operating profit up 15% to R500 million after accelerated investment for growth
- Basic earnings per share ('EPS') of 116 cents, up 16%
- Headline EPS ('HEPS') of 116 cents, up 15%
- Dividend per share of 12 cents
- Cash generated from operating activities of R544 million (FY18: R468 million)

Commentary
Isaias Jose Calisto (Zak), founder and Global Chief Executive Officer, commented, "We are pleased with our year end results driven by continued strength in our top line and margins. This
year marks the sixth year of consecutive double-digit total company revenue and subscription revenue growth. Added to that, subscription revenue as a percentage of total revenue reached
peak levels of 90% this year. We are equally excited about the continued growth and adoption of our advanced fleet management platform by a number of large corporate fleets in both Asia
Pacific and mainland Europe. In South Africa, our industry-leading audited recovery rate of 92% underpins the superior specialised quality of the security technology required for the
recovery of stolen vehicles.

Our vision remains to achieve global leadership in the telematics industry as we strive to be the technology leader, providing transformational solutions to manage fleets, workforces, and
other non-powered assets, and help clients move their business operations into the digital age. As we focus on a highly underpenetrated market, Cartrack's goal is to provide our customers
and partners with real-time, actionable business intelligence, based on advanced technology and reliable data."

OPERATIONAL HIGHLIGHTS

- Significant upgrade to proprietary customer centric platform that will allow improved operational efficiencies to deal with accelerated growth
- Significant distribution footprint to lay a strong foundation through further exponential growth in the years to come
- Significant investment into back-office business systems with the aim of improving the operational and financial control environment. This will drive efficiency as well as allowing the
  business to scale further Global management capacity has been increased with the appointment of a CIO, Jesse Young, an industry professional with 15 years of experience, who will be based
  at the R&D centre in Singapore. In conjunction with this role, the global COO role at Cartrack has been strategically split into separate operational and product innovation functions
- Harry Louw and Brendan Horan have joined Cartrack with a combined  35 years of solid telematics experience in Africa and abroad. Harry has joined as CEO of  the South Africa region and
  Brendan takes on the role of Chief Strategy Officer  and Investor Relations
- Cartrack is gathering significant momentum in its efforts to capitalise on the increase in global trends of artificial intelligence and data analytics and tangible results  are already
  becoming evident from these efforts
- Cartrack's industry-leading recovery rate of 92% underpins the quality of our security technology

ACCOUNTING AND FINANCIAL PRESENTATION CHANGES

The Group adopted IFRS 9 - Financial instruments, IFRS 15 - Revenue from contracts with customers and IFRS 16 - Leases in the current year. The financial impacts of the adoption of these
new accounting standards is disclosed in the consolidated financial statements.

As a result of the ongoing customer growth experienced by Cartrack, detailed consideration continues to be given to the average life of customer contracts to ensure that annuity revenue
streams are aligned with the cost of delivering the service. The growth in the customer base over the past few years has provided a more comprehensive database of information and increased
confidence regarding customer retention to support the current year's assessment of the average life of a contract. On the basis of an actuarial assessment undertaken by the Group in the
current year, the Group now depreciates capitalised contract costs over a 60 month period. Contracts which terminate prior to the 60 months result in accelerated depreciation being
recognised immediately in profit or loss.

Accelerated subscriber growth in the future should no longer have a negative impact on operating profits or margins due to this change in accounting estimate.

Certain costs related to customer acquisition were also reclassified from operating expenses to cost of sales in the current year.

The consequence of these changes is that the prior and current year financial results are not directly comparable. However, our results are now considered to be more comparable to the
earnings of our peers both globally and in South Africa.

FINANCIAL PERFORMANCE

GROUP PERFORMANCE

Cartrack delivered a strong performance across its key-growth-metrics, with total revenue growing by 28%, from R1,324 million to R1,693 million, and subscription revenue growing by 30%
year-on-year, from R1,166 million to R1,521 million. Subscription revenue now represents 90% (FY18: 88%) of total revenue and we expect this to increase further with scale. The number of
total subscribers increased by 28%, from 751,380 to 960,798 and the Group continues to maintain a strong pipeline and order book while focusing on fully utilising the distribution
footprint it has expanded in the current financial year. The net new subscriber addition of 209,418 is a significant increase from the prior year net additions of 150,770, an achievement
worth noting.

The decision for ongoing investment in pursuit of sensible growth coupled with the realisation of economies of scale across the businesses and segments will continue to generate robust
results in the future and we foresee margin expansion in the short-term. We maintain a focus on ensuring a meaningful return on capital invested for our shareholders.

While the Group is gearing for continued sustainable growth, it continues to have an industry-leading EBITDA margin of 45% and an operating profit margin of 30%. On the back of these
metrics, management is satisfied with the business performance and delivery of basic EPS of 116 cents compared to 100 cents in the prior year.

The high return on equity of 50% and the return on assets of 28% indicate that capital was efficiently applied across the Group and that Cartrack's business model delivers very attractive
returns on capital employed for shareholders.

It is anticipated that demand for telematics data will continue to increase and lucrative growth opportunities across all distribution channels will increase in all of Cartrack's operating
regions.

SEGMENT OVERVIEW

South Africa

The South African segment delivered particularly strong subscription revenue growth of 31% from R854 million to R1,117 million, while subscribers grew by 30%. The sales mix in FY19
continued to include significantly more bundled sales resulting in a decrease in hardware and installation revenue. The combination of these two delivered strong revenue growth of 27% from
R984 million to R1.246 million in a tough trading environment.

The increase in distribution expenses is largely a result of focused growth in subscriber acquisition driven through increased marketing expenses and expanded headcount. Investment in
sales and marketing has had an immediate positive impact on subscriber growth and we plan to leverage these learnings across our 23 countries globally.

This expense line will right size as subscriber growth translates into revenue growth.

Similarly, the increase in non-distribution expenses is largely a result of the costs associated with collections. Cartrack has made a substantial investment in its back office to manage
the credit risk associated with an economy under pressure. Cartrack will continue to exploit the growth opportunities in South Africa to the extent that operating profit margins can be
maintained at target levels.

South Africa's operating profit of R422 million, up from R376 million in the prior year, represents a 34% margin. We anticipate margin expansion and continued subscriber growth in FY20
Cartrack will continue to invest in data analytics and behavioural science to ensure insurance partners get relevant and accurate data to manage their own risk and enhance the customer's
experience.

As the subscriber base and vehicle community continues to grow, Cartrack will continue to identify and exploit opportunities to realise investment return from the economies of scale that
this platform brings to it's business. This, in turn, gives Cartrack further opportunity to drive operational efficiency and overall profitable performance.

Asia Pacific

Asia Pacific is the second largest revenue contributor and the fastest growing segment in the Group, with total revenue up by 52% from R118 million to R180 million and subscription revenue
up by 51% from R106 million to R160 million. These results are due to an increase of 53% in subscribers.

Given the heavy investment in distribution capabilities, the operating profit increased to R16 million up from 15 million in the prior year, representing a 9% margin. Management remains
mindful that this segment has the largest potential in the long term and, as such, is devoted to acquiring and coaching the necessary talent to ensure successful long-term growth.
The market in this segment remains considerably underpenetrated due to fragmented market participants delivering entry-level telematics offerings, thereby enabling Cartrack to exploit its
more sophisticated, reliable products and customer-centric services. Cartrack remains poised to exploit new opportunities while expanding cross-border relationships as it drives it's
robust and proven offerings to customers in this segment.

Cartrack has also identified the region as having significant strategic benefit to enable the efficient development of world class SaaS products. In line with this, management has taken
the necessary steps to establish a R&D centre in Singapore to support the Group's long term vision.

Europe

The European segment delivered subscriber growth of 15%, total revenue growth of 27%, from R116 million to R148 million, and subscription revenue growth of 28% from R111 million to R142
million. The substantial increase in subscription revenue growth is largely attributable to subscriber sales done in the prior financial year.

Operating profit of R30 million, up from R19 million in the prior year, represents a 20% margin. The investment in distribution and operating capacity will continue as new channels to
market are established. Cartrack is currently evaluating it's strategy to expand into the rest of Europe.

Africa (excluding South Africa)

The African segment (excluding South Africa) delivered an improved performance despite a weak regional economic backdrop. Africa continues to play a critical role in ensuring a high level
of service to customers that increasingly do cross-border travel.

The subscriber base in Africa increased by 4% and subscription revenue grew by 5% from R93 million to R98 million , while total revenue increased by 11% from R105 million to R116 million,
driven by an increase of new sales in the current year.

Operating profit increased to R39 million, up from R32 million in the prior year, representing a 33% margin. Management remains conscious of the importance and potential of this segment
and Africa continues to generate positive cash flows.

USA

Cartrack's investment in the US has yielded many key insights that have positively contributed to the Group and this continues to be strategic in nature.

MANAGING OUR BALANCE SHEET

Capital allocation and cash management are particularly important in a high-growth phase with accelerated investment in customer acquisition. Prudent management in this regard remains a
key focus area which is monitored and managed on an ongoing basis.

Production has been planned to meet growth targets while ensuring that sufficient buffer stock remains available to provide for adequate lead-times associated with global distribution.
Inventory balances increased marginally to meet growing demand.

The higher levels of rental sales and the corresponding increase in capitalised rental assets, the planned and continued investment in distribution and operating capacity of the Group, as
well as the increase in inventory levels to ensure an uninterrupted realisation of the sales pipeline, have resulted in the re-investment of cash flows generated from operating activities
into these business initiatives.

The current and quick ratios of 1.3 (FY18: 0.9) and 0.7 (FY18: 0.5) respectively, reflect a restructuring of short-term overdraft facilities to a structured medium-term loan. Debtors' days
(after prudent provisions for bad debt) remained within target at 33 days (FY18: 30 days). This is a key metric indicating the quality of sales, operational effectiveness and a strong
focus on credit management.

Notwithstanding the significant and continuing investment in customer acquisition, Cartrack remains highly cash generative with a strong cash flow forecast for the foreseeable future.

OUTLOOK1

As we look toward the future, Cartrack remains focused on related telematics and Internet of Things ('IoT') expansion. We continue to drive innovation through our interaction with
customers and strategic research activities. We expect double-digit annuity revenue and subscriber growth to continue for the foreseeable future. Our long term growth is driven by four
key factors:

- Connected Vehicles: We are enhancing our platform for connected-vehicles that is brand agnostic as we experiment in smart-mobility, partnering with two of the world's leading companies in
  pay-as-a-service transportation. This development affirms the strengthening of telematics companies' value proposition and the growing eco-system of services around the motor vehicle. We
  capitalise on our present and future opportunities as we leverage both Original Equipment Manufacturer (OEM) and third-party telematics devices and data.

- Technology Investment Rises: Favourable industry dynamics are driving our position in the marketplace as our customers are becoming reliant on the telematics market to optimise business
  intelligence relating to both assets and people on a global scale. As a result of the rapidly changing market, we will continue to invest in technology, information management and human
  resources, as well as in the distribution  and operating capacity in current and new markets
- Increased Demand for Telematics Data: We have seen a notable rise in demand  for telematics data across the globe. Our key market, South Africa, remains underpenetrated, with many
  opportunities available to provide customer-centric solutions to individuals, enterprise customers and fleets alike. We believe that markets across the globe have a strong need for our
  products
- Exciting New Applications: As part of our drive to add value to our customers,  we have added additional specialist applications to our software suite. This includes our easy-to-use
  administrative and vehicle cost accounting software called MiFleet  and a CRM extension to assist our customers in driving profitability and customer retention within their businesses. As
  an ongoing commitment to our customers' needs, we continue to invest significantly into the enhancement of our existing platforms.

The Africa management team, under a new management structure, with a refreshed distribution and operating capacity, is expected to positively impact the Group results on a sustained
basis. The order book in Europe remains strong while new sales are being actively pursued. While subscriber growth and customer service remain the primary focus in Europe, cost
rationalisation strategies will be implemented in order to increase operating profit and margin. Asia Pacific continues to gain operational mass as a region, with a strong sales pipeline
and many opportunities that are being exploited. As a result of these global strategies, we are confident we will continue to drive strong top line growth and maintain healthy
profitability levels.

Note 1 Any forecast information included in this section has not been reviewed and reported on by Cartrack's
auditor in accordance with 8.40(a) of the JSE listing requirements. The directors take sole responsibility for the statements.

GROUP PROFILE

Cartrack is a leading global Software-as-a-Service provider of solutions for small, medium and large fleets and an insurance telematics, security and safety service provider for both
businesses and consumers. Fleet management tracking and insurance-telematics services remain Cartrack's primary offerings while growing its artificial intelligence, data analytics and
enhanced value-added services capability in order to deliver additional value to it's subscribers. Cartrack solutions are underpinned by real-time actionable business intelligence that
drives tangible return on investment for it's customers. Cartrack is also renowned for it's agility and speed in developing innovative, first-to-market solutions that are aimed at further
enhancing customer experience.

Cartrack's impressive organic growth since being launched in 2004 has resulted in it developing an extensive footprint in 23 countries across Africa, Europe, North America, Asia Pacific
and the Middle East. With a base fast approaching 1,000,000 active subscribers, the Group ranks among the largest telematics companies globally.
Cartrack is a vertically integrated service-centric organisation owning all its unique telematics IP and business processes ranging from in-house design, hardware and software
development, mobile-technical-workshops and sales, to the vehicle tracking tactical teams in specific territories. Hence, Cartrack is in full control of delivering a superior service
while also protecting it's healthy margins.

BASIS OF PREPARATION AND AUDIT OPINION

The statutory auditors, Deloitte & Touche have issued their opinion on the consolidated financial statements for the year ended 28 February, 2019 and have issued an unmodified audit
opinion. The audit was conducted in accordance with the International Standards on Auditing (ISA). The summarised consolidated financial statements and consolidated financial statements
were prepared by Fatima Hassim CA (SA) (Head: Consolidation and Reporting) under the supervision of Morne Grundlingh CA (SA) (Chief Financial Officer) and present a summary of the complete
set of audited consolidated financial statements of Cartrack as approved on 27 May, 2019. The complete set of consolidated financial statements and the audit report is available at
https://www.cartrack.co.za/investor-relations#financial and at Cartrack's registered office for inspection. The directors take full responsibility and confirm that this summarised report
is extracted from audited information, but is not itself audited. The summarised consolidated financial statements were prepared in accordance with the requirements of the Listings
Requirements of the JSE Limited for preliminary financial reports, and the requirements of the Companies Act, 71 of 2008, applicable to summary financial statements.

The Listings Requirements require preliminary financial reports to be prepared in accordance with the framework concepts and the measurement and recognition requirements of International
Financial Reporting Standards ('IFRS') and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards and at a minimum contains the information required by IAS 34. The accounting policies applied in the preparation of the consolidated financial statements from which the
summarised consolidated financial statements were derived are in terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated
annual financial statements, with the exception of IFRS 9 - Financial Instruments, IFRS 15 - Revenue from contracts with customers and IFRS 16 - Leases.

The auditor's report does not report on all of the information contained in this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature
of the auditor's engagement they should obtain a copy of the auditor's report together with the accompanying financial information from the issuer's registered office.

DIVIDEND DECLARATION

Ordinary shareholders are advised that the board of directors has declared a final gross cash dividend of 12 cents per ordinary share (9,6 cents net of dividend withholding tax) for the
year ended 28 February 2019 (the cash dividend), this is compared to a final dividend of 28 cents per ordinary share (22.4 cents net of dividend withholding tax) in the prior year. The
cash dividend will be paid out of profits of the company.

The Group will continue to invest heavily in research and development, data analysis skills and distribution channels to expand and grow the subscriber base significantly. The increased
sales are expected to generate a greater number of bundled contracts which will require funding. The Group will continue to be highly cash generative going forward but will require the
retention of funding necessary to enable Cartrack to invest for growth to the extent necessary to achieve and maintain a debt-free balance sheet.
Consequently, management has re-evaluated the dividend policy, presently being a targeted cover of between 2 and 4 times HEPS. The revised dividend policy provides for a cover of between
2 and 6 times HEPS, to be effective for FY20.

Share code                                                        CTK
ISIN                                                     ZAE000198305
Company registration number                            2005/036316/06
Company tax reference number                               9108121162
Dividend number                                                    10
Gross cash dividend per share                                12 cents
Issued share capital as at declaration date               300 000 000
Declaration date                                Tuesday, 28 May, 2019
Last date to trade cum dividend                Tuesday, 11 June, 2019
Shares commence trading ex-dividend          Wednesday, 12 June, 2019
Record date                                     Friday, 14 June, 2019
Dividend payment date                          Tuesday, 18 June, 2019

Share certificates may not be dematerialised or re-materialised between Wednesday, 12 June, 2019, and Friday, 14 June, 2019, both days inclusive.

TAX IMPLICATIONS

The cash dividend is likely to have tax implications for both resident and non-resident shareholders. Shareholders are therefore encouraged to consult their professional tax advisers
should they be in any doubt as to the appropriate action to take.

In terms of the South African Income Tax Act, the cash dividend will, unless exempt, be subject to dividend withholding tax ('DWT'). South African resident shareholders that are liable for
DWT, will be subject to DWT at a rate of 20% of the cash dividend and this amount will be withheld from the cash dividend. Non-resident shareholders may be subject to DWT at a rate of less
than 20% depending on their country of residence and the applicability of any double tax treaty between South Africa and their country of residence.

On behalf of the board

David Brown        Zak Calisto 
Chairman           Global Chief Executive Officer

Johannesburg 28 May, 2019

Sponsor The Standard Bank of South Africa Limited

SUMMARISED Consolidated statement of financial position
as at 28 February 2019
Figures in Rand thousands                                            Notes         2019            2018
ASSETS
Non-current assets
Goodwill                                                                        122 098         107 597
Intangible assets                                                                13 636               -
Property, plant and equipment                                              4    705 974         516 045
Contract asset                                                                  108 547               -
Deferred tax asset                                                               98 055          49 488
                                                                              1 048 310         673 130
Current assets
Inventories                                                                     206 026         173 680
Trade and other receivables                                                5    215 589         154 952
Loans to related parties                                                            213           2 272
Current tax receivable                                                            7 054           4 143
Cash and cash equivalents                                                        51 906          69 573
                                                                                480 788         404 620
Total assets                                                                  1 529 098       1 077 750
EQUITY AND LIABILITIES
Equity
Share capital                                                                    42 488          42 488
Treasury shares                                                                 (12 105)        (12 105)
Foreign currency translation reserve                                            (15 462)        (41 311)
Retained earnings                                                               806 306         601 224
Equity attributable to equity holders of parent                                 821 227         590 296
Non-controlling interest                                                         16 391          10 125
                                                                                837 618         600 421
Liabilities
Non-current liabilities
Interest bearing loans                                                          218 765               -
Lease obligations                                                                69 256          28 635
Amounts received in advance                                                           -           5 253
Deferred tax liabilities                                                         33 197           2 316
                                                                                321 218          36 204
Current liabilities
Interest bearing loans                                                           20 525               -
Trade and other payables                                                        155 530         111 722
Loans from related parties                                                        7 716           5 486
Lease obligations                                                                47 656          27 637
Current tax payable                                                              42 132          55 911
Provision for warranties                                                          2 564           6 482
Amounts received in advance                                                      80 377          68 860
Bank overdraft                                                                   13 762         165 027
                                                                                370 262         441 125
Total liabilities                                                               691 480         477 329
Total equity and liabilities                                                  1 529 098       1 077 750

SUMMARISED Consolidated statement of profit or loss
for the year ended 28 February 2019
Figures in Rand thousands                                            Notes         2019  2018 Restated*
Revenue                                                                    6  1 692 708       1 324 245
Cost of sales                                                                  (484 700)       (357 093)
Gross profit                                                                  1 208 008         967 152
Other income                                                                      6 279           9 091
Expected credit losses on financial assets                                      (45 171)              -
Operating expenses                                                             (669 197)       (541 947)
Operating profit                                                                499 919         434 296
Finance income                                                                    2 749           3 641
Finance costs                                                                   (31 438)        (15 729)
Profit before taxation                                                          471 230         422 208
Taxation                                                                       (110 182)       (111 726)
Profit for the year                                                             361 048         310 482
Profit attributable to
Owners of the parent                                                            347 806         300 146
Non-controlling interest                                                         13 242          10 336
                                                                                361 048         310 482
Earnings per share
Basic and diluted earnings per share (cents)                                      116,4           100,5

Note
* Refer to note 2.1B for additional information regarding the restated figures.

SUMMARISED CONSOLIDATED STATEMENT OF  COMPREHENSIVE INCOME
for the year ended 28 February 2019
Figures in Rand thousands                                               2019       2018
Profit for the year                                                  361 048    310 482
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that may be reclassified to profit or loss in future  periods
Exchange differences on translating foreign operations                29 928     (2 795)
Other comprehensive income/(loss) for the year net of tax             29 928     (2 795)
Total comprehensive income for the year                              390 976    307 687
Total comprehensive income attributable to
Owners of the parent                                                 373 655    303 386
Non-controlling interest                                              17 321      4 301
                                                                     390 976    307 687

SUMMARISED Consolidated statement of  changes in equity
for the year ended 28 February 2019
Figures in Rand thousands                                                                    Notes    Share      Foreign    Treasury   Retained            Total  Non-controlling  Total equity
                                                                                                    capital     currency      shares   earnings  attributable to         interest
                                                                                                             translation                          equity holders
                                                                                                                 reserve                            of the group
Balance as at 1 March 2017                                                                           42 488      (44 551)    (12 105)   461 745          447 577           14 200       461 777
Profit for the year                                                                                       -            -           -    300 146          300 146           10 336       310 482
Other comprehensive income/(loss)                                                                         -        3 240           -          -            3 240           (6 035)       (2 795)
Total comprehensive income for the year                                                                   -        3 240           -    300 146          303 386            4 301       307 687
Dividends                                                                                                 -            -           -   (158 345)        (158 345)          (7 696)     (166 041)
Acquisition of minority interest1                                                                         -            -           -     (2 322)          (2 322)           1 496          (826)
Acquisition of Cartrack New Zealand Limited - minority interest                                           -            -           -          -                -           (2 176)       (2 176)
Total contributions by and distribution to owners  of company recognised directly in equity               -            -           -   (160 667)        (160 667)          (8 376)     (169 043)
Balance as at 28 February 2018                                                                       42 488      (41 311)    (12 105)   601 224          590 296           10 125       600 421
Balance at 1 March 2018 - as previously reported                                                     42 488      (41 311)    (12 105)   601 224          590 296           10 125       600 421
Adjustment arising on initial application of IFRS 16 (net of tax)                            2C           -            -           -     (1 305)          (1 305)             (37)       (1 342)
Adjustment arising on initial application of IFRS 9 (net of tax)                             2B           -            -           -     (3 922)          (3 922)               -        (3 922)
Balance at 1 March 2018 - restated                                                                   42 488      (41 311)    (12 105)   595 997          585 069           10 088       595 157
Profit for the year                                                                                       -            -           -    347 806          347 806           13 242       361 048
Other comprehensive income                                                                                -       25 849           -          -           25 849            4 079        29 928
Total comprehensive income for the year                                                                   -       25 849           -    347 806          373 655           17 321       390 976
Dividends                                                                                                 -            -           -   (137 497)        (137 497)         (11 018)     (148 515)
Total contributions by and distribution to owners  of company recognised directly in equity               -            -           -   (137 497)        (137 497)         (11 018)     (148 515)
Balance at 28 February 2019                                                                          42 488      (15 462)    (12 105)   806 306          821 227           16 391       837 618

Note
1 Cartrack Technologies Asia Pte. Limited acquired full control of Cartrack Technologies (China) Limited and PT. Cartrack Technologies Indonesia.

SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 28 February 2019
Figures in Rand thousands                                       Notes       2019       2018
Cash flows from operating activities
Cash generated from operations                                           707 208    589 073
Finance income                                                             2 749      3 641
Finance costs                                                            (23 350)   (11 819)
Taxation paid                                                           (142 895)  (113 082)
Net cash generated from operating activities                             543 712    467 813
Cash flows from investing activities
Purchase of property, plant and equipment  and contract assets          (493 515)  (420 067)
Proceeds on disposal of property, plant and equipment                      4 423      3 432
Investment in intangible assets                                          (13 636)         -
Decrease in loans to related parties                                       2 059      2 354
Acquisition of subsidiaries, net of cash acquired                              -     (2 176)
Net cash utilised by investing activities                               (500 669)  (416 457)
Cash flows from financing activities:
Increase in loans from related parties                                     2 230      2 011
Increase in interest bearing loans                                       239 290          -
Net lease obligation (repayments) advances                                (9 599)    21 779
Dividends paid                                                          (148 515)  (166 041)
Increased in holding of subsidiaries                                           -       (826)
Net cash generated from/(utilised by) financing activities                83 406   (143 077)
Total cash movements for the year                                        126 449    (91 721)
Cash and cash equivalents as at the beginning  of the year               (95 454)    (2 227)
Translation differences on cash and cash equivalents                       7 149     (1 506)
Total cash and cash equivalents at the end  of the year                   38 144    (95 454)

ACCOUNTING POLICIES
as at 28 February 2019

1.Presentation of group financial statements

Basis of measurement

The consolidated annual financial statements have been prepared on the historical cost basis with the exception of certain financial instruments which have been fair valued.

Going concern

The consolidated annual financial statements are prepared on the going-concern basis as the directors believe that the required funding will be available to finance future operations and
that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

2.Changes in significant accounting policies
The group adopted IFRS 9, IFRS 15 and IFRS 16 in the current year and the modified retrospective approach, permitted in terms of these standards, was utilised.

A. IFRS 15 Revenue from Contracts with Customers

IFRS 15 replaces IAS 18 Revenue and related interpretations. IFRS 15 establishes a five step model to account for revenue arising from contracts with customers and requires that revenue
be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring of a good or service.

IFRS 15 requires entities to exercise judgement, taking into consideration all the relevant facts and circumstances when applying each step of the revenue recognition model to contracts
with customers. The standard also specifies the accounting for revenue recognition costs directly related to obtaining a customer contract.

The group has adopted IFRS 15 using the modified retrospective approach with the date of initial application being 1 March 2018, and applied the new accounting to all contracts that were
in existence at 1 March 2018, which resulted in no impact on opening retained income.

The group principally generates revenue from providing Fleet management (Fleet), Stolen Vehicle Recovery (SVR) and insurance telematics services. It provides fleet, mobile asset
and workforce management solutions, underpinned by real-time actionable business intelligence, delivered as Software-as-a-Service (SaaS), as well as the tracking and recovery of stolen
vehicles. The underlying revenue arises from the telematics contract arrangements with its customers.

The group separately assessed the performance obligations arising from the upfront hardware cash option and subscription rental option arising from the telematics services contracts
with its customers.

Hardware sales

Hardware revenue is recognised when the telematics unit is sold separately and the customer pays in full for the unit. This accounting treatment is consistent with the basis of revenue
recognition in terms of IAS 18 with the exception that hardware and installation revenues were previously recognised as one transaction whereas these are considered to contain separate
performance obligations in terms of IFRS 15.

Installation revenues

Installation revenue for cash option contracts is recognised when the unit is successfully installed.

Subscription revenues

Revenues arising from the telematics service is recognised as the service is provided. The treatment is consistent with the treatment under IAS 18.
The group has assessed whether its contract arrangement contain a significant financing component and it was determined that the contracts do not contain a significant financing
component.

Contract asset

The group has capitalised incremental sales commissions arising from activated contracts. Under IAS 18, the incremental cost were capitalised to Capital rental units (Property, plant and
equipment) and under IFRS 15 these costs have been capitalised to a Contract asset. This change had no impact on opening retained earnings.

There are no further revenue streams which were impacted by the adoption of IFRS 15.

B. IFRS 9 Financial Instruments

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three
aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

The group applied IFRS 9 prospectively, with an initial application date of 1 March 2018. The group has not restated the comparative information, due to the adoption of the modified
retrospective approach. Differences arising from the adoption of IFRS 9 have been recognised directly in retained earnings.

The effect of adopting IFRS 9 at 1 March 2018 was as follows:

Figures in Rand thousands                                 Impact of
                                                    adopting IFRS 9
                                                    at 1 March 2018
Retained earnings
Recognition of expected credit losses under IFRS 9           (5 323)
Related deferred tax                                          1 401
Impact on retained earnings at 1 March 2018                  (3 922)

i. Classification and measurement of financial assets and financial liabilities
IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, Fair value through OCI and Fair value through profit or loss. The
classification is based on two criteria: the group's business model for managing the assets; and whether the instruments' contractual cash flows represent 'solely payments of principal and
interest' on the principal amount outstanding.

The assessment of the group's business model was made as of the date of initial application, 1 March 2018. The assessment of whether contractual cash flows on debt instruments are solely
comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets.

The classification and measurement requirements of IFRS 9 has not had a significant impact to the group.

The group has not designated any financial liabilities as at fair value through profit or loss or OCI. There are no changes in classification and measurement for the group's financial
liabilities.

The following table and the accompanying notes below explain the original measurement categories under IAS 39 and the new measurement categories under IFRS 9 for each class of the group's
financial assets and financial liabilities as at 1 March 2018.

The impact of adopting IFRS 9 on the carrying amounts of financial assets at 1 March 2018 relates solely to the new impairment requirements.

Figures in Rand thousands                                   Classification  Classification  Carrying value  Carrying value
                                                              under IAS 39    under IFRS 9    amount under          amount
                                                                                                    IAS 39           under
                                                                                                                    IFRS 9
Financial Assets
Trade and other receivables  Loans and receivables at amortised costs       Amortised Cost         154 952         149 629
Loans to related parties     Loans and receivables at amortised costs       Amortised Cost           2 272           2 272
Cash and cash equivalents    Loans and receivables at amortised costs       Amortised Cost          69 573          69 573
Total financial assets                                                                             226 797         221 474
Financial Liabilities
Bank overdrafts              Other financial liabilities at amortised cost  Amortised Cost        (165 027)       (165 027)
Loans from related parties   Other financial liabilities at amortised cost  Amortised Cost          (5 486)         (5 486)
Instalment sales obligation  Other financial liabilities at amortised cost  Amortised Cost         (56 272)        (56 272)
Trade and other payables     Other financial liabilities at amortised cost  Amortised Cost        (111 722)       (111 722)
Provision for warranties     Other financial liabilities at amortised cost  Amortised Cost          (6 482)         (6 482)
Total financial liabilities                                                                       (344 989)       (344 989)

ii. Impairment of financial assets

IIFRS 9 replaces the 'incurred loss' model in IAS 39 with an 'expected credit loss' (ECL) model. IFRS 9 requires the group to recognise an allowance for ECL for all debt instruments not
held at fair value through profit or loss.

The group applies the simplified approach to calculate the ECL of trade receivables and contract assets. The provision rates are based on days past due for grouping that have similar loss
patterns. The provision matrix is initially based on the group's historical observed default rates and then adjusted. The group calibrates the matrix to adjust the historical credit loss
experience with forward looking information. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed.
C. IFRS 16 Leases

IFRS 16 applies to annual reporting periods beginning on or after 1 January 2019, but can be early adopted. The group adopted IFRS 16 as from 1 March 2018.

The following summarises the impact, net of tax, of transition to the IFRS 16 on retained earnings at 1 March 2018.

Figures in Rand thousands                                                       Impact of
                                                                                 adopting
                                                                                  IFRS 16
                                                                             1 March 2018
Retained earnings
Reversal of lease payments recognised under IAS 17                                 31 627
Depreciation of right-of-use assets                                               (29 001)
Unwinding of finance cost element recognised in capitalised lease liability        (3 822)
Related deferred tax                                                                 (109)
Impact on retained earnings at 1 March 2018                                        (1 305)
Non-controlling interests
Reversal of lease payments recognised under IAS 17                                    789
Depreciation of right-of-use assets                                                  (721)
Unwinding of finance cost element recognised in capitalised lease liability          (100)
Related deferred tax                                                                   (5)
Impact on non-controlling interests at 1 March 2018                                   (37)

i. Transition

The group has chosen to apply the modified retrospective approach on adoption of IFRS 16. It includes certain relief in terms of the measurement of the right-of-use asset and the lease
liability at 1 March 2018. The modified retrospective approach does not require a restatement of comparatives. IFRS 16 applies to annual reporting periods beginning on or after 1 January 2019,
but can be early adopted. The group adopted IFRS 16 as from 1 March 2018.

2.1 Changes in significant accounting estimates and restatement of comparative disclosures

A. Change in accounting estimate in relation to expected useful life of capital rental units and contract assets

The group undertook a detailed assessment in the current year as done in prior years of the expected life cycle of customer contracts across the group. The continued growth in the
customer base over the past few years has provided a more comprehensive database of information and more certainty to support the assessment of the average useful life of contracts. On
the basis of actuarial-based assessment, the group changed its estimate of the average useful life to 60 months, which directly impacts the depreciation of capital units and contract
assets. Contracts which terminate prior to 60 months result in accelerated depreciation of the underlying capital rental and the contract asset being recognised immediately.

This change in estimate was accounted for prospectively in terms of IAS 16 and IAS 8. Detailed below is the accounting impact on profit or loss of the change in the current year, which is
primarily due to the substantial growth in capital units experienced during FY19.

Figures in Rand thousands                                    Impact for  the year ended
                                                                       28 February 2019
Statement of profit or loss
Recognition of depreciation over a period of 60 months                          206 774
Recognition of depreciation over a period of 36 months                         (325 246)
Impact on profit and loss                                                      (118 472)
Statement of financial position
Increase in net book value of property, plant and equipment                     118 472
Impact on property, plant and equipment                                         118 472

The future impact is not determinable as this depends on future revenue growth which drives the extent of central rental units. However, going forward, accelerated growth in the customer
sectors in which the group currently operates is not expected to have a similar accounting impact on profit or loss.

B. Restatement of comparative disclosures

i. Restatement of cost of sales and operating expenses disclosure

The depreciation of capitalised sales commissions, motor vehicle costs and technician salaries were erroneously included as part of operating expenses in 2018. The group believes that
these costs relate directly to cost of sales and therefore the depreciation of these costs has been reclassified in 2018 into cost of sales, to ensure consistency with the current year
disclosure  of these costs.

The restatement had no impact on profits, earnings per share, headline earnings per share, cash flows or the financial position of the group, it only impacted on the disclosure of
operating expenses and cost of sales as detailed below:

Figures in Rand thousands              Impact of
                            reclassification for
                                  the year ended
                                28 February 2018
Statement of profit or loss
Operating expenses                       123 144
Cost of sales                           (123 144)
Impact on operating profit                     -

3. Segment reporting

The group is organised into geographical business units and has five reportable segments.

The CODM monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment.

Segment results were fundamentally evaluated in the current year based on revenue and EBITDA as the profit or loss measures. As a result, the 2018 comparatives have been presented on a
consistent basis with the 2019 disclosures.

The segment's revenue, depreciation and EBITDA information provided to the group CEO, group CFO and group COO for the reportable segments for the year ended 28 February 2019 is as
follows:

Figures in Rand thousands     Subscription   Hardware and  Eliminations    Inter-segment      Hardware and  Total revenue  Depreciation   EBITDA
                                   revenue  other revenue                        revenue     other revenue
                                                   before                                            after
                                             eliminations                                 eliminations and
                                                                                             inter-segment
28 February 2019
Geographical business units
South Africa                     1 116 829        623 382      (486 604)          (7 861)          128 917      1 245 746       201 988  626 164
Africa-Other                        97 605         10 171             -            7 861            18 032        115 637         3 372   41 650
Europe                             142 204         11 463        (6 075)               -             5 388        147 592        33 488   60 418
Asia-Pacific and Middle East       159 997         42 896       (23 150)               -            19 746        179 743        22 088   38 404
USA                                  3 905          6 493        (6 408)               -                85          3 990           575   (5 206)

Total                            1 520 540        694 405      (522 237)               -           172 168      1 692 708       261 511  761 430

28 February 2018
Geographical business units
South Africa                       854 416        562 704      (424 561)          (8 868)          129 275        983 691       147 195  523 350
Africa-Other                        92 970          2 805             -            8 868            11 673        104 643         2 863   34 671
Europe                             111 065          9 813        (4 615)               -             5 198        116 263        45 583   64 527
Asia-Pacific and Middle East       105 689         22 809       (10 242)               -            12 567        118 256        20 638   35 939
USA                                  1 392              -             -                -                 -          1 392           225   (7 687)

Total                            1 165 532        598 131      (439 418)               -           158 713      1 324 245       216 504  650 800

There are no customers which contribute in excess of 10% of the group revenue.

Reconciliation of EBITDA to profit before taxation

Figures in Rand thousands          2019       2018
EBITDA                          761 430    650 800
Depreciation                   (261 511)  (216 504)
Operating profit                499 919    434 296
Finance income                    2 749      3 641
Finance costs                   (31 438)   (15 729)
Profit before taxation          471 230    422 208

Figures in Rand thousands          2019       2018
Total assets
South Africa                    975 638    627 548
Africa-Other                    162 373    138 725
Europe                          217 623    196 314
Asia-Pacific and Middle East    165 256    105 754
USA                               8 208      9 409
Total                         1 529 098  1 077 750

Figures in Rand thousands          2019       2018
Total liabilities
South Africa                    493 751    346 091
Africa-Other                     46 923     37 812
Europe                           87 286     52 089
Asia-Pacific and Middle East     63 364     39 482
USA                                 156      1 855
Total                           691 480    477 329

4. Property Plant and equipment

                                  2019          2018
Figures  in Rand  thousands       Cost   Accumulated  Carrying     Cost   Accumulated  Carrying
                                        depreciation     value           depreciation     value
Buildings                        1 962             -     1 962    6 592        (2 305)    4 287
Capital rental units*        1 091 014      (541 032)  549 982  761 803      (334 430)  427 373
Computer software                8 542        (3 720)    4 822    5 939        (1 419)    4 520
Furniture and fixtures           9 864        (5 855)    4 009    7 314        (4 381)    2 933
IT equipment                    58 770       (29 491)   29 279   35 865       (22 413)   13 452
Leasehold improvements          15 430       (10 355)    5 075    5 333        (4 208)    1 125
Motor vehicles                 116 693       (45 733)   70 960   91 964       (31 103)   60 861
Office equipment                 4 926        (4 063)      863    3 667        (3 169)      498
Plant and machinery              2 783        (2 481)      302    2 166        (1 469)      697
Right-of-use assets**           53 365       (15 226)   38 139        -             -         -
Security equipment               1 235          (654)      581      805          (506)      299
Total                        1 364 584      (658 610)  705 974  921 448      (405 403)  516 045

Reconciliation of property, plant and equipment - 2019

Figures in Rand thousands        Opening   IFRS 15  IFRS 16     Opening  Additions  Disposals  Reclassifications  Translation  Depreciation    Total
                                 balance                        balance                                           adjustments
                           as previously                       restated
                                reported
Buildings                          4 287         -        -       4 287          -          -             (2 560)         235             -    1 962
Capital rental units*            427 373   (58 796)       -     368 577    353 655       (116)               581       11 063      (183 778) 549 982
Computer software                  4 520         -        -       4 520      2 103          -                438         (234)       (2 005)   4 822
Furniture and fixtures             2 933         -        -       2 933      1 930          -                178          366        (1 398)   4 009
IT equipment                      13 452         -        -      13 452     27 636        (33)            (2 603)       2 528       (11 701)  29 279
Leasehold improvements             1 125         -        -       1 125      3 357          -              4 042         (659)       (2 790)   5 075
Motor vehicles                    60 861         -        -      60 861     31 831     (1 823)              (331)       1 018       (20 596)  70 960
Office equipment                     498         -        -         498        927          -                (41)          55          (576)     863
Plant and machinery                  697         -        -         697        490        (94)               (39)         (70)         (682)     302
Right-of-use assets**                  -         -   34 128      34 128     14 897          -                 23        3 919       (14 828)  38 139
Security equipment                   299         -        -         299        132          -                312           (1)         (161)     581
Total                            516 045   (58 796)  34 128     491 377    436 958     (2 066)                 -       18 220      (238 515) 705 974

Reconciliation of property, plant and equipment - 2018

Figures in Rand thousands  Opening  Additions      Acquisition    Disposals  Translation  Depreciation    Total
                           balance             of subsidiaries               adjustments
Buildings                    4 234        821                -            -          380        (1 148)   4 287
Capital rental units*      258 077    358 692               88            -        5 089      (194 573) 427 373
Computer software            2 043      2 696                -            -          153          (372)   4 520
Furniture and fixtures       2 712      1 409                -          (61)         (38)       (1 089)   2 933
IT equipment                 7 687     13 309               22         (181)        (984)       (6 401)  13 452
Leasehold improvements         303      1 086                -            -         (126)         (138)   1 125
Motor vehicles              32 909     41 433              227       (1 900)         319       (12 127)  60 861
Office equipment               232        361                -            -          257          (352)     498
Plant and machinery            753        164                -            -          (20)         (200)     697
Right-of-use assets**            -          -                -            -            -             -        -
Security equipment             305         96                -            -            2          (104)     299
Total                      309 255    420 067              337       (2 142)       5 032      (216 504) 516 045

Notes
* In terms of IFRS 15, contract assets are disclosed separately. The costs capitalised to contract assets were previously capitalised to Capital rental units. An
amount of R58 795 669 has been reclassified from Property, Plant and Equipment to Contract assets on 1 March 2018.
** In terms of IFRS 16, leases which meet the requirements of the accounting standard are recognised as right of use asset in Property, Plant and Equipment and depreciated over the
lease term.

Assets subject to instalment sale agreements

Figures in Rand thousands                                                                            2019    2018
The carrying value of assets subject to instalment sale agreements is as follows:
Motor vehicles                                                                                     70 530  58 031

5.Trade and other receivables

Figures in Rand thousands           2019      2018
Trade receivables                221 956   151 959
Expected credit loss provision   (43 670)  (30 382)
                                 178 286   121 577
Prepayments                       21 420    20 233
Deposits                           3 964     2 912
Sundry debtors                     9 218     8 984
Value added tax                    2 701     1 246
                                 215 589   154 952

Loans and receivables
The group recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost.

The determination of the expected credit loss provision is calculated on a basis specific to each customer grouping and jurisdiction in which the group operates and requires significant
judgement.

Reconciliation of allowance for expected credit loss on trade receivables

Figures in Rand thousands                             2019      2018
Opening balance                                    (30 382)  (33 898)
Increase in allowance for expected credit losses   (69 091)  (36 043)
Amounts utilised                                    55 803    39 559
Closing balance                                    (43 670)  (30 382)

6. Revenue
The effect of applying IFRS 15 on the group's revenue from contracts with customers is described in Note 2A.

A. Revenue streams

The group principally generates revenue from providing Fleet management ('Fleet'), Stolen Vehicle Recovery ('SVR') and insurance telematics services. It provides fleet, mobile asset and
workforce management solutions, underpinned by real-time actionable business intelligence, delivered as Software-as-a-Service (SaaS), as well as the tracking and recovery of stolen
vehicles.

Figures in Rand thousands                   2019       2018
Revenue from contracts with customers
Subscription revenue                   1 520 540  1 165 532
Hardware sales                           126 299    138 639
Installation revenue                       2 578          -
                                       1 649 417  1 304 171
Other revenue
Miscellaneous rental contract fees        43 291     20 074
Total revenue                          1 692 708  1 324 245

B. Disaggregation of revenue from contracts with customer

In the following table, revenue from contracts with customers is disaggregated by primary geographical market, major products and service lines and timing of revenue recognition.

                                                             Subscription revenue           Hardware sales   Installation revenue    Miscellaneous rental 
                                                                                                                                           contract fees              Total
Figures in Rand thousands                                    2019            2018     2019            2018          2019     2018        2019       2018          2019       2018
Primary geographical markets
South Africa                                            1 116 829         854 416   84 351         110 512         1 721        -      42 845     18 763     1 245 746    983 691
Africa-Other                                               97 605          92 970   17 459          11 449           356        -         217        224       115 637    104 643
Europe                                                    142 204         111 065    5 207           5 198           107        -          74          -       147 592    116 263
Asia-Pacific and Middle East                              159 997         105 689   19 282          11 480           394        -          70      1 087       179 743    118 256
USA                                                         3 905           1 392        -               -             -        -          85          -         3 990      1 392
                                                        1 520 540       1 165 532  126 299         138 639         2 578        -      43 291     20 074     1 692 708  1 324 245
Timing of revenue recognition
Products transferred at a point in time                         -               -  126 299         138 639         2 578        -      43 291     20 074       172 168    158 713
Products and services transferred over time             1 520 540       1 165 532        -               -             -        -           -          -     1 520 540  1 165 532
Total revenue                                           1 520 540       1 165 532  126 299         138 639         2 578        -      43 291     20 074     1 692 708  1 324 245

C. Performance obligations and revenue recognition policies

Revenue is measured based on the consideration specified in a contract with a customer. The group recognises revenue when it transfers control over a good or service to a customer.

The following table provides information about the nature and timing of the satisfaction of performance obligations in contracts with customers, including significant payment terms, and
the related revenue recognition policies

Type of product/service             Payment option         Nature and timing of satisfaction of performance obligations,           Revenue recognition under IFRS 15                            Revenue recognition under IAS 18
                                                           including significant payment terms                                    (applicablefrom 1 March 2018)                                (applicable before 1 March 2018)     

Hardware sales                      Cash                   Customers obtain control of the hardware                                The group recognises revenue from the sale of                The group recognised revenue from
                                                           when the units are successfully installed.                              hardware when the unit is installed, and control             the sale of hardware and installations when significant risks and
                                                           Invoices are generated at that point in time.                           and ownership has been transferred to the                    rewards of ownership were transferred to the
                                                           The payment terms are usually 30 days.                                  customer.                                                    customer upon installation.

Installation revenue                Cash                   Installation is recognised when the unit is                             The group recognises revenue when the unit                   The group recognised revenue from the sale of
                                                           successfully installed. The payment terms                               is installed, and control and ownership has                  installations when significant risks and rewards of
                                                           are generally 30 days.                                                  been transferred to the customer.                            ownership were transferred to the customer upon
                                                                                                                                                                                                installation. This was included as part of hardware revenue.

Subscription revenue                Cash and rental        Services will be provided to a customer                                 The group recognises revenue over time                       The group recognised revenue over time as the 
                                                           once a unit is successfully installed until                             as the telematics services are provided.                     services were provided.
                                                           cancellation of the contract. Invoices                                                                
                                                           are generated monthly in advance and
                                                           payable on presentation.
                                                           
 
Miscellaneous rental contract fees  Cash and rental        Miscellaneous rental contract fees will be                              The group recognises revenue when the service                The group recognised revenue when the service was
                                                           charged to a customer when a service is                                 is provided.                                                 provided.
                                                           provided. The payment terms
                                                           are generally 30 days.
 

7. Related parties
                                                                       Relationships
   Related parties Onecell Community Phones Proprietary Limited        IJ Calisto has a beneficial interest in this company
                   Onecell Community Services Proprietary Limited      IJ Calisto has a beneficial interest in this company
                   Onecell Data Solutions Proprietary Limited          IJ Calisto has a beneficial interest in this company
                   Onecell Namibia Proprietary Limited                 IJ Calisto has a beneficial interest in this company
                   Onecell Holdings Proprietary Limited                IJ Calisto has a beneficial interest in this company
                   Purple Rain Properties No. 444 Proprietary Limited  IJ Calisto has a beneficial interest in this company
                   Onecell Proprietary Limited                         IJ Calisto has a beneficial interest in this company
                   Cartrack Education Fund (NPO)                       Bursary funding - South Africa entities
                   A.H. Nyimbo                                         Shareholder - Retriever Limited
                   J Marais                                            Shareholder - Cartrack Holdings Limited
                   P Lim                                               Shareholder - Cartrack Technologies PHL. INC
                   SM Machel Jr.                                       Shareholder - Cartrack Limitada
                   Pro-Fit Fitment Centre Proprietary Limited          BEE funded company - Cartrack Proprietary Limited
                   J De Wet                                            Shareholder - Cartrack New Zealand Limited
                   Brick Capital Polska Sp.Zo.O                        IJ Calisto has a beneficial interest in this company
                   Brick Capital Lda                                   IJ Calisto has a beneficial interest in this company
                   Georgem Proprietary Limited                         J Marais has a beneficial interest in this company
                   JMPG Marcelino                                      Shareholder of Autoclub Lda
                   Cartrack Mozambique LDA                             IJ Calisto has a beneficial interest in this company
                   CFC Sp.Zo.O                                         B Debski is a director
                   Prime Business B.Debski                             B Debski is a director
                   Karoo Pvt Limited                                   IJ Calisto has a beneficial interest in this company

Subsidiary companies    Cartrack Proprietary Limited
                        Retriever Limited
                        Cartrack Tanzania Limited
                        Cartrack Engineering Technologies Limited
                        Cartrack Namibia Proprietary Limited
                        Cartrack Technologies Proprietary Limited
                        Cartrack Technologies Pte. Limited
                        Cartrack Management Services Proprietary Limited
                        Drive and Save Proprietary Limited
                        Cartrack Manufacturing Proprietary Limited
                        Cartrack North East Proprietary Limited
                        Cartrack Executive Trust
                        Cartrack Limitada
                        Cartrack Polska.SP.ZO.O
                        Cartrack Fleet Management Proprietary Limited
                        Zonke Bonke Telecoms Proprietary Limited
                        Plexique Proprietary Limited
                        Combined Telematics Services Proprietary Limited
                        Cartrack Investments UK Limited
                        Cartrack Malaysia SDN.BHD
                        Cartrack Technologies PHL.INC
                        Cartrack Technologies South East Asia Pte. Limited
                        Cartrack Technologies (China) Limited
                        Cartrack Europe SGPS, S.A.
                        Cartrack Capital SGPS, S.A.
                        Cartrack Espana, S.L.
                        Cartrack Australia Proprietary Limited
                        PT. Cartrack Technologies Indonesia
                        Cartrack Technologies (Thailand) Company Ltd

  Figures in Rand thousands                                                            2019     2018
  Related party balances
  Loan accounts - owing (to)/by related parties
  AH Nyimbo                                                                               -     (996)
  Pro-Fit Fitment Centre Proprietary Limited                                              -    2 063
  Cartrack Education Fund (NPO)                                                         200      200
  J Marais                                                                               13        -
  J De Wet                                                                           (5 551)  (3 043)
  P Lim                                                                              (2 151)  (1 443)
  Onecell Proprietary Limited                                                             -        9
  Onecell Proprietary Limited                                                           (14)      (4)
                                                                                     (7 503)  (3 214)
  Amounts included in trade receivables/(trade payables) regarding related parties
  Trade receivables
  Onecell Proprietary Limited                                                         6 664    1 323
  Pro-Fit Fitment Centre Proprietary Limited)                                             -    4 919
  Onecell Holdings Proprietary Limited                                                    3        3
  Cartrack Mozambique LDA                                                                 -    1 655
  Trade payables
  Pro-Fit Fitment Centre Proprietary Limited                                              -     (889)
  Onecell Proprietary Limited                                                           (52)    (105)
  Onecell Community Services Proprietary Limited                                       (339)    (676)
  Purple Rain Properties No. 444 Proprietary Limited                                      -     (890)
  Onecell Holdings Proprietary Limited                                                  (21)     (30)
  Brick Capital LDA                                                                       -       (8)
                                                                                      6 255    5 302
  Related party transactions
  Sales to related parties
  Onecell Proprietary Limited                                                        (4 042)  (6 191)
  CFC.Sp.Zo.O                                                                          (114)       -
  Pro-Fit Fitment Centre Proprietary Limited                                              -   (1 463)
  Cartrack Mozambique LDA                                                                 -   (1 655)
  Brick Capital Polska SP. Z0.0                                                          (1)       -
  Prime Business B. Debski                                                              (44)       -
                                                                                     (4 201)  (9 309)
  Purchases from related parties
  Onecell Holdings Proprietary Limited                                                  208      433
  Onecell Proprietary Limited                                                           467      395
  CFC.Sp.Zo.O                                                                         7 601        -
  Prime Business B. Debski                                                              148        -
  Onecell Community Phones Proprietary Limited                                        1 819    2 263
  Pro-Fit Fitment Centre Proprietary Limited                                              -    6 322
                                                                                    10  243    9 413
  Rent paid to related parties
  Purple Rain Properties No. 444 Proprietary Limited                                 17 613    6 598
  Prime Business B. Debski                                                              836
  Brick Capital Lda                                                                   3 921        -
  Brick Capital Polska Sp.Zo.o                                                        1 694    2 022
                                                                                     24 091    8 620

8. Earnings per share information
                                                                                       2019     2018
8.1 Basic earnings per share
 The calculation of basic earnings per share has been based
 on the profit attributable to ordinary shareholders and the
 weighted average number of ordinary shares in issue.
 Basic earnings per share
 Basic earnings per share (cents)                                                     116,4    100,5
 Weighted average number of ordinary shares ('000)
 Issued at the beginning of the year                                                300 000  300 000
 Effect of treasury shares held                                                      (1 234)  (1 234)
                                                                                    298 766  298 766
 Basic earnings 
 Profit attributable to ordinary shareholders                                       347 806  300 146

8.2 Headline earnings per share

  The calculation of headline earnings per share has been based on
  the profit attributable to ordinary shareholders computed in terms
  of the Saica Circular 04/2018 and the weighted average
  number of ordinary shares in issue as determined above in basic
  earnings per share section.
  Headline earnings per share (cents)                                                 115,8    100,5
  Reconciliation between basic earnings and headline earnings
  Basic earnings                                                                    347 806  300 146
  Adjusted for
  Profit on disposal of property, plant and equipment net of tax                     (1 697)    (929)
                                                                                    346 109  299 217
8.3 Diluted earnings per share

 There are no dilutive instruments and therefore diluted earnings per share is the same as basic earnings per share.

9. Commitments

There are no capital commitments at the year-end.

10.Events after the reporting period

Cartrack Proprietary Limited disposed of 51% of its interest in the share capital of Plexique Proprietary Limited to Bumbene House Proprietary Limited, a 100% black owned company, as part
of its B-BBEE strategy. This transaction is not considered material to the group.

On 28 February 2019, One August Holdings Proprietary Limited disposed of 204 500 000 ordinary shares to Karoo Private Limited in an off-market transaction at R13,44 per share. This
transaction was entered into for the purpose of Karoo Private Limited (owned by IJ Calisto and his direct family) acquiring and owning the shares in Cartrack.

The share price was determined by using the Volume Weighted Average Price over the preceding 30-day period. The fulfilment of the transaction is subject to applicable regulatory
requirements and other conditions precedent. Prior clearance for this transaction was obtained and it was announced on SENS on 1 March 2019.

Dividends of 12 cents per share will be declared and paid on 18 June 2019.

The directors are not aware of any other material event which occurred after the reporting date and up to the date of this report for the company.

28 May 2019

CORPORATE INFORMATION
Registered office
Cartrack Corner
11 Keyes Road
Rosebank
Johannesburg
2196
(PO Box 4709, Rivonia, 2128)

Directors
Independent non-executive directors
David Brown (Independent Chairman)
Thebe Ikalafeng
Kim White
Sharoda Rapeti

Executive directors
Isaias Jose Calisto (Global Ghief Executive Officer)
Morne Grundlingh (Global Chief Financial Officer) - appointed on 1 September 2018

Company Secretary
Anname de Villiers
Cartrack Corner
11 Keyes Road
Rosebank
Johannesburg
2196
(PO Box 4709, Rivonia, 2128)

Sponsor
The Standard Bank of South Africa Limited
30 Baker Street
Rosebank
2109
(PO Box 61344, Marshalltown, 2107)

Transfer Secretary
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Street
Rosebank
2001
(PO Box 61051, Marshalltown, 2107)


Date: 28/05/2019 07:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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