MiX Telematics Announces Financial Results for Fourth Quarter and Preliminary Results for Full Fiscal Year 2019

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MiX Telematics Limited (NYSE: MIXT, JSE: MIX), a leading global provider
of fleet and mobile asset management solutions delivered as
Software-as-a-Service (SaaS), today announced financial results for its
fourth quarter and for its full fiscal year 2019, which ended March 31,
2019.

“Our fourth quarter marked a solid continuation of trends we have
experienced throughout the year. The strong performance was driven by
the continued growth in our premium fleet subscriptions globally,
improvements in ARPU and ongoing operating leverage in the business,”
said Stefan Joselowitz, Chief Executive Officer of MiX Telematics.
“During fiscal 2019, we upwardly revised our long-term adjusted EBITDA
margin target to 35% plus, as we expanded our margins by almost 500
basis points to 30.5% and generated record positive free cash flow of
R177 million. We remain confident in our ability to achieve our
long-term goals given our strong pipeline and ability to further enhance
margin accretion across the business.”

Financial performance for the three months ended March 31, 2019

Subscription revenue: Subscription revenue was R443.8 million
($30.7 million), an increase of 18.8% compared with R373.6 million
($25.8 million) for the fourth quarter of fiscal 2018. Subscription
revenue increased by 13.1% on a constant currency basis, year over year.
Subscription revenue benefited from an increase of 73,600 subscribers
from April 2018 to March 2019, representing an increase in the
subscriber base of 10.9% during that period. Subscription revenue also
benefited from higher average revenue per user.

Total revenue: Total revenue was R507.9 million ($35.1 million),
an increase of 12.0% compared to R453.5 million ($31.3 million) for the
fourth quarter of fiscal 2018. Total revenue increased by 6.3% on a
constant currency basis, year over year. Hardware and other revenue was
R64.1 million ($4.4 million), a decrease of 19.8%, compared to
R79.9 million ($5.5 million) for the fourth quarter of fiscal 2018.

Gross margin: Gross profit was R339.8 million ($23.5 million),
compared to R296.0 million ($20.4 million) for the fourth quarter of
fiscal 2018. Gross profit margin was 66.9%, compared to 65.3% for the
fourth quarter of fiscal 2018.

Operating margin: Operating profit was R97.8 million ($6.8
million), compared to R73.8 million ($5.1 million) for the fourth
quarter of fiscal 2018. Operating margin was 19.3%, compared to 16.3%
for the fourth quarter of fiscal 2018. In addition to the gross margin
improvement above, the margin expansion was also attributable to
improved economies of scale and ongoing cost management initiatives.
Operating expenses of R242.3 million ($16.7 million) increased by R18.6
million ($1.3 million), or 8.3%, compared to the fourth quarter of
fiscal 2018. Operating expenses represented 47.7% of revenue compared to
49.3% of revenue in the fourth quarter of fiscal 2018.

Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R167.6
million ($11.6 million), compared to R130.2 million ($9.0 million) for
the fourth quarter of fiscal 2018. Adjusted EBITDA margin, a non-IFRS
measure, for the fourth quarter of fiscal 2019 was 33.0%, compared to
28.7% for the fourth quarter of fiscal 2018.

Profit for the period and earnings per share: Profit for the
period was R77.0 million ($5.3 million), compared to R64.3 million ($4.4
million) in the fourth quarter of fiscal 2018. Profit for the period
included a net foreign exchange loss of R0.1 million ($0.01 million)
before tax. During the fourth quarter of fiscal 2018, profit for the
period included a net foreign exchange loss of R1.2 million ($0.1
million).

Earnings per diluted ordinary share were 13 South African cents,
compared to 11 South African cents in the fourth quarter of fiscal 2018.
For the fourth quarter of fiscal 2019, the calculation was based on
diluted weighted average ordinary shares in issue of 580.1 million
compared to 580.8 million diluted weighted average ordinary shares in
issue during the fourth quarter of fiscal 2018.

The Group’s effective tax rate was 22.1%, compared to 13.7% in the
fourth quarter of fiscal 2018. Ignoring the impact of net foreign
exchange gains and losses net of tax and share based compensation costs
related to Performance Share Awards net of tax, the tax rate which was
used in determining adjusted earnings below, was 20.4% compared to 26.9%
in the fourth quarter of fiscal 2018.

During the fourth quarter of fiscal 2019, the Group recognized deferred
tax assets of R3.6 million ($0.3 million) in respect of a portion of the
available tax losses in the Americas, Brazil and Europe segments. These
tax losses were incurred in prior years. An ongoing improvement in these
regions’ results has resulted in these deferred tax assets being
recognized in respect of the future utilization of the historical tax
loss considered probable at period end. The recognition of these
deferred tax assets reduced the Group’s effective tax rate in the
quarter by 3.6%.

On a U.S. Dollar basis, using the March 31, 2019 exchange rate of
R14.4789 per U.S. Dollar, and a ratio of 25 ordinary shares to one
American Depositary Share (“ADS”), profit for the period was $5.3
million, or 23 U.S. cents per diluted ADS compared to $4.4 million, or
19 U.S. cents per diluted ADS in the fourth quarter of fiscal 2018.

Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period, a non-IFRS measure, was R81.0 million
($5.6 million) compared to R55.3 million ($3.8 million) for the fourth
quarter of fiscal 2018. Adjusted earnings per diluted ordinary share,
also a non-IFRS measure, were 14 South African cents, compared to 10
South African cents in the fourth quarter of fiscal 2018.

On a U.S. Dollar basis, using the March 31, 2019 exchange rate of
R14.4789 per U.S. Dollar, and a ratio of 25 ordinary shares to one ADS,
the adjusted profit for the period was $5.6 million, or 24 U.S. cents
per diluted ADS, compared to $3.8 million, or 16 U.S. cents per diluted
ADS in the fourth quarter of fiscal 2018.

Statement of Financial Position and Cash Flow: At March 31, 2019,
the Group had R353.2 million ($24.4 million) of net cash and cash
equivalents, compared to R290.5 million ($20.1 million) at March 31,
2018.

The Group generated R129.4 million ($8.9 million) in net cash from
operating activities for the three months ended March 31, 2019 and
invested R49.6 million ($3.4 million) in capital expenditures during the
quarter (including investments in in-vehicle devices of R24.6 million or
$1.7 million), leading to free cash flow, a non-IFRS measure, of R79.8
million ($5.5 million) compared to free cash flow of R57.9 million ($4.0
million) for the fourth quarter of fiscal 2018. The Group utilized R18.0
million ($1.2 million) in financing activities, compared to R8.9 million
($0.6 million) utilized during the fourth quarter of fiscal 2018. The
cash utilized in financing activities during the fourth quarter of
fiscal 2019 mainly consisted of dividends paid of R16.8 million ($1.2
million) and the payment of lease liabilities of R1.1 million ($0.1
million). The cash utilized in financing activities during the fourth
quarter of fiscal 2018 mainly consisted of dividends paid of R14.1
million ($1.0 million) offset by proceeds from the issuance of shares in
respect of employee share options of R5.2 million ($0.4 million).

Financial performance for the fiscal year ended March 31, 2019

Subscription revenue: Subscription revenue increased to R1,693.2
million ($116.9 million), an increase of 18.0% compared to R1,434.6
million ($99.1 million) for fiscal 2018. On a constant currency basis,
subscription revenue increased by 16.3%. Subscription revenue benefited
from an increase of 73,600 subscribers from April 2018 to March 2019,
representing an increase in subscribers of 10.9% during fiscal 2019.
Subscription revenue also benefited from a higher average revenue per
user.

Total revenue: Total revenue for fiscal 2019 was R1,975.9 million
($136.5 million), an increase of 15.4% compared to R1,712.5 million
($118.3 million) for fiscal 2018. On a constant currency basis, total
revenue increased by 13.5%. Hardware and other revenue was R282.6
million ($19.5 million), compared to R277.9 million ($19.2 million) for
fiscal 2018.

Gross margin: Gross profit was R1,320.0 million ($91.2 million),
an increase of 17.3% compared to R1,125.5 million ($77.7 million) for
fiscal 2018. Gross profit margin was 66.8%, compared to 65.7% for fiscal
2018.

Operating margin: Operating profit was R338.9 million ($23.4
million), compared to R215.0 million ($14.8 million) in fiscal 2018. The
operating margin was 17.2%, compared to the 12.6% in fiscal 2018. The
margin expansion was attributable primarily to the revenue growth
leveraging the Group’s fixed overheads, and ongoing cost management
initiatives. Operating expenses represented 49.7% of revenue compared to
53.4% of revenue in fiscal 2018.

Adjusted EBITDA: Adjusted EBITDA was R602.8 million ($41.6
million), compared to R441.9 million ($30.5 million) for fiscal 2018.
The Adjusted EBITDA margin for fiscal 2019 was 30.5%, compared to 25.8%
in fiscal 2018.

Profit for the year and earnings per share: Profit for fiscal
2019 was R202.3 million ($14.0 million), compared to R181.2 million
($12.5 million) in fiscal 2018. Profit for the year included a net
foreign exchange gain of R0.4 million ($0.03 million) before tax. During
fiscal 2018, a net foreign exchange loss of R5.1 million ($0.4 million)
was recognized.

Earnings per diluted ordinary share were 35 South African cents,
compared to 32 South African cents in fiscal 2018. For fiscal 2019, the
calculation was based on diluted weighted average ordinary shares in
issue of 583.6 million, compared to 574.0 million diluted weighted
average ordinary shares in issue during fiscal 2018.

The Group’s effective tax rate was 40.5%, compared to 15.7% for fiscal
2018. Ignoring the impact of net foreign exchange gains and losses net
of tax and share based compensation costs related to Performance Share
Awards net of tax, the effective tax rate, which was used in calculating
adjusted earnings, was 26.3% compared to 28.7% in fiscal 2018.

During the fourth quarter of fiscal 2019 the Group recognized deferred
tax assets of R3.6 million ($0.3 million) in respect of a portion of the
available tax losses in the Americas, Brazil and Europe segments. These
tax losses were incurred in prior years. An ongoing improvement in these
regions’ results has resulted in these deferred tax assets being
recognized in respect of the future utilization of the historical tax
loss considered probable at period end. The recognition of these
deferred tax assets reduced the Group’s effective tax rate for the year
by 1.1%.

Adjusted earnings for the year and adjusted earnings per share: Adjusted
earnings for fiscal 2019, a non-IFRS measure, was R254.4 million ($17.6
million), compared to R156.8 million ($10.8 million) in fiscal 2018.
Adjusted earnings per diluted ordinary share, also a non-IFRS measure,
were 44 South African cents, compared to 27 South African cents for
fiscal 2018.

On a U.S. Dollar basis, using the March 31, 2019 exchange rate of
R14.4789 per U.S. Dollar, and a ratio of 25 ordinary shares to one ADS,
adjusted earnings were $17.6 million, or 75 U.S. cents per diluted ADS,
compared to $10.8 million, or 47 U.S. cents per diluted ADS in fiscal
2018.

Statement of Financial Position and Cash Flow: The Group
generated R463.8 million ($32.0 million) in net cash from operating
activities for fiscal 2019 and invested R286.5 million ($19.8 million)
in capital expenditures during the year (including investments in
in-vehicle devices of R191.6 million or $13.2 million), leading to free
cash flow of R177.4 million ($12.3 million), compared to free cash flow
of R14.9 million ($1.0 million) for fiscal 2018. Capital expenditures in
fiscal 2018 were R338.3 million ($23.4 million) and included in-vehicle
devices of R229.8 million ($15.9 million).

The Group utilized R138.7 million ($9.6 million) in financing
activities, compared to R62.5 million ($4.3 million) utilized during
fiscal 2018. The cash utilized in financing activities in fiscal 2019
mainly consisted of the repurchase of 9.2 million ordinary shares, which
resulted in a cash outflow of R73.5 million ($5.1 million), dividends
paid of R67.5 million ($4.7 million) and the repayment of lease
liabilities of R11.4 million ($0.8 million), offset by proceeds from
issuance of shares in respect of employee share options of R13.8 million
($1.0 million). The cash utilized in financing activities in fiscal 2018
included the repurchase of 5.0 million ordinary shares, which resulted
in a cash outflow of R18.7 million ($1.3 million) and dividends paid of
R53.2 million ($3.7 million).

Segment commentary for the fiscal year ended March 31, 2019

The segment results below are presented on an integral margin basis. In
respect of revenue, this method of measurement entails reviewing the
segmental results based on external revenue only. In respect of Adjusted
EBITDA (the non-IFRS profit measure identified by the Group), the margin
generated by our Central Services Organization (“CSO”), net of any
unrealized inter-company profit, is allocated to the geographic region
where the external revenue is recorded by our Regional Sales Offices
(“RSOs”).

CSO continues as a central services organization that wholesales our
products and services to our RSOs who, in turn, interface with our
end-customers and distributors. CSO is also responsible for the
development of our hardware and software platforms and provides common
marketing, product management, technical and distribution support to
each of our other operating segments. CSO’s operating expenses are not
allocated to each RSO.

Each RSO’s results reflect the external revenue earned, as well as the
Adjusted EBITDA earned (or loss incurred) by each operating segment
before the CSO and corporate cost allocations.

Segment	Subscription Revenue Fiscal 2019 R’000	Total Revenue Fiscal 2019 R’000	Adjusted EBITDA Fiscal 2019 R’000	Adjusted EBITDA % change on prior year	Adjusted EBITDA Margin Fiscal 2019

Africa	969,377	1,044,406	484,497	9.9%	46.4%
Africa	Subscription revenue increased by 11.1% in the segment as a result of a 10.4% increase in subscribers since April 1, 2018. Total revenue increased by 9.1%. The region reported an Adjusted EBITDA margin of 46.4% (up from the 46.0% Adjusted EBITDA margin reported in fiscal 2018).
Americas	292,577	328,963	152,575	92.8%	46.4%
Americas	Subscription revenue growth on a constant currency basis was 41.9%. Subscribers increased by 15.7% since April 1, 2018. Subscription revenue continued to receive assistance from the market’s ongoing preference for bundled deals across new and existing customers. Total revenue improved by 36.6% on a constant currency basis as hardware and other revenues increased by 11.2%. The region reported an Adjusted EBITDA margin of 46.4% (up from the 34.8% Adjusted EBITDA margin reported in fiscal 2018). Americas is currently the fastest growing geographical region both at a subscription revenue and Adjusted EBITDA level.
Middle East and Australasia	226,020	323,494	145,887	36.6%	45.1%
Middle East and Australasia	Subscription revenue increased by 9.6% on a constant currency basis. Subscribers increased by 8.1% since April 1, 2018. Total revenue in constant currency improved by 13.0% as hardware revenues were higher than in fiscal 2018. The region reported an Adjusted EBITDA margin of 45.1% (up from the 38.3% Adjusted EBITDA margin reported in fiscal 2018).
Europe	140,539	209,757	67,796	3.8%	32.3%
Europe	Subscription revenue growth on a constant currency basis was 16.4%. However, total revenue only increased by 3.6% on a constant currency basis due to lower hardware revenues compared to fiscal 2018. Subscribers increased by 9.0% since April 1, 2018. The region reported an Adjusted EBITDA margin of 32.3% (down from the 33.8% Adjusted EBITDA margin reported in fiscal 2018).
Brazil	63,987	68,408	27,598	64.8%	40.3%
Brazil	Subscription revenue increased by 40.1% on a constant currency basis. The increase was due to the market’s preference for bundled deals and an increase in subscribers of 28.2% since April 1, 2018. On a constant currency basis, total revenue increased by 39.6%. The segment reported Adjusted EBITDA of R27.6 million ($1.9 million) in fiscal 2019, at an Adjusted EBITDA margin of 40.3% (up from the 30.8% Adjusted EBITDA margin reported in fiscal 2018).
Central Services Organization	745	835	(156,894)	(4.7%)	—
Central Services Organization	CSO is responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments. The negative Adjusted EBITDA reported arises as a result of operating expenses carried by the segment.

Preliminary financial information

The reviewed but unaudited financial information set forth above is
preliminary and subject to potential adjustments. Adjustments to the
consolidated financial statements may be identified when audit work has
been finalized for the Group’s year-end audit, which could result in
potential differences from this preliminary reviewed but unaudited
condensed financial information. Any changes to the financial
information from the completion of the audit will be announced on SENS.

Business Outlook

MiX Telematics has translated U.S. Dollar amounts in this Business
Outlook paragraph from South African Rand at an exchange rate of
R14.3842 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as at May 8, 2019.

Based on information as of today, May 14, 2019, the Group is issuing the
following financial guidance for the full 2020 fiscal year:

Subscription revenue – R1,935 million to R1,955 million ($134.5
million to $135.9 million), which would represent subscription revenue
growth of 14.3% to 15.5% compared to fiscal 2019. On a constant
currency basis, this would represent subscription revenue growth of
12.8% to 14.0%.
Total revenue – R2,182 million to R2,212 million ($151.7 million to
$153.8 million), which would represent revenue growth of 10.4% to
12.0% compared to fiscal 2019. On a constant currency basis, this
would represent revenue growth of 8.9% to 10.5%.
Adjusted EBITDA – R680 million to R701 million ($47.3 million to $48.7
million), which would represent Adjusted EBITDA growth of 12.8% to
16.3% compared to fiscal 2019.
Adjusted earnings per diluted ordinary share of 45.1 to 50.2 South
African cents based on a weighted average of 585 million diluted
ordinary shares in issue, and based on an effective tax rate of 28.0%.
At a ratio of 25 ordinary shares to one ADS, this equates to adjusted
earnings per diluted ADS of 78.4 to 87.2 U.S. cents.

For the first quarter of fiscal 2020 the Group expects
subscription revenue to be in the range of R451 million to R457 million
($31.4 million to $31.8 million) which would represent subscription
revenue growth of 15.5% to 17.1% compared to the first quarter of fiscal
2019. On a constant currency basis, this would represent subscription
revenue growth of 10.5% to 12.1%.

The key assumptions used in deriving the forecast are as follows:

Growth in subscription revenue and subscribers are based on expected
growth rates related to market conditions and takes into account
growth rates achieved previously.
Achieving hardware sales according to expectations, as hardware sales
are dependent on the volumes of bundled solutions selected by
customers.
An average forecast exchange rate for the 2020 fiscal year of R14.3000
per $1.00.

The forecast is the responsibility of the Board of Directors and has not
been reviewed or reported on by the Group’s external auditors. The
Group’s policy is to give guidance on a quarterly basis, if necessary,
and does not update guidance between quarters.

The Group provides earnings guidance only on a non-IFRS basis and does
not provide a reconciliation of forward-looking Adjusted EBITDA and
Adjusted Earnings per Diluted Ordinary Share guidance to the most
directly comparable IFRS financial measures because of the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliations, including adjustments that could be
made for foreign exchange gains/(losses) and related tax consequences,
restructuring costs, share-based compensation costs, and other charges
reflected in the Group’s reconciliation of historic non-IFRS financial
measures, the amounts of which, based on past experience, could be
material.

The information disclosed in this “Business Outlook” paragraph
complies with the disclosure requirements in terms of paragraph 8.38 of
the JSE Listings Requirements which deals with profit forecasts.

Quarterly Reporting Policy in respect of JSE Listings Requirements

Following the listing of the Group’s ADSs on the New York Stock
Exchange, the Group has adopted a quarterly reporting policy. As a
result of such quarterly reporting the Group is, in terms of paragraph
3.4(b)(ix) of the JSE Listings Requirements, not required to publish
trading statements in terms of paragraph 3.4(b)(i) to (viii) of the JSE
Listings Requirements.

Conference Call Information

MiX Telematics management will also host a conference call and audio
webcast at 8:00 a.m. (Eastern Daylight Time) and 2:00 p.m. (South
African Time) on Tuesday, May 14, 2019 to discuss the Group’s financial
results and current business outlook:

The live webcast of the call will be available at the “Investor
Information” page of the Group’s website, http://investor.mixtelematics.com.
To access the call, dial +1-877-451-6152 (within the United States) or
0 800 983 831 (within South Africa) or +1-201-389-0879 (outside of the
United States). The conference ID is 13689224.
A replay of this conference call will be available for a limited time
at +1-844-512-2921 (within the United States) or +1-412-317-6671
(within South Africa or outside of the United States). The replay
conference ID is 13689224.
A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.

About MiX Telematics Limited

MiX Telematics is a leading global provider of fleet and mobile asset
management solutions delivered as SaaS to customers managing over
750,000 assets in approximately 120 countries. The Group’s products and
services provide enterprise fleets, small fleets and consumers with
solutions for safety, efficiency, risk and security. MiX Telematics was
founded in 1996 and has offices in South Africa, the United Kingdom, the
United States, Uganda, Brazil, Mexico, Australia, Romania, Thailand and
the United Arab Emirates as well as a network of more than 130 fleet
partners worldwide. MiX Telematics shares are publicly traded on the
Johannesburg Stock Exchange (JSE: MIX) and MiX Telematics American
Depositary Shares are listed on the New York Stock Exchange (NYSE:
MIXT). For more information visit www.mixtelematics.com.

Forward-Looking Statements

This press release includes certain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995,
including without limitation, statements concerning our financial
guidance for the first quarter and full year of fiscal 2020, our
position to execute on our growth strategy, and our ability to expand
our leadership position. These forward-looking statements reflect our
current views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available to us
and on assumptions we have made. Actual results may differ materially
from those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our control
including, without limitation, those described under the caption “Risk
Factors” in the Group’s Annual Report on Form 20-F filed with the
Securities and Exchange Commission (the “SEC”) for the fiscal year ended
March 31, 2018, as updated by other reports that the Group files with or
furnishes to the SEC. The Group assumes no obligation to update any
forward-looking statements contained in this press release as a result
of new information, future events or otherwise.

Non-IFRS financial measures

Adjusted EBITDA

To provide investors with additional information regarding its financial
results, the Group has disclosed within this press release, Adjusted
EBITDA and Adjusted EBITDA margin. Adjusted EBITDA and Adjusted EBITDA
margin are non-IFRS financial measures, and they do not represent cash
flows from operations for the periods indicated, and should not be
considered an alternative to net income as an indicator of the Group’s
results of operations, or as an alternative to cash flows from
operations as an indicator of liquidity. Adjusted EBITDA is defined as
the profit for the period before income taxes, net finance
income/(costs) including foreign exchange gains/(losses), depreciation
of property, plant and equipment including capitalized customer
in-vehicle devices and right-of-use assets, amortization of intangible
assets including capitalized in-house development costs and intangible
assets identified as part of a business combination, share-based
compensation costs, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, insurance
reimbursements relating to impaired assets and certain litigation costs.

The Group has included Adjusted EBITDA and Adjusted EBITDA margin in
this press release because they are key measures that the Group’s
management and Board of Directors use to understand and evaluate its
core operating performance and trends; to prepare and approve its annual
budget; and to develop short and long-term operational plans. In
particular, the exclusion of certain expenses in calculating Adjusted
EBITDA and Adjusted EBITDA margin can provide a useful measure for
period-to-period comparisons of the Group’s core business. Accordingly,
the Group believes that Adjusted EBITDA and Adjusted EBITDA margin
provide useful information to investors and others in understanding and
evaluating its operating results.

The Group’s use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider this performance measure in isolation
from or as a substitute for analysis of our results as reported under
IFRS. Some of these limitations are:

although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
Adjusted EBITDA does not reflect changes in, or cash requirements for,
the Group’s working capital needs;
Adjusted EBITDA does not consider the potentially dilutive impact of
equity-based compensation;
Adjusted EBITDA does not reflect tax payments or the payment of lease
liabilities that may represent a reduction in cash available to the
Group; and
other companies, including companies in our industry, may calculate
Adjusted EBITDA differently, which reduces its usefulness as a
comparative measure.

Because of these limitations, you should consider Adjusted EBITDA
alongside other financial performance measures, including operating
profit, profit for the year and our other results.

Headline Earnings

Headline earnings is a profit measure required for JSE-listed companies
and is calculated in accordance with circular 4/2018 issued by the South
African Institute of Chartered Accountants. The profit measure is
determined by taking the profit for the period prior to certain
separately identifiable re-measurements of the carrying amount of an
asset or liability that arose after the initial recognition of such
asset or liability net of related tax (both current and deferred) and
related non-controlling interest.

Adjusted Earnings and Adjusted Earnings Per Share

Adjusted earnings per share is defined as profit attributable to owners
of the parent, MiX Telematics Limited, excluding net foreign exchange
gains/(losses) net of tax and share based compensation costs related to
Performance Share Awards net of tax, divided by the weighted average
number of ordinary shares in issue during the period.

We have included Adjusted earnings per share in this press release
because it provides a useful measure for period-to-period comparisons of
the Group’s core business by excluding net foreign exchange
gains/(losses) from earnings, as well as share based compensation costs
related to Performance Share Awards. Performance Share Awards were
awarded under the MiX Telematics Long-Term Incentive Plan for the first
time in November 2018 and are aimed at incentivising management to
achieve cumulative subscription revenue and Adjusted EBITDA targets for
the 2019 and 2020 fiscal years.

Accordingly, we believe that Adjusted earnings per share provides useful
information to investors and others in understanding and evaluating the
Group’s operating results.

Free cash flow

Free cash flow is determined as net cash generated from operating
activities less capital expenditure for investing activities. We believe
that free cash flow provides useful information to investors and others
in understanding and evaluating the Group’s cash flows as it provides
detail of the amount of cash the Group generates or utilizes after
accounting for all capital expenditures including investments in
in-vehicle devices and development expenditure.

Constant currency and U.S. Dollar financial information

Financial information presented in United States Dollars and constant
currency financial information presented as part of the commentary
constitute pro-forma financial information under the JSE Listings
Requirements. Unless otherwise stated, MiX Telematics has translated
U.S. Dollar amounts from South African Rand at the exchange rate of
R14.4789 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as at March 31, 2019.

Constant currency information has been presented to illustrate the
impact of changes in currency rates on the Group’s results. The constant
currency information has been determined by adjusting the current
financial reporting period results to the prior period average exchange
rates, determined as the average of the monthly exchange rates
applicable to the period. The measurement has been performed for each of
the Group’s currencies, including the U.S. Dollar and British Pound. The
constant currency growth percentage has been calculated by utilizing the
constant currency results compared to the prior period results.

This pro-forma financial information is the responsibility of the
Group’s Board of Directors and is presented for illustrative purposes.
Because of its nature, the pro-forma financial information may not
fairly present MiX Telematics’ financial position, changes in equity,
results of operations or cash flows. The pro-forma financial information
does not constitute pro-forma information in accordance with the
requirements of Regulation S-X of the SEC or generally accepted
accounting principles in the United States. In addition, the rules and
regulations related to the preparation of pro-forma financial
information in other jurisdictions may also vary significantly from the
requirements applicable in South Africa. The pro-forma financial
information contained in this results announcement has been reviewed by
our auditors, Deloitte & Touche and their unmodified report thereon is
available for inspection at the Company’s registered office.

JSE Sponsor
Java Capital

MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
	South African Rand				United States Dollar
	Year ended		Year ended		Year ended		Year ended
Figures are in thousands unless otherwise stated	March 31,		March 31,		March 31,		March 31,
Figures are in thousands unless otherwise stated	2019		2018		2019		2018
	Reviewed		Audited		Unaudited		Unaudited

Revenue	1,975,863		1,712,482		136,465		118,274
Cost of sales	(655,844	)	(586,963	)	(45,297	)	(40,539	)
Gross profit	1,320,019		1,125,519		91,168		77,735
Other income/(expenses) – net	1,009		4,246		70		293
Operating expenses	(982,116	)	(914,813	)	(67,831	)	(63,183	)
-Sales and marketing	(199,209	)	(184,978	)	(13,759	)	(12,776	)
-Administration and other charges	(782,907	)	(729,835	)	(54,072	)	(50,407	)
Operating profit	338,912		214,952		23,407		14,845
Finance income/(costs) – net	1,386		(69	)	96		(5	)
-Finance income	12,286		8,951		849		618
-Finance costs	(10,900	)	(9,020	)	(753	)	(623	)
Profit before taxation	340,298		214,883		23,503		14,840
Taxation	(137,962	)	(33,690	)	(9,528	)	(2,327	)
Profit for the year	202,336		181,193		13,975		12,513

Attributable to:
Owners of the parent	202,336		181,134		13,975		12,510
Non-controlling interest	*		59		*		3
	202,336		181,193		13,975		12,513

Earnings per share
-basic (R/$)	0.36		0.32		0.02		0.02
-diluted (R/$)	0.35		0.32		0.02		0.02

Earnings per American Depositary Share (Unaudited)
-basic (R/$)	8.98		8.07		0.62		0.56
-diluted (R/$)	8.67		7.89		0.60		0.54

* Amount less than R1,000/$1,000

MIX TELEMATICS LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

South African Rand

United States Dollar

Year ended

Year ended

Year ended

Year ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Audited

Unaudited

Unaudited

Profit for the year

202,336

181,193

13,975

12,513

Other comprehensive income:

Items that may be subsequently reclassified to profit or loss

Exchange differences on translating foreign operations

114,596

(60,331

)

7,914

(4,166

)

– Attributable to owners of the parent

114,593

(60,339

)

7,914

(4,167

)

– Attributable to non-controlling interest

Taxation relating to components of other comprehensive income

1,151

(237

)

(16

)

Other comprehensive income/(loss) for the year, net of tax

115,747

(60,568

)

7,993

(4,182

)

Total comprehensive income for the year

318,083

120,625

21,968

8,331

Attributable to:

Owners of the parent

318,080

120,558

21,968

8,326

Non-controlling interest

Total comprehensive income for the year

318,083

120,625

21,968

8,331

* Amount less than $1,000

MIX TELEMATICS LIMITED

HEADLINE EARNINGS

Reconciliation of Headline Earnings

South African Rand

United States Dollar

Year ended

Year ended

Year ended

Year ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Audited

Unaudited

Unaudited

Profit for the year attributable to owners of the parent

202,336

181,134

13,975

12,510

Adjusted for:

Profit on disposal of property, plant and equipment and intangible
assets

(586

)

(1,264

)

(40

)

(87

)

Impairment of intangible assets

930

2,687

186

Impairment of property, plant and equipment

—

Income tax effect on the above components

(85

)

(380

)

(26

)

Headline earnings attributable to owners of the parent

202,595

182,186

13,993

12,584

Headline earnings

Headline earnings per share

-basic (R/$)

0.36

0.32

0.02

0.02

-diluted (R/$)

0.35

0.32

0.02

0.02

Headline earnings per American Depositary Share (Unaudited)

-basic (R/$)

8.99

8.12

0.62

0.56

-diluted (R/$)

8.68

7.94

0.60

0.55

Ordinary shares (‘000)⁽¹⁾

-in issue at March 31

561,947

564,420

561,947

564,420

-weighted average

563,578

561,088

563,578

561,088

-diluted weighted average

583,647

573,981

583,647

573,981

Weighted average American Depositary Shares (‘000)⁽¹⁾(Unaudited)

-in issue at March 31

22,478

22,577

22,478

22,577

-weighted average

22,543

22,444

22,543

22,444

-diluted weighted average

23,346

22,959

23,346

22,959

⁽¹⁾		March 31, 2019 figure excludes 40,000,000 (March 31, 2018: 40,000,000) treasury shares held by MiX Telematics Investments Proprietary Limited (“MiX Investments”), a wholly owned subsidiary of the Group.

MIX TELEMATICS LIMITED

ADJUSTED EARNINGS

Reconciliation of Adjusted Earnings

South African Rand

United States Dollar

Year ended

Year ended

Year ended

Year ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Audited

Unaudited

Unaudited

Profit for the year attributable to owners of the parent

202,336

181,134

13,975

12,510

Net foreign exchange (gains)/losses

(383

)

5,073

(26

)

350

IFRS 2 charge on performance share awards (note 10)

5,110

—

353

—

Income tax effect on the above components

47,382

(29,403

)

3,272

(2,031

)

Adjusted earnings attributable to owners of the parent

254,445

156,804

17,574

10,829

Reconciliation of earnings per share to adjusted earnings per
share

Basic earnings per share (R/$)

0.36

0.32

0.02

0.02

Net foreign exchange (gains)/losses

0.01

IFRS 2 charge on performance share awards

0.01

—

Income tax effect on the above components

0.08

(0.05

)

0.01

Basic adjusted earnings per share (R/$)

0.45

0.28

0.03

0.02

Adjusted earnings per share

-basic (R/$)

0.45

0.28

0.03

0.02

-diluted (R/$)

0.44

0.27

0.03

0.02

Adjusted earnings per American Depositary Share (Unaudited)

-basic (R/$)

11.29

6.99

0.78

0.48

-diluted (R/$)

10.90

6.83

0.75

0.47

# Amount less than R0.01/$0.01

MIX TELEMATICS LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

South African Rand

United States Dollar

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Audited

Unaudited

Unaudited

ASSETS

Non-current assets

Property, plant and equipment (note 1)

457,446

334,038

31,594

23,071

Intangible assets

955,646

898,527

66,003

62,058

Capitalized commission assets (note 1)

54,066

—

3,734

—

Deferred tax assets

51,666

40,717

3,568

2,812

Total non-current assets

1,518,824

1,273,282

104,899

87,941

Current assets

Assets classified as held for sale (note 6)

17,058

17,058

1,178

1,178

Inventory

51,263

57,013

3,541

3,938

Trade and other receivables (note 1)

376,475

286,406

26,002

19,781

Taxation

24,119

30,373

1,666

2,098

Restricted cash

20,187

20,935

1,394

1,446

Cash and cash equivalents

383,443

308,258

26,483

21,290

Total current assets

872,545

720,043

60,264

49,731

Total assets

2,391,369

1,993,325

165,163

137,672

EQUITY

Stated capital

786,633

846,405

54,329

58,458

Other reserves

83,212

(51,614

)

5,747

(3,565

)

Retained earnings

881,819

722,380

60,904

49,892

Equity attributable to owners of the parent

1,751,664

1,517,171

120,980

104,785

Non-controlling interest

Total equity

1,751,677

1,517,181

120,981

104,786

LIABILITIES

Non-current liabilities

Deferred tax liabilities

139,049

82,658

9,604

5,709

Provisions

2,226

2,132

154

147

Recurring commission liability (note 1)

1,798

—

124

—

Capitalized lease liability (note 1)

31,183

—

2,154

—

Total non-current liabilities

174,256

84,790

12,036

5,856

Current liabilities

Trade and other payables (note 1)

399,869

350,519

27,618

24,209

Capitalized lease liability (note 1)

10,745

—

742

—

Taxation

2,511

2,832

173

196

Provisions

22,049

20,283

1,523

1,401

Bank overdraft

30,262

17,720

2,090

1,224

Total current liabilities

465,436

391,354

32,146

27,030

Total liabilities

639,692

476,144

44,182

32,886

Total equity and liabilities

2,391,369

1,993,325

165,163

137,672

MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
	South African Rand				United States Dollar
	Year ended		Year ended		Year ended		Year ended
	March 31,		March 31,		March 31,		March 31,
Figures are in thousands unless otherwise stated	2019		2018		2019		2018
Figures are in thousands unless otherwise stated	Reviewed		Audited		Unaudited		Unaudited

Cash flows from operating activities
Cash generated from operations	541,432		413,025		37,395		28,526
Net finance income received	7,156		4,845		494		335
Taxation paid	(84,742	)	(64,662	)	(5,853	)	(4,466	)
Net cash generated from operating activities	463,846		353,208		32,036		24,395

Cash flows from investing activities
Capital expenditure payments	(286,458	)	(338,261	)	(19,784	)	(23,362	)
Proceeds on sale of property, plant and equipment and intangible assets	2,222		4,388		153		303
Decrease in restricted cash	2,724		127		188		9
Increase in restricted cash	(983	)	(8,389	)	(68	)	(579	)
Net cash utilized in investing activities	(282,495	)	(342,135	)	(19,511	)	(23,629	)

Cash flows from financing activities
Proceeds from issuance of ordinary shares	13,776		10,726		951		741
Repayment of capitalized lease liability	(11,435	)	—		(789	)	—
Share repurchase (note 8)	(73,548	)	(18,666	)	(5,080	)	(1,289	)
Dividends paid to Company’s owners	(67,470	)	(53,201	)	(4,659	)	(3,674	)
Acquisition of non-controlling interest	—		(1,353	)	—		(93	)
Net cash utilized in financing activities	(138,677	)	(62,494	)	(9,577	)	(4,315	)
Net increase/(decrease) in cash and cash equivalents	42,674		(51,421	)	2,948		(3,549	)

Net cash and cash equivalents at the beginning of the year	290,538		356,333		20,066		24,611
Exchange gains/(losses) on cash and cash equivalents	19,969		(14,374	)	1,379		(996	)
Net cash and cash equivalents at the end of the year	353,181		290,538		24,393		20,066

MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	Attributable to owners of the parent
South African Rand Figures are in thousands unless otherwise stated	Stated capital		Other reserves		Retained earnings		Total		Non- controlling interest		Total equity

Balance at March 31, 2017 (Audited)	854,345		(4,370	)	594,514		1,444,489		(1,558	)	1,442,931

Total comprehensive income	—		(60,576	)	181,134		120,558		67		120,625
Profit for the year	—		—		181,134		181,134		59		181,193
Other comprehensive (loss)/income	—		(60,576	)	—		(60,576	)	8		(60,568	)

Total transactions with owners	(7,940	)	13,332		(53,268	)	(47,876	)	1,501		(46,375	)
Shares issued in relation to share options and share appreciation rights exercised	10,726		—		—		10,726		—		10,726
Share-based payment transaction	—		9,000		—		9,000		—		9,000
Share-based payment – excess tax benefit	—		5,833		—		5,833		—		5,833
Dividends declared (note 9)	—		—		(53,268	)	(53,268	)	—		(53,268	)
Share repurchase (note 8)	(18,666	)	—		—		(18,666	)	—		(18,666	)
Transactions with non-controlling interest	—		(1,501	)	—		(1,501	)	1,501		—


Balance at March 31, 2018 (Audited)	846,405		(51,614	)	722,380		1,517,171		10		1,517,181
Adjustment on initial application of IFRS 15, IFRS 16 and IFRS 9 (note 1)	—		—		24,675		24,675		—		24,675
Adjusted balance at April 1, 2018	846,405		(51,614	)	747,055		1,541,846		10		1,541,856


Total comprehensive income	—		115,744		202,336		318,080		3		318,083
Profit for the year	—		—		202,336		202,336		—		202,336
Other comprehensive income	—		115,744		—		115,744		3		115,747

Total transactions with owners	(59,772	)	19,082		(67,572	)	(108,262	)	—		(108,262	)
Shares issued in relation to share options and share appreciation rights exercised	13,776		—		—		13,776		—		13,776
Share-based payment transaction	—		12,140		—		12,140		—		12,140
Share-based payment – excess tax benefit	—		6,942		—		6,942		—		6,942
Dividends declared (note 9)	—		—		(67,572	)	(67,572	)	—		(67,572	)
Share repurchase (note 8)	(73,548	)	—		—		(73,548	)	—		(73,548	)

Balance at March 31, 2019 (Reviewed)	786,633		83,212		881,819		1,751,664		13		1,751,677

MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	Attributable to owners of the parent
United States Dollar Figures are in thousands unless otherwise stated	Stated capital		Other reserves		Retained earnings		Total		Non- controlling interest		Total equity

Balance at March 31, 2017 (Unaudited)	59,006		(302	)	41,061		99,765		(108	)	99,657

Total comprehensive income	—		(4,184	)	12,510		8,326		5		8,331
Profit for the year	—		—		12,510		12,510		4		12,514
Other comprehensive (loss)/income	—		(4,184	)	—		(4,184	)	1		(4,183	)

Total transactions with owners	(548	)	921		(3,679	)	(3,306	)	104		(3,202	)
Shares issued in relation to share options and share appreciation rights exercised	741		—		—		741		—		741
Share-based payment transaction	—		622		—		622		—		622
Share-based payment – excess tax benefit	—		403		—		403		—		403
Dividends declared (note 9)	—		—		(3,679	)	(3,679	)	—		(3,679	)
Share repurchase (note 8)	(1,289	)	—		—		(1,289	)	—		(1,289	)
Transactions with non-controlling interest	—		(104	)	—		(104	)	104		—


Balance at March 31, 2018 (Unaudited)	58,458		(3,565	)	49,892		104,785		1		104,786
Adjustment on initial application of IFRS 15, IFRS 16 and IFRS 9 (note 1)	—		—		1,704		1,704		—		1,704
Adjusted balance at April 1, 2018	58,458		(3,565	)	51,596		106,489		1		106,490


Balance at March 31, 2018 (Unaudited)	—		7,993		13,975		21,968		*		21,968
Profit for the year	—		—		13,975		13,975		*		13,975
Other comprehensive income	—		7,993		—		7,993		*		7,993

Total transactions with owners	(4,129	)	1,319		(4,667	)	(7,477	)	—		(7,477	)
Shares issued in relation to share options and share appreciation rights exercised	951		—		—		951		—		951
Share-based payment transaction	—		839		—		839		—		839
Share-based payment – excess tax benefit	—		480		—		480		—		480
Dividends declared (note 9)	—		—		(4,667	)	(4,667	)	—		(4,667	)
Share repurchase (note 8)	(5,080	)	—		—		(5,080	)	—		(5,080	)

Balance at March 31, 2019 (Unaudited)	54,329		5,747		60,904		120,980		1		120,981

* Amount less than $1,000

NOTES TO PRELIMINARY CONDENSED CONSOLIDATED FINANCIAL RESULTS

1. Basis of preparation and accounting policies

The preliminary condensed consolidated financial statements are prepared
in accordance with the requirements of the JSE Limited (“JSE”)
Listings Requirements for preliminary condensed financial statements and
the requirements of the Companies Act applicable to financial
statements. The JSE Listings Requirements require preliminary condensed
financial statements 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 Council and to also, as a minimum, contain
the information required by IAS 34 Interim Financial Reporting.

The accounting policies applied in the preparation of the preliminary
condensed consolidated financial statements are in terms of IFRS and are
consistent with those accounting policies applied in the preparation of
the previous consolidated annual financial statements, except for the
adoption of IFRS 9 Financial Instruments (“IFRS 9”), IFRS 15 Revenue
from Contracts with Customers (“IFRS 15”) and IFRS 16 Leases
(“IFRS 16”) from April 1, 2018.

The preliminary condensed consolidated financial statements were
prepared under the supervision of the Interim Chief Financial Officer,
PM Dell, CA(SA). The results were made available on May 14, 2019.

Adoption of IFRS 9, IFRS 15 and IFRS 16

IFRS 9 is effective for the Group from April 1, 2018.

IFRS 15 permits a modified retrospective cumulative catch-up approach
for the adoption, which the Group has decided to apply. Under this
approach, the Group has recognized transitional adjustments in retained
earnings on the date of initial application (i.e. April 1, 2018),
without restating the comparative period. Under the practical expedient,
the new requirements were only applied to contracts that were not
completed as of April 1, 2018.

IFRS 16 applies to annual reporting periods beginning on or after
January 1, 2019, but can be early adopted. Given that the Group applied
IFRS 15 from April 1, 2018, the Group decided to early adopt IFRS 16
from this date.

The Group has chosen to apply the ‘simplified approach’ on adoption of
IFRS 16 that includes certain relief related to the measurement of the
right-of-use asset and the lease liability at April 1, 2018, rather than
full retrospective application. Furthermore, the ‘simplified approach’
does not require a restatement of comparatives.

Refer to Note 2.1.1.2 of our consolidated financial statements for the
year ended March 31, 2018 for further details on the adoption of the
above mentioned standards.

Summary of the impact at April 1, 2018 of adopting IFRS 9, IFRS 15 and
IFRS 16:

	South African Rand	United States Dollar
IFRS 9 Assets	(R3.2 million)	($0.2 million)
Trade and other receivables	(R3.2 million)	($0.2 million)

IFRS 15 Assets	R46.5 million	$3.2 million
Capitalized commission assets	R45.3 million	$3.1 million
Trade and other receivables ⁽¹⁾	R1.2 million	$0.1 million

IFRS 16 Assets	R29.9 million	$2.0 million
Property, plant and equipment	R30.6 million	$2.1 million
Trade and other receivables ⁽²⁾	(R0.7 million)	($0.1 million)

Total Assets	R73.2 million	$5.0 million

IFRS 15 Liabilities	R8.7 million	$0.6 million
Recurring commission liability (non-current)	R4.0 million	$0.3 million
Trade and other payables ⁽³⁾	R4.7 million	$0.3 million

IFRS 16 Liabilities	R31.9 million	$2.2 million
Capitalized lease liability (non-current)	R23.3 million	$1.6 million
Capitalized lease liability (current)	R8.8 million	$0.6 million
Trade and other payables ⁽²⁾	(R0.2 million)	($0.01 million)

Deferred tax liabilities	R7.9 million	$0.5 million
Total liabilities	R48.5 million	$3.3 million

Net increase in equity	R24.7 million	$1.7 million

⁽¹⁾		Contract assets related to fixed escalations.
⁽²⁾		Reversal of lease prepayment and lease accruals under IAS 17 Leases. These have been reflected in the measurement of the lease liability under IFRS 16.
⁽³⁾		Includes the current portion of additional recurring commission liability of R2.9 million ($0.2 million) and increase in liabilities related to contracts with customers due to significant financing adjustments of R1.8 million ($0.1 million).

Summary of impact on fiscal 2019 results of adopting IFRS 9, IFRS 15
and IFRS 16:

The only material impact on the condensed consolidated income statement
for fiscal 2019 was a R7.9 million ($0.6 million) increase in finance
costs. This was primarily as a result of IFRS 15 significant financing
activity interest expense and IFRS 16 capitalized lease liability
interest. The impact on every other line item in the condensed
consolidated income statement for fiscal 2019 was not material.

The only adjustment to the statement of cash flows was an outflow of
R11.4 million ($0.8 million) in respect of the capital portion of lease
liability payments being recorded in cash flows from financing
activities as a result of the adoption of IFRS 16. This outflow was
previously accounted for as an operating lease expense and included
under cash generated from operations.

Presentation currency and convenience translation

The Group’s presentation currency is South African Rand. In addition to
presenting these preliminary condensed consolidated financial results in
South African Rand, supplementary information in U.S. Dollars has been
prepared for the convenience of users of the Group financial results.
Unless otherwise stated, the Group has translated U.S. Dollar amounts
from South African Rand at the exchange rate of R14.4789 per $1.00,
which was the R/$ exchange rate reported by Oanda.com as at
March 31, 2019. The U.S. Dollar figures may not compute as they are
rounded independently.

The supplementary information prepared in U.S. Dollars constitutes
pro-forma financial information under the JSE Listings Requirements.
This pro-forma financial information is the responsibility of the
Group’s Board of Directors and is presented for illustrative purposes.
Because of its nature, the pro-forma financial information may not
fairly present MiX Telematics’ financial position, changes in equity,
results of operations or cash flows. The pro-forma financial information
does not constitute pro-forma information in accordance with the
requirements of Regulation S-X of the SEC or generally accepted
accounting principles in the United States. In addition, the rules and
regulations related to the preparation of pro-forma financial
information in other jurisdictions may also vary significantly from the
requirements applicable in South Africa.

2. Independent review

The preliminary condensed consolidated financial statements for the year
ended March 31, 2019 have been reviewed by Deloitte & Touche, who
expressed an unmodified review conclusion thereon, which is available
for inspection at the Company’s registered office. The auditor’s report
does not necessarily report on all the information contained in these
financial results. 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 Company’s registered office.
Any reference to future financial performance, included in this
announcement, has not been reviewed or reported on by the Company’s
auditors.

3. Segment information

Our operating segments are based on the geographical location of our
Regional Sales Offices (“RSOs”) and also include our Central Services
Organization (“CSO”). CSO is our central services organization that
wholesales our products and services to our RSOs who, in turn, interface
with our end-customers, distributors and dealers. CSO is also
responsible for the development of our hardware and software platforms
and provides common marketing, product management, technical and
distribution support to each of our other operating segments.

The chief operating decision maker (“CODM”) reviews the segment
results on an integral margin basis as defined by management. The CODM,
who is responsible for allocating resources and assessing performance of
the operating segments, has been identified collectively as the
executive committee and the Chief Executive Officer who make strategic
decisions. In respect of revenue, this method of measurement entails
reviewing the segmental results based on external revenue only. In
respect of Adjusted EBITDA (the profit measure identified by the CODM),
the margin generated by CSO, net of any unrealized intercompany profit,
is allocated to the geographic region where the external revenue is
recorded by our RSOs. The costs remaining in CSO relate mainly to
research and development of hardware and software platforms, common
marketing, product management and technical and distribution support to
each of the RSOs. CSO is a reportable segment of the Group because it
produces discrete financial information which is reviewed by the CODM
and has the ability to generate external revenues.

Each RSO’s results therefore reflect the external revenue earned, as
well as the Adjusted EBITDA earned (or loss incurred) by each operating
segment before the remaining CSO and corporate costs allocations.
Segment assets are not disclosed as segment information is not reviewed
on such a basis by the CODM.

SEGMENTAL ANALYSIS

South African Rand
Figures are in thousands unless
otherwise stated

Subscription
revenue

Hardware and
other revenue

Total
revenue

Adjusted
EBITDA

Year ended March 31, 2019 (Reviewed)

Regional Sales Offices

Africa

969,377

75,029

1,044,406

484,497

Europe

140,539

69,218

209,757

67,796

Americas

292,577

36,386

328,963

152,575

Middle East and Australasia

226,020

97,474

323,494

145,887

Brazil

63,987

4,421

68,408

27,598

Total Regional Sales Offices

1,692,500

282,528

1,975,028

878,353

Central Services Organization

745

835

(156,894

)

Total Segment Results

1,693,245

282,618

1,975,863

721,459

Corporate and consolidation entries

—

(118,674

)

Total

1,693,245

282,618

1,975,863

602,785

South African Rand Figures are in thousands unless otherwise stated	Subscription revenue	Hardware and other revenue	Total revenue	Adjusted EBITDA

Year ended March 31, 2018 (Audited)
Regional Sales Offices
Africa	872,646	84,832	957,478	440,900
Europe	115,199	78,061	193,260	65,326
Americas	194,890	32,715	227,605	79,127
Middle East and Australasia	200,241	78,424	278,665	106,835
Brazil	50,735	3,695	54,430	16,747
Total Regional Sales Offices	1,433,711	277,727	1,711,438	708,935
Central Services Organization	904	140	1,044	(149,878	)
Total Segment Results	1,434,615	277,867	1,712,482	559,057
Corporate and consolidation entries	—	—	—	(117,191	)
Total	1,434,615	277,867	1,712,482	441,866

SEGMENTAL ANALYSIS

United States Dollar
Figures are in thousands unless
otherwise stated

Subscription
revenue

Hardware and
other revenue

Total
revenue

Adjusted
EBITDA

Year ended March 31, 2019 (Unaudited)

Regional Sales Offices

Africa

66,951

5,182

72,133

33,462

Europe

9,706

4,781

14,487

4,682

Americas

20,207

2,513

22,720

10,538

Middle East and Australasia

15,610

6,732

22,342

10,076

Brazil

4,419

305

4,725

1,906

Total Regional Sales Offices

116,893

19,513

136,407

60,664

Central Services Organization

(10,836

)

Total Segment Results

116,944

19,519

136,465

49,828

Corporate and consolidation entries

—

(8,196

)

Total

116,944

19,519

136,465

41,632


United States Dollar Figures are in thousands unless otherwise stated	Subscription revenue	Hardware and other revenue	Total revenue	Adjusted EBITDA

Year ended March 31, 2018 (Unaudited)
Regional Sales Offices
Africa	60,270	5,859	66,129	30,451
Europe	7,956	5,391	13,348	4,512
Americas	13,460	2,259	15,720	5,465
Middle East and Australasia	13,830	5,416	19,246	7,379
Brazil	3,504	255	3,759	1,157
Total Regional Sales Offices	99,020	19,180	118,202	48,964
Central Services Organization	62	10	72	(10,351	)
Total Segment Results	99,082	19,190	118,274	38,613
Corporate and consolidation entries	—	—	—	(8,094	)
Total	99,082	19,190	118,274	30,519

4. Reconciliation of Adjusted EBITDA to Profit for the year
	South African Rand				United States Dollar
	Year ended		Year ended		Year ended		Year ended
Figures are in thousands unless otherwise stated	March 31,		March 31,		March 31,		March 31,
Figures are in thousands unless otherwise stated	2019		2018		2019		2018
	Reviewed		Audited		Unaudited		Unaudited

Adjusted EBITDA	602,785		441,866		41,632		30,518
Add:
Net profit on sale of property, plant and equipment and intangible assets	586		1,264		40		87
Decrease in restructuring costs provision	—		741		—		51

Less:
Depreciation⁽¹⁾	(183,478	)	(151,945	)	(12,672	)	(10,493	)
Amortization ⁽²⁾	(64,877	)	(63,926	)	(4,481	)	(4,415	)
Impairment of product development costs capitalized and Property, Plant and Equipment	(930	)	(2,696	)	(64	)	(187	)
Share-based compensation costs	(12,140	)	(10,352	)	(838	)	(715	)
Equity-settled share-based compensation costs	(12,140	)	(9,000	)	(838	)	(622	)
Cash-settled share-based compensation costs	—		(1,352	)	—		(93	)
Increase in restructuring costs provision	(3,034	)	—		(210	)	—
Operating profit	338,912		214,952		23,407		14,845
Add: Finance income/(costs) – net	1,386		(69	)	96		(5	)
Less: Taxation	(137,962	)	(33,690	)	(9,528	)	(2,327	)
Profit for the year	202,336		181,193		13,975		12,513

⁽¹⁾		Includes depreciation of property, plant and equipment (including in-vehicle devices and right-of-use assets). The adoption of IFRS 16 during the year resulted in depreciation of right-of-use assets of R11.7 million ($0.8 million) being recorded in fiscal 2019.
⁽²⁾		Includes amortization of intangible assets (including product development costs and intangible assets identified as part of a business combination).

5. Reconciliation of Adjusted EBITDA margin to Profit for the year margin

	Year ended		Year ended
	March 31,		March 31,
	2019		2018
	Reviewed		Audited

Adjusted EBITDA margin	30.5	%	25.8	%
Add:
Net profit on sale of property, plant and equipment and intangible assets	0.0	%	0.1	%
Decrease in restructuring costs provision	—		0.0	%

Less:
Depreciation	(9.3	%)	(8.9	%)
Amortization	(3.2	%)	(3.6	%)
Impairment of product development costs capitalized and Property, Plant and Equipment	(0.0	%)	(0.2	%)
Share-based compensation costs	(0.6	%)	(0.6	%)
Equity-settled share-based compensation costs	(0.6	%)	(0.5	%)
Cash-settled share-based compensation costs	—		(0.1	%)
Increase in restructuring costs provision	(0.2	%)	—
Operating profit margin	17.2	%	12.6	%
Add: Finance income/(costs) – net	0.1	%	(0.0	%)
Less: Taxation	(7.1	%)	(2.0	%)
Profit for the year margin	10.2	%	10.6	%

6. Assets Classified as Held for Sale

The assets classified as held for sale relate to the property owned by
the Central Services Organization, a division of MiX Telematics
International Proprietary Limited. No impairment loss was recognized on
reclassification of the property as held for sale as the fair value
(estimated based on the recent market prices of similar properties in
similar locations) less costs to sell is higher than the carrying
amount. MiX Telematics has concluded agreements pertaining to a
Broad-Based Black Economic Empowerment (“B-BBEE”) transaction in which
the sale of this property is included, refer to note 13 for additional
information. The transaction is subject to certain conditions precedent
of which not all have been fulfilled by March 31, 2019.

7. Free Cash Flow

Reconciliation of Free Cash Flow to Net Cash generated from
Operating Activities

South African Rand

United States Dollar

Year ended

Year ended

Year ended

Year ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Unaudited

Unaudited

Unaudited

Net cash generated from operating activities

463,846

353,208

32,036

24,395

Capital expenditure payments

(286,458

)

(338,261

)

(19,784

)

(23,362

)

Free cash flow

177,388

14,947

12,252

1,033

8. Share Repurchase

On May 23, 2017, the MiX Telematics Board of Directors approved a share
repurchase program of up to R270 million ($18.7 million) under which the
Company may repurchase its ordinary shares, including American
Depositary Shares (“ADSs”). The Company may repurchase its shares
from time to time at its discretion through open market transactions and
block trades, based on ongoing assessments of the capital needs of the
Company, the market price of its securities and general market
conditions. This share repurchase program may be discontinued at any
time by the Board of Directors, and the Company has no obligation to
repurchase any amount of its securities under the program. The share
repurchase program will be funded out of existing cash resources.

Fiscal 2018 purchase

During fiscal 2018 the following purchases were made under the share
repurchase program:

South African Rand

Total number of
shares
repurchased

Average price
paid per share
(R) ⁽¹⁾

Shares canceled
under the share
repurchase
program

Value of shares
purchased as part of
publicly
announced
program
(R’000)

Maximum value of
shares that may yet
be
purchased under
the program
(R’000)

June 2017

5,015,660

3.72

5,015,660

18,666

251,334

5,015,660

18,666

251,334

United States Dollar

Total number of
shares
repurchased

Average price
paid per share
($) ⁽¹⁾

Shares canceled
under the share
repurchase

program

Value of shares
purchased as part of
publicly
announced
program
(R’000)

Maximum value of
shares that may yet
be
purchased under
the program
($’000)

June 2017

5,015,660

0.26

5,015,660

1,289

17,359

5,015,660

1,289

17,359

⁽¹⁾ Including transaction costs.

Subsequent to the repurchase, the shares were delisted and now form part
of the authorized unissued share capital of the Company.

Fiscal 2019 purchase

During fiscal 2019 the following purchases were made under the share
repurchase program:

South African Rand

Total number of
shares
repurchased

Average price
paid per share
(R) ⁽¹⁾

Shares canceled
under the share
repurchase
program

Value of shares
purchased as part of
publicly
announced
program
(R’000)

Maximum value of
shares that may yet
be
purchased under
the program
(R’000)

October 2018

9,157,695

8.03

9,157,695

73,548

177,786

9,157,695

73,548

177,786

United States Dollar

Total number of
shares
repurchased

Average price
paid per share
($)⁽¹⁾

Shares canceled
under the share
repurchase

program

Value of shares
purchased as part of
publicly
announced
program
(R’000)

Maximum value of
shares that may yet
be
purchased under
the program

($’000)

October 2018

9,157,695

0.55

9,157,695

5,080

12,279

9,157,695

5,080

12,279

⁽¹⁾ Including transaction costs.

Subsequent to the repurchase, the shares were delisted and now form part
of the authorized unissued share capital of the Company.

9. Dividends Paid

During fiscal 2016 the Board of Directors decided to reintroduce the
Company’s policy of paying regular dividends. Dividend payments are
currently considered on a quarter-by-quarter basis.

The following dividends were declared by the Company in fiscal 2019
(excluding dividends paid on treasury shares):

In respect of the fourth quarter of fiscal 2018, a dividend of R16.9
million ($1.2 million) was declared on May 8, 2018 and paid on
June 4, 2018. Using shares in issue of 564,420,145 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents or 0.2 U.S. cents per share.
In respect of the first quarter of fiscal year 2019, a dividend of
R16.9 million ($1.2 million) was declared on July 31, 2018 and paid on
August 27, 2018. Using shares in issue of 564,634,076 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents or 0.2 U.S. cents per share.
In respect of the second quarter of fiscal year 2019, a dividend of
R16.8 million ($1.2 million) was declared on October 30, 2018 and paid
on November 26, 2018. Using shares in issue of 561,807,639 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents and 0.2 U.S. cents per share.
In respect of the third quarter of fiscal year 2019, a dividend of
R16.9 million ($1.2 million) was declared on January 31, 2019 and paid
on February 25, 2019. Using shares in issue of 561,807,639 (excluding
40,000,000 treasury shares), this equated to a dividend of 3 South
African cents and 0.2 U.S. cents per share.

The following dividends were declared by the Company in fiscal 2018
(excluding dividends paid on treasury shares):

In respect of the fourth quarter of fiscal 2017, a dividend of R11.3
million ($0.8 million) was declared on May 23, 2017 and paid on
June 19, 2017. Using shares in issue of 563,514,561 (excluding
40,000,000 treasury shares), this equated to a dividend of 2 South
African cents or 0.1 U.S. cents per share.
In respect of the first quarter of fiscal year 2018, a dividend of
R14.0 million ($1.0 million) was declared on August 1, 2017 and paid
on August 28, 2017. Using shares in issue of 558,898,901 (excluding
40,000,000 treasury shares), this equated to a dividend of 2.5 South
African cents or 0.2 U.S. cents per share.
In respect of the second quarter of fiscal year 2018, a dividend of
R14.0 million ($1.0 million) was declared on October 31, 2017 and paid
on November 27, 2017. Using shares in issue of 559,418,095 (excluding
40,000,000 treasury shares), this equated to a dividend of 2.5 South
African cents and 0.2 U.S. cents per share.
In respect of the third quarter of fiscal year 2018, a dividend of
R14.0 million ($1.0 million) was declared on January 30, 2018 and paid
on February 26, 2018. Using shares in issue of 562,320,145 (excluding
40,000,000 treasury shares), this equated to a dividend of 2.5 South
African cents and 0.2 U.S. cents per share.

10. Performance Share Award under the MiX Telematics Limited
Long-Term Incentive Plan

The MiX Telematics Board of Directors has authorized a supplemental
performance share award under the MiX Telematics Limited Long-Term
Incentive Plan. In terms of this award the Board has designated
8,000,000 ordinary shares (equivalent to 320,000 ADSs), to be awarded to
eligible employees if the Group achieves both of the following constant
currency targets at March 31, 2020:

cumulative subscription revenue for the 2019 and 2020 fiscal years of
R3,588 million, and
cumulative Adjusted EBITDA for the 2019 and 2020 fiscal years of
R1,322 million.

The targets have been derived using an average forecast exchange rate of
R13.8000 per $1.00.

Half of this supplemental equity grant of 4,000,000 ordinary
shares (equivalent to 160,000 ADSs), was made during November 2018 and
the remaining half will be awarded at the beginning of fiscal 2020 if
the Board of Directors believes that the Group remains on track to meet
the vesting targets listed above. Furthermore, these performance shares
will not vest unless both targets are fully achieved in the specified
time-frame. An IFRS 2 charge of R5.1 million ($0.4 million) was
recognized on these performance share awards in fiscal 2019.

11. Fair values of financial assets and liabilities measured at
amortized cost

The fair values of trade and other receivables, restricted cash, cash
and cash equivalents, trade payables, accruals, bank overdrafts and
other payables approximate their book values as the impact of
discounting is not considered material due to the short-term nature of
both the receivables and payables.

12. Contingencies

Service agreement

In terms of an amended network services agreement with Mobile Telephone
Networks Proprietary Limited (“MTN”), MTN is entitled to claw back
payments from MiX Telematics Africa Proprietary Limited, a subsidiary of
the Group, in the event of early cancellation of the agreement or
certain base connections not being maintained over the term of the
agreement. No connection incentives will be received in terms of the
amended network services agreement. The maximum potential liability
under the arrangement is R39.1 million ($2.7 million). No loss is
considered probable under this arrangement.

Competition Commission of South Africa matter

On April 15, 2019 the Competition Commission of South Africa
(“Commission”) referred a matter to the Competition Tribunal of South
Africa (“Tribunal”). The Commission contends that the Group and a number
of our channel partners have engaged in market division. Should the
Tribunal rule against MiX Telematics, the Group may be liable to an
administrative penalty in terms of the Competition Act, No. 89 of 1998.
The Group had cooperated fully with the Commission during its
preliminary investigation. We cannot predict the timing of a resolution
or the ultimate outcome of the matter, however, the Group and our
external legal advisers continue to believe that we have consistently
adhered to all applicable laws and regulations and that the referral
from the Commission is without merit. We have therefore not made any
provisions for this matter as yet.

13. B-BBEE Property Transaction

MiX Telematics has concluded agreements pertaining to a B-BBEE
transaction which is subject to certain conditions precedent of which
not all have been fulfilled by March 31, 2019. The conditions precedent
are expected to be fulfilled during fiscal 2020. The transaction
involves the following:

Acquiring Erf 1335 Vorna Valley Extension 21 Township, Registration
Division IR, Province of Gauteng situated in Midrand (“the Midrand
property”) for R44.0 million ($3.0 million) from TPF Investments (Pty)
Ltd (“TPF”), which Midrand property is currently being leased from
TPF. TPF is an associate of Robin Frew, the non-executive chairman of
MiX Telematics and therefore the acquisition is a small related party
transaction under the JSE Listings Requirements.
In a back-to-back transaction, selling the Midrand property for R44.0
million ($3.0 million), as well as the Group’s property in
Stellenbosch currently classified as held for sale (refer to note 6)
for R23.5 million ($1.6 million) to Black Industrialists Group
Property Management Company (Pty) Ltd (“BIG”). The Group will also
provide loan funding to BIG of R9.0 million ($0.6 million).
Leasing both properties from BIG for an initial period of 5 years with
an option to renew the lease for a further 5 year period.

14. Taxation

Section 11D Allowances relating to tax assets recognized

MiX Telematics International Proprietary Limited (“MiX International”),
a subsidiary of the Group, historically claimed a 150% allowance for
research and development spend in terms of section 11D (“S11D”) of the
South African Income Tax Act No. 58 of 1962 (“the Act”). As of October
1, 2012, the legislation relating to the allowance was amended. The
amendment requires pre-approval of development project expenditure on a
project specific basis by the South African Department of Science and
Technology (“DST”) in order to claim a deduction of the additional 50%
over and above the expenditure incurred (150% allowance). Since the
amendments to S11D of the Act, MiX International had been claiming the
150% deduction resulting in a recognized tax benefit. MiX International
has complied with the amended legislation by submitting all required
documentation to the DST in a timely manner, commencing in October 2012.

In June 2014, correspondence was received from the DST indicating that
the research and development expenditure on certain projects for which
the 150% allowance was claimed in the 2013 and 2014 fiscal years did
not, in the DST’s opinion, constitute qualifying expenditure in terms of
the Act. MiX International, through due legal process, had formally
requested a review of the DST’s decision not to approve this
expenditure. While approvals were obtained for a portion of this project
expenditure as a result of a further review performed by the DST in
February 2017, we continue to seek approval for the remaining projects
and as such the legal process is ongoing. In addition to the approvals
that were subject to the legal process, further approvals have been
obtained for certain project expenditure, relating to both current and
prior financial years. However, at period end, an uncertain tax position
remains in relation to S11D deductions in respect of which approvals
remain pending.

Since the introduction of the DST pre-approval process, MiX
International has recognized in the income statement cumulative tax
incentives in addition to the incurred cost of R24.3 million ($1.7
million) in respect of S11D deductions, of which R3.8 million ($0.3
million) was recognized in the current financial year. R21.5 million
($1.5 million) relates to deductions in respect of development project
expenditure which has been approved by the DST. R2.8 million ($0.2
million) relates to an uncertain tax position in respect of projects
where approvals have not yet been received from the DST. If MiX
International is unsuccessful in this regard, the MiX International will
not recover the R2.8 million ($0.2 million) raised at March 31, 2019.

Impact of foreign exchange movements and share-based compensation
costs related to Performance Share Awards

The impact of foreign exchange movements, share-based compensation costs
related to Performance Share Awards, and the related tax effects on the
Group’s effective tax rate is shown below:

South African Rand	Year ended March 2019								Year ended March 2018
	Reviewed								Reviewed
	Profit for the period		Foreign exchange losses		Share- based compensation costs		Adjusted earnings		Profit for the period		Foreign exchange losses		Share- based compensation costs	Adjusted earnings


Profit before tax	340,298		(383	)	5,110		345,025		214,883		5,073		—	219,956
Taxation	(137,962	)	48,060		(678	)	(90,580	)	(33,690	)	(29,403	)	—	(63,093	)
Profit after tax	202,336		47,677		4,432		254,445		181,193		(24,330	)	—	156,863

Attributable to:
Owners of the parent	202,336		47,677		4,432		254,445		181,134		(24,330	)	—	156,804
Non-controlling interest	—		—		—		—		59		—		—	59
	202,336		47,677		4,432		254,445		181,193		(24,330	)	—	156,863

Effective tax rate	40.5	%	—		13.3	%	26.3	%	15.7	%	—		—	28.7	%

United States Dollar	Year ended March 2019								Year ended March 2018
	Unaudited								Unaudited
	Profit for the period		Foreign exchange losses		Share- based compensation costs		Adjusted earnings		Profit for the period		Foreign exchange losses		Share- based compensation costs	Adjusted earnings


Profit before tax	23,503		(26	)	353		23,830		14,841		350		—	15,191
Taxation	(9,528	)	3,319		(47	)	(6,256	)	(2,327	)	(2,031	)	—	(4,358	)
Profit after tax	13,975		3,293		306		17,574		12,514		(1,681	)	—	10,833

Attributable to:
Owners of the parent	13,975		3,293		306		17,574		12,510		(1,681	)	—	10,829
Non-controlling interest	—		—		—		—		4		—		—	4
	13,975		3,293		306		17,574		12,514		(1,681	)	—	10,833

Effective tax rate	40.5	%	—		—		26.3	%	15.7	%	—		—	28.7	%

Excluding the impact of foreign exchange gains and losses, share-based
compensation costs related to performance share awards and the related
tax consequences, the effective tax rate in fiscal 2019 is 2.7% below
the effective tax rate in fiscal 2018.

15. Other Operating and Financial Data

South African Rand

United States Dollar

Year ended

Year ended

Year ended

Year ended

Figures are in thousands except for subscribers

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Reviewed

Audited

Unaudited

Unaudited

Total revenue

1,975,863

1,712,482

136,465

118,274

Subscription revenue

1,693,245

1,434,615

116,946

99,083

Hardware revenue

241,837

227,752

16,703

15,730

Driver training, installation and other revenue

40,781

50,115

2,816

3,461

Adjusted EBITDA

602,785

441,866

41,632

30,518

Cash and cash equivalents

383,443

308,258

26,483

21,290

Net cash ⁽¹⁾

353,181

290,538

24,393

20,066

Capital expenditure incurred

302,047

332,886

20,862

22,991

Property, plant and equipment expenditure ⁽²⁾

208,910

238,248

14,429

16,455

Intangible asset expenditure

93,137

94,638

6,433

6,536

Capital expenditure authorized but not spent

110,707

85,053

7,646

5,874

Total development costs incurred

132,341

130,166

9,140

8,990

Development costs capitalized

69,911

65,343

4,828

4,513

Development costs expensed within administration and other charges

62,430

64,823

4,312

4,477

Subscribers (number)

750,455

676,866

750,455

676,866

Net asset value per share (R/$)

3.12

2.69

0.22

0.19

Net tangible asset value per share (R/$)

1.32

1.10

0.10

0.08

⁽¹⁾		Net cash is calculated as being net cash and cash equivalents, excluding restricted cash.
⁽²⁾		Excludes non-cash additions related to the initial recognition of right-of-use assets arising from the application of IFRS 16 Leases. The application of IFRS 16 during the period resulted in the recognition of right-of-use assets of R15.1 million ($1.0 million) in fiscal 2019.

	Year ended	Year ended
	March 31,	March 31,
	2019	2018
	Unaudited	Unaudited

Exchange Rates
The following major rates of exchange were used:
South African Rand: United States Dollar
-closing	14.48	11.83
-average	13.75	12.99
South African Rand: British Pound
-closing	18.90	16.60
-average	18.03	17.21

The Group’s functional and presentation currency is South African Rand.
The weakening of the closing rate of the South African Rand against the
functional currencies of the Group’s foreign operations resulted in an
increase in assets and liabilities in respect of the foreign operations
and the resulting foreign currency translation reserve increase of
R114.6 million ($7.9 million) since March 31, 2018.

16. Changes to the Board of Directors

Enos Banda resigned as an independent non-executive director of MiX
Telematics and a member of the Audit and Risk Committee with effect from
July 4, 2018. With effect from July 4, 2018, Fikile Futwa was appointed
as an independent non-executive director to the Board of Directors and
as a member of the Audit and Risk Committee.

17. Changes to the Company Secretary

With effect from July 1, 2018, Statucor Proprietary Limited was
appointed as Company secretary to MiX Telematics, taking over from Java
Capital who had been previously appointed on an interim basis.

18. Events after the reporting period

Other than the items below, the directors are not aware of any matter
material or otherwise arising since March 31, 2019 and up to the date of
this report, not otherwise dealt with herein.

Dividend declared

The Board of Directors declared in respect of the fourth quarter of
fiscal 2019 which ended on March 31, 2019, a dividend of 4 South African
cents (0.3 U.S. cents) per ordinary share to be paid on June 3, 2019.

Details of Dividend Declared

The details with respect to the dividends declared for ordinary
shareholders are as follows:

Last day to trade cum dividend				Tuesday, May 28, 2019
Securities trade ex dividend				Wednesday, May 29, 2019
Record date				Friday, May 31, 2019
Payment date				Monday, June 3, 2019

Share certificates may not be dematerialized or rematerialized between
Wednesday, May 29, 2019 and Friday, May 31, 2019, both days inclusive.

Shareholders are advised of the following additional information:

the dividend has been declared out of income reserves;
the local dividends tax rate is 20%;
the gross local dividend amounts to 4 South African cents per ordinary
share;
the net local dividend amount is 3.2 South African cents per ordinary
share for shareholders liable to pay dividends tax;
the issued ordinary share capital of MiX Telematics is 601,947,020
ordinary shares of no par value; and
the Company’s tax reference number is 9155/661/84/7.

The details with respect to the dividends declared for holders of our
ADSs are as follows:


Ex dividend on New York Stock Exchange (NYSE)				Thursday, May 30, 2019
Record date				Friday, May 31, 2019
Approximate date of currency conversion				Monday, June 3, 2019
Approximate dividend payment date				Thursday, June 13, 2019

Annual general meeting

The annual general meeting of shareholders of MiX Telematics will be
held at Matrix Corner, Howick Close, Waterfall Park, Midrand,
Johannesburg on Wednesday, September 11, 2019 at 2:30 p.m. (South
African time). For South African shareholders, the last day to trade in
order to be eligible to participate in and vote at the annual general
meeting is Tuesday, September 3, 2019 and the record date for voting
purposes is Friday, September 6, 2019. The notice of annual general
meeting will be distributed to shareholders no later than Friday June
28, 2019.

For and on behalf of the board:

RA Frew				SB Joselowitz
Midrand
May 14, 2019

MIX TELEMATICS LIMITED
CONDENSED CONSOLIDATED INCOME STATEMENT
	South African Rand				United States Dollar
	Three months ended		Three months ended		Three months ended		Three months ended
Figures are in thousands unless otherwise stated	March 31,		March 31,		March 31,		March 31,
Figures are in thousands unless otherwise stated	2019		2018		2019		2018
	Unaudited		Unaudited		Unaudited		Unaudited

Revenue	507,897		453,528		35,078		31,323
Cost of sales	(168,054	)	(157,573	)	(11,607	)	(10,883	)
Gross profit	339,843		295,955		23,471		20,440
Other income/(expenses) – net	218		1,464		15		101
Operating expenses	(242,251	)	(223,652	)	(16,731	)	(15,447	)
-Sales and marketing	(48,678	)	(37,002	)	(3,362	)	(2,556	)
-Administration and other charges	(193,573	)	(186,650	)	(13,369	)	(12,891	)
Operating profit	97,810		73,767		6,755		5,094
Finance income/(costs) – net	1,003		691		69		48
-Finance income	3,838		3,055		265		211
-Finance costs	(2,835	)	(2,364	)	(196	)	(163	)
Profit before taxation	98,813		74,458		6,824		5,142
Taxation	(21,833	)	(10,188	)	(1,508	)	(704	)
Profit for the period	76,980		64,270		5,316		4,438

Attributable to:
Owners of the parent	76,979		64,270		5,316		4,438
Non-controlling interest	1		*		*		*
	76,980		64,270		5,316		4,438

Earnings per share
-basic (R/$)	0.14		0.11		0.01		0.01
-diluted (R/$)	0.13		0.11		0.01		0.01
Earnings per American Depositary Share
-basic (R/$)	3.43		2.86		0.24		0.20
-diluted (R/$)	3.32		2.77		0.23		0.19
Adjusted earnings per share
-basic (R/$)	0.14		0.10		0.01		0.01
-diluted (R/$)	0.14		0.10		0.01		0.01
Adjusted earnings per American Depositary Share
-basic (R/$)	3.61		2.46		0.25		0.17
-diluted (R/$)	3.49		2.38		0.24		0.16

* Amount less than R1,000/$1,000

NOTES TO CONDENSED CONSOLIDATED FINANCIAL RESULTS

1. Basis of preparation and accounting policies

Financial results for the fourth quarter of fiscal year 2019

Further to the Group’s financial results for the year ended March 31,
2019, additional financial information in respect of the fourth quarter
of fiscal year 2019 has been presented together with the relevant
comparative information. The quarterly information comprises a condensed
consolidated income statement, a reconciliation of Adjusted earnings to
profit for the period (note 3), a reconciliation of Adjusted EBITDA to
profit for the period (note 4) and a reconciliation of Adjusted EBITDA
margin to profit for the period margin (note 5) and other financial and
operating data (note 6).

The accounting policies used in preparing the financial results for the
fourth quarter of fiscal year 2019 are consistent in all material
respects with those applied in the preparation of the Group’s annual
financial statements for the year ended March 31, 2018, except for the
adoption of IFRS 9 Financial Instruments (“IFRS 9”), IFRS 15 Revenue
from Contracts with Customers (“IFRS 15”) and IFRS 16 Leases
(“IFRS 16”) from April 1, 2018. For more information on the adoption of
these Standards refer to note 1 of the Notes to preliminary condensed
consolidated financial results for the fiscal year ended March 31, 2019.

Summary of impact on the fourth quarter of fiscal 2019 results of
adopting IFRS 9, IFRS 15 and IFRS 16:

The only material impact on the condensed consolidated income statement
for the fourth quarter of fiscal 2019 was a R2.1 million ($0.2 million)
increase in finance costs. This was primarily as a result of IFRS 15
significant financing activity interest expense and IFRS 16 capitalized
lease liability interest. The impact on every other line item in the
condensed consolidated income statement for fiscal 2019 was not material.

The only adjustment to the statement of cash flows was an outflow of
R1.1 million ($0.1 million) in respect of the capital portion of lease
liability payments being recorded in cash flows from financing
activities as a result of the adoption of IFRS 16. This outflow was
previously accounted for as an operating lease expense and included
under cash generated from operations.

The quarterly financial results have not been audited or reviewed by the
Group’s external auditors.

2. Presentation currency and convenience translation

The Group’s presentation currency is South African Rand. In addition to
presenting these condensed consolidated financial results for the
quarter ended March 31, 2019 in South African Rand, supplementary
information in U.S. Dollars has been prepared for the convenience of
users of this report. Unless otherwise stated, the Group has translated
U.S. Dollar amounts from South African Rand at the exchange rate of
R14.4789 per $1.00, which was the R/$ exchange rate reported by
Oanda.com as at March 31, 2019. The U.S. Dollar figures may not compute
as they are rounded independently.

3. Reconciliation of Adjusted Earnings to Profit for the Period

South African Rand

United States Dollar

Three months
ended

Three months
ended

Three months
ended

Three months
ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Unaudited

Unaudited

Unaudited

Unaudited

Profit for the period attributable to owners of the parent

76,979

64,270

5,316

4,438

Net foreign exchange losses

1,150

IFRS 2 charge on performance share awards

2,869

—

198

—

Income tax effect on the above components

1,106

(10,136

)

(700

)

Adjusted earnings attributable to owners of the parent

81,044

55,284

5,596

3,817

Reconciliation of earnings per share to adjusted earnings per
share

Basic earnings per share (R/$)

0.14

0.11

0.01

0.01

Net foreign exchange losses

IFRS 2 charge on performance share awards

—

Income tax effect on the above components

(0.01

)

Basic adjusted earnings per share (R/$)

0.14

0.10

0.01

0.01

Adjusted earnings per share

-basic (R/$)

0.14

0.10

0.01

0.01

-diluted (R/$)

0.14

0.10

0.01

0.01

Adjusted earnings per American Depositary Share

-basic (R/$)

3.61

2.46

0.25

0.17

-diluted (R/$)

3.49

2.38

0.24

0.16

Ordinary shares (‘000)⁽¹⁾

-in issue at March 31

561,947

564,420

561,947

564,420

-weighted average

561,859

562,767

561,859

562,767

-diluted weighted average

580,077

580,750

580,077

580,750

Weighted average American Depositary Shares (‘000)⁽¹⁾

-in issue at March 31

22,478

22,577

22,478

22,577

-weighted average

22,474

22,511

22,474

22,511

-diluted weighted average

23,203

23,230

23,203

23,230

# Amount less than R0.01/$0.01.

⁽¹⁾ Excludes 40,000,000 treasury shares held
by MiX Investments, a wholly owned subsidiary of the Group (March
2018: 40,000,000).

4. Reconciliation of Adjusted EBITDA to Profit for the Period
	South African Rand				United States Dollar
	Three months ended		Three months ended		Three months ended		Three months ended
Figures are in thousands unless otherwise stated	March 31,		March 31,		March 31,		March 31,
Figures are in thousands unless otherwise stated	2019		2018		2019		2018
	Unaudited		Unaudited		Unaudited		Unaudited

Adjusted EBITDA	167,631		130,155		11,579		8,988
Add:
Net profit on sale of property, plant and equipment and intangible assets	21		1,152		1		80
Decrease in restructuring costs provision	—		768		—		53

Less:
Depreciation ⁽¹⁾	(49,026	)	(39,067	)	(3,386	)	(2,698	)
Amortization ⁽²⁾	(15,255	)	(14,878	)	(1,054	)	(1,028	)
Impairment of product development costs capitalized	(878	)	(2,563	)	(61	)	(177	)
Equity-settled share-based compensation costs	(3,991	)	(1,800	)	(276	)	(124	)
Increase in restructuring costs provision	(692	)	—		(48	)	—
Operating profit	97,810		73,767		6,755		5,094
Add: Finance income/(costs) – net	1,003		691		69		48
Less: Taxation	(21,833	)	(10,188	)	(1,508	)	(704	)
Profit for the period	76,980		64,270		5,316		4,438

(1)		Includes depreciation of property, plant and equipment (including in-vehicle devices and right-of-use assets). The adoption of IFRS 16 during the period resulted in depreciation of right-of-use assets of R3.3 million ($0.2 million) being recorded in the fourth quarter of fiscal 2019.
(2)		Includes amortization of intangible assets (including product development costs and intangible assets identified as part of a business combination).

5. Reconciliation of Adjusted EBITDA margin to Profit for the Period margin
	Three months ended		Three months ended
	March 31,		March 31,
	2019		2018
	Unaudited		Unaudited

Adjusted EBITDA margin	33.0	%	28.7	%
Add:
Net profit on sale of property, plant and equipment and intangible assets	0.0	%	0.3	%
Decrease in restructuring costs provision	—		0.2	%
Less:
Depreciation	(9.6	%)	(8.6	%)
Amortization	(3.0	%)	(3.3	%)
Impairment	(0.2	%)	(0.6	%)
Equity-settled share-based compensation costs	(0.8	%)	(0.4	%)
Increase in restructuring costs provision	(0.1	%)	—
Operating profit margin	19.3	%	16.3	%
Add: Finance income/(costs) – net	0.2	%	0.2	%
Less: Taxation	(4.3	%)	(2.3	%)
Profit for the period margin	15.2	%	14.2	%

6. Other Operating and Financial Data

South African Rand

United States Dollar

Three
months
ended

Three
months
ended

Three
months
ended

Three
months
ended

Figures are in thousands unless otherwise stated

March 31,

March 31,

March 31,

March 31,

2019

2018

2019

2018

Unaudited

Unaudited

Unaudited

Unaudited

Total revenue

507,897

453,528

35,078

31,323

Subscription revenue

443,791

373,623

30,651

25,805

Hardware revenue

53,025

69,258

3,662

4,783

Driver training, installation and other revenue

11,081

10,647

765

735

Adjusted EBITDA

167,631

130,155

11,579

8,988

Cash and cash equivalents

383,443

308,258

26,483

21,290

Net cash ⁽¹⁾

353,181

290,538

24,393

20,066

Capital expenditure incurred

58,663

63,114

4,052

4,359

Property, plant and equipment expenditure

28,856

44,108

1,993

3,046

Intangible asset expenditure

29,807

19,006

2,059

1,313

Total development costs incurred

31,543

30,488

2,178

2,106

Development costs capitalized

17,189

16,543

1,187

1,143

Development costs expensed within administration and other charges

14,354

13,945

991

963

Subscribers (number)

750,455

676,866

750,455

676,866

⁽¹⁾		Net cash is calculated as being net cash and cash equivalents, excluding restricted cash.
⁽²⁾		Excludes non-cash additions related to the initial recognition of right-of-use assets arising from the application of IFRS 16 Leases. The application of IFRS 16 during the period resulted in the recognition of right-of-use assets of R0.3 million ($0.02 million) in the fourth quarter of fiscal 2019.

	Three months ended	Three months ended
	March 31,	March 31,
	2019	2018
	Unaudited	Unaudited

Exchange Rates
The following major rates of exchange were used:
South African Rand: United States Dollar
-closing	14.48	11.83
-average	14.01	11.96
South African Rand: British Pound
-closing	18.90	16.60
-average	18.24	16.64

7. Development costs historical data

The table below sets out development costs incurred and capitalized for
each of the last eight quarters including the period ended March 31,
2019.

				South African Rand
Figures are in thousands (Unaudited)				Three months ended

	March 31,	December 31,	September 30,	June 30,	March 31,	December 31,	September 30,	June 30,
	2019	2018	2018	2018	2018	2017	2017	2017

Total development costs incurred	31,543	32,707	33,983	34,108	30,488	32,336	34,167	33,175
Development costs capitalized	17,189	17,907	17,571	17,245	16,543	15,996	16,148	16,656
Development costs expensed within administration and other charges	14,354	14,800	16,412	16,863	13,945	16,340	18,019	16,519

				United States Dollar
Figures are in thousands (Unaudited)				Three months ended

	March 31,	December 31,	September 30,	June 30,	March 31,	December 31,	September 30,	June 30,
	2019	2018	2018	2018	2018	2017	2017	2017
Total development costs incurred	2,178	2,259	2,348	2,356	2,106	2,234	2,360	2,291
Development costs capitalized	1,187	1,237	1,214	1,191	1,143	1,105	1,115	1,150
Development costs expensed within administration and other charges	991	1,022	1,134	1,165	963	1,129	1,245	1,141

For more information please visit our website at: www.mixtelematics.com

MiX Telematics Limited
(Incorporated in the Republic of
South Africa)
(Registration number: 1995/013858/06)
JSE share
code: MIX NYSE code: MIXT ISIN: ZAE000125316
(“MiX Telematics” or
“the Company” or “the Group”)

Registered office
Matrix Corner, Howick Close, Waterfall
Park, Midrand

Directors
RA Frew* (Chairman), SB Joselowitz (CEO), SR Bruyns^*#
(Lead Independent Director), PM Dell, F Futwa^*#, IV Jacobs^*#,
F Roji-Maplanka^*#, CWR Tasker, AR Welton^*#
*
Non-executive
# Independent

Company secretary
Statucor Proprietary Limited

Auditors
Deloitte & Touche

Sponsor
Java Capital
May 14, 2019

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