2. Mix Telematics
• Based in South Africa
• SaaS Firm specializing in Fleet and Mobile Asset Mgmt
• Founded in 1996
• 1002 Employees
• 15 Offices serving 120 countries
• Listed on JSE Nov 2007
• IPO on NYSE Aug 2013
• Small Cap
3. Telematics
• GPS Tracking and data collection on commercial fleet and
personal vehicles
• Protects investment in vehicles and provides actionable insight
– Fuel and Operating Costs to Improve Efficiency
– Enhanced regulatory compliance
– Promotes driver safety
– Manages risk and mitigates theft
• Platform allows fleet managers to access historical and real time
data through mix technology platforms.
9. Notable Events
• 2007 acq. OmniBridge
– S African, Intl
• 2008 acq. Tripmaster and Safe Drive
– Australia, UAE, US
– Broadened cust base, expanded safety and training solutions
• 2012 acq Intellichain
– Broadened transportation mgmt software functionality
• Oct 2015 closed deal with Halliburton for N.A. 15,000 veh fleet
• May 2016 announced buyback of 25.33% of shares @ 1.28% prem, from
Imperial Holdings Ltd.
10. Market Stats
• Fleet mgmt solutions market: Large, Growing, Under Penetrated
• 309M registered commercial vehicles globally
• Estimated growth to 390M vehicles by 2020
• Market Penetration 9.5%
• Non commercial – 38M vehicles in South Africa, Brazil
– Underpenetrated for Safety and Security Solutions
– Improved vehicle theft recovery rates and lower insurance rates
• Application beyond vehicles, to any mobile asset
11. The Good Stuff
• Mix has over 500,000 Vehicles subscribed
• 5,000 fleet operators, 600 large fleet operators
• Contracts 3-5 years, annual renewal, 90% retention rate
• Operating Margin 13.38% (5 year avg)
• Net Margin 10.37%(5 year avg)
• Price/Book 1.44
• ROIC 11.79% Wacc 11.42% (5 year avg)
• The future, autonomous vehicles, insurance industry
18. Risks
• Loss of existing cust. or inability to attract new cust.
• Failure of solutions to achieve or maintain market acceptance
• IP Protection, Data Breach
• Actual or Threatened IP litigation against Mix
• Regulatory developments
• Key Personnel Loss
• ZAR / USD
Low price to book, signal stock is possibly undervalued
ROIC to Wacc company is doing a good job at using its money to generate returns effectively
Hardware 2013 – 2015 revenue has decreased due to ZAR/USD (high cost) and technology improvement (on average -8.6% per year)
Hardware 2014-2015 drop was due to a one time sale that was not replicated
Subscribers, strong acquisition of new cust. Avg annual increase in subscribers 23% 2013-2015
Subscribers, project continued new acquisition at 2015 rate (13.8%) down to about 12 and eventually down to word GDP
Subscription price currently around 160$ per year per vehicle, price has decreased on avg 5% per year, and with most technology we are expecting the price to continue to decrease per year at around 3%
Timble Navigation – US Co. founded 1978 has fleet management telematics, also operates many other business segments
Pointer Telelocation – Israel – business model very similar to Mix
Novatel – US – similar telematics business, also competes in mobile hotspot industry
We’ll talk about this more when it comes to sensitivity
