PowerFleet, Inc. (AIOT) Earnings Call Transcript & Summary

Nice to see everybody. First time we get to have both sides all in the same space and tremendous treat, again, to meet all the MiX people [indiscernible]. I wanted to give you guys a little bit of a history of what we have to give today. It's about 2 years ago that the PowerFleet [indiscernible], we need a new manager, a new CEO, somebody special, somebody who knew logistics, transportation. But somebody who, at his core, was a software guy. And we spent a while, quite a while finding Steve. And couldn't be more grateful that Steve's here. I think some of you know him very, very well for a couple of years. Some of you just started to get to know him, but he is an undeniably [indiscernible] company or that Steve's here with us, and it's good. [indiscernible] we decided we needed to rebuild the team to bring in, again, more of that software mentality. We brought in a remarkable group of people [indiscernible], a lot of them on our side today. It's from MiX [indiscernible]. The mandate of the Board was you can hire anybody you want, but cost cannot go up. So we've done a great job of that. As a matter of fact, cost has come in significantly below the threshold. So year 1 was rightsizing the business, building a team, Unity division and the -- getting of the development of Unity. I don't think we had a year when Steve came in and he would figure out something as important and innovative. He's going to be -- [ we'll ] talk a little bit about that. After year 1 and things started to settle down, not too much. Steve said, okay, now we need to continue the journey. We started to talk about M&A. We talked about Europe. We talked about data. We did a really incredible deal with Movingdots, bring another foot into Europe, where we see huge opportunities as well as in North America. And last April, just a few of us, a few of the MiX team, we have the PowerFleet team and [indiscernible] Chicago. We started kind of gaming out what this combined business would be. And I've done a lot of M&A in my career. Rarely have I seen such complementarity in terms of skills, the geography, relationships as we saw the [indiscernible] and PowerFleet was able to do. But to do many deals is art. And at the end of the day, it comes down to culture. And that meeting in Chicago in April, I was convinced that this was a deal we can really do, really because the people on the MiX side were really a lot focused on the PowerFleet. And it's been remarkably pleasant getting to know everyone. I think with each successive iteration as we've gone deeper and deeper, I know we, on the PowerFleet side, feel increasingly fortunate that we have such a great team on the MiX side coming in and joining us and build this together. So with that in mind, the teams -- over the last few months, even though we've been working on a deal, working on the financing or done the story, the teams have really gotten to know each other and have gotten working together in a way that you would expect that would hopefully begin once the deal closes. And I think one of the most exciting things we can see today is what looks like an integrated group. And the MiX folks, the PowerFleet folks were really already starting to work this one. We're going to have to kind of wait until the deal closes for it to be [ fun ], but the business is in the works, we're incredibly excited, and we're grateful that everyone is here to begin to come out of the next phase of the journey. Thank you, [indiscernible].

Thank you, Michael.

Thank you. It's Andrea. I'm sorry. I've forgotten the intro to our incredible CMO, Andrea. So thank you. Thanks for -- and all of this is because of Andrea, sorry. Thanks.

Team effort, for sure. Hi, everyone. All right. So first and foremost, how is everyone doing today? Let's get the energy up a little bit. Good. Okay. Well, if we need any sugar, it's off there in the corner. So feel free, over the course of the event, to go grab a drink, grab some snacks, and let's enjoy our time together. So as Michael mentioned, my name is Andrea Hayton. I'm the Chief Marketing Officer at PowerFleet. And on behalf of myself and the entire joint leadership team, thank you so much for being here today with all of us. We have a jam-packed agenda, valuable content and incredibly energized leaders to walk you through it today. So here's what's on the agenda. First and foremost, we're going to wrap up closing remarks in just a moment. We're going to head into a new corporate video. You have a sneak peak, and we're super excited about it. We're then going to head into the PowerFleet vision and strategy. We'll then transition into the business metrics as well as the value creation. We're then going to talk a little bit about the Better Together combination between PowerFleet and MiX. Then we're going to get into the integration of our combination as well as the EBITDA expansion. We'll transition into a market view as well as into the Unity innovation and products. We'll then get into our customers and our markets, and we are going to wrap up with a year 1 and key takeaways. We will have an interactive Q&A at the end of the day. So please keep your questions until then, and then it will be moderated at that point. So I will wrap this up. We're going to watch a short video so that you can all learn a little bit about who PowerFleet is. [Presentation]

All right. So that's a flavor of what you're going to get all today. So without further ado, it's my pleasure to introduce our Chief Executive Officer, Steve Towe.

Hello, everybody. Oh my goodness. Well, would there have been a ROTH conference, a Needham conference and about 3 others in the last 2 days? I think so. So look, we really appreciate you taking the time with us. For us, that means an awful lot because we know this is a very challenging season. So we'll try and ensure that you get a really extensive view of the future company. And you'll hear from a lot of people who are ultimately here to make huge shareholder value creation. So this is a truly exciting time for this business, and the combination of MiX and PowerFleet, we believe, is going to be game-changing in the industry and, we believe, is going to be game-changing for our investors, our customers and our colleagues. Ultimately, we want to be at the forefront of the AIoT industry. Many of you will have heard for many years, the term telematics. You will have looked at the providers in the space. I spent 16 years as a provider in that space in a pretty successful bunch of companies. I then spent 7 to 8 years away in the retail tech software industry. And that was in 2015, '16 when the transformation that was taking place was significant around digital transformation, around the use of data and AI. And I see now a very similar time to the industry in which we serve, where ultimately, the dynamics are changing dramatically. The technology is evolving at a very, very fast rate. The competitive threat is actually coming from companies outside the space as much of those inside the space. And inside the space, I see a few companies that are doing really well and have valuations with which we crave. And there's an awful lot of PowerFleet and MiXs who are underappreciated, undervalued and undercherished. So taking the opportunity to come back in the industry and having spent that time out of what I call my SaaS finishing school ultimately gave me a perspective on the industry that I don't think exists in totality today from my perspective of what I see is taking place in that industry. So ultimately, when I came back to the industry, I said to myself, what does this look like in 2027, 2028? Which companies will exist? Where will the value be for customers? Where ultimately is the market going to drive to? And who can be successful and why? And that gave me the idea in terms of the strategy for PowerFleet Unity that you'll hear about. And PowerFleet for me was an opportunity to create a vehicle as a starting point for a consolidated run on becoming a true market leader in the industry at the very top table. And you'll read words on the page there, just in terms of data intelligence, integration, device-agnostic, open platforms, AI, data science. Not a language that is well used and accustomed and isn't at the guts of the majority of the companies in the industry today. The combination with MiX gives us a real shot at taking a true market leadership position. It also gives us a true shot at achieving true SaaS valuations. And you're going to hear a lot from our colleagues today as to how we're going to execute on that. For those of you that followed our story in the last 2 years, I'm grateful to Mike for giving me the opportunity. I'm also ungrateful for Mike for what I actually inherited in terms of the amount of work that we had to do to get PowerFleet in a position to go on that consolidation journey. What we are all about is the following 3 things: people, platform and partnerships. For me, everything starts and ends with people, the talent, the culture, the organization. We will produce great tech. Other companies will produce great tech. The difference will be the capabilities, the camaraderie, the effectiveness of the people within the business to win hearts and minds of our people, and then ultimately, our customers, and ultimately, our shareholders as well. At the center of everything we do is around platform. We're going to talk today about a data highway, a data ecosystem and ultimately, the profitability of the company. The value of the company will come through the effectiveness of the platform that we have created and we will continue to build on. Then finally, partnership. It's been a hard journey over the last 2 years for our shareholders to trust PowerFleet. Many of you are in the room. Many of you, when they met me, saw this guy who -- well, who is this guy? He's from private equity. He's British. And ultimately, we've heard all this stuff before. And I have to say I'm truly grateful for the commitment that our shareholder base has shown to me and the team as we've done some very tough stuff within that first 2 years. My commitment back to our shareholders at that time was please trust us, which is hard for investors to do. So therefore, to earn that trust and keep that trust, we had to come out and say, this is what we're going to go do, and we want you to measure us on it. And we will update you as to our progress. We're going to make that same commitment today for the next 2 years. So you're going to hear from us exactly what it is we're going to go achieve. And all of the leadership team of the combined business are very focused on ensuring that we deliver against those commitments. We talked a lot with our analysts this morning. And I'm very conscious that people come on these stages with big dreams, big ambitions. When I sat down with some of our analysts, you can see the eyes roll back in their head. Here's another one, a great dream, going to go on this journey. Ultimately, our promise is we turn those dreams into reality. And what you'll see over the next couple of hours is an intense level of detail as to how, as the combined business, we're going to deliver on those promises. So you've probably heard this on our earnings call. But in terms of scale, technology and the P&L and the balance sheet, there was a huge transformation that had to take place. The first thing I needed to do was bring in a team with the experience and capability to go on that transformation. Within 4 or 5 months, we'd swapped out 95% of the leadership team. David, our CFO, was the last cog in the wheel to join us in January this year. We knew we needed to move from a hardware-centric business into a software business. What attracted me to PowerFleet was a great customer base, some really good tech, some solid people, but it had the lack of vision and execution capability to move from one to the other. And we'll talk a lot about where the software end of the market, the data intelligence end of the market is winning the day today. We knew from a technology perspective, we had to bring something different. Building another platform that would take 5 or 7 years to interpret all of the functionalities that are being built within the company over a 30-year period would have been too late. Therefore, where we decided to focus was in the layers of architecture, data science, data warehouse and then the monetization of that data in ways in which are particularly being consumed well in the industry today. And you'll hear far more about that as we go. And then finally, we had a hamstrung balance sheet. As Mike said to you, you can do what you want, Steve, but you've got no more money. As our investors said to me within first 3 months, don't even think about doing a capital raise. So we had to be super scrappy in terms of cost reengineering to be able to put enterprise salespeople on the pitch to improve our message in our go-to-market, to bring in data software engineers. And ultimately, we had a huge transformation within the scope of the business, at the same time, still growing recurring revenues significantly during the period. As we got into 2023, my ambition was to ensure that by the time we get to 2024, we can have a real shot at the top table in the industry. What I knew and understood was at the scale that PowerFleet had as a stand-alone business, it was going to be very difficult for us to get there. So we entered into a situation where ultimately, we wanted to very much focus on how can we find the right partner to come on the journey with us. I'm delighted to say, with Joss and the team of MiX Telematics, who you will get to enjoy during the period, this couple of hours, we found the perfect partner. We found a very credible partner. We found a very well-run business. That means that we don't have to go and do a transformation in the same way as we did at PowerFleet. We can do a very quick, agile integration and move forward with our journey. So ultimately, this is a truly transformative combination. You will see over the next couple of hours, as I said, the detailed plans of how we are going to grow and maintain a double-digit growth story and also as well, how we're going to have significant improvement in EBITDA across the combined business and be a Rule of 40 company by the end of 2025. We're not talking about the next 5, 7 years. There's lots of people who have got all of those projections. I'd like to talk in a 2-year period. Why? Because it's tangible. Why? You can believe it. Why? Because ultimately, it puts our ass on the line to deliver those results in short order. And that's the commitment that we're making. So we believe very much that through the technology play that we've got, through the financial performance that we will improve in the combined business, that realizing true SaaS platform valuation is something well within reach of PowerFleet within a short period of time. So our ask is to trust that journey. Our ask is to monitor us against what it is we said we're going to go do. We will be very transparent. When we talk about those partnerships that are important to us, authenticity, transparency, honesty, delivery are all at the core of what we do, whether that's our customers, whether it's our shareholders, whether it's the relationships we have in the business. So sit back, relax and enjoy the next couple of hours in terms of how we're going to get there. And the key tenet of that is the Unity platform strategy. Are you going to hear anything from me today that is rocket science that in other SaaS environments, in other logistics and supply chain areas doesn't exist today? No. But it hasn't been done in this industry. And there's a significant opportunity for us to deliver incremental value, incremental revenue, improved ARPU and improved stickiness through the Unity platform. We started putting it in motion within 6 weeks of me joining the company. And I'm going to talk through the different facets of it. We've been out. We've proven it. We have paying happy customers, referenceable customers on it that are proving out the thesis. One of the key reasons that MiX decided to come on the journey -- and you'll hear from Joss, the MiX CEO, shortly was the Unity strategy. Does this exist in the Samsaras, the Geotabs of the world? No, it does not. So we have a real shot, and we're 2 years now into the advancement of it to really take a market leadership position. So what is Unity? So first of all, having spent 16 years in the industry, having understood the competitor out there, having seen that there are millions of devices already installed, what I knew was that just selling our own hardware was not going to get us to scale. So being device-agnostic, being able to bring in different data sources that ultimately allow a customer to harmonize that data to understand it and then to use it in a very simple fashion is the key to business change in the current circumstances. So we now have over 130 third-party manufactured devices that we can port into Unity's platform. That means if you're a customer who is already deployed, you're unhappy with the experience you're getting, you can move to Unity within a few days. It means that from an acquisition perspective in the future, if we want to continue the Unity story, we can move customers to a new user experience that's going to be leading edge within a very short space of time. One of the big things in the industry has been the OEMs are going to take over the world. It's going to kill all of you. There's lots of good reasons why that is not the case. And I'll give you a couple of them. One is the way that they take their data is mostly internally focused. Secondly, a customer will very rarely own the single source. And thirdly, if they move source in terms of manufacture of the assets, then they have to change their telemetry provider. But what we wanted to be is be OEM-friendly. Because customers do get this data, they want to use that data, but they want to make sense of that data. And then things are maturing. So enterprise customers very much want to get real business change, but the quality of the data that they want to look at depends on data that is important to them and important to them only. So we have a very flexible architecture to bring in third-party data, and you'll hear more about that. All of that is a monetization opportunity. We have customers today who are paying for us now to port those devices. It means we're more of a true software play. We have customers today who are taking API feeds from our competitors and port them into Unity, paying for that service because they want their data in a single pane of glass. They want it harmonized. So that is a monetization opportunity. The middle part is then where the magic happens. So AI has been and still is and becoming more of a threat to the traditional telematics providers. People want predictive data. They've got spaghetti of data across their organization. You'll hear of examples of CTOs pulling their hair out in terms of not being able to make sense and provide good, solid opportunity for the operators to make change in their business. So simplification, predictability, the ability for it to be automated to take people on their digital transformation is super critical for the future of the industry. And then finally, what we then need to know and understand is the way that people consume data today is dramatically different from how telematics providers have provided data to their customers. The days of portals, ring your own reports, have somebody looking at screens, that's gone. And where the industry is struggling to go from being a commoditized sell into a value sell is because they don't have the flexibility in how customers want to consume that data. What Unity does, it brings more monetization opportunity. So how does this stuff work? Because you've got all of these platforms, you've got all of this functionality. They are all on Unity today. So they still receive all of that functionality today. But what we're able to then do is offer them premium solutions at a premium price on a modularized basis on specific business issues that are important to them. And they are AI, data science-led applications around huge business drivers at the moment, safety and security, sustainability, insurance, compliance. What that is doing is giving us the ability to go and sell to different budget holders. If you sell safety solutions, whether you're on the road or whether you're in the warehouse, 9 times out of 10, the person responsible is the same person. The safety budget is with that individual, not the guy who's buying the asset. The guy that's buying the assets has been where the industry has been most targeted in terms of where it sells to. We have the ability now to sell with the business-based applications and the value propositions to CEOs, to CFOs, to Head of HR, to Head of Compliance, opening up a whole host of new enterprise selling capabilities to be able to go and sell more value to customers. When I talk about the ability for customers to consume data, then they also don't want all these disparate systems. They don't want to look into a telematics system, a planning system, an ERP system, a HR system, a payroll system. They want data to be integrated. That's great for PowerFleet. Why? Because we come super sticky. So we're going to give you examples of where pulling in device data makes us sticky. We have a number of our own applications that people are using on a mission-critical basis makes us sticky. Where integrating into third-party systems makes it sticky. We call that unified operations. So again, think about the industry that's been selling around an asset, and there's a bunch of use cases in terms of that asset, but ultimately, people are being utilizing their and productivity, operational control. Around that asset is a whole bunch of business processes. There are a whole bunch of systems. The value proposition of us combining with those systems makes our output better for customers. So we now have the ability to actually look at propositions across 3 things, not just the mobile asset, the green element that you've got there, but also the human being and the business process. What we mean around the human being is the person who is performing and acting on that specific asset. So there's a whole host of use cases there. Performance management, safety, compliance, damage, HRIS, payroll. Again, we have the ability to integrate our data into those systems. Why are we a center of truth? Why do we have the right to be able to think that we can be the mission-critical glue within those systems? Because actually, what we provide is a source of record. If you look at the business process, so whether you are Walmart, trying to deliver goods from a warehouse to a store, whether you're Avis, trying to marry a vehicle with the customer order and get it unlocked and checked in and checked out, you're all trying to improve a business process, for competitive advantage, for customer service, for efficiency. So you plan, you communicate, you execute, you operate, you administer and you approve. What we do is tell you what actually happened. So if you take a cloud system, if you take any kind of planning system, they have algorithms that can be AI-based. They can try and, well, okay, what time to leave the warehouse? And what time the goods need to be at the back door of the warehouse? How long it's going to take to do the journey? They could try and calculate whether the drop should be 5 minutes or it should be an hour. We can tell everybody what actually happened. So businesses are looking at things like that saying, well, actually, we were never going to reach out to schedule for the day because actually the goods didn't get loaded in time from the forklift truck. The guy actually didn't arrive on time to actually put the goods into the vehicle. The route that we'd actually planned was never going to be effective in terms of the time it actually takes to get there. And actually, what we didn't know was we were delivering to a 60-foot skyscraper, and we only allowed 10 minutes to do it, and the lift took 40 minutes for him to actually get up in the lift. So they can figure all of that stuff out, and we can add AI to that, it makes them a lot effective. That's just one example of a multitude of things. And in the business process, we're talking about ERP, we're talking about planning, TMS, CRM. This is taking the same data that all telematics companies have in their armory today, but adding a lot more value in the services that they offer to customers. And this is a true SaaS play. And over the last 2 years, we've proved it out, and you're going to hear about our ability to put a company behind this that ultimately will have significant value to our shareholders. And now I think this is going to be the 2 or 3 slides that you're going to be looking forward to the most. I'm going to ask David, our CFO, to come and join me to talk about the value creation opportunity and to really give insight into what we're committing to and what we think we can achieve within a 2-year period. Thank you.

Great. Okay. Well, wonderful to see everybody here today. Again, David Wilson, CFO. I have been a public company CFO once before, and I had the pleasure of outperforming the sector by 16x. So clearly, you want to try to identify those opportunities and repeat them. And the reason I'm here is I think there is such an opportunity in terms of our ability to create outsized shareholder value. So in terms of what we're going to go through today, I'm going to spend some time just going through the opportunity in terms of why the combination of both MiX and PowerFleet is so compelling. So we're going to spend some time just going though that, where we are from a relative value combination. And as I do that, I look around this room, obviously, you guys invest money for a living. You guys try to identify those opportunities where the deck of cards is heavily stacked in your favor as possible. So that's what you do. I'm primarily here for the options. So I'm primarily here for the equity. And I'm here because I want to identify those opportunities where I can get an outsized return. And you guys will get the benefit of portfolio risk, I solely get concentration risk. So I have to be super selective in terms of how I choose to spend my time, and that's why I'm here. So in terms of the materials we'll go through, we'll go through just where we are today, the opportunity in terms of upside from a value creation standpoint. We'll go through just how readily available the opportunities are in terms of EBITDA expansion. This is a team that has grown up in private equity. This is a team who knows how to execute at pace and with a great deal of effectiveness as well. So we'll see that as well. What Steve talked about from a product strategy standpoint in terms of Unity, that is, one side of the coin is just the problems that we solve. The other side of the coin is, what does it actually mean from a dollars and cents standpoint? What does it mean to the business? And Unity is an engine that can drive this business to best-in-class net dollar retention. It's going to drive a higher proportion of our growth coming from pure software. So it is a business strategy that generates great shareholder returns. So we'll go through that as well. So just moving through in terms of the deck in terms of current valuation. This is a scatter graph I'm sure you're all familiar with. So it's a Rule of 40 scatter graph. And you can see the dots in terms of where things are. You can see PowerFleet at the bottom. So on a Rule of 40 basis, we're currently at 20. We trade at 1x revenue. As we go through today, you're going to get a sense in terms of how this business is being transformed and what that means from a value creation standpoint. As Steve said earlier, we're committed to being a Rule of 40 company within 2 years. So in terms of where we sit today, we think this is a great place to put time, effort and money to work, and that's why we're here. So in terms of Rule of 40, obviously, there's 2 drivers. One is just the revenue growth opportunity. So we'll start with Unity. So as Steve said earlier, people run heterogeneous fleets. It's not uniform. It's not just one type of devices. It's multiple type of devices. If you think about your portfolio that you manage, imagine you had one screen for the NASDAQ and one screen for the New York Stock Exchange, that would be a pretty clunky experience. That's what people who run fleets experience today. So that ability to bring all of that data into a single view, that is an acute pain point that our customers face, and that is one that we're solving. And as we solve that acute pain point, we also get to monetize more devices, more subscribers. We will earn money, and we are earning money today from devices that we have not installed. This isn't your traditional telematics business. This is a way to drive a lot more volume in terms of pure software in terms of how we drive top line growth. So we have that benefit. So we're going to grow in terms of just the scale, the volume of devices that we get to monetize. The other one is value-added services. So in addition to getting more volume, we're going to solve a broader problem set. So we're going to solve deeper problems, deeper insights, provide that more broadly in the organization, and we will get our fair share of economic rent in terms of doing that. So you have the benefit in terms of more volume, and the actual price we get to charge will increase because we're solving a broader problem set. And then the final piece is, as we solve more problems in disparate parts of an organization, we become very, very sticky, so retention works for us as well. So what we're executing, the set of assets that we have, the team that we have in place, we have the ability to be a Rule of -- so a net dollar retention business, that's north of 120%. If you think about 120% as being sort of pretty much top of the class, we have everything in place where we can hit that benchmark over time. So the underlying strategy of this business lines up very, very well from a shareholder value creation. It lines up very, very well in terms of driving more top line growth. So that is a major source of growth for the combined business. In addition to that, there's your traditional revenue synergies. So the joy of bringing these businesses together is just the complementary nature of the assets. So we have, for example, in-warehouse solutions. If you look through MiX's customer base, they have many customers, many large customers who have massive warehouse operations. Customers would generally buy -- prefer buying from fewer as opposed to more vendors. The joy of both MiX and PowerFleet is, our customers actually like it. So we are being very effective. We are held in very high regard, and our customers want to do more business with us. Sorry, that's me. Thank you very much. So we have that benefit in terms of the cross-sell. And if you see -- and you'll meet Joss later on this afternoon, Joss has been banging the table since I've been here in terms of a better set of solutions for in-cab. That is where MiX excels. So we have the ability to have a broader product set to sell to customers who want to do more business with us. So from a revenue standpoint, from a revenue synergy standpoint, we're very well positioned. Unity again is something we can sell into the MiX shareholder base as well -- sorry, customer base. So that will work well for us as well. And then the final one is just one thing that you'll hear from Charles later today is just the global footprint that MiX has built out. So they have a 135 global partners who are hungry to sell more with us. So the industrial solution that we have, the in-warehouse solution that we have, that is a great fit for the existing global partnerships sales channel that MiX has built. So well positioned there. Geographically, if you look at the source of the growth for PowerFleet, it's been dominated by North America. That's where we're growing the quickest, the fastest. The reason we're growing more rapidly there than anywhere else is because that's where we started to roll out Unity. So we're seeing the proof in the numbers in terms of just the traction that we're getting in terms of solving this problems set. So that will work well for us. We expect that to continue. The area which I'm probably going to go the quickest is Europe. So as Steve said earlier, he spent 16 years in the industry. He was centered in Europe. He knows all the players. He has a network of people he can pull in. That is a market where we should have more than our fair share here on out. So Europe will be a big area of growth for us in the future. And then the final one is, thus, the additional sources of revenue we can generate based on what Steve said earlier. We'll sort of build our way up to this, but this is basically a train with many carriages in terms of what we can hook up and add on. All in all, we have the ability to grow at north of 20%. We can be a good, solid business growing at plus 20% at scale, highly valuable. In addition to the top line growth, the other piece of Rule of 40 is obviously EBITDA. We're going to be disciplined. We're going to drive the P&L. So we're also generating cash in terms of just performing well and have that ability to reinvest in the business as and when we have compelling opportunities. But in terms of the first one, on the back of this deal, we have identified north of $25 million of savings we believe we can extract within 2 years. Melissa Ingram, who you're going to hear from in a moment, is a master at this. She has this buttoned down. We're effectively going to be working for Melissa. But if we don't extract more than $25 million in fewer than 24 months, we're going to be very disappointed. So that is readily available within our control, and we're on the hook to deliver this within 2 years. The other one is gross margin. So again, differentiation. This isn't your classic sort of sell a box and earn some revenue on the back of it. It's different. We're solving a much broader problem set. Growth will be primarily driven by software, additional services, that is, higher-margin business. So the margin is going to increase over time. And again, as we're solving a deeper problem set, we get to charge more for it. So ARPUs will go up as well. We'll effectively be able to monetize the same piece of data multiple times. That is the beauty of the Unity strategy. And then the final one is operating leverage. One of the joys that we have is we have an affordable geography in South Africa. There's more things we can do in South Africa. MiX is a very well-run business with shared services to support their global operations. PowerFleet is going to take full advantage of that. Well positioned there. The way we do business today from an ERP standpoint, we have a mishmash of systems, mishmash of processes, and we will standardize those. The G&A [indiscernible] today of the combined business is 33%. There's massive opportunities to improve that [indiscernible]. That is money that drops straight down to the bottom line. And then the final one there is in terms of just the progress from a go-to-market standpoint. If you are a net dollar retention of north of 120%, you're very efficient in terms of how you sell. It costs you a lot less to sell to an existing customer than it does to sort of land a new customer. So there's natural sales efficiency in the model as well. So all in all, great top line opportunity, operating leverage embedded in the model, which leads to the ability to generate a Rule of 40 within 2 years of the close. So as Steve said earlier, we're going to hold ourselves to account. We are committing within 24 months of close to be a Rule of 40 company, growing top line at north of 10% and generating EBITDA of 30%. That is the goal that we're setting out for ourselves. In terms of just looking at the numbers, you can see modest growth in 2024. Obviously, the integration is going to take a lot of attention from management. We'll be growing even as we're doing that. This also takes into account some headwinds in Israel. But all in all, we see our sales growing at 5% and north of 10% from 2025. Long-term expectation is this is a 20%-plus growth business. You can see gross profit margins expanding over time. We will grow most quickly in terms of pure SaaS software. That obviously margin profile is very different than the profile that we have today. Adjusted EBITDA, you can see 30% EBITDA margins by 2025. That is the goal that we're setting for ourselves. Most of that just comes from things within our direct control. The $25 million of efficiencies we can drive will be the major driver of EBITDA expansion over the next 24 months. So to circle all the way back to close to where we started, from a valuation standpoint, we think we'll be Rule of 40 by 2025 on revenue of sort of $300 million to $340 million. If you look at how businesses trade who can demonstrate the, a, software, b, have the right metrics behind it, net dollar retention being a key one, you do not trade at 1x revenue. The revenue multiple for those types of businesses are within the 5x to 9x revenue range. So that's the goal that we're setting for ourselves. We will hold ourselves to account. Execution risk is the single largest risk that we face. And for those of you who aren't familiar, if you listened to the earnings call we did earlier, I guess, this month, last month, it's worth just listening in terms of the goals that we set for ourselves and our ability to hit them. We intend to have a similar call in 2 years' time, where we refer back to this and we talk about the progress that we've made, the results that we have delivered. So again, I appreciate your time. I appreciate your attention, and a lot of things to go through today that will back up everything that I just went through. Thank you very much.

I've also realized I worked with a lot of tall people because this stand is like almost as big as me, so I will come to the side. So far, we've talked an awful lot about PowerFleet. The only reason that we're able to be -- to come and talk about this exciting opportunity is the fact that we found the perfect partner to go on the journey with in MiX Telematics. And I'm going to ask Joss, the CEO of MiX, to come and join us to give his view on the transaction and his excitement for the opportunity. But just before I do, in terms of reference to Joss, so he won't say this to you, but I will. So for 27 years, Joss has been the owner, the founder, the driver of MiX Telematics. I knew of him 20 years ago. He was far more handsome at that point. But as the years have come, he's kept his grace in his presence. But what we all in the industry, people that grew up in the industry, all we saw MiX as the real standout quality business in terms of driving the right balance of revenue and profit. And they have an exceptional business. So for Joss to come to the table and he'll give you the stories about how it came and be willing to support this transaction and be willing to ultimately work with me on me taking this combined business forward, I am truly grateful and humbled for that opportunity. So we met, and he'll tell you more of the story in April of this year. We're now in November, and we've signed the transaction. That also gives you a great understanding of the execution capabilities of both teams to do such a huge undertaking in such a short space of time. So I think I've said enough. Joss, please come and join us. Please, everybody, welcome Joss from MiX Telematics.

Hi, everyone. It's really awesome to see so many people here, so many familiar faces, a lot of new faces as well. I really appreciate the effort. Yes, it's been a hell of a 6 months. It's a journey, I guess, that from our perspective, we started about a year ago. Why? Long-suffering shareholders have heard the story from me for a while now about looking for a transformative move for MiX. And yes, it's been a while that we've been languishing in this microcap [Foreign Language], I guess, you'd call it, if I'm being polite about. We did do a small transaction about 18 months ago, about $10 million of revenue. But we soon realized that if we did one of those a year, it would be too slow to get us out of this, I guess, the subscale position that we find ourselves in. So about a year ago, we decided that we were going to focus on looking for transformative opportunities. We've got Steve Blackhart onboard full time to help me in this endeavor. And we identified, in fact, 3 companies to have conversations with. PowerFleet was one of them. We've reached out to all 3. We've got favorable responses from 2 of them. From one of them, being PowerFleet, we got the cold shoulder. So we started conversations with the other 2, and in fact, with 1 of them got into quite serious discussions. In the midst of those discussions about 7 months ago, I've got a call from PowerFleet's bankers and asked if I was interested in having an introduction to Steve Towe. I said yes. I found out then that they had already embarked at the time when we were reaching out to them on a limited process, and we were on the list of all the companies they want to engage with. So I said yes, I'd appreciate the introduction. They said there's one problem. If you do get close to being able to agree on a transaction, Steve wants to lead the future combined company. So I thought to myself, that's going to be a pretty short discussion. What I told the banker was, I'm open-minded. And I've always maintained in the past that my position as a shareholder comes in front of my position as a company executive or a founder or whatever it may be. So I decided to pursue the conversation, and we had the introduction. And I think it was in April, we finally met face-to-face and broke bread in a meeting in Chicago. And over dinner, I rapidly realized that what stood out for me is that Steve and I share the same affinity in terms of very similar values. I guess I could call them old-fashioned family values and culture. And there was a great fit between the way both of us viewed our organizations, viewed the world, viewed the approach to our teams, earning respect, giving respect. And my open-mindedness, in fact, expanded even further. In the following day, we met with a small team from both sides and had a full-day workshop. And it was amazing how so many things appeared to slot into place during those discussions. And it rapidly become apparent that there was an opportunity to do something really special with these businesses. So the obvious one is clearly putting these businesses together results in a rapid increase in scale. So it pretty much doubles the size of our business from a revenue perspective. A big uplift in subscribers. Every time Steve mentions the number, it gets bigger. But I guess, his point is valid is that we're adding subscribers by the minute in our business, so -- in our businesses, so that number will tend to grow. We identified -- certainly in theory at the time, it was untested, but a bunch of synergies, cost synergies that we could unlock in this business. David mentioned a number of $25 million-plus. That's certainly a number that came out in the first workshop. By the way, since then, we've done significant testing of this number. Deep diligence on both sides, a lot of interrogation of that opportunity. It's probably worth mentioning that we're in a pretty complex world. As you all know, we have a primary listing from a MiX perspective in South Africa. We are currently under South African JSE regulations, where we are not allowed to publish any forward forecasts without having auditors review our forecast for our forecast assumptions. So the slide that David showed you today had to go through independent audit review. So we had to find an independent auditor, not MiX's auditor and not PowerFleet's auditor and present our models to them and our assumptions around how we see this business going forward, and those numbers have been reviewed. David made the point that he would be disappointed if we never achieved at least $25 million in under the 24 months. David, as a future outside shareholder, I can tell you that I'm going to be seriously disappointed if those metrics aren't achieved because we've been through it in great detail, and it's an important part of the story. So again, from a scale expansion perspective, we're looking at a business in this coming year, $300 million-plus in revenue, significant adjusted EBITDA expansion, and that should naturally result in cash flow acceleration, cash flow generation. I know there's some of you here that have known me for a while. I am an old-fashioned kind of guy. I happen to like profitability and cash flows. I particularly love cash. And I think it's critical for a business to have optionality. And the more cash you can generate, the more optionality it gives you, including the ability for -- or PowerFleet to be able to make decisions like potentially investing in more bundled deals, if that's what they chose to do. More acquisitions, et cetera, et cetera. So a huge scale uplift both in terms of the top line and the bottom line. An injection of an additional 1 million MiX subscribers, many of those are large enterprise customers, which will add to the Unity strategy, providing a lot more data for ingestion and monetization. So that's a particularly exciting aspect of it. And yes, talking about the Unity strategy. I got pretty excited in our early conversations about Steve's vision around hardware-agnostic, a truly hardware-agnostic platform because we've all kind of fiddled around with it, but he has been putting all of his energy and focus in that direction. And as you've all heard, now he talks a good game. He talks the strategy, explains the strategy well. And he is committed to delivering on the strategy. And I think it's absolutely right for this combined business. We've got a bunch of indirect channels -- channel partners in our business. So as most of you are aware, we built an enviable global distribution enterprise. We have customers in 120 different countries and giving PowerFleet, and the Unity platform and the additional products that they would bring to this combination access to that channel is a fantastic growth driver opportunity. And that brings me really to the cross-sell and upsell opportunity. It was uncanny at our first workshop how the products, yes, there is some overlap, but there's a lot of dovetailing as well. There's a lot of products that we have that we're strong in, solutions that we're strong in that PowerFleet are weaker in and vice versa. And it's an amazing -- amazingly complementary basket of solutions that are putting -- that create an incredible opportunity when you put these 2 businesses together. The one eureka moment for me, which I wasn't expecting at that workshop and again, it's something we have interrogated extensively since then in the 6 months that have passed since then is the R&D acceleration opportunity. So the 2 organizations are currently spending about $25 million on research and development. And lo and behold, looking into it, we found that there's $7 million to $8 million that we're each spending on duplicate stuff, doing the same kind of stuff. And there's a real opportunity to take $7 million to $8 million and deploy it instead into duplication, into innovation, more innovation, more investment in accelerating the Unity platform, more upsell and ARPU enhancing opportunities for customers and enhanced ability to accelerate the future-proofing of the business. So that's an incredibly exciting element. And ultimately, again, from our long-suffering MiX shareholders, we've had some structural issues that thought of any transformative deal that we would do, we would need to fix those structural issues. Our current primary listing is in Johannesburg. It's a very conservative exchange. I just explained about this audit requirement. We have a secondary listing in New York through an ADR program, which has a kind of a limited audience. So we don't appear to get full access to -- let's call it the full investment community in the United States. And in an investor outreach we did about a year ago, the #1 requirement from our investors, they said, if you can fix the structural issue, it would be a big step in the right direction towards unlocking valuation enhancement and unlocking liquidity in the organization. And this deal does that. So as a shareholder, it's really excited to be converting my current MiX shareholdings into stock in a NASDAQ-listed Delaware-owned U.S. company, which dramatically simplifies our structure. Sorry, I need to go back. I guess I got slightly ahead of myself. Here we go. We're fighting each other. Apologies. There we go. Thank you. So just digging a little bit deeper into the themes I've already addressed, complementary product ranges. So there's a lot of stuff that the PowerFleet are good at, leaving the Unity platform aside, that our customers would found pretty exciting, their warehouse capability, forklifts, for example. On the MiX side, another example would be our AI video solution is stronger than PowerFleet's. And so there's a big opportunity over there. We are very strong at the MiX side in in-cab solutions. There's an amazing amount of upsell and cross-sell opportunities. I'll give you an example in South Africa. The top 5 retailers in South Africa are all MiX customers, several thousand vehicles under management with us. They all have massive warehouses all over the country. We don't have a ready solution as MiX stand-alone to provide that or fill that missing link in terms of managing the flow of goods not only from the door of the warehouse to the door of the delivery but, in fact, through the warehouse into the vehicle and through to the warehouse on the other side. So we've already started conversations with some of our customers. We're seeing a great deal of interest from them. Another example, a recent bus fleet that we've tendered on in Europe had 3 buckets of requirements. MiX on a stand-alone that we were pitching on this deal could fill kind of 1.5 to 2 of those buckets. There was one particularly around their electrification strategy that we don't have huge competency in. PowerFleet are way advanced through their Israeli operation in terms of the electrification technology. And we decided to go into this pitch together. And we've announced the deal already. So the customer was excited to hear our joint proposal, and I think it's put us in position A. So it's extremely complementary. And I'm going to put myself out a little bit on a limb here, but I believe that there's enough gas in the tank in the cross-sell, upsell opportunity to grow at double digits for the foreseeable future with our existing customer base without adding any new customers. Not to say we're not going to add new customers. Of course, we're going to be focusing on it. But there's enough gas in the tank to grow at double digits just by selling these additional solutions to our existing respective customer bases, and that's unbelievably exciting from our perspective. So to recap, this is creating a company of scale, the ability to take a top seat at the table. And there's some debate whether it's #5 or #6 in the world. But the most important thing is that it's providing an acquisition platform and to take further steps once the team has done a bit, I guess, year 1 or year 2 objectives and the timing, that will be up to Steve and his team. We've got a very clearly differentiated go-to-market strategy. We've got skills in the prospective businesses that together make us, in my view, invincible. We've got a global reach that none of our competitors are currently in a position to replicate. And I fully believe that this is a transformative deal for my investment as a shareholder and for my many partners that have been on this journey with me. And Steve, I think you're -- it was a hard decision for me to get to, but I think you're the right guy to take this business to the next level. Thank you.

So Joss didn't quite finish the story of how we went from it's going to be a short conversation to the fact we're standing on the stage today. And ultimately, Joss is not someone you want to let down. He's also someone whose personal wealth is going to be a key part from a shareholding perspective moving forward. So a good thing from an investor's perspective is, you're going to have this guy who's going to ensure that we deliver and execute as we move forward. And his words to me when we finally agreed and he graciously accepted me to take the business forward was -- his words were, "Don't screw it up." So I was able to look him in the eye. My background has been in 3 private equity-backed companies. And as many of you all know, to survive and thrive in 3 different private equity-backed companies, you have to be able to execute. As part of the strategy that I had within PowerFleet was to bring in a team of people who ultimately have the experience and capability to drive significant EBITDA expansion. So you're going to hear now quite a lot of detail, and you'll say to yourself, well, that's a lot of detail in a very short space of time. What we've done is put the teams together with this team who, ultimately, this is their day job, all day, every day, a Navy SEAL set of operators who support, in inverted commas, the leadership team to make sure that we're successful. That's run by a lady called Melissa Ingram, and Melissa has worked with me in a couple of previous organizations and also has a track record in private equity of delivering similar savings in similar amounts of time. So ultimately, Melissa isn't with us today, but she's recorded a video to take you through actually in a great lot of detail why we feel confident, then for Joss that we're not going to screw this up.

Hi, everyone. I'm Melissa Ingram, Chief Corporate Development Officer for PowerFleet, overseeing M&A, our Corporate Development, all of our corporate functions outside of finance as well as our business transformation activities. Today, I'll share our strategy for integrating PowerFleet and MiX. Our goal here is to drive shareholder value in the region of $25 million to $30 million of EBITDA expansion in the combined company over the next 2 years. In the last few months, as we plan this combination, value creation has been at the very forefront of our minds. We recognized early that there's a significant and readily accessible opportunity to rapidly grow our EBITDA, and we've created a plan that we're confident of delivering within that 24-month period of time. Our vision for this integration is clear. We'll build a strong organization that not only manages our growing customer base but quickly transforms to prioritize efficiency and customer experience at the core of our strategy. As we grow, we'll be poised for strategic acquisitions alongside organic growth in our core regions. Our leadership team has a depth and a breadth of experience, and we've executed very similar plays in high-growth global software businesses before. This team doesn't just talk. We've been there, we've seen it, and we've done it. And we're ready to do it again in this combination between PowerFleet and MiX. Our aim for the next 2 years is to more than double our adjusted EBITDA and move us towards being a Rule of 40 company in 2 years. Today, I'll talk you through the 4 pillars of that integration plan that we believe will drive us closer to this goal. So this slide summarizes those 4 pillars, which are duplicative costs, ways of working, economies of scale and portfolio and experience evolution. Our focus here is all about driving efficiency through our combination. And we've identified a series of initiatives that the teams are already working on to bring this plan to life. This isn't just a plan. It's a blueprint for our transformation into a stronger, more agile, more cost-effective and, ultimately, a more impactful company. I'll now spend a little bit of time talking you through these pillars in a bit more detail. So we'll start with duplicative costs. Our first area of focus here was to look at our combined company costs, our insurance structures, our audit and compliance expenses and other costs that we both incur as public companies. By combining our cost bases in this area, we'll not only achieve a significant OpEx reduction but will lay those foundations for a unified and a streamlined operating structure. Secondly, we'll consolidate our market presence costs. So these will include areas such as brand, marketing, trade shows, events, subscriptions and our comms costs. Our aim here is to be transparent and consistent as we channel our efforts to market while rationalizing those underlying expenses in these areas. Now turning to organization. We've decided to bring both businesses together under one leadership team. The MiX and the PowerFleet teams will merge into a single structure, focusing on central functions with local execution in each region where we operate. This setup makes our organization flexible and cost-effective with a mix of global strategy and local action to drive our results. We're expecting a $3 million reduction in public company costs and a 20% reduction in our marketing presence costs, along with some other strategic moves we're projecting in the range of $8 million to $9 million of savings on this pillar. Turning now to ways of working. This is focused on optimizing our way of working at one combined company. This will start with implementing a shared set of scalable software platforms worldwide, all anchored by that common ERP platform spanning the whole business. This move towards ways of working and commonality in our approach extends beyond just our technology. We're committed to driving consistency in our operational methods, refining our processes and acting as one team across the combined organization. Following that strategy of thinking globally and acting locally, our biggest -- bigger presence in certain locations gives us the opportunity to streamline our operations in some of our affordable geographies, creating efficient centers of excellence at the very heart of our business. We're also planning to consolidate subscale businesses in regions where both MiX and PowerFleet operate today. This will give our go-to-market teams focus and scale in our core markets as they drive our efforts to grow wallet share, to expand ARPU, to increase our profit contributions with our AI-led enterprise applications. While we're changing how we work, we'll also cut down on our unused office space and find a balanced approach that meets the needs of our staff and our customers in the places where we see our future growth. We're expecting in the region of $8 million to $10 million of savings from this pillar, but most importantly, we're setting ourselves up for success as we ready the company for its next phase of scale and of growth. Turning now to economies of scale. PowerFleet has already optimized our supply chain. We now work with a smaller number of strategic supply chain and manufacturing partners that help us leverage our scale and our purchasing power. These partners offer adaptable capacity globally, aligning with the needs of our customers and our markets. Our aim here is to apply our tried and tested method to the new combined company, and we're expecting to see a significant margin improvement by leveraging our scale for greater value. We will also be forensically focused on our services gross margin, and our goal here is to consolidate our vendor spending in this area, particularly in costs, such as communications, hosting and technology. We expect this pillar to deliver between $4 million and $5 million of EBITDA creation. Moving now to the final pillar, which is portfolio and experience evolution. We've been very clear internally and externally that our approach to this combination is going to be built on a core principle. We'll take the best of the best and forget the rest. Both PowerFleet and MiX have strengths that we'll nurture, but we'll also take this opportunity to evolve what we do, such as streamlining our hardware to core skews, shuttering legacy solutions and platforms and transforming our customer experience. Looking first at hardware. Within PowerFleet, we're already reducing from 26 down to 8 hardware skews, and we expect this to deliver a cost savings of between 25% and 90% per unit, which we know will be a significant contributor to our future product gross margins. By applying these principles to the combined portfolio and maintaining a smaller number of devices, we expect to be able to give focus to our customer-facing teams, will streamline our supply chain and will improve our product costs, which ultimately will reduce our speed to market. As part of this pillar, we'll also retire some of our outdated and our legacy platforms that are longer in line with our vision. We'll streamline through those disciplines of product life cycle management to ensure that every solution offering is not just relevant for our markets but also contributes to that goal of our Unity-led AIoT strategy. The final focus in this pillar is to differentiate through exceptional customer experience. This is absolutely core to our strategy, and our goal here is to create a cost-efficient, streamlined SaaS-centric model, where automation and self-service play critical roles. We'll look to reduce those touch points in the customer's life cycle so that we can not only improve experience, but we'll also be driving efficiency in our cost to serve model. Our experts are already working on our plans in this area, and we expect to see a range of $5 million to $6 million of cost savings in this pillar. So that's it on the pillars. I'd like to take a moment now to summarize why I and the rest of the leadership team are very confident in our ability to execute on this plan. I often hear it said that many combinations fail because of the poor integration. I'll share with you now why this isn't going to be the case for PowerFleet and MiX and why we're set up for success. Firstly, from day 1, we've been guided by a shared vision, and that vision has been an unwavering commitment to EBITDA expansion while creating a better company to sustain our future growth. These principles weren't an afterthought. They were planned right from the start of our collaboration. As a leadership team, we're not newcomers to this area. We're repeating, and we're building on a proven model, and it's a model that we've executed multiple times in previous businesses, including within PowerFleet in the last 2 years. As a team, we're not afraid of complexity. In fact, we see it as an opportunity. We thrive on managing the intricacies of this integration, and we'll do so with absolute transparency. Every member of the leadership team you're meeting today is committed to this path and knows what they need to do to make it happen. We make the swift tough decisions quickly, and we embrace the ethos to take the best of the best and forget the rest. We're actively building our plans now, and we already know what decisions we need to take within that first 100 days post close. Internally in the business, we over-index on our communications. The top-level organization chart has already been announced, and a dedicated integration team is in place to drive our plans. Our action plan revolves around enabling those steady-state business units to continue to operate in their territories while directing our focus and our attention to those growth areas. Tracking progress isn't just a formality for us. It's a core part of our strategy. We know how to measure success, and we have a tried and tested playbook that accounts for every dollar of savings and every dollar of EBITDA improvement. In essence, this is a team that delivers. This isn't just a promise. It's a reality. We have committed to excellence and to value creation in this combination, and the next 2 years are going to prove our results. Thank you.

That was part one, which is what we're going to do. And a little bit of the how. What we want to do is actually now take you on a journey from the market. We're going to talk through Unity, its data highway, its data ecosystem in more detail. And then we're going to hear from the regional leaders from the go-to-market approach. What's happening in their regions and also why this combination is going to give them the ability to accelerate their growth aspirations. So I think Andrea is going to come back and join us to give a broader perspective around AIoT. Andrea? Thank you.

Hello again, everyone. So as a reminder, my name is Andrea Hayton, and I am the Chief Marketing Officer at PowerFleet. So I'm going to spend a few minutes with you talking about the market view. We're going to talk about how PowerFleet is positioning ourselves to capitalize on that market opportunity and what's going to come next. So let's start with the market opportunity. We have a significant TAM. The likes of the TAM looks like 236 million commercial vehicles. In addition to that, $100 billion of connected vehicles annual TAM. Wow. Not only that, but there are market drivers happening today that positions PowerFleet to take advantage of this opportunity, and I'm going to talk about three main ones here. First and foremost, there are soaring governmental mandates, including in the U.S., mandating companies to advance their green practices. Secondly, both in the warehouse as well as over the road, there are increasing accidents, incidents and fatalities. That's a whole lot of cost and that is brand reputation. And that is making companies prioritize their safety culture. And thirdly, there is too much disconnected data, so much data and the market can't make sense of it. Customers want to be able to harness the data from their IoT devices and sensors with the addition of AI to then help them make informed decisions to improve the business operations and operational efficiency. So let's talk about how PowerFleet is going to help with that. All of that perfectly positions PowerFleet and our device agnostic platform Unity to capitalize that and become a best-of-breed organization within the AIoT SaaS space. We're going to take a proven approach that companies like Salesforce, like Datadog, like ServiceNow, amongst others, have leveraged and used to become best-of-breed in their own spaces. Now there's a shared and winning DNA, and that's categorized into a few main things. So first and foremost, it's having the most advanced AI and data integration capabilities. It's having the capability to modularize your offerings. It's not only about data, but having advanced AI insights to then help customers really achieve their strategic objectives. And all of this, all of this leads to increased customer wallet share and customer stickiness. So PowerFleet is going to take this proven approach. We're going to apply it ourselves. And we are going to become the best-of-breed organization in the AIoT SaaS space. So let's talk a little bit more about that. And it's really underpinned by what you've heard today in PowerFleet Unity. But the path to AIoT has really been an evolution. If we start all the way back at the beginning, this was really categorized by simplified kind of siloed device, right, very simple tracking and data. We then layered on SaaS applications that look like maintenance, like safety, for additional intelligence. And then a good chunk of competitors moved into more of the IoT SaaS marketplace. There was more offerings, right? There was added value with OEM and telematics data. That's where many of them sit today, but that's not good enough. There has not been a leader that has taken full advantage and really harness the power of a unified AIoT until now. The market is yearning for a mission-critical provider to be able to take on and ingest all of the disconnected data, to harmonize that data, to transform that data with advanced AI capabilities, to then help them improve their business and operations. And that is the brilliance of our device-agnostic Unity platform. And in just a few moments, you are going to get a deep dive into how that works but it's been built. PowerFleet is already on its way to do this. So I'm going to end with this, welcome to PowerFleet AIoT and our Unity platform. What you're going to hear about through the rest of the day is going to enable us to capitalize on that market opportunity that we talked about before, that TAM. Those market drivers. It's also going to enable us to become best-of-breed in the AIoT space. We have the winning DNA. We've already gotten started. And finally, it's going to help enhance value to our customers as well as our shareholders. So I'm going to pass it on to our Chief Product Officer, Jonathan Bates, to bring this to life.

Thanks, Andrea. And I -- just to introduce myself, my name is Jonathan Bates. I'm currently an executive of MiX Telematics but at the close of this transaction, Chief Product Officer of our new combined company. And I'm very excited to share today how our unified solutions are actually leading us towards new growth opportunities that will deliver increased customer and shareholder value. And as Steve set out before, this industry now is moving towards AI-led software -- SaaS solutions and monetization of data insights. And in that rapidly changing landscape, our Unity strategy perfectly positions us to take advantage and capitalize on that opportunity. So the busy slide, I'm just going to walk us through it. We are leveraging our leading-edge AIoT Unity platform to deliver advanced data capabilities to our customers. This is going to open up a whole host of new opportunities in cross-sell, which I'll come on to in a moment. But really, what we're doing is providing mission-critical data across a whole breadth of different asset types, all the way from in-warehouse to trailer and to vehicle. And in the process of doing that, what we're doing is actually consolidating our customers' disparate suppliers we're providing and their ability then to gain end-to-end visibility, the movement of all of those assets in a single pane of glass, and we're doing that for all mobile asset types. And that -- actually nobody else is doing that unique combination of those four things together. As Steve also said, in that process, we're also speaking with a whole bunch of different stakeholders within our customer bases that a lot of our competitors aren't doing. So we're talking to CIOs and CTOs as well. Through that, when we win in those differentiated assets, obviously, what we can then do is go and conquest the remainder of those bases, take over those assets over time as well. So that's a key part of our strategy. With our Unity AIoT platform and those different datasets, we're creating ever more innovation within our customer base, and Jim will talk to us afterwards about how we're enhancing that Unity platform all the time to provide even more value propositions to our customers that add more value. So what I'd like to do now is just touch on some of those cross-sell opportunities that are there from day 1 of our combination. So firstly, I'm really excited about all five of these opportunities. This is not an exhaustive list. This is just a sample of some of these cross-sell opportunities. First, taking Unity into our existing large mix of customer base is an absolute game changer for increasing customer wallet share. We have the capability within that MiX customer base. At the moment, they're not able to access a lot of these different differentiated solutions. So by providing this modular and scalable approach, we're able to tackle more of those key market trends, we're going to be able to increase our ARPUs, increase our stickiness and ultimately contribute even more towards that best-in-class net dollar retention rate that David spoke about earlier. Also, MiX are demand experts in the provision of AI video services and associated enterprise applications. We have that within our DNA. And we are able now to take that into the PowerFleet customer base and expand ARPUs there even further. One of the great things about this is that some of the key market drivers for AI video are in really high-value geographies like North America and Europe. ARPUs for these AI video solutions in our existing customers typically reach anything in the $30s, $40s and even $50 for some of the most comprehensive AI video solutions. So that really gives a fantastic opportunity within the PowerFleet customer base to expand video solutions there. Thirdly, we all know that EV solutions and electric vehicle transition is a key market trend. And another great piece of news with that is that Europe is really leading the way in the need for that transition. We're some of the way there within our MiX existing customer base. But as Joss gave the example of our large bus customer in the U.K., we need more in the EV transition capability that PowerFleet have already built out and also within the operational management of those electric vehicles and MiX fleets with other powertrains. Again, PowerFleet has got that capability and then we're able to leverage that into a new revenue stream within the MiX customer base. Joss, who's our General Manager in North America will speak more about some of our North American needs, but this is an example here with In-cab real-time logistics solutions that MiX have built out over the years, we're now able to take that into the PowerFleet customer base and enhance the provision of that opportunity within that base. And last, but by no means least, there's a really great untapped global customer base for warehouse solutions within the MiX portfolio. Those warehouse solutions are great, not just for our direct customers, but as was mentioned earlier, we have a 135-plus network of channel partners around the world who are always hungry to get their teeth into brand-new solutions, and that will give them the capillarity to go out into their customer base and sell those warehouse solutions and add those assets into our subscriber base. So if we just take a step back for one moment, what we've really been able to do with this unique business combination is augment two powerful sets of solutions together that allow us now to solve for a whole broadened range of customer problems that we've not been able to do as individual businesses before. In combining those complementary services through modular SaaS solutions, enterprise solutions, we're now attacking those key market drivers more comprehensively than we've ever been able to do before. And we're not going to stop on this journey. We're going to keep going, keep driving that. As Steve said, we are 2 years ahead of this. If someone else wants to come in now and do that, we're 2 years ahead of this. We are at great capability there. As we add that new value to our combined base, what we're then doing is increasing stickiness within our customers, and then we're delivering new revenue streams, maximize ARPUs and more net dollar retention and EBITDA expansion. And I have to agree with Joss, I think there's a lot of new business opportunity here, but those are five key examples straight away, straight out of the gate, of great cross-sell opportunities that can add a heck of a lot of value for our customers. Thank you very much. I'd like to hand over to Jim, who I believe has done a video for us to talk us more through the secret sauce of our Unity strategy. Thank you.

Hi all. My name is Jim Zeitunian, and I am the CTO of PowerFleet. There are 3 main aspects of the Unity platform: the agnostic data ingestion, data transformation and business insights. I'm going to go through each of these areas in a little bit more detail. Device-agnostic data ingestion. There's 4 broad categories of data flowing into Unity. Of course, there's MiX and PowerFleet device sensor data. There's third-party devices. There's OEM data, and there's integration data sources. PowerFleet and MiX devices and sensors form the backbone of our data strategy. These devices and scenarios flow seamlessly [ to ] platform, bringing both a highly granular and consistent flow of data into the Unity platform. However, we know that most fleets have a host of different devices and platforms that they're managing today. We provide an alternative whereby we offer opportunity to bring those data sets into Unity as well. We have access to over 130 manufacturers, 550 telematics and IoT devices across over 350 different protocols. This broad scope enables us to bring a fleet under one roof. A one-stop shop, if you will. In addition to third-party devices, we're also working across the OEM spectrum. We're working with companies like Volvo, Daimler North America, Mercedes, to name a few. We have a growing list of OEM providers that we're working with across all classes of vehicles. These are supported either through the standard Unity API infrastructure or supported directly through various cloud-to-cloud integrations. These three input lanes are highly scalable, supporting both transactional and API based work streams. Lastly, we understand the need to acquire and curate data from various external sources to augment and enrich existing datasets. Some of these datasets include traffic, map, weather data. And we're continually growing these datasets to include the likes of industry data, regulatory and compliance data as well and others in the future. This integration data fills the needs of our customers by offering details not readily available by other vendors. For example, we can leverage historical weather patterns over dangerous highways to form predictions about potential delivery delays, accidents or other safety concerns. Data transformation is where we apply our algorithms and generate events to be distributed into Unity. The investment into AI is at an all-time high. There's numerous open source tools available enabling companies like us to leverage this work and accelerate our speed to market. I'll break AI down into four broad categories. The data science is the deriving of deep insights and analytics through the analysis of large and extremely large datasets; computer vision is the identification and analysis of data observed within images; machine learning, the use of historical data to determine future results; and generative AI, the use of large language models to create real-time augmented generative responses. Tools like ChatGPT, for example, are in this category. Across these four areas, we are bringing value to our customers and increasing wallet share by offering solutions that are outside of the standard telematics offerings. So let's look at a couple of these. In the field of computer vision, we're using AI to create a safety system for our in-warehouse products. This is the pedestrian proximity detection system. This system uses real-time calculations to determine if a pedestrian is within the danger zones of our instrumented moving equipment. The detection of warnings and alerts interact with the operator and the equipment by doing things such as slowing down on the machine and presenting visual cues to the operator. Another area where we have made progress is in that of facial recognition. Facial recognition solutions can assist the fleet manager by alerting them when a face doesn't match an operator, doesn't match an operator able to operate the type of equipment that they're trying to operate or who is using a piece of equipment in an unsafe manner or at a nonstandard time. Of all the areas of AI investment, machine learning is receiving somewhere around 40% of the investment. Companies like Meta, Google and Amazon are all contributing substantial resources into this area. One example of this is the Time Series' forecasting engine called Prophet, created by Meta. This engine consumes the simplest of models, two columns of data in a time series and value to be predicted format. Leveraging this engine, we've built a means of consuming input data across the telematics space to forecast things such as energy cost, maintenance cost, risk and compliance costs in a granular and seasonality-based manner. Multi-variant models enable customers to run scenarios across multiple dimensions in a manner where they can treat the external datasets to hone in on specific scenarios that impact their business. For example, a customer may have the need to identify why their on-time delivery numbers are progressively getting worse. Using the historical on-time delivery data, coupled with external datasets such as weather, traffic conditions or accidents, their driving lanes across different slices of time, they may find that their scheduling is incorrect and alternative plans can be made based on the predictions of the model. This brings us to the third aspect of the Unity platform, that of business insights. Business insights consists of two components, data-powered applications and unified operations and services. Data-powered applications are the modules that are being added on to the platform in which we extend capabilities outside of the standard fleet management stories. We released two of these modules into the market to date, that of safety and security and sustainability. We have plans of releasing many more, not limited to what you see here on the screen; modules such as advanced fuel management, performance and regulatory management, compliance to name a few. Let's talk about safety and some of the drivers that we're solving for across the in-warehouse and over the road space. Safety compliance, coaching initiatives, minimizing unsafe environment, capturing of incidents, optimizing maintenance and rightsizing equipment and staff for shift management are key drivers of our customers' needs. Our response to that is providing checklists, management tools to enable this -- providing checklists, management tools for managing certifications, keeping the right staff and the right equipment, recommending and providing tracking for the maintenance of the equipment, ensuring that safe equipment is at use within the warehouse are some of the ways we work directly with our customers on the safety side. In the over-the-road space, driver visibility, incident management, risk and compliance, driver retention and maintenance are some of the key drivers of our customers' needs. Driver visibility from a simple track and trace to the in-cab dashcams are some of the ways we provide assistance in that. Managing incidents, creating automated claims processes and being able to detect the state of the accident is another key area that we provide help. Risk and compliance by managing licensing and certifications and maintenance recommendations are other ways that we keep the safest drivers on the road, on the safest equipment. I talked already about our pedestrian proximity detection system, but let's touch base on it again. Pedestrian proximity detection provides a neural network for object identification. This is constantly being updated and trained based on the real-time data that is being received. We can provide remote capture and analysis of near miss incidents, providing visibility to the fleet managers, which enables further work, i.e., coaching, training to create a safer environment. And lastly, it's a global effort to reduce the risk of collisions and injuries within the warehouse. This product is a very high-demand product right now and is a market leader. Sustainability is an area of focus for us as well. Here, we look to work with our customers and partners to provide the most holistic views into the EV equipment and reporting. By having a large library of EV vehicles that we support, including major bus manufacturers, we provide deep and detailed data. Our diagnostic capabilities provide far more data than the OEMs provide. And using that data, we can illustrate efficiencies or deficiencies across items such as charge, battery problems, overheating while providing a full suite of standard telematics insights. All of this data is captured and can be integrated into our customers' ESG reporting, providing the necessary data to support all of the government requirements. Additionally, we offer fleet electrification planning. Fleet electrification planning works with our customers and leverages partners where we provide a plan to measure performance and implement our electrification plan tailored for their specific needs. We make model recommendations. We discuss and intake data to properly describe total cost of ownership. We provide emissions, fuel consumption information and we create the infrastructure plan needed to adopt an electrical stance. This is all presented back to the customer in an intuitive, easy-to-use interfaces and dashboards. Last, but certainly not least, we have the vast ecosystem of integrations. It's here where we can create added value to our customers by bringing data that augments and enriches existing business processes. Examples abound such as payroll systems, HR systems, supply chain systems where we provide real-time actuals into these systems and integrate directly with their existing business processes. Additionally, we love to ask for data in return, data where we can analyze and optimize other aspects of their fleet. For example, by understanding the recommended route from the TMS, we can examine the route actually taken and provide insights back to the business. This can be leveraged by the TMS for further analysis within that tool and perhaps provide more accurate routes, those that the drivers are actually following. I can stand up here for a long time and continue the discussion, but let me wrap up by saying that we have the team, the vision and the desire to create the people-powered IoT system of the future. Thank you.

Okay. So we've heard a lot about our device agnostic Unity platform. But that's not the only place that we differentiate. It's also on the customer experience. So I'm very excited to introduce Catherine Lewis, who is our Chief Customer Officer.

Thank you, Andrea. I'm actually currently part of the MiX' leadership team. But as Andrea said, in a few months' time, I'm proud to say, I will be the Chief Customer Officer of PowerFleet. Today, at both MiX and PowerFleet, we pride ourselves in the service we deliver our customers. If you speak to our customers, they will testify to the fact that how we serve our customers is actually an advantage over our competitors. But we believe strongly that there is an opportunity to deliver a differentiated customer experience that will become an even greater competitive advantage. This will drive new customer acquisition, it will improve the stickiness of our existing customers and it will increase net dollar retention. And this is why we are investing in a dedicated customer experience function. It will span the entire customer journey from sales to renewal and as Melissa said, we'll invest in technology to do it more efficiently, more effectively, we'll drive automation, standardization and self-service wherever possible. But most importantly, we will have customers at front and center of our organization. We currently have -- the combined businesses have an enviable customer list of over 7,500 enterprise customers. There are lots of different takeaways you can get from this slide. As David said, we have customers in over 120 countries worldwide and across multiple geographies and multiple verticals: Mining, construction, engineering, agriculture, FMCG, retail, transportation, bus and coach. You can see all the logos there. We have strong global key accounts, which Charles will talk about more soon after me. But we also have strong regional customers like Walmart, Nestle, Coca-Cola that can become large global key accounts and he'll talk through our strategy for doing that. We deliver enormous value to our customers. At any time of the day, someone, somewhere is depending on the information we deliver to drive their business operations. I'm now going to play some customer videos for you. Now these are not Hollywood blockbusters. They are videos that our customers in Europe and North America have submitted to us. So they're regular users of our software, and they're going to tell you more about the benefits they get from our solutions. We're going to start off with Nestle, U.S. customer with 1,800 assets that has been a customer for the last 5 years. [Presentation]

The next customer is AXA. Now AXA, you all know, is a huge insurance company, one of the top 3 insurance companies in Mexico. And I think Eduardo might speak about this later. Now AXA, we have helped reduce their risk, manage their risk, and we have helped them manage over 5,000 assets in Mexico. [Presentation]

Nippon Gases has been a MiX' customer for the last 12 or 13 years, in 12 countries across Europe, where safety is their key driver. [Presentation]

Coca-Cola FEMSA is another very big customer of ours in Mexico, which Eduardo will speak about as well. They have been a customer for many years and have achieved very many benefits from an efficiency perspective. [Presentation]

The next video will test your ability to understand Irish. This is a customer called Bus Éireann based out of Ireland. They have 850 assets with us. And they are busy adding our video solution to their fleet as well. [Presentation]

The next accent will be a little bit more familiar, Reliable Carriers is a U.S. customer and we've helped them meet their compliance requirements. [Presentation]

I think what's great about these videos is that, obviously, they're unprompted and pretty raw and authentic as you can see. But they do echo everything that you've already heard, different people say this morning about the Unity platform and about our differentiators. So with that, I'd like to hand over to Charles Tasker.

Great. Thank you very much, Cath. Yes, I'm Charles Tasker. Hi, I am currently the Chief Operating Officer at MiX Telematics, also a longtime shareholder, and I'm very excited about the opportunity that PowerFleet presents and I'm very excited and proud to be taking on the role as Chief Revenue Officer. I'm going to start off and talk to you a little bit about one of MiX' core strengths, which is our global network and our ability to be able to attract and retain large global multinational customers and then I'll lead into how we're going to take that into the PowerFleet business as we put these businesses together. So we have a proven track record with retaining -- well, attracting and retaining these global customers, multinational customers, and it's really centered on the fact that we've got this pretty unique global reach. As David mentioned earlier, we've got about 135 distributors spread across the globe, more than 120 countries. And this gives us a very powerful way in which we can service customers and become their partner of choice. If you are in these large global multinationals, it's a challenge in dealing with the local requirements, which is sometimes diverse and specific to whatever might be happening in the local region, but at the same time, being able to bring together all this information to meet the requirements that are put on the large corporate organization, things like ESG, for example, which are not going to necessarily be just regional, but need to be reported globally. And so looking for a vendor who can bring this information together and standardize the information and deliver it is absolutely key critical. And we've demonstrated the ability to be able to do this. Essentially, we adopt a land-and-expand strategy. We either get these customers locally or regionally and then look into them and expand them into their multinational organizations and/or we might be invited and probably will be because we're one of the very few telematics companies that has the ability to be able to service customers across the globe. So if customers start out looking for that, we'll often be invited to bid on those and then secure those bids and then work our way through all the regions and the location. One of the customers, many on the left-hand side -- on the right-hand side of the slide here, but one of them that I'd like to call out is Iberdrola. This is a large power utility. They started with us in Spain, and we've expanded that to ScottishPower, they own ScottishPower in the U.K. They acquired Avangrid, which is a large utility company in the United States, and they are very acquisitive and expanding across the globe. So as we look at this global opportunity and what we're going to do and how we're going to use this to our advantage with the PowerFleet opportunity is to take this proven methodology and to be able to then look through this really solid list of enterprise customers that we share, bringing these enterprise customers that PowerFleet has and look to see where we can expand regionally and nationally and globally as well as being able to go into our existing customers, our existing multinationals in cross-sell and upsell. And again, I'll just come to the exciting opportunity of Iberdrola. They had asked us to bid on their fleet in Sao Paulo in Brazil. They love the idea of us being able to bring all this information together for them, but the practicality of equipping or reequipping their fleet, which already has 6,000 -- they've got a fleet of 6,000 already equipped with various telematics devices just became a little too daunting. When we announced the merger with PowerFleet, they were very excited and we spoke to them again to be able to bring them on to the Unity platform and leverage the device-agnostic platform, so be able to bring that fleet on without having to go and rip and replace all the equipment immediately. That's just one example of the cross-sells and upsells. There are many more that have been pointed to as we've discussed, the ability that MiX has with the on-road solutions and the ability that PowerFleet brings with the in-warehouse being able to bring those 2 worlds together to be able to present a far more unified view of the customers' information is certainly very exciting, and this is going to lead to ARPU uplift and certainly, a lot more stickiness as we become more integrated into these large multinationals. There's also a trend about centralizing the decision-making, as I've pointed to. And a lot of these customers are looking for a partner that can deliver this mission-critical information. And that's certainly what we've been able to do and we'll leverage that with -- throughout the PowerFleet customers as well. Something that is also a little different about MiX and the way we've operated is that we've often -- our customers, these large multinationals, the ability to be able to contract with us, as in contrast to some of our competitors who may have distribution network, but their methodology is typically to allow customers to deal directly with the regions and with their partners and then deal with all those complexity. In contrast to that, MiX takes that responsibility. We'll contract centrally, he has frame contracts, we'll manage these partners and be accountable for the delivery throughout these large organizations. And so that's something we're going to leverage further. We've spoken about the transformative scale, the ability combining our 2 sales organizations together. I think that's certainly really exciting. It's going to give us the ability to capitalize and get further larger share of wallet within a lot of these customers. And then last but not least, coming back to those 135 partners around the world, these guys are hungry for more products and services. And by putting together the PowerFleet offering, we're now going to be able to bring them the ability not only to do on-road that they're doing now, but in warehouse, connected car, the ability to be able to bring Unity and the device-agnostic services in a modular fashion. I think this is going to be really exciting, and this is going to be an accelerator with our growth, certainly drive our ARPUs and get far bigger share of wallet, which I think will be really exciting for these resellers around the world. And so some -- those are some of the global opportunities we see. And with that, I'm going to hand over to Ilan, who is joining us by video, in fact from Israel.

Hi, everybody. My name is Ilan, and I am the CEO of Pointer Israel. How we succeeded in the local market in Israel? First, we like what we are doing. We like our customers. They are my friends. We like our employee. We have a very strong teams in operation, in sales, in engineering. We try to look ahead for the future and to see what the market need in the future and we try to develop it today. We are very reliable persons. We are leading in technology. We're a very efficiency company. One employee for 1,000 subscribers. The innovation is in our DNA. And by the strong engineering, we can develop flexibility, tailor-made solution in a very short time to market. We operate in 3 different markets. The automotive, we supply them tracking, stolen vehicle recovery, fleet management, electric vehicle, very strong solution in diagnostic and in the near future, cyber. The insurance company is our regulation for the SVR. We supply them also driver behavior. And very like our unique solution against jamming, anti-jamming, 80% -- more than 80% of the event of car thefts in Israel, [indiscernible] jamming. We can prevent these thieves by unique solution by combining to technology and the insurance company like it very much because we save them a lot of money. And in the IoT solution, after 5 years, we are in the first place, the first company in this market. We're valid by the Ministry Affairs. We supply a solution between minus 80 to close 500. We work with the leader manufacturer in the pharmaceutical and in the food industry. We work with all insurance company with all carrying Pointer, we are going to be 40% market share in the installation. We work with a rental car company, electric vehicle with application, public transportation is focused on electric buses, MDA with 2,000 ambulances, a logistic company and logistics center, transportation company, pharmaceutical company and the leader in the food industry. The first use case is again -- again is the leader in public transportation in Israel, 5,000 buses and we also operate in Poland and Netherlands. They met POC, check few electric buses, a few manufacturers like BYD, Golden Dragon, Higer, Isuzu and the others and all other competitors. After one year, the CTO, Jim Zeitunian called me and said, we check you one year, you're much, much better than all the others, and we chose your solution for our electric buses. We make few hundred installation in the electric buses. And I can tell you, we save money. We control the charging of the battery. We shorter the time that the bus spend in the call center. We send them alert of the technical problem direct to the back office. And we also give them a lot of information that they can compare all the models and they can see who is the best model for their fleet. We are going to take this solution abroad to other fleet owners that use these electric buses. For MDA, above the 2,000 ambulances, we developed them a unique solution for defibrillator. This case solved 3 big problems: the vandalism. There is a 1 million of defibrillator, the battery is empty, and nobody knows about it and tough humidity, hot temperature, cold temperature, high humidity and et cetera. The telematics unit is inside. We developed a unique sensor to check the capacity of the battery. Electric lock that they can open the box, remote control and every week, we save lives. They have 1,500 all over the country and satisfies very much. This case under the international standard, we plan to sell also abroad. Israeli Police 10,000 vehicles, much more policemen ID. They look for confidentially solution, separate server to control their lead and policemen by themselves. We give them all the needs and are very satisfied. And S.L.A., the logistic company of Teva, they check our solution for the freezing rate of minus 80 degrees for the vaccine. We improved solution. They like it, build application, they installed in all their refrigerators in Israel, and they are going to take this solution for all other logistic centers abroad. We look for other companies, pharmaceutical producer to sell them the same solution. Thank you.

Great stuff. Thanks, Ilan. And now I'm going to hand over to Gert, who is also joining us from South Africa. I don't know if any of you could say that [Foreign Language] but you can't get that. We're going to hand over to Gert Pretorius.

Good day, ladies and gentlemen. My name is Gert Pretorius. I'm responsible for the Africa operations of MiX Telematics. Today, I would like to discuss 5 topics with you. Firstly, our African market, then our go-to-market solutions, growth strategy, having a look at some of our key customers, and lastly, why do we believe we are successful in this market space. Starting off with the African market, we are responsible for the continent of Africa. We operate in 30 countries, with 35 fleet distribution partners, also responsible for 147 consumer treatment centers in South Africa. We operate offices in Johannesburg, Cape Town, Durban as well as in Uganda. We deployed over 600 staff members in Africa. And lastly, we do have access to about 1.3 million new vehicles per annum. When we look at our go-to-market solutions, we are able to provide to our customers as well as potential customers a full end-to-end solution, including asset tracking, light fleet solutions, premium fleet solutions as well as our video telemetry solutions. By making use of 3 brands in Africa, namely MiX Telematics, PowerFleet distribution in Africa as well as in South Africa, our Matrix Vehicle Tracking for personal safety in South Africa and then lastly, [ our EV ] solution for asset tracking and safety and security services for consumers as well as fleet customers. Moving on to our growth strategy. We do have a very clear focus on providing solutions that are tangible as well as measurable from a return on investment perspective. With our 3 well-known and established brands, we are able to address all the market needs in Africa. We do follow a fairly flexible go-to-market strategy that will include own dedicated direct sales teams as well as indirect partners, dealers, insurance companies as well as car dealerships to address the market needs. Another very important aspect for us in our growth strategy is our digital marketing campaigns. And that's all underpinned by our own internal call centers and execution teams in order to ensure success. When we then look at our key customers, we're extremely proud to be the provider to the top 5 retailers in Africa, also responsible for the biggest container business in private hands, globally ensuring that container has been moved throughout Africa to the ports in South Africa in order to ship to the globe. We're also responsible for the biggest e-hailing business in Africa, ensuring the safety and security of the passengers making use of this service. And I do have many more market-leading businesses making use of the services of MiX Telematics. We're also extremely proud to be the [indiscernible] partner to the biggest medium-sized OEM in South Africa, using vehicles, not only for South Africa, but also for the export market into Africa. In our consumer space, we are the preferred supplier of asset tracking with several insurance companies and we've seen in excess of 300% growth over the last 12 months in this specific vertical. Then lastly, we're also extremely proud of being the provider of asset tracking services to 85% of cars in the car rental space in South Africa. While we believe we are successful in this region, the success is driven with the focus on our customers. We deliver exceptional customer service. We understand the needs of our customers. We do have a proven track record for years in Africa. And then lastly, the ability to provide a clear return on investment on all solutions we provide to customers. This is all underpinned on a solid product and service solution. And lastly, none of this would be possible without having great people delivering service to our customers. Thanks again for your time today. Enjoy the rest of your day. Thank you.

Excellent. I think it's exciting to see this world tour, those 2 very powerful businesses and a lot of synergies between the 2 of them, actually. As Joss said earlier, some of these on-road -- in-warehouse solutions are going to be very complementary to on-road solutions, if we are dominant in South Africa with. So moving on to emerging markets. Again, just going through our global reach. If we look at LatAm, Brazil, Australia, Middle East, if we look at the combined strength of those operations, we've got in the order of $50 million of revenues already there, 185,000 subscribers. So we're pretty well established in those markets. There is a significant TAM. If you look 40 million commercial vehicles across those markets. And what's really exciting about it is that it's more than 75% unpenetrated. This represents once again, a significant opportunity for growth and we are well represented, as I say, directly and indirectly through our partners. And once again, we're going to be able to move to upsell, expand our business, expand our ARPUs, introducing the Unity platform, in-warehouse solutions, which, as I've said, are largely untapped in these markets where MiX is present and has strong capabilities. And then the other way, we have very strong AI video capabilities, which we are getting a lot of uptake for. Jonathan pointed to the fact that those are good ARPU enhancing solutions all the way from $20, even up to sometimes towards $50 for those solutions and certainly in high demand. You saw earlier in the year, PowerFleet acquired Movingdots. As Steve said, this gives great ability from a point of view of data scientists, but also there's an insurance element to that business and we see an opportunity for us to be able to leverage that, particularly in some of these geographies where insurance risk are high on the agenda and there's scope for those and certainly, again, an untapped market, which I think we're going to be able to leverage. And so again, touching on the networks, we're going to be able to leverage this both directly and indirectly, which is going to give us a lot of scope for a bigger share of wallet and certainly to be able to expand our operations. Moving on then to Europe. And here, we see this as a key critical market for us. Here, we're going to be able to leverage our deep market knowledge and experience we're going to and as you well know, this is Steve's home territory. He's got enormous experience in this market. And I think it's going to be very valuable. In first order of business, he is going to be to look for a strong sales leader for that business, build out a strong sales engine, augment what we've already got. We're well established there. MiX -- and also the Movingdots acquisition gives us a presence in Germany and then combine that with our channel partners throughout Europe, I think this is going to give us a very good opportunity to be able to take many of these customers and expand them out in a multi-geography manner. If I look at some of the examples on the left of the slide here. We're well established in passenger transport. Well established in the energy sector. Well established in transport and logistics, particularly in the U.K. We see the opportunities to be able to expand that out T&L into the rest of Europe. The -- again, in-warehouse opportunity completely untapped our resellers right across Europe are hungry for these additional products to sell, great opportunity, great TAMs in these markets as well, $1 billion TAM just in-warehouse opportunity, not to mention the mobile resource and asset tracking markets. What's also important and what we're very strong in both companies are strong in is I think we all know Europe needs a lot of these legislated initiatives. If we look starting with hours of service, it all started in Europe with the digital tachograph or before the digital, there is the tachograph. So the safety element taking that into the working environment and then into the electrification, the whole ESG element. And I think both our businesses are very keenly positioned to be able to take advantage of those trends in these markets, which are really very focused on this and very open to legislating these sorts of initiatives. And with that, I'm going to hand over to my colleague, Eduardo to take you through Mexico. Thank you, Eduardo.

[Foreign Language] Hi, my name is Eduardo Chavez. I'm the General Manager for the PowerFleet operation in Mexico. And I will talk to you about our success in the recent years. Over the past year, we have been growing at an accelerated growth rate and we will continue to do so. We will be growing at a double digit for the next couple of years at least. And one of the reasons why we're doing this is because we have a very healthy mix of revenue across the different segments. We don't depend on a single one. Also nowadays, we have more than 70,000 units and it's growing every month basically. And we're focused also to grow our ARPU. In Mexico, what we're doing is, we are -- we have a strong focus on key account management. Most of our customers are enterprise customers. And also we have to use a consultancy mindset. Why? To become a mission-critical provider. And I will show you in some of the slides how we're doing that nowadays. Mexico, it's a big opportunity. Still, it's a big opportunity for PowerFleet. We're focusing in 4 segments. In those 4 segments, we are aligned it to win. If you look at logistics, it's a market where we're strong, where we have all the technological tools to succeed, but also we're adding some other value that are not related to technology. One example is our partnership with AXA. We are focused on prevention. We're using all their data. We're using our data and we're working with them, trying to build some prevention tools for their customers in order to reduce their risk and improve the profitability in both the customer, but also with AXA. If you look into the next one that is part of the over-the-road segment, last mile distribution, why we're splitting this because we have a very large market of last mile -- but last mile will continue to grow. This is delivering consumer goods. So as long as the country continues growing, the market -- our opportunity will continue to grow. And specifically, this segment, I believe, or I can say that this is the segment that uses our Unity software at the most extent. They are not using this software only for fleet management. They are using it for their whole operation. I will show you in the next slide how we're using it with FEMSA, both from my commercial side of you, not so technical, so I hope I can explain you how we add value. And also I have to say that besides FEMSA, we have some other customers in terms of -- in the segment of last mile delivery. In vehicles, this is a massive market. We are the preferred supplier for Kavak, a Mexican startup that recently reached the status of Unicorn. And on every month, we are adding subscribers. But we're not happy with that. We're also very successful with leasing companies, not only because we have a very good recovery rate. Also because we found a way to add value and we're helping them in their collection process through some push-in notifications via the vehicle. I mean if they have some delinquent owners of the vehicles, we can push some notifications in the vehicle through our telemetry services. And in-warehouse solutions, it's something that we started this year, actually a couple of months ago and we have surprisingly good results and I will talk in the next slides also. So this is what we're doing with FEMSA. You have seen this slide several times, but I will try to explain you in a commercial way. We get all the data from different sources, obviously, our devices, some other third-party devices. But also FEMSA or Coca-Cola FEMSA uses different software for route planning, for example, we have integrated SAP and some other software for tracking the delivery of the boxes and we have integrated all of those softwares and devices into our platform. So imagine millions of data every day getting into our Unity platform. And we have to digest it and transform it into actionable insights. And how we're doing that? I will describe you that some of the layers that we are delivering data for the different management layers. First one, every morning at 7:00 a.m., we have to deliver a report that is mix and match with the distribution route. And during the day, some specific hours of the day, we can monitor the advance of the distribution execution. So why? Because what is the name of their business? Distribution. So imagine, if at noon, they haven't reached even 20% of their total distribution -- number of boxes that they have to distribute for the day, they need to act. And we're providing that data on a daily basis. In the next layer, we evaluate safety and security. We get all that from the data power applications. And at the end of the month, we provide that data so they can use it in their payroll for their drivers. And finally, we submit a report every month for the executive level when they can track almost how much money they spend for each box of Coca-Cola that they have delivered. They can understand which route is the most profitable, and they can take actions to improve their business operation. Okay. Finally, I will...

Can you just talk about the ARPU...

Sorry. Yes. Is that worth it? Yes, it's very worth it. When we were competing against our competitors in the initial level of telemetry, we're having an ARPU of $17. Nowadays, after implementing everything, our ARPU is above $40. So it pays off. But also, I would say that for -- we are renewing the contract and it creates customer stickiness. No, I don't see them without our solution for the near future. We have replaced -- nowadays, we have 100% of the fleet. We started with half of it. But due to all of this execution we've done, we got the 100% and we will continue growing with some other ventures with them. Also, I will talk to you about some opportunities that we might have besides the ones that I already talked, but first, industrial or in in-warehouse solutions. Industrial is the second largest activity in the Mexico GDP. In the past, we haven't been focusing to cross-sell this opportunity. We started this -- the past quarter and we have significant results. We are replicating the U.S. business model that has been very successful. We have signed some agreements with some distributors or some channel partners. And also, we have some significant wins, especially in the automotive sector. For me, this is an opportunity that will boost our sales in the next couple of years. And we were -- at the beginning, we thought that our solution might not be suitable for Mexico. We have seen that it's the opposite. We know where to target, North American companies with global standards. And the opportunity to succeed here is very strong. And lastly, in the over-the-road segment, we have seen -- we have an opportunity to increase our ARPU by 40% approximately. We have seen that an increasing number of fleets that are crossing the border and delivering into the U.S. from Mexico. And this is increasing because of NAFTA and ensuring and all of this. And now they have to meet U.S. standards. So we have an opportunity to cross-sell all our solutions for risk and compliance to comply with the ELD mandate, and we can increase our ARPU at least 40%. Here, I mentioned we are strong. We have the relationships. We know the owners of the fleet. We know the -- most of the people that we -- that manage their fleets, and we will be very successful. In the past quarter, we have been able to implement some of the accounts and is working very well. That's it for me. I will pass over to Josh to talk to you about North America. Thank you.

Thank you, Eduardo. Thanks, everyone, for your time and attention. I know this has been a long day so far. So my name is Josh Betz. I am the GM of North America. And I am pleased to talk to you about the growth that we've had in North America, what we're projecting, what are some of the market drivers that are really leading to that growth. We're going to talk more about the -- you have heard enough about the Unity platform today. We'll talk more about the Unity platform and how that's driving incremental SaaS revenue, incremental ARPU with our customers and some of the momentum that we've had today. So from a growth perspective, we've grown 30% in subscribers over the last 4 years, which has led to 14% revenue growth over the last year, primarily that's been in the warehouse as well as over-the-road. We have high revenue, high-ARPU safety solutions, which you've heard about today. You've heard about in-cab video. You've heard about pedestrian proximity in the warehouse. These are great because these are all incremental to our core business that we have. These result in, as Jonathan said, north of $50 ARPU up to $150 ARPU in the warehouse, which is pretty significant. Obviously, I'm super excited about that. From a deal size perspective, you could have a single warehouse that looks north of $2 million or $3 million in TCV, which is pretty substantial. We've been able to grow pipeline. As Steve mentioned, we've had a new go-to-market team. We've been growing pipeline, particularly in those safety solutions as well as within Unity. And if we think about the projected subscriber growth, really, this is just the start in terms of where we're going to go. So what are some of those market drivers? So we've been talking a lot today about safety. Well, safety really comes from 2 perspectives. One is really government mandates. So you have both OSHA within the warehouse. You have the Department of Transportation over the road. They're driving a lot of regulation. They're driving a lot of programs to ensure that companies are improving their safety programs. And the reason that this is really paramount is that -- as you can see there, the number of people in the warehouse over the road, it's doubled over the last 10 years. And of course, with that, you're going to see an increase in the number of accidents just by nature. You're going to see the average cost of a workers' compensation injury is also quite substantial, which, of course, is going to lead to companies that want to implement safety programs. So really, from a company's perspective, they have both the government regulations. They want to make sure that they're improving their brand equity, their brand image. So safety programs are really important and ultimately that's driving a lot of growth within North America. From a sustainability perspective, it was said earlier that really Europe, of course, has really been leading the charge in terms of ESG, in terms of sustainability. We're a little bit more behind in North America, but what that means is that we really have a first-mover advantage. So a lot of companies are trying to figure out what are we going to do with this California mandate. We sat in front of customers and they have said, we don't know how we're going to do it. You're going to put 10,000 pounds of batteries on to a semi. I don't know how far it's going to go. I don't know what my mix of vehicles are going to look like between EV, between hydrogen, et cetera. So some of the things that Jim talked about earlier that the team has talked about before really both from a preparation perspective, what should my mix of vehicles be as well as how am I actually going to operationalize that? How am I going to ensure that I'm hitting the charging station at the correct point? There's a huge opportunity in our customer base from a sustainability perspective as well. So why do we win? So we've talked a lot today about safety. We've talked a lot today about Unity. My background is in enterprise SaaS software for the last 20 years. As Steve has mentioned, we're really building out a sales team that has this enterprise SaaS DNA. And why is that important? It's important because we really change the conversation when we talk to customers. We don't come in and start talking about devices. They might come to us and ask about devices, but we quickly change the conversation. We start to speak to them about digital transformation. What are your strategic objectives over the next 3 to 5 years? And very quickly, what that does is it elevates the conversation. So we're going to talk about opportunities that we've turned into a much broader Unity play really by having this SaaS-based sales team that's coming in -- these are experts in supply chain, logistics, they understand the different business problems that we need to start digging into. And this is possible because we have a one-stop shop across our mobile assets. So because we can go from warehouse to trailer to warehouse, what that allows us to do is to start inquiring about supply chain visibility about asset utilization. We have the tools in our toolkit to be able to solve business problems, which our competitors can't solve today. And this is all underpinned by this device-agnostic Unity platform that we spoke about earlier. So what that means is when we're talking to someone about an in-warehouse solution, we can start to talk to them about how does this data that we're getting from a forklift, how does that interact with your warehouse system to be able to understand real-time location tracking? How can we integrate with their labor system to understand where an employee was and did they do the correct amount of moves within a given hour, transportation systems we talked about earlier. So both in terms of integrating into other systems, taking data in, sending data out, providing more value. But also, as David mentioned earlier, many of our customers, of course, they have -- there -- some of them are built over acquisitions. They have multiple operating companies. They all have multiple devices from different vendors and they're all going into multiple portals today. They're taking spreadsheets. They're bringing them together. We are just talking to one of the largest retailers in the world the other day, sitting down at a QBR. And by asking some of these pointed questions in terms of what is your strategic objective over the next year. We discovered that they're just trying to scale and grow, and they don't know how to do that. They don't know how to best utilize their assets, and what that turned into was a conversation about a whole fleet of assets that we weren't managing today. We don't have visibility to someone's going into a portal, they're pulling a spreadsheet. They're trying to make sense of all this data. And so really, what this is doing is, it's allowing us to be able to change the conversation, elevate, move out of the fleet, start talking bigger, which ultimately is going to lead to increased ARPU, increased SaaS. And I'll talk about a couple of more examples of that in just a second. So Unity. So you should all know this slide today. I think you can all recite it after you leave today, but we wanted to bring up a couple of real-life examples where we are selling this today. We have customers that have implemented this today. So there's a diversified group that has a transportation logistics arm, so they provide transportation services for their customers. They also have a number of dealerships where they sell, lease and rent tractors. So think big semis, tens of thousands of these. And they came to us with a really simple request. They said, we want to just be able to track our vehicles in case someone defaults on their lease. We want to be able to get that back, pretty simple request. Turning to a real commoditized conversation. They started talking about price right away. And what we did was we stopped them and said, "Well, we really want to understand a little bit more about your business" and we started to talk about Unity, business problems that we can solve. That got us an audience with their CTO. We sat down with Jim and Steve and their CTO. And what that turned into was a conversation about data. Their CTO is trying to understand how can he take data, make sense of it and provide a better customer experience. So what I mean by that is, how can he understand, for instance, when a truck is supposed to be serviced, so he can provide preventative maintenance and ultimately, a better customer experience, right? So what he's looking at doing is saying, "I want to take data from trailers, from tractors, et cetera. I want to be able to pull all this together, and I want to be able to optimize my business." He has a team of developers in India today that are going into portals into Geotab, into the Volvo portal, the Daimler portal. They're trying to pull all this data together and make sense of it. What he's looking for is a data highway, right? He's looking for us to be able to say, "You go integrate with Volvo, Daimler, PowerFleet devices, XYZ competitor devices, bring all that data together." And so what that means is what we're doing is starting with the PowerFleet vehicle gateway today. We've already in the last few months. We've installed 5,000-plus devices. We're about to deploy on Volvo OEM and Freightliner OEM. And the beauty of that is, that's across thousands of assets that's all incremental SaaS. That's all incremental SaaS that we're getting. And guess what? Once we have Volvo and Freightliner, who's the next customer up? Plug their VINs in incremental SaaS. So we're taking that data, whether it's Volvo, Freightliner. Of course, they're going to give it to us in a different way, different fields. It's going to be in a different format, a different frequency. That's the beauty of the data transformation engine is we're able to take that data, harmonize it, cleanse it. If they were to try to do this today, it would take hours and spreadsheets and people to try to make happen. So we're able to take that data, cleanse it, harmonize it. Number one, we're bringing into our data-powered applications so they want to have a single map where they can see all of their assets. So what we're doing is starting with visibility and resource management. As Steve mentioned, we have this modularized approach. So we're going to start with one module, which they're paying us for today. Then as we start getting some of this maintenance data in from the OEMs, guess what, now they're going to start paying for more incremental SaaS for another data-powered application. And now we're starting to become this one-stop shop where they're coming to us with every single request that they have as it relates to their assets. So for instance, the CTO wants to be able to provide a white label risk and compliance solution in CAD, so that he can be the one-stop shop for his customers. So he's coming to us and saying, "Are you able to do that?" Well, with MiX, we have a fantastic solution. We'll be white labeling for them. He came to us with his reefer problem. "So I have refrigerated trailers. I want to be able to understand the temperature of those. I want to bring all that data in." And this is really just the start, right? And so this is really the blueprint for us is starting small enterprise sales team coming in consultative mindset. We're not talking hardware. We're talking digital transformation, business problems, and this is what we're going to continue to do going forward. Another example with an intermodal transportation logistics provider. So think intermodal, think containers coming in off of a ship, going on to a chassis, truck going to a warehouse, et cetera, ultimately to an end customer, to a warehouse. This customer, again, came to us with a very simple request, which was, "I want to be able to track my new 565 chassis that are coming off the line." And so we said, "Well, that's great. We certainly have great solutions there." We have a really competitive solution in the market. But we didn't stop there. Ultimately, by talking about, again, trying to understand, well, do you have other vendors out there? That's interesting. So how are you getting data from them? How are you going to get data if you choose PowerFleet and you have your legacy platform. We're going to have to go into 2 portals. We're going to have to go look at 2 spreadsheets, pull them together. Somebody is going to have to write a whole bunch of reports. We said, "Well, great. We can actually go and we can integrate to our competitors' devices." I know you want to get off of them eventually, which is great. You have 1.5 years left on your contract. You're going to go in -- we're going to go and replace those with PowerFleet devices, but in the meantime, we don't want you to have to go through that pain. We want to give you a single pane of glass, a single visibility layer, and that's what we've done, and this is implemented today. And we started with 250. We have 500 more under contract. And this is one operating company within this diversified group, and they have 6 or 8 more throughout the country. And so we're continuing to land and expand with this customer, and we're not stopping there. We're talking to the mobile-in-cab again. They have competitors that are in the cab today. They have also this desire. We were able to have a conversation with their CIO to differentiate themselves through the technology, through the data. So again, we're continuing to see this pattern where companies, I think, in the past, they would have said, "I'd love to sell you 565 trackers for your chassis." But we're not stopping there. What this is doing, of course, is, again, this is all incremental SaaS. So they're paying -- we're getting this through an API today. They're actually paying still for their competitor, our competitor, but they're actually paying incremental SaaS on top of that to us just for the benefit of getting that into a single platform. Again, we're starting with a couple of data-powered applications. We're in the process of expanding from there. We're taking that data. We're feeding into their analytics platform. So again, I think you're seeing the pattern here. And so this is our strategy. We're continuing to build out our sales team to be able to execute on this. What's really exciting is our customer base. So we certainly -- we're going after new logos. As we mentioned earlier, Joss said, we're not going to stop going after new logos, even though we think there's a fantastic opportunity to cross-sell. But we have a great new logo engine. We're doing that. We're expanding within our existing customer base. So there's a lot of these customers where we might be in a single site, where we might be in a couple of sites from a warehouse perspective. We might not have all of their assets from a transportation perspective. What we're also doing is, we're cross-selling to these customers. And if you think about these brands, these are premier brands. In a lot of cases, we might be in this much from an asset perspective. So we're in the process right now. We have active opportunities where we are cross-selling. And of course, as we mentioned, with the MiX opportunity, we're going to be taking this much further. So some of the examples look like we have dealers that sell our in-warehouse solutions, but guess what, they have service vehicles. They have rental fleets. They also need some of the solutions that we have for over-the-road vehicles and construction equipment. We have in-warehouse customers. If you think about some of those brands that you saw on the previous screen, if you're a grocer, if you're a retailer, guess what? Many of them have their own assets. If you look on the road and you see the trucks with the logo on it, they also have the opportunity where we can go over the road. We have the in-cab solution now, which, again, Jonathan mentioned this before, we're very excited. It's a salesperson when I heard about this opportunity to have a whole new tool kit of tools to be able to sell our customers. We're going out there, and we're doing that today. We have existing customers from an over-the-road perspective. They were upselling, again, in-cab, cold chain reefer, this whole third party. So now once we have Volvo, we have Daimler. Guess what, we're going to go talk to all those customers and say, "How are you getting that data today? Are you paying for another provider? Or should we go directly to the source, bring all that data into the Unity platform along with PowerFleet?" Field service management. This is coming via the MiX combination. There's a whole number of legacy field service management customers that we have many solutions in construction to be able to cross-sell to them. And then finally, in-warehouse to logistics. So there's a huge opportunity. We're in the process of doing this today. The combination with MiX even strengthens our opportunity here. Just a real quick example. We're not going to go through all the rows here, but these are -- obviously, these have been anonymized. These are in-warehouse customers that we have today, the top 12 or so that do not own our over-the-road solutions, and this is the number of assets that they have. And obviously, the quantities there are quite staggering. So there's a huge opportunity to cross-sell our in-cab solutions, our over-the-road solutions to these customers. Finally, because I think I'm getting taken off the stage. So from a momentum perspective, so we've talked a lot. We've talked about what does our growth look like. We've talked about our plans in terms of market drivers, Unity platform. We've had a ton of momentum over the last year. So again, this is both selling, expanding into our existing customer base as well as selling new logos. A lot of this comes from a safety and compliance perspective in the warehouse. We have customers like Ford and John Deere, where we just continue to expand across their sites. These are huge networks. Our customers make acquisitions. Then we continue to expand within that customer base. Valvoline is a great example of an enterprise sale that we just made recently where we sold across all of their warehouses. The Unity data integration, that's not stopping. We have a customer like Publix actually who is a cross-sell. So they were an over-the-road customer from a logistics perspective, tractors and tailors. We're now in their service vehicles. Right now, we're looking in-warehouse. So there's a ton of opportunity there. And then, of course, over-the-road, we're continuing to cross-sell into our customer base these solutions, but we're rapidly expanding within this space. And what I want to bring up here is just that we've had key wins against some of the competitors that we've talked about today. So we're winning against Samsara. We're winning against Geotab. We actually have one of these logos up here that I won't mention. When they were doing a side-by-side comparison, and this is outside of Unity, just the core telematics fleet management solutions, some of the data-powered applications that we've talked about. They looked at the 2 solutions and said, what's -- I don't really see a big difference between the 2. But the reason that they chose us was because of Unity among a number of other things. So really excited about the market drivers that we have that are really leading to all this growth potential. The MiX combination is fantastic, and I really appreciate all the time today. So I'm going to turn it over to Joss.

So you've been a lot to take in. And I just want to -- in the short time that I've got left to address you, reinforce some messaging. So putting these businesses together, turbochargers growth, but which won't you really just reflect on that for a minute. The combined business will grow faster than the individual business is not capable of growing a cross-sell and upsell opportunity. We can contribute in my view, said it before, and I'm going to say it once more, at double-digit growth for the foreseeable future on top of any new customer acquisition we are getting. If I project forward through a year, we've got a business well on its way to achieving Rule of 40 performance for a business, $300 million plus of revenue up to 12 months, unlocked something in the order of $25 million of EBITDA in the form of synergy, the business on the way to accelerating cash flow generation. And the business that is positioning ourselves extremely well for additional potential acquisitions down the road. You can all form your own view on valuation. So I am biased, and I accept that. I've taken a lot of flack in recent quarters' pre-announcement on why we weren't buying that stock aggressively? Simple reason is that we went in a position to -- our counsel advised us that we were involved in discussions that prohibited us from buying stock, by virtue of the fact that we were in possession of potentially material nonpublic information. As things currently stand, we are still, not as a company or as executives allowed to buy stock. And we won't be until I believe we published the formal shareholder circulars leading up to the shareholder vote. But I believe that this is an incredibly low-risk investment opportunity. And again, I'm sharing my personal opinion with you. The leadership team, I would like to, I guess, end up on that. So Steve, you got a fantastic team together. And we've had an opportunity to engage with all of them over the last 6 months. And without exception, we're extremely impressed with all of them. They're almost as good as our team. And what really excites me is that we're putting both teams together. And I'm really pleased that we're going to mention everybody by name, but -- guys and gals that I've worked with for many, many years and have got an extreme amount of respect for -- are going to be joining the PowerFleet leadership team. And I can't wait to see what you guys do with this business. Steve did prohibit me from mentioning the rugby. As some of you might have guessed, I'm South African by birth, but have been living in the U.S. for 15 years. I've been a proud American citizen of '10. There's a few things from the homeland that you don't get out of your system. And one of them is your passion for the local rugby team. And we recently competed in the World Cup in France. We won -- we defended our title, so South Africa ended up beating New Zealand in the final. But what was most satisfying for me was beating England in the semifinal.

By how many points?

It only takes 1 point. I appreciate everybody's time. Thank you.

So you've all been super attentive and very patient. We are now going to take some questions. I think how we're going to do this is take around the mic. I'd ask Joss to come back and also ask David to join us on stage as well. And if there's any other questions outside the 3 of us, then we'll get other people in the room. So I think we're going to start with Alex down the front here.

One question for David. One question for Charles. David, your 2024 and 2025. Is that pro forma for 2024? Or if not, what is that assuming a close date?

Good enough approximation, but it does assume a January 1 close date.

Okay. And then for Charles, you have Coca-Cola FEMSA through PowerFleet. You might have Coca-Cola, whoever through an African country through a distributor. Do you somehow form a Global 100 tracking so that you can actually cross-sell? I know they're different companies, but do you somehow track a Global 100 in order to cross-sell?

Yes, absolutely, definitely. And this has been one of the core things that we're focused on is looking through our base as MiX always looking to see. And as you say, some of them are local bottlers or whatever, then may not have the same name until that's something we've done over the years, something we certainly will be doing as we put the 2 bases together. Great opportunity. And some of those come through partners. So we've got to look at the partner network as well and understand that and look for those opportunities, definitely.

Matt Pfau, William Blair. David, I wanted to ask on the NRR target of hopefully getting to 120, which would be very impressive. Where are you today? And then getting to 120, how do you think about the mix between ARPU expansion, new subscribers and improvement in gross retention?

Yes. So where we are today, we can brute force our way to get numbers and we had to do that as part of the diligence process. So there's obviously some FX impact if you did in local currency, we're probably about 105, 106 is kind of where we're at today. As we look to the future, the most immediate opportunity is, we're just getting that breadth. So I view it more on a volume basis. And the pricing is going to vary as well, right? So this is something new. We're solving a new set of problems. It's not if there's a price book that's out there. So we'll have to sort of work our way through that. But I think the most important takeaway is, you're selling to existing customers, it is an acute pain point and it's pure software revenue, right? So there's no sort of additional hardware attached to it. So the mix improves and it drives more gross margin from a topline standpoint. So we'll need to evolve in terms of just understanding how much is volume versus price. So the final thing is, we're working across multiple vectors. So we're working every single lever, and we have a strategy for every single lever. In totality, obviously, the more leverage you can pull, the more topline growth you're going to generate.

So just a quick question on your cross-sell opportunities you've framed it up. I'm less familiar with some of the verticals that PowerFleet is bringing into the MiX. How much of that broadly speaking is because there's a lot of different places you'd be cross-selling that, that is going to be greenfield versus a competitive displacement situation?

So particularly with the cross-sell into the warehouse, then outside of the OEMs, we're really on a global basis, the only gaming team. So there are maintenance and kind of operational benefits that the OEMs have been providing. Ultimately, the big driver is safety, and you've seen from the pedestrian proximity perspective, we have unique solutions to do that. So much of that is greenfield.

Thank you. This is Alex Sklar with Raymond James. Steve, can you just talk about the -- in the competitive landscape, your evolution of win rates over the last kind of 12 months? Are there any metrics you can kind of share there? And when you think about kind of the future state, do you envision more of the growth coming from just kind of this broader vision and pipeline growth? Or do you also see a contribution from greater conversion of pipeline, higher win rates?

Yes. So I think what Unity provides is the ability for you to, no doubt, win more business than you win without the Unity strategy. Why? Because ultimately, you are gaining business that is already with our competitors in the customer today, but that consolidation element means that ultimately by design, you take more business. So David will start to publish more around win rates in the future. But we expect a win rate that we already had in the industrial space as an example of more than 30% with the pedestrian safety elements, we're now seeing north of 50%. If you look in existing accounts, Josh already articulated very much today, the expansion from 500 to 5,000 in the logistics customer from 300 to 800 in terms of the intermodal supply. So naturally, that kind of expansion and because you are becoming that one-stop shop supplier, your win rates will naturally increase.

Scott Searle from ROTH. First for David, just in terms of the assumptions in the model, MiX has had a large contribution of bundling some of the hardware elements or leased hardware. Kind of what are you factoring in you hasn't been done on the PowerFleet side? And then I guess, to follow up some of the comments on North America and Josh' presentation, it seems like a lot of opportunities getting to high levels with CTOs. Wondering what that's doing to the sales cycle? And we also had some insights from Eduardo on some of the ARPU movement specifically with FEMSA. I'm wondering what you're seeing within the other North American accounts given what's being brought to the table now?

So I can -- have me start. So in terms of the forward-looking model, we've kind of assumed business as normal. So you're absolutely right. From a MiX standpoint, they generally have been able to be successful in terms of bundling from us. We've primarily let the customer decide. So we definitely have a lot more revenue coming through from sort of onetime sales as opposed to sort of rolling it forward. The only thing I'd add is if you think about a high interest rate environment, there is actually virtue in terms of maybe getting some of that money on the balance sheet straightaway. So I think the strategy is, we let the customer lead. So what works with the customers, we will seek to accommodate. But, that will be the way forward.

In terms of the sales cycle, you may think because it's an enterprise SaaS sale, it's going to take longer than the commoditized sale. That may be true in certain circumstances. But when we get to the fact that we're actually get into different budget holders and C-suite executives, then ultimately, we're getting decisions made faster because what we are seeing in the commoditized base is ultimately decision processes with the challenges of the business are facing and going up to that C-suite. And then ultimately, because we're looking at this and we're saying, "Right, okay, let's take OEM data and wallet share. Let's take our competitors' wallet share." You're collapsing the timescale because you're doing more at once. I think what was, for me, super exciting in terms of Joss' presentation was those customers that he's talking about, these are new customers within the past 4 to 5 months. And you've seen the fast expansion from services of I want this to ending up having 3 or 4 different services from us in that period of time.

[indiscernible]. Unity, it seems like a big part of the value proposition that you bring to customers. Maybe could you touch on what are the barriers to enter your scale for a competitor to potentially create something like this down the road? And any related thoughts on that?

So I mean, ultimately, as I started off, this is a proven model in other platforms, in other SaaS environments in other parts of industries. So we have a 2-year start in terms of doing that. What we also -- what you also need to be successful is having the true depth of capability. So being a consolidator in terms of all the data inputs in terms of all the different fleet aspects, you have to have the core capabilities. Nobody else currently has that. So this isn't a one winner takes all market. My belief is, there'll be 3 or 4 companies who go on this particular journey. And some of those may be from competitors that we don't see today, but are through data AI SaaS companies that will come into this market. So ultimately, we've got a first-mover advantage. We have the depth of capability and all the heritage experience and functionality that's needed at the base level to even get to the point where we're bringing this data in. And then ultimately, from a device agnostic piece, you have to have your own capabilities. You have to have the ability to work and understand the protocols and everything else that goes with all of the different devices that you're bringing in and you have to also have the software skills to do that. So not impossible, but a long journey for others to come and do it, particularly in a fast or rapid environment.

So sort of building on that. And I know, sort of, I guess, the benchmark as far as valuation and product is Samsara. And as far as I understand, they have a lot of API integrations themselves, maybe a little bit more money to spend. So I guess, in the longer term, how do you sort of keep your product in line or even better with them? You've talked about winning directly against them in North America. And maybe part of this is maybe it'd be helpful to see a product demo as well at some point.

So we fully respect Samsara, what they're achieving. And if we got to half of their valuation, then I think everybody in this room would be superbly happy. I think from our perspective, they do well on the third-party integration. They don't have the same strategy in terms of data ingestion. They also do not have the warehouse to the over-the-road capabilities that we have today. So they're bigger than us. Sometimes when you get that level of scale, being able to take your customers on a long-term journey to be able to do a true road map with them, the true trusted adviser status, do the things that we are doing well with the intermodal company and logistics company is more challenging. So are we going to go and knock out Samsara, no. What we are going to do is be a credible alternative to Samsara. And from a valuation perspective, as I say, if we can get partly on that journey, then we'll all be happy. In terms of the demo, we're more than happy to provide demos at any time during the future.

Chris Quintero from Morgan Stanley. When you look at the 2-year targets, I guess, like what areas do you think are the easiest for you all to kind of outperform? And then maybe on the flip side, let's say, you don't reach those targets or come a little bit short, what do you think were the roadblocks that prevent you from hitting those?

Yes, I can definitely start with that. So what I would say is, we haven't got outlandish targets there, right? So we're not talking about crazy growth rates. We are talking about 5% and north of 10%. And just as we've gone through just the product strategy that we have, the traction that we're getting and the ability to sort of cross-sell on the back of revenue synergies, we don't feel that the revenue growth is something that we shouldn't be able to meet or beat. From an EBITDA margin standpoint, the thing that we're most comfortable with is getting that $25 million plus. That is the one thing we have total control over. We have a team that has a track record of doing that. So clearly, the EBITDA is more straightforward, but I think we're pretty comfortable with the revenue projections, too.

And when we look at this and people ask us, what is the risk? It's execution, right? So ultimately, the great part of this is a lot of it is in our own hands. If you look at from a track record perspective, I laid out in the first quarter, I would see what we're going to try and achieve in the first 2 years. And I think as a scorecard, you can look and see whether we've gone and done that. We're laying those targets out again. It's very easy to get distracted. It's very easy to take macroeconomic challenges. In the last 2 years, just think of everything that's happened, there's been headwinds for this business to get to this point. But we're very focused. We have a lot of experience. We have a lot of track record, and we measure and monitor as we go along. So the big thing I say to the team is, don't follow new bright lines. We know we've got a winning strategy. We have a deep plan. It's on us to execute. Okay. I think we're almost out of time. We will take one more question.

[indiscernible] again. One of the other things you talked about during the presentation was that the large entity will have some potential to do additional acquisitions in the future. Can you help us understand what sort of time frame you guys are thinking about? Is it kind of after this initial 2-year period? And when you look at your pro forma portfolio, what capabilities do you still feel like you can improve on?

So what we want to do is prove our performance. We want to prove out the thesis. We want to actually demonstrate that we've got the -- we're on track and we've got momentum. So we want to deliver 3 or 4 quarters of the top line growth and the view that the EBITDA expansion is coming through. Then we'll start to lift our heads. Again, these things take time to obviously mature. But I think if we could add $80 million to $100 million in terms of high-quality North American or European revenue, that we can bring on a similar journey, then we're on a path to having $0.5 billion revenue company. So what we won't do is get above our skis. What we won't do is dilute our efforts. But ultimately, there are a number of assets that could be highly attractive. Our phones have actually rang off the hook since we've done this with people of a similar status that ultimately are energized to try and become part of this consolidated story. There's a lot of dumpster trucks out there that we won't go anywhere near because what we don't want to do is to take 2 to 3 years and dilute our efforts in taking a seat at the top table, but there are some price assets that we think potentially, once we've earned our strikes, once we've started to eat the apple that we have in front of us, we'll move on to. In terms of breadth of capability, in our core space, I think we've got more than enough capability to be successful. We have the largest portfolio that there is out there. So for me, it has to be something that is accretive in terms of revenue, accretive in terms of EBITDA expansion. But as we look at the broader capabilities and being part of the broader AIoT landscape, are there opportunities for us to broaden out our propositions, and we'll look and analyze those as well. Okay. I think that is it. So just to sum up, I think what I would say is, I think we're being bold, I think we've been brave in terms of laying out a short- to medium-term plan. We want to be judged by that plan. There will be challenges along the way, I'm sure. But how we will interact with our partners, and when I mean partners, I mean our investors is with truth, transparency and ultimate view of the progress that we're making along the way. So we all very much hope that you want to come on this journey. We hope that you're excited, and we all hope and expect that will very soon start to increase the valuation of the company and shareholder value. So thank you very much for your precious time.