[May 10, 2018]

MiX Telematics Announces Financial Results for Fourth Quarter and Preliminary Results for Full Fiscal Year 2018

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 2018, which ended March 31, 2018.

"We were very pleased with our fourth quarter results, which capped off another strong year for MiX. During fiscal 2018, we made significant progress toward achieving our long-term adjusted EBITDA margin target of 30% plus as we expanded our margin by over 600 basis points to 25.8%. This was largely due to 19% subscription revenue growth on a constant currency basis," said Stefan Joselowitz, Chief Executive Officer of MiX Telematics. "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. Looking forward, we have entered fiscal 2019 with great momentum. We are 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, 2018

Subscription revenue: Subscription revenue was R373.6 million ($31.6 million), an increase of 16.1% compared with R321.7 million ($27.2 million) for the fourth quarter of fiscal 2017. Subscription revenue increased by 19.4% on a constant currency basis, year over year. Subscription revenue benefited from an increase of over 54,800 subscribers, representing an increase in the subscriber base of 8.8% from March 2017 to March 2018. Subscription revenue also benefited from an increase in average revenue per user. Reported subscription revenue was lower than the third quarter of fiscal 2018 due to the appreciation of the South African Rand in the fourth quarter of fiscal 2018 over the third quarter of fiscal 2018. If the same exchange rates used in the third quarter of fiscal 2018 were used in the fourth quarter of fiscal 2018, subscription revenue would have been R391.6 million ($33.1 million), representing a constant currency increase of 4.1%.

Total revenue: Total revenue was R453.5 million ($38.4 million), an increase of 15.9% compared to R391.4 million ($33.1 million) for the fourth quarter of fiscal 2017. Total revenue increased by 18.7% on a constant currency basis. Hardware and other revenue was R79.9 million ($6.8 million), an increase of 14.6%, compared to R69.7 million ($5.9 million) for the fourth quarter of fiscal 2017.

Gross margin: Gross profit was R296.0 million ($25.0 million), compared to R265.0 million ($22.4 million) for the fourth quarter of fiscal 2017. Gross profit margin was 65.3%, compared to 67.7% for the fourth quarter of fiscal 2017. The Company's gross profit margin in fiscal 2018 includes higher depreciation charges related to in-vehicle devices and high value peripherals used in certain of its bundled fleet contracts. These contracts generate higher ARPUs and in the long-term are expected to result in an increase in gross profit margins as they go through contract renewal cycles.

Operating margin: Operating profit was R73.8 million ($6.2 million), compared to R40.9 million ($3.5 million) for the fourth quarter of fiscal 2017. Operating profit margin was 16.3%, compared to 10.5% for the fourth quarter of fiscal 2017. The margin expansion was attributable primarily to revenue growth leveraging our fixed overhead and ongoing cost management initiatives. Operating expenses of R223.7 million ($18.9 million) have declined by R0.3 million ($0.03 million), or 0.2%, since the fourth quarter of fiscal 2017.

Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R130.2 million ($11.0 million), compared to R87.1 million ($7.4 million) for the fourth quarter of fiscal 2017. Adjusted EBITDA margin, a non-IFRS measure, for the fourth quarter of fiscal 2018 was 28.7%, compared to 22.3% for the fourth quarter of fiscal 2017.

In the fourth quarter of fiscal 2018 the Adjusted EBITDA margin of 28.7% expanded by 2.8% from the Adjusted EBITDA margin of 25.9% reported in the third quarter of fiscal 2018. A quarter over quarter increase in hardware revenues and resultant gross profit contributed 1.3% to this Adjusted EBITDA margin expansion.

Profit for the period and earnings per share: Profit for the fourth quarter of fiscal 2018 was R64.3 million ($5.4 million), compared to R31.2 million ($2.6 million) in the fourth quarter of fiscal 2017. Profit for the period included a net foreign exchange loss of R1.2 million ($0.1 million) before tax. During the fourth quarter of fiscal 2017, profit for the period included a net foreign exchange loss of R5.1 million ($0.4 million).

Earnings per diluted ordinary share were 11 South African cents, compared to 5 South African cents in the fourth quarter of fiscal 2017. For the fourth quarter of fiscal 2018, the calculation was based on diluted weighted average ordinary shares in issue of 580.8 million compared to 568.2 million diluted weighted average ordinary shares in issue during the fourth quarter of fiscal 2017.

The Company's effective tax rate for the quarter was 13.7%, compared to 15.0% in the fourth quarter of fiscal 2017. Ignoring the impact of net foreign exchange gains and losses, and related tax consequences, the tax rate which was used in determining adjusted earnings below, was 26.9% compared to 28.3% in the fourth quarter of fiscal 2017.

On a U.S. Dollar basis, and using the March 31, 2018 exchange rate of R11.8255 per U.S. Dollar, and at a ratio of 25 ordinary shares to one American Depositary Share ("ADS"), profit for the period was $5.4 million, or 23 U.S. cents per diluted ADS, compared to $2.6 million or 12 U.S. cents per diluted ADS in the fourth quarter of fiscal 2017.

Adjusted earnings for the period and adjusted earnings per share: Adjusted earnings for the period, a non-IFRS measure, was R55.3 million ($4.7 million), compared to R30.0 million ($2.5 million) in the fourth quarter of fiscal 2017. Adjusted earnings per diluted ordinary share, also a non-IFRS measure, were 10 South African cents, compared to 5 South African cents in the fourth quarter of fiscal 2017.

On a U.S. Dollar basis, and using the March 31, 2018 exchange rate of R11.8255 per U.S. Dollar, and at a ratio of 25 ordinary shares to one ADS, the adjusted profit for the period was $4.7 million, or 20 U.S. cents per diluted ADS, compared to $2.5 million, or 11 U.S cents per diluted ADS in the fourth quarter of fiscal 2017.

Statement of financial position and cash flow: At March 31, 2018, the Company had R290.5 million ($24.6 million) of net cash and cash equivalents, compared to R356.3 million ($30.1 million) at March 31, 2017.

The Company generated R121.4 million ($10.3 million) in net cash from operating activities for the three months ended March 31, 2018 and invested R63.5 million ($5.4 million) in capital expenditures during the quarter (including investments in in-vehicle devices of R41.2 million or $3.5 million), leading to free cash flow, a non-IFRS measure, of R57.9 million ($4.9 million) for the fourth quarter of fiscal 2018, compared with free cash flow of R54.0 million ($4.6 million) for the fourth quarter of fiscal 2017.

Financial performance for the fiscal year ended March 31, 2018

Subscription revenue: Subscription revenue increased to R1,434.6 million ($121.3 million), up 15.7% from R1,239.9 million ($104.9 million) for fiscal 2017. On a constant currency basis, subscription revenue increased by 18.9%. Subscription revenue benefited from an increase of over 54,800 subscribers since the end of fiscal 2017, representing an increase in subscribers of 8.8% from March 2017 to March 2018. Subscription revenue also benefited from an increase in average revenue per user.

Total revenue: Total revenue for fiscal 2018 was R1,712.5 million ($144.8 million), an increase of 11.2% compared to R1,540.1 million ($130.2 million) for fiscal 2017. On a constant currency basis, total revenue increased by 14.5%. Hardware and other revenue was R277.9 million ($23.5 million), a decrease of 7.4% compared to R300.1 million ($25.4 million) for fiscal 2017.

Gross margin: Gross profit for fiscal 2018 was R1,125.5 million ($95.2 million), an increase of 8.1% compared to R1,041.3 million ($88.1 million) for fiscal 2017. Gross profit margin was 65.7%, compared to 67.6% for fiscal 2017. The Company's gross profit margin in fiscal 2018 includes higher depreciation charges related to in-vehicle devices and high value peripherals used in certain of its bundled fleet contracts. These contracts generate higher ARPUs and in the long-term are expected to result in an increase in gross profit margins as they go through contract renewal cycles.

Operating margin: Operating profit for fiscal 2018 was R215.0 million ($18.2 million), compared to R137.9 million ($11.7 million) in fiscal 2017. The operating profit margin for fiscal 2018 was 12.6%, compared to the 9.0% in fiscal 2017. The decline in the gross profit margin of 1.9% described above was offset by strict cost management, which resulted in an operating profit margin increase of 3.6%. Despite the 11.2% revenue increase described above, the increase in operating costs was limited to 1.2%.

Fiscal 2018 sales and marketing costs represented 10.8% of revenue, compared to 11.8% of revenue in fiscal 2017. Due to higher than expected hardware revenues, the fiscal 2018 ratio was marginally below the Company's estimates contained in its Form 20-F for the fiscal year ended March 31, 2017, in which the Company advised that in future periods it expected these costs to remain relatively constant as a percentage of revenue (i.e.11% to 12% of revenue).

Fiscal 2018 administration and other costs were 42.6% of revenue, compared to 46.9% in fiscal 2017.

Adjusted EBITDA: Adjusted EBITDA was R441.9 million ($37.4 million), compared to R301.6 million ($25.5 million) for fiscal 2017. The Adjusted EBITDA margin for fiscal 2018 was 25.8%, compared to 19.6% in fiscal 2017.

Profit for the year and earnings per share: Profit for fiscal 2018 was R181.2 million ($15.3 million), compared to R121.4 million ($10.3 million) in fiscal 2017. Profit for the year included a net foreign exchange loss of R5.1 million ($0.4 million) before tax. During fiscal 2017, a net foreign exchange gain of R1.5 million ($0.1 million) was recognized.

Earnings per diluted ordinary share were 32 South African cents, compared to 19 South African cents in fiscal 2017. For fiscal 2018, the calculation was based on diluted weighted average ordinary shares in issue of 574.0 million, compared to 631.8 million diluted weighted average ordinary shares in issue during fiscal 2017. The diluted weighted average ordinary shares in issue during fiscal 2018 were lower than in fiscal 2017, due to the weighted average impact of the share repurchases described in note 9 to the Group financial results for the fiscal year ended March 31, 2018.

The Company's effective tax rate for fiscal 2018 was 15.7%, compared to 18.1% in fiscal 2017. Ignoring the impact of net foreign exchange gains and losses, and related tax consequences, the effective tax rate, which was used in calculating adjusted earnings below, was 28.7%, consistent with fiscal 2017.

Adjusted earnings for the year and adjusted earnings per share: Adjusted earnings for fiscal 2018, a non-IFRS measure, was R156.8 million ($13.3 million), compared to R104.7 million ($8.9 million) in fiscal 2017. Adjusted earnings per diluted ordinary share, a non-IFRS measure, were 27 South African cents, compared to 17 South African cents in fiscal 2017.

On a U.S. Dollar basis, and using the March 31, 2018 exchange rate of R11.8255 per U.S. Dollar, and at a ratio of 25 ordinary shares to one ADS, adjusted profit for fiscal 2018 was $13.3 million, or 58 U.S. cents per diluted ADS, compared to $8.9 million, or 35 U.S. cents per diluted ADS in fiscal 2017.

Cash flow: The Company generated R353.2 million ($29.9 million) in net cash from operating activities for fiscal 2018 and invested R338.3 million ($28.6 million) in capital expenditures during the year (including investments in in-vehicle devices of R229.8 million or $19.3 million), leading to free cash flow of R14.9 million ($1.3 million) for fiscal 2018, compared with free cash flow of R28.0 million ($2.4 million) for fiscal 2017.

Capital expenditure payments increased by R42.7 million ($3.6 million) in fiscal 2018 compared to fiscal 2017 primarily as a result of increased investments in in-vehicle devices due to the continued increase in the number of bundled subscription contracts.

The Company utilized R62.5 million ($5.3 million) in financing activities during fiscal 2018, compared to R519.6 million ($43.9 million) utilized during fiscal 2017. The cash utilized in financing activities in fiscal 2018 includes the repurchase of 5.0 million ordinary shares, which resulted in a cash outflow of R18.7 million ($1.6 million) and dividends paid of R53.2 million ($4.5 million). The cash utilized in financing activities in fiscal 2017 included the repurchase of 200.8 million ordinary shares, which resulted in a cash outflow of R473.7 million ($40.1 million) and dividends paid of R53.0 million ($4.5 million).

Segment commentary for the fiscal year ended March 31, 2018

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.

For further information in this regard please refer to note 3 of the Group financial results for the fiscal year ended March 31, 2018.

Preliminary financial information

The 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 performed for the Company's year-end audit, which could result in significant differences from this preliminary 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 R12.5391 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at May 7, 2018.

Based on information as of today, May 10, 2018, the Company is issuing the following financial guidance for the full 2019 fiscal year:

• Subscription revenue - R1,596 million to R1,616 million ($127.3 million to $128.9 million), which would represent subscription revenue growth of 11.2% to 12.6% compared to fiscal 2018. On a constant currency basis, this would represent subscription revenue growth of 13.5% to 15.0%.
• Total revenue - R1,829 million to R1,859 million ($145.9 million to $148.3 million), which would represent revenue growth of 6.8% to 8.6% compared to fiscal 2018. On a constant currency basis, this would represent revenue growth of 9.1% to 10.9%.
• Adjusted EBITDA - R515 million to R535 million ($41.1 million to $42.7 million), which would represent Adjusted EBITDA growth of 16.6% to 21.1% compared to fiscal 2018.
• Adjusted earnings per diluted ordinary share of 29.6 to 31.7 South African cents based on a weighted average of 582 million diluted ordinary shares in issue, and based on an effective tax rate of 28.0% to 31.0%. At a ratio of 25 ordinary shares to one ADS, this equates to adjusted earnings per diluted ADS of 59.0 to 63.2 U.S. cents.

For the first quarter of fiscal 2019 the Company expects subscription revenue to be in the range of R379 million to R383 million ($30.2 million to $30.5 million) which would represent subscription revenue growth of 13.0% to 14.2% compared to the first quarter of fiscal 2018. On a constant currency basis, this would represent subscription revenue growth of 15.1% to 16.3%.

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 2019 fiscal year of R12.5000 per $1.00.

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

The Company 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 Company'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 Company's ADSs on the New York Stock Exchange, the Company has adopted a quarterly reporting policy. As a result of such quarterly reporting the Company 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 May 10, 2018 to discuss the Company's financial results and current business outlook:

• The live webcast of the call will be available at the "Investor Information" page of the Company's website, http://investor.mixtelematics.com.
• To access the call, dial +1-800-239-9838 (within the United States) or 0 800 998 654 (within South Africa) or +1-323-794-2551 (outside of the United States). The conference ID is 5328999.
• 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 5328999.
• 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 676,000 assets in approximately 120 countries. The Company'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, 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 2019, 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 Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC") for the fiscal year ended March 31, 2017, as updated by other reports that the Company files with or furnishes to the SEC. The Company 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 Company has disclosed within this press release, Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is a non-IFRS financial measure, and it does 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 Company'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, 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 Company has included Adjusted EBITDA and Adjusted EBITDA margin in this press release because they are key measures that the Company'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 Company's core business. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provides useful information to investors and others in understanding and evaluating its operating results.

The Company'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 Company's working capital needs;
• Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;
• Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; and
• other companies, including companies in the Company's 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 the Company's other results.

Headline Earnings

Headline earnings is a profit measure required for JSE-listed companies and is calculated in accordance with circular 2/2015 issued by the South African Institute of Chartered Accountants. The profit measure is determined by taking the profit for the year 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, 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 Company's core business by excluding net foreign exchange gains/(losses) from earnings. Accordingly, we believe that Adjusted earnings per share provides useful information to investors and others in understanding and evaluating the Company'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 Company's cash flows as it provides detail of the amount of cash the Company generates or utilizes after accounting for all capital expenditures including investments in in-vehicle devices and development expenditure.

Constant currency and US Dollar financial information

Financial information presented in United States Dollars ("U.S. Dollars" and "$") and constant currency financial information presented as part of the segment 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 ("R") at an exchange rate of R11.8255 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at March 31, 2018.

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

⁽¹⁾ _{March 31, 2018 figure excludes 40,000,000 (March 31, 2017: 40,000,000) treasury shares held by MiX Telematics Investments Proprietary Limited ("MiX Investments"), a wholly owned subsidiary of the Group.}

_{# Amount less than $0.01.}

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, unless otherwise stated.

The preliminary condensed consolidated financial statements were prepared under the supervision of the Interim Group Chief Financial Officer, Paul Dell, CA(SA). The results were made available on May 10, 2018.

The Group has adopted all the new, revised or amended accounting pronouncements as issued by the International Accounting Standards Board ("IASB") which were effective for the Group from April 1, 2017, none of which had a material impact on the Group.

Certain new accounting standards and interpretations have been published that are not mandatory for the March 31, 2018 reporting period and have not been early adopted by the Group in fiscal 2018. The effect of adopting IFRS 9, IFRS 15 and IFRS 16 is set out below.

Management is in the final stages of its project to adopt IFRS 9, IFRS 15 and IFRS 16 and as such the figures mentioned below represent our current expectations of the impact from these standards.

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

Summary of the expected impact on fiscal 2019 results of adopting IFRS 9, IFRS 15 & IFRS 16:
The impact on profit after tax for fiscal 2019 is not expected to be material.

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 R11.8255 per $1.00, which was the R/$ exchange rate reported by Oanda.com as at March 31, 2018. 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, 2018 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.

^{(1) Includes depreciation of property, plant and equipment (including in-vehicle devices).
(2) Includes amortization of intangible assets (including product development costs and intangible assets identified as part of a business combination).
(3) Asset impairments relate to the impairment of capitalized product development costs of R2.3 million ($0.2 million) in the Africa segment and R0.4 million ($0.03 million) in the CSO segment. In 2017, asset impairments related to the impairment of capitalized product development costs of R2.6 million ($0.2 million) in the Africa segment and R0.5 million ($0.04 million) in the CSO segment.}

6. Assets Classified as Held for Sale

The Assets classified as held for sale relate to the property held by the CSO segment. 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. Management anticipate that the sale will be completed within 12 months.

7. Inventory

The increase in the inventory balance is primarily as a result of additional components and hardware devices on hand to meet the Company's internal safety inventory requirements and in anticipation of future hardware sales.

8. Free Cash Flow

9. Share Repurchase

Fiscal 2018
On May 23, 2017, the MiX Telematics board of directors approved a share repurchase program of up to R270 million ($22.8 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 repurchase program will be funded out of existing cash resources.

At March 31, 2018, the following purchases had been made under the share repurchase program:

⁽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. At March 31, 2018, the Company had 564,420,145 ordinary shares of no par value in issue (excluding 40,000,000 treasury shares held by MiX Investments).

Fiscal 2017

On April 29, 2016, the Company entered into an agreement (the "share repurchase agreement") with Imperial Holdings Limited ("Imperial Holdings") and Imperial Corporate Services Proprietary Limited ("Imperial Corporate Services"), a wholly owned subsidiary of Imperial Holdings, to repurchase all 200,828,260 of the Company's shares held by Imperial Corporate Services (the "repurchase shares") at R2.36 ($0.20) per repurchase share, for an aggregate repurchase consideration of R474.0 million or $40.1 million (the "repurchase"). At the general meeting held on August 1, 2016, shareholders of the Company approved the repurchase in terms of the JSE Listings Requirements and the South African Companies Act, No. 71 of 2008, at which point the transaction was accounted for in terms of IFRS. The repurchase was implemented on August 29, 2016. Subsequent to the repurchase, the shares were delisted and now form part of the authorized unissued share capital of the Company.

In fiscal 2017, the financial effect of the transaction was as follows:

10. 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 2018 (excluding dividends paid on treasury shares):

• In respect of the fourth quarter of fiscal 2017, a dividend of R11.3 million ($1.0 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 0.2 U.S. cents per share.
• In respect of the first quarter of fiscal year 2018, a dividend of R14.0 million ($1.2 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 ($1.2 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 ($1.2 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.

The following dividends were declared by the Company in fiscal 2017:

• In respect of the fourth quarter of fiscal 2016, a dividend of R15.2 million ($1.3 million) was declared on May 24, 2016 and paid on June 20, 2016. Using shares in issue of 761,337,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 South African cents and 0.2 U.S. cents per share.
• In respect of the first quarter of fiscal year 2017, a dividend of R15.3 million ($1.3 million) was declared on August 4, 2016 and paid on August 29, 2016. Using shares in issue of 763,087,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 South African cents and 0.2 U.S. cents per share.
• In respect of the second quarter of fiscal year 2017, a dividend of R11.3 million ($1.0 million) was declared on November 3, 2016 and paid on November 28, 2016. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 South African cents and 0.2 U.S. cents per share.
• In respect of the third quarter of fiscal year 2017, a dividend of R11.2 million ($0.9 million) was declared on February 2, 2017 and paid on February 27, 2017. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 South African cents and 0.2 U.S. cents per share.

11. Acquisition of non-controlling interest

In June 2014, the Group entered into a quotaholders agreement with Edge Gestão Empresarial LTDA ("Edge"), whereby Edge was granted a 5% holding in the equity interest of MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada ("MiX Brazil"). Prior to this quotaholders agreement, Edge held a non-controlling interest in MiX Brazil of 0.0025%. Edge is a Brazilian-based investment company controlled by Luiz Munhoz, the Managing Director of MiX Brazil. The increase in the equity interests granted to Edge was in respect of services provided by Luiz Munhoz to MiX Brazil, in his role as Managing Director of MiX Brazil. In terms of the quotaholders agreement, Edge had an option to transfer its interest in MiX Brazil back to the Group at fair value. The quotaholders agreement with Edge represented a cash-settled share-based payment.

In September 2017, Edge exercised the put option in the quotaholders agreement. In terms of the subsequent sale agreement, MiX Investments acquired Edge's 5% equity interest in MiX Brazil for R1.4 million ($0.1 million) which increased the Group's interest in MiX Brazil to 100%. As a result, the Group recognized a cash-settled share-based payment expense and liability of R1.4 million ($0.1 million), which was subsequently settled. The non-controlling interest related to MiX Brazil of R1.5 million ($0.1 million) was also transferred to other reserves within equity.

12. 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.

13. 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 R43.7 million ($3.7 million). No loss is considered probable under this arrangement.

14. Change in estimate of useful lives of product development costs capitalized

During fiscal 2018, the CSO segment reassessed the useful lives of certain projects where, on average, the useful lives were increased from 5.0 years to 6.5 years. The reassessment of the useful lives resulted in a R4.5 million ($0.4 million) reduction in the product development amortization expense relative to what it would have been in fiscal 2018 had the change not occurred. The amortization reduction expected to be charged to the income statement over the future fiscal years is as follows:

15. 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, the Group has recognized in the income statement cumulative tax incentives in addition to the incurred cost of R20.5 million ($1.7 million) in respect of S11D deductions, of which R2.3 million ($0.2 million) was recognized in the current financial year. R17.7 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 the Group is unsuccessful in this regard, the Group will not recover the R2.8 million ($0.2 million) raised at March 31, 2018.

Impact of foreign exchange movements

The impact of foreign exchange movements and the related tax effects on the Group's effective tax rate is shown below: