20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 20-F

o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2018

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-36027

MIX TELEMATICS LIMITED

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant’s Name into English)

REPUBLIC OF SOUTH AFRICA

(Jurisdiction of incorporation or organization)

Howick Close

Waterfall Park, Midrand, South Africa, 1686

(Address of principal executive offices)

Paul Dell

Interim Chief Financial Officer

Telephone (27) 11-654-8000

paul.dell@mixtelematics.com

Fax (27) 11-654-8286

Howick Close

Waterfall Park, Midrand, South Africa, 1686

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act.

Title of each class	Name of each exchange on which registered
American Depositary Shares (“ADSs”), each representing 25 ordinary shares, no par value	New York Stock Exchange
Ordinary Shares, no par value	New York Stock Exchange (for listing purposes only)

Securities registered or to be registered pursuant to Section 12(g) of the Act.

None

(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

604,420,145 Ordinary Shares

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

oYes xNo

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

oYes xNo

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

xYes oNo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). (*)

oYes oNo

(*) This requirement does not apply to the registrant in respect of this filing.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer x	Non-accelerated filer o
		Emerging growth company x

If an emerging growth company that prepares its financial statements in accordance with U.S GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP o International Financial Reporting Standards as issued by the International Accounting Standards Board x Other o

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

oItem 17 oItem 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

oYes xNo

TABLE OF CONTENTS

	Page
Forward-Looking Statements	i
Presentation of Financial and Other Information	i
Part I
Item 1. Identity of Directors, Senior Management and Advisors	1
Item 2. Offer Statistics and Expected Timetable	1
Item 3. Key Information	1
Item 4. Information on the Company	33
Item 4A. Unresolved Staff Comments	49
Item 5. Operating and Financial Review and Prospects	50
Item 6. Directors, Senior Management and Employees	78
Item 7. Major Shareholders and Related Party Transactions	90
Item 8. Financial Information	93
Item 9. The Offer and Listing	94
Item 10. Additional Information	96
Item 11. Quantitative and Qualitative Disclosures About Market Risk	110
Item 12. Description of Securities Other Than Equity Securities	111
Part II
Item 13. Defaults, Dividend Arrearages and Delinquencies	112
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds	113
Item 15. Controls and Procedures	115
Item 16A. Audit Committee Financial Expert	117
Item 16B. Code of Ethics	117
Item 16C. Principal Accountant Fees and Services	117
Item 16D. Exemptions from the Listing Standards for Audit Committee	118
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers	118
Item 16F. Change in Registrant’s Certifying Accountant	119
Item 16G. Corporate Governance	119
Item 16H. Mine Safety Disclosure	121
Part III
Item 17. Consolidated Financial Statements	122
Item 18. Consolidated Financial Statements	122
Item 19. Exhibits	125
SIGNATURES	127

FORWARD-LOOKING STATEMENTS

This annual report includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding our position to execute on our growth strategy, and our ability to expand our leadership position. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements that are not historical facts and statements identified by words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates” or words of similar meaning. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in, or suggested by, these forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved.

Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, our ability to attract, sell to and retain customers; our ability to improve our growth strategies successfully, including our ability to increase sales to existing customers, the introduction of new solutions and international expansion; our ability to adapt to rapid technological change in our industry; competition from industry consolidation; loss of key personnel or our failure to attract, train and retain other highly qualified personnel; our ability to integrate any businesses we acquire; our dependence on our network of dealers and distributors to sell our solutions; our dependence on key suppliers and vendors to manufacture our hardware; businesses may not continue to adopt fleet management solutions; our future business and system development, results of operations and financial condition; expected changes in our profitability and certain cost or expense items as a percentage of our revenue; changes in the practices of insurance companies; the impact of laws and regulations relating to the Internet and data privacy; our ability to protect our intellectual property and proprietary technologies and address any infringement claims; our ability to defend ourselves from litigations or administrative proceedings relating to labor, regulatory, tax or similar issues; significant disruption in service on, or security breaches of, our websites or computer systems; our dependence on third-party technology; fluctuations in the value of the South African Rand; economic, social, political, labor and other conditions and developments in South Africa and globally; our ability to issue securities and access the capital markets in the future; and other risks set forth under “Item 3D. Risk Factors” or elsewhere in this annual report.

We assume no obligation to update any forward-looking statements contained in this annual report as a result of new information, future events or otherwise.

PRESENTATION OF FINANCIAL AND OTHER INFORMATION

The consolidated financial statements contained in this annual report on Form 20-F have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (the “IFRS”).

Unless the context requires otherwise, the terms “MiX”, the “Group”, “we”, “our” or “us” refer to MiX Telematics Limited and its consolidated subsidiaries. Unless the context requires otherwise, the “Company” means MiX Telematics Limited.

Our fiscal year ends on March 31 and all references to a fiscal year, refer to the fiscal year ended March 31. References to “R” are to South African Rand and references to “U.S. Dollars” and “$” are to United States Dollars. Unless otherwise indicated we have translated U.S. Dollar amounts from South African Rand for convenience at the exchange rate of R11.8255 per $1.00, which was the R/$ exchange rate reported by Oanda.com as of March 31, 2018. These translations should not be construed as representations that the South African Rand amounts represent, or have been or could be converted into, United States Dollars at that or any other rate.

i

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

Not applicable.

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3. KEY INFORMATION

3A. SELECTED FINANCIAL AND OPERATING DATA

The following tables set forth selected consolidated financial and operating data at and for the fiscal years ended March 31, 2018, 2017, 2016, 2015 and 2014. The selected financial data set forth below for the years ended as at March 31, 2018 and 2017 and for each of the years in the three-year period ended March 31, 2018 has been derived from our consolidated financial statements included in Item 18 of this annual report on Form 20-F. The financial data as at March 31, 2018 and 2017 and for each of the years in the three-year period ended March 31, 2018, should be read in conjunction with, and is qualified in its entirety by reference to, our consolidated financial statements. Financial data as at March 31, 2016, 2015 and 2014, and for the years ended March 31, 2015 and 2014 have been derived from our previously published consolidated financial statements, which are not included in this document. The selected financial data set forth below should be read together with “Item 5. Operating and Financial Review and Prospects”. The results of operations for the periods presented below are not necessarily indicative of the results to be expected for any future period.

Our consolidated financial statements included in this annual report and certain data derived therefrom are presented in South African Rand.

We prepare our consolidated financial statements in accordance with IFRS, which differ in certain significant respects from Generally Accepted Accounting Principles in the United States (“U.S. GAAP”).

Consolidated Income Statement Data

	For the year ended March 31,
	2018			2018			2017			2016			2015			2014
	(In thousands)
Revenue		$144,813			R1,712,482			R1,540,058			R1,465,021			R1,389,380			R1,271,658
Cost of sales	(49,635		)	(586,963		)	(498,785		)	(439,305		)	(449,663		)	(422,034		)
Gross profit	95,178			1,125,519			1,041,273			1,025,716			939,717			849,624
Sales and marketing	(15,642		)	(184,978		)	(181,601		)	(203,767		)	(171,948		)	(148,012		)
Administration and other charges (1)	(61,358		)	(725,589		)	(721,810		)	(682,865		)	(617,908		)	(530,114		)
Operating profit	18,178			214,952			137,862			139,084			149,861			171,498
Finance (cost)/income - net	(6		)	(69		)	10,391			150,327			80,778			40,660
Profit before taxation	18,172			214,883			148,253			289,411			230,639			212,158
Taxation	(2,849		)	(33,690		)	(26,812		)	(106,920		)	(81,623		)	(60,574		)
Profit for the year		$15,323			R181,193			R121,441			R182,491			R149,016			R151,584
Attributable to:
Owners of the parent		$15,318		181,134			121,458			182,989			149,622			151,589
Non-controlling interests	5			59			(17		)	(498		)	(606		)	(5		)
		$15,323			R181,193			R121,441			R182,491			R149,016			R151,584

1

	For the year ended March 31,
	2018	2018	2017	2016	2015	2014
Earnings per share (2)
Basic ($/R)	$0.03	R0.32	R0.19	R0.24	R0.19	R0.21
Diluted ($/R)	$0.03	R0.32	R0.19	R0.23	R0.19	R0.20
Adjusted earnings per share (3)
Basic ($/R)	$0.02	R0.28	R0.17	R0.11	R0.13	R0.17
Diluted ($/R)	$0.02	R0.27	R0.17	R0.11	R0.13	R0.16
Weighted average number of ordinary shares in issue
Basic (’000)	561,088	561,088	629,626	775,139	789,316	732,171
Diluted (’000)	573,981	573,981	631,819	783,414	804,385	768,306
Dividends per share (South African cents) (4)		9.50	8.00	14.00	—	6.00
Dividends per share (United States cents) (4)		0.80	0.68	1.18	—	0.51

⁽¹⁾  Includes other income/(expenses) - net.

⁽²⁾  See note 29 to our consolidated financial statements for further details on earnings per share.

⁽³⁾  Adjusted earnings per share is a non-IFRS financial measure. See “Adjusted earnings per share” as described on page 7 below.

⁽⁴⁾  See note 30 to our consolidated financial statements for further details on dividends.

Other Financial and Operating Data

	For the year ended March 31,
	2018		2018		2017		2016		2015		2014
	(In thousands, except subscribers)
Subscription revenue		$121,315		R1,434,615		R1,239,914		R1,158,229		R998,335		R853,716
Adjusted EBITDA (1)		$37,366		R441,866		R301,613		R277,215		R282,994		R280,678
Subscribers (2)	676,866		676,866		622,062		566,177		512,344		450,502

⁽¹⁾  See “Adjusted EBITDA and Adjusted EBITDA margin” below for our definition of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to profit for the year, the most directly comparable financial measure presented in accordance with IFRS.

⁽²⁾  As at March 31.

Consolidated Statement of Financial Position Data

	For the year ended March 31,
	2018	2018	2017	2016	2015	2014
	(In thousands)
Cash and cash equivalents	$26,067	R308,258	R375,782	R877,136	R945,381	R830,449
Total assets	168,559	1,993,325	1,906,689	2,378,281	2,228,608	1,977,100
Working capital	27,797	328,689	340,659	931,696	996,085	849,204
Total indebtedness (1)	1,498	17,720	19,449	17,477	20,469	31,551
Total equity (2)	$128,299	R1,517,181	R1,442,931	R1,919,808	R1,864,572	R1,671,630

⁽¹⁾  Total indebtedness includes amounts outstanding at the balance sheet date for bank overdraft and borrowings.

⁽²⁾  Includes non-controlling interest.

2

Adjusted EBITDA and Adjusted EBITDA Margin

To provide investors with additional information regarding its financial results, the Company has disclosed Adjusted EBITDA and Adjusted EBITDA margin within this annual report. Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures; they do not represent cash flows from operations for the periods indicated and should not be considered an alternative to profit for the year as an indicator of the Company’s results of operations or as an alternative to cash flows from operations as an indicator of liquidity. Adjusted EBITDA is defined as the profit for the period before income taxes, net finance income/(costs) including foreign exchange gains/(losses), depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development costs and intangible assets identified as part of a business combination, share-based compensation costs, transaction costs arising from the acquisition of a business or investigating strategic alternatives, restructuring costs, profits/(losses) on the disposal or impairments of assets or subsidiaries, certain non-recurring initial public offering (“IPO”) costs, insurance reimbursements relating to impaired assets and certain litigation costs. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue.

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

3

A reconciliation of Adjusted EBITDA to profit for the year, the most directly comparable financial measure presented in accordance with IFRS, is presented below.

Reconciliation of Adjusted EBITDA to profit for the year
	For the year ended March 31,
	2018			2018			2017			2016			2015			2014
	(In thousands)
Adjusted EBITDA		$37,366			R441,866			R301,613			R277,215			R282,994			R280,678
Add:
Net profit on sale of property, plant and equipment and intangible assets	107			1,264			—			—			—			97
Insurance reimbursement (1)	—			—			—			—			3,237			—
Decrease in restructuring cost provision	63			741			—			333			—			—
Reversal of impairment (2)	—			—			791			—			—			—
Less:
Depreciation (3)	(12,849		)	(151,945		)	(98,508		)	(75,037		)	(61,099		)	(47,887		)
Amortization (4)	(5,406		)	(63,926		)	(44,734		)	(47,586		)	(46,294		)	(44,941		)
Impairment (5)	(228		)	(2,696		)	(3,166		)	(4,776		)	(1,646		)	(379		)
Share-based compensation costs	(875		)	(10,352		)	(3,311		)	(5,820		)	(7,578		)	(4,611		)
Equity-settled share-based compensation costs	(761		)	(9,000		)	(2,247		)	(7,838		)	(5,220		)	(4,611		)
Cash-settled share-based compensation costs (6)	(114		)	(1,352		)	(1,064		)	2,018			(2,358		)	—
Net loss on sale of property, plant and equipment and intangible assets	—			—			(262		)	(208		)	(456		)	—
Increase in restructuring costs provision(7)	—			—			(14,561		)	—			(11,267		)	(2,745		)
Non-recurring initial public offering costs	—			—			—			—			—			(8,503		)
Transaction costs arising from the acquisition of a business	—			—			—			—			(93		)	(211		)
Transaction costs arising from investigating strategic alternatives (8)	—			—			—			(5,037		)	—			—
Net litigation costs (9)	—			—			—			—			(7,937		)	—
Operating profit	18,178			214,952			137,862			139,084			149,861			171,498
Finance (cost)/income - net	(6		)	(69		)	10,391			150,327			80,778			40,660
Taxation	(2,849		)	(33,690		)	(26,812		)	(106,920		)	(81,623		)	(60,574		)
Profit for the year		$15,323			R181,193			R121,441			R182,491			R149,016			R151,584

⁽¹⁾ Insurance reimbursement related to the helicopter asset impaired during the second quarter of the fiscal year 2015.

⁽²⁾ The reversal of impairment of R0.8 million in fiscal year 2017 relates to in-vehicle devices in the Brazil segment.

⁽³⁾ Includes depreciation of property, plant and equipment (including in-vehicle devices).

⁽⁴⁾ Includes amortization of intangible assets (including capitalized in-house development costs and intangible assets identified as part of a business combination).

⁽⁵⁾ In fiscal year 2018, asset impairments relate to the impairment of capitalized product development costs of R2.3 million in the Africa segment and R0.4 million in the Central Services Organization ("CSO") segment. In fiscal year 2017, asset impairments relate to the impairment of capitalized product development costs of R2.6 million in the Africa segment and R0.5 million in the CSO segment. In 2016, R2.9 million impairment of in-house software and R1.9 million related to in-vehicle devices is included. In fiscal year 2015, asset impairments included R0.5 million impairment of computer equipment and furniture and fittings, R0.6 million related to the helicopter asset and a R0.5 million impairment of capitalized product development costs. In fiscal year 2014, the asset impairments were related to product development costs and furniture and fittings.

⁽⁶⁾ Cash-settled share-based payments are described in note 20 to our consolidated financial statements.

4

⁽⁷⁾ Restructuring costs incurred in fiscal year 2017 are described in note 19 to our consolidated financial statements. In fiscal year 2015, the Africa and the Middle East and Australasia segments implemented restructuring plans. The total cost of the restructuring plans was expected to be approximately R11.3 million. In fiscal year 2014, the Europe fleet solutions segment implemented a restructuring plan, which resulted in operating cost savings for the segment

⁽⁸⁾ Transaction costs incurred in fiscal year 2016 arising from investigating strategic alternatives are described in note 23 to our consolidated financial statements.

⁽⁹⁾ Net costs relating to litigation and the related insurance proceeds in fiscal year 2015 are described below:

On June 6, 2014, Inthinc Technology Solutions, Inc. (“Inthinc”) commenced a lawsuit in the U.S. District Court, District of Utah, Central Division, against the Group's wholly owned subsidiary, MiX Telematics North America, Inc. (“MiX North America”) and Charles “Skip” Kinford, whom the Group hired in May 2014 as President and CEO of MiX North America. Inthinc is Mr. Kinford’s previous employer. The claims against MiX North America included misappropriation of trade secrets under Utah state law and tortious interference with contract. The claims against Mr. Kinford included breach of non-competition, non-solicitation and confidentiality provisions in his employment agreement with Inthinc, misappropriation of trade secrets under Utah state law and breach of contract. Inthinc voluntarily dismissed MiX North America without prejudice on June 12, 2014, due to its decision to file the lawsuit in Texas, as discussed below.

On June 12, 2014, Inthinc commenced a lawsuit in the 48th Judicial District of Tarrant County, Texas against MiX North America (“Texas Lawsuit”). Inthinc alleged that MiX North America tortuously interfered with Mr. Kinford’s employment agreement and post-employment restrictive covenants and misappropriated unidentified trade secrets when MiX North America hired Mr. Kinford.

On August 21, 2014, the parties agreed to consolidate the related lawsuits into the Texas Lawsuit. In both of the lawsuits discussed above, Inthinc sought injunctive relief and unspecified money damages.

On or about October 17, 2014, the parties entered into a confidential settlement and release agreement. Pursuant to the terms of the agreement, the parties filed an Agreed Motion to Dismiss to effectuate the dismissal of all claims, with prejudice, in the Texas Lawsuit as well as the dissolution of any injunctions as issued to Mr. Kinford and MiX North America. The settlement, net of insurance proceeds, had been paid in full by the end of fiscal year 2015.

5

A reconciliation of Adjusted EBITDA margin to profit for the year margin, the most directly comparable financial measure presented in accordance with IFRS, is presented below.

Reconciliation of Adjusted EBITDA margin to profit for the year margin
	For the year ended March 31,
	2018		2017		2016		2015		2014
	%
Adjusted EBITDA	25.8	%	19.6	%	18.9	%	20.4	%	22.1	%
Add:
Net profit on sale of property, plant and equipment and intangible assets	0.1	%	—		—		—		0.0	%
Insurance reimbursement	—		—		—		0.2	%	—
Decrease in restructuring cost provision	0.0	%	—		0.0	%	—		—
Reversal of impairment	—		0.1	%	—		—		—
Less:
Depreciation	(8.9	%)	(6.4	%)	(5.1	%)	(4.4	%)	(3.8	%)
Amortization	(3.6	%)	(3.0	%)	(3.3	%)	(3.3	%)	(3.5	%)
Impairment	(0.2	%)	(0.2	%)	(0.3	%)	(0.1	%)	(0.0	%)
Share-based compensation costs	(0.6	%)	(0.2	%)	(0.4	%)	(0.6	%)	(0.4	%)
Equity-settled share-based compensation costs	(0.5	%)	(0.1	%)	(0.5	%)	(0.4	%)	(0.4	%)
Cash-settled share-based compensation costs	(0.1	%)	(0.1	%)	0.1	%	(0.2	%)	—
Net loss on sale of property, plant and equipment and intangible assets	—		(0.0	%)	(0.0	%)	(0.0	%)	—
Increase in restructuring costs provision	—		(0.9	%)	—		(0.8	%)	(0.2	%)
Non-recurring initial public offering costs	—		—		—		—		(0.7	%)
Transaction costs arising from the acquisition of a business	—		—		—		(0.0	%)	(0.0	%)
Transaction costs arising from investigating strategic alternatives	—		—		(0.3	%)	—		—
Net litigation costs	—		—		—		(0.6	)%	—
Operating profit	12.6	%	9.0	%	9.5	%	10.8	%	13.5	%
Finance (cost)/income - net	(0.0	%)	0.7	%	10.3	%	5.8	%	3.2	%
Taxation	(2.0	%)	(1.8	%)	(7.3	%)	(5.9	%)	(4.8	%)
Profit for the year	10.6	%	7.9	%	12.5	%	10.7	%	11.9	%

Our use of Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools, and you should not consider these performance measures in isolation from, or as a substitute for, analysis of our results as reported under IFRS.

Some of these limitations are:

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;

• Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to the Company; and

• other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

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

6

Adjusted earnings per share

Adjusted earnings per share is defined as profit attributable to owners of the parent, MiX Telematics Limited, excluding net foreign exchange gains/(losses) net of tax, divided by the weighted average number of ordinary shares in issue during the year.

We have included adjusted earnings per share in this annual report because it provides a useful measure for period-to-period comparisons of our core business by excluding net foreign exchange gains/(losses) from earnings. Accordingly, we believe that adjusted earnings per share provides useful information to investors and others in understanding and evaluating our operating results.

A reconciliation of adjusted earnings attributable to owners of the parent to profit attributable to owners of the parent is presented below.

Reconciliation of adjusted earnings
	For the year ended March 31,
	2018			2018			2017			2016			2015			2014
	(In thousands)
Profit attributable to owners of the parent		$15,318			R181,134			R121,458			R182,989			R149,622			R151,589
Net foreign exchange losses/(gains)	429			5,073			(1,476		)	(144,038		)	(73,525		)	(38,128		)
Income tax effect on the above component	(2,486		)	(29,403		)	(15,307		)	48,647			25,873			10,458
Adjusted earnings attributable to owners of the parent		$13,261			R156,804			R104,675			R87,598			R101,970			R123,919
Weighted average number of ordinary shares in issue
Basic (’000)	561,088			561,088			629,626			775,139			789,316			732,171
Diluted (’000)	573,981			573,981			631,819			783,414			804,385			768,306

A reconciliation of earnings per share to adjusted earnings per share is presented below.

Reconciliation of earnings per share to adjusted earnings per share
	For the year ended March 31,
	2018	2018	2017	2016	2015	2014
Basic earnings per share ($/R)	$0.03	R0.32	R0.19	R0.24	R0.19	R0.21
Net foreign exchange losses/(gains)	#	0.01	#	(0.19)	(0.09)	(0.05)
Income tax effect on the above component	(0.01)	(0.05)	(0.02)	0.06	0.03	0.01
Basic adjusted earnings per share ($/R)	$0.02	R0.28	R0.17	R0.11	R0.13	R0.17

# Amount less than R0.01/$0.01

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Exchange rates

The following table shows the exchange rates (published by the South African Reserve Bank until March 31, 2014, and by Oanda.com thereafter) of South African Rand for U.S. Dollars (per $1.00) for the periods and dates indicated. Since exchange rates are determined by the market, there can be no assurance that the exchange rate will be maintained at current levels. The average rate is calculated by using the average of the exchange rates on each day during a monthly period, and the average of the exchange rates on the last day of each month during an annual period.

	High	Low	Average	Period-end
Fiscal year ended March 31,
2018	14.4645	11.5526	12.9039	11.8255
2017	15.8673	12.4379	14.0340	13.4124
2016	16.8231	11.7694	13.8856	14.8330
2015	12.4792	10.3068	11.0646	12.0907
2014	11.3573	8.8762	10.2102	10.5953
Month
June 2018 (through June 15, 2018)	13.4287	12.5927	12.9662	13.4287
May 2018	12.7716	12.2748	12.5313	12.6025
April 2018	12.4553	11.8271	12.0962	12.4060
March 2018	12.0296	11.6548	11.8473	11.8255
February 2018	12.0949	11.5526	11.8212	11.7548
January 2018	12.4308	11.8627	12.2021	11.8922

On June 15, 2018, the exchange rate of South African Rand for U.S. Dollars, as reported by Oanda.com, was R13.4287 per $1.00.

3B. CAPITALIZATION AND INDEBTEDNESS

Not applicable.

3C. REASONS FOR OFFER AND USE OF PROCEEDS

Not applicable.

3D. RISK FACTORS

Important factors that could cause actual financial, business or operating results to differ materially from expectations are disclosed in this annual report, including without limitation, the following risk factors. In addition to the risks listed below, we may be subject to other material risks that, as of the date of this report, are not currently known to us or that we deem immaterial at this time.

Risks Related to Our Business

We may be unable to maintain our relationships with our existing customers, which could result in a loss of subscription revenue.

We provide our solutions principally on a subscription basis, typically with an initial subscription term of three to five years and renewal terms varying from one to five years, or, for certain customers, on a month-to-month basis. However, our customers have no obligation to renew their subscriptions after the initial term or after any renewal term expires. We may be unable to retain existing customers and, as a result, our revenue would be adversely affected. Customers may choose not to renew their subscriptions for many reasons, including:

• the belief that our solutions are not required for their needs or are not cost-effective;

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• a desire to reduce discretionary spending;

• a belief that our competitors’ solutions provide a better value;

• changes in our customers’ businesses, and regulations impacting our customers’ businesses that may decrease the need for our fleet and mobile asset management solutions;

• economic downturn in our customers’ industries;

• economic downturn in the geography in which our customers' operate;

• a reduction in discounts offered by insurers to vehicle owners who have installed our products; or

• a belief that a return on investment cannot be demonstrated.

Our enterprise fleet management customers may also not renew for reasons entirely out of their control, such as the dissolution of their businesses. Enterprise customers may also decrease the number of vehicles covered by subscription contracts if their fleet sizes decrease.

Our subscription contracts generally do not provide our customers with an early termination option without penalty. However, if customers do not honor subscriptions for the full term, our remedies may be limited to re-negotiation of contract terms or legal recourse through the courts, which may not be successful or cost-effective, and we may not be able to recoup all of our costs.

A significant loss of or failure to renew our subscription-based contracts could materially and adversely affect our business, results of operations and financial condition.

Our inability to adapt to rapid technological change in our industry could impair our ability to remain competitive and result in a decline in market acceptance of our products.

The industry in which we compete is characterized by rapid technological change, frequent introductions of new products and evolving industry standards. In addition to the mobile asset management industry, we are subject to changes in the automotive, mobile handset, Global Positioning System (“GPS”) navigation device, information technology, telecommunications and enterprise software industries. As the technology used in each of these industries evolves, we will face new integration and competition challenges. For example, as truck and automobile manufacturers continue to develop in-vehicle technology, GPS-based tracking solutions may become standard equipment and result in new sources of competition. If we are unable to adapt to rapid technological change, it could impair our ability to remain competitive and result in a decline in market acceptance of our products.

The development of new or improved products, systems or technologies that compete with our products may render our products less competitive and we may not be able to enhance our technology in a timely manner. In addition to the competition resulting from new products, systems or technologies, our future product enhancements may not adequately meet the requirements of the developing marketplace, and may not achieve the broad market acceptance necessary to generate significant revenues. Any of the foregoing could materially and adversely affect our business, results of operations and financial condition.

Industry consolidation may result in increased competition, which could result in a loss of customers and/or a reduction in revenue.

Some of our competitors have made, or may make, acquisitions or enter into partnerships or other strategic relationships to offer more comprehensive services or achieve greater economies of scale. In addition, new entrants not currently considered competitors may enter our market through acquisitions, partnerships or strategic relationships. We expect these trends to continue as companies attempt to strengthen or maintain their market positions. Many potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. Industry consolidation may result in competitors with more compelling service offerings or greater pricing flexibility than we have, or business practices that make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a loss of subscribers and/or a reduction in revenue.

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The loss of one or more of our key personnel, or our failure to attract, train and retain other highly qualified personnel, could prevent us from executing our growth plan.

We depend on the continued service and performance of our key personnel. The loss of one or more key members of our senior management team could materially and adversely affect our operations. In addition, the loss of other key sales, product development or technology personnel could disrupt our operations and have a materially adverse effect on our ability to grow our business.

To execute our growth plan, we must continue to attract and retain highly qualified personnel. Competition for these employees is intense, and we may not be successful in attracting and retaining qualified personnel. We may experience difficulty in hiring and retaining highly skilled employees with appropriate qualifications. Our failure to attract and train new personnel, or our failure to retain, focus and motivate our current personnel, could materially and adversely affect our business, results of operations and financial condition.

We may expand by acquiring or investing in other companies, which may divert our management’s attention, result in dilution to our shareholders and consume resources that are necessary to sustain our business.

We may acquire complementary products, services, technologies or businesses. We also may enter into relationships with other businesses to expand our portfolio of solutions or to expand our ability to provide our solutions in foreign jurisdictions. Negotiating these transactions can be time-consuming, difficult and expensive, and our ability to complete these transactions may be subject to conditions or approvals that are beyond our control, including anti-takeover and antitrust laws in various jurisdictions. We may seek to acquire other companies or businesses using our shares as consideration. Under the South African Companies Act, No.71 of 2008 (the “Companies Act”), we are prohibited from issuing shares representing 30% or more of our outstanding equity in connection with an acquisition without shareholder approval by way of special resolution. In terms of Johannesburg Stock Exchange (“JSE”) listings requirements, an acquisition or disposal constituting 30% or more of the market capitalization of the acquiring entity, will require shareholder approval. Consequently, these transactions, even if undertaken and announced, may not close.

An acquisition, investment or new business relationship may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties assimilating or integrating the businesses, technologies, products, personnel or operations of acquired companies, particularly if the key personnel of the acquired company choose not to work for us, the acquired company’s technology is not easily compatible with ours or we have difficulty retaining the customers of any acquired business due to changes in management or otherwise. Acquisitions may also disrupt our business, divert our resources and require significant management attention that would otherwise be available for the development of our business. Moreover, the anticipated benefits of any acquisition, investment or business relationship may not be realized or we may be exposed to unknown liabilities, including litigation against the companies we may acquire. For one or more of those transactions, we may:

• issue additional equity securities that would dilute our shareholders;

• use cash that we may need in the future to operate our business;

• incur debt on terms unfavorable to us or that we are unable to repay or that may place burdensome restrictions on our operations;

• incur large charges or substantial liabilities; or

• become subject to adverse tax consequences, or substantial depreciation or amortization, deferred compensation or other acquisition-related accounting charges.

Any of these risks could materially and adversely affect our business, results of operations and financial condition.

We may not be able to increase sales of our solutions, which could materially and adversely affect our ability to grow our business and increase revenue.

We intend to increase sales of our solutions by increasing penetration in our existing markets and by entering new markets that represent a large potential source of demand for these solutions. Our success in increasing sales may be tied to a wide variety of factors, including demand for our services, price and service competition, our relationships with third party distributors and dealers, the rate of new vehicle sales, the oil price, general economic conditions and, in the case of our safety and security solutions, the perceived threat of vehicle theft and discounts offered by insurers.

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Some car and truck manufacturers have begun installing factory fitted substitute products and services, such as certain GPS-based products, in new vehicles prior to their initial sale, which may preclude us from increasing sales to subscribers purchasing such vehicles. Our inability to market and sell our solutions to new customers, at or prior to the initial sale by the manufacturer, could materially and adversely affect our ability to grow our business and increase revenue.

In the Middle East and Australasia segment and the Americas segment, we generate significant revenues from the oil and gas sector, and we may not be able to diversify and/or successfully enter into new verticals, which could materially and adversely affect our ability to grow our business and increase revenue.

We depend on certain key suppliers and vendors to manufacture our hardware, and an interruption in the supply of our hardware could impair our production capacity, which would impact our ability to supply hardware to customers.

We currently purchase key GSM (Global System for Mobile communications) module components of our hardware from two key suppliers. These modules, as well as other electronic components used in the manufacture of our products, have extended lead times on orders. We do not have volume commitments to or from these suppliers, and therefore cannot require them to deliver components to us. An interruption in the supply of components from suppliers or a failure to identify the need to re-order components in a timely manner would significantly impact our operations and require us to identify and integrate our manufacturing and supply logistics with an alternate supplier, or use a substitute component, which could materially and adversely affect our business, results of operations and financial condition.

In addition, we currently depend principally on two vendors in South Africa to manufacture our hardware on a contract basis. Each of these contracts is terminable on 12 months’ written notice. We have no financial control over, and limited operational influence on these suppliers and the conduct of their businesses. These suppliers could negatively impact our business by, among other things, extending delivery times, raising prices and limiting supply due to their own shortages and business requirements. Our two contract manufacturers produce different products for us and production capacities at these facilities are not interchangeable in the short term. If the facilities of one of our contract manufacturers were to suffer a major casualty event, it could take as much as three to five months, or longer, to replace production capacity. An extended interruption in the supply of hardware from our contract manufacturers could materially and adversely affect our production capacity and hence our ability to fulfill sales orders.

We depend on our network of dealers and distributors to sell our solutions and adverse changes in our relationships with significant dealers and distributors could cause a decline in sales.

We currently distribute our products to small fleet operators and consumers both directly and through various distribution channels, including automobile dealers, aftermarket automotive parts and service suppliers, and automobile insurers and retailers, which we collectively refer to as “distributors”.

We currently distribute our products to enterprise fleet customers, including large enterprise fleets and small fleet operators, both directly and through third parties, who are assigned specific geographic territories in which they can sell, which we refer to as “dealers.”

We are dependent on our dealers and distributors, who account for a substantial percentage of our total sales, and sales generated by certain dealers and distributors individually represent a meaningful percentage of our revenue. The terms of our agreements with our dealers do not usually include minimum purchase obligations, are specific to a geographic territory and are primarily non-exclusive. Our dealer agreements generally have a fixed initial term, after which they may be renewed or continue indefinitely if not terminated. This is subject to the right of either party to terminate on specified notice, generally ranging from 90 days to one year, or for breach. Similarly, our distributor agreements do not include minimum purchase obligations and consist principally of a commission agreement applicable to sales generated by the distributor. If our relationships with our dealers and distributors deteriorate, or if a dealer or distributor, or group of related dealers and distributors, accounting for a material portion of our sales elects not to do business with us in the future, our sales could decline materially, which could materially and adversely affect our business, results of operations and financial condition.

We depend on our cellular network providers for the transmission of data from installed in-vehicle devices to our data centers and we would incur significant costs if the services of these network providers became unavailable to us.

We contract with cellular network providers in each of our markets to provide cellular network services. These cellular networks transmit data from our customers’ in-vehicle devices to our data centers, where it is managed for the benefit of our customers. Certain of our installed in-vehicle devices contain a SIM card that is compatible with a specific cellular network provider. If a cellular network provider in one of our markets were to refuse to continue contracting with us for any

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reason, or were to go out of business, we could incur significant costs related to the replacement of SIM cards for our customers and could suffer damage to our reputation and customer relationships. Any of the foregoing could materially and adversely affect our business, results of operations and financial condition.

The markets in which we participate are highly fragmented and competitive, with relatively low barriers to entry, and such competition could result in reduced operating margins, increased sales and marketing expenses, and the loss of market share.

The market for our solutions is highly fragmented, consisting of a significant number of vendors, with relatively low barriers to entry. Competition in our market is based primarily on:

• functionality and reliability;

• total cost of ownership;

• breadth and depth of application functionality for fleet deployments;

• product performance;

• interoperability;

• brand and reputation;

• customer service;

• distribution channels, including a global footprint and ability to service multinationals;

• regional geographic expertise, including localized language support, support for applicable government regulations and the ability to comply with local Internet and data privacy regulations;

• size of customer base and reference accounts within key industry segments;

• ability to deliver ongoing value and return on investment;

• ease of deployment and use;

• relevant industry domain expertise and functionality; and

• the financial resources of the vendor.

We compete with a number of companies in each of the geographic markets in which we operate. Such competition could result in reduced operating margins, increased sales and marketing expenses and the loss of market share, any of which would harm our operating results. We expect competition to intensify in the future with the introduction of new technologies, the use of mobile devices and new market entrants from outside the telematics industry, such as enterprise software vendors.

The market for safety and security solutions is highly competitive. We compete in the safety and security solutions market primarily on the basis of the technological innovation, value-added services offered, brand recognition, rate of successful recoveries of mobile assets, and quality and price of our products and services. Our most competitive market is the vehicle and mobile asset tracking and recovery solutions market, due to the existence of a wide variety of competing products and services, and alternative technologies that offer various levels of protection and tracking capabilities. Some of these competing products and services, such as certain GPS-based products, are installed in new cars by vehicle manufacturers prior to their initial sale, which may make it more difficult to compete for such subscribers. Furthermore, providers of competing services or products may extend their offerings to the locations in which we operate, or new competitors may enter the safety and security solutions market.

We could be exposed to product liability claims, which could result in significant damage to our reputation and material economic loss.

Our products, and the batteries that many of them contain, could malfunction and cause damage to our customers’ property. In particular, the rechargeable batteries in our in-vehicle devices may be prone to leakage due to environmental factors, such as extreme weather conditions or overuse. Leaks in these batteries could damage our customers’ in-vehicle devices and vehicles. Our safety and security solutions may be disabled or prove to be ineffective as a result of techniques employed by car thieves, or the discovery of technological weaknesses by such persons. If there were a systematic failure of any of our products, we could suffer significant damage to our reputation, and any insurance we maintain might not be sufficient to prevent us from suffering a material economic loss.

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Failure of businesses to adopt fleet management solutions could reduce the demand for our solutions.

We derive, and expect to continue to derive, substantial revenue from the sale of subscriptions for fleet management solutions to commercial customers. Widespread acceptance and use of fleet management solutions is critical to our future revenue growth and success. If the market for fleet management solutions fails to grow, or grows more slowly than we currently anticipate, demand for our solutions would be negatively affected.

The market for fleet management solutions is subject to changing customer demand and trends in preferences. Some of the potential factors that could affect interest in and demand for fleet management solutions include:

• the effectiveness and reliability of solutions;

• fluctuations in fuel and vehicle maintenance costs, which are significant drivers of customer demand for fleet management solutions;

• assumptions regarding general mobile workforce inefficiency and the extent to which efficiency can be improved through fleet management solutions;

• the level of governmental and regulatory burden on the fields of transportation and occupational health and safety;

• the price, performance, features and availability of products and services that compete with ours;

• our ability to maintain high levels of customer satisfaction; and

• the rate of acceptance of web-based solutions generally.

Failure of businesses to adopt fleet management solutions could materially and adversely affect our business, results of operations and financial condition.

A decline in vehicle sales and/or an increase in the sales of factory-fitted GPS solutions in new vehiclesin our markets could result in reduced demand for our solutions, which could materially and adversely affect our revenue.

A reduction in sales of new vehicles and/or an increase in factory-fitted GPS solutions in new vehicles could reduce our addressable market for solutions. New vehicle sales may decline for various reasons, including adverse changes in the general economic environment, a reduction in our customers’ discretionary spending, or an increase in new vehicle tariffs, taxes or gas prices. A decline in vehicle production levels or labor disputes affecting the automobile industry in the markets where we operate, may also impact the volume of new vehicle sales. A decline in sales of new vehicles in the markets in which we provide our solutions would result in reduced demand for such products and services, which could materially and adversely affect our business, results of operations and financial condition.

Demand for our fleet management solutions decreases when prices for crude oil and natural gas decrease, which could materially and adversely affect our revenue.

Demand for our fleet management solutions can fluctuate with the prices for crude oil and natural gas, which impact the attractiveness of our services and also directly affects our customers in the oil and gas industry, from whom we derive a significant portion of our revenues. Subscription revenues from oil and gas customers in fiscal year 2018 represented 23.1% of our total subscription revenue. Generally, lower oil and gas prices reduce the return on investment for many of our customers. Gains in fuel efficiency may lead to a relative decrease in the return on investment of our solutions perceived by our customers. The oil and gas industry is complex, and numerous geopolitical, economic, environmental and other factors affect pricing. Expectations for future crude oil and natural gas prices may affect our customers’ spending habits. Prolonged or substantial declines in crude oil and/or natural gas prices, or the perception that such prices will decrease in the future, could materially and adversely affect our business, results of operations and financial condition.

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Changes in practices of insurance companies in the markets in which we provide our solutions could materially and adversely affect demand for products and services.

We depend in part on the practices of insurance companies in some of our markets to support demand for certain of our products and services. For example, in South Africa, which is currently the largest market for our products and services, insurance companies either mandate the installation of tracking devices as a prerequisite for providing insurance coverage to owners of certain vehicles, or provide discounts on insurance premiums to encourage vehicle owners to subscribe to vehicle tracking and mobile asset recovery solutions such as ours. We benefit from insurance companies’ continued practice in the South African and certain other markets:

• accepting mobile asset location technologies such as ours as a preferred security product;

• providing premium discounts for using location and recovery products and services such as ours; and

• mandating the use of our products and services, or similar products and services, for certain vehicles.

If any of these policies or practices change, revenues from the sale of our products and services could decline, which would materially and adversely affect our business, results of operations and financial condition.

We face many risks associated with our existing and potential new international operations, which could prevent us from successfully expanding into new geographic markets, or operating successfully in existing geographic markets.

We are a global company with substantial assets located in a number of countries. We provide our services in approximately 120 countries with 16 offices in nine countries. In some international markets, customer preferences and buying behavior may be different, and we may use business or pricing models that are different from our traditional subscription model to provide fleet management solutions to customers in those markets, or we may be unsuccessful in implementing the appropriate business model. Our revenue from new foreign markets may not exceed the costs of establishing, marketing, and maintaining our international offerings.

In addition, expanding international operations into new territories may subject us to risks with which we have limited experience. These risks include:

• lack of familiarity with local markets, including legal and regulatory requirements;

• difficulties in finding and maintaining, or potentially replacing, local dealers and distributors;

• competing with established local competitors;

• laws favoring local competitors;

• the cost and burden of monitoring and complying with legal and regulatory requirements in new territories, and/or changes to existing legal and regulatory requirements, including those relating to the Internet and data privacy and security;

• fluctuations in currency exchange rates or restrictions on currency exchange;

• potentially adverse tax consequences, including the complexities of transfer pricing, value added or other tax systems, double taxation and restrictions and/or taxes on the repatriation of earnings;

• dependence on third parties, including some commercial partners with whom we may not have extensive experience;

• increased financial accounting and reporting burdens and complexities;

• political, social, and economic instability, terrorist attacks, and security concerns in general;

• reduced or varied protection for intellectual property rights in some countries; and

• increased exposure and vulnerability to claims that we have infringed on the intellectual property of third parties.

Operating in international markets requires significant management attention and financial resources. The investment and additional resources required to establish operations and manage growth in additional territories may not produce desired levels of revenue or profitability.

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Our European regional sales office is headquartered in the United Kingdom (“U.K.”). The U.K.'s vote to leave the European Union could adversely affect our European business.

The U.K.’s referendum and the consequential decision to leave the European Union (“Brexit”), could negatively impact our business.

Article 50 of the Treaty of Lisbon was triggered during March 2017, and the U.K. was granted a period of up to two years to conclude the negotiations of its exit from the European Union. Until the Brexit negotiation process is completed, it is difficult to anticipate the potential impact on our operations in the European region. The cost of servicing Europe from the U.K. may no longer be a viable option, and we may need to consider alternative options. The costs of having an U.K.-headquartered business may increase as a result of the potential weakening of the British Pound. Changes to existing trade agreements between Europe and the U.K. could lead to increased customs duties, tariffs and withholding taxes for the sale of our hardware and services from the U.K. into Europe, and may result in us being less profitable. As the process of Brexit evolves, we will continue to assess its impact on us.

Security or privacy breaches in our electronic transactions or data may expose us to additional liability or result in a loss of customers, either of which events could harm our business.

Any inability on our part to protect the information security of our platforms or the privacy of confidential information could have a material adverse effect on our profitability by exposing us to additional liability, increasing our expenses relating to resolution of these breaches and deterring users from using our products and services. Our systems and operations are vulnerable to damage or interruption from human error, computer viruses, distributed denial of service attacks, spurious spam attacks, intentional acts of vandalism and similar events. We cannot assure you that our current security methods and measures will effectively counter evolving security risks, prevent future slowdowns or disruptions, protect against extraordinary attacks while addressing the security and privacy requirements of existing and future users. Any system failures, slowdowns or disruptions will likely result in unanticipated disruptions in service to our users, decreased levels of user satisfaction and significant negative effects on our reputation, which could materially and adversely affect our business.

We utilize third-party encryption and authentication technology providers to secure transmission of confidential information over the Internet, including private customer data such as bank account numbers. Advances in technological capabilities, new discoveries in the field of cryptography as well as other events or developments, could result in a compromise or breach of the technology we use to protect sensitive transaction data, including the technology provided by third-parties. If any such compromise of our data security, or the data security of our customers, were to occur, it could result in misappropriation of proprietary information or interruptions in operations, and have an adverse impact on our reputation or the reputation of our customers. If we are unable to detect and prevent unauthorized access to or use of confidential information including bank account numbers, our business, results of operations and financial condition could be materially and adversely affected.

Our operating results may be harmed if we are required to collect sales, use, services or other related taxes for our solutions in jurisdictions where we have not historically done so.

We do not believe that we are ordinarily required to collect sales, use, services or other similar taxes from our customers in certain jurisdictions. However, one or more countries or states may seek to impose sales, use, services, or other tax collection obligations on us, including for past sales. For example, in March 2018 the European Commission made two proposals for directives introducing special tax rules in the European Union for the digital economy which, if implemented, would require many European Union and non-European Union companies to pay taxes on their European Union revenues from digital services.  These directives have not been implemented and are not supported by all European Union countries, therefore it is unclear whether they will become a part of European Union law (and if so, in what form).  Individual European Union countries may enact similar measures on a unilateral basis if the European Commission directives fail to pass, and certain European Union countries have announced plans to do so. A successful assertion by one or more jurisdictions that we should collect sales or other taxes on the sale of our solutions, could result in substantial tax liabilities, including interest and penalty charges for past sales and decrease our ability to compete for future sales. We review applicable rules and regulations periodically and, when we believe sales and use taxes apply in a particular jurisdiction, we voluntarily engage tax authorities in order to determine how to comply with their rules and regulations. We cannot assure you that we will not be subject to sales and use taxes or related penalties for past sales in jurisdictions where we presently believe sales and use taxes are not due. Furthermore, we cannot be certain that we have recorded sufficient provisions on our consolidated financial statements to cover taxes.

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Although our client contracts ordinarily provide that our clients must pay all applicable sales and similar taxes, they may be reluctant to pay back taxes, and may refuse responsibility for interest or penalties associated with those taxes. If we are unable to collect and pay back taxes and the associated interest and penalties, we will have incurred unplanned expenses that may be substantial.

The nature of our business results in our services being provided within multiple jurisdictions, including certain jurisdictions in which we may not have anticipated our services being provided or with which we may not have had prior dealings. Accordingly, there may be unforeseen obligations related to certain jurisdictions that were not identified or not adequately provided for in our contracts. These obligations could materially and adversely affect our financial position.

An actual or perceived reduction in vehicle theft and crime rates, may adversely impact demand for certain of our solutions, which could result in a loss of customers and a decline in growth.

Demand for our vehicle tracking and asset recovery solutions is influenced by prevailing or expected vehicle theft rates. Vehicle theft rates may decline as a result of various factors, such as the availability of improved security systems, implementation of improved or more effective law enforcement measures, and improved economic or political conditions in markets that have high theft rates. If vehicle theft rates in our markets decline significantly, or if vehicle owners or insurance companies believe that vehicle theft rates have declined or are expected to decline, demand for some of our products and services may decline, which could result in a loss of customers and a decline in growth.

We are subject to U.S. and other anti-corruption laws, trade controls, economic sanctions and similar laws and regulations, including those in the jurisdictions where we operate. Our failure to comply with these laws and regulations could subject us to civil, criminal and administrative penalties and harm our reputation.

Doing business on a worldwide basis requires us to comply with the laws and regulations of various foreign jurisdictions. These laws and regulations place restrictions on our operations, trade practices, partners and investment decisions. In particular, our operations are subject to U.S. and foreign anti-corruption and trade control laws and regulations, such as the Foreign Corrupt Practices Act (the “FCPA”), various export controls and economic sanctions programs, including those administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”), as well as Australian and European sanctions. We monitor compliance in accordance with the ten principles as set out in the United Nations Global Compact Principles, the Organisation for Economic Co-operation and Development recommendations relating to corruption, and the International Labor Organization Protocol in terms of certain of the items to be monitored. As a result of doing business in foreign countries and with foreign partners, we are exposed to a heightened risk of violating anti-corruption and trade control laws as well as sanctions regulations.

The FCPA prohibits us from providing anything of value to foreign officials for the purposes of obtaining or retaining business, or securing any improper business advantage. It also requires us to keep books and records that accurately and fairly reflect our transactions. As part of our business, we may deal with state-owned business enterprises, the employees of which are considered foreign officials for purposes of the FCPA. In addition, the United Kingdom Bribery Act (the “Bribery Act”) which came into effect on July 1, 2011, extends beyond bribery of foreign public officials and also applies to transactions with individuals not employed by a government. The provisions of the Bribery Act are also more onerous than the FCPA in a number of other respects, including jurisdiction, non-exemption of facilitation payments and penalties. Some of the international locations in which we operate, lack a developed legal system and have higher than normal levels of corruption.

Economic sanctions programs restrict our business dealings with certain sanctioned countries, persons and entities. In addition, because we act through dealers and distributors, we face the risk that our dealers, distributors and customers might further distribute our products to a sanctioned person or entity, or an ultimate end-user in a sanctioned country, which might subject us to an investigation concerning compliance with OFAC or other sanctions regulations.

Violations of anti-corruption laws, trade control laws and sanctions regulations are punishable by civil penalties, including fines, denial of export privileges, injunctions, asset seizures, debarment from government contracts and revocations or restrictions of licenses, as well as criminal fines and imprisonment. We have developed policies and procedures as part of a company-wide compliance program that is designed to assist our compliance with applicable U.S. and international anti-corruption and trade control laws and regulations, including the FCPA, the Bribery Act and trade controls and sanctions programs administered by OFAC, and provide regular training to our employees to comply with these laws and regulations. However, there can be no assurance that all of our employees, consultants, partners, agents or other associated persons will not take actions in violation of our policies and these laws and regulations, or that our policies and procedures will effectively prevent us from violating these regulations in every transaction in which we may engage, or provide a defense to any alleged violation. In particular, we may be held liable for the actions that our local, strategic or joint venture partners take inside or

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outside of the United States, even though our partners may not be subject to these laws. Such a violation, even if our policies prohibit it, could materially and adversely affect our reputation, business, results of operations and financial condition. Our continued international expansion, including in developing countries, and our development of new partnerships and joint venture relationships worldwide, could increase the risk of FCPA, OFAC or Bribery Act violations in the future.

Operating in emerging markets subjects us to greater risks than those we would face if we only operated in more developed markets, which could increase our operating costs and inhibit our growth plan.

Emerging markets, including Africa, Eastern Europe, the Middle East, Asia and South America, are subject to greater risks than more developed markets. The Middle East region is experiencing ongoing instability, which has affected and may continue to affect our growth in the region. Although there continue to be positive developments in Brazil, such as improved investor confidence, continued positive growth rates, due in part to rate cuts and policy reform supporting growth, the Brazilian market continues to experience political and economic issues such as high unemployment rates, high inflation rates and corruption allegations, which affect our growth in the region and our ability to introduce new services to the region. South Africa is experiencing political and economic issues which could affect our ability to maintain our existing customer base as well as our ability to grow our existing customer base. The political, economic and market conditions in many emerging markets present risks that could make it more difficult to operate our business successfully. These risks include:

• political and economic instability, including higher rates of inflation and currency fluctuations;

• higher levels of corruption, including bribery of public officials;

• loss due to civil strife, acts of war or terrorism, guerrilla activities and insurrection;

• a lack of well-developed legal systems which could make it difficult for us to enforce our intellectual property and contractual rights;

• logistical and communications challenges;

• potential adverse changes in laws and regulatory practices, including import and export license requirements and restrictions, tariffs, legal structures and tax laws;

• difficulties in staffing and managing operations and ensuring the safety of our employees;

• restrictions on the right to convert or repatriate currency or export assets;

• greater risk of uncollectable accounts and longer collection cycles; and

• introduction or changes to indigenization and empowerment programs.

Laws and regulations relating to the Internet and data privacy in the markets in which we operate are complex and continuously evolving, and compliance costs are high. As these laws and regulations continue to evolve, we may be required to increase our compliance-related expenditures, limit the manner in which we collect information, the types of information that we collect, or the solutions we offer, which may impede our ability to provide our solutions or reduce our profit margins in specific geographic regions.

Various laws and regulations associated with the Internet and data privacy are complex and increase our cost of doing business. Furthermore, these laws and regulations expose us to fines and penalties if we fail to comply with them. Although we have implemented procedures designed to comply with international practices and have recently established additional group policies, charters and procedures to assist in maintaining data privacy and data security, we have not undertaken a formal legal review to determine our compliance with data privacy and data security laws in jurisdictions outside of the U.K., the European Union and South Africa. Furthermore, there can be no assurance that our employees, contractors and agents will comply with the policies and procedures we establish regarding data privacy and data security, particularly as we expand our operations through organic growth and acquisitions. While our employees may violate our policies and procedures, the Company remains responsible for, and obligated to implement, policies and procedures and enter into contracts with service providers that require appropriate protection. Any violations could subject us to civil or criminal penalties, including substantial fines or prohibitions on our ability to offer our products in one or more countries, and could also materially damage our reputation, our brand, our international expansion efforts, our business, results of operations and financial condition.

The transmission of data over the Internet and cellular networks is a critical component of our software-as-a-service (“SaaS”) business model. Additionally, as cloud computing continues to evolve, increased regulation by federal, state or foreign agencies becomes more likely, particularly in the areas of data privacy and data security. In addition, taxation of

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services provided over the Internet or other charges imposed by government agencies, or by private organizations for accessing the Internet, may be imposed. Any regulation imposing greater fees for Internet use or restricting information exchange over the Internet, could result in a decline in the use of the Internet and the viability of Internet-based services, which could harm our business.

Our solutions and products enable us to collect, manage and store a wide range of data related to fleet management such as mobile asset location and fuel usage, speed and mileage. We obtain our data from a variety of sources, including our customers and third-party providers. The United States and various state governments have adopted or proposed limitations on the collection, distribution and use of personal data, as well as requirements that must be followed if a breach of such personal data occurs. The European Union and the United Kingdom have adopted legislation (including directives, national laws and regulations) that increase or change the requirements governing data collection, use, storage and disclosure of personal data in these jurisdictions. The current European Union legislation related to data protection is the General Data Protection Regulation (“GDPR”), which came into effect on May 25, 2018 and supersedes the Data Protection Directive 95/46/EC. We have updated and will continue to evaluate our group data protection and security policies, charters, and procedures to assist in maintaining data privacy and data security in line with international practices.

The Protection of Personal Information Act, No. 4 of 2013 (the “POPI Act”) was promulgated into law in November 2013 in South Africa. Certain sections of the POPI Act, came into effect on April 11, 2014. The remaining sections of the POPI Act will commence on a date to be determined by the South African President, the general assumption being that the remaining sections will commence before the end of the 2018 calendar year. The POPI Act allows for a one year transition period from its commencement for all persons to comply with its requirements. A failure to comply with the POPI Act may result in a fine not exceeding R10 million and/or imprisonment of up to 10 years, depending on the severity of the contravention.

We may also be subject to costly notification and remediation requirements if we, or a third party, determines that we have been the subject of a data breach involving personal data of individuals. Data breach notification regulations vary among the countries where we conduct business, and also vary among the states of the United States, and any breach of personal data could be subject to any number of these requirements.

As noted above, we have sought to implement internationally recognized practices regarding data privacy and data security. If our privacy or data security measures fail to comply, or are perceived to fail to comply, with current or future laws and regulations, we may be subject to litigation, regulatory investigations or other liabilities. Moreover, if future laws and regulations limit our customers’ ability to use and share this data or our ability to store, process and share data with our customers over the Internet, demand for our solutions could decrease and our costs could increase. We might also have to limit the manner in which we collect data, the types of personal data that we collect, or the solutions we offer. Any of these risks would materially and adversely affect our business, results of operations and financial condition.

A governmental challenge to our transfer pricing policies or practices could impose significant costs on us.

Transfer pricing policies are a significant component of the management of our operations across international boundaries. The global transfer pricing environment, including with respect to operational and reporting requirements, is continuously evolving and subject to input from multiple sources and jurisdictions. These complexities require management to closely monitor new developments.

Many countries routinely examine transfer pricing policies of taxpayers subject to their jurisdiction, and authorities challenge transfer pricing policies aggressively where there is potential non-compliance and impose significant interest charges and penalties where non-compliance is determined. Although the documentation of and support for our transfer pricing policies has not been the subject of a governmental proceeding beyond examination to date, there can be no assurance that a governmental authority will not challenge these policies more aggressively in the future or, if challenged, that we will prevail. We could suffer significant costs related to one or more challenges to our transfer pricing.

Although South Africa signed the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country (“CbC”) Reports on January 27, 2016, and published its CbC Reporting Regulations on December 23, 2016 (“CbC Regulations”), the Group is not under any obligation to file a CbC Report as its turnover is below the required threshold. In terms of the CbC Regulations, the ultimate parent entity of Multinational Enterprise Groups (“MNE Group”) with total consolidated group revenue of at least R10 billion (or €750 million should the MNE Group be headquartered outside of South Africa), must submit a CbC Report to the South African Revenue Service (“SARS”). 

In addition to the CbC Regulations, any entity which has entered into cross-border related party transactions, which exceed or are reasonably expected to exceed R100 million per year in the aggregate, must submit a “Master File” and “Local

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File” to SARS. This applies to fiscal years commencing on or after October 1, 2016, with the deadline for submission being 12 months after the company’s fiscal year end. MiX Telematics International meets this threshold and therefore is required to submit Master File and Local File returns in respect of fiscal year 2018 by the deadline of March 31, 2019. MiX Telematics International will comply with this requirement.

Reduction in regulation in certain markets may adversely impact demand for certain of our solutions by reducing the necessity for, or desirability of, our solutions.

Regulatory compliance and reporting is driven by legislation and requirements, which are often subject to change, from regulatory authorities in nearly every jurisdiction globally. For example, in the United States, fleet operators can face numerous complex regulatory requirements, including mandatory Compliance, Safety and Accountability driver safety scoring, hours of service, compliance and fuel tax reporting. The reduction in regulation in certain markets may adversely impact demand for certain of our solutions, which could materially and adversely affect our business, financial condition and results of operations.

Failure to correctly implement a new Enterprise Resource Planning (“ERP”), Customer Relationship Management System (“CRM”) and billing system could have a material and adverse effect on our operations.

We are currently in the process of implementing a new fully-integrated ERP, CRM and billing system, following the pilot implementation during the fiscal year under review. The overall aim of these new systems is to enable management to achieve enhanced quality, reliability and timeliness of information; improve integration and visibility of information stemming from different management functions and countries; and optimize global management of corporate processes.

The adoption of a new ERP, CRM and billing system, which will replace the various accounting systems within our individual operations, poses several challenges relating to, among other things, migration of data, potential instability of the new system, communication of new rules and procedures and the training of personnel. We are aware of the potential risks associated with a global system implementation and intend to adopt mitigation plans and contingency plans, in order to ensure business continuity, this includes mitigating issues noted during the pilot implementation before embarking on the full roll-out. However, there can be no assurance that a new ERP, CRM and billing system will be successfully implemented and failure to do so could have a material adverse effect on our operations and ability to execute on our growth strategy.

If the accounting estimates we make, and the assumptions on which we rely, in preparing our consolidated financial statements prove inaccurate, our actual results may be adversely affected.

Our consolidated financial statements have been prepared in accordance with IFRS. The preparation of these consolidated financial statements requires us to make estimates and judgements about, among other things, warranty and maintenance provisions, current and deferred income taxes, impairment estimates, useful lives of customer relationships and product development costs, capitalization of development costs, the level of receivable allowances and the allocation between in-vehicle devices and inventory. These estimates and judgements affect the reported amounts of our assets, liabilities, revenues and expenses, the amounts of charges accrued by us, and related disclosure of contingent liabilities. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances and at the time they are made. If our estimates or the assumptions underlying them are not correct, actual results may differ materially from our estimates and we may need to, among other things, accrue additional charges that could adversely affect our results of operations, which in turn could adversely affect our stock price. In addition, new accounting standards, amendments and interpretations of accounting standards have occurred and may occur in the future that could adversely affect our reported financial results.

We may be exposed to risks related to litigation and administrative proceedings that could materially and adversely affect our business, results of operations and financial condition.

Our business may expose us to litigation and administrative proceedings relating to labor, regulatory, tax proceedings, governmental investigations, tort claims, contractual disputes and criminal prosecution, among other matters, that could materially and adversely affect our business, results of operations, and financial condition. In the context of these proceedings, we may not only be required to pay fines or monetary damages but also be subject to sanctions or injunctions affecting our ability to continue our operations. While we may contest these matters vigorously and make insurance claims when appropriate, litigation and other proceedings are inherently costly and unpredictable, making it difficult to accurately estimate the outcome of actual or potential litigation or proceedings. Although we will establish provisions in accordance with the requirements of IFRS, the amounts that we reserve could vary significantly from any amounts we actually pay due to the inherent uncertainties in the estimation process. In addition, litigation and administrative proceedings can involve significant

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management time and attention and be expensive, regardless of outcome. During the course of any litigation and administrative proceedings, there may be announcements of the results of hearings and motions and other interim developments. If securities analysts or investors regard these announcements as negative, the trading price of our ordinary shares and ADSs may decline. For more information, see “Item 4. Information on the Company - 4B. Business Overview - Legal Proceedings.”

Risks Relating to Intellectual Property

We have not traditionally relied on patents to protect our intellectual property, and we rely on trade secrecy laws, confidentiality agreements, confidentiality procedures and contractual restrictions to establish and protect our intellectual property rights, which provide only limited protection and may subject us to litigation.

Our future success and competitive position depend in part on our ability to protect our intellectual property and proprietary technologies. We rely primarily on trade secrecy laws, confidentiality agreements, confidentiality procedures and contractual restrictions to establish and protect our intellectual property rights, all of which provide only limited protection and may not currently, or in the future, provide us with a competitive advantage. Our confidentiality agreements with our employees, licensees, independent contractors and other advisers may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, others may independently discover our trade secrets or develop similar technologies and processes, and, in either event we would not be able to assert trade secret rights.

We also rely, to a limited extent, on patent, trademark and copyright law. A patent covering certain aspects of our Beam-e product was issued in South Africa during fiscal year 2014 and a patent covering a method for driver verification was issued during fiscal year 2015. A further patent application for an asset tracking system and method remains pending in Brazil. We have traditionally not sought patent protection over our intellectual property. As a result, we may not be able to successfully defend our intellectual property from third-party infringement.

We cannot assure you that any future trademark registrations will be issued for pending or future applications, or that any registered trademarks will be enforceable, or provide adequate protection of our proprietary rights, or that any such trademarks will not be challenged, invalidated, or circumvented.

Effective patent, trademark, copyright, and trade secret protection may not be available in every country in which our solutions are available, or where we have employees or independent contractors. In addition, the legal standards relating to the validity, enforceability, and scope of protection of intellectual property rights in Internet-related industries are uncertain and continue to evolve. The steps we have taken, and will take, may not prevent unauthorized use, reverse engineering, or misappropriation of our technologies and we may not be able to detect any of the foregoing. Any of the foregoing events could materially and adversely affect our business, results of operations and financial condition.

An assertion by a third party that we are infringing on its intellectual property rights could subject us to costly and time-consuming litigation or expensive licenses.

The fleet management, mobile asset management and technology industries are characterized by the existence of a large number of patents, copyrights, trademarks and trade secrets and by frequent litigation based on allegations of infringement or other violations of intellectual property rights. Much of this litigation involves patent-holding companies or other adverse patent owners who have no relevant product revenues of their own, and against whom our own limited patent portfolio may provide little or no deterrence. We have been subject to such claims in the past and may face additional claims in the future.

We have not historically conducted comprehensive art searches to determine whether our solutions infringe the patent rights of third parties in our current markets, or those markets we may enter in the future. Third parties may assert that we are infringing on patents, of which we are currently unaware and that would have been disclosed by prior art searches if they had been conducted. Our status as a public company in the United States has raised our visibility and may invite holders of patents who have not previously sought to enforce them against us, to bring or threaten claims for infringement or seek to negotiate royalty or other payments from us. The fact that we have relatively few patents associated with our intellectual property means that we may not be able to successfully defend our intellectual property from third-party infringement. Any of the foregoing could materially and adversely affect our business, results of operations and financial condition.

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We cannot assure you that we will prevail in any future intellectual property infringement litigation given the complex technical issues and inherent uncertainties in such litigation. Defending such claims, regardless of their merit, could be time-consuming and distracting to management, result in costly litigation or settlement, cause development delays, or require us to enter into royalty or licensing agreements. In addition, we are obligated to indemnify some of our customers and other contract counterparties against third parties’ claims of intellectual property infringement based on our solutions. If our solutions violate any third-party intellectual property rights, we could be required to withdraw those solutions from the market, re-develop those solutions or seek to obtain licenses from third parties, which might not be available on reasonable terms, or at all. Any efforts to redevelop our solutions, obtain licenses from third parties on favorable terms or license a substitute technology might not be successful and, in any case, might substantially increase our costs and harm our business, financial condition and operating results. Withdrawal of any of our solutions from the market could harm our business, financial condition and operating results.

Our software may contain undetected defects or software errors, which could result in damage to our reputation or market rejection of our products.

We must update our solutions quickly to keep pace with the rapidly changing market, including the third-party software and devices with which our solutions integrate, and we have a history of frequently introducing new releases. Our solutions and/or updates to our solutions could contain errors or defects, which were not detected during our review processes, especially when first introduced or when new versions are released. Our software may not be free from errors or defects, which could result in damage to our reputation or harm to our operating results.

We warrant that our hardware will be free of defects for various periods of time. The operation of the hardware is controlled by the firmware loaded on the hardware. We generally provide firmware updates to our fleet customers by “over-the-air” wireless communication of the updated firmware directly to our customers’ in-vehicle devices. If the firmware does not function as expected and it prevents the uploading of updated firmware, then the problem could not be corrected by an over-the-air update and would require direct servicing of the installed on-board computer by trained personnel, which imposes a very significant cost on us. Variations among communications protocols in the markets in which we operate increase the risk of error in the remote installation of firmware. Although we attempt to manage this risk by introducing firmware updates in stages, so that the success of deployment can be assessed on a small number of in-vehicle devices before the deployment risk is expanded to a larger customer base, there can be no assurance that we will be successful in detecting firmware operation and integration problems or otherwise in managing our exposure to remediation expense related to the deployment of firmware updates.

Our “over-the-air” transmission of firmware updates could permit a third party to disable our customers’ in-vehicle devices or introduce malware into our customers’ in-vehicle devices, which could expose us to widespread loss of service and customer claims.

“Over-the-air” transmission of our firmware updates may provide the opportunity for a third party, who has deep inside knowledge of our systems, to modify or disable our customers’ in-vehicle systems or introduce malware into our customers’ in-vehicle systems. No such incidents have occurred to date, but there can be no assurance that they will not occur in the future. Damage to our customers’ in-vehicle devices as a result of such incidents could only be remedied through direct servicing of their installed in-vehicle devices by trained personnel, which would impose a very significant cost on us, particularly if the incidents are widespread. Moreover, such incidents could expose us to widespread loss of service and claims by our customers under various theories of liability, the outcome of which would be uncertain. Third party interference with our over-the-air transmission of firmware, or with our customers’ in-vehicle devices during such process, could materially and adversely affect our business, financial condition and results of operations.

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Any significant disruption in service on, or security breaches of, our SaaS platform or computer systems, could compromise our information, damage our reputation and result in a loss of customers.

Our brand, reputation, and ability to attract, retain, and serve our customers depend upon the reliable performance of our service and our customers’ ability to access our solutions at all times. Our customers rely on our solutions to make operating decisions related to their fleet, as well as to measure, store and analyze valuable data regarding their businesses. We collect and store sensitive data, including data transmitted from our customers’ in-vehicle devices concerning the location of their mobile assets, as well as personally identifiable information concerning our customers and employees. Our solutions are vulnerable to interruption and our data centers are vulnerable to damage or interruption from human error, intentional malicious acts, computer viruses or hackers, earthquakes, hurricanes, floods, fires, war, terrorist attacks, power losses, hardware failures, systems failures, telecommunications failures and similar events, any of which could limit our customers’ ability to access our solutions. Prolonged delays or unforeseen difficulties in connection with adding capacity or upgrading our network architecture may cause our service quality to suffer. Any event that significantly disrupts our service or exposes our data to misuse could damage our reputation and harm our business and operating results, including causing us to issue credits to customers, subjecting us to potential liability, reducing our customer retention rates, or increasing our cost of acquiring new customers, any of which would have the effect of reducing our revenue and could materially and adversely affect our business, results of operations and financial condition.

Any breach of our data or system security could result in our customer data being accessed, publicly disclosed, lost or stolen, our business and operations being interrupted, a loss of confidence in our products and services and other negative consequences such as civil liability, including under laws that protect the privacy of personal information, and regulatory penalties, any or all of which could materially and adversely affect our business, financial condition and results of operations.

In addition, we store data, host our solutions and serve all of our customers from our servers, which are located at third-party data center facilities in Algiers in Algeria, Sydney in Australia, Muscat in Oman, Dublin in Ireland, and Virginia in the United States. While we control and have access to the servers and some of the physical components that are located in these external data centers, we do not control the operation of these facilities or certain equipment. Problems faced by our third-party data center locations, with the telecommunications network providers with whom they or we contract, or with the systems by which our telecommunications providers allocate capacity among their customers, including us, could adversely affect the experience of our customers. Third-party operators of our data centers could decide to close their facilities without adequate notice. In addition, any financial difficulties, such as bankruptcy, faced by our secure third-party data center operators or any of the service providers with whom they or we contract may have negative effects on our business, the nature and extent of which are difficult to predict.

In addition to data hosted at third party data centers, we have transitioned the vast majority of our data to cloud-based service platforms such as Amazon Web Services (“AWS”). The use of such service presents similar risks to the use of a conventional third party hosted environment, although at a level that is viewed internally as considerably lower. The use of cloud-based servicing may however present additional complexity which may be more easily managed using physical data centers, for example the jurisdiction of data and applicability of various laws and regulations denoting the transfer of data between jurisdictions is more complex in a cloud based environment.

Certain of our customer agreements currently, and may in the future, provide minimum service level commitments regarding items such as uptime, functionality or performance. If we are unable to meet the stated service level commitments for these customers, or suffer extended periods of service unavailability, we are or may be contractually obligated to provide these customers with credits for future subscriptions, provide services at no cost or pay other penalties, which could adversely impact our profitability. Additionally, if our contracted or physical capacity is unable to keep up with our growing needs, this could have an adverse effect on our business. Our disaster recovery systems are located at our third-party hosting facilities. We use a redundant architecture and regularly review and increase capacity. However, our systems have not been tested under all disaster conditions and may not have sufficient capacity to recover all data and services in the event of an outage. In the event of a disaster in which our disaster recovery systems are irreparably damaged or destroyed, we would experience interruptions in access to our services. Any changes in third-party service levels at our data centers or any errors, defects, disruptions, or other performance problems with our solutions could harm our reputation and may damage our data. Interruptions in our services could materially and adversely affect our business, results of operations and financial condition, cause us to issue refunds to customers, subject us to potential liability, or adversely affect our subscriber retention rates.

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Our solutions rely on third-party software and any inability to license such software from third parties could render our solutions ineffectual.

We rely on software and other intellectual property licensed from third parties, including mapping software and data from Here and Google, to develop and provide solutions to our customers. In addition, we may need to obtain future licenses from third parties to use software or other intellectual property associated with our solutions. We cannot assure you that these licenses will be available to us on acceptable terms, without significant price increases or at all. Any loss of the right or inability to obtain the right to use any such software or other intellectual property required for the development and maintenance of our solutions could result in interruptions in the provision of our solutions until equivalent technology is either developed by us, or, if available from others, is identified, obtained, and integrated, which could harm our business.

In addition, we incorporate some open source software into our platform. The terms of many open source licenses to which we are subject have not been interpreted by U.S. courts or courts of other jurisdictions, and there is a risk that those licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to commercialize our solutions. In that event, we could be required to seek licenses from third parties in order to continue offering our solutions, to re-develop our solutions, to discontinue sales of our solutions, or to release our proprietary software source code under the terms of an open-source license, any of which could adversely affect our business.

We depend on third-party technology, including cellular and GPS networks, and any disruption, failure or increase in costs could impede the functionality of our solutions.

Two critical links in our current solutions are between in-vehicle devices and GPS satellites, and between in-vehicle devices and cellular networks, which allow us to obtain location data and transmit it to our system. Increases in the fees charged by cellular carriers for data transmission or changes in the cellular networks, such as a cellular carrier discontinuing support of the network currently used by our in-vehicle devices, requiring retrofitting of our in-vehicle devices, could increase our costs and impact our profitability. We have initiated activities to migrate new installations to the next generation of cellular network compatibility, in order to maximize expected useful life of our in-vehicle devices. However, cellular carriers could in the future discontinue support for our currently utilized cellular technologies. Also, while we have included the ability to store GPS data in our in-vehicle devices in case of temporary cellular network connectivity failure, widespread disruptions or extended failures of the cellular networks would adversely affect our solutions’ functionality and utility and harm our financial results.

GPS is a satellite-based navigation and positioning system consisting of a network of orbiting satellites. These satellites and their ground support systems are complex electronic systems, subject to electronic and mechanical failures and possible sabotage and it is not certain that the U.S. government will remain committed to the operation and maintenance of GPS satellites in the future. In addition, technologies that rely on GPS depend on the use of radio frequency bands and any modification of the permitted uses of these bands may adversely affect the functionality of GPS and, in turn, our solutions. The satellites and their ground control and monitoring stations are maintained and operated by the U.S. Department of Defense, which does not currently charge users for access to the satellite signals and does not impose on the ability to access location data. We cannot assure that it will not do so in the future. Any disruption, failure, increase in costs or regulatory hurdles could impede the functionality and/or cost of our solutions, which could adversely affect our business. The communication systems that we use to host and transmit data may be subject to security incidents, which may also subject the Company to regulatory enforcement and client pressures.

Our solutions integrate with third-party technologies and if our solutions become incompatible with these technologies, our solutions would lose functionality and our customer acquisition and retention could be adversely affected.

Our solutions integrate with third-party software and devices to allow our solutions to perform key functions. We cannot guarantee that this ease of integration will continue or that we will be able to integrate with other products at all or without additional cost. Additionally, previously unidentified errors, viruses or bugs may also be present in third-party software that our customers use in conjunction with our solutions. Changes to third-party software that our customers use in conjunction with our solutions could also render our solutions ineffective. Customers may conclude that our software is the cause of these errors, bugs or viruses and terminate their subscriptions. The inability to easily integrate with, or the presence of any defects in, any third-party software could result in increased costs, or in delays in software releases or updates to our products until such issues have been resolved, which could damage our reputation and materially and adversely affect our business, results of operations and financial condition.

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Risks Related to South Africa

Fluctuations in the value of the South African Rand have had, and will continue to have, a significant impact on our results of operations, which may make it difficult to evaluate our business performance between reporting periods and may also adversely affect the price of our ADSs.

The South African Rand is the primary operating and financial reporting currency for our business operations. Depreciation in the South African Rand may negatively impact the prices at which our ADSs trade. The U.S. Dollar, Euro, Australian Dollar and British Pound, each as compared to the South African Rand exchange rates, have historically been volatile and we expect this volatility to continue. We provide detailed information about historical U.S. Dollar to South African Rand exchange rates in “Item 3A. Selected Financial and Operating Data”.

Due to the significant fluctuation in the value of the South African Rand and its impact on our results, you may find it difficult to compare our results of operations between financial reporting periods. This difficulty may have a negative impact on the price of our ADSs and/or increase their volatility. During fiscal year 2018, the South African Rand/U.S. Dollar exchange rate averaged R12.90 and fluctuated between a high of R14.46 and a low of R11.55. This compares to an average exchange rate of R14.03 during fiscal year 2017, which fluctuated between a high of R15.87 and a low of R12.44. The South African Rand exchange rate is affected by various international and South African economic and political factors. For further information on the South African Rand/U.S. Dollar exchange rate movements post the end of fiscal year 2018, please refer to “Item 3A. Selected Financial and Operating Data”.

We also operate internationally and are exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the South African Rand, the U.S. Dollar, the Euro, the Australian Dollar, Brazilian Real and the British Pound. These exposures may change over time as business practices evolve and could have a material adverse impact on our financial results and cash flows. Fluctuation in currency exchange rates impacts our operating results. We have implemented a foreign currency hedging policy to reduce our net exposure, on certain recognized assets and liabilities, to fluctuations in foreign currencies. Our policy is primarily based on economic hedging principles of managing certain of our on balance sheet risk, as opposed to using derivative financial instruments. We do not attempt to hedge currency translation risk. Our future attempts to hedge against foreign currency risk could be unsuccessful and expose us to losses. Please refer to “Item 11. Quantitative and Qualitative Disclosures About Market Risk” for more details on foreign currency exchange risk.

If we do not achieve applicable black economic empowerment objectives in our South African businesses, we risk not being able to renew certain of our existing contracts which service South African government and quasi-governmental customers, as well as not being awarded future corporate and governmental contracts which would result in the loss of revenue.

The South African government, through the Broad-Based Black Economic Empowerment Act, No. 53 of 2003 (as amended by the Broad-Based Black Economic Empowerment Amendment Act, No. 46 of 2013), the Generic Codes of Good Practice (“B-BBEE Codes”) and industry charters published pursuant thereto, collectively, the “B-BBEE”, has established a legislative framework for the promotion of Broad-Based Black Economic Empowerment. Achievement of B-BBEE objectives is measured by a scorecard which establishes a weighting for the various components of B-BBEE.

The B-BBEE Codes were reviewed by the South African Department of Trade and Industry and a new set of B-BBEE Codes were promulgated in October 2013. The new B-BBEE Codes came into effect on May 1, 2015 and have different requirements and emphasis than the previous codes. In addition to the B-BBEE Codes, industry charters apply to certain of our entities. The Department of Trade and Industry published proposed amendments to the B-BBEE Codes, which were made available for 60 days of public commentary, ending on May 29, 2018. The proposed amendments will primarily influence the skills development pillar in promoting job creation for specific targeted youth groups by enabling workplace experience.

It is important for us to achieve applicable B-BBEE objectives. B-BBEE objectives are pursued, in significant part, by requiring parties who contract with corporate, governmental or quasi-governmental entities in South Africa to achieve B-BBEE compliance through satisfaction of an applicable scorecard. Parties improve their B-BBEE contributor level when contracting with businesses that have earned good B-BBEE contributor levels in relation to their scorecards.

We have two material end-customers, which previously required MiX Telematics Enterprise SA Proprietary Limited to maintain a B-BBEE contributor level 3 as measured under the new B-BBEE Codes. The value of these contracts represented 3.4% of our total revenue for fiscal year 2018. MiX Telematics Enterprise SA Proprietary Limited has attained the agreed

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compliance targets in fiscal year 2018. Failing to achieve applicable B-BBEE objectives could jeopardize our ability to maintain existing business or to secure future business from corporate, governmental or quasi-governmental customers that could materially and adversely affect our business, financial condition and results of operations.

We face the risk of disruption from labor disputes and changes to South African labor laws, which could result in significant additional operating costs or alter our relationship with our employees.

Our operations may be materially affected by changes to labor laws. South African laws relating to labor that regulate work time, provide for mandatory compensation in the event of termination of employment for operational reasons, and impose monetary penalties for non-compliance with administrative and reporting requirements in respect of affirmative action policies, could result in significant costs. In addition, future changes to South African legislation and regulations relating to labor may increase our costs or alter our relationship with our employees. The resulting disruptions could materially and adversely affect our business, results of operations and financial condition.

Socio-economic inequality in South Africa or regionally may subject us to political and economic risks which may affect the ownership or operation of our business.

We are incorporated and own significant operations in South Africa. As a result, we are subject to political and economic risks relating to South Africa. South Africa was transformed from a racially based government into a democracy in 1994, with successful rounds of democratic elections held under a modern constitution during 1994, 1999, 2004, 2009 and most recently, in May 2014. The next national elections are scheduled to be held in 2019. We fully support government policies aimed at redressing the disadvantages suffered by the majority of citizens under the previous non-democratic dispensation and recognize that in order to implement these policies, our operations and profits may be impacted. However, South Africa faces many challenges in overcoming substantial racial differences in levels of economic and social development among its people. While South Africa features highly developed and sophisticated business sectors and financial and legal infrastructure at the core of its economy, large parts of the country’s black population, particularly in rural areas, do not have access to adequate education, health care, housing and other services, including water and electricity. In addition, South Africa also has higher levels of crime and unemployment than the United States.

The ruling party which has controlled the South African government since democracy has committed itself to creating a stable, democratic, free market economy, which it has achieved to a great extent. It remains difficult however, to predict the future political, social and economic direction of South Africa or the manner in which any future government will attempt to address the country’s inequalities. It is also difficult to predict the impact that addressing these inequalities will have on our business. Furthermore, there has been regional, political and economic instability in countries neighboring South Africa, which could materially and adversely affect our business, results of operations and financial condition.

Although political conditions in South Africa are generally stable, changes may occur in the composition of its ruling party or in its political, fiscal and legal systems which might affect the ownership or operation of our business, which may, in turn, materially and adversely affect our business, financial condition and results of operations. These risks may include changes in legislation, arbitrary interference with private ownership of contract rights, and changes to exchange controls, taxation and other laws or policies affecting foreign trade or investment and could materially and adversely affect our business, financial condition and results of operations. Any changes in investment ratings, regulations and policies or a shift in political attitudes both within and towards South Africa are beyond our control and could materially and adversely affect our business, financial condition and results of operations.

A lack of growth, high inflation or increased interest rates in the South Africa economy could reduce our anticipated revenue and increase our operating costs.

On June 5, 2018, Statistics South Africa announced that the South African economy shrunk by 2.2% during the first quarter of 2018, following a prior announcement on March 6, 2018, that the growth rate during 2017 was 1.3%. Additionally, the economy of South Africa has in the past and may in the future continue to be characterized by rates of inflation and interest rates that are substantially higher than those prevailing in the United States and other highly developed economies. These characteristics may be exacerbated by the fact that two out of the three major ratings agencies maintained the South African credit ratings as sub-investment grade:

•Standard & Poor maintained a sub-investment grade with stable outlook on November 24, 2017;

•Fitch maintained a sub-investment grade with stable outlook on June 15, 2018; and

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•Moody's maintained an investment grade with stable outlook on March 23, 2018.

Consequently, economic conditions in South Africa could reduce our anticipated revenue growth, increase our South African-based costs, decrease our operating margins and adversely affect our ability to obtain cost-effective debt financing in South Africa.

Our financial flexibility could be constrained by South African currency restrictions, which, in turn, could hinder our normal corporate functioning.

South African companies are subject to exchange control limitations, which could hinder our normal corporate functioning, particularly given our significant expansion outside of South Africa in recent years. Exchange controls have been relaxed in recent years and may continue to be relaxed (for example, we have established a domestic treasury management company which is discussed in “Item 10D. Exchange Controls”). However, South African companies remain subject to certain restrictions on their ability to raise and deploy capital outside of the Southern African Common Monetary Area, which includes South Africa, Namibia, Lesotho and Swaziland. These restrictions have affected the manner in which we have financed our acquisitions outside South Africa. These restrictions or any adverse changes to these restrictions could materially and adversely affect our business, results of operations and financial condition.

Risks Relating to an Investment in our Ordinary Shares and ADSs

Sales of our ordinary shares may adversely affect the prices of our ordinary shares and ADSs.

Sales of substantial amounts of our ordinary shares in the public market, including sales by our officers, directors and principal shareholders, or the perception that such sales may occur, could adversely affect the prevailing market price of our ordinary shares or our ADSs as well as our ability to raise capital through an offering of our securities. In the future, we may also sponsor the sale of shares currently held by some of our shareholders, or issue new shares. We can make no prediction as to the timing of any such sales or the effect, if any, that future sales of our ordinary shares, or the availability of our ordinary shares for future sale, will have on the market price of our ordinary shares or ADSs prevailing from time to time.

The price of our ordinary shares or ADSs may be volatile and fluctuate significantly, which could result in substantial losses for investors.

Market prices for our securities may be volatile in response to various factors, some of which are beyond our control. Such volatility could negatively impact the perceived value and market prices of our ordinary shares or ADSs. In addition to the risks described in this ‘Risk Factors’ section of the annual report, some of the factors that may cause these market prices to fluctuate include:

• actual or anticipated fluctuations in our financial results or the financial results of our competitors;

• loss of existing customers or inability to attract new customers;

• actual or anticipated changes in our growth rate;

• our announcement of results for a financial reporting period that are lower than expected, whether caused by our results of operations or by currency fluctuations;

• changes in estimates of our financial results or recommendations by securities analysts;

• failure of any of our solutions to achieve or maintain market acceptance;

• changes in market valuations of similar companies;

• changes in our capital structure, including issuances or repurchases of securities or the incurrence of debt;

• announcements by us or our competitors of significant products, technologies, services, contracts, acquisitions, or strategic alliances;

• success of competitive products or services;

• regulatory developments in South Africa, the United States or other countries;

• actual or threatened litigation involving us or our industry;

• additions or departures of key personnel;

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• breaches of security;

• general perception of the future of the fleet and mobile asset management market or our solutions;

• sales of ADSs or ordinary shares by our shareholders;

• ADS price and volume fluctuations attributable to inconsistent trading volume levels of the ADSs; and

• changes in general economic, industry, and market conditions.

We issue quarterly press releases and other disclosure of our financial results. Our quarterly operating results will fluctuate in the future as a result of a variety of factors, including, but not limited to, our ability to accurately forecast revenue and appropriately plan our expenses, long sales cycles for our enterprise fleet management solutions, service outages or security breaches and any related occurrences which could impact our reputation as well as fluctuations in currency exchange rates. If our quarterly operating results or guidance fall below the expectations of research analysts or investors, the price of our ordinary shares and the ADSs could decline substantially.

In addition, the stock market in general, and the market for technology companies in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies. These broad market and industry factors may materially harm the market price of our ordinary shares and ADSs. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. This litigation, if instituted against us, could result in very substantial costs, divert our management’s attention and resources, and harm our business, operating results, and financial condition.

Exchange rate volatility may adversely affect the market price of the ADSs and any dividends payable to ADS holders.

As discussed above and further discussed below, there have been significant fluctuations in the exchange rate between the South African Rand and the U.S. Dollar. Unforeseen events in international markets, fluctuations in interest rates, changes in capital flows, political developments or inflation rates may cause exchange rate instability that could, in turn, depress the value of the South African Rand, thereby decreasing the U.S. Dollar value of the ADSs and any dividends or distributions paid on the ordinary shares underlying the ADSs.

Our shares trade on more than one market and this may result in price variations.

Our ordinary shares have been traded on the JSE since 2007, and the ADSs have been traded on the New York Stock Exchange (the “NYSE”) since August 2013. Trading in our ordinary shares and ADSs on these markets takes place in U.S. Dollars on the NYSE and South African Rand on the JSE, and at different times, resulting from different time zones, trading days and public holidays in the United States and South Africa. The trading prices of our ordinary shares and ADSs on these two markets may differ due to these and other factors. Any decrease in the price of our ordinary shares on the JSE could cause a corresponding decrease in the trading price of the ADSs on the NYSE.

The requirements of being a public company in the United States may strain our resources and distract our management, which could make it difficult to manage our business and could have a negative effect on our results of operations and financial condition, particularly after we are no longer an emerging growth company (“EGC”) in fiscal year 2019.

We are required to comply with various regulatory and reporting requirements, including those required by the Securities and Exchange Commission (“SEC”). Complying with these reporting and regulatory requirements is time consuming, which may result in increased costs to us and could have a negative effect on our business, results of operations and financial condition.

As a public company in the United States, we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), and the requirements of the Sarbanes-Oxley Act of 2002 (“SOX”). These requirements may place a strain on our systems and resources. The Exchange Act requires that we file annual reports and file or make public certain additional information, with respect to our business and financial condition in our home country. SOX requires that we maintain effective disclosure controls and procedures and internal control over financial reporting. Furthermore, as our business changes and if we expand either through acquisitions or by means of organic growth, our internal controls may become more complex and we will require significantly more resources to ensure our internal controls remain effective. Failure to implement required new or improved controls, or difficulties encountered in their implementation, could adversely affect out operating results or cause us to fail to meet our reporting obligations. If we identify material weaknesses,

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the disclosure of that fact, even if quickly remediated, could reduce the market’s confidence in our financial statements and negatively affect our share price.

As an EGC, as defined in the Jumpstart Our Business Startups (the “JOBS” Act), we may take advantage of certain temporary exemptions from various reporting requirements, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of SOX (and the rules and regulations of the SEC thereunder). Based on the EGC criteria outlined later in the risk factors, these exemptions will likely cease to apply on the last day of fiscal year 2019, we expect to incur additional expenses and devote increased management effort toward ensuring compliance. We cannot predict or estimate the amount of additional costs we may incur as a result of being a public company or the timing of such costs.

Certain provisions of South African law may limit or otherwise discourage a takeover or business combination that could otherwise benefit our shareholders.

Various transactions including, without limitation, those which result in a person, or a group of persons acting in concert, holding shares entitled to exercise or cause to be exercised 35% or more of the voting rights at meetings of our shareholders will be subject to the Fundamental Transactions and Takeover Regulations (the “Takeover Regulations”), promulgated in terms of Section 196 of the Companies Act, which are regulated by the Takeover Regulation Panel. The Takeover Regulations impose various obligations in such circumstances including the requirement of an offer to minority shareholders.

A transaction will be subject to the approval of the competition authorities in terms of the Competition Act, No. 89 of 1998, as amended (the “Competition Act”), if it results in the acquisition of “control”, as defined in the Competition Act and otherwise falls within the scope of the Competition Act. The Competition Act prohibits a transaction within its scope from being implemented without the necessary approvals.

To the extent applicable, a transaction may be subject to JSE listings requirements as well as the approval of the Exchange Control Department of the South African Reserve Bank, and other applicable regulatory bodies. In addition, certain fundamental transactions such as mergers, amalgamations, schemes of arrangements and sales of a majority of a company’s assets, require the approval of shareholders exercising 75% of the voting rights, and if 15% or more of a company’s shareholders vote against the transaction, any dissenting shareholder may, within five days, require the company, at its expense, to obtain court approval before implementing the resolution. Even if less than 15% of the shareholders vote against the resolution, any dissenting shareholder may apply to court for a review of the transaction. Such regulations, including the Takeover Regulations and the Competition Act, may have the effect of delaying, deferring or preventing a change in control of us including an extraordinary transaction (such as a merger, tender offer, scheme of arrangement or sale of all or substantially all of our assets) that might provide a premium price for our shareholders.

The concentration of ownership of our capital stock limits your ability to influence corporate matters.

At June 15, 2018, our executive officers, directors, current 5% or greater shareholders and entities affiliated with them, beneficially own 34.1% of our ordinary shares. This significant concentration of share ownership may adversely affect the trading price for our ordinary shares and the ADSs because investors often perceive disadvantages in owning stock in companies with concentrated share ownership. In addition, these shareholders, acting together, may be able to control our management and affairs and matters requiring shareholder approval, including the election of directors and the approval of significant corporate transactions, such as mergers, consolidations or the sale of substantially all of our assets. Shareholders owning greater than 25% of our outstanding ordinary shares will have the ability to block certain corporate actions, including the issuance of additional equity securities for cash. See “Certain provisions of South African law may limit our ability to issue securities and access the capital markets in the future, which could hinder our ability to raise capital in the future.” Consequently, this concentration of ownership may have the effect of exacerbating the delays and limitations on capital market transactions and could materially and adversely affect our business, results of operations and financial condition.

Certain provisions of South African law may limit our ability to issue securities and access the capital markets in the future, which could hinder our ability to raise capital in the future.

The authority of our Board of Directors to issue additional securities is limited by the JSE Listings Requirements and certain provisions of the Companies Act and our Memorandum of Incorporation, and as a result we may be unable to access the capital markets on a timely basis when it is opportune to do so. Under the JSE Listings Requirements, the issuance of equity securities, or securities convertible into equity securities, for cash by our Board of Directors requires shareholder approval, either by means of a specific authority for a specific transaction or by way of a general authority, for a limited time

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period. If a general authority is not in place, we may experience extended delays and uncertainty in seeking shareholder approval of financing transactions and as a result we may be unable to execute financing transactions with available investors, on advantageous terms or at all. Moreover, while a general authority could allow our Board of Directors to issue for cash additional ordinary shares representing up to 15% of the ordinary shares outstanding at the time of the general authorization, as a practical matter, shareholders in the South African market are often reluctant to grant general authorities up to the 15% threshold. The Company has sought a general authority to issue equity securities, or securities convertible into equity securities, for cash, limited to 5% of the ordinary shares outstanding at the time the general authorization is sought. A general authorization would not permit our Board of Directors to issue ordinary shares for cash with a greater than 10% discount to the 30-day volume-weighted average price, as of the issuance date, which, if we were to experience significant financial difficulties in the future, could prevent us from obtaining funds when needed. Shareholders owning greater than 25% of our outstanding ordinary shares have the ability to block an issuance of ordinary shares for cash. The Company has sought a further limited authority approving the placement of 10% of the authorized but unissued shares of the Company under the control of directors who may issue such shares in their discretion.  This authority, if approved by a majority of shareholders, is only valid until the Company’s next annual general meeting or until renewed; is in line with the Memorandum of Incorporation and provides limited flexibility to execute financing transactions or any approval of a general authorization to our Board of Directors. While we will be able to issue non-convertible debt securities without shareholder approval, we will not be able to grant any voting rights to debt holders, which would be likely to increase the cost of any such debt issuance to the Company.

The relative volatility and illiquidity of the South African securities markets may substantially limit your ability to sell the ordinary shares underlying the ADSs at the price and time you desire.

Our ordinary shares are listed for trading on the JSE. Investing in securities that trade in emerging markets, such as South Africa, often involves greater risk than investing in the securities of issuers in the United States, and such investments are generally considered to be more speculative in nature. The South African securities market is substantially smaller, less liquid, more concentrated and can be more volatile than major securities markets in the United States. There is also significantly greater concentration in the South African securities markets than in major securities markets in the United States. At June 15, 2018, total market capitalization amounted to R14,692 billion ($1,242.38 billion) and this market capitalization was represented by 373 companies. Accordingly, although you are entitled to withdraw the ordinary shares underlying the ADSs from the depositary at any time, your ability to sell such shares at a price and time you desire may be substantially limited. The Bank of New York Mellon (“BNYM”) serves as the depositary (the “depositary”) with respect to the ADSs.

Holders of our ADSs in the United States may have difficulty bringing actions, and enforcing judgements, against us, our directors and our executive officers based on the civil liabilities provisions of the federal securities laws or other laws of the United States or any state thereof.

We are incorporated in South Africa. The majority of our directors and senior management (and certain experts named herein) reside outside of the United States. A significant portion of the assets of these persons and substantially all of our assets are located outside of the United States. As a result, it may not be possible for investors to enforce against these persons or us a judgement obtained in a United States court predicated upon the civil liability provisions of the federal securities or other laws of the United States or any state thereof. A foreign judgement is not directly enforceable in South Africa, but constitutes a cause of action which will be enforced by South African courts provided that:

• the court that pronounced the judgement had jurisdiction to entertain the case according to the principles recognized by South African law with reference to the jurisdiction of foreign courts;

• the judgement is final and conclusive (that is, it cannot be altered by the court which pronounced it);

• the judgement has not lapsed or been satisfied;

• the recognition and enforcement of the judgement by South African courts would not be contrary to public policy, including observance of the rules of natural justice which require that the documents initiating the United States proceeding were properly served on the defendant and that the defendant was given the right to be heard and represented by counsel in a free and fair trial before an impartial tribunal;

• the judgement was not obtained by fraudulent means;

• the judgement does not involve the enforcement of a penal or revenue law of the foreign state; and

• the enforcement of the judgement is not otherwise precluded by the provisions of the South African Protection of Businesses Act of 1978, as amended.

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It is the policy of South African courts to award compensation for the loss or damage actually sustained by the person to whom the compensation is awarded. Although the award of punitive damages is generally unknown to the South African legal system that does not mean that such awards are necessarily contrary to public policy. Whether a judgement was contrary to public policy depends on the facts of each case. Exorbitant, unconscionable, or excessive awards will generally be contrary to public policy. South African courts cannot enter into the merits of a foreign judgement and cannot act as a court of appeal or review over the foreign court. South African courts will usually implement their own procedural laws and, where an action based on an international contract is brought before a South African court, the capacity of the parties to the contract will usually be determined in accordance with South African law.

It is doubtful whether an original action based on U.S. federal securities laws may be brought before South African courts. A plaintiff who is not a resident in South Africa may be required to provide security for costs in the event of proceedings being initiated in South Africa. Furthermore, the Rules of the High Court of South Africa require that documents executed outside South Africa must be notarially authenticated for the purpose of use in South Africa.

We are an emerging growth company (“EGC”) and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies may make our ADSs less attractive to investors and, as a result, adversely impact the price of our ADSs and result in a less active trading market for our ADSs.

We are an EGC, as defined by the JOBS Act and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not EGCs including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of SOX for an extended period of time.

We intend to take advantage of these disclosure exemptions until we are no longer an EGC. We cannot predict whether investors will find our ADSs less attractive because of our reliance on some or all of these exemptions. If investors find our ADSs less attractive, as a result, it may adversely impact the price of our ADSs and there may be a less active trading market for our ADSs.

We will cease to be an EGC upon the earliest of:

• the last day of fiscal year 2019;

• the last day of the fiscal year in which our annual gross revenues are $1 billion or more;

• the date on which we have, during the previous three-year period, issued more than $1 billion in non-convertible debt securities; or

• the last day of any fiscal year in which the market value of our ordinary shares held by non-affiliates exceeded $700 million as of the end of the second quarter of that fiscal year.

We are a foreign private issuer (“FPI”) and have disclosure obligations that are different from those of United States domestic listed companies, and are permitted in some cases to follow corporate governance standards applicable to South African companies, which may limit the protections afforded to investors.

We are an FPI for purposes of SEC rules and within the meaning of the NYSE corporate governance standards. As an FPI, we are not subject to the same requirements that are imposed upon United States domestic issuers by the SEC. Under the Exchange Act, we are subject to reporting obligations that are less frequent and in certain respects less detailed than those of United States domestic reporting companies. For example, we are not required to issue quarterly reports, proxy statements that comply with the requirements applicable to United States domestic reporting companies or individual executive compensation information that is as detailed as that required of United States domestic reporting companies. We have four months after the end of each fiscal year to file our annual reports with the SEC and will not be required to file current reports on the same basis as United States domestic reporting companies. Furthermore, our officers, directors and principal shareholders are exempt from the requirements to report short-swing profit recovery contained in Section 16 of the Exchange Act.

In addition, under the NYSE corporate governance standards, an FPI may elect to comply with the practices of its home country and not to comply with most corporate governance requirements applicable to United States companies with securities listed on the NYSE. We currently follow South African practices concerning corporate governance and intend to continue to do so. Accordingly, you do not have the same protections afforded to shareholders of domestic companies that are subject to all NYSE corporate governance requirements. For example, NYSE-listed companies that are not foreign private issuers are required to have a board of directors a majority of which satisfy NYSE listing standards for independence and to have fully independent audit, compensation and nominating committees of the board of directors. Although our Audit and

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Risk Committee members are required to meet independence standards established by SEC rules, our independent directors are subject to applicable South African standards for independence, which are different. Our Nominations and Remuneration Committee members are also subject to applicable South African practice on corporate governance.

We may lose our FPI status which would then require us to comply with the Exchange Act’s domestic reporting regime and cause us to incur significant legal, accounting and other expenses.

We are an FPI and therefore we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act applicable to United States domestic issuers. In order to maintain our current status as an FPI, either (a) a majority of our ordinary shares must be either directly or indirectly owned of record by non-residents of the United States or any of the following, (b) (i) a majority of our executive officers or directors may not be United States citizens or residents, (ii) more than 50% of our assets cannot be located in the United States and (iii) our business must be administered principally outside the United States. If we lost this status, we would be required to comply with the Exchange Act reporting and other requirements applicable to United States domestic issuers, which are more detailed and extensive than the requirements for foreign private issuers. We may also be required to make changes in our corporate governance practices in accordance with various SEC and NYSE rules. The regulatory and compliance costs to us under United States securities laws if we are required to comply with the reporting requirements applicable to a United States domestic issuer may be significantly higher than the cost we would incur as an FPI. As a result, we expect that a loss of FPI status would increase our legal and financial compliance costs and would make some activities highly time consuming and costly. We also expect that if we were required to comply with the rules and regulations applicable to United States domestic issuers, it would make it more difficult and expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These rules and regulations could also make it more difficult for us to attract and retain qualified members of our Board of Directors.

Our registered public accounting firm has not yet provided attestation over the effectiveness of our internal control over financial reporting in compliance with Section 404(b) of SOX and if we fail to effectively implement internal control procedures, we will incur additional costs in addressing our non-compliance and our stock price could decline due to related market concerns.

For as long as we are an EGC, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 of SOX. We could be an EGC until the last day of the fiscal year 2019. Even if our management concludes that our internal controls over financial reporting are effective, our independent registered public accounting firm may still decline to attest to our management’s assessment or may issue a report that is qualified if it is not satisfied with our controls or the level at which our controls are documented, designed, operated or reviewed. Our remediation efforts may not enable us to avoid a material weakness in the future. Failure to comply with Section 404 could subject us to regulatory scrutiny and sanctions, impair our ability to raise capital, cause investors to lose confidence in the accuracy and completeness of our financial reports and negatively affect our share price.

Holders of the ADSs may not receive dividend payments, which could cause you to lose some or all of the value of any dividend distribution.

Under the terms of our deposit agreement with the depositary for the ADSs, the depositary will convert any cash dividend or other cash distribution we pay on the ordinary shares underlying the ADSs into U.S. Dollars, if it can do so on a reasonable basis and can transfer the U.S. Dollars to the United States. If this conversion is not possible or if any government approval becomes necessary and cannot be obtained, the deposit agreement allows the depositary to distribute the foreign currency only to those ADS holders to whom it is permissible to do so. If the exchange rate fluctuates significantly during a time when the depositary cannot convert the foreign currency or distribute a payment to you, you may lose some or all of the value of any dividend distribution. We currently intend to pay regular dividends and will consider the issuance of such dividends on a quarter-by-quarter basis.

ADS holders may be subject to additional risks related to holding ADSs rather than ordinary shares.

ADS holders do not hold ordinary shares directly and thus are subject to, among others, the following additional risks:

• as an ADS holder, we will not treat you as one of our shareholders and you will not be able to exercise shareholder rights, except through the depositary as permitted by the deposit agreement;

• distributions on the ordinary shares represented by your ADSs will be paid to the depositary, and before the depositary makes a distribution to you on behalf of your ADSs, any withholding taxes that must be paid will be deducted.

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Additionally, if the exchange rate fluctuates during a time when the depositary cannot convert the foreign currency, you may lose some or all of the value of the distribution; and

• we and the depositary may amend or terminate the deposit agreement without the ADS holders’ consent in a manner that could prejudice ADS holders.

You must act through the depositary to exercise your voting rights, as a result of which you may be unable to exercise your voting rights on a timely basis.

As a holder of ADSs, and not the ordinary shares underlying your ADSs, we will not treat you as one of our shareholders and you will not be able to exercise shareholder rights. The depositary will be the holder of the ordinary shares underlying your ADSs, and ADS holders will be able to exercise voting rights with respect to the ordinary shares represented by the ADSs only in accordance with the deposit agreement relating to the ADSs. There are practical limitations on the ability of ADS holders to exercise their voting rights due to the additional procedural steps involved in communicating with these holders. For example, holders of our ordinary shares will receive notice of shareholders’ meetings by mail and the securities exchange news service of the JSE, and will be able to exercise their voting rights by either attending the meeting in person or voting by proxy. ADS holders, by comparison, will not receive notice directly from us. Instead, in accordance with the deposit agreement, we will provide notice to the depositary as soon as practicable of any applicable meeting date. If we ask it to do so, the depositary will mail to holders of ADSs the notice of the meeting and a statement as to the manner in which voting instructions may be given by holders as soon as practicable after receiving notice from us of any such meeting. Subject to satisfaction of the foregoing standard, there is no specified number of days within which the depositary must mail ADS holders the notice of meeting and voting instructions. To exercise their voting rights, ADS holders must then instruct the depositary as to voting the ordinary shares represented by their ADSs. Due to these procedural steps involving the depositary, the process for exercising voting rights may take longer for ADS holders than for holders of ordinary shares. The ordinary shares represented by ADSs for which the depositary fails to receive timely voting instructions may not be voted at all.

Judgements of South African courts with respect to the ADSs will be payable only in South African Rand, which could expose any prevailing party to exchange rate risk until the judgement is collected.

If proceedings are brought in a South African court seeking to enforce the rights of holders of the ADSs, any judgement made in favor of such holders, even if the judgement is on an obligation deemed to be denominated in U.S. Dollars, could only be made or awarded in South African Rand based on the exchange rate in effect at the time the judgement is entered. The prevailing party in such proceeding would therefore bear exchange rate risk until the judgement could be collected and converted into another currency.

By purchasing ADSs, holders will irrevocably submit to the jurisdiction of state or federal courts in New York, New York in connection with any legal suit, action or proceeding relating to the deposit agreement or the ADSs.

By purchasing ADSs or an interest therein, holders of ADSs irrevocably agree that any legal suit, action or proceeding against or involving us or the depositary, arising out of or based upon the deposit agreement or the ADSs, may only be instituted in a state or federal court in New York, New York, and by purchasing ADSs or an interest therein holders irrevocably waive any objection to the laying of venue of any such proceeding. We have agreed to indemnify the depositary and its agents under certain circumstances. Neither the depositary nor any of its agents will be liable to holders or beneficial owners of ADSs or interests in ADSs for any indirect, special, punitive or consequential damages (including, without limitation, lost profits) of any form incurred by any person or entity, whether or not foreseeable and regardless of the type of action in which such a claim may be brought.

There is a risk that we will be classified as a passive foreign investment company (“PFIC”), which could result in adverse U.S. federal income tax consequences to U.S. Holders of ordinary shares or the ADSs.

We may be classified as a PFIC for U.S. federal income tax purposes, which could result in adverse U.S. federal income tax consequence to U.S. holders.

Based on the current price of our ADSs and the composition of our income and assets, we do not believe that we are a PFIC for U.S. federal income tax purposes for our current taxable year ended March 31, 2018. However, a separate determination must be made after the close of each taxable year as to whether we are a PFIC. We cannot assure you that we will not be a PFIC for any future taxable year. If we were treated as a PFIC for any taxable year during which a U.S. holder held an equity share or an ADS, certain adverse U.S. federal income tax consequences could apply to the U.S. holder. See “Item 10E. Taxation – PFIC Rules”.

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ITEM 4. INFORMATION ON THE COMPANY

4A. HISTORY AND DEVELOPMENT OF THE COMPANY

MiX Telematics Limited is a public company incorporated in the Republic of South Africa. Our registered offices are located at Matrix Corner, Howick Close, Waterfall Park, Bekker Road, Midrand, South Africa, 1686. Our telephone number is +27-11-654-8000, and our web address is www.mixtelematics.com. We currently have our primary listing on the JSE and have a secondary listing of our ADSs on the NYSE.

We were founded in 1996 in Johannesburg, South Africa as Matrix Vehicle Tracking Proprietary Limited, and since that time, we have grown both organically and through acquisitions. Matrix Vehicle Tracking Proprietary Limited was renamed TeliMatrix Proprietary Limited in 2001, TeliMatrix Limited in 2007 and finally MiX Telematics Limited in 2008, subsequent to our listing on the JSE.

In 2007, we acquired Control Instruments OmniBridge Proprietary Limited and certain affiliated entities (collectively, “OmniBridge”), which provided fleet management services in both the South African and international markets. In November 2007, we listed our shares on the JSE, in order to facilitate the OmniBridge acquisition. In 2008, we acquired Tripmaster Corporation, located in the United States, Safe Drive (including Safe Drive International Proprietary Limited), located in Australia and Safe Drive FZE, located in the United Arab Emirates. These acquisitions extended our geographic reach, broadened our customer relationships and expanded our driver safety and training solution offerings. In May 2012, we acquired Intellichain, located in South Africa, as part of our strategy to broaden our transportation management software functionality. On August 9, 2013, following a successful United States IPO, the Company’s ADSs were listed on the NYSE and are traded under the symbol MIXT. In December 2013, we acquired a proprietary software development business from Roitech Proprietary Limited, located in South Africa. The acquisition enhanced and broadened our fleet management smart phone application offerings. On November 1, 2014, we acquired the operating business of Compass Fleet Management (“Compass”), a South Africa based provider of specialized fleet management solutions in Southern Africa, that are delivered using the Group’s hardware and software platforms. These specialized fleet management solutions complement the Group’s existing fleet management solutions, and the acquisition broadens the array of services offered to current and future fleet management customers.

We currently have offices in the following locations:

Country	Office location
South Africa	Midrand, Stellenbosch, Durban, Cape Town and Nelspruit
United States	Boca Raton, Florida and Houston, Texas
United Kingdom	Birmingham and Swindon
Australia	Perth and Brisbane
United Arab Emirates	Dubai
Brazil	São Paulo
Thailand	Bangkok
Uganda	Kampala
Romania	Bucharest

Our agent for service of process in the United States is MiX Telematics North America, Inc. 750 Park of Commerce Blvd., Suite 100, Boca Raton, Florida 33487.

For further information on our principal investments and capital expenditures, see the description of our business in “Item 4B. Business Overview” and “Item 5B. Liquidity and Capital Resources.”

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4B. BUSINESS OVERVIEW

Overview

We are a leading global provider of fleet and mobile asset management solutions delivered as SaaS. Our solutions deliver a measurable return by enabling our customers to manage, optimize and protect their investments in commercial fleets or personal vehicles. We generate actionable intelligence that enables a wide range of customers, from large enterprise fleets to small fleet operators and consumers, to reduce fuel and other operating costs, improve efficiency, enhance regulatory compliance, promote driver safety, manage risk and mitigate theft. Our solutions rely on our proprietary, highly scalable technology platforms, which allows us to collect, analyze and deliver information based on data from our customers’ vehicles. Using an intuitive, web-based interface, our fleet customers can access large volumes of historical and real-time data, monitor the location and status of their drivers and vehicles and view a wide selection of reports.

We have a global presence, with customers located in approximately 120 countries across six continents. We currently serve a highly diverse customer base, including approximately 6,000 fleet operators, which represented 73% of our subscription revenue for fiscal year 2018. We target sales of our enterprise fleet management solutions to customers who desire a premium solution, generally for large fleets, which we define as fleets of 50 or more vehicles. Large fleets accounted for 87% of our fleet subscriptions at March 31, 2018. We believe we have a satisfied customer base and, among our more than 800 large fleet operator customers, we experienced an annual customer retention rate in excess of 95% in fiscal year 2018. We have multinational enterprise fleet customer deployments with companies such as Baker Hughes, Bechtel Corporation, BP, Chevron, DHL, G4S, Halliburton, LafargeHolcim, Nestlé, PepsiCo, Praxair, Scania, Schlumberger, Shell, The Linde Group, Total and Weatherford. We also offer a range of subscription-based fleet and vehicle management solutions to meet the needs and price points of small fleet operators and consumers. Our safety and security features, including driver performance and vehicle monitoring, are important attributes of our solutions for these customers.

We have consistently grown our customer base. As evidence of this growth, subscribers, one of our key operating metrics and a factor influencing our rate of subscription revenue growth, increased at a compound annual growth rate of 13.5% from April 1, 2013, to March 31, 2018, and as of March 31, 2018, we tracked and managed over 676,000 subscribers. As a further indicator of our scale, in fiscal year 2018, we collected data on an average of approximately 128 million trips per month representing as many as 7.8 billion vehicle locations per month. The monthly price charged per subscriber varies among our customers depending on the services and features they require, hardware options, customer size, route to market and geographic location of the customer. Consequently, our rate of subscription revenue growth is influenced by not only the rate of growth in the number of subscribers but also by the evolving mix of our subscriber base.

Industry Overview

Challenges Facing Fleet Operators Worldwide

Fleet managers operate in an increasingly competitive and highly regulated global environment. Timely and accurate decision-making enabled by solutions that provide real-time visibility into vehicle location and driver performance is critical to managing a safe, efficient fleet. In some developing areas of the world, ensuring driver and vehicle safety and security is also particularly challenging given high crime rates, which have resulted in automotive insurance mandates and regulatory requirements for vehicle tracking. Consequently, fleet managers and consumers demand solutions that promote driver and passenger safety, mitigate risk, drive operational efficiencies, improve stolen vehicle recovery rates and reduce automotive insurance rates. The business environment for fleet managers is further complicated by the large number of transportation-related regulatory and compliance requirements worldwide, and the frequency with which rules and regulations change.

Legacy fleet management solutions inadequately address industry needs as many businesses use discrete manual processes, such as spreadsheet and paper-based systems and telephones, to monitor vehicle and driver activity. These approaches are labor intensive, prone to error, do not provide continuous monitoring of fleets, make it difficult to optimize fleet utilization, manage operating costs and generate minimal business intelligence. Additionally, legacy fleet management technology frequently provides limited functionality beyond basic location-based tracking and makes it difficult for fleet operators to fully benefit from the cost savings and efficiency improvements associated with more robust fleet management offerings.

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Fleet operators face many significant challenges, which can include:

• Significant operating costs. Fuel costs represent a significant cost for fleet operators. For example, the American Transportation Research Institute estimates that fuel and oil, driver wages and benefits, repair and maintenance and truck insurance premium costs collectively represented approximately 79% of total trucking operational costs per mile in 2016. Certain driving behaviors, such as speeding, harsh acceleration, harsh braking and excessive idling contribute to poor fuel efficiency as well as increased wear and tear and maintenance costs.

• Poor visibility into fleet operations. Fleet operators frequently maintain vehicles across multiple geographic regions and often lack visibility into their fleets and oversight of their drivers. Poor fleet visibility makes it challenging to optimize fleet utilization, vehicle fleet size and miles driven while still meeting core business and customer servicing requirements. Poor driver oversight makes it difficult for operators to validate hours worked or customers visited, incentivize greater efficiency and discourage unproductive, undesirable or dangerous worker behavior.

• Challenges in maintaining regulatory compliance. Internal compliance and reporting is driven by legislative and regulatory requirements, which are often subject to change, from regulatory authorities in nearly every jurisdiction globally. This can be particularly burdensome for fleet operators managing large vehicle fleets in multiple jurisdictions. For example, in the United States, fleet operators can face numerous complex regulatory requirements, including mandatory hours of service compliance and fuel tax reporting and more recently electronic logging devices (“ELD”) legislation that requires truck drivers to log their hours of service electronically.

• Challenges in managing risk. Fleet operators are responsible for hiring, training and identifying risks associated with their drivers. Vehicle crashes are a leading cause of workplace injury and lead to significant costs for fleet operators, including financial liability and increased insurance premiums. Fleet operators need visibility into driving behavior to proactively identify and remediate drivers with poor driving habits.

• Inefficient data management. Fleet operators receive operational information from many disparate sources, including communications from their technicians and customers, paper-based reports, third-party receipts for items such as fuel purchases, vehicle maintenance logs and customer invoices. While simply collecting this unstructured data is burdensome, organizing and analyzing the data to identify trends and other actionable business intelligence can be even more challenging.

Challenges Facing Fleet Operators and Consumers in Developing Markets

In certain developing regions of the world, driver safety and vehicle security are significant concerns given high crime rates and the impact these higher crime rates have on consumers, insurance costs and regulatory requirements. More specifically, fleet operators and consumers often need to address challenges including:

• Managing the impact of crime. Vehicle crime rates in developing regions of the world often far exceed those in the United States and Western Europe, resulting in potentially significant costs for fleet operators and consumers. For example, we estimate that the rate of vehicle theft in South Africa is more than double than that in the United States.

• Reducing insurance costs. In developed and developing regions, insurers often provide incentives for fleet operators and consumers who subscribe to a safety and security mobile asset management solution. Some insurance providers will not insure vehicles that lack a tracking solution, or will make the insurance premium cost prohibitive without one. Furthermore, insurance provider interest in safety and security solutions has increased following the introduction of driver performance monitoring solutions, which can enable innovative usage-based insurance and claims management initiatives. 

• Complying with regulatory mandates. The growing introduction of stringent occupational health and safety legislation in developing markets is adding pressure to fleet operators, who need to fulfill their duty of care while also complying with laws regulating driving hours, rest time, fuel taxes, etc.

Industry Trends

There have been substantial advances in the capabilities, reliability and affordability of technologies that can be used to cost-effectively collect and disseminate large amounts of vehicle data and video footage. GPS positioning and advanced on-board systems generate valuable, objective real-time information, which provides the basis for driver and vehicle management solutions. Similarly, significant advances in the performance, reliability and affordability of fixed and wireless networks, computing power and data storage capabilities have supported the rise of cloud computing that enables the delivery of SaaS. These technological advances and market shifts have helped to foster demand for subscription-based fleet and mobile asset management solutions like ours.

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While fleet and mobile asset management solutions can offer a wide range of features and benefits, the reasons for adopting these solutions often vary by customer type and geography. In developed regions, including North America and Western Europe, many fleet operators adopt fleet management software solutions in order to obtain greater visibility over their vehicles and mobile workforces, to achieve cost savings through efficiency improvements, including reduced fuel consumption, and to reduce regulatory compliance burdens. In many developing regions, including Eastern Europe, Latin America, Africa, the Middle East and parts of Asia, the security of personnel and asset protection features afforded by vehicle tracking and monitoring, resulting in greater asset visibility and a lower impact of theft, are also important reasons for the adoption of fleet and mobile asset management solutions. In Australia and parts of Africa, Asia, Europe and the Middle East, compliance with health and safety standards and policies are a key reason for adoption of these systems. Recognizing the variety of motivations influencing our existing and potential customers is an important aspect of developing and marketing our solutions.

Global and multinational companies are increasingly looking to consolidate their fleet management systems by moving to providers that have global reach. This is primarily driven by the desire to have a secure centralized view across their fleets and impose set global standards specifically relating to driver management and safety.

Market Opportunity

We believe that the addressable market for our fleet management solutions is large, growing and under-penetrated. According to a report by ABI Research (“ABI”), there were more than 190 million commercial vehicles registered globally by the end of December 2017. Global fleet management penetration was estimated to be around 16.8%. ABI forecasts that by 2022, the number of registered commercial vehicles will be approximately 230 million.

In addition to the growing market opportunity in commercial fleet vehicles, we believe there is a large and under-penetrated market to provide a tailored set of safety and security solutions to non-commercial passenger vehicles. Worldwide, the pool of motor vehicles is large and growing, particularly in developing markets. We estimate that there are approximately 7.4 million non-commercial passenger vehicles in operation in South Africa. We believe the potential rate of consumer adoption of mobile asset management solutions is highest in developing regions where vehicle tracking and monitoring features can help to improve driver and passenger safety, reduce the impact of theft by improving stolen vehicle recovery rates and reduce consumer automotive insurance rates.

We believe there is a further opportunity to extend our asset tracking solutions beyond fleets to corporate assets and that there are opportunities outside of South Africa, specifically in developing countries and in areas or locations where there is a high density of vehicles fitted with our fleet management solutions and a need to track corporate assets. To take advantage of this opportunity, in 2017, we launched MiX Tabs, a highly effective asset tracking solution to keep track of valuable assets including generators, light towers, storage tanks and pumps.

Our Solutions

Our subscription-based solutions enable our customers to manage, optimize and protect their investments in their commercial fleets and personal vehicles efficiently. Our highly scalable multi-tenant architecture leverages GPS and other data transmitted from in-vehicle devices, primarily over cellular networks. In fiscal year 2018, we collected data on an average of approximately 128 million trips per month representing as many as 7.8 billion vehicle locations per month.

The key attributes of our solutions include:

• Highly scalable solutions. Our software solutions are built to scale and support geographically distributed fleets of any size. As of March 31, 2018 we provided services to more than 676,000 subscribers, with customers ranging from small fleet operators and consumers to large enterprise fleets with more than 10,000 subscribers.

• Robust portfolio of features addressing a full range of customer needs. We believe that we offer one of the broadest ranges of features for fleet and mobile asset management available. For example, for fleet efficiency, we offer vehicle tracking and analysis, fuel consumption and mileage analysis; for regulatory compliance, we offer compliance monitoring, hours of service tracking and fuel tax reporting; for driver improvement, we offer in-vehicle video monitoring and in-cab real-time driver feedback; for risk management, we offer driver scoring and analysis and journey management; and for safety and security, we offer vehicle and asset tracking, crash notifications and vehicle theft recovery.

• Insightful business intelligence and reporting. Our fleet management software is designed to provide our customers with insightful, actionable business intelligence on demand. For example, our premium fleet solution, MiX Fleet

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Manager, includes data reporting and analysis tools with more than 100 standard reports and the ability for customers to request custom fleet, vehicle and driver reports. We also offer a premium web-based business intelligence engine with enhanced analytics, reporting and data visualization tools for those customers seeking to perform highly granular analyses of large quantities of historical and real-time data and make the data available to customers in the format of their choice.

• Easily accessible, intuitive applications. Our web-based solutions are accessible from fixed and mobile computing devices, and provide vehicle and fleet information, dashboard views and alerts and the ability to generate analytical reports from an office or a remote location. Our customers can choose to access our solution via an intuitive web-based interface or through our custom mobile applications developed for the Android and iOS mobile platforms. Fleet operators can also use our software development kits and application program interfaces to integrate our solution directly with their software systems, such as transportation management software, route planning systems and enterprise resource management software.

• Software-as-a-service powered by a proven, reliable infrastructure. Our use of a multi-tenant SaaS architecture allows us to deliver fleet management applications that are highly functional, flexible and fast while reducing the cost and complexity associated with customer adoption. We support our SaaS delivered solutions with a proven infrastructure of redundant servers and other hardware located in secure third-party data centers. We have continued to maintain overall system uptime of over 99.8%, calculated over a rolling period of 5 years.

Our Offerings

We offer a range of solutions to address the needs of diverse customer segments. Our primary subscription-based offerings are:

• MiX Fleet Manager. MiX Fleet Manager is our premier commercial fleet management solution. It is built on a modern, scalable software platform for managing vehicle fleets of all sizes. Fleet management systems provide a wide variety of complex data pertaining to driver behavior and the location, status and operational activity of vehicles and fleets. MiX Fleet Manager is an interactive, web-based system providing secure access to this complex data in a simple, intuitive manner. MiX Fleet Manager gives users live and historical views of driver and vehicle performance information, including vehicle tracking and status information as well as alerts and notifications. Together with our integrated MiX Insight Reports, the solution provides fleet managers with actionable business intelligence in the form of reports and fleet analytics. Customers can also subscribe to premium subscription-based applications supported on MiX Fleet Manager, such as:

◦ MiX Insight Agility, an extension to the MiX Insight Reports suite that allows for dynamic data interaction in Microsoft Excel. Unlike static reports, users have the power to create and shape customized reports in the format they prefer.

◦ MyMiX, an innovative driver engagement platform that provides professional drivers with easy 24-hour access, via the web or a mobile device, to key information about their performance. Driver scoring, a module available on MyMiX, boasts a sleek, engaging and user-friendly interface accessible from iOS or Android mobile devices.

◦ MiX Vision, an on-road and in-vehicle video recording solution, that allows fleet managers to record video footage related to driving behavior and events. We believe MiX Vision addresses an important market need for in-vehicle surveillance, and MiX Vision is fully integrated with our premium fleet management solutions to enable event-driven or time based video recording. We have recently expanded the MiX Vision solution to optionally support two additional external cameras.

◦ MiX Rovi, an in-vehicle display and communications system allowing fleet operators to streamline their fleet operations through improved communication between drivers and their back offices. Customized data inputs are configured in MiX Fleet Manager and can be updated locally or remotely via the Internet. For example, a fleet operator of delivery vehicles can set custom data inputs for information relating to deliveries, such as quantities delivered and collected, times of arrival and departure or time spent at unscheduled stops. MiX Rovi is electronic logging devices legislation (“ELD”) compliant.

◦ MiX RIBAS, an in-cab driving aid that helps drivers improve their driving style. Using an unobtrusive system of symbols with red, amber and green status lights accompanied by audible warning tones, drivers receive feedback on their driving style in real-time, enabling customers to manage improvements in driver and vehicle performance and reductions in fuel consumption and accident rates. 

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◦ MiX Hours of Service (“Hours of Service”), allows for the real-time monitoring and compliance of legislated or regulated hours of work for the United States, Canada and Europe. Recently mandated ELD legislation in the United States requires truck drivers to log their hours of service electronically. European customers can also use our optional MiX 3D service to download and archive digital tachograph data as required by European law. This add-on has also been extended to accommodate regions with non-regulated driving hours legislation, such as the Middle East and Africa, allowing fleet operators to easily set their own driving hours rules and measure activity to reduce fatigue related incidents.

◦ MiX Journey Management, offers an easy-to-use electronic alternative to paper-based systems that ensures all risks relating to journeys are readily visible to decision makers when it matters most. MiX Journey Management suits fleet operators across diverse industries, and is ideal for those with large fleets of vehicles that travel long distances and carry passengers or cargo.

◦ MiX Go, is a mobile phone based task management solution for effective communication and engagement with mobile fieldworkers, combining all the benefits of navigation, tracking and template-driven e-forms. Managers can create tasks for their employees via the MiX Fleet Manager platform, and track the progress of these tasks from start to finish.

• Matrix. Our Matrix suite of mobile asset management solutions is designed for entry-level fleets and consumers. The Matrix range of solutions can provide real-time and historical vehicle tracking and positioning, unauthorized vehicle use alerts, panic emergency response, crash alerts, driver behavior alerts, fuel tax logbooks and vehicle maintenance notifications. Users can access their Matrix subscription functionality via a web-based interface or our mobile applications.

• Beam-e. Beam-e leverages our large network of subscribers as a crowdsourcing platform to locate vehicles without the expense of utilizing a traditional cellular network connection. Each Beam-e device communicates with other nearby devices in order to form a crowdsourced network that interfaces with our systems. Rental car companies, consumers and owners of high-value mobile assets can use Beam-e to provide entry-level tracking and recovery services at an upfront cost and monthly subscription price point that is well below the cost of traditional vehicle tracking solutions. We currently offer Beam-e in South Africa and are evaluating opportunities for expansion into other geographies which are similar to South Africa.

• MiX Asset Manager. We recently introduced a suite of wireless asset tracking products including MiX Tabs, which isa highly effective solution, based on our Beam-e technology. By keeping track of valuable assets including generators, light towers, storage tanks and pumps, our asset management solution allows for increased visibility of corporate assets, resulting in improved asset utilization and reduced loss.

Customers deploy our solutions to collect real-time data from their vehicles and transmit this information to our secure third-party data centers for processing. We generally design our own hardware and firmware in order to ensure their modularity, quality and interoperability with our core subscription offerings. We outsource the manufacturing of these devices and seek to drive device costs down over time in order to reduce the upfront investment required by our customers. In addition to sales of these devices to customers, we offer customers the option of bundling our devices as a full service option, further reducing the capital investment required to access our solutions.

We believe our modular, proprietary designs and control over the entire ecosystem gives us an advantage over competitors who rely on third-party commodity in-vehicle devices because we are able to provide more customized solutions through our proprietary devices. Currently we have three types of in-vehicle devices, namely one for enterprise fleet management, and one for consumer vehicle management and light fleet management and Beam-e or MiX Tabs for entry-level vehicle and asset tracking and recovery.

Principal features associated with our subscription-based offerings include the following:

• Vehicle tracking. Our vehicle tracking functionality allows our customers to pinpoint the exact locations of vehicles using real-time data. Notifications about vehicle activity and status are accessed through a web-based interface or our mobile applications. Our customers also have the ability to access historical tracking data for analysis.

• Location management. Our location management and geofencing features allow customers to easily designate geographic areas in which vehicles are allowed or not allowed to travel, or areas deemed dangerous or high risk. Customers receive notifications when a vehicle enters or exits unauthorized regions or locations.

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• Vehicle security. Our vehicle security solution provides our customers with security options tailored to individual requirements. We offer vehicle tracking and recovery features, providing safety and security for our customers and their vehicles and helping to reduce the costs associated with theft.

• Reporting. We provide our customers with on-demand reports enabling access to a wide range of fleet data. Our reports contain detailed information about driver behavior, vehicle location, idle time, miles and hours driven, average speed, acceleration, crash analysis and vehicle diagnostics. We also offer premium data visualization and business intelligence tools.

• Regulatory compliance. Customers can use our solutions to assist in regulatory compliance, for example hours of service and fuel tax reporting.

• Vehicle and driver management. We provide functionality for customers to manage licenses, registrations, certifications, in-vehicle video monitoring and other vehicle and driver requirements.

• Messaging. With MiX Rovi and MiX Go, fleet operators can communicate efficiently and effectively with their drivers. Custom menus direct driver workflow, jobs and navigation, ensuring drivers arrive at the correct destination and improving communication between fleet operators and their drivers.

• Mobile access. We provide information to users via a variety of mobile platforms, including iOS and Android, and provide our customers with access to actionable business intelligence on their vehicles and mobile assets from the office or remotely.

• Application integration. Our software development kits allow our customers to integrate our applications with their existing enterprise software systems and allow for increased customization of our fleet reports, vehicle tracking alerts and location management features.

• Real time monitoring. We offer active real time driver behavior monitoring and risk management services.

Our Key Competitive Strengths

The markets in which we operate are highly competitive and fragmented. We believe that the following attributes differentiate us from our competitors and are key factors to our success:

• Globalized sales, distribution and support capabilities. We currently maintain a direct and indirect sales and support presence, with localized application support in multiple languages, in countries across Africa, Australasia, Europe, the Middle East, North America and South America. We believe our global presence gives us an important advantage in competing for business from multinational enterprise fleet customers such as Baker Hughes, Bechtel Corporation, BP, Chevron, DHL, G4S, Halliburton, LafargeHolcim, Nestlé, PepsiCo, Praxair, Scania, Schlumberger, Shell, The Linde Group, Total and Weatherford, who often prefer to consolidate disparate fleet management systems.

• Solutions adaptable to multiple customer segments. We believe that by leveraging our common core technologies, personnel and systems, we can cost-effectively develop and sell a range of subscription-based fleet and mobile asset management solutions that are designed to meet the functionality and price needs of multiple customer segments, including fleet operators and consumers. Our fleet management solutions include targeted functionality to address the distinct needs of key industry segments, including oil and gas, transportation and logistics, government and municipal, bus and coach, and rental and leasing, as well as for the needs of consumers. We believe that offering a range of subscription-based solutions maximizes our ability to serve the addressable market and offers an appealing value proposition to our customers, while distinguishing ourselves from competitors that offer a single, one-size-fits-all solution.

• Focus on safety and security. Most of our solutions incorporate safety and security features that enable our customers to enhance their drivers’ and passengers’ personal safety, encourage safe driving behavior and protect vehicle investments. We also offer web-based driver training, proactive journey management and other related services to provide a turnkey safety and security solution to manage risk and fatigue-related incidents. Our differentiated safety and security features have particularly strong appeal to customers in regulated industries, such as oil and gas, customers in industries exposed to liability concerns, such as bus and coach, and customers operating in high crime regions. We perform training and land transport assessments for customers to assist them in establishing and maintaining safety levels. We believe our safety and security offerings also help our customers to reduce operating costs associated with the training of drivers. 

• Track record of innovation. Our investment in software development is core to our business strategy. Our software teams employ an agile software development methodology. We have made a significant investment in product development, and we have routinely been among the first to market with innovative solutions and features that cater to the needs of our customers. For example, in fiscal year 2016, we released MiX Insight Agility, an Iridium alternative

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in addition to our traditional Inmarsat Satcomms solution, on-line Journey Management, extended our Hours of Service solution for non-regulated markets and MiX Go, a mobile phone based task management solution. In fiscal year 2017, we introduced MiX Tabs for non-powered asset management that leverages the underlying technology that powers Beam-e, we enhanced MiX Vision by adding support for two additional cameras, and we released a server-side events module. In fiscal year 2018, we extended our Hours of Service solution to support the requirements of the ELD legislation, revamped large parts of our back-end database system and completed the development of our new generation hardware platform which we will release in fiscal year 2019. This was over and above the continued evolution of our existing products such as MiX Fleet Manager, MiX Insight Reports, MiX Journey Management and MiX Go which were all enhanced during the year.

• Longstanding, established market position. We have a 22-year history, a geographically diverse sales and marketing footprint, a large established network of distributors and dealers, and a large base of satisfied customers. Our robust and referenceable customer base, including numerous Forbes Global 2000 enterprises, is a critical selling point to both large enterprise fleets and small fleet operators.

Growth Strategy

We intend to expand our market leadership by:

• Acquiring new customers and increasing sales to existing customers. We believe the market for fleet and mobile asset management solutions is large and growing, creating a significant opportunity for us to expand our customer base. Additionally, we believe we have the opportunity to expand our fleet management market share among our existing customer base by demonstrating our value proposition, growing with the customer, introducing new and innovative value-added solutions and displacing legacy fleet management solutions. 

• Expanding our geographic presence. We market and distribute our solutions directly and through a global network of more than 120 dealers outside of South Africa. We are expanding our penetration in attractive geographic regions, such as Brazil, and continue to expand our network of strategic and sales distribution partners in other regions of the world. In addition to our primary hosted data centers that serve multiple geographies, we also established two hosted data centers in specific countries where local conditions require that the data be retained in-country.

• Broadening our customer segment focus. We currently have customers across numerous industry segments, with the resources of our direct sales organization focused on premium customers in certain key segments, including oil and gas, transportation and logistics, government and municipal, bus and coach, and rental and leasing. In the future, we may increase our product development initiatives and sales and distribution efforts in other industry segments, such as service fleets, and in other customer segments, such as small business fleets and as well as mobile asset management. We regularly evaluate opportunities to expand our target customer focus.

• Continuing to introduce new, innovative solutions to address market demand. In fiscal year 2016, we added Journey Management, MiX Insight Agility, MiX Go, an Iridium alternative in addition to our traditional Inmarsat Satcomms solution and extended our Hours of Service solution for non-regulated markets. In fiscal 2017, we introduced an innovative asset positioning system called MiX Tabs and extended our MiX Vision solution to support two additional external cameras. In fiscal year 2018, we extended our Hours of Service solution to support the requirements of the ELD legislation, revamped large parts of our back-end database system and completed the development of our new generation hardware platform which we plan to release in fiscal 2019. We are continually innovating and extending our solutions portfolio based on our assessment of market demand and trends.

• Pursuing strategic acquisitions. Our industry is highly fragmented. Including the OmniBridge acquisition, we have consummated six acquisitions worldwide since our listing on the JSE in November 2007. We intend to selectively evaluate acquisition opportunities in certain geographic regions and industry segments.

Sales and Marketing

We offer our solutions in approximately 120 countries through a combination of our direct and indirect marketing efforts. Our sales and marketing strategy is segmented by geographic region and customer type in order to cost effectively target and acquire new customers. In certain regions, we sell subscriptions of our fleet management solutions to large enterprise fleets through our direct sales force. In other regions, and for sales to small fleet operators and consumers, we work with an extensive distribution network of regional partners and national distribution dealers. Through our central services organization headquartered in South Africa, we provide common marketing, product management, technical and distribution support to each of our regional sales and marketing operations.

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The following is a brief description of the main categories of our sales and marketing efforts.

• Direct Sales. We focus our direct selling efforts on targeting, acquiring, servicing and upselling our premium solutions to large enterprise fleet operators and small fleet operators. We maintain sales offices in Australia, Brazil, South Africa, Thailand, Uganda, the United Arab Emirates, the United Kingdom and the United States. These offices sell directly to large enterprise fleet operators and small fleet operators in their respective regions and are also responsible for channel management of fleet solution distribution partners throughout their regions. Our sales and marketing approach with fleet customers is generally based on a combination of return on investment and the improvements in safety and security delivered by our solutions. Our South African sales offices also sell directly to consumers.

• Indirect Sales – Enterprise Fleet. We have over 130 fleet dealers supporting customers in approximately 120 countries worldwide. These dealers are responsible for sales, marketing, technical support, installation and training of customers in their regions. We operate a partner accreditation program in order to assure a consistent customer experience across our dealers worldwide. We also offer marketing and support services to our dealers in order to enhance their selling success. We believe our large network of dealers provides us with a geographically diverse, highly effective channel for reaching local customers in countries where we do not currently have a direct presence.

• Indirect Sales – Small Fleet Operators and Consumers. We currently manage a network of more than 900 distribution partners for our small fleet operator and consumer customers. Our distribution partners include automobile dealers, aftermarket automotive parts and service suppliers, automobile insurers and retailers. We believe our indirect distribution strategy for the small fleet operator and consumer markets provides us with a differentiated, cost-effective customer acquisition and sales model.

Our global network of independent dealers and distributors is an important component of our sales strategy. Our dealers and distributors account for a substantial percentage of our total sales, and sales generated by certain dealers and distributors individually represent a meaningful percentage of our revenue. The terms of our agreements with our dealers do not usually include minimum purchase obligations, are specific to a geographic territory and are primarily non-exclusive. They generally have a fixed initial term, after which they may be renewed or continue indefinitely if not terminated. This is subject to the right of either party to terminate on specified notice generally ranging from 90 days to one year, or for breach. Similarly, our distributor agreements do not include minimum purchase obligations and consist principally of a commission agreement applicable to sales generated by the distributor.

Our revenue by geographic segment is set out in note 5 of the consolidated financial statements included in this annual report.

Customers

We currently serve a highly diverse customer base, including approximately 6,000 fleet operators which represented 73% of our subscription revenue for fiscal year 2018, as well as individual consumers. We target sales of our enterprise fleet management solutions to customers who desire a premium solution, generally for large fleets, which we define as being fleets of 50 or more vehicles. Large fleets comprised 87% of our fleet customer subscriptions as of March 31, 2018. We also offer a range of subscription-based fleet and mobile asset management solutions optimized for the needs and price points demanded by small fleet operators and consumers.

Our current customer base spans numerous industry categories and customer segments, including oil and gas, transportation and logistics, government and municipal, bus and coach, and rental and leasing. No individual customer represented more than 6.0% of our subscription revenues for fiscal year 2018. For fiscal years 2018, 2017 and 2016, our top 10 customers represented 24.5%, 24.4%, and 24.5%, respectively, of our total subscription revenue.

The following is a representative list of some of our largest customers:

• Baker Hughes

• Barloworld

• Basic Energy

• Bidvest Group

• C&J Energy Services

• Chevron

• DHL

• Eskom

• Europcar

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• G4S

• Go Ahead Group

• Halliburton

• PepsiCo

• Schlumberger

• Total

• Unitrans

We believe that we have a satisfied customer base as evidenced by our customer retention rate and the favorable results of our customer surveys. In fiscal year 2018, among our more than 800 large fleet operator customers, we experienced an annual customer retention rate in excess of 95%. Across our entire subscriber base, including our range of smaller fleet and consumer subscribers, we experienced a subscriber retention rate in excess of 78% during fiscal year 2018. We maintain a strong focus on monitoring and continuously enhancing our customer satisfaction levels.

Service and Support

Installation of our solutions in our customers’ vehicles is generally provided by us or our third-party network, which includes dealers and distributors and installation partners. Customer care and technical support services are provided by our offices in Australia, Brazil, South Africa, the United Arab Emirates, the United Kingdom, Thailand, Romania and the United States. In many cases, our dealers and distributors also provide customers with tier-one customer support services. Our regional offices and dealers and distributors are, in turn, supported by our central technical support team in South Africa that handles any escalated issues. Existing customers can also access customer and technical support directly through our web or mobile applications. Our technical support department is composed of a team of highly skilled staff who are familiar with all of our products, including our entire range of software and service solutions as well as our hardware.

We offer warranties of varyingduration on our products. Product warranties are predominantly for a one-year period but periods of up to three years are provided in certain geographic locations. Our Beam-e product carries a lifetime warranty (to the extent that the unit remains in the vehicle into which it was installed for the original subscriber). Warranty expenses are not a significant portion of our total costs.

Research and Development

Our development group consists of 133 full-time staff responsible for software, hardware and firmware development and quality assurance. Our primary development group is based in Stellenbosch, South Africa, and we have additional development resources in Johannesburg, South Africa, as well as the United States. Our software development teams employ an agile development methodology, while our engineering teams use traditional waterfall project management methods. During fiscal years 2018, 2017 and 2016, we invested R130.2 million, R142.1 million and R115.9 million, respectively, in research and development.

Our investment in development is core to our business strategy. Our research and development efforts principally involve software development, firmware development, hardware design and related test equipment. In addition, we have enhanced certain of our hardware components to extend their functionality and reduce manufacturing costs.

We have been successful in expanding our product offerings over time through internal development and select acquisitions. Highlights from the fiscal year 2018 include:

• An extension to our Hours of Service solution to support the requirements of the ELD legislation in the United States.

• The revamp of a large part of our back-end database system to reduce cost while supporting scalability and growth.

• We completed the development of our new generation hardware platform which we will release in fiscal year 2019.

• More than 15 platform updates with enhancements and extensions to all major product lines including MiX Fleet Manager, MiX Hours of Service, MiX Insight Reports, MiX Journey Management and MiX Go.

We are ISO 9001 certified with a formalized quality policy and consistent monitoring of internal processes, supplier and solution performance. We outsource all hardware manufacturing to third parties.

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Technology

Our solutions are offered using a multi-tenant SaaS architecture that scales rapidly to support additional new subscribers through the addition of incremental data processing and storage capacity. This architecture flexibility allows us to sustain high levels of uptime without degradation of system performance, despite significant subscriber growth. Our existing architecture and infrastructure has been designed with sufficient capacity to meet our current and anticipated future needs. Our subscription-based fleet and consumer service offerings are designed to be accessible via a standard web browser or mobile device application.

Our solutions include a proprietary in-vehicle device that incorporates off-the-shelf components, generally including a cellular modem, GPS receiver and memory capacity sufficient to run our firmware, which gathers vehicle location, time, speed, ignition status, miles driven and various vehicle and driver statistics. This information is collected at a predefined frequency and then sent to our receivers at secure third-party data centers, generally via a commercial cellular network. The information is then processed and delivered to our customers through our web-based and mobile device applications. Our solutions enable our fleet customers to access large volumes of historical and real-time data, monitor the location and status of their fleet vehicles and drivers, view a wide selection of reports and key performance indicator dashboards and generate valuable, actionable business intelligence.

We store data, host our solutions and serve all of our customers from third-party data centers located in Algiers in Algeria, Sydney in Australia, Muscat in Oman, Dublin in Ireland and Virginia in the United States. In addition to data hosted at third party data centers, we have transitioned the vast majority of our data to cloud-based hosting service platforms such as AWS. Our data management facilities provide us with both physical security, including manned security, biometric access controls and systems security, including firewalls, encryption, redundant power and environmental controls. We believe that our third-party hosting facilities are adequate for our current needs and that suitable additional capacity will be available as needed to accommodate planned expansion of our operations.

Intellectual Property

We rely primarily on trade secret laws, confidentiality agreements, confidentiality procedures and contractual restrictions to establish and protect our intellectual property rights. We also rely to a limited extent on patent, trademark and copyright law. A patent covering certain aspects of our Beam-e product was issued in South Africa during fiscal year 2014 and a patent covering a method for driver verification was issued during fiscal year 2015. A further application for an asset tracking system and method is pending in Brazil.

We typically enter into non-disclosure and confidentiality agreements with our employees, licensees and independent consultants and other advisors. We also seek these protective agreements from some of our suppliers and subcontractors who have access to sensitive information regarding our intellectual property.

Competition

The rapidly evolving market for our solutions is competitive and highly fragmented, particularly by geography and customer segment. We currently compete with numerous providers of fleet and mobile asset management solutions that range from small, regional providers to midsized multinational providers, such as Teletrac Navman and Geotab, to large global providers, such as Trimble and Omnitracs. While we currently only compete with Trimble and Omnitracs on a limited basis, these two competitors are well established companies with significantly greater financial and other resources than we have. Many of our competitors offer fleet or mobile asset management software solutions to particular industry segments or in limited geographic regions. For example, we compete with TomTom and Masternaut in Europe, we compete with Astrata for oil and gas fleet opportunities in the Middle East, and we compete with Netstar and Ctrack by Inseego, Tracker and Cartrack for consumer and small fleet mobile asset management deployments in South Africa, respectively.

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We believe the principal competitive factors in our market include the following:

•functionality and reliability;

•total cost of ownership;

•breadth and depth of application functionality for fleet deployments;

•product performance;

•interoperability;

•brand and reputation;

•customer service;

•distribution channels, including a global footprint and the ability to service multinationals; 

• regional geographic expertise including localized language support and support for applicable government regulations;

• size of customer base and reference accounts within key industry segments;

• ability to deliver ongoing value and return on investment; 

• ease of deployment and ease of use;

• relevant industry domain expertise and functionality; and

• the financial resources of the vendor.

We believe that we compete favorably on the basis of these factors.

Employees

The following table presents the breakdown of our employees at the date indicated:

	As of March 31,
	2018	2017	2016
South Africa	840	833	866
United States	58	51	62
United Kingdom	53	56	49
United Arab Emirates	34	47	52
Australia	35	36	37
Brazil	22	17	14
Uganda	4	5	5
Romania	5	10	3
Thailand	3	1	1
Total	1,054	1,056	1,089
Full-time	983	1,032	1,067
Part-time	71	24	22
Total	1,054	1,056	1,089

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Legal Proceedings

Judicial Review Proceedings against the Minister of Science and Technology

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

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

Since the introduction of the DST pre-approval process, the Group has recognized in the income statement cumulative tax incentives in addition to the incurred cost of R20.5 million in respect of S11D deductions, of which R2.3 million was recognized in the current financial year. R17.7 million relates to deductions in respect of development project expenditure which has been approved by the DST. R2.8 million relates to an uncertain tax position in respect of projects where approvals have not yet been received from the DST. If the Group is unsuccessful in this regard, the Group will not recover the R2.8 million raised at March 31, 2018.

Competition Commission Matter

We and a number of our distributors are currently the subject of an investigation by the Competition Commission of South Africa (the “Commission”) into whether such parties are in a competitive relationship for downstream customers and have engaged in market division.  If the Commission, following its investigation, believes there to be evidence of a contravention, it can issue a notice of referral to the Competition Tribunal of South Africa and seek financial penalties against us.  We have cooperated fully with the investigation and expect that the matter will ultimately be resolved in our favor; however, we cannot predict the timing of a resolution or the ultimate outcome of the investigation.

From time to time, we have been and may become involved in further legal proceedings arising in the ordinary course of our business.

Government Regulation

We are subject to laws and regulations relating to our business operations, including laws applicable to providers of Internet and mobile services both domestically and internationally, as we collect data, including personal data, disseminate data and, in some cases, sell data. The application of existing domestic and international laws and regulations relating to issues such as user privacy and data protection, marketing, advertising, inadvertent disclosure and consumer protection in many instances is unclear or unsettled.

The transmission of data over the Internet and cellular networks is a critical component of our SaaS business model. Additionally, as cloud computing continues to evolve, increased regulation by federal, state or foreign agencies becomes more likely, particularly in the areas of data privacy and data security. In particular, the dynamic regulatory environment in the European Union is resulting in additional and increasingly complex regulation in these areas and we believe that the similarly dynamic regulatory environment of the United States, will follow suit. New laws governing data privacy and data security will furthermore be enacted in many other regions. Laws governing the solicitation, collection, processing or use of data could impair our ability to manage and report on customer data, which is integral to the delivery of our SaaS solutions. Increased regulation and the expansion of our business and operations globally have required us to devote legal and other

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resources to address this regulation. We have updated and will continue to evaluate our group data protection and security policies, charters and procedures, to assist in maintaining data privacy and data security in line with international practices.

Data privacy regulations and applicable laws in the United States, the European Union or elsewhere will regulate our ability to use the data we gather from our customers and increase the cost of doing business and could result in claims being brought by our customers or third parties. As discussed below, South Africa, which is currently our largest market, is expected to adopt data privacy legislation in the near future.

South African Regulatory Environment

The Protection of Personal Information Act, No. 4 of 2013 (the “POPI Act”) was promulgated into law in November 2013 in South Africa. Certain sections of the POPI Act, came into effect on April 11, 2014. The remaining sections of the POPI Act will commence on a date to be determined by the South African President, with the general assumption being that such date will be before the end of 2018 calendar year. The POPI Act allows for a one year transition period from its commencement for all persons to comply with its requirements. We have evaluated the potential impact of the POPI Act, taking into account our existing and planned privacy and data security practices and procedures and we do not believe that the POPI Act's implementation will have a material impact on our business.

A number of existing South African statutes regulate electronic communications, including the Electronic Communications Act, No. 36 of 2005 as amended, and the Electronic Communications and Transactions Act, No. 25 of 2002, which apply to a number of aspects of our business. These statutes regulate the generation, communication, production, processing, sending, receiving, recording, retaining, storing, displaying and use of any information, document or signature by or in electronic form.

The Private Security Industry Regulation Act, No. 56 of 2001 (the “PSIRA Act”) also applies to our South African business and governs the vehicle recovery industry in South Africa. The PSIRA Act was enacted for the purposes of, for example: (i) the achievement and maintenance of a trustworthy and legitimate private security industry which acts in terms of the principles contained in the Constitution of the Republic of South Africa, Act No. 108 of 1996, and other applicable law, and is aimed at ensuring that there is greater safety and security in the country and; (ii) to regulate the private security industry and to exercise effective control over the practice of the occupation of security service providers in the public and national interest and the interest of the private security industry itself.

Broad-Based Black Economic Empowerment

The South African government has established a legislative framework for the promotion of Broad-Based Black Economic Empowerment. Achievement of B-BBEE objectives is measured by a scorecard which establishes a weighting for the various components of B-BBEE.

The B-BBEE Codes were reviewed by the South African Department of Trade and Industry and a new set of B-BBEE Codes were promulgated in October 2013. The new B-BBEE Codes came into effect on May 1, 2015 and have different requirements and emphasis than the previous codes. In addition to the B-BBEE Codes, industry charters apply to certain of our entities. The Department of Trade and Industry published proposed amendments to the B-BBEE Codes, which were made available for 60 days of public commentary, ending on May 29, 2018. The proposed amendments will primarily influence the skills development pillar in promoting job creation for specific targeted youth groups by enabling workplace experience.

It is important for us to achieve applicable B-BBEE objectives. B-BBEE objectives are pursued, in significant part, by requiring parties who contract with corporate, governmental or quasi-governmental entities in South Africa to achieve B-BBEE compliance through satisfaction of an applicable scorecard. Parties improve their B-BBEE contributor level when contracting with businesses that have earned good B-BBEE contributor levels in relation to their scorecards.

We have two material end-customers, which previously required MiX Telematics Enterprise SA Proprietary Limited to maintain a B-BBEE contributor level 3 as measured under the new B-BBEE Codes. The value of these contracts represented 3.4% of our total revenue for fiscal year 2018. MiX Telematics Enterprise SA Proprietary Limited has attained the agreed compliance targets in fiscal year 2018. Failing to achieve applicable B-BBEE objectives could jeopardize our ability to maintain existing business or to secure future business from corporate, governmental or quasi-governmental customers that could materially and adversely affect our business, financial condition and results of operations.

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U.S. Regulatory Environment

In addition to its regulation of Internet and, by extension, many SaaS providers, the Federal Trade Commission (“FTC”), has been asked by consumer groups to identify practices that may compromise privacy and consumer welfare; examine opt-in procedures to ensure consumers are aware of the type of data being collected and how it will be used; and create policies to halt abusive practices. The FTC has expressed interest in particular in the mobile environment and services that collect sensitive data, such as location-based information, which could conceivably be expanded to include transceiver products such as our in-vehicle devices. Although much of the FTC’s focus is on consumer protection, to the extent that our clients use our systems to monitor employee movement, the FTC may assert jurisdiction. In addition to FTC scrutiny on the consumer side, many fleet drivers in the U.S. may belong to a union, which triggers some degree of oversight from the National Labor Relations Board (“NLRB”). The NLRB has taken increasing notice of the privacy rights on unionized employees, and future NLRB rules could affect our business model or the way in which our corporate clients use our solutions.

Our business is affected by U.S. federal and state laws and regulations governing the collection, use, retention, sharing and security of data that we receive from and about our users. In recent years, regulation has focused on the collection, use, disclosure and security of information that may be used to identify or that actually identifies an individual, such as a name, address and/or email address. Although mobile and Internet advertising privacy practices are currently largely self-regulated in the United States, the FTC has conducted numerous discussions on this subject and suggested that more rigorous privacy regulation is appropriate, possibly including regulation of non-personally identifiable information which could, with other information, be used to identify an individual. The commercial use of our mobile technology may reduce exposure to FTC regulation and enforcement, but geo-location and similar services are receiving increased regulatory interest and as such may affect how we conduct our business in the future.

Finally, we use GPS satellites to obtain location data for our in-vehicle devices. The satellites and their ground control and monitoring stations are maintained and operated by the U.S. Department of Defense, which does not currently impose regulations on the ability to access location data. We cannot assure that it will not do so in the future. Any regulatory hurdles could impede the functionality and/or cost of our solutions, which could adversely affect our business. The communication systems that we use to host and transmit data may be subject to security incidents, which may also subject the Company to regulatory enforcement and client pressures.

European Union Regulatory Environment

We are subject to regulation under the laws of the European Union. Of particular relevance with regard to the regulation of our solutions are matters of data protection and privacy. More broadly, any processing of personal data in the course of the provision of services is governed by the European Union data protection regime. The framework legislation at a European Union level in respect of data protection, Directive 95/46/EC, was superseded by the GDPR, effective May 25, 2018. The GDPR creates a single legal framework that applies across all EU member states, and in some circumstances, to processors in a state outside of the EU. The GDPR introduced direct compliance obligations for data controllers and data processors. National Data Protection Agencies (“NDPAs”) are now able to impose fines for violations ranging from 2% to 4% of annual worldwide turnover, or 10 million to 20 million Euro, whichever is greater. NDPAs have the power to carry out audits, request information, and obtain access to premises. Businesses must be able to demonstrate that the personal data of any data subject can be lawfully processed on one of the six specified grounds. Where the ground is that the data subjects gave consent to the processing, the processor bears the burden of proof that such consent was validly obtained. Additionally, where consent is the ground for processing the data, the data subject has the right to withdraw consent at any time. We believe that many businesses will rely on the specified ground of “legitimate interest” of that business or of a third-party as the basis of lawful data processing.

The GDPR adopts a risk-based approach to compliance, under which businesses bear responsibility for assessing the degree of risk that their processing activities pose to data subjects. Businesses are required to perform data protection impact assessments before any processing that uses new technology and is likely to result in a high risk to data subjects. The GDPR requires businesses to maintain records of their processing activities. Clear rules around data breach notifications and the processing of personal data in such a manner that the personal data can no longer be attributed to a specific individual have been set out by the GDPR. In addition, under the GDPR, data subjects have new rights, for example, the right to request that businesses delete their personal data (the right to be forgotten); to object to their personal data being processed; and to obtain a copy of their personal data within a set time frame.

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It is anticipated that, notwithstanding Brexit, GDPR will continue to apply to the U.K., as the U.K. parliament enacted the Data Protection Act 2018 on May 25, 2018, which enforces the provisions of GDPR independently of the U.K.'s membership of in the EU.

Australian Regulatory Environment

The Australian Privacy Principles contained in the Privacy Act of 1988 (the "Privacy Act") regulate the collection, use, retention, disclosure and security of personal information. Personal information is defined as “information or an opinion about an identified individual, or an individual who is reasonably identifiable, whether the information or opinion is true or not or is recorded in a material form or not”. Personal information includes location-based information where the information enables the location of an individual to be ascertained. Australian privacy laws in general prohibit the transfer of personal information outside Australia unless an exemption applies, such as the individual to whom the information relates has consented to the transfer. In some circumstances, the disclosure will be permissible if there is a data transfer agreement in place between the transferor and the transferee under which the transferee agrees to handle the information in accordance with the Australian Privacy Principles. Amendments to these laws imposing stricter regulation became effective in March 2014. Subject to a few exemptions, the amendments require the transferor to take such steps as are reasonable in the circumstances to ensure that an overseas recipient does not breach the Australian Privacy Principles and the transferor may be held responsible for any breaches of Australian privacy laws when personal information is transferred outside Australia, regardless of whether there is a data transfer agreement in place.

In February 2018, Part IIIC of the Privacy Act was amended and the Notifiable Data Breach (“NDB”) scheme enacted.  The NDB scheme introduced obligations to notify individuals whose personal information is involved in a data breach that is likely to result in serious harm and includes recommendations about steps individuals should take in response to the breach.

4C. ORGANIZATIONAL STRUCTURE

We are a holding company and conduct substantially all of our business through our operating subsidiaries. Note 39 to our consolidated financial statements contains our subsidiary names, principal activity, place of incorporation and legal ownership at March 31, 2018. Up until the filing date, there has been no change in our organizational structure since March 31, 2018.

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4D. PROPERTY, PLANT AND EQUIPMENT

As of May 31, 2018, we owned or leased the following properties, used primarily for office space:

Property	Owned or Leased	Square Footage
South Africa
Howick Close, Waterfall Park, Midrand, South Africa	Leased	46,499
Howick Mews, Waterfall Park, Midrand, South Africa	Leased	11,364
Blaauwklip Office Development & Park, Stellenbosch, South Africa	Owned	17,158
Blaauwklip Office Development & Park, Stellenbosch, South Africa	Leased	10,936
7/8 Holwood Crescent, La Lucia Ridge, South Africa	Leased	6,953
Unit B6, Arden Grove, Montague Gardens, Cape Town, South Africa	Leased	2,196
21 Van Rensburg Street, Nelspruit, South Africa	Leased	915
United States
Suite 100 and 310, 750 Park of Commerce Blvd., Boca Raton, Florida, USA	Leased	10,260
Suite 110, 16770 Imperial Valley Drive, Houston, Texas, USA	Leased	2,500
Suite 27, 1181 S Rogers Circle, Boca Raton, Florida, USA	Leased	2,326
United Kingdom
6170 & 6180, Birmingham Business Park, Solihull Parkway, Birmingham, UK	Leased	5,280
Suites 39-40 Cherry Orchard North, Kembrey Park, Swindon, Wiltshire, UK	Leased	2,906
Australia
Suite 3, 281 Hay Street, Subiaco, Australia	Leased	5,091
Suite 1, 28 Fortescue Street, Spring Hill, Brisbane, Queensland, Australia	Leased	1,679
United Arab Emirates
Building 6EA, Office 610, Dubai Airport, Freezone, Dubai, United Arab Emirates	Leased	3,592
Brazil
543 Doutor Costa Junior Street, Sao Paulo, Brazil	Leased	4,306
Thailand
9th Floor, 571 RSU Tower, Sukhumvit Road, Klong Ton Nue, Wattana, Bangkok, Thailand	Leased	215
Uganda
7th Floor, Course View Towers, Kitane Road, Kampala, Uganda	Leased	570
Romania
3rd floor, Office 314, Charles de Gaulle Plaza, 15th Charles de Gaulle Square, Sector 1, Bucharest, Romania	Leased	91

We believe that our facilities are adequate for our current needs and that suitable additional space will be available as needed to accommodate any potential expansion.

ITEM 4A. UNRESOLVED STAFF COMMENTS

None.

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ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

5. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements as at March 31, 2018 and 2017 and for the fiscal years ended March 31, 2018, 2017, and 2016, and the accompanying notes included in this annual report, and the financial information set forth under “Item 3A. Selected Financial and Operating Data” as at and for the fiscal years ended March 31, 2018, 2017, 2016, 2015 and 2014.

We prepare our consolidated financial statements in accordance with IFRS. The preparation of our consolidated financial statements requires us to make certain assumptions and estimates that affect the amounts we record as assets, liabilities, revenues and expenses in the years and periods addressed and these are subject to certain risks and uncertainties. Our future results may vary materially from those indicated as a result of the risks that affect our business, including, among others, those identified in “Forward-Looking Statements” and “Item 3D. Risk Factors”.

Overview

We are a leading global provider of fleet and mobile asset management solutions delivered as SaaS. Our solutions deliver a measurable return by enabling our customers to manage, optimize and protect their investments in commercial fleets, mobile assets or personal vehicles. We generate actionable intelligence that enables a wide range of customers, from large enterprise fleets to small fleet operators and consumers, to reduce fuel and other operating costs, improve efficiency, enhance regulatory compliance, promote driver safety, manage risk and mitigate theft. Our solutions rely on our proprietary, highly scalable technology platforms, which allows us to collect, analyze and deliver information based on data from our customers’ vehicles. Using an intuitive, web-based interface, our fleet customers can access large volumes of historical and real-time data, monitor the location and status of their drivers and vehicles and view a wide selection of reports.

In fiscal year 2018, we collected data on an average of approximately 128 million trips per month representing as many as 7.8 billion vehicle locations per month. We have a global presence, with customers located in approximately 120 countries across six continents for whom we collectively tracked and managed over 676,000 subscribers at March 31, 2018.

We were founded in 1996 in Johannesburg, South Africa, as Matrix Vehicle Tracking Proprietary Limited, and since that time, we have grown both organically and through acquisitions. In 2007, we acquired OmniBridge, which provided fleet management services in both the South African and international markets. In November 2007, we listed our shares on the JSE, in order to facilitate the OmniBridge acquisition. In 2008, we acquired Tripmaster Corporation, located in the United States, Safe Drive (including Safe Drive International Proprietary Limited), located in Australia and Safe Drive FZE, located in the United Arab Emirates. These acquisitions extended our geographic reach, broadened our customer relationships and expanded our driver safety and training solution offerings. In May 2012, we acquired Intellichain, located in South Africa, as part of our strategy to broaden our transportation management software functionality. On August 9, 2013, following a successful United States IPO, the Company’s ADSs were listed on the NYSE and are traded under the symbol MIXT. In December 2013, we acquired a proprietary software development business from Roitech Proprietary Limited, located in South Africa. The acquisition enhanced and broadened our fleet management smart phone application offerings. On November 1, 2014, we acquired the operating business of Compass, a South Africa based provider of specialized fleet management solutions in Southern Africa that are delivered off the Group’s hardware and software platform. These specialized fleet management solutions complement the Group’s existing fleet management solutions and the acquisition broadens the array of services offered to current and future fleet management customers.

We derive the majority of our revenues from subscriptions to our fleet and mobile asset management solutions. Our subscriptions generally include access to our SaaS solutions, connectivity, and in many cases, use of an in-vehicle device. We also generate revenues from the sale of in-vehicle devices, which enable customers to use our subscription-based solutions, installation services of our in-vehicle-devices and driver training for fleet customers. We generate sales through the efforts of our direct sales teams, staffed in our regional sales offices, and through our global network of distributors and dealers. Our direct sales teams focus on marketing our fleet solutions to global and multinational enterprise accounts and to other large customer accounts located in regions of the world where we maintain a direct sales presence. Our direct sales teams have industry expertise across multiple industries, including oil and gas, transportation and logistics, government and municipal, bus and coach, rental and leasing, and utilities. In some markets, we rely on a network of distributors and dealers

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to sell our solutions on our behalf. Our distributors and dealers also install our in-vehicle devices and provide training, technical support and ongoing maintenance for the customers they support.

The table below sets out our historic revenue and profitability indicators.

	Fiscal Year Ended March 31,
	2018		2018		2017		2016
	(In thousands, unless otherwise indicated)
Subscription revenue		$121,315	R1,434,615		R1,239,914			R1,158,229
Subscription revenue growth (%)			15.7	%	7.1	%	16.0		%
Hardware and other revenue	23,498		277,867		300,144		306,792
Hardware and other revenue decline (%)			(7.4	%)	(2.2	%)	(21.5		%)
Total revenue	144,813		1,712,482		1,540,058		1,465,021
Total revenue growth (%)			11.2	%	5.1	%	5.4		%
Operating profit	18,178		214,952		137,862		139,084
Operating profit growth/(decline) (%)			55.9	%	(0.9	%)	(7.2		%)
Operating profit margin (%)			12.6	%	9.0	%	9.5		%
Adjusted EBITDA(1)	37,366		441,866		301,613		277,215
Adjusted EBITDA growth/(decline) (%)			46.5	%	8.8	%	(2.0		%)
Adjusted EBITDA margin (%) (1)			25.8	%	19.6	%	18.9		%
Profit for the year (2)	15,323		181,193		121,441		182,491
Profit for the year growth/(decline) (%)			49.2	%	(33.5	%)	22.5		%
Profit for the year margin (%)			10.6	%	7.9	%	12.5		%

⁽¹⁾  Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures. See “Item 3A. Selected financial and operating data” for a description of this measure and a reconciliation to profit for the year.

⁽²⁾  Profit for the year includes net foreign exchange losses of R5.1 million, net foreign exchange gains of R1.5 million and net foreign exchange gains of R144.0 million in fiscal years 2018, 2017 and 2016, respectively.

Subscription revenue has increased as a percentage of total revenue. In fiscal years 2018, 2017 and 2016, subscription revenue represented 83.8%, 80.5% and 79.1% respectively, of our total revenue. In fiscal years 2018, 2017 and 2016, our top 10 customers represented 24.5%, 24.4% and 24.5% respectively, of our subscription revenue.

We believe the large and growing market for fleet and mobile asset management solutions will provide us with significant growth opportunities going forward. We seek to capitalize on these growth opportunities and manage the factors affecting our performance, including subscription revenue accounting for a greater component of revenue, lower hardware revenues, improved economies of scale, fluctuations in the value of the South African Rand (our financial reporting currency), an evolving mix of subscribers with different revenue and cost economics, varying economic conditions in our markets (e.g., the oil and gas sector), changing customer needs and long sales cycles for our enterprise fleet management solutions. See “Factors Affecting Our Performance”, for more information on these factors.

We intend to grow our revenue by adding new customers, selling more subscriptions to existing customers, and expanding our customer base to include industry sectors, customer segments and geographic regions beyond those that we currently serve. We will also continue to evolve our portfolio of products and services by introducing new innovative solutions. We also intend to continue to expand our Adjusted EBITDA margin and unlock further economies of scale as a result of strict cost management and ongoing subscription revenue growth.

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Key Financial Measures and Operating Metrics

In addition to financial measures based on our consolidated financial statements, we monitor our business operations using various financially and non-financially derived metrics. The following table presents these measures and metrics.

	Fiscal Year Ended March 31,
	2018		2018		2017		2016
	(In thousands, except basic adjusted earnings per share and subscriber data)
Subscription revenue		$121,315		R1,434,615		R1,239,914		R1,158,229
Adjusted EBITDA	37,366		441,866		301,613		277,215
Basic adjusted earnings per share ($/R)		$0.02		R0.28		R0.17		R0.11
Subscribers	676,866		676,866		622,062		566,177

Subscription Revenue

Subscription revenue represents subscription fees for our solutions, which include the use of our SaaS fleet management solutions, connectivity, and in many cases, our in-vehicle devices. Our subscription revenue is driven primarily by the number of subscribers and the monthly price per subscriber, which varies depending on the services and features customers require, hardware options, customer size and geographic location.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA and Adjusted EBITDA margin are two of the profit measures reviewed by the chief operating decision maker (“CODM”). We define Adjusted EBITDA as the profit for the period before income taxes, net finance income/(costs) including foreign exchange gains/(losses), depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development costs and intangible assets identified as part of a business combination, share-based compensation costs, transaction costs arising from the acquisition of a business or investigating strategic alternatives, restructuring costs, profits/(losses) on the disposal or impairments of assets or subsidiaries, certain non-recurring IPO costs, insurance reimbursements relating to impaired assets and certain litigation costs. We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue. A reconciliation of Adjusted EBITDA to profit for the year and Adjusted EBITDA margin to profit for the year margin is included in “Item 3A. Selected Financial and Operating Data.”

Adjusted Earnings per share

Adjusted earnings is defined as profit attributable to owners of the parent excluding net foreign exchange gains/(losses) net of tax. A reconciliation of basic adjusted earnings per share to basic earnings per share is included in “Item 3A. Selected Financial and Operating Data”.

Subscribers

Subscribers represent the total number of discrete services we provide to customers at the end of the period.

Factors Affecting Our Performance

Subscription Revenue Accounting for a Greater Component of Revenue

We are focused on growing our recurring subscription revenue base and entering into more fully bundled deals. As a result of an increase in the total subscriber base, and due to existing subscribers moving to fully-bundled subscriptions in fiscal year 2018, subscription revenue is increasing as a percentage of revenue. In fiscal year 2018, subscription-based revenues accounted for 83.8% of our total revenues, up from 80.5% in 2017 and 79.1% in 2016. We expect to see this trend continue as we grow our base of subscribers, increase the number of fully-bundled subscriptions, maintain our investment in sales and marketing and continue to attract new subscribers by reducing the upfront investment required by our customers and by introducing attractive new features and services. As we continue to strengthen our position as a leading global SaaS telematics provider, we expect the increasing shift towards fully bundled solutions, which do not require upfront hardware purchases, to continue and contribute to this trend going forward. For further information, refer to “5D. Trend Information”.

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Lower hardware sales volumes

    As mentioned above, we continue to see a shift toward fully bundled contracts, which do not require upfront hardware purchases.

The table below shows hardware revenue and hardware gross margin generated for fiscal years 2018, 2017 and 2016. Compared to an increase in total revenue of 11.2%, hardware revenue only increased by 2.4% from fiscal year 2017 to fiscal year 2018.

In fiscal year 2018, hardware revenueaccounted for 13.3%of our total revenues, down from 14.4%in 2017 and 15.1%in 2016.The trend toward fully bundled contracts initially has a negative impact on our earnings growth due to the hardware revenue forfeited. In the long term, we believe that the shift to bundled contracts will enhance shareholder value should the contracts go through a renewal cycle.

	Fiscal Year Ended March 31,
	2018		2018			2017			2016
	(In thousands, except subscriber data)
Hardware revenue		$19,260		R227,752			R222,315			R221,306
% movement			2.4		%	0.5		%	(25.9		%)
% of total revenue			13.3		%	14.4		%	15.1		%
Hardware gross margin %			50.6		%	53.7		%	54.9		%

Improved economies of scale

We expect increased subscription revenue growth combined with ongoing cost management to improve our profitability going forward. Since our IPO, we have invested heavily in research and development, and sales and marketing, and have significantly increased the number of bundled solutions sold to customers, which had a short term muting effect on our revenues. In fiscal year 2018, we saw a significant improvement in our Adjusted EBITDA margin as we started to benefit from these historical investments, strict cost management and improved economies of scale. We expect the improvement in our Adjusted EBITDA margin to continue.

	Fiscal Year Ended March 31,
	2018			2018		2017		2016
	(In thousands, unless otherwise indicated)
Subscription revenue		$121,315		R1,434,615		R1,239,914			R1,158,229
Subscription revenue growth (%)				15.7	%	7.1	%	16.0		%
Total revenue	144,813			1,712,482		1,540,058		1,465,021
Total revenue growth (%)				11.2	%	5.1	%	5.4		%
Operating expenses	(77,359		)	(914,813	)	(903,837	)	(887,876		)
Operating expenses growth (%)				1.2	%	1.8	%	11.9		%
Operating profit	18,178			214,952		137,862		139,084
Operating profit growth/(decline) (%)				55.9	%	(0.9	%)	(7.2		%)
Operating profit margin (%)				12.6	%	9.0	%	9.5		%
Adjusted EBITDA (1)	37,366			441,866		301,613		277,215
Adjusted EBITDA growth/(decline) (%)				46.5	%	8.8	%	(2.0		%)
Adjusted EBITDA margin (%) (1)				25.8	%	19.6	%	18.9		%

⁽¹⁾  Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS financial measures. See “Item 3A. Selected financial and operating data” for a description of these measures and a reconciliation to operating profit, profit and profit margin for the year.

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Fluctuations in the value of the South African Rand, our financial reporting currency

The South African Rand is the financial reporting currency for our business operations. Currency fluctuations in the South African Rand may positively or negatively impact our reported income and expenses due to the effects of translating the functional currency of our foreign subsidiaries into Rand at different average exchange rates. Accordingly, some of the changes in the reported operating results are attributable to fluctuations in exchange rates and do not necessarily reflect the underlying operating results. However, at an operating profit level, the impact of exchange rate fluctuations arising during the translation to South African Rands has not had a material impact in fiscal years2018, 2017 and 2016.

In fiscal year 2018, the Rand strengthened by 7.6% against the U.S. Dollar and by 6.6% against the British Pound, as shown in the table below.

	Average exchange rate for Fiscal Year Ended March 31,
	2018		2017		2016
South African Rand for U.S. Dollars (per $1.00)	12.99		14.06		13.78
% movement	(7.6	%)	2.0	%	24.6	%
South African Rand for British Pound (per £1.00)	17.21		18.42		20.63
% movement	(6.6	%)	(10.7	%)	15.8	%

We expect continued exchange rate volatility in the South African Rand against other major currencies. We provide detailed information about historical U.S. Dollar to South African Rand exchange rates in “Item 3A. Selected Financial and Operating Data” and for more information regarding our foreign currency exchange risk refer to “Item 11. Qualitative and Quantitative Disclosures about Market Risk - Foreign Currency Exchange Risk.”

Mix of Subscribers with Different Revenue and Cost Economics

We offer services to a wide range of customers, from large enterprise vehicle fleets to small fleet operators and consumers. The subscription revenue and cost per subscriber and the subscriber retention pattern differ by type of subscriber. For example, our entry-level consumer solution, Beam-e, is characterized by lower revenue and lower cost per subscriber compared to our large enterprise solutions. Small fleet and consumer customers will enter into and terminate contracts much more frequently than our enterprise customers, thereby affecting subscriber retention. As the mix of our subscriber base evolves, the average revenue per subscriber and average cost per subscriber is likely to change.

Varying Economic Conditions in our Markets

We seek to capitalize on opportunities and manage risks in our key markets, which are geographically dispersed with customers located in approximately 120 countries worldwide. Overall, we believe that our presence across multiple geographic markets and our exposure to multiple economies provides us with diversification from the risk of changing economic conditions in any one country or region. Other macroeconomic factors, such as expectations for future crude oil and natural gas prices, affect our customers’ spending habits. Prolonged or substantial declines in crude oil and/or natural gas prices, or the perception that such prices will decrease in the future, negatively impacts our net subscriber growth and hardware sales in this sector. In addition to macroeconomic changes, performance in any given region may vary due to multiple factors, including growth in subscribers, the overall profile of the customer base (for example, in Africa, we have a significant consumer subscriber base), the services and hardware options selected by particular subscribers and our distribution strategy in the region.

Changes in regional conditions require management to formulate strategic responses that safeguard our financial position and maintain our balanced approach to producing revenue growth, profitability and cash flow. For example, during fiscal year 2017, we implemented restructuring activities in the Europe and the Middle East and Australia segments; in fiscal year 2016, we implemented restructuring activities in Brazil; and, in fiscal year 2015, we implemented restructuring activities in Africa and the Middle East and Australia segments. These restructuring activities adjusted the cost structures in these regions to levels appropriate for prevailing market conditions.

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Changing Customer Needs

The Company has noted a blending of product and service types in the various geographies in which it operates and has identified this as an opportunity to increase subscription revenue growth by the addition of new products and services in certain of the regions in which we operate. For example, in fiscal year 2018, we extended our U.S. Hours of Service solution to support the requirements of the ELD legislation. In the second half of fiscal year 2017, we also introduced a new MiX Tabs solution aimed at customers who wish to leverage their investment in our premium fleet solution to do cost effective asset tracking.

For a discussion of material changes in our segment revenue that have impacted our financial results for the periods presented, see “Item 5A. Operating Results.”

Long Sales Cycle for Our Enterprise Fleet Management Solutions

From period to period, our revenues may fluctuate depending upon the customer contracts we have secured. The typical sales cycle for large enterprise fleet management solutions contracts may be long, especially by comparison to the sales cycle for our consumer solutions. It may also be difficult for us to predict the timing of when we will enter into enterprise fleet management contracts.

Longer sales cycles for large contracts, for both customers who purchase in-vehicle devices and those who opt for the fully bundled option, may affect the comparability of financial results in certain segments. Our revenue may fluctuate from period to period depending on the level and timing of hardware sales, while subscription revenue growth is also impacted by the timing of the rollout of large enterprise fleets. We are seeking to mitigate these long sales cycles and the associated volatility by enhancing our sales pipeline management process, by maintaining our sales and marketing investment levels and by diversifying our customer segment focus.

Basis of Presentation and Key Components of Our Results of Operations

In fiscal year 2018, we managed our business in six segments which include Africa, Americas, Brazil, Europe and the Middle East and Australasia (our regional sales offices (“RSOs”)), and our CSO. CSO is our central services organization that wholesales our products and services to our RSOs who, in turn, interface with our end-customers, distributors and dealers. CSO is also responsible for the development of our hardware and software platforms and provides common marketing, product management, technical and distribution support to each of our other operating segments.

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

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

Revenue

The majority of our revenue is subscription-based. Consequently, growth in subscribers influences our subscription revenue growth. However, other factors, including, but not limited to, the types of new subscribers we add and the timing of entry into subscription contracts also play a significant role. The price and terms of our customer subscription contracts vary based on a number of factors, including fleet size, hardware options, geographic region and distribution channel. In addition, we derive revenue from the sale of in-vehicle devices, which are used to collect, generate and transmit the data used to enable our SaaS solutions.

Our customer contracts typically have a three to five year initial term. Following the initial term, most fleet customers elect to renew for fixed terms ranging from one to five years. Our third party dealers are typically billed monthly based on

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active connections. Some of our customer agreements, including our consumer subscriptions, provide for automatic monthly or yearly renewals unless the customer elects not to renew its subscription. Our consumer customer contracts in South Africa are governed by the Consumer Protection Act, which allows customers to cancel without paying the full balance of the contract amount. Our fleet contracts and our customer contracts outside of South Africa are generally non-cancellable.

Cost of Sales

Cost of sales associated with our subscription revenue consists primarily of costs related to cellular communications, infrastructure hosting, third-party data providers, service contract maintenance costs, commission paid to third party dealers or distributors, amortization of capitalized software development costs and depreciation of our capitalized installed in-vehicle devices. Cost of sales associated with our hardware revenue includes the cost of the in-vehicle devices, cost of hardware warranty, shipping costs, custom duties, commission paid to third party dealers or distributors, and amortization of capitalized hardware development costs. We capitalize the cost of in-vehicle devices utilized to service customers, for customers selecting our bundled option, and we depreciate these costs from the date of installation over their expected useful lives.

We expect that cost of sales as a percentage of revenue will vary from period to period depending on our revenue mix, including the proportion of our revenue attributable to our subscription-based services. The cost of sales related to the amortization of capitalized development costs are relatively fixed in nature and not directly related to the number of subscribers. However, the majority of the other components of our cost of sales are variable and are affected by the number of subscribers, the composition of our subscriber base, and the number of new subscriptions sold in the period.

Operating Expenses

Sales and Marketing

Sales and marketing expenses consist primarily of salaries and wages, commissions paid to employees, travel-related expenses, and advertising and promotional costs. We pay our sales employees commissions based on achieving subscription targets and we expense commission costs as incurred. Advertising costs consist primarily of costs for print, radio and television advertising, promotions, public relations, customer events, tradeshows and sponsorships. We expense advertising costs as incurred. We plan to continue to invest in sales and marketing in order to grow our sales and build brand and category awareness. While we expect sales and marketing expenses to increase in absolute terms, we expect the expense to remain relatively constant as a percentage of revenue i.e. 11% to 12% of revenue.

Administration and Other Charges

Administration and other charges consist primarily of salaries and wages for administrative staff, travel costs, professional fees (including audit and legal fees), real estate leasing costs, expensed research and development costs and depreciation of fixed assets including vehicles and office equipment and amortization of intangible assets. We expect that administration and other charges will increase in absolute terms as we continue to grow our business.

Taxes

In fiscal years 2018, 2017 and 2016 our effective tax rates were 15.7%, 18.1%, and 36.9% respectively, compared to a South African statutory rate of 28%. Taxation mainly consists of normal statutory income tax paid or payable and deferred tax on any temporary differences.

Our effective tax rate may vary primarily according to the mix of profits made in various jurisdictions and section 11D allowances relating to the deduction of research and development tax incentives by MiX Telematics International Proprietary Limited. Further information on this is disclosed in note 28 to the consolidated financial statements. In addition, our effective tax rate may be impacted by certain non-deductible/(non-taxable) foreign exchange movements. As a result, significant variances in future periods may occur.

Our Americas, Brazilian, European and Thailand operations have generated cumulative tax losses for which we have not recognized a deferred tax asset. These losses may be utilized going forward against any taxable profits generated in these segments. The losses available to be utilized at March 31, 2018, are R237.3 million, of which R149.4 million relates to our Americas operations.

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The recently enacted Tax Cuts and Jobs Act (“TCJA”) eliminated net operating loss carrybacks and limits net operating loss carryforwards. Therefore, the future utilization of losses relating to our American operations against taxable profits may be limited.

Constant Currency Information

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

The constant currency information represents non-IFRS information. We believe this provides a useful basis to measure the performance of our business as it removes distortion from the effects of foreign currency movements during the period.

5A. OPERATING RESULTS

The following table sets forth certain consolidated income statement data:

	For the year ended March 31,
	2018			2018			2017			2016
	(In thousands, unless otherwise indicated)
Revenue		$144,813			R1,712,482			R1,540,058			R1,465,021
Cost of sales	(49,635		)	(586,963		)	(498,785		)	(439,305		)
Gross profit	95,178			1,125,519			1,041,273			1,025,716
Sales and marketing	(15,642		)	(184,978		)	(181,601		)	(203,767		)
Administration and other charges (1)	(61,358		)	(725,589		)	(721,810		)	(682,865		)
Operating profit	18,178			214,952			137,862			139,084
Finance (cost)/income - net	(6		)	(69		)	10,391			150,327
Profit before taxation	18,172			214,883			148,253			289,411
Taxation	(2,849		)	(33,690		)	(26,812		)	(106,920		)
Profit for the year		$15,323			R181,193			R121,441			R182,491
Attributable to:
Owners of the parent		$15,318		181,134			121,458			182,989
Non-controlling interests	5			59			(17		)	(498		)
		$15,323			R181,193			R121,441			R182,491

⁽¹⁾  Includes other income/(expenses) – net.

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Results of Operations for Fiscal Year 2018 Compared to Fiscal Year 2017

Revenue

	For the year ended March 31,
	2018		2018		2017		% Change
	(In thousands, except for percentages)
Subscription revenue		$121,315		R1,434,615		R1,239,914	15.7	%
Hardware sales	19,260		227,752		222,315		2.4	%
Driver training, installation and other	4,238		50,115		77,829		(35.6	%)
		$144,813		R1,712,482		R1,540,058	11.2	%

Our total revenue increased by R172.4 million, or 11.2%, from fiscal year 2017 to fiscal year 2018. The principal factors affecting our revenue growth included:

• Subscription revenue grew by R194.7 million, or 15.7% from fiscal year 2017 to fiscal year 2018. Subscription revenue represented 83.8% of our total revenue for fiscal year 2018 compared to 80.5% for the prior year. Our growth in subscription revenue is primarily attributable to both an increase in subscribers, which increased by 8.8% from 622,062 at March 31, 2017, to 676,866 at March 31, 2018 and an increase in average revenue per user (“ARPU”). We again saw ARPU expansion in certain regions such as Africa, Brazil and the Americas, where our fleet ARPUs have continued to increase as a result of bundled deals. Further information in this regard is shown below as part of the discussion of third party revenue and subscription revenue by geography. The growth in Subscription revenue was offset by a decline of R39.9 million or 3.2% as a result of the stronger South African Rand. On a constant currency basis, subscription revenue increased by 18.9% from fiscal year 2017 to fiscal year 2018.

• Hardware revenue increased by R5.4 million, or 2.4%, from fiscal year 2017 to fiscal year 2018. The increase in hardware revenues in fiscal year 2018 mainly resulted from the European segment, where hardware revenue was R12.9 million higher in fiscal year 2018 than in fiscal year 2017, due to increased sales through both the continental Europe and North African dealer channels. With the exception of Europe and Africa, where hardware revenue was higher, all of the other operating segments recognized lower hardware revenues in fiscal year 2018.

• Driver training, installation and other revenue declined by R27.7 million, or 35.6%, from fiscal year 2017 to fiscal year 2018. The decrease is primarily related to a decline in installation revenue of R8.4 million in Australia, a decline in driver training revenue of R7.2 million in the Middle East segment and a decline in other revenue of R8.1 million in the Africa segment.

The total revenue growth was offset by a decline of R51.6 million, or 3.4% as a result of the stronger South African Rand. On a constant currency basis, total revenue increased by 14.5% from fiscal year 2017 to fiscal year 2018.

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A breakdown of total third party revenue and subscription revenue is shown in the table below:

	For the Year Ended March 31,
	2018		2018		2017		2018		2018		2017
	(In thousands)
	Total Revenue						Subscription Revenue
Africa		$80,968		R957,478		R859,169		$73,794		R872,646		R772,224
Americas	19,246		227,605		160,419		16,480		194,890		121,462
Middle East and Australasia	23,565		278,665		304,450		16,933		200,241		199,474
Europe	16,343		193,260		177,331		9,742		115,199		113,223
Brazil	4,601		54,430		37,811		4,290		50,735		32,653
CSO	90		1,044		878		76		904		878
Total		$144,813		R1,712,482		R1,540,058		$121,315		R1,434,615		R1,239,914

The Africa segment was the main contributor to our revenue growth in fiscal year 2018. In the Africa segment, total revenue grew by R98.3 million, or 11.4%, primarily due to an increase in subscription revenue of R100.4 million, or 13.0%. The increase in the segment’s subscription revenue was driven by a 7.3% increase in subscribers in fiscal year 2018 and an increase in the number of bundled subscriptions. Hardware and other revenue declined by R2.1 million or 2.4%.

Total revenue in the Americas segment increased by R67.2 million, or 41.9%, in South African Rand terms. The subscriber base increased by 32.0% in fiscal year 2018. Subscription revenue increased by 73.6% on a constant currency basis as subscription revenue continued to receive assistance from the market’s preference for bundled deals across new and existing customers. This strong preference for bundled deals has resulted in a reduction of hardware revenues in fiscal 2018. Total revenue grew by 53.5% on a constant currency basis.

Total revenue in the Middle East and Australasia segment declined by R25.8 million, or 8.5%, in South African Rand terms. Subscription revenue increased by 6.9% on a constant currency basis. Subscribers increased by 5.6% in fiscal year 2018. Total revenue declined by 2.6% on a constant currency basis, as hardware and other revenue was lower than in fiscal year 2017.

Total revenue in the Europe segment increased by R15.9 million, or 9.0%, in South African Rand terms. Subscription revenue growth was 6.0% on a constant currency basis and driven primarily by a 6.0% increase in the subscriber base in fiscal year 2018. Total revenue increased on a constant currency basis by 13.3% due to the increase in subscription revenue as well as increased hardware revenue compared to fiscal 2017.

Total revenue in the Brazil segment increased by R16.6 million, or 44.0%, in South African Rand terms. On a constant currency basis, subscription revenue increased by 63.9% in fiscal year 2018 due to the market’s preference for bundled deals and a 29.9% increase in subscribers in fiscal year 2018. Total revenue grew by 51.8%, on a constant currency basis.

Cost of Sales

	For the year ended March 31,
	2018			2018			2017			% Change
	(In thousands, except for percentages)
Cost of sales		$49,635			R586,963			R498,785		17.7	%
Gross profit margin	65.7		%	65.7		%	67.6		%
Gross profit margin - subscription	70.1		%	70.1		%	72.7		%
Gross profit margin - hardware	50.6		%	50.6		%	53.7		%

Compared to an increase in total revenue of R172.4 million, or 11.2%, cost of sales increased by R88.2 million, or 17.7%, from fiscal year 2017 to fiscal year 2018. This resulted in a lower gross profit margin of 65.7% in fiscal year 2018 compared to 67.6% in fiscal year 2017.

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Subscription revenue, which generates a higher gross profit margin than hardware and other revenue, contributed 83.8% of total revenue compared to 80.5% in fiscal year 2017. During fiscal 2018, subscription revenue gross profit margins were lower than in fiscal 2017. The Company's gross profit margin in fiscal 2018 includes higher depreciation charges related to in-vehicle devices and high value peripherals used in certain of its bundled fleet contracts.

Sales and Marketing

Sales and marketing costs increased by R3.4 million, or 1.9%, from fiscal year 2017 to fiscal year 2018 despite an 11.2% increase in total revenue. This was as a result of strict cost management. The increase in fiscal year 2018 was as a result of a R13.8 million increase in employee costs offset by a R8.8 million decrease in advertising and marketing spend and other decreases of R1.6 million, none of which were individually significant. In fiscal year 2018, sales and marketing costs represented 10.8% of revenue compared to 11.8% of revenue in fiscal year 2017. Due to higher than expected hardware revenues, the fiscal 2018 ratio was marginally below the estimates contained in our Form 20-F for the fiscal year ended March 31, 2017, where we advised that in future periods we expected these costs to remain relatively constant as a percentage of revenue (i.e.11% to 12% of revenue).

Administration and Other Expenses

Administration and other expenses (including other income/(expenses) - net) increased by R3.8 million, or 0.5%, from fiscal year 2017 to fiscal year 2018.

Employee costs increased by R7.8 million, while there were increases in the bad debt provision of R6.8 million, professional fees of R11.4 million and enterprise and skills development spend of R8.5 million. The increase in employee costs was mainly as a result of R7.6 million due to cost of living adjustments and headcount movements and an increase of R24.6 million in bonus expenses, offset by R24.4 million in restructuring cost savings. These increases were offset by the non-recurring R14.6 million restructuring provision expense in fiscal year 2017, and R17.6 million attributable to the effect of the stronger South African Rand. The net impact of other smaller variances, none of which were individually material, contributed R1.5 million to the increase.

Finance (costs)/income—Net

Our net finance costs were R0.1 million in fiscal year 2018, compared to net finance income of R10.4 million in fiscal year 2017.

Net finance costs in fiscal year 2018, included net foreign exchange losses of R5.1 million compared to net foreign exchange gains of R1.5 million in fiscal year 2017.

Finance income relating to cash and cash equivalents decreased by R5.5 million, or 39.5%, from fiscal year 2017 to fiscal year 2018, largely due to R477.6 million from the U.S. Dollar IPO proceeds being converted to Rands during fiscal year 2017. These Rand funds were placed on call until the end of August 2016, when R473.7 million of the funds were utilized to effect the fiscal 2017 share repurchase transaction. Please refer to “Item 7B. Related Party Transactions” for details on the specific repurchase from a related party. R5.7 million of interest income was earned while these funds were on call.

Finance costs decreased by R1.7 million in fiscal year 2018 mainly due to the discounting impact of R3.2 million related to the fiscal 2017 share repurchase transaction without similar costs in fiscal year 2018. Please refer to “Item 7B. Related Party Transactions” for details on the specific repurchase from a related party.

We manage interest as a net cost and, when we have surplus cash available, we deposit cash in interest-bearing accounts.

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Taxation

			For the year ended March 31,
	2018			2018		2017		% Change
	(In thousands, except for percentages)
Taxation	$2,849			R33,690		R26,812		25.7	%
Effective tax rate	15.7	%		15.7	%	18.1	%

Taxation expense increased by R6.9 million, or 25.7%, while our effective tax rate decreased by 2.4% to 15.7% in fiscal year 2018. A reconciliation of our effective tax rate to the South African corporate tax rate of 28% for both fiscal years 2018 and 2017, together with additional information on the section 11D allowances relating to the deduction of research and development tax incentives by MiX Telematics International Proprietary Limited, is presented in note 28 to the consolidated financial statements. In fiscal year 2018 the effective tax rate declined by 13.1% as a result of certain non-taxable foreign exchange movements. In fiscal 2017 non-taxable foreign exchange differences decreased the tax rate by 10.7%. Further information is set out in note 28 to the consolidated financial statements. Note that the deferred tax not recognized on assessed losses in fiscal year 2018, as disclosed in note 28 to the consolidated financial statements, relates primarily to the Americas segment.

Results of Operations for Fiscal Year 2017 Compared to Fiscal Year 2016

Revenue

	For the year ended March 31,
	2017		2016		% Change
	(In thousands, except for percentages)
Subscription revenue		R1,239,914		R1,158,229	7.1	%
Hardware sales	222,315		221,306		0.5	%
Other	77,829		85,486		(9.0	%)
		R1,540,058		R1,465,021	5.1	%

Our total revenue increased by R75.0 million, or 5.1%, from fiscal year 2016 to fiscal year 2017. The principal factors affecting our revenue growth included:

• Subscription revenue, which grew by R81.7 million, or 7.1%. Subscription revenue represented 80.5% of our total revenue for fiscal year 2017 compared to 79.1% for the prior year. Our growth in subscription revenue was primarily attributable to an increase in subscribers, which increased by 9.9% from 566,177 at March 31, 2016, to 622,062 at March 31, 2017, and the effect of the weaker South African Rand, which added R5.3 million, or 0.5%, to our subscription revenue as a result of translating the results of our foreign operations to South African Rand at a higher average rate in the 2017 fiscal year (refer to “Factors Affecting our Performance” above). Overall, there was no significant fluctuation in our ARPU, on a constant currency basis. In certain regions, particularly Brazil and the Americas, our fleet ARPUs have started to increase as a result of higher levels of bundled deals. Further information in this regard is shown below as part of the discussion of third party revenue and subscription revenue by geography.

• Hardware revenue increased marginally by R1.0 million, or 0.5%, from fiscal year 2016 to fiscal year 2017. Due to certain large enterprise fleet orders received, hardware revenue was R12.5 million higher than in fiscal year 2016 in our Europe segment. With the exception of Europe and Brazil, where hardware revenue was marginally higher, all the other operating segments recognized lower hardware revenues in fiscal year 2017.

• Other revenue declined by R7.7 million, or 9.0%, from fiscal year 2017 to fiscal year 2016. The decrease is primarily related to a decline in installation revenue of R7.7 million, mainly resulting from the Africa segment.

A breakdown of total third party revenue and subscription revenue is shown in the table below:

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	For the Year Ended March 31,
	2017		2016		2017		2016
	(In thousands)
	Total Revenue				Subscription Revenue
Africa		R859,169		R807,907		R772,224		R711,208
Europe	177,331		161,987		113,223		110,251
Americas	160,419		156,940		121,462		115,413
Middle East and Australasia	304,450		313,927		199,474		202,163
Brazil	37,811		23,129		32,653		18,063
CSO	878		1,131		878		1,131
Total		R1,540,058		R1,465,021		R1,239,914		R1,158,229

The Africa segment was the main contributor to our revenue growth in fiscal year 2017. In the Africa segment, total revenue grew by R51.3 million, or 6.3%, primarily due to an increase in subscription revenue of R61.0 million, or 8.6%. The increase in the segment’s subscription revenue was driven by an 11.2% increase in subscribers in fiscal year 2017. Hardware and other revenue declined by R9.7 million or 10.1% as there was a significant contract rollout in the leasing sector which included the upfront purchase and installation of in-vehicle devices by the customer during fiscal year 2016.

Total revenue in the Europe segment increased by R15.3 million, or 9.5%, in South African Rand terms. Subscription revenue growth was 8.9% on a constant currency basis and driven primarily by a 6.9% increase in the subscriber base in fiscal year 2017. Total revenue increased on a constant currency basis by 16.0% due to the increase in subscription revenue as well as increased hardware revenue compared to fiscal 2016. This constant currency growth was offset by the strengthening of the Rand against the British Pound.

Total revenue in the Americas segment increased by R3.5 million, or 2.2%, in South African Rand terms. The subscriber base declined by 0.2% due to customer fleet size contraction in the oil and gas sector in the first half of fiscal year 2017. Despite this contraction, subscription revenue increased by 3.2% on a constant currency basis as subscription revenue was assisted by the market’s preference for bundled deals across new and existing customers. This strong shift toward bundled deals has directly resulted in a reduction of hardware revenues. Total revenue grew by 0.2% on a constant currency basis. In the second half of fiscal 2017, trading conditions in the oil and gas sector improved and, as a consequence, the subscriber base grew by 11.4% during that period.

Total revenue in the Middle East and Australasia segment declined by R9.5 million, or 3.0%, in South African Rand terms. Subscription revenue declined by 4.2% in constant currency despite a 2.5% increase in subscribers in fiscal year 2017. The overall decline in subscription revenue is attributable to economic headwinds experienced by the segment, due to its primary focus being on the mining and oil and gas sectors where decreased spending by fleets with higher ARPUs and downward pressure on subscription prices resulted in a decline in the segment’s overall ARPU. Total revenue declined by 5.9% on a constant currency basis, as hardware revenue was also lower than in fiscal year 2016.

Total revenue in the Brazil segment increased by R14.7 million, or 63.5%, in South African Rand terms. On a constant currency basis, subscription revenue increased by 63.0% in fiscal year 2017 due to a 40.3% increase in subscribers in fiscal year 2017, and the majority of new deals being concluded on a bundled basis. Subscription revenue grew by R14.6 million, or 80.8%, in South African Rand terms.

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Cost of Sales

	For the year ended March 31,
	2017			2016			% Change
	(In thousands, except for percentages)
Cost of sales		R498,785			R439,305		13.5	%
Gross profit margin	67.6		%	70.0		%
Gross profit margin - subscription	72.7		%	75.8		%
Gross profit margin - hardware	53.7		%	54.9		%

Compared to an increase in total revenue of R75.0 million, or 5.1%, cost of sales increased by R59.5 million, or 13.5%, from fiscal year 2016 to fiscal year 2017. This resulted in a lower gross profit margin of 67.6% in fiscal year 2017.

Subscription revenue, which generates a higher gross profit margin than hardware and other revenue, contributed 80.5% of total revenue compared to 79.1% in fiscal year 2016. During fiscal 2017, subscription revenue gross profit margins were lower than in fiscal 2016. Increased infrastructure costs due to the commencement of our transition from legacy data centers, where we owned certain equipment, toward cloud-based infrastructure and services were the most significant contributor to the decline. This transition also supports the roll out of our new back-end platform, MiX Lightning, and new products such as MiX Journey Management, MiX Hours of Service and MiX Go.

Sales and Marketing

Sales and marketing costs decreased by R22.2 million, or 10.9%, from fiscal year 2016 to fiscal year 2017. This was a direct result of strict cost management resulting in declines of R12.1 million, R4.8 million, R2.6 million and R1.1 million in employee costs, advertising spend, travel costs and training, respectively. In fiscal year 2017, sales and marketing costs represented 11.8% of revenue compared to 13.9% of revenue in fiscal 2016, which are aligned with our estimates contained in our Form 20-F for the fiscal year ended March 31, 2016, where we advised that in future periods we expected these costs to remain relatively constant as a percentage of revenue i.e.11% to 12% of revenue.

Administration and Other Expenses

Administration and other charges (including other income/(expenses) - net) increased by R38.9 million, or 5.7%, from fiscal year 2016 to fiscal year 2017. This increase was the result of a R35.1 million increase in employee costs consisting of R14.0 million due to cost of living adjustments, R6.3 million due to headcount movements and staff promotions and an increase of R21.1 million in bonus expenses, offset by declines in share-based payment expense and other employee costs of R2.4 million and R3.9 million, respectively. In addition, restructuring costs of R15.0 million were provided for in respect of restructuring plans implemented by the Europe and Middle East and Australasia segments. Refer to note 19 of the consolidated financial statements for further details on the restructuring plans. A R4.9 million increase in the bad debt provision also contributed to the cost increase. These increases were offset by reductions in travel costs, asset impairments and costs arising from investigating strategic alternatives incurred in fiscal year 2016 without similar costs in 2017, of R7.8 million, R2.4 million and R5.0 million, respectively. Details of the transaction costs arising from investigating strategic alternatives incurred in fiscal year 2016 are described in note 23 of the consolidated financial statements.

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Finance Income/(Costs)—Net

Our net finance income was R10.4 million in fiscal year 2017, a decrease of 93.1% compared to net finance income of R150.3 million in fiscal year 2016. Net finance income in fiscal year 2017, included net foreign exchange gains of R1.5 million compared to net foreign exchange gains of R144.0 million in fiscal year 2016. Net foreign exchange gains in fiscal year 2016, included R143.6 million relating to a foreign exchange gain on the IPO proceeds which were maintained in U.S. Dollars during the 2016 fiscal year and were therefore sensitive to R:$ exchange rate movements. This number decreased in 2017 due to the conversion of a portion of the USD IPO proceeds to Rands to facilitate the fiscal 2017 share repurchase transaction further described below.

Finance income relating to cash and cash equivalents increased by R6.8 million, or 92.7%, largely due to R477.6 million from the U.S. Dollar IPO proceeds being converted to Rands during fiscal year 2017. These Rand funds were placed on call until the end of August 2016, when R473.7 million of the funds were utilized to effect the fiscal 2017 share repurchase transaction. Please refer to “Item 7B. Related Party Transactions” for details on the specific repurchase from a related party. R5.7 million of interest income was earned while these funds were on call. The IPO proceeds were maintained primarily in U.S. Dollars during the 2016 fiscal year and interest was earned at marginal interest rates.

Finance costs increased by R3.8 million in fiscal year 2017 mainly due to the discounting impact of R3.2 million related to the fiscal 2017 share repurchase transaction. Please refer to “Item 7B. Related Party Transactions” for details on the specific repurchase from a related party.

We manage interest as a net cost and, when we have surplus cash available, we prepay our debt facilities when permissible or deposit cash in interest-bearing accounts.

Taxation

	For the year ended March 31,
	2017		2016		% Change
	(In thousands, except for percentages)
Taxation	R26,812		R106,920		(74.9	%)
Effective tax rate	18.1	%	36.9	%

Taxation expense decreased by R80.1 million, or 74.9%, while our effective tax rate decreased by 18.8% to 18.1% in fiscal year 2017. A reconciliation of our effective tax rate to the South African corporate tax rate of 28% for both fiscal years 2017 and 2016, together with additional information on the section 11D allowances relating to the deduction of research and development tax incentives by MiX Telematics International Proprietary Limited, is presented in note 28 to the consolidated financial statements. The recognition of a deferred tax asset in respect of historical tax losses in the Europe segment of R5.3 million and a R9.7 million benefit from section 11D research and development allowances, reduced the effective tax rate by 10.2%. In fiscal year 2017 the effective tax rate also declined by 10.6% as a result of certain non-taxable foreign exchange movements. In fiscal 2016 non-deductible foreign exchange differences increased the tax rate by 3.2%. Further information is set out in note 28 to the consolidated financial statements.

Inflation Risk

We do not believe that inflation had a material effect on our business, financial condition or results of operations in the last three fiscal years. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset these higher costs through price increases. Our inability to do so could harm our business, financial condition and results of operations.

JOBS Act

The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for an emerging growth company (“EGC”). Subject to certain conditions set forth in the JOBS Act, if, as an EGC we choose to rely on such exemptions, we may not be required to, among other things: (i) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board (“PCAOB”) regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the

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audit and the financial statements (auditor discussion and analysis), and (iv) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive Officer’s compensation to median employee compensation, which would not apply to us in any event so long as we remain a foreign private issuer. These exemptions will apply until the last day of our fiscal year 2019, or until we no longer meet the requirements of being an EGC, whichever is earlier.

While we will continue to evaluate the benefits of relying on these exemptions, we are currently applying the above exemptions allowed by the JOBS Act.

Critical Accounting Policies

Our consolidated financial statements are prepared in accordance with IFRS. Certain of our significant accounting policies and critical accounting estimates are summarized below. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates.

Significant Accounting Policies

Revenue Recognition

We recognize revenue at the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course of our activities. Revenue mainly includes amounts earned on the sale of hardware, subscription sales and installation revenue. Revenue is shown net of discounts, value added tax, returns and after eliminating sales within the Group.

We offer certain arrangements whereby the customer can purchase a combination of the products and services as referred to above. Where such multiple element arrangements exist, the amount of revenue allocated to each element is based on the relative fair values of the various elements offered in the arrangement. When applying the relative fair value approach, the fair values of each element are determined based on the current market price of each of the elements when sold separately.

We recognize revenue when the amount of revenue can be measured reliably and it is probable that we will receive future economic benefits at the time when specific criteria have been met for each of our activities, as set forth below. We base our estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Subscription Revenue

Subscription revenue for our consumer products is invoiced in accordance with the terms of the respective contractual arrangements and is generally invoiced monthly in advance. Revenue is initially deferred and only recognized in the period in which the service is performed, which for the majority of contracts is the following month.

Subscription revenue for our fleet products is provided on a contracted price basis. Our customer contracts typically have a three to five year initial term. Following the initial term, most fleet customers elect to renew for fixed terms ranging from one to five years. Our third party dealers are primarily billed monthly based on active connections. Subscription revenue for fleet products is either billed in arrears or in advance. When billed in arrears, revenue is recognized in the month that the service is performed and when billed in advance, the revenue is initially deferred and only recognized in the period in which the service is provided. The majority of our subscription revenue for fleet products is billed in the month in which the service is performed.

Hardware Revenue

We recognize revenue from hardware sales once the risks and rewards of ownership have transferred to the purchaser. The risks and rewards of ownership typically transfer when legal title and possession is transferred to the buyer at receipt of the full purchase price of the hardware. Certain contractual arrangements require customer acceptance of the hardware after the hardware devices have been installed, and, in these cases, we recognize hardware revenue when customer acceptances have been received.

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In addition to selling directly, we sell indirectly through our network of distributors and dealers. We distribute products to certain small fleet customers and individuals through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with us for the product. The obligation to supply the service rests with us and the credit risk rests with us. The service revenue is recognized when the service is rendered (i.e., on a monthly basis).

We also sell hardware to motor vehicle dealerships for installation into their vehicle trading stock. These dealerships purchase the hardware from us and are considered principals because they obtain title to the hardware and bear the risks and rewards of ownership. The buyer of the vehicle then enters into a service-only contract with us. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer.

We distribute products to enterprise fleet customers through dealers. Dealers are considered principals in respect of the sale of hardware and revenue is recognized upon sale of the hardware unit to the dealer. Similar to the relationship with small fleet customers originated through distributors, the responsibility for providing services rests with us and revenue is recognized as the service is rendered.

Driver Training and Other Services

We recognize revenue at the contractual hourly/daily rate in the period during which the training is performed. Customers are typically invoiced in the month in which the service has occurred.

Installation Revenue

We recognize revenue earned from the installation of hardware in customer vehicles and invoice it separately once the installation has been completed. Due to the short time frame between delivery and installation (installation may occur on the delivery date), invoicing of the hardware and installation elements may occur at the same time.

Repair Services

Revenue in respect of repair services, which forms part of the monthly subscription, is recognized on a monthly basis over the period of the service arrangement.

Foreign Currency Translation

Functional and Presentation Currency

Items included in the financial statements of each of our entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). Our consolidated financial statements are presented in South African Rand, which is the Group’s presentation currency.

Transactions and Balances

Foreign currency transactions are translated into the respective entity’s functional currency using the exchange rates prevailing at the transaction dates or valuation date where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from year-end currency translations of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities such as equities classified as available-for-sale, are included in other comprehensive income.

Group Companies

The results and financial position of all of our entities (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into South African Rand as follows:

• assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

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• income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions);

• all resulting exchange differences are recognized in other comprehensive income; and

• equity items are measured in terms of historical cost at the time of recording, translated at the rate on the date of recording and are not retranslated to closing rates at reporting dates.

On consolidation, exchange differences arising from the translation of net investments in foreign operations are taken into other comprehensive income. When a foreign operation is fully disposed of or sold (i.e., control is lost), exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. A repayment/capitalization of a net investment loan therefore does not result in any exchange differences being transferred from equity to the income statement unless it is part of a transaction resulting in a loss of control.

Goodwill and fair value adjustments arising in connection with the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income.

Property, Plant and Equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to us and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred.

The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices are capitalized as property, plant and equipment. We depreciate installed in-vehicle devices on a straight-line basis over their expected useful lives (one to five years), commencing upon installation whereas uninstalled in-vehicle devices are not depreciated until installation. The related depreciation expense is recorded as part of cost of sales in the income statement.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life.

Intangible Assets

Goodwill

Goodwill arises on the acquisition of businesses and represents the excess of consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the acquirer’s interest in the net fair value of the net assets acquired. Goodwill on acquisition of businesses is included in intangible assets. Gains and losses on the disposal of an entity include the carrying amount of the goodwill relating to the entity sold.

Goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment, and is carried at cost less accumulated impairment losses. The carrying amount of the cash-generating unit (“CGU”) containing the goodwill is compared to the recoverable amount, which is the higher of value-in-use and the fair value less costs to sell. Impairment losses recognized as an expense in relation to goodwill are not subsequently reversed. Goodwill is allocated to CGUs for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

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Computer Software, Technology, In-House Software, Product Development and Customer Relationships

Acquired computer software licenses are capitalized on the basis of costs incurred to acquire and bring the software into use. The acquired computer software licenses have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. These costs are amortized over their estimated useful lives (two to five years).

In-house software and product development costs that are directly attributable to the design, testing and development of identifiable and unique software and products controlled by us are capitalized as intangible assets when it is feasible to complete the software or product so that it will be available for use, management intends to complete the software or product and use it or sell it, there is an ability to use or sell the software or product, it can be demonstrated how the software or product will generate probable future economic benefits, adequate technical, financial and other resources to complete the development and use or sell the software or product are available and the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of intangible assets include software and product development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet the criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period if the criteria are subsequently met. Costs, including annual licenses, associated with maintaining computer software programs are recognized as an expense as incurred. Technology, in-house software and product development costs are capitalized on the basis of costs incurred to acquire and bring them into use. The recognized assets have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. In addition, they are amortized over their estimated useful lives (one to 15 years).

Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship (two to 15.5 years) and reflects the pattern in which future economic benefits of the customer relationship are expected to be consumed. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates.

Impairment of Non-Financial Assets

Assets that have an indefinite useful life, goodwill and intangible assets that are not ready to use are not subject to amortization but are tested annually for impairment or whenever there is an indication of impairment. Assets subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We recognize an impairment loss for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell, and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value. For purposes of assessing impairment, we group assets at the operating segment level. At each reporting date, we review non-financial assets other than goodwill that have suffered an impairment for possible reversal of the impairment.

Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset is recognized at the date of derecognition.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified as held for sale are presented separately from the other assets in the statement of financial position.

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Impairment of financial assets

We assess, at the end of each reporting period, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Loans and receivables

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the loss is recognized in the income statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, we may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the income statement.

Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed. If collection is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

Trade and other payables

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade and other payables are initially recognized at fair value and are subsequently measured at amortized cost using the effective interest method.

Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flows include cash on hand, deposits held on call with banks and bank overdrafts; all of which are available for use by the Group and have an original maturity of less than three months. Bank overdrafts are included within current liabilities on the statement of financial position.

Provisions

Provisions are recognized when we have a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses. Provisions which are expected to be settled in a period greater than 12 months are discounted to their present value. The increase in the provision due to the passage of time is recognized as an interest expense. Provision for the estimated liability on all products under warranty is made on the basis of claims experience. Provision for the estimated liability for maintenance costs is made on a per unit basis when the obligation to repair occurs. Provision for the anticipated costs associated with the restoration of leasehold property is based on our best estimate of those costs required to restore the property to its original condition. Restructuring provisions are recognized when we have developed a detailed formal plan for restructuring and have raised a valid expectation that we will carry out the restructuring. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring and is recorded in administration and other charges in our income statement.

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Critical Accounting Estimates and Judgements in Applying Accounting Policies

We continually evaluate estimates and judgements, which are based on historical experience and other factors, including expectations of future events that we believe reasonable under the circumstances. We make estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. We outline below the estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Warranty Claims

We generally offer warranties on our hardware units. We estimate the related provision for future warranty claims based on historical claim information, as well as recent trends that might suggest that past claim information may differ from future claims.

Maintenance Provision

In some instances, we offer maintenance services as part of our revenue contracts. Management estimates the related provision for maintenance costs per vehicle when the obligation to repair occurs.

Current and Deferred Income Taxes

We are subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes. Where applicable tax legislation is subject to interpretation, management makes assessments, based on expert tax advice, of the relevant tax that is likely to be paid and provides accordingly. When the final outcome is determined, any difference is recognized in the period in which the final outcome is determined.

Determining how much tax to recognize when an uncertain tax position exists requires judgement. The Company applies the measurement principle in IAS 12, ‘Income Taxes’, when measuring the amount of tax to recognize related to an uncertain tax position. Therefore we measure uncertain tax positions based on a weighted average estimate, taking into account all of the tax uncertainties related to the tax position taken.

Our interests in subsidiaries include certain loans denominated in foreign currencies which are repayable by agreement of both parties. Realization of such loans will result in taxable foreign exchange differences in accordance with prevailing legislation in South Africa. Although we control the timing of the reversal of these temporary differences, given the volatility of the South African Rand and based on our current assessment, it is considered probable that the temporary difference relating to a loan between us and a South African subsidiary will reverse in the foreseeable future. Hence, a deferred tax liability has been recognized in respect of these temporary differences.

We apply judgement when recognizing deferred tax assets in respect of tax losses. Deferred tax assets in respect of tax losses are recognized for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. In determining the level of future taxable profit that will be available, we consider both an entity’s historical profitability and estimates of future profitability and recognize deferred tax for the whole or the part of the temporary difference that is more likely than not to be recovered. Where an entity has incurred historical losses, deferred tax assets are only recognized when the particular entity has shown a reasonable period of starting to return to profitability.

Impairment Estimates

We test annually whether goodwill has suffered any impairment. Other assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. For the purposes of assessing impairment, assets are grouped into CGUs at the lowest levels for which there are separately identifiable cash flows. The recoverable amount of CGUs has been based on value in use calculations that require the use of estimates. The calculation of each segment’s discounted net present value requires extensive use of estimates and assumptions about discount rates and forecasted cash flows. Actual results could be different. Future changes in assumptions or market conditions may negatively affect these discounted cash flows.

In note 7 of the consolidated financial statements we have disclosed the key assumptions used for the value in use calculations for all segments where impairment testing was performed. In the segments where goodwill impairment testing was performed, there was significant headroom between the recoverable amount per the value in use calculation and the

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carrying amount of the segment assets. As a result,management believes that a reasonable change in assumptions would not trigger any impairments.

Customer Relationships

The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. An increase in churn rates may lead to a reduction in the estimated useful life.

Product Development Cost

Product development cost directly attributable to the design and testing of identifiable and unique software products controlled by us are recorded as intangible assets when the criteria in note 2.6 to our consolidated financial statements have been met. The assessment as to when these criteria have been met is subjective and capitalization has been based on management’s best judgement of facts and circumstances in existence at year end.

The useful lives of development costs capitalized are reviewed on an at least an annual basis. The useful life estimates are based on historical experience with similar assets as well as anticipation of future events such as technological changes, which may impact the useful life. The residual values of product development costs are estimated to be zero.

Provision for Impairment of Trade Receivables

The provision for impairment of trade receivables reflects our estimates of losses arising from the failure or inability of our customers to make required payments. The provision is based on the aging of customer accounts, customer creditworthiness and our historical write-off experience. Changes to the allowance may be required if the financial condition of our customers improves or deteriorates. Historically, changes to the estimate of losses have not been material to our financial position and results.

Allocation between in-vehicle devices and inventory

The allocation between in-vehicle devices and inventory reflects our estimates of how units are expected to be sold, thereby it is a significant area of judgement for the Group.

Recent Accounting Pronouncements

There are no IFRS or International Financial Reporting Interpretations Committee (“IFRIC”), interpretations that are effective for the first time during fiscal year 2018 that had a material impact on our consolidated financial statements.

Certain new accounting standards and interpretations have been published that are not mandatory for the March 31, 2018 reporting period, and have not been early adopted by the Group in fiscal year 2018. The effects of adopting IFRS 9, IFRS 15 and IFRS 16 are described below. Management is in the final stages of its project to adopt IFRS 9, IFRS 15 and IFRS 16, and as such, the figures mentioned below represent only our current expectations of the impact of these standards.

IFRS 9 Financial Instruments (effective date: January 1, 2018)

IFRS 9, ‘Financial Instruments’, addresses classification and measurement of financial assets and replaces the multiple classification and measurement models in IAS 39, ‘Financial Instruments: Recognition and Measurement’ with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 also introduces a new impairment model and aligns hedge accounting more closely with an entity’s risk management. The standard is effective for us from April 1, 2018.

The most relevant change to the Group is the requirement to use an expected loss model, instead of the incurred loss model, which is currently being used when assessing the recoverability of trade and other receivables. Based on the expected credit loss model contained in IFRS 9, the expected increase in the provision for doubtful debts at April 1, 2018 is between R2.0 million and R4.0 million.

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IFRS 15 - Revenue from contracts with customers (effective date: January 1, 2018)

IFRS 15 ‘Revenue from contracts with customers’ replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction Contracts.’ It is a single, comprehensive revenue recognition model for all contracts with customers and has the objective of achieving greater consistency in the recognition and presentation of revenue. In terms of the new standard, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of goods or services transfers to a customer.

The revenue standard is effective for annual periods beginning on or after January 1, 2018 and therefore is applicable for us from April 1, 2018.

The standard permits a modified retrospective cumulative catch-up approach for the adoption, which we have decided to apply. Under this approach we will recognize transitional adjustments in retained earnings on the date of initial application (i.e. April 1, 2018), without restating the comparative period. Under the practical expedient, the new requirements only need to be applied to contracts that are not completed as of April 1, 2018.

We have assessed the impact of applying IFRS 15 on our financial statements and have identified the following areas that will be affected:

Costs incurred in obtaining a contract

Commissions incurred to acquire contracts need to be capitalized and amortized, unless the amortization period is 12 months or less. Currently, we expense commissions. Under IFRS 15, the amortization expense reflects the settlement of the related performance obligations, which, depending on the specific contract, may include hardware, installation, training and/or service. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service will be amortized over the expected life of the contract.

The expected impact at April 1, 2018 is as follows:

– Capitalized commission asset with a net book value of between R43.0 million and R48.0 million; and

– Additional recurring commission liability of between R6.0 million and R8.0 million.

Recurring commission is commission which is payable for each month the customer remains with us. Since the commission relates to acquiring a customer contract, as part of the adoption of IFRS 15, a recurring commission liability will be recognized at the date on which the contract is acquired. The measurement will reflect the total commission payable over the minimum contractual period, or if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. Under current accounting the recurring commissions are accrued for on a monthly basis.

Amortization expense of external commissions capitalized under IFRS 15 will be recognized in cost of sales, while that of internal commissions will be recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient will also be classified in the same manner. This is in line with the current income statement presentation of the commission expense. The impact of IFRS 15 on both cost of sales and sales and marketing costs for fiscal 2019 is not expected to be material based on current forecasts.

Significant financing:

In respect of contracts for which we receive payment more than 12 months in advance, interest expense will need to be accrued on the income received in advance liability. This will result in the revenue being measured at a higher amount when it is recognized, compared to current accounting.

At April 1, 2018, it is expected that the income received in advance liability (which will be disclosed as ‘liabilities related to contracts with customers’) will be between R1.0 million and R3.0 million higher than the balance at March 31, 2018.

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Fixed escalations:

Fixed escalations will need to be spread evenly over the contract period resulting in the related revenue being different to what is actually billed. In the earlier part of the contract, revenue will be higher than the amount billed, while in the latter part, it will be lower. Currently, we recognize the increase in revenue due to fixed escalations only once the escalations are effective.

A contract asset of between R1.0 million and R2.0 million is expected to be recognized on April 1, 2018 reflecting the amount by which revenue should have been higher under IFRS 15 in periods prior to March 31, 2018 as a result of straight-lining the fixed escalations.

IFRS 16 - Leases (effective date: January 1, 2019)

IFRS 16, ‘Leases’ replaces IAS 17, ‘Leases’, and addresses the accounting and disclosures of leases.

The standard provides a single lessee accounting model, requiring lessees to recognize right-of use assets and lease liabilities for all leases unless the lease term is 12 months or less or, the underlying asset is a low-value asset. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting remaining substantially unchanged from its predecessor, IAS 17.

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

We have chosen to apply the ‘simplified approach’ on adoption of IFRS 16 that includes certain relief related to the measurement of the right-of-use asset and the lease liability at April 1, 2018, rather than full retrospective application. Furthermore, the ‘simplified approach’ does not require a restatement of comparatives. We lease land and buildings, office equipment and vehicles which are currently treated as operating leases.

The expected impact at April 1, 2018 is as follows:

– Right-of-use asset with a net book value of between R29.0 million and R32.0 million

– Lease liability (net of accruals/prepayments already recognized) of between R31.0 million and R35.0 million.

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

IFRS 9 Assets	(R2.0 million to R4.0 million)
IFRS 15 Assets	R44.0 million to R50.0 million
IFRS 16 Assets	R29.0 million to R32.0 million
Total Assets	R71.0 million to R78.0 million
IFRS 15 Liabilities	R7.0 million to R11.0 million
IFRS 16 Liabilities	R31.0 million to R35.0 million
Deferred tax liabilities	R6.0 million to R10.0 million
Total liabilities	R44.0 million to R56.0 million
Net increase in retained income	R22.0 million to R27.0 million

Summary of the expected impact on fiscal 2019 results of adopting IFRS 9, IFRS 15 & IFRS 16:

The impact on profit after tax for fiscal 2019 is not expected to be material.

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5B. LIQUIDITY AND CAPITAL RESOURCES

We believe that our cash and borrowings available under our credit facilities will be sufficient to meet our liquidity requirements for the foreseeable future. Please refer to note 12 to the consolidated financial statements, which includes details of the credit worthiness of the financial institutions where cash and cash equivalents are held, as well as the currencies in which cash and cash equivalents were denominated in at March 31, 2018, 2017 and 2016.

The following tables provide a summary of our cash flows for each of the three years ended March 31, 2018, 2017 and 2016:

	Fiscal Year Ended March 31,
	2018			2018			2017			2016
	(In thousands)
Cash generated from operating activities		$29,869			R353,208			R323,571			R240,434
Cash used in investing activities	(28,931		)	(342,135		)	(292,894		)	(249,714		)
Cash used in financing activities	(5,286		)	(62,494		)	(519,576		)	(223,229		)
Effects of exchange rate (losses)/gains on cash	(1,216		)	(14,374		)	(15,530		)	165,856
Net decrease in cash and cash equivalents		($5,564	)		(R65,795	)		(R504,429	)		(R66,653	)

In fiscal year 2018, the cash used in financing activities includes share repurchases of R18.7 million and dividends paid of R53.2 million. In fiscal year 2017, the cash used in financing activities includes share repurchases of R473.7 million and dividends paid of R53.0 million. In fiscal year 2016, the cash used in financing activities includes share repurchases of R123.8 million and dividends paid of R107.2 million.

The Group has minimum liquidity risk due to the recurring nature of its income and the availability of the cash resources set out below:

	Fiscal Year Ended March 31,
	2018		2018		2017
	(In thousands)
Cash and cash equivalents, net of overdrafts		$24,569		R290,538		R356,333

We fund our operations, capital expenditure and acquisitions through cash generated from operating activities, cash on hand and our undrawn borrowing facilities.

Following the completion of our IPO of ADSs in fiscal year 2014, we discontinued our then policy of declaring regular dividends in order to increase the funds available to pursue opportunities for more rapid growth. During fiscal year 2016, after a strategic review, the Board decided to reintroduce the Company’s policy of paying regular dividends, which are considered on a quarter-by-quarter basis.

On May 23, 2017, the MiX Telematics Limited Board approved a share repurchase program of up to R270 million under which the Company may repurchase its ordinary shares, including ADSs. We expect any repurchases under this share repurchase program to be funded out of existing cash resources. Refer to “Item 7A. Major Shareholders” for information regarding our share repurchase program.

Operating Activities

Net cash generated from operating activities in fiscal year 2018 increased to R353.2 million from R323.6 million in the prior year, which is primarily attributable to improved cash generated from operations before working capital changes of R149.3 million offset by negative net working capital changes of R113.4 million, lower interest received of R4.2 million and increased taxation paid of R2.1 million. Net cash generated from operating activities during fiscal year 2018 consisted of our operating profit (after excluding non-cash charges) of R494.6 million, a net investment in working capital of R81.6 million, net interest received of R4.8 million and taxes paid of R64.7 million.

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Net cash generated from operating activities in fiscal year 2017 increased to R323.6 million from R240.4 million in fiscal year 2016 which is primarily attributable to improved cash generated from operations before working capital changes of R22.1 million and positive net working capital changes of R61.2 million. Net cash generated from operating activities during fiscal year 2017 consisted of our operating profit (after excluding non-cash charges) of R345.3 million, a net reduction in working capital investments of R31.8 million, net interest received of R9.1 million and taxes paid of R62.6 million.

Net cash generated from operating activities in fiscal year 2016 increased to R240.4 million from R217.6 million in fiscal year 2015 which is primarily attributable to decreased investments in working capital in fiscal 2016, offset by an increase in taxation paid. Net cash generated from operating activities during fiscal year 2016 consisted of our operating profit (after excluding non-cash charges) of R323.2 million, net investments in working capital of R29.4 million, net interest received of R6.1 million and taxes paid of R59.5 million.

Investing Activities

Net cash used in investing activities in fiscal year 2018 increased to R342.1 million from R292.9 million in fiscal year 2017. Net cash used in investing activities during fiscal year 2018 primarily consisted of capital expenditures of R338.3 million. Capital expenditures during the year included purchases of intangible assets of R99.6 million, which included capitalized development costs of R67.2 million, customer relationships of R5.3 million, as well as computer software, technology, in-house software and other intangibles of R27.1 million, and cash paid to purchase property, plant, and equipment of R238.6 million, which included in-vehicle devices of R229.8 million. In addition, net cash used in investing activities also included a net increase in restricted cash of R8.3 million offset by proceeds on sale of property, plant and equipment and intangible assets of R4.4 million.

Net cash used in investing activities in fiscal year 2017 increased to R292.9 million from R249.7 million in fiscal year 2016. Net cash used in investing activities during fiscal year 2017 primarily consisted of capital expenditures of R295.5 million. Capital expenditures during the year included purchases of intangible assets of R115.3 million, which included capitalized development costs of R77.0 million as well as computer software, technology, in-house software and other intangibles of R38.2 million, and cash paid to purchase property, plant, and equipment of R180.2 million, which included in-vehicle devices of R169.0 million. In addition to the capital expenditure, net cash used in investing activities also included R1.1 million of deferred consideration paid as a result of fiscal year 2014 acquisitions. These were offset by a net decrease in restricted cash of R3.4 million.

Net cash used in investing activities in fiscal year 2016 increased to R249.7 million from R189.8 million in fiscal year 2015. Net cash used in investing activities during fiscal year 2016 primarily consisted of capital expenditures of R241.9 million. Capital expenditures during the year included capitalized development costs of R59.3 million and cash paid to purchase property, plant, and equipment of R155.6 million, which included in-vehicle devices of R143.1 million. In addition to the capital expenditure, net cash used in investing activities also included R1.4 million of deferred consideration paid as a result of fiscal year 2014 acquisitions and R18.0 million related to the contingent consideration payable in respect of the Compass acquisition in fiscal year 2015. These were offset by a net decrease in restricted cash of R10.9 million.

Financing Activities

In fiscal year 2018, net cash used in financing activities was R62.5 million. The net cash used in financing activities in fiscal year 2018 included share repurchases of R18.7 million, dividends paid of R53.2 million and the acquisition of non-controlling interest of R1.4 million, offset by R10.7 million in proceeds received from the issuance of shares relating to share options exercised under the share option scheme.

In fiscal year 2017, net cash used in financing activities was R519.6 million. The net cash used in financing activities in fiscal year 2017 included share repurchases of R473.7 million, dividends paid of R53.0 million offset by R7.0 million in proceeds received from the issuance of shares relating to share options exercised under the share option scheme.

In fiscal year 2016, net cash used in financing activities was R223.2 million. The net cash used in financing activities in fiscal year 2016 included share repurchases of R123.8 million, dividends paid of R107.2 million and R7.7 million in proceeds received from the issuance of shares relating to share options exercised under the share option scheme.

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Credit Facilities

At March 31, 2018, our principal sources of liquidity were net cash balances (consisting of cash and cash equivalents less bank overdraft) of R290.5 million ($24.6 million) and unutilized borrowing capacity of R70.8 million ($6.0 million) available through our credit facilities.

Our principal sources of credit are our facilities with Standard Bank Limited and Nedbank Limited. We have a R70.0 million overdraft facility and an unutilized vehicle and asset finance facility of R8.5 million with Standard Bank Limited that bear interest at South African Prime less 1.2%. At March 31, 2018, R17.7 million ($1.5 million) was utilized under the overdraft facility. We use this facility as part of our foreign currency hedging strategy. We draw down on this facility in the applicable foreign currency in order to fix the exchange rate on existing balance sheet foreign currency exposure that we anticipate settling in that foreign currency. Our obligations under the overdraft facility with Standard Bank Limited are guaranteed by the Company and our wholly-owned subsidiaries, MiX Telematics Africa Proprietary Limited and MiX Telematics International Proprietary Limited, and secured by a pledge of accounts receivable by the Company and MiX Telematics International Proprietary Limited.

During fiscal year 2014, we entered into a R10.0 million facility from Nedbank Limited that bears interest at South African Prime less 2%. As at March 31, 2018, the facility was undrawn. We use this facility for working capital purposes in our Africa operations.

Our credit facilities with Standard Bank Limited and Nedbank Limited contain certain restrictive clauses, including without limitation, those limiting our and our guarantor subsidiaries’, as applicable, ability to, among other things, incur indebtedness, incur liens, or sell or acquire assets or businesses.

Please refer to section “Item 5F. Tabular Disclosure of Contractual Obligations”, where the Group’s contractual cash obligations have been disclosed.

5C. RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES

For our disclosures in respect of research and development, technology and intellectual property please refer to “Item 4B. Business Overview.”

5D. TREND INFORMATION

Subscription revenue is our largest and fastest growing component of total revenue. The table below sets out subscription revenue and total subscribers for each of the eight quarters in the period ending March 31, 2018.

	For the Quarter Ended,
	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016
Subscription Revenue (R’000)	373,623	376,364	349,262	335,367	321,708	310,695	301,337	306,174
Subscribers	676,866	664,816	640,158	625,602	622,062	605,317	584,994	577,950

Subscription revenue increased sequentially in each of the quarters presented except for the quarters ending September 30, 2016 and March 31, 2018 where the decline in subscription revenue was as a result of the impact of the Rand strengthening primarily against the British Pound and U.S. Dollar.

Subscription revenue growth is primarily due to increases in the number of total subscribers in each quarter.

Historical trends in profitability may be affected by hardware revenue fluctuations, caused by long sales cycles for our enterprise fleet management solutions and an increasing trend towards fully-bundled subscriptions as opposed to upfront hardware purchases.

In fiscal years 2018, 2017 and 2016, our subscription revenue derived from customers in the oil and gas industry was in excess of 20% of subscription revenue and represents our single biggest vertical amongst our enterprise fleet management customers. Our oil and gas customers are primarily in the Americas and Middle East regions. The oil and gas industry is complex, and numerous geopolitical, economic, environmental and other factors affect pricing. Expectations for future crude oil and natural gas prices, product demand and supply affect our customers’ spending habits. We have seen

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consistent subscriber growth in this market vertical throughout fiscal 2018, which can be attributed to increased industry activity as a result of rising crude oil prices and increased demand for natural gas.

5E. OFF-BALANCE SHEET ARRANGEMENTS

We do not engage in any off-balance sheet financing activities. We do not have any interest in entities referred to as variable interest entities, which include special purpose entities and other structured finance entities which are not consolidated.

5F. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

Our contractual cash obligations at the end of fiscal year 2018 are summarized in the following table:

	Total		Less than 1 Year		1 – 3 Years		3 – 5 Years		More than 5 Years
	(In thousands)
Operating lease obligations		R27,778		R14,625		R10,894		R2,259	—
Approved and committed capital commitments	28,647		28,647		—		—		—
Outstanding purchase obligations	23,663		23,579		84		—		—
Total	R80,088		R66,851		R10,978		2,259		—

Total contractual obligations as of March 31, 2018, were R80.1 million ($6.8 million).

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ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

6A. DIRECTORS AND SENIOR MANAGEMENT

The names of the senior management and directors of MiX Telematics Limited, their ages at July 2, 2018, and their positions, are set forth in the table below. The business address of each of our members of senior management and directors is c/o MiX Telematics Limited, Howick Close, Waterfall Park, Midrand, South Africa, 1685.

Name	Age	Position
Senior Management
Stefan Joselowitz	59	President and Chief Executive Officer / Director
Paul Dell	36	Interim Chief Financial Officer / Director
Charles Tasker	54	Chief Operating Officer / Director
Catherine Lewis	43	Executive Vice President — Technology
Gert Pretorius	50	Executive Vice President — Africa
Non-Executive Directors
Robin Frew	58	Chairman
Enos Banda	52	Director
Richard Bruyns	65	Director
Fundiswa Roji-Maplanka	42	Director
Ian Jacobs	41	Director
Anthony Welton	70	Director

Senior Management

Stefan Joselowitz has served as our Chief Executive Officer, and as a member of our Board of Directors, since he founded the Group in 1996. In 2008, he relocated to the United States as part of our global expansion strategy. Since founding MiX, Stefan Joselowitz has overseen six acquisitions. He successfully orchestrated the Company’s listing on the JSE in 2007 and in 2013 led the team that listed the Company on the NYSE, in the process concluding a $65 million capital raising to fund future growth. Prior to MiX, from 1984 to 1995, he served as Chief Executive Officer, and previously, Sales Director, of Shurlok Proprietary Limited, a developer of electronic systems for the automotive industry, helping to build the company into a leader in the field of vehicle safety and security.

Paul Dell has served as the Interim Chief Financial Officer and as a member of our Board of Directors since February 2017. Prior to his appointment to this position, he was our Group Financial Controller from September 2012 and before that he served as Group Financial Manager from July 2010 when he joined the Group. From October 2007 to June 2010, Paul Dell served as Group Internal Audit Manager and then Group Accountant at Batemen Engineering, an international project management business based in South Africa. He was previously employed by PricewaterhouseCoopers Inc. from November 2003 to September 2007, during which time he completed two secondments to the United States. He is a registered chartered accountant in South Africa.

Charles Tasker has served as the Chief Operating Officer since June 2014 and has served as a member of our Board of Directors since August 2007. Prior to assuming the position of Chief Operating Officer, Charles Tasker served as the Executive responsible for Fleet Solutions worldwide since our acquisition of OmniBridge in 2007. Prior to MiX, Charles Tasker founded DataPro in 1986, an Internet service provider and software development company, which was acquired by Control Instruments Group Limited in 1996. As part of that acquisition, Charles Tasker joined Control Instruments to lead its fleet management business, which became OmniBridge. Charles Tasker has more than 25 years of entrepreneurial and management experience working with companies in the technology sector.

Catherine Lewis, our Executive Vice President for Technology, joined the business formerly known as OmniBridge in May 2001, and in November 2013 was promoted to Managing Director of MiX’s Central Services Organisation. Catherine Lewis is the custodian of the MiX Telematics brand and is responsible for product management and development, the hosting and operations of the MiX SaaS platform, marketing, business systems, technical support and manufacturing. Catherine Lewis holds a Business Science degree with Honors in Information Systems from the University of Cape Town.

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Gert Pretorius, an Executive Vice President, was appointed Managing Director of MiX Africa from October 2016, and served as the Executive Vice President for Information Systems from June 2014 to May 2017. He served as the Executive responsible for Africa Fleet Solutions from January 2012 to June 2014. Gert Pretorius has served in various other senior sales and operations roles at MiX before being appointed Chief Operating Officer for MiX Africa in 2010. Previously, Gert Pretorius served as Operations Manager for OmniBridge. From 1998 until joining OmniBridge, Gert Pretorius held senior executive roles at fleet management companies including Super Group and Daimler Fleet Management and in the security industry at Coin Security Group.

Directors

Robin Frew, a non-executive director (independent in terms of the NYSE Listing Standards, but not in terms of the JSE Listings Requirements), has served as a member of our Board of Directors since January 1996 and was appointed Chairman of the Board of Directors in October 2016; he is also a member of the Nominations and Remuneration Committee. Robin Frew was a Founding Director and Chief Executive Officer of Radiospoor Telecommunications Limited, a specialist provider of mobile cellular services. Radiospoor was involved in the Cellular industry as a service provider to the Vodacom and MTN businesses from the outset in 1993. Radiospoor listed its business on the Johannesburg Stock Exchange in 1997. The business was sold in 2001. Robin Frew then co-founded a private equity investment business and currently manages a private investment partnership, Masalini Capital Proprietary Limited, in the role of Managing Director.

Richard Bruyns an independent non-executive director, has served on our Board of Directors from August 2007. In October 2016, he was appointed as the Lead Independent Non-Executive Director and Chairman of the Nominations and Remuneration Committee. He is also a member of our Audit and Risk Committee, and our Social and Ethics Committee. Richard Bruyns has been managing listed companies since 1998, when he was with Hodgson and Darling, and has served as a member and/or chairman of board committees of various listed companies over the years.

Enos Banda an independent non-executive director, has served as a member of our Board of Directors since May 2013. Enos Banda is also a member of our Audit and Risk Committee. Enos Banda is the chief executive officer of Anergi Holding Company, a pan-Africa Power company since 2017, and has served as a non-executive director of Super Group Limited since July 2011. Furthermore, Enos Banda has been a member of a number of boards of listed and unlisted international and South African companies, including serving as chairman of Gold Reef Resorts Limited, which merged with Tsogo Sun, from July 2009 to February 2011. He has served as chairman of the South African National Electricity Regulator and chairman of the Municipal Infrastructure Investment Unit of the South African Government. Enos Banda was country head for global bank Credit Suisse First Boston and later, head of sub-Saharan Africa for HSBC Corporate and Investment Bank. Enos Banda has practised law in both the United States and in South Africa, and is a member of the New York law bar and an Advocate of the Supreme Court of South Africa. Enos Banda is a Senior Associate and Faculty Member of the University of Cambridge Institute on Sustainability Leadership and serves on the US Board of the South Africa Washington International Program, a non-profit organization that supports emerging South African leaders.

Ian Jacobs an independent non-executive director, was elected as a member of our Board of Directors in June 2016, and serves as a member of our Nominations and Remuneration Committee. Ian Jacobs graduated from Yeshiva University, New York in 1997. He worked as a research analyst focused on small capitalization companies from 1997 to 2002 at Schroders, Sidoti & Co. and Goldman Sachs & Co., respectively. In 2003, after graduating from Columbia Business School, New York, Ian Jacobs joined Berkshire Hathaway Inc. where he worked on investment research and other projects as directed by the chairman/CEO. In 2009, Ian Jacobs left Berkshire Hathaway Inc. and founded 402 Capital LLC, a concentrated value focused manager that invests in businesses with structural competitive advantage.

Anthony Welton an independent non-executive director, has served as a member of our Board of Directors since February 2008. Anthony Welton is chairman of the Audit and Risk Committee and is a member of our Social and Ethics Committee. Anthony Welton has also served as a member of the Nominations and Remuneration Committee from March 2013 to May 2017. His qualifications and the experience gained during his career as a financial director of JSE listed companies, which spanned the years from 1986 to 2009, have provided him with the necessary expertise to undertake these key roles. He is a member of the South African Institute of Chartered Accountants.

Fundiswa Roji-Maplanka an independent non-executive director, was elected as a member of our Board of Directors in October 2017. She is the chairperson of the Social and Ethics Committee and also serves as a member of our Audit and Risk Committee. Fundiswa Roji-Maplanka is a Chartered Accountant and is the founding partner of an investment holding company, Dlondlobala Capital, which she co-founded in 2015. Fundiswa Roji-Maplanka has professional experience in finance, audit, corporate governance, strategy, private equity, mergers & acquisitions, investment management, and investor relations. Fundiswa Roji-Maplanka was a senior manager responsible for strategy and investor relations at the Imperial Group until the end of 2014. Prior to joining the Imperial Group, she worked for over a decade at Kagiso Trust Investments, and

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later at Kagiso Tiso Holdings as a director of investments. During Fundiswa Roji-Maplanka’s tenure at Kagiso Trust Investments, she was a member of various boards across industries including Macsteel, Bytes Technology Group, Multotec, UTI Pharma and Universal Print Group. Fundiswa Roji-Maplanka was a member of the boards of radio assets of Kagiso Media, including Jacaranda FM and East Coast Radio, as part of managing the Media and ICT portfolio of the Kagiso Group. In the public arena, Fundiswa Roji-Maplanka has served on the board of Technology Innovation Agency and on the audit committee of the Commission for Gender Equality. Fundiswa Roji-Maplanka has also served as a non-executive director of the South African Venture Capital Association and is currently a member of the boards of the following non-profit organizations that focus on youth, education and health: Soul City Institute, and Programme for Improved Learning (PILO). She is currently serving as a trustee of two empowerment trusts; Ikwezi Trust, and the Imperial and Ukhamba Community Development Trust.

6B. COMPENSATION

Compensation of Directors and Executive Officers

Non-Executive Director Compensation

Fees payable to non-executive directors are proposed and reviewed biannually by our Nominations and Remuneration Committee and recommended to our Board of Directors, which in turn makes recommendations to shareholders with reference to the fees paid by comparable companies, responsibilities taken by the non-executive directors and the importance attached to the retention and attraction of high-caliber individuals. At the annual meeting of shareholders held on September 19, 2017, our shareholders approved non-executive director fees for a period of two years from the passing of the resolution (i.e. September 2017) or until its renewal, whichever is the earliest. These fees are set out below:

	Annual Fee
Description	(In thousands)
Director’s fee		R330
Audit and Risk Committee member *	170
Nominations and Remuneration Committee member *	70
Social and Ethics Committee member *	55
Chairman of the Board *	360
Lead Independent Director *	240
Chairman of the Audit and Risk Committee **	240
Chairman of the Nominations and Remuneration Committee **	105
Chairman of the Social and Ethics Committee **	100

*    In addition to the directors’ fee

**     Includes committee membership fee

Non-executive directors do not participate in any incentive programs. Non-executive directors are not provided with bonuses or long-term incentive plans. We do not set aside or accrue any amounts to provide pension, retirements or similar benefits for our non-executive directors. The aggregate compensation we have paid or accrued for payment to our non-executive directors in fiscal year 2018 was R3.9 million (2017: R3.5 million).

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The following table sets forth the amounts paid to our non-executive directors for fiscal year 2018.

	Fiscal Year ended March 31,
	2018		2018
Non-Executive Directors	(In thousands)
Richard Bruyns (1)		$65		R773
Enos Banda	41		486
Christopher Ewing (1) (2)	29		348
Robin Frew (1)	63		746
Ian Jacobs	33		386
Anthony Welton	52		614
Fundiswa Roji-Maplanka (3)	25		292
Sub-total	308		3,645
Value-added tax (1)	22		266
Total		$330		R3,911

⁽¹⁾  Value-added tax included as part of certain invoices received. Directors’ fees shown exclude value-added tax.

⁽²⁾  Resigned from the Board with effect from November 7, 2017.

⁽³⁾  Appointed to the Board with effect from October 3, 2017.

Executive Director and Other Senior Management Compensation

Our remuneration policy is formulated to attract and retain high-caliber executives and motivate them to develop and implement our business strategy in order to optimize long-term shareholder value. Our objective is to have our remuneration policy conform to best practice standards. Our remuneration policy is based on the following key principles:

• total rewards are set at levels that are considered to be responsible and competitive within the relevant market;

• total incentive-based rewards are earned through the achievement of demanding growth and return targets consistent with shareholder interests over the short, medium and long-term:

• Incentive plans, performance measures and targets are structured to operate soundly throughout the business cycle; and

• the design of long-term incentive plans is prudent and does not expose shareholders to unreasonable financial risk.

Executive compensation is comprised of the following four principal elements:

• basic salary and travel allowances;

• bi-annual incentive bonuses;

• share incentive plans; and

• retirement and other benefits including group life and health insurance.

The aggregate compensation, including benefits in kind, for our executive directors and other senior management for fiscal year 2018, was approximately R38.9 million.

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The following table sets forth the amounts paid to our executive committee members for fiscal year 2018.

	Fiscal Year ended March 31, 2018
		Salary and Allowances (2)		Other Benefits (3)		Retirement Benefits		Performance Bonuses (4)		Total
Executives (1)		(In thousands)
Stefan Joselowitz (5)			R6,841	—		—			R6,737		R13,578
Charles Tasker (5)		5,393		—		—		4,133		9,526
Paul Dell		1,844		100		71		1,750		3,765
Gert Pretorius		2,573		268		433		3,299		6,573
Catherine Lewis		2,570		122		130		2,603		5,425
Total			R19,221		R490		R634		R18,522		R38,867

⁽¹⁾  Each of the listed executives is party to an employment contract with us as described in “Executive Employment Contracts”.

⁽²⁾  Allowances include cost of living and travel allowances.

⁽³⁾  Other benefits represent group life and health insurance.

⁽⁴⁾  Performance bonuses are based on actual amounts paid during the financial year.

⁽⁵⁾  Individual paid in U.S. Dollars. The amounts paid to individuals in U.S. Dollars have been translated into South African Rand at the exchange rate applicable at the time of payment.

Basic Salary

The basic salary of each executive is subject to annual review and is set to be reasonable and competitive with reference to external market practice in similar companies, which are comparable in terms of size, market sector, business complexity and international scope. Company performance, individual performance and changes in responsibilities are also taken into account when determining annual basic salaries.

Bi-Annual Incentive Bonus

All executives are eligible to receive a performance-related bi-annual bonus. Our Nominations and Remuneration Committee reviews bonuses at the half-year and at year-end, and determines the bonus level based on performance criteria set at the start of the performance period. The criteria include targets relating to subscription revenue growth, operating profit, Adjusted EBITDA targets, cash generated by operations and certain discretionary elements. The short-term incentive program is available to executive directors, senior executives and selected employees. Cash bonuses to senior executives and executive directors are approved by our Nominations and Remuneration Committee.

Equity Incentive Plans

The Group has issued share options under two equity incentive plans, the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), to directors and certain key employees within the Group. Since the introduction of the LTIP, which was approved by shareholders in terms of an ordinary resolution on September 17, 2014, no further awards have or will be made in terms of the TeliMatrix Group Executive Incentive Scheme.

The LTIP is now being used to issue share incentives to employees and executive members within the Group. The LTIP provides for three types of grants to be issued, namely performance shares, retention shares or share appreciation rights (“SARs”). To date only SARs have been issued under the LTIP.

As at March 31, 2018, executive committee members have been issued equity incentives under the TeliMatrix Group Executive Incentive Scheme and under the LTIP.

The TeliMatrix Group Executive Incentive Plan is a share option plan. The share option plan and the award of share options to executive directors and senior executives is controlled by the Nominations and Remuneration Committee. Historically, motivations for the award of share options were presented by the Chief Executive Officer to the Nominations and Remuneration Committee which, after review and consideration, recommended the award of such options as it deemed fit to the Board for approval. Selected participants received grants of share options which are conditional rights to receive MiX shares at prices equal to the exercise price. Vesting of options is subject to time and performance conditions. The

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performance conditions and period were determined by the Board on a grant-by-grant basis in respect of each new grant of options.

The targets and measuring terms relating to each issue are detailed in the letter of grant. After vesting, the options will become exercisable. Upon exercise by a participant, the Company settles the value of options by delivering MiX shares that will be issued out of authorized unissued MiX shares. These options are treated as equity-settled instruments.

Any senior employee with significant managerial or other responsibility, including any director holding a salaried position with us, is eligible to participate in the share incentive plan. As of March 31, 2018, options to purchase 9,100,000 of our ordinary shares with a weighted average exercise price of R3.09 per share were outstanding, and options for the purchase of 7,350,000 such shares were fully vested.

LTIP awards are controlled by the Nominations and Remuneration Committee. Motivations for the awards are presented by the Chief Executive Officer to the Nominations and Remuneration Committee which, after review and consideration, recommends the award as it deems fit to the Board for approval. The award/exercise price of the SARs, performance shares and retention shares granted are equal to the closing market value of ordinary shares on the day preceding the date of the grant.

Vesting of performance shares, retention shares and SARs are subject to time and performance conditions. The performance conditions and period are determined by the Board on a grant-by-grant basis in respect of each new grant.

The targets and measuring terms relating to each issue are detailed in the letter of grant. After vesting, the retention and performance shares become immediately vested while the SARs will become exercisable.

The value of the difference between the exercise and grant price of the SARs may be settled at the Company’s option, by the Company by delivering shares or by settling the value in cash.  Because the Company intends to settle the SARs by delivering shares and has not established a past practice of settling in cash, the SARs are classified as equity-settled share-based payment awards.

The following table sets forth the outstanding stock-based compensation benefits (share options and SARs) for executives at March 31, 2018.

Share options	November 7, 2012 (In thousands)		September 10, 2014 (In thousands)		Total (In thousands)
Stefan Joselowitz (1)	2,500		—		2,500
Charles Tasker (1)	2,000		1,500		3,500
Gert Pretorius	1,100		1,000		2,100
Catherine Lewis	—		1,000		1,000
	5,600		3,500		9,100
Option strike price (cents per share)	246		411
JSE share price on grant date (cents per share)	300		411
Expiry date	November 7, 2018		September 10, 2020
Performance conditions
Minimum shareholder return of	10	%	10	%

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SARs	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		May 30, 2017 000s		Total 000s
Stefan Joselowitz (1)	1,000		1,000		—		1,100		3,100
Charles Tasker (1)	750		750		875		1,100		3,475
Paul Dell (1)	200		200		875		1,100		2,375
Gert Pretorius	500		500		875		1,100		2,975
Catherine Lewis	500		500		875		1,100		2,975
	2,950		2,950		3,500		5,500		14,900
JSE share price on grant date (cents per share)	319		289		328		345
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022		May 30, 2023
Performance conditions
Minimum shareholder return of	10	%	10	%	10	%	10	%

⁽¹⁾    Executive director at March 31, 2018.

Retirement Benefits

It is our policy to provide retirement benefits to all our South African, United Kingdom, United States, Brazilian, Romanian and Australian employees.

All these retirement benefits are defined contribution plans and are held in separate trustee-administered funds. These plans are funded by members as well as company contributions. The South African plan is subject to the Pension Funds Act of 1956, the U.K. plan is subject to the United Kingdom Pensions Act 2008, and the Australian plan is subject to the Superannuation Guarantee Administration Act of 1992. In Brazil, the Group contributes to a mandatory state social contribution plan known as Regime Geral de Previdência Social. In Romania there is a mandatory social security contribution paid to the state budget, as defined by the Pension Law (Law 263/2010) and the Fiscal Code (Law 227/2015).

For the United States employees, a voluntary Internal Revenue Service section 401(k) tax-deferred defined contribution scheme is offered.

The full extent of the Group’s liability is the contributions made, which are charged to the income statement as they are incurred. For fiscal years 2018, 2017 and 2016, we contributed an aggregate of R27.1 million, R29.4 million and R27.1 million respectively, in respect of the retirement benefits.

Life Insurance

We offer group life insurance coverage up to nine times the basic annual salary for a number of employees, and absence cover for eligible employees who are long-term absentees for up to age 65 if the absence is due to illness or injury, or for up to three years if the absence is due to any other reason.

Health Care

We offer health care insurance for certain employees and their dependents. The health plan provides coverage for in-patient, day-patient and out-patient treatments and employees have the option of adding certain enhancements, such as additional hospital, dental and optical cover, to their plans.

Other Benefits

Executives are compensated on a cost-to-company basis and as part of their package, may be entitled to a car allowance, provident fund contributions, medical, and death and disability insurance. The provision of these benefits is considered to be market competitive for executive positions.

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Executive Employment Contracts

Our executive employment contracts continue indefinitely until terminated by either party and provide for the following:

• Executives are eligible to receive, in addition to their annual cost to company salary package, an annual performance bonus that will be paid out on a semi-annual basis. The amount of the annual bonus varies from year to year and is determined by our Nominations and Remuneration Committee. Executives are entitled to participate in our equity incentive plans, and are provided with a mobile phone for business use. Certain broadband costs are also paid by us.

• Employment may be terminated at any time if executives are found guilty of misconduct or have committed a breach of a material obligation under the employment agreement. Contracts may also be terminated if executives consistently perform poorly, are incompatible with our culture or become incapacitated and unable to perform.

• The inclusion of confidentiality, assignment of inventions and restraint of trade agreements.

The annual cost to company salary package of our executives is as follows:

• Stefan Joselowitz. Stefan Joselowitz is paid an annual cost to company salary package of $536,954.

• Paul Dell. Paul Dell is paid an annual cost to company salary package of R2,120,000 ($179,274).

• Charles Tasker. Charles Tasker is paid an annual cost to company salary package of $423,300.

• Gert Pretorius. Gert Pretorius is paid an annual cost to company salary package of R3,605,000 ($304,850).

• Catherine Lewis. Catherine Lewis is paid an annual cost to company salary package of R2,991,357 ($252,958).

External Appointments

Executive directors are not permitted to hold external directorships or offices, other than those of a personal nature, without the approval of our Board of Directors.

Indemnification Agreements and Policies; Insurance

Our Memorandum of Incorporation provides that we may:

• advance expenses to a director, or directly or indirectly indemnify a director in respect of the defense of legal proceedings, as set forth in Section 78(4) of the Companies Act of South Africa;

• indemnify a director in respect of liability as set forth in Section 78(5) of the Companies Act; and

• purchase insurance to protect us or a director as set forth in Section 78(7) of the Companies Act.

These indemnification provisions also apply to any former director, prescribed officer or member of any committee of our Board of Directors.

In addition, we have entered into agreements to indemnify our directors and executive officers to the maximum extent allowed under South African law. These agreements have, among other things, indemnified these individuals for certain expenses (including attorneys’ fees), judgements, fines and settlement amounts reasonably incurred by such person in any action or proceeding, including any action by or in our right, on account of any services undertaken by such person on our behalf or that person’s status as a member of our Board of Directors.

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6C. BOARD PRACTICES

Board of Directors

Our Board of Directors is composed of six non-executive directors and three executive directors. Our Memorandum of Incorporation requires that our Board of Directors must be comprised of at least four directors. At least one-third of the non-executive directors retire by rotation each year and stand for re-election at each annual general meeting in accordance with our Memorandum of Incorporation. Director appointments during the year are ratified at the next annual general meeting. The expiration of our current non-executive directors’ terms of office is set forth in the table below.

Non-Executive Director	Initial appointment to the Board of Directors	Year Current Term Expires
Richard Bruyns	August 2007	2018*
Enos Banda	May 2013	2019
Fundiswa Roji-Maplanka (1)	October 2017	2020
Robin Frew	January 1996	2019
Anthony Welton	February 2008	2020
Ian Jacobs	June 2016	2018*
Executive Director
Stefan Joselowitz	January 1996	Indefinite
Paul Dell	February 2017	Indefinite
Charles Tasker	August 2007	Indefinite

*	Proposed re-election to be approved by shareholders at our annual general meeting to be held on September 26, 2018.
(1)	Appointed to the board with effect from October 3, 2017. Appointment to be confirmed by shareholders at our annual general meeting to be held on September 26, 2018.

Please refer to “Item 6B. Compensation – Executive Employment Contracts” for further details in respect of the termination of executive director contracts. There are no directors’ service contracts with the Company or any of its subsidiaries providing for benefits upon termination of employment.

Directors are appointed on the basis of skill, experience and their contribution and impact on the Group’s activities. MiX recognizes and embraces the benefits of having a diverse Board, and sees increasing diversity at Board level as an essential element in maintaining a competitive advantage. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, background, race, gender and other distinctions between directors. Apart from the statutory requirements relating to eligibility and qualification, no additional eligibility requirements or qualifications are stipulated in our Memorandum of Incorporation. In accordance with its annual meeting plan, our Board of Directors meets at least quarterly.

Our Board of Directors has established committees to assist in the execution of its responsibilities. Each committee operates in accordance with approved terms of reference (a charter) and the performance of each committee is reviewed annually by our Board of Directors. The following is a brief description of each of the committees and their respective duties:

Audit and Risk Committee

Our Audit and Risk Committee assists our Board of Directors in matters relating to internal controls, financial reporting, external audit, internal audit, risk management and regulatory compliance. The Audit and Risk Committee operates under written terms of reference (a charter) that satisfies the applicable standards of the JSE, Companies Act, SEC and the NYSE. Our Audit and Risk Committee’s responsibilities include:

• reviewing internal control systems developed by management;

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• evaluating the effectiveness of the internal audit process in terms of its scope, execution, coverage, independence, skills, performance and position within the organization;

• reviewing internal controls over financial reporting, which include disclosure controls and procedures;

• evaluation of the effectiveness of the internal control frameworks and reviewing whether recommendations made by the external and internal auditors and advisers have been implemented;

• considering the security of our computer systems and evaluating contingency plans in the event of systems breakdowns and disasters;

• annually recommending the appointment of a registered and independent external auditor and determining the scope of engagement, fees and considering their independence;

• overseeing the financial reporting process and reviewing the quarterly results announcements, interim financial statements, annual financial statements, the annual report, SEC filings including the Form 20-F, preliminary announcements and special documents prior to release;

• reviewing, with management and the external auditor, the financial statements, key accounting policies, practices and estimates, any changes to accounting policies and estimates and judgements, significant adjustments, unadjusted differences and any disagreements;

• reviewing processes to ensure that reliable and efficient risk management strategies (including a combined assurance model), policies and risk insurance programs are in place; and

• reviewing the process for monitoring compliance with laws and regulations, including the King IV Report on Corporate Governance in South Africa.

Members of our Audit and Risk Committee consist only of non-executive directors, each of whom is expected to be financially literate and at least one member is required to have expertise in financial reporting. Since our listing on the NYSE our Audit and Risk Committee has been comprised solely of independent board members within the meaning of SEC and NYSE rules for purposes of the audit committee. This composition is also in accordance with the Companies Act and JSE Listings Requirements. A representative from both the outsourced internal audit function and the external auditors attend meetings. The Interim Chief Financial Officer and the Chief Executive Officer attend all meetings. The Chairperson of our Social and Ethics Committee is also a member of the Audit and Risk Committee. The committee meets at least six times a year, with two meetings a year focused on risk management. As of March 31, 2018, the members of our Audit and Risk Committee were Anthony Welton (chairperson), Enos Banda, Richard Bruyns and Fundiswa Roji-Maplanka. Anthony Welton is our audit committee financial expert as defined by SEC rules.

Nominations and Remuneration Committee

This committee is responsible for:

• overseeing that the Company’s remuneration strategy is market-related, competitive and business relevant in order to attract, retain and motivate diverse talent required to drive the desired behavior;

• reviewing and approving the Company’s Remuneration Policy and Implementation Report, based on principles of fair, responsible and transparent remuneration and as required by the King IV Report on Corporate Governance in South Africa;

• attending to the remuneration and benefits of senior executives and executive directors;

• advising on non-executive directors’ fees and fees for those directors who are members of Board committees, which are approved by shareholders at the annual general meeting;

• advising on senior executive and executive director appointments;

• reviewing succession planning at the executive level;

• confirming the share incentive plan and the allocation of awards under the plan; and

• selecting and recommending candidates for appointment to our Board of Directors.

The committee meets at least four times a year. As of March 31, 2018, the members of our Nominations and Remuneration Committee were Richard Bruyns (chairperson), Robin Frew and Ian Jacobs. Our Nominations and

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Remuneration Committee is composed solely of independent directors within the meaning of SEC and NYSE rules of independence.

Social and Ethics Committee

In accordance with the Companies Act, we established this committee in fiscal year 2012. Our Social and Ethics Committee monitors our activities, particularly with respect to any relevant legislation, other legal requirements or prevailing codes of best practice, regarding matters relating to:

• social and economic development, including our standing in terms of the goals and purposes of: (a) the ten principles set out in the United Nations Global Compact Principles; (b) the Organization for Economic Cooperation and Development recommendations regarding corruption; (c) the South African Employment Equity Act; and (d) the B-BBEE Act;

• good corporate citizenship;

• the environment, health and public safety, including the impact of our activities, products and services;

• consumer relationships, including our advertising, public relations and compliance with consumer protection laws;

• reviewing the process for monitoring compliance with laws, regulations and our Code of Ethics and Conduct; and

• labor and employment, including our standing in terms of the International Labor Organization Protocol on decent work and working conditions, our employment relationships and our contribution toward the educational development of our employees.

The Chief Executive Officer and Interim Chief Financial Officer are invited to attend all meetings. The committee meets at least three times a year. As of March 31, 2018, the members of our Social and Ethics Committee were Fundiswa Roji-Maplanka (chairperson), Richard Bruyns and Anthony Welton.

Executive Committee

We have also established an Executive Committee that is responsible for devising our strategy for recommendation to our Board of Directors and to implement the strategies and policies approved by our Board of Directors. Our Executive Committee is also responsible for our day-to-day business and affairs. As of March 31, 2018, the current members of our Executive Committee were Stefan Joselowitz, Charles Tasker, Paul Dell, Gert Pretorius and Catherine Lewis.

6D. EMPLOYEES

The following table presents the breakdown of our employees at the date indicated:

	As of March 31,
	2018	2017	2016
South Africa	840	833	866
United States	58	51	62
United Kingdom	53	56	49
United Arab Emirates	34	47	52
Australia	35	36	37
Brazil	22	17	14
Uganda	4	5	5
Romania	5	10	3
Thailand	3	1	1
Total	1,054	1,056	1,089
Full-time	983	1,032	1,067
Part-time	71	24	22
Total	1,054	1,056	1,089

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6E. SHARE OWNERSHIP

The table below sets forth information with respect to the beneficial ownership of our shares as of June 15, 2018, by each of our directors and executive officers. The beneficial ownership of ordinary shares is determined in accordance with the rules of the SEC and generally includes any ordinary shares over which a person exercises sole or shared voting or investment power, or the right to receive the economic benefit of ownership. For purposes of the table below, we deem shares subject to certain options that are currently exercisable or that may become exercisable within 60 days of June 15, 2018, to be outstanding and to be beneficially owned by the person holding the options for the purposes of computing the percentage ownership of that person but we do not treat them as outstanding for the purpose of computing the percentage ownership of any other person. The percentage of shares beneficially owned is based on 564,586,438 ordinary shares outstanding at June 15, 2018 (excludes 40,000,000 treasury shares held by MiX Investments Proprietary Limited, a wholly owned subsidiary of the Company).

	June 15, 2018
	Number of ordinary shares beneficially owned (In thousands)	Percentage of beneficial ownership
Non-executive
Richard Bruyns (1)	3,697	*
Enos Banda	—	—
Robin Frew (2)	63,847	11.3	%
Anthony Welton (3)	—	—
Fundiswa Roji-Maplanka	—	—
Ian Jacobs (4)	241	*
Executive
Stefan Joselowitz (5)	28,842	5.1	%
Charles Tasker (6)	4,807	*
Gert Pretorius (7)	1,938	*
Catherine Lewis (8)	2,025	*
Paul Dell	1	*
All directors and executive officers as a group (9)	105,398	18.7	%

*    Less than 1%.

⁽¹⁾  Includes 3,696,563 ordinary shares held by IS Wealth Creator SPI SR Bruyns. IS Wealth Creator SPI SR Bruyns is an endowment policy entity owned by Richard Bruyns. Voting and investment power over the ordinary shares held by IS Wealth Creator SPI SR Bruyns is exercised by Richard Bruyns.

⁽²⁾  Includes 60,410,880 ordinary shares held by Masalini Capital Proprietary Limited and 799,366 ordinary shares held by Masalini Investments No. 3 Proprietary Limited. Masalini Capital Proprietary Limited is 100% owned by the Masalini Trust (previously known as the Robin Frew Family Trust), of which Robin Frew is one of three trustees and a beneficiary. Voting and investment power over the ordinary shares held by Masalini Capital Proprietary Limited is exercised by majority consent of Robin Frew and the other trustees, Philip Kilroe and Juanita Lou Koster. Voting and investment power over the ordinary shares held by Masalini Investments No. 3 Proprietary Limited is exercised by Robin Frew. Includes 2,637,040 ordinary shares held by Thynk Capital Proprietary Limited (“Thynk”). Thynk is now wholly owned by Robin Frew and he is also the sole director and therefore has full voting and investment power over the shares owned by Thynk. Excludes 70,261,440 ordinary shares held by the GAF Family Trust, as to which Robin Frew disclaims beneficial ownership as he is a discretionary beneficiary but not a trustee.

⁽³⁾  Excludes 235,000 ordinary shares owned by Anthony Welton’s spouse, as to which he disclaims beneficial ownership.

⁽⁴⁾  Ian Jacobs disclaims beneficial ownership with respect to any shares other than the shares owned directly and of record by Ian Jacobs.

⁽⁵⁾  Includes options to purchase 2,500,000 ordinary shares that are currently or will be exercisable within 60 days after June 15 2018, provided that the performance conditions in respect of minimum shareholder return have been met.

⁽⁶⁾  Includes options to purchase 2,750,000 ordinary shares that are currently or will be exercisable within 60 days after June 15, 2018, provided that the performance conditions in respect of minimum shareholder return have been met. Excludes 2,428,154 shares held by his spouse, to which Charles Tasker disclaims beneficial ownership.

⁽⁷⁾  Includes options to purchase 1,600,000 ordinary shares that are currently or will be exercisable within 60 days after June 15, 2018, provided that the performance conditions in respect of minimum shareholder return have been met.

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⁽⁸⁾  Includes options to purchase 500,000 ordinary shares that are currently or will be exercisable within 60 days after June 15, 2018, provided that the performance conditions in respect of minimum shareholder return have been met.

⁽⁹⁾  Includes options to purchase 7,350,000 ordinary shares that are currently or will be exercisable within 60 days after June 15, 2018, provided that the performance conditions in respect of minimum shareholder return have been met.

Please refer to “Item 6B. Compensation”, which sets forth details of the share incentive plan and the outstanding stock-based compensation benefits held by executives at March 31, 2018.

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

7A. MAJOR SHAREHOLDERS

As of June 15, 2018, our issued share capital consisted of 604,586,438 ordinary shares. To our knowledge, (A) we are not directly or indirectly owned or controlled: (i) by another corporation; or (ii) by any foreign government, and (B) there are no arrangements (including any announced or expected takeover bid), the operation of which may at a subsequent date result in a change in our control.

The voting rights of our major shareholders do not differ from the voting rights of other holders of the same class of shares.

The following table sets forth, as of June 15, 2018, certain information regarding the beneficial ownership by all shareholders known to us to own beneficially 5.0% or more of our ordinary shares:

Name of beneficial owner (1)	Total shareholding	% of shares in issue (2)
GAF Trust (3)	70,261,440	11.6	%
Masalini Capital Proprietary Limited (4)	60,410,880	10.0	%
MiX Telematics Investments Proprietary Limited (5)	40,000,000	6.6	%

⁽¹⁾  Shares shown in the table above include shares held in the beneficial owner’s name or jointly with others, or in the name of a bank, nominee or trustee for the beneficial owner’s account.

⁽²⁾  The percentages shown are based on 604,586,438 ordinary shares issued and outstanding as of June 15, 2018.

⁽³⁾  Liane Frew, an immediate family member of Robin Frew, is one of three trustees of the GAF Trust. The other trustees of the GAF Trust are Michael Bloom and David Nathan. Voting and investment power over the ordinary shares held by the GAF Trust is exercised by the majority consent of the trustees.

⁽⁴⁾  Masalini Capital Proprietary Limited is 100% owned by the Masalini Trust (previously known as the Robin Frew Family Trust), of which Robin Frew is one of three trustees and a beneficiary. Voting and investment power over the ordinary shares held by Masalini Capital Proprietary Limited is exercised by majority consent of Robin Frew and the other trustees, Philip Kilroe and Juanita Lou Koster.

⁽⁵⁾  40,000,000 treasury shares are held by MiX Telematics Investments Proprietary Limited, a wholly owned subsidiary of the Group.

As of June 15, 2018, we had 1,613 holders of record of our ordinary shares. This includes nine holders of record in the United States, who held approximately 64.05% of our total issued shares in the form of either ordinary shares or ADSs. The actual number of shareholders is greater than this number of record holders, and includes shareholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees. This number of holders of record also does not include shareholders whose shares may be held in trust by other entities.

Significant Changes in the Ownership of Major Shareholders

Fiscal Year 2018

Share Repurchase Program

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

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13 to our consolidated financial statements for further details about the share repurchase program. At March 31, 2018, 5,015,660 shares were repurchased for an aggregate repurchase consideration of R18.7 million or $1.6 million under the share repurchase program. Subsequent to the repurchase, the shares were delisted and now form part of the authorized unissued share capital of the Company. Refer to “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers” for further information on shares repurchased during the 2018 fiscal year.

Fiscal Year 2017

Specific Repurchase of Shares from Related Party

On April 29, 2016, the Company entered into a share repurchase agreement with Imperial Holdings Limited and Imperial Corporate Services Proprietary Limited, a wholly owned subsidiary of Imperial Holdings Limited, to repurchase all 200,828,260 of the Company’s shares held by Imperial Corporate Services Proprietary Limited at R2.36 ($0.18) per repurchase share, for an aggregate repurchase consideration of R474.0 million or $35.3 million. At the general meeting held on August 1, 2016, shareholders of the Company approved the repurchase in terms of the JSE Listings Requirements and the South African Companies Act, No.71 of 2008, at which point the transaction was accounted for in terms of IFRS. Subsequent to the repurchase, the shares were delisted and now form part of the authorized unissued share capital of the Company.

Fiscal Year 2016

On September 11, 2015, the MiX Telematics Board approved a share repurchase program under which 40,000,000 shares were repurchased at a total cost of R123.8 million (at an average price of R3.09 per share).

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7B. RELATED PARTY TRANSACTIONS

The following is a description of the material transactions we entered into with related parties since the beginning of fiscal year 2018. We believe that we have executed all of our transactions with related parties on terms no less favorable to us than those we could have obtained from unaffiliated third parties.

TPF Investments Proprietary Limited (formerly Thynk Property Fund Proprietary Limited)

In November 2007, we entered into a lease agreement with TPF Investments Proprietary Limited (“TPF Investments”) for our Midrand, South Africa, office. Robin Frew, a non-executive director, is a director on the board of TPF Investments. The GAF Trust, of which an immediate family member of Robin Frew’s is a trustee, owns all the equity interests in TPF Investments. From April 1, 2018, through May 31, 2018, and for fiscal year 2018, we paid TPF Investments R1.2 million ($0.1 million) and R8.3 million ($0.7 million), respectively.

7C. INTERESTS OF EXPERTS AND COUNSEL

Not applicable.

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ITEM 8. FINANCIAL INFORMATION

8A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

The consolidated financial statements are attached hereto within “Item 19. Exhibits”.

Legal proceedings

Refer to “Item 4B. Business overview” for information regarding our legal proceedings.

Dividend policy

Following the completion of our initial public offering of ADSs in fiscal year 2014, we discontinued our policy of declaring regular dividends in order to increase the funds available to pursue opportunities for more rapid growth.

During fiscal year 2016, the board of directors reintroduced the Company’s policy of paying regular dividends. Dividend payments are currently considered on a quarter-by-quarter basis.

8B. SIGNIFICANT CHANGES

See note 35 in the notes to the consolidated financial statements attached to this Annual Report in “Item 19. Exhibits” for discussion of subsequent events.

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ITEM 9. THE OFFER AND LISTING

9A. OFFER AND LISTING DETAILS

Our ordinary shares are traded on the JSE under the symbol “MIX” and our ADSs are traded on the NYSE under the symbol “MIXT”. The tables below show the high and low closing prices in South African Rand for our ordinary shares on the JSE and the high and low closing prices in U.S. Dollar for our ADSs on the NYSE for the periods indicated:

	JSE (“MIX”)		Average daily trading volume (1)
	High	Low
	(R)		(in shares)
Fiscal year ended March 31,
2018	7.51	2.92	385,715
2017	4.25	2.25	456,282
2016	3.90	2.10	250,250
2015	4.75	2.67	310,704
2014	6.50	3.10	323,455
Fiscal quarter ended
March 31, 2018	7.51	5.49	189,578
December 31, 2017	6.59	5.10	568,460
September 30, 2017	5.45	4.00	347,568
June 30, 2017	4.15	2.92	436,560
March 31, 2017	4.25	3.23	391,882
December 31, 2016	3.70	3.10	139,680
September 30, 2016	3.52	2.60	821,816
June 30, 2016	3.10	2.25	460,997
Month
June 2018 (through June 15, 2018)	10.35	9.66	361,020
May 2018	9.99	8.44	545,512
April 2018	8.44	7.29	420,627
March 2018	7.51	6.00	415,380
February 2018	6.67	5.68	94,632
January 2018	6.60	5.49	70,618
December 2017	6.59	6.00	459,709

Source: JSE

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	NYSE (“MIXT”)		Average daily trading volume (1)
	High	Low
	($)		(in ADSs)
Fiscal year ended March 31,
2018	16.03	5.72	73,411
2017	8.02	3.79	46,321
2016	8.13	3.40	36,616
2015	11.70	5.49	39,273
2014 (from August 9, 2013)	18.12	10.29	100,382
Fiscal quarter ended
March 31, 2018	16.03	11.46	91,921
December 31, 2017	12.95	9.69	62,227
September 30, 2017	9.94	7.66	80,230
June 30, 2017	8.25	5.72	59,852
March 31, 2017	8.02	6.30	98,913
December 31, 2016	6.74	5.74	27,948
September 30, 2016	6.39	4.52	28,833
June 30, 2016	5.18	3.79	30,946
Month
June 2018 (through June 15, 2018)	20.08	17.65	174,091
May 2018	20.69	16.77	146,636
April 2018	16.90	15.43	87,281
March 2018	16.03	13.38	149,676
February 2018	14.00	12.68	78,868
January 2018	12.74	11.46	45,976
December 2017	12.95	11.11	58,620

Source: NYSE

⁽¹⁾  Calculated based on the total volume traded over the number of trading days during the respective period.

On June 15, 2018, the closing price of our ordinary shares on the JSE was R10.35 per ordinary share and the closing price of our ADSs on the NYSE was $19.02.

9B. PLAN OF DISTRIBUTION

Not applicable.

9C. MARKETS

The principal market for the ordinary shares of MiX Telematics Limited is the JSE and are traded under the symbol “MIX.” The Company’s ADSs are listed on the NYSE and are traded under the symbol “MIXT.” BNYM serves as depositary with respect to the ADSs.

9D. SELLING SHAREHOLDERS

Not applicable.

9E. DILUTION

Not applicable.

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9F. EXPENSES OF THE ISSUE

Not applicable.

ITEM 10. ADDITIONAL INFORMATION

10A. SHARE CAPITAL

Not applicable.

10B. MEMORANDUM AND ARTICLES OF ASSOCIATION

Information regarding MiX Telematics Limited’s Memorandum of Incorporation, as amended, is hereby incorporated by reference to our annual report on Form 20-F as filed with the Securities and Exchange Commission on July 30, 2014 (File No. 001-36027).

10C. MATERIAL CONTRACTS

The following sets forth a summary of our material contracts other than those entered into in the ordinary course of business:

Lease Agreement

• Agreement of Lease, dated October 2, 2007, between Thynk Industrial One Proprietary Limited and Matrix Vehicle Tracking Proprietary Limited (now MiX Telematics Africa Proprietary Limited) and the addendums thereto, the last of which took effect on April 1, 2017 (Exhibit numbers 4.3 and 4.15)

Refer to “Item 7B. Related Party Transactions –TPF Investments Proprietary Limited (formerly Thynk Property Fund Proprietary Limited, formerly Thynk Industrial One Proprietary Limited)” for a summary of this agreement.

Employment Contracts

• Updated Terms and Conditions of Employment of Stefan Joselowitz, dated November 18, 2008 (Exhibit number 4.4)

• Offer of Employment and Standard Terms and Conditions, dated December 7, 2009, between the Company and Megan Pydigadu (Exhibit number 4.5)

• Standard Terms and Conditions of Employment, dated January 1, 2012, between the Company and Brendan Patrick Horan (Exhibit number 4.6)

• Restraint of Trade, dated January 1, 2012, between the Company and Brendan Patrick Horan (Exhibit number 4.7)

• Standard Terms and Conditions of Employment, effective October 1, 2016, between the Company and Gert Pretorius (Exhibit number 4.8)

• Restraint of Trade, dated January 1, 2012, between the Company and Gert Pretorius (Exhibit number 4.9)

• Standard Terms and Conditions of Employment, dated December 1, 2013, between the Company and Catherine Lewis (Exhibit number 4.14)

• Executive Employment Agreement entered into between the Company and Paul Dell, dated February 22, 2017 (Exhibit number 4.17)

• Restraint of Trade entered into between the Company and Paul Dell, dated February 22, 2017 (Exhibit number 4.18)

• Updated Terms and Conditions of Employment, effective April 1, 2017, between the Company and Charles Tasker (Exhibit number 4.19)

Refer to “Item 6B. Compensation – Compensation of Directors and Executive Officers – Executive Employment Contracts” for a summary of the above agreements.

Banking Facility Letters

• Facility Letter, dated February 25, 2013, between The Standard Bank of South Africa Limited and the Company (Exhibit number 4.10)

Refer to “Item 5B. Liquidity and Capital Resources” for a summary of this agreement.

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• Facility Letter, dated March 25, 2013, between Nedbank Limited and MiX Telematics Africa Proprietary Limited (Exhibit number 4.11)

Refer to “Item 5B. Liquidity and Capital Resources” for a summary of this agreement.

Network Services Agreement

• Provision of Cellular Telephony Network Services Agreement, effective August 1, 2000, between Mobile Telephone Networks Proprietary Limited (“MTN”) and MiX Telematics Africa Proprietary Limited (“MiX Africa”), as amended by an addendum effective July 10, 2012 (Exhibit number 4.12)

On July 10, 2012, MiX Africa, a wholly-owned subsidiary of the Company, entered into an amended agreement for MTN to supply cellular telephony network services to MiX Africa. Under the terms of the agreement, MTN will use its cellular network to transmit data from our customers’ in-vehicle devices to the Company’s data centers to position, track and/or recover vehicles.

Under the terms of the agreement, MTN is entitled to claw back payments from MiX Africa in the event of early cancellation of the agreement or certain base connections not being maintained over the term of the agreement. The maximum potential liability under the arrangement is R43.7 million at March 31, 2018. Portions of this agreement have been granted confidential treatment.

Recovery Services Agreement

• Agreement, effective October 1, 2017, between MiX Telematics Africa Proprietary Limited (“MiX Africa”) and Super Group Trading Proprietary Limited (“Super Group”) (Exhibit number 4.13)

Effective October 1, 2017, MiX Africa entered into an agreement with the Super Group for vehicle recovery services in respect of stolen vehicles fitted with MiX Africa tracking devices. These services are rendered in South Africa.

The agreement stipulates that it will continue indefinitely until terminated by either party in terms of the breach provisions or upon 90 days’ written notice to the other party.

Under the terms of the agreement MiX Africa receives a monthly invoice which consists of a fixed monthly cost. Additional variable charges in respect of actual vehicle recovery services performed by the Super Group are invoiced monthly in arrears. Portions of this agreement have been granted confidential treatment.

Web Services Agreement

• AWS Customer Agreement, effective October 1, 2014, between Amazon Web Services, Inc. (“AWS”) and MiX Telematics International Proprietary Limited (“MiX International”)(Exhibit number 4.20).

On October 1, 2014, MiX International, a wholly-owned subsidiary of the Company, entered into an agreement for AWS to provide managed infrastructure and hosting services to the MiX Group. Under the terms of the agreement, AWS will, inter alia, ultimately host the majority of the MiX Group’s SaaS platform, underlying software and data.

The agreement stipulates that it will continue indefinitely until terminated by either party in accordance with the terms of the agreement. MiX International may terminate the agreement for any reason by providing AWS with notice and closing the account for all services for which AWS provides an account closing mechanism. Under the terms of the agreement, service fees and charges are billed monthly.

10D. EXCHANGE CONTROLS

South African exchange control regulations are administered by the Financial Surveillance Department (“FSD”) of the South African Reserve Bank and are applied throughout the Common Monetary Area (“CMA”) (this CMA includes the Republics of South Africa and Namibia, and the Kingdoms of Lesotho and Swaziland). The FSD regulates transactions involving South African residents, as defined in the Exchange Control Rulings, including natural persons and legal entities.

Day to day interaction with the FSD on exchange control matters is facilitated through Authorized Dealers who are persons authorized by National Treasury to deal in foreign exchange, in so far as transactions in respect of foreign exchange are concerned.

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The South African government has from time to time stated its intention to relax South Africa’s exchange control regulations when economic conditions permit such action. In recent years, the South African government has incrementally relaxed aspects of exchange control.

Applicants who are resident outside the CMA seek advice as to whether any governmental and/or other legal consent is required and/or whether any other formality must be observed to enable an acquisition to be made.

The following summary is intended as a guide and is therefore not comprehensive. If investors are in any doubt regarding South African exchange control regulations, they should consult their professional advisors.

Non-resident holders of securities outside the CMA

A person who is not resident in the CMA, including an emigrant not using emigrant blocked funds, should obtain advice as to whether any governmental and/or other legal consent is required and/or whether any other formality must be observed to enable an acquisition of ADSs.

In the case of a dematerialized share held by a shareholder, all shares issued will be credited directly to the ordinary shareholder’s non-resident share account held by his duly appointed Central Securities Depository Participant (“CSDP”). The CSDP or broker through whom the Company’s shareholders have dematerialized their shares will ensure that they adhere to the South African exchange control regulations.

Applicants resident outside the CMA should note that, where shares are subsequently re-materialized and issued in certificated form, such share certificates will be endorsed “Non-Resident” in terms of the South African exchange control regulations.

Repatriation of IPO proceeds

The South African Reserve Bank (“SARB”) required the net proceeds from the IPO to be maintained in South Africa. We have obtained approval from the FSD to use MiX Telematics Investments Proprietary Limited (“MiX Investments”) as a domestic treasury management company in South Africa. The IPO proceeds have been transferred to and held by MiX Investments. MiX Investments has discretion as to the denomination of the funds but is required to report details of the functional currency used to SARB on an annual basis.

Domestic treasury management company

From an exchange control perspective, MiX Investments enjoys the following benefits:

• Transfers of up to R2 billion per annum from the parent company (MiX Telematics Limited) to MiX Investments will be allowed without prior approval being required from the FSD. These amounts may be freely deployed to fund our foreign operations. Additional amounts will be subject to prior approval from the FSD;

• MiX Investments will be allowed to freely raise and deploy capital offshore, provided these funds are without recourse to South Africa. Additional domestic capital (i.e. in excess of the R2 billion per annum referred to above) and guarantees will be allowed to fund foreign direct investments in accordance with the current foreign direct investment allowance. This allowance is discussed in the foreign investments section;

• MiX Investments will be allowed to operate as our cash management center and cash pooling will be allowed without limitations;

• Local income generated from cash management will be freely transferable; and

• MiX Investments may operate foreign currency accounts as well as South African Rand-denominated accounts.

Foreign financing

We, and our South African subsidiaries (with the exception of MiX Investments which is not subject to foreign financing restrictions), require approval by the FSD to obtain foreign loans. Funds raised outside the CMA by our non-resident subsidiaries, i.e. a non-resident for exchange control purposes, are not restricted under South African exchange control regulations and may be used for any purpose including foreign investment, as long as such use is without recourse to South Africa. We would, however, require approval by the FSD in order to provide guarantees for the obligations of any of our subsidiaries with regard to funds obtained from non-residents of the CMA.

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Debt raised outside the CMA by our non-resident subsidiaries must be repaid or serviced by those foreign subsidiaries. Without approval by the FSD, we can neither use cash we earn in South Africa to repay or service such foreign debts nor can we provide security on behalf of our non-resident subsidiaries.

We may retain dividends declared by our foreign subsidiaries offshore which we may use for any purpose, without any recourse to South Africa. These funds may, subject to certain conditions, also be invested back into the CMA in the form of equity investments or loans.

Under South African exchange control regulations, we must obtain approval from the FSD regarding any capital raising activity involving a currency other than the South African Rand. In granting its approval, the FSD may impose conditions on our use of the proceeds of the capital raising activity outside South Africa, including limits on our ability to retain the proceeds of this capital raising activity outside South Africa or a requirement that we seek further approval by the FSD prior to applying any of these funds to any specific use. Any limitations imposed by the FSD on our use of the proceeds of a capital raising activity could adversely affect our flexibility in financing our investments.

Foreign investments

Under current exchange control regulations we, and our South African subsidiaries (with the exclusion of MiX Investments which has been discussed above), can invest overseas without prior approval by the FSD, where the investment is below R1 billion per calendar year per company provided that the proposed investment meets certain criteria. Although no prior approval by the FSD is required for these investments, prior approval from the relevant Authorized Dealer, who will evaluate the investment on the same principles applied by the FSD, is required. Where the investment does not meet certain criteria, the Authorized Dealer will refer the matter to the FSD for consideration.

Should the foreign direct investment be more than R1 billion per calendar year per company, or where the Authorized Dealer refers the matter to the FSD in the circumstances described above, prior approval by the FSD is required and such foreign investments will only be allowed if the investment meets certain criteria including one of national interest, as determined by the FSD. There is no limitation placed on us with regard to the amount of funds that we can transfer from South Africa for an approved foreign investment. The FSD may, however, request us to stagger the capital outflows relating to large foreign investments in order to limit the impact of such outflows on the South African economy and the foreign exchange market.

Investments in South African Companies

A non-resident investor may invest freely in ordinary shares (including ADSs) in a South African company, provided that such transactions are concluded at arm’s length, at fair market-related prices and are financed in an approved manner. In this regard, such financing must be in the form of the introduction of foreign currency, South African Rand from a non-resident account or in terms of approved local borrowings that comply with exchange control regulations. The creation of any loan account between a resident and a non-resident would require prior exchange control approval.

Acquisitions of shares or assets of South African companies by non-South African purchasers are not generally subject to review by the South African Reserve Bank when the consideration is in cash, but may require the South African Reserve Bank review in certain circumstances, including when the consideration is equity in a non-South African company or when the acquisition is financed by a loan from a South African lender. Any foreign investor may also sell shares in a South African company and transfer the proceeds out of South Africa without restriction, provided that such transactions are concluded at arm’s length and at market-related prices and that the share certificates have been endorsed as “Non-resident”, where the shares have been issued in a certificated form.

Dividends

Dividends declared to non-resident shareholders are not subject to approval by the South African Reserve Bank and are freely transferable to non-resident shareholders by publicly listed companies (provided shares which are issued in a certificated form are endorsed as “Non-resident”). The transfer of funds abroad in respect of the declaration of a dividend in specie or special dividend by a publicly listed company requires prior South African Reserve Bank approval.

Interest

Interest on foreign loans is freely transferable abroad, provided the introduction of the loans received prior South African Reserve Bank approval.

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Voting Rights

There are no limitations imposed by South African law or by our Memorandum of Incorporation on the rights of non-South African shareholders to vote in respect of ordinary shares held.

10E. TAXATION

South African Tax Considerations

The following summary provides relevant tax information in relation to the South African tax landscape and describes the material South African tax consequences of the purchase, ownership and disposal of shares and ADSs. It is not a complete description of all the tax issues and of all possible tax consequences of such purchase, ownership or disposal. This summary is based on the laws as in force and as applied in practice on the date of this annual report and is subject to changes to those laws and practices subsequent to the date of this annual report. Investors should consult their own tax advisors as to the tax consequences of the purchase, ownership and disposal of the ADSs and shares in light of their particular circumstances, including, in particular, the effect of any state, regional, local or other tax laws.

Residence-based System of Taxation

Residents of South Africa are taxed on their worldwide income and capital gains, whereas non-residents are taxed only on income and certain capital gains arising from a South African source. Shares held by a non-resident would generally not be subject to capital gains tax (“CGT”), provided that the shareholder holds less than 20% of the listed shares and that the company is not considered ‘land rich’.

Individuals

An individual will be a resident of South Africa for tax purposes if either of the following applies:

• Such individual is “ordinarily resident” in South Africa. This expression is not defined in the Income Tax Act, No. 58 of 1962, or the “Income Tax Act”, and therefore its meaning is determined according to guidelines established by the courts. Generally, a person’s ordinary residence will be “the country to which he would naturally and as a matter of course return from his wandering; as contrasted with other lands it might be called his usual or principal residence and it would be described more aptly than other countries as his real home”.

• The requirements of the physical presence test are met. If not ordinarily resident in South Africa, an individual is considered a South African resident if the individual is physically present in South Africa for more than 91 days, in aggregate, in the relevant tax year and each of the preceding five tax years, and also for more than 915 days, in aggregate, in the preceding five tax years.

Legal Persons (Company, Close Corporation and Trust)

As regards legal persons (and for these purposes, a trust is deemed to be a person), a resident is defined in the Income Tax Act as any person which is incorporated, established or formed in South Africa or which has its place of effective management in South Africa.

General Proviso Regarding Treaty Resident Persons

The Income Tax Act excludes from the definition of “resident” any person (legal or natural) that is deemed to be exclusively resident in another country in terms of an agreement for the avoidance of double taxation to which South Africa and that other country are parties. Such a treaty exists between the United States and South Africa effective December 28, 1997.

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Dividend Income

Dividends declared by a South African resident company are exempt from income tax in the hands of the South African recipients. A withholding tax, known as dividends tax, is levied at 20% on dividends distributed by a South African resident company to its shareholders, whether those shareholders are South African residents or non-residents, subject to certain exemptions that may be available to the shareholder.

Dividends tax is a final tax withheld by the company declaring the dividend, and applies to any distribution that is made by the company other than a distribution out of contributed tax capital (a defined term which generally means the share capital of a company). The definition of “dividend” is very broad and means any amount transferred or applied by a company for the benefit or on behalf of any person in respect of any share in that company. Because the definition is so broad, and therefore is likely to cover any transaction which represents a distribution of profits to a shareholder, there is only one deemed dividend rule which applies where a company makes a loan at less than a market-related rate of interest to any South African resident connected persons (not a company). There are also other deemed dividends which apply where there are attempts to avoid the tax by means of: dividend swaps; scrip loans; repo arrangements or on certain hybrid debt instruments.    

Where a company repurchases its own shares, the proceeds, to the extent that they are not out of contributed tax capital, are treated as a dividend. The exception to this rule is where a listed company repurchases its own shares on the market (i.e. effectively only off-market deals are treated as potentially giving rise to dividends).

Certain shareholders are exempt from the dividends tax, including South African resident companies, public benefit organizations and other tax-exempt bodies, such as a pension fund. Except where a corporate shareholder forms part of the same group (for tax purposes) as the company declaring a dividend, the aforementioned exemptions are only available if the shareholder has timely submitted to the company (or the regulated intermediary) a prescribed declaration and undertaking confirming its entitlement to the exemption.

A similar declaration and undertaking must be submitted by a non-resident who finds that a lower rate of withholding tax is applicable in terms of any relevant double tax agreement entered into between South Africa and the shareholder’s country of residence.

If dividends tax is withheld in circumstances where it need not have been (e.g. the required declaration and undertaking was not submitted timeously), it is possible for the shareholder to obtain a refund, either from the company or from the regulated intermediary within three years after the payment of the dividend.

It should be noted that certain types of shares could be categorized as either hybrid equity instruments or third-party backed shares (though these usually occur in the case of certain redeemable preference shares), and if they are so classified, the dividends are no longer exempt from income tax (i.e. they remain fully taxable at ordinary income tax rates), and in such case, not being dividends exempt from income tax, they will not be subject to dividends tax.

Disposal of Shares

The disposal of shares will give rise either to a capital or revenue receipt or accrual in the hands of a taxpayer. In determining whether the income derived from the disposal of such shares is of a capital or revenue nature, the South African tax authorities and courts look at, among other things, the intention of the holder of the shares to determine whether the disposal gives rise to a capital or revenue profit. Profits derived from the disposal of South African shares held as long-term investments are generally regarded as profits of a capital nature and are not subject to South African income tax according to standard tax tables, but rather to capital gains tax at a specified lower inclusion rate. The burden of proof of a capital intent is on the taxpayer.

Where, however, the shares have been held for more than three years and such shares qualify as equity shares, the proceeds from the disposal will most likely be deemed to be capital if the provisions of section 9C of the Income Tax Act are met.

If a non-resident shareholder trades (that is, conducts business or speculates) in South African shares, such non-resident shareholder’s disposal of shares will be considered revenue in nature and subject to the higher standard tax rate tables if the proceeds from the disposal are considered to be from a South African source, which would only be the case where the shares are attributable to the non-resident’s permanent establishment in South Africa.

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Capital Gains Tax

Residents of South Africa are subject to CGT in respect of gains made on the disposal of their world-wide assets. Non-residents are generally not liable for CGT on disposals of South African assets, but there are two exceptions to this rule: (a) the gain on the disposal of a direct or indirect interest in immovable property in South Africa; and (b) any gain on disposal of an asset attributable to a permanent establishment which the non-resident has in South Africa.

CGT was introduced into the Income Tax Act with effect from October 1, 2001, by way of the incorporation of the Eighth Schedule thereto. In terms of this Eighth Schedule, all South African tax residents are liable to pay CGT on the gains realized from the disposal of capital assets (including a share held for more than three years, as described above). An asset is widely defined and includes movable and immovable property, corporeal and incorporeal property, and rights or interests in such property, but excludes certain limited currency items.

Natural persons and special trusts enjoy an annual exclusion in respect of capital gains or losses of R40 000. In the year of a person’s death, the annual exclusion is increased to R300 000.

The following table sets out the inclusion rate at which a capital gain would be included in a taxpayer’s taxable income, the normal tax rates applicable to certain taxpayers and, consequently, the effective rate at which capital gains are taxed.

Type of Taxpayer	Inclusion Rate of the Capital Gain to be Included in Taxable Income	Statutory Income Tax Rate	Effective Rate
	(%)	(%)	(%)
Individuals	40.0	0 – 45.0	0 – 18.0
Trusts
Special	40.0	0 – 45.0	0 – 18.0
Other	80.0	45.0	36.0
Life assurers
Individual policyholder fund	40.0	30.0	12.0
Company policyholder fund	80.0	28.0	22.4
Risk policy or Corporate fund	80.0	28.0	22.4
Untaxed policyholder fund	—	—	—
Most companies	80.0	28.0	22.4
Permanent establishments (branches) of non-resident companies	80.0	28.0	22.4
Collective investment schemes	—	—	—

A natural person’s death triggers a deemed sale at market value for CGT purposes. Giving up South African residence by any type of person also triggers such a deemed sale.

As discussed above, non-residents would generally not be liable for CGT in South Africa on disposal of shares in a South African company.

The zero rate as noted with regards to Collective Investment Schemes assumes that all income received by the Collective Investment Scheme during any single year is distributed to the Unit Holder in that same year.

Corporate Tax

For fiscal years 2018, 2017 and 2016 the corporate tax rate is 28% of taxable income.

Securities Transfer Tax

Securities Transfer Tax is levied in respect of any transfer of securities (except where there is no change in beneficial ownership) at the rate of 0.25% of the taxable amount of such securities being the value or consideration given for the securities or (effectively) the market value, whichever is the higher, determined according to the Securities Transfer Tax Act,

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No. 25 of 2007. The company (if the securities are unlisted) or the central securities depositary participant (if the securities are listed) is liable for the Securities Transfer Tax, but it has a right of recovery against the transferee. A security is defined as any share in a company, member’s interest in a close corporation, or right or entitlement to receive any distribution from a company or close corporation.

Estate Duty

Estate duty is levied in terms of the Estate Duty Act No. 45 of 1955 and constitutes a tax which is levied on the dutiable value of the deceased estate at a rate of 20% on the first R30.0 million and at a rate of 25% on dutiable values above R30.0 million. A natural person who is ordinarily resident in South Africa is liable for estate duty on his or her worldwide estate on the date of their death. There are certain exemptions and deductions available. The most important deductions are bequests to a surviving spouse and also bequests to public benefit organizations. Any CGT triggered by death (see above) will also be allowed as a deduction. Thereafter, and after deducting liabilities of the estate, the estate duty will be taxable on any amount in excess of R3.5 million ($0.3 million). To the extent that the first-dying spouse has not availed of the exemption of R3.5 million in full, the unutilized portion may be added to the exemption available to the estate of the surviving spouse on the latter’s death. Non-residents are subject to estate duty on the same basis, but limited to assets located in South Africa.

Value-Added Tax

Value-Added Tax is an indirect tax on the consumption of goods and services in the South African economy, levied in terms of the Value-Added Tax Act No. 89 of 1991, on the consideration of taxable supplies of goods and services, with exports being zero-rated (0%). Financial services (including transfers of shares and debt instruments and the making available of credit) are exempt from value added taxes.

The Value-Added Tax rate has increased from 14% to 15% as of April 1, 2018.

U.S. Federal Income Tax Considerations

The following is a description of the material U.S. federal income tax consequences to the U.S. Holders (described below) of owning and disposing of ordinary shares or ADSs, but it does not purport to be a comprehensive description of all tax considerations that may be relevant to a particular person’s decision to acquire ordinary shares or ADSs. This discussion applies only to a U.S. Holder (as defined below) that owns ordinary shares or ADSs as capital assets for U.S. federal income tax purposes. In addition, it does not describe all of the tax consequences that may be relevant in light of the U.S. Holder’s particular circumstances, including alternative minimum tax consequences and tax consequences applicable to U.S. Holders, subject to special rules, such as, but not limited to:

• certain financial institutions;

• insurance companies;

• dealers or traders in securities who use a mark-to-market method of tax accounting;

• persons holding ordinary shares or ADSs as part of a hedging transaction, straddle, wash sale, conversion transaction or integrated transaction or persons entering into a constructive sale with respect to the ordinary shares or ADSs;

• persons whose functional currency for U.S. federal income tax purposes is not the U.S. Dollar;

• entities classified as partnerships for U.S. federal income tax purposes;

• tax-exempt entities, including “individual retirement accounts” or “Roth IRAs”;

• persons holding ordinary shares or ADSs in connection with a trade or business conducted outside of the United States; or

• persons who own directly, indirectly, or constructively, 10% or more of the total combined voting power of all classes of our ordinary shares and/or ADSs.

If an entity that is classified as a partnership for U.S. federal income tax purposes holds ordinary shares or ADSs, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. Partnerships holding ordinary shares or ADSs, and partners in such partnerships, should consult their tax advisers as to the U.S. federal income tax consequences of acquiring, holding and disposing of the ordinary shares or ADSs. This discussion is based on the Internal Revenue Code of 1986, as amended (the “Code”), administrative pronouncements, judicial decisions, final, temporary and proposed Treasury regulations and the Convention Between the Republic of South Africa

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and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital Gains (the “Treaty”), all as of the date hereof, any of which is subject to change, possibly with retroactive effect. It is also based in part on the provisions of the deposit agreement entered into with the depositary and assumes that each obligation under the deposit agreement and any related agreement will be performed in accordance with its terms.

A “U.S. Holder” is a person who is a beneficial owner of ordinary shares or ADSs that is, for U.S. federal income tax purposes:

•an individual citizen or resident of the United States;

• a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia;

• a trust if (1) a court within the United States is able to exercise primary supervision for the administration of the trust, and one or more United States persons have the authority to control all substantial decisions of the trust; or (2) the trust has validly elected under applicable Treasury regulations to be treated as a United States person; or

• an estate the income of which is subject to U.S. federal income taxation regardless of its source.

In general, a U.S. Holder who owns ADSs will be treated as the owner of the underlying ordinary shares represented by those ADSs for U.S. federal income tax purposes. Accordingly, no gain or loss will be recognized if a U.S. Holder exchanges ADSs for the underlying ordinary shares represented by those ADSs.

The United States Treasury has expressed concerns that parties to whom ADSs are released before the underlying shares are delivered to the depositary, or intermediaries in the chain of ownership between holders of ADSs and the issuer of the security underlying the ADSs, may be taking actions that are inconsistent with the claiming of foreign tax credits by holders of ADSs. These actions would also be inconsistent with the claiming of the reduced rate of tax, described below, applicable to dividends received by certain non-corporate holders. Accordingly, the creditability of South African taxes, if any, and the availability of the reduced tax rate for dividends received by certain non-corporate U.S. Holders (each of which is described below) could be affected by actions taken by such parties or intermediaries.

U.S. Holders should consult their own tax advisers concerning the U.S. federal, state, local and foreign tax consequences of acquiring, owning and disposing of ordinary shares or ADSs in their particular circumstances.

Taxation of Distributions

Subject to the PFIC rules, described below (i.e., if we are not a PFIC during a U.S. Holder’s holding period or we cease to be a PFIC and a “purging election” is made, as discussed below), distributions paid on our ordinary shares or ADSs (including amounts withheld to reflect South African withholding taxes), other than certain pro rata distributions of ordinary shares, will be treated as dividends to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). To the extent that the amount of any distribution exceeds our current and accumulated earnings and profits for a taxable year, as determined under U.S. federal income tax principles, the distribution will first be treated as a tax-free return of capital, causing a reduction in the adjusted basis of the ADSs or ordinary shares (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by a U.S. Holder on a subsequent disposition of the ADSs or ordinary shares), and the balance in excess of adjusted basis will be taxed as capital gain recognized on a sale or exchange. Consequently, such distributions in excess of our current and accumulated earnings and profits would generally not give rise to foreign source income and you would generally not be able to use the foreign tax credit arising from any withholding tax imposed on such distributions unless such credit can be applied (subject to applicable limitations) against U.S. federal income tax due on other foreign source income in the appropriate category for foreign tax credit purposes. However, because we do not maintain calculations of earnings and profits under U.S. federal income tax principles, it is expected that distributions generally will be reported to U.S. Holders as dividends. Dividends will be treated as foreign-source dividend income to U.S. Holders and will not be eligible for the dividends received deduction generally available to United States corporations under the Code. Dividends will be included in a U.S. Holder’s income on the date of the U.S. Holder’s receipt, or in the case of ADSs, the depositary’s receipt, of the dividend. In addition, certain U.S. Holders, including individuals, estates and trusts, are subject to an additional 3.8% Medicare tax on unearned income. For individual U.S. Holders, the additional Medicare tax applies to the lesser of (i) “net investment income” or (ii) the excess of “modified adjusted gross income” over $200,000 ($250,000 if married and filing jointly or $125,000 if married and filing separately). “Net investment income” generally equals the taxpayer’s gross investment income reduced by the deductions that are allocable to such income. Investment income generally includes passive income such as interest, dividends, annuities, royalties, rents

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and capital gains. U.S. Holders are urged to consult their own tax advisers regarding the implications of the additional Medicare tax resulting from an investment in the ADSs.

Subject to applicable limitations (including a minimum holding period requirement), the PFIC rules, described below, and the discussion above regarding concerns expressed by the U.S. Treasury, dividends paid by qualified foreign corporations to certain non-corporate U.S. Holders may be taxable at rates lower than the rates applicable to ordinary income. Under these rules, a foreign corporation is treated as a qualified foreign corporation with respect to dividends paid on stock (or ADSs backed by stock) that is readily tradable on an established securities market in the United States, such as the NYSE, where the ADSs are listed. However, there can be no assurance that the ADSs will be considered readily tradable on an established securities market in later years. A qualified foreign corporation also includes a foreign corporation that is eligible for the benefits of certain income tax treaties with the United States. It is unclear whether we are eligible for the benefits of the Treaty because eligibility for each year is dependent on the trading volume of our ordinary shares and ADSs for such year. If we are eligible for such benefits, dividends we pay on our ordinary shares or ADSs will generally be eligible for the reduced tax rates regardless of whether such shares or ADSs are readily tradable on an established securities market in the United States. U.S. Holders should consult their tax advisers to determine whether a preferential rate will apply to dividends they receive in respect of our ordinary shares or ADSs and whether they are subject to any special rules that limit their ability to be taxed at this favorable rate. The amount of any dividend paid in South African Rand will equal the U.S. Dollar value of the South African Rand received, calculated by reference to the exchange rate in effect on the date the dividend is received by the U.S. Holder, in the case of ordinary shares, or by the depositary, in the case of ADSs, regardless of whether the South African Rand are converted into U.S. Dollars. If the South African Rand received as a dividend are converted into U.S. Dollars on the date they are received, a U.S. Holder generally will not be required to recognize foreign currency gain or loss in respect of the dividend income. If the South African Rand received as a dividend are not converted into U.S. Dollars on the date of receipt (by the U.S. Holder or the depositary, respectively), the U.S. Holder will have a basis in the South African Rand equal to their U.S. Dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the South African Rand will be treated as United States-source ordinary income or loss.

As described above, dividends paid with respect to our ordinary shares or ADSs are generally subject to South African withholding taxes. For U.S. federal income tax purposes, the amount of a dividend would include any amounts withheld by us in respect of South African taxes. Subject to applicable limitations, the PFIC rules, described below, and in the case of ADSs subject to the discussion above regarding concerns expressed by the United States Treasury, any South African income taxes withheld from dividends at a rate not exceeding any applicable Treaty rate would be creditable against the U.S. Holder’s U.S. federal income tax liability. For purposes of calculating the foreign tax credit, dividends paid on our ordinary shares or ADSs will generally constitute foreign source income and will generally constitute passive category income. Instead of claiming a credit, a U.S. Holder may, at the U.S. Holder’s election, deduct such creditable South African taxes, if any, in computing taxable income. An election to deduct foreign taxes instead of claiming foreign tax credits applies to all taxes paid or accrued in the taxable year to foreign countries and possessions of the United States. Special rules limiting foreign tax credits apply to non-corporate U.S. Holders who receive dividends eligible for the reduced rates discussed above, and to U.S. Holders of equity in a PFIC. Furthermore, in certain circumstances, a U.S. Holder will not be allowed a foreign tax credit for any foreign taxes imposed on dividends if such U.S. Holder has held its ordinary shares or ADSs for less than a specified minimum period during which it is not protected from risk or loss, or if such U.S. Holder is obligated to make payments related to the dividends. The rules governing foreign tax credits are complex, and U.S. Holders should consult their tax advisers regarding the creditability or deductibility of foreign taxes and their eligibility for benefits under the Treaty in their particular circumstances.

Sale or Other Disposition of Ordinary Shares or ADSs

Subject to the PFIC rules described below, for U.S. federal income tax purposes, gain or loss realized on the sale or other disposition of ordinary shares or ADSs will be capital gain or loss, and will be long-term capital gain or loss if the U.S. Holder held the ordinary shares or ADSs for more than one year. The amount of the gain or loss will be equal to the difference between the U.S. Holder’s tax basis in the relevant ordinary shares or ADSs and the amount realized on the disposition, each as determined in U.S. Dollars. This gain or loss will generally be United States-source gain or loss for foreign tax credit purposes. Consequently, a U.S. Holder may not be able to use the foreign tax credit arising from any South African tax imposed on the disposition of the ordinary shares or ADSs unless such credit can be applied (subject to applicable limitations) against tax due on other income treated as derived from foreign sources. The deductibility of capital losses is subject to limitations. Long-term capital gains earned by non-corporate U.S. Holders may be taxable at rates lower than the rates applicable to ordinary income and, with respect to individuals with modified adjusted gross income above certain thresholds, an additional Medicare tax will apply to certain types of income, including long-term and short-term capital gains arising from the sale of stock, as described above.

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PFIC Rules

Based on the market price of the ADSs and ordinary shares, the value of our assets, and the composition of our income and assets, although not free from doubt, we do not believe that we were a PFIC for U.S. federal income tax purposes for our taxable year ended March 31, 2018. The application of the PFIC rules is subject to uncertainty in several respects, and we cannot assure you that the United States Internal Revenue Service, or the “IRS”, will not assert that we are a PFIC. A non-United States corporation will be a PFIC for U.S. federal income tax purposes for any taxable year if either:

• at least 75% of its gross income for such year is passive income; or

• at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable to assets that produce passive income or are held for the production of passive income.

For this purpose, we will be treated as owning our proportionate share of the assets and earning our proportionate share of the income of any other corporation in which we own, directly or indirectly, at least 25% (by value) of the stock.

We must make a separate determination after the close of each taxable year as to whether we were a PFIC for that year. Because the value of our assets (including goodwill and unbooked intangibles) for purposes of the PFIC test will generally be determined by reference to the market price of the ADSs and ordinary shares, fluctuations in the market price of the ADSs and ordinary shares may cause us to become a PFIC. In addition, changes in the composition of our income or assets may cause us to become a PFIC.

If we are a PFIC for any taxable year during which a U.S. Holder holds ADSs or ordinary shares, we generally will continue to be treated as a PFIC with respect to such U.S. Holder for all succeeding years during which the U.S. Holder holds the ADSs or ordinary shares, unless we cease to be a PFIC and the U.S. Holder makes a “deemed sale” election with respect to the ADSs or ordinary shares, as applicable. If such election is made, the U.S. Holder will be deemed to have sold the ADSs or ordinary shares such U.S. Holder holds at their fair market value and any gain from such deemed sale would be subject to the rules described below. After the deemed sale election, the U.S. Holder’s ADSs or ordinary shares with respect to which the deemed sale election was made will not be treated as shares in a PFIC unless we subsequently become a PFIC.

For each taxable year that we are treated as a PFIC with respect to a U.S. Holder, such U.S. Holder will be subject to special tax rules with respect to any “excess distribution” the U.S. Holder receives and any gain such U.S. Holder recognizes from a sale or other disposition (including a pledge) of the ADSs or ordinary shares, unless such U.S. Holder makes a “mark-to-market” election as discussed below. Distributions the U.S. Holder receives in a taxable year that are greater than 125% of the average annual distributions such U.S. Holder received during the shorter of the three preceding taxable years or such U.S. Holder’s holding period for the ADSs or ordinary shares will be treated as an excess distribution.

Under these special tax rules:

• the excess distribution or recognized gain will be allocated ratably over the U.S. Holder’s holding period for the ADSs or ordinary shares;

• the amount allocated to the current taxable year, and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in which we were a PFIC, will be treated as ordinary income; and

• the amount allocated to each other taxable year will be subject to the highest tax rate in effect for individuals or corporations, as applicable, for each such year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year.

The tax liability for amounts allocated to taxable years prior to the year of disposition or excess distribution cannot be offset by any net operating losses for such years, and gains (but not losses) from a sale or other disposition of the ADSs or ordinary shares cannot be treated as capital, even if the U.S. Holder holds the ADSs or ordinary shares as capital assets.

If we are treated as a PFIC with respect to a U.S. Holder for any taxable year, to the extent any of our subsidiaries are also PFICs or we make direct or indirect equity investments in other entities that are PFICs, such U.S. Holder may be deemed to own shares in such lower-tier PFICs that are directly or indirectly owned by us in that proportion which the value of the ADSs or ordinary shares such U.S. Holder owns bears to the value of all of the ADSs and ordinary shares, and such U.S. Holder may be subject to the rules described in the preceding two paragraphs with respect to the shares of such lower-tier PFICs that such U.S. Holder would be deemed to own. Potential investors should consult their tax advisers

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regarding the application of the PFIC rules to any of our subsidiaries.

If we are a PFIC and if the ordinary shares or ADSs are “regularly traded” on a “qualified exchange”, a U.S. Holder could make a mark-to-market election with respect to its ordinary shares or ADSs, as applicable, that would result in tax treatment different from the general tax treatment for PFICs described above. The ordinary shares or ADSs would be treated as “regularly traded” in any calendar year in which more than a de minimis quantity of the ordinary shares or ADSs, as the case may be, were traded on a qualified exchange on at least 15 days during each calendar quarter. The NYSE, where the ADSs have been authorized to be listed, is a qualified exchange for this purpose. Further, our ordinary shares are listed on the JSE. Such exchange will be treated as a “qualified exchange” if: (a) it is regulated or supervised by a governmental authority in its country, (b) the exchange is subject to requirements (which requirements are actually enforced) designed to prevent fraud, remove impediments to a free and open market, and protect investors, and (c) the rules of the exchange promote active trading of listed stocks. In addition, no assurance can be given that the ordinary shares or ADSs will be “regularly traded” on their respective exchanges for purposes of the mark-to-market election. U.S. Holders will not be able to make a mark-to-market election with respect to any lower-tier PFICs (discussed above).

A U.S. Holder generally makes a mark-to-market election by attaching a completed IRS Form 8621 to a timely filed U.S. federal income tax return for the tax year to which the election first relates. The mark-to-market election cannot be made unless a U.S. Holder owns ordinary shares or ADSs on the last day of the U.S. Holder’s taxable year during which we are a PFIC. A timely mark-to-market election will apply to the tax year for which such election is made and to all subsequent tax years, unless the ordinary shares or ADSs, as the case may be, are no longer “regularly traded” on a “qualified exchange” or the IRS consents to revocation of such election.

If the mark-to-market election is available, and a U.S. Holder makes such election, the U.S. Holder generally will recognize as ordinary income any excess of the fair market value of the ordinary shares or ADSs at the end of each taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of any excess of the adjusted tax basis of the ordinary shares or ADSs over their fair market value at the end of the taxable year (but only to the extent of the net amount of income previously included as a result of the mark-to-market election). If a U.S. Holder makes the election, the holder’s tax basis in the ordinary shares or ADSs will be adjusted to reflect these income or loss amounts. In addition, if a U.S. Holder makes the mark-to-market election, any gain that the U.S. Holder recognizes on the sale or other disposition of ordinary shares or ADSs in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election).

U.S. Holders of ordinary shares or ADSs should consult their own advisers about the availability and advisability of the mark-to-market election.

Alternatively, a U.S. Holder of stock of a PFIC may make a “qualified electing fund” election with respect to such corporation to elect out of the PFIC rules described above regarding excess distributions and recognized gains. A U.S. Holder that makes a qualified electing fund election with respect to a PFIC will generally include in income for a taxable year such holder’s pro rata share of the corporation’s income for the taxable year. However, you may make a qualified electing fund election with respect to your ADSs or ordinary shares only if we agree to furnish you annually with certain tax information, and we currently do not intend to prepare or provide such information.

United States shareholders of PFICs are required to file certain information with United States taxing authorities relating to their PFIC investments for years in which they receive distributions from the PFIC, recognized gain on a disposition of the PFIC stock, or make certain elections. If we are classified as a PFIC, a U.S. Holder should consult such U.S. Holder’s tax advisers regarding any reporting requirements that may apply.

The PFIC rules are complex, and each U.S. Holder should consult its own tax adviser regarding the PFIC rules and how the PFIC rules may affect the U.S. federal income tax consequences of the acquisition, ownership, and disposition of ordinary shares or ADSs.

Information Reporting and Backup Withholding

Payments of dividends with respect to our ordinary shares or ADSs and proceeds from the sale, exchange or redemption of our ordinary shares or ADSs that are made within the United States or through certain United States-related financial intermediaries generally are subject to information reporting, and may be subject to backup withholding, unless (1) the U.S. Holder is an exempt recipient, or (2) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. U.S. Holders that are required to

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establish their exempt status generally must provide such certification on IRS Form W-9, Request for Taxpayer Identification Number and Certification.

Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit against the U.S. Holder’s U.S. federal income tax liability, if any, and may entitle it to a refund, provided that the required information is timely furnished to the IRS.

Certain U.S. Holders are also required to file IRS Form 926, Return by U.S. Transferor of Property to a Foreign Corporation, and certain U.S. Holders may be required to file IRS Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, reporting transfers of cash or other property to us and information relating to the U.S. Holder and us.

Substantial penalties may be imposed upon a U.S. Holder that fails to comply. Each U.S. Holder should consult its own tax adviser regarding these requirements.

Additionally, a U.S. Holder holding our ordinary shares should consider their possible obligation to file FinCEN Report 114-Report of Foreign Bank and Financial Accounts, with respect to the ordinary shares.

Furthermore, certain U.S. Holders of “specified foreign financial assets” with an aggregate value in excess of $50,000 (and in some circumstances, a higher threshold) may be required to file IRS Form 8938, Statement of Specified Foreign Financial Assets, with respect to such assets with their tax returns. “Specified foreign financial assets” generally include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued by non-United States persons, which may include the ADSs or ordinary shares, (ii) financial instruments and contracts held for investment that have non-United States issuers or counterparties and, (iii) interests in foreign entities. The IRS has issued guidance exempting “specified foreign financial assets” held in a financial account from reporting under this provision (although the financial account itself, if maintained by a foreign financial institution, may remain subject to this reporting requirement). U.S. Holders are urged to consult their tax advisers regarding the application of this legislation to their ownership of the ADSs or ordinary shares.

10F. DIVIDENDS AND PAYING AGENTS

Not applicable.

10G. STATEMENTS BY EXPERTS

Not applicable.

10H. DOCUMENTS ON DISPLAY

We are subject to the reporting requirements of the Exchange Act applicable to foreign private issuers. Because we are a FPI, the SEC’s rules do not require us to file quarterly reports on Form 10-Q, among other things. We do produce quarterly financial reports and furnish them to the SEC on a 6-K form not later than two months after the end of each of the first three quarters of our fiscal year and file our annual report on Form 20-F no later than 4 months after the end of our fiscal year.

You may inspect and copy reports and other information filed by us with the SEC at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the SEC’s Public Reference Room by calling the SEC in the United States at 1-800-SEC-0330. In addition, the SEC maintains an Internet website at http://www.sec.gov, from which you can electronically access our filings. In addition, all the statutory records of the Company and its subsidiaries may be viewed at our registered address in South Africa.

We will continue to send the depositary a copy of all notices that we give relating to meetings of our shareholders or to distributions to shareholders or the offering of rights and a copy of any other report or communication that we make generally available to our shareholders. The depositary will make all these notices, reports and communications that it receives from us available for inspection by registered holders of ADSs at its office. The depositary will mail copies of those notices, reports and communications to you if we ask the depositary to do so and furnish sufficient copies of materials for that purpose.

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10I. SUBSIDIARY INFORMATION

Not applicable.

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ITEM 11. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

We face exposure to the risk of adverse movements in foreign currency exchange rates and changes in interest rates. Portions of our revenues, expenses, assets and liabilities are denominated in currencies other than the South African Rand, primarily the U.S. Dollar, the Australian Dollar, the Euro, the British Pound and the Brazilian Real. These exposures may change over time as business practices evolve.

In addition to the disclosures below, notes 3.1(a) and 36 of the consolidated financial statements (which can be found on “Item 19. Exhibits”) also contain disclosure of our exposures to market risk.

Foreign Currency Exchange Risk

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or date of re-measurements where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Foreign currency transaction exposure has historically resulted primarily from intercompany transactions and customer and vendor transactions denominated in currencies other than the functional currency of the legal entity entering into the transaction. Foreign exchange gains and losses arising from exchange rate movements, which can be volatile, are recorded in the income statement. This remains our primary source of exchange rate exposure risk.

Currently, our significant foreign currency exposures are those with respect to the U.S. Dollar, the Australian Dollar, the Euro, the British Pound and the Brazilian Real. An unfavorable exchange rate movement with respect to any of these currencies against the South African Rand would expose us to losses. For fiscal year 2018, based on our financial position at March 31, 2018, we estimated that a 5% strengthening in the functional versus the denominated currency would have resulted in a decline of R2.4 million in pre-tax income. For purposes of this sensitivity analysis, we assume that all currencies move in the same direction at the same time. Of the R2.4 million decline in pre-tax income, R0.8 million relates to foreign exchange exposure arising from South African Rand and U.S. Dollar exchange rate movements. Foreign currency translation exposure also results from the translation of the financial statements of our subsidiaries, whose functional currency is not the South African Rand, into the South African Rand for consolidated reporting purposes. Assets and liabilities of these subsidiaries are translated into South African Rand using period-end exchange rates and their income statements are translated into South African Rand using the weighted average exchange rate over the period. We record resulting currency translation adjustments in the consolidated statement of comprehensive income and as part of reserves on the consolidated statement of financial position. We recorded exchange differences on translating foreign operations of R60.3 million in the statement of comprehensive income for fiscal year 2018.

For fiscal year 2018, approximately 47.9% of our revenues were denominated in a currency other than the South African Rand, and 39.3% of our operating expenses were generated by subsidiaries whose functional currency is not the South African Rand and, therefore, are subject to foreign currency translation exposure. We have experienced and expect to experience fluctuations in our net profit as a result of revaluing monetary assets and liabilities that are not denominated in the functional currency of the entity that recorded the asset or liability. We do not hedge our foreign currency translation risk and we also have not hedged the exposure from the U.S. Dollar cash reserves held in MiX Investments. Currently, we have a policy in place to hedge the remaining significant transaction risks that take into account foreign currency debits, credits and determines a net on balance sheet position. This net position is then offset by a foreign currency bank account in anticipation of the expenditure or receipt of cash. Our policy is in effect primarily in our South African, European, Middle East and Australasian operations and has not been implemented for our Brazilian operations. We do not plan to implement this policy in our United States operation as all significant trading income and expenses and resulting debits and credits are denominated in U.S. Dollars.

Interest Rate Fluctuation Risk

We are exposed to interest rate risk in respect of our net cash balances that earn interest at variable rates. Amounts outstanding under our credit facilities accrue interest at variable rates linked to the South African prime rate and expose us to interest rate risk. An increase in the interest rate as at March 31, 2018 of 100 basis points for South African Rand denominated instruments would have increased profit or loss before tax by R1.8 million.

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ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

12A. DEBT SECURITIES

Not applicable.

12B. WARRANTS AND RIGHTS

Not applicable.

12C. OTHER SECURITIES

Not applicable.

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12D. AMERICAN DEPOSITARY SHARES

BNYM serves as the depositary for MiX Telematics’ ADSs. MiX Telematics’ ADSs, each representing twenty five MiX Telematics ordinary shares, of no par value, are traded on the New York Stock Exchange under the symbol “MIXT”. The ADSs are evidenced by American Depositary Receipts, or ADRs, issued by BNYM, as Depositary, under the Deposit Agreement (dated as of August 8, 2013) among BNYM, MiX Telematics Limited and its registered ADR holders.

Holders of ADSs or ADRs are required to pay various fees and charges to the depositary which have been detailed in the table below:

Persons depositing or withdrawing shares or ADS holders must pay the following fees:	In respect of the following services:
$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)	Issuance of ADSs, including issuances resulting from a distribution of shares or rights or other property Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
$0.05 (or less) per ADS	Any cash distribution to ADS holders
A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs	Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS holders
$0.05 (or less) per ADSs per calendar year	Depositary services
Registration or transfer fees	Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares
Expenses of the depositary	Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement) Converting foreign currency to U.S. Dollars
Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes	As necessary
Any charges incurred by the depositary or its agents for servicing the deposited securities	As necessary

The depositary collects its fees for delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may collect any of its fees by deduction from any cash distribution payable to ADS holders that are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.

From time to time, the depositary may make payments to us to reimburse and/or share revenue from the fees collected from ADS holders, or waive fees and expenses for services provided, generally relating to costs and expenses arising out of establishment and maintenance of the ADS program. In performing its duties under the deposit agreement, the depositary may use brokers, dealers or other service providers that are affiliates of the depositary and that may earn or share fees or commissions.

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

Not applicable.

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ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

Use of proceeds

The following “Use of Proceeds” information relates to our registration statement on Form F-1 (File No. 333-189799) filed with the SEC for our IPO of 6,296,098 ADSs (of which 1,896,098 ADSs related to selling shareholders), each representing 25 ordinary shares of the Company, and the underwriters’ exercise of their option to purchase an additional 944,414 ADSs from the selling shareholders, which registration statement was declared effective by the SEC on August 8, 2013.  We did not receive any of the net proceeds from the sale of ADSs by the selling shareholders.

We received proceeds from the IPO of $65.5 million after deducting the underwriting discount but before deducting expenses of the IPO that were payable by us.

As of June 15, 2018, the U.S. Dollar proceeds were used as follows:

	In thousands ($)
Proceeds received from IPO	65,472
Interest received	250
Share issue costs paid from the proceeds	(1,786	)
Loan to MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada (1)	(5,600	)
Loan to MiX Telematics Europe Limited (2)	(1,580	)
Loan to MiX Telematics North America, Inc. (2)	(16,039	)
ADS and share repurchases (3)	(7,817	)
Cash converted to South African Rand to facilitate specific repurchase of shares from related party (4)	(30,647	)
Provisional tax payment on foreign exchange gains arising from South African Rand bank accounts	(1,002	)
Settlement of loan from MiX Telematics Limited	(1,250	)
Bank charges	(1	)
Balance of remaining proceeds held in MiX Investments’ deposit accounts as at June 15, 2018	—

⁽¹⁾  These loans were extended to our subsidiary in Brazil in order to facilitate the planned expansion in the region and to provide financing for in-vehicle devices for bundled deals. The loans are denominated in Brazilian Real.

⁽²⁾  These loans were extended to these subsidiaries to facilitate growth, investments in infrastructure and sales and marketing and to provide financing for in-vehicle devices for bundled deals. The loan extended to MiX Telematics Europe Limited was denominated in British Pound while the loan extended to MiX Telematics North America, Inc. was denominated in U.S. Dollars.

⁽³⁾  See below for further details on the fiscal year 2016 share repurchase program:

During fiscal 2016, the MiX Telematics Board approved a share repurchase program under which the Group could repurchase up to 40,000,000 of its ordinary shares (up to 1,600,000 ADSs) through to March 15, 2016. As of March 31, 2016, 40,000,000 shares had been repurchased at a total cost of R123.8 million (at an average price of R3.09 per share) by MiX Telematics Investments Proprietary Limited, a wholly owned subsidiary of the Group. The following terms were applicable to the share repurchase program:

• The Group could repurchase its shares from time to time in its discretion through open-market transactions and block trades, based on ongoing assessments of the capital needs of the Group, the market price of its securities and general market conditions.

• This share repurchase program could be discontinued at any time by the Board of Directors, and the Group had no obligation to repurchase any amount of its securities under the program.

• The repurchase program was funded out of existing cash resources

As a result of the above share repurchase programme, MiX Investments Proprietary Limited holds 40,000,000 treasury shares consisting of 973,954 ADS's (each ADS representing 25 ordinary shares) and 15,651,115 ordinary shares of the Company.

⁽⁴⁾  See note 13 to our consolidated financial statements for further details on the fiscal year 2017 specific share repurchase agreement from related party.

As of June 15, 2018 approximately $1.7 million of the $23.2 million loan funding advanced to subsidiaries is still available for use.

The principal reasons for our IPO were to increase our capitalization and financial flexibility, increase our visibility in the marketplace and create a public market for our ADSs. We set out to use the net proceeds from the IPO to pursue future

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acquisitions and other strategic investments, to fund fully bundled deals in our regions in the form of capitalized in-vehicle devices and for general corporate purposes. The IPO proceeds were also used to finance the specific repurchase of shares from a related party.

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ITEM 15. CONTROLS AND PROCEDURES

15A. DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Interim Chief Financial Officer, we evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a – 15(e) and 15d – 15(e) under the Exchange Act) as of March 31, 2018. Based on that evaluation, our Chief Executive Officer and Interim Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention of overriding of the controls or the procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their controls objectives.

15B. MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of MiX is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a – 15(f) under the Exchange Act of 1934, as amended. Under section 404 of the Sarbanes-Oxley Act of 2002, management is required to assess the effectiveness of MiX’s internal control over financial reporting as of the end of each financial year and report, based on that assessment, whether the Company’s internal control over financial reporting is effective.

MiX’s internal control over financial reporting is a process designed under the supervision of the Chief Executive Officer and Interim Chief Financial Officer to provide reasonable assurance as to the reliability of MiX’s financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB

.

Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS as issued by the IASB, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management assessed the effectiveness of MiX’s internal control over financial reporting as of March 31, 2018. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) in “Internal Control – Integrated Framework (2013)”. Based on this assessment, our management has determined that, as of March 31, 2018, MiX’s internal control over financial reporting was effective.

15C. ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTANCY FIRM

This annual report does not include an attestation report from our registered public accounting firm. As a qualifying EGC under the JOBS Act, we are currently exempt from having our independent auditors assess our internal control over financial reporting under Section 404(b) of SOX. When we cease to qualify as an EGC, on the last day of fiscal year 2019, we will be required to include an attestation report from our registered public accounting firm.

15D. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

We previously disclosed that in fiscal year 2016, that there was a significant deficiency within our Americas segment that required remediation and, that during fiscal year 2017, certain aspects of the significant deficiency remained outstanding. In fiscal year 2018, we did not identify a significant deficiency in the Americas segment. This was attributed to the cumulative impact of control measures implemented, these included:

• Appointing key finance staff with extensive controls experience;

• Ongoing training of finance staff on control procedures;

• Ongoing testing and review of key controls by the group risk function; and

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• Ongoing oversight from head office finance regarding monitoring controls.

.

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16A. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Directors has determined that Anthony Welton, independent non-executive chairperson of the Audit and Risk Committee, is an “audit committee financial expert” as defined by the rules of the SEC and is independent both under the NYSE Listing Standards and the JSE Listings Requirements. The Board has also determined that the combined knowledge, skills and experience of the Audit and Risk Committee as well as their authority to engage outside experts as they deem appropriate to provide them with advice on matters related to their responsibilities, enable them, as a group and under the guidance of Anthony Welton, to discharge the responsibilities of the Audit and Risk Committee.

16B. CODE OF ETHICS

We have a Code of Ethics and Conduct which applies to all of our directors, officers and employees, and is underpinned by MiX’s philosophy of honesty, integrity, equity, respect and dignity. The Code of Ethics and Conduct has been communicated to employees, suppliers, service providers and is available on our website at http://www.mixtelematics.com/about-us/corporate-governance. This website is not incorporated by reference in this annual report. Any amendment or waiver of the code as it relates to our Chief Executive Officer, Interim Chief Financial Officer, principal accounting officer or controller will be posted on our website within five business days following such amendment or waiver. No such amendments or waivers are anticipated.

We have been successfully operating an ethics reporting telephone line and email address for a number of years. This confidential and anonymous ethics hotline provides an impartial facility for all stakeholders to report deviations from ethical behavior, including fraud and unsafe behavior or environment. These calls and emails are monitored, and the occurrence of relevant reports and progress toward their resolution are reported to the Audit and Risk Committee on a regular basis.

16C. PRINCIPAL ACCOUNTING FEES AND SERVICES

The following table sets forth the aggregate audit and audit-related fees, tax fees and all other fees billed by our principal accountants Deloitte & Touche (previously PricewaterhouseCoopers Inc.) for each of fiscal years 2018 and 2017:

	2018		2018		2017
	(In thousands)
Audit fees (1)		$1,021		R12,076		R8,821
Tax fees (2)	62		730		721
All other fees (3)	14		167		583
Total (4)		$1,097		R12,973		R10,125

⁽¹⁾  In fiscal year 2018, audit fees include R2.2 million in respect of fees paid to PricewaterhouseCoopers Inc. and the balance relates to Deloitte & Touche.

(2) In fiscal year 2018, tax fees includes R0.2 million in respect of fees paid to PricewaterhouseCoopers Inc. and the balance relates to Deloitte & Touche.

(3) In fiscal year 2018, other fees includes R0.1 million in respect of fees paid to PricewaterhouseCoopers Inc. and the balance relates to Deloitte & Touche.

(4) In respect of our Audit and Risk Committee approval process, all of the non-audit and audit fees paid to Deloitte & Touche and PricewaterhouseCoopers Inc. have been pre-approved by the Audit and Risk Committee.

Audit fees consist of fees billed for the annual audit of our consolidated financial statements and the audit of statutory financial statements of our subsidiaries, including fees billed for assurance and related services that are reasonably related to the performance of the audit or reviews of our financial statements that are services that only an external auditor can reasonably provide.

Tax fees include fees billed for tax compliance and consulting services, including assistance in the preparation of original and amended tax returns; tax advice relating to VAT, tax incentives and transfer pricing, and requests for rulings on technical advice from tax or other governmental authorities; assistance in tax audits and consultation and planning services.

All other fees consist of fees billed which are not included under audit fees, audit related fees or tax fees for example, the review of management's assessment of the impact of IFRS 15 ‘Revenue’.

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Audit committee approval policy

In accordance with our non-audit services policy, non-audit services performed for us by our independent accountants were approved by the Audit and Risk Committee, which concluded that the provision of such services by the independent accountants was compatible with the maintenance of that firm’s independence in the conduct of its auditing functions.

In terms of our non-audit services policy, non-audit services less than R100,000 and up to R1,000,000 cumulatively per annum that fall into the permissible non-audit services categories set out in the policy, do not require pre-approval by the Audit and Risk Committee, but are pre-approved by the chairman of the Audit and Risk Committee. All non-audit services exceeding R100,000 and all non-audit services fees after the above R1,000,000 cumulative annual limit is reached, are subject to pre-approval by the Audit and Risk Committee. On a quarterly basis the Audit and Risk Committee review and ratify all non-audit services.

Our non-audit services policy also contains a list of prohibited services which may not be performed by our independent accountants as these services could impair their independence status.

Requests or applications for services that require specific separate approval by the Audit and Risk Committee or its chairman, are required to be submitted by both the Interim Chief Financial Officer and the independent accountants, and must include a detailed description of the services to be provided and a statement by the independent auditors confirming that the provision of the proposed services does not impair their independence.

In accordance with the Audit and Risk Committee charter, the Audit and Risk Committee approves the audit fee payable to the independent accountants.

16D. EXEMPTIONS FROM THE LISTINGS STANDARDS FOR AUDIT COMMITTEES

Not applicable.

16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

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

Period	Total number of shares repurchased	Average price paid per share (1)	Shares canceled under the share repurchase program		Total number of shares purchased as part of publicly announced programs	Maximum number of shares that may yet be purchased under the programs
Month
August 2016	200,828,260	2.36	(200,828,260	)	200,828,260	—
	200,828,260		(200,828,260	)	200,828,260

⁽¹⁾ Including transaction costs.

Please refer to “Item 7A. Major Shareholders” for details on the specific repurchase of shares from a related party.

On May 23, 2017, our Board of Directors approved a share repurchase program of up to R270 million under which we may repurchase our ordinary shares, including those represented by ADSs. We may repurchase our shares or ADSs from time to time at our discretion through open market transactions and block trades, based on ongoing assessments of our capital needs, the market prices of our securities and general market conditions. This share repurchase program may be discontinued at any time by our Board of Directors, and we have no obligation to repurchase any amount of our securities under the program. The repurchase program will be funded out of existing cash resources.

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

Period	Total number of shares repurchased	Average price paid per share (1)	Shares canceled under the share repurchase program	Total value of shares purchased as part of publicly announced program	Maximum value of shares that may yet be purchased under the program
Month
June 2017	5,015,660	3.72	5,015,660	18,666,376	251,333,624
	5,015,660		5,015,660	18,666,376	251,333,624

⁽¹⁾ Including transaction costs.

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

16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

On October 12, 2017, MiX Telematics Limited terminated the appointment of PricewaterhouseCoopers Inc. (“PwC”) as its independent registered public accounting firm and appointed Deloitte and Touche (“Deloitte”) in its stead. The Audit and Risk Committee and the Board of Directors participated in and approved the decision to change MiX Telematics Limited's independent registered public accounting firm. The change in auditors was made following a tender process. Both the commercial terms and expertise of the tender participants were assessed during the tender process.

The reports of PwC on our consolidated financial statements for the fiscal years ended March 31, 2017 and 2016 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, there were no disagreements, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F, with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused PwC to make reference thereto in their reports on our consolidated financial statements for such fiscal years.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, there were no “reportable events” as that term is defined in Item 16F(a)(1)(v) of Form 20-F.

We requested PwC to furnish us with a copy of a letter addressed to the SEC stating whether or not it agrees with the above statements. A copy of such letter, dated July 2, 2018, is filed as Exhibit 99.2 to this Form 20-F.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, neither we nor anyone acting on our behalf consulted with Deloitte concerning (i) the application of accounting principles to a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on our consolidated financial statements and no written or oral advice was provided by Deloitte that was an important factor considered by us in reaching a decision as to any accounting, auditing or financial reporting issue, or (ii) any matter that was either the subject of a disagreement (as that term is used in Item 16F(a)(1)(v) of Form 20-F and the related instructions to Item 16F) or a “reportable event” (as defined in Item 16F(a)(1)(v) of Form 20-F).

16G. CORPORATE GOVERNANCE

We maintain a primary listing of ordinary shares on the exchange operated by the Johannesburg Stock Exchange Limited (“JSE”) and a listing of ADSs on the NYSE. Accordingly, we are subject to the on-going disclosure, corporate governance and other requirements imposed by legislation in both jurisdictions, the JSE, the SEC and the NYSE. We have implemented controls to provide reasonable assurance of our compliance with all relevant requirements in respect of our listings. These include the South African Companies Act, No. 71 of 2008 (“the Companies Act”), the JSE Listings Requirements, the SEC, the NYSE and United States legislation such as SOX, insofar as it applies to foreign companies listed on the NYSE. We also endorse the principles and recommendations of the King Report on Corporate Governance, which sets out the guidelines for the governance structures and operation of companies in South Africa which was compiled when the Institute of Directors in South Africa asked retired Supreme Court of South Africa judge Mervyn E. King to chair a committee, the King Committee on Corporate Governance. Four reports have been issued, in 1994 (King I), 2002 (King

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II), 2009 (King III), and a fourth revision (King IV) in 2016. King IV replaced King III in its entirety. King IV is principle and outcome based instead of rule based, consequently, while King III called on companies to apply or explain, King IV assumes application of all principles, and requires entities to explain how the principles are applied. Compliance with the King Reports is a mandatory requirement for companies listed on the JSE. Unlike the requirements of SOX, the King IV Report is non-legislative and is based on principles and recommended practices. The underpinning philosophies of the King IV Report consist of integrated thinking, seeing the organization as an integral part of society, stakeholder inclusivity and corporate citizenship. It views good corporate governance as the exercise of ethical and effective leadership by the Board towards the achievement of the following governance outcomes: ethical culture, good performance, effective control and legitimacy.

As an FPI with ADSs listed on the NYSE, we are subject to corporate governance requirements imposed by the NYSE. Under section 303A.11 of the NYSE Listing Standards, a FPI, such as us, may follow its home country corporate governance practices in lieu of certain of the NYSE Listing Standards on corporate governance, which we have elected to do. The following is a summary of the significant ways in which our home country corporate governance standards and its corporate governance practices differ from those followed by domestic companies under the NYSE Listing Standards:

• The NYSE Listing Standards require that the non-management directors of United States listed companies meet at regularly scheduled executive sessions without management. Although the JSE Listings Requirements do not require such meetings, the board ordinarily meets without executives on a biannual basis as it is a requirement of King IV.

• The NYSE Listing Standards require United States listed companies to have an audit committee composed of at least three independent directors. An FPI may be exempted from the requirement that all members of the audit committee qualify as independent under the NYSE Listing Standards provided, among other requirements, that the members of the audit committee are independent under Exchange Act Rule 10A-3. All of our Audit and Risk Committee members are independent, both under the NYSE Listing Standards and the JSE Listings Requirements.

• The NYSE Listing Standards require United States listed companies to have a nominating/corporate governance committee composed entirely of independent directors. The NYSE Listing Standards also require United States listed companies to have a compensation committee composed entirely of independent directors. The JSE Listings Requirements require the appointment of a remuneration committee, and stipulate that all members of this committee must be non-executive directors, the majority of whom must be independent. We have a combined Nominations and Remuneration Committee which currently comprises three non-executive directors, all of whom are independent under the NYSE Listings Requirements. One of these directors is not considered independent in terms of the JSE Listings Requirements due to his significant shareholding in the Company.

• Under NYSE Listing Standards, shareholders of United States companies must be given the opportunity to vote for the establishment of and material amendments to equity compensation plans, transactions involving below market price issuances in private placements of more than 20% of outstanding shares, or issuances that result in a change in control, with limited exceptions set forth in the NYSE Listing Standards. The JSE Listings Requirements provides that a share incentive plan and material amendments thereto must be approved by shareholders passing an ordinary resolution (requiring a 75% majority of the votes cast in favor of such a resolution).  The JSE Listings Requirements further specifies the information that must be included in the share incentive plan and includes inter alia provisions relating to who is an eligible participant, the aggregate number of shares that may be utilized for the purposes of the share incentive plan, the maximum number of shares for any one participant, the amount that is payable upon acceptance and conditions for awarding of shares. The JSE Listings Requirements requires any issue of shares for cash (both general or specific) to be approved by shareholders passing an ordinary resolution (requiring a 75% majority of the votes cast in favor of such a resolution) and limits the number of shares that may be issued and the discount at which the shares are issued.

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• Under NYSE Listing Standards, each related party transaction is to be reviewed and evaluated by an appropriate group within the listed company involved. While the NYSE does not specify who should review related party transactions, the NYSE believes that the audit committee or another comparable body might be considered as an appropriate forum for this task. The NYSE Listing Standards state that, following the aforementioned review, the Company should determine whether or not a particular relationship serves the best interest of the Company and its shareholders and whether the relationship should be continued or eliminated. The NYSE’s related party guidance applies to listed companies acquiring their own shares or conducting repurchases through affiliates.  In general, the NYSE Listing Standards are not otherwise implicated with respect to share repurchases. The JSE Listings Requirements allow for the acquisition by a company of its own securities or the acquisition by a subsidiary of securities in its holding company, in accordance with the Companies Act. The JSE Listings Requirements requires any repurchase of shares (both general or specific) to be approved by shareholders passing a special resolution (requiring a 75% majority of the votes cast in favor of such a resolution). The requirements for a repurchase differ depending upon whether the repurchase takes the form of a general authority to repurchase securities, or a specific authority to repurchase securities.

Repurchases under a general authority may only be done without any prior understanding or arrangement between the Company and the seller and may only be effected following the passing by the board of a solvency and liquidity test. No more than 20% of the total share capital of the Company may be repurchased in aggregate in any one financial year (or a total of 10% where the repurchase is effected by a subsidiary) and the maximum premium at which the repurchase may be undertaken is 10% of the weighted average of the market value on the JSE over the five business days immediately preceding the repurchase of such securities.

Repurchases under a specific authority are effected where the offer is made to holders of securities specifically named and may only be effected following the passing by the board of a solvency and liquidity test. Where a specific repurchase of securities is from a related party (being, for example, a shareholder holding more than 10% of the issued share capital of the Company) and the price is at a premium to the 30 day weighted average of the market value on the JSE, a fairness opinion from an independent expert is required to be obtained prior to effecting the repurchase. A related party is also excluded from voting on the special resolution.

16H. MINE SAFETY DISCLOSURE

Not applicable.

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ITEM 17. FINANCIAL STATEMENTS

We are furnishing financial statements pursuant to the instructions of Item 18 of Form 20-F.

ITEM 18. FINANCIAL STATEMENTS

The following consolidated financial statements, together with the auditors' reports of Deloitte & Touche (“Deloitte”) and PricewaterhouseCoopers Inc. (“PwC”), are filed as part of this annual report on Form 20-F:

Index to the Consolidated Financial Statements

	Page
Report of Independent Registered Public Accounting Firm: Deloitte & Touche	123
Report of Independent Registered Public Accounting Firm: PricewaterhouseCoopers Inc.	124
Statement of Financial Position at March 31, 2018 and March 31, 2017	*
Income Statement for the years ended March 31, 2018, March 31, 2017 and March 31, 2016	*
Statement of Comprehensive Income for the years ended March 31, 2018, March 31, 2017 and March 31, 2016	*
Statement of Changes in Equity for the years ended March 31, 2018, March 31, 2017 and March 31, 2016	*
Statement of Cash Flows for the years ended March 31, 2018, March 31, 2017 and March 31, 2016	*
Notes to the Financial Statements	*

* Refer to our consolidated financial statements filed as Exhibit 99.1 which have been incorporated by reference.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of MiX Telematics Limited

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of financial position of MiX Telematics Limited and subsidiaries (the "Company") as of March 31, 2018, the related consolidated statements of income, comprehensive income, changes in equity, and cash flows, for the year ended March, 31 2018, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2018, and the results of its operations and its cash flows for the year ended March 31, 2018, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Deloitte & Touche

Registered Auditor

Johannesburg, South Africa

July 2, 2018

We have served as the Company's auditor since 2017.

National Executive: *LL Bam Chief Executive Officer *TMM Jordan Deputy Chief Executive Officer; Clients & Industries *MJ Jarvis Chief Operating Officer *AF Mackie Audit & Assurance *N Sing Risk Advisory DP Ndlovu Tax & Legal TP Pillay Consulting *JK Mazzocco Talent & Transformation MG Dicks Risk Independence & Legal *Kl Hodson Corporate Finance *TJ Brown Chairman of the Board

A full list of partners and directors is available on request *Partner and Registered Auditor

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of MiX Telematics Limited:

In our opinion, the accompanying consolidated statements of financial position and the related consolidated income statements, statements of comprehensive income, statements of changes in equity and statements of cash flows present fairly, in all material respects, the financial position of MiX Telematics Limited and its subsidiaries at March 31, 2017, and the results of their operations and their cash flows for each of the two years in the period ended March 31, 2017 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers Inc.

Johannesburg, South Africa

July 14, 2017

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ITEM 19. EXHIBITS

Exhibit number	Description
1.1*	Memorandum of Incorporation of the Company as amended
4.1**	Form of Deposit Agreement among the Company, The Bank of New York Mellon, as depositary, and the holders from time to time of American depositary shares issued thereunder, including the form of American depositary receipts
4.2**	TeliMatrix Group Executive Incentive Scheme, adopted by TeliMatrix Limited, dated October 8, 2007, including the Deed of Amendment, dated January 31, 2011, and the Second Deed of Amendment, dated September 13, 2011
4.3**	Agreement of Lease, dated October 2, 2007, between Thynk Industrial One Proprietary Limited and Matrix Vehicle Tracking Proprietary Limited and addendum thereto
4.4**	Updated Terms and Conditions of Employment of Stefan Joselowitz, dated November 18, 2008
4.5**	Offer of Employment and Standard Terms and Conditions, dated December 7, 2009, between the Company and Megan Pydigadu
4.6**	Standard Terms and Conditions of Employment, dated January 1, 2012, between the Company and Brendan Patrick Horan
4.7**	Restraint of Trade, dated January 1, 2012, between the Company and Brendan Patrick Horan
4.8††	Standard Terms and Conditions of Employment, effective October 1, 2016, between the Company and Gert Pretorius
4.9**	Restraint of Trade, dated January 1, 2012, between the Company and Gert Pretorius
4.10**	Facility Letter, dated February 25, 2013, between The Standard Bank of South Africa Limited and the Company
4.11**	Facility Letter, dated March 25, 2013, between Nedbank Limited and MiX Telematics Africa Proprietary Limited
4.12†***	Provision of Cellular Telephony Network Services Agreement, effective August 1, 2000, between Mobile Telephone Networks Proprietary Limited and the Company, as amended by Addendum effective July 10, 2012
4.13†	Agreement, effective October 1, 2017, between MiX Telematics Africa Proprietary Limited and Super Group Trading Proprietary Limited
4.14**	Standard Terms and Conditions of Employment, dated December 1, 2013, between the Company and Catherine Lewis
4.15	Addendum to Agreement of Lease, effective April 1, 2017, between Thynk Property Fund Proprietary Limited and MiX Telematics Africa Proprietary Limited
4.16****	MiX Telematics Limited Long-Term Incentive Plan
4.17††	Executive Employment Agreement, dated February 22, 2017, between the Company and Paul Dell
4.18††	Restraint of Trade Agreement, dated February 22, 2017, between the Company and Paul Dell
4.19††	Updated Terms and Conditions of Employment, effective April 1, 2017, between the Company and Charles Tasker
4.20††	AWS Customer Agreement, effective October 1, 2014, between Amazon Web Services, Inc. (“AWS”) and MiX Telematics International Proprietary Limited (“MiX International”)
8.1	List of subsidiaries of the Company
12.1	Certification of Stefan Joselowitz, Chief Executive Officer of MiX Telematics Limited pursuant of Section 302 of the Sarbanes-Oxley Act of 2002
12.2	Certification of Paul Dell, Interim Chief Financial Officer of MiX Telematics Limited pursuant of Section 302 of the Sarbanes-Oxley Act of 2002
13.1	Certification of Stefan Joselowitz, Chief Executive Officer of MiX Telematics Limited and Paul Dell, Interim Chief Financial Officer of MiX Telematics Limited, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
15.1	Consent of Deloitte & Touche
15.2	Consent of PricewaterhouseCoopers Inc.
99.1	MiX Telematics Limited Consolidated Financial Statements
99.2	PricewaterhouseCoopers Inc.'s Letter to the Securities and Exchange Commission regarding Item 16.F (Change in Registrant's Certifying Accountant), dated July 2, 2018
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document

125

Exhibit number	Description
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*	Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year ended March 31, 2014 filed on July 30, 2014 (File No. 001-36027).
**	Previously filed with the Registration Statement on Form F-1 (Registration No. 333-189799) filed by the Registrant on July 3, 2013.
***	Previously filed with Amendment No. 1 to the Registration Statement filed by the Registrant on July 22, 2013.
****	Previously filed with Registration Statement on Form S-8 (Registration No. 333-199908) filed by the Registrant on November 6, 2014.
†	Portions of this exhibit have been omitted pursuant to a request for confidential treatment.
††	Incorporated by reference to the Registrant’s Annual Report on Form 20-F for the year ended March 31, 2017 filed on July 14, 2017 (File No. 001-36027).

126

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

MiX Telematics Limited

(Registrant)

By: /s/ Paul Dell

Paul Dell

Interim Chief Financial Officer

Date: July 2, 2018

127

EX-4.13

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Agreement

between

MiX Telematics Africa (Pty) Ltd

Registration Number: 2004/019797/07

(“MiX”)

and

Super Group Trading (Proprietary) Limited

T/A RENTRACK

Registration Number: 1995/000920/07

(“the Contractor”)

1.     Introduction

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

1.1 In this Agreement, unless otherwise required or indicated by the context, the singular shall include the plural and vice versa and masculine gender shall include all other genders and vice versa, natural persons shall include legal and juristic persons and vice versa.

1.2 The annexures attached to this Agreement form part hereof and words and expressions defined in this Agreement shall bear, unless the context otherwise indicates, the same meanings in such annexures.

1.3 The headings used in this Agreement shall be deemed not be part of the Agreement and will not be taken into consideration in the interpretation or construction of this Agreement.

1.4 In this Agreement, unless otherwise required or indicated by the context, the following expressions and words shall have the meanings assigned to them hereunder:-

1.4.1 “Agreement” means this Agreement and all annexures hereto;

1.4.2 “Ancillary Services” means those services supplied by agreement between the parties as recorded in annexure E;

1.4.3 “Anti-Bribery Law” means any bribery, fraud, kickback, or other similar anti-corruption law or regulation of South Africa;

1.4.4 “B-BBEE Act” means the Broad-Based Black Economic Empowerment Act, 53 of 2003, as amended from time to time;

1.4.5 “B-BBEE Certification” means a valid and current B-BBEE certificate in the case of a Generic Enterprise and a Level 3 B-BBEE contributor Qualifying Small Enterprise or a certified affidavit for all Exempted Micro Enterprises or Level 1 and Level 2 B-BBEE contributor Qualifying Small Enterprises;

1.4.6 “B-BBEE Codes” means the Department of Trade and Industry’s Revised B-BBEE Codes of Good Practice 2013, issued in terms of the B-BBEE Act;

1.4.7 “B-BBEE Minimum Requirements” means at least the following level, depending on the turnover of the Supplier, as per the B-BBEE Codes;

1.4.7.1 Level 3 B-BBEE contributor for a Generic Enterprise (turnover of R50 million and above);

1.4.7.2 Level 3 B-BBEE contributor for a Qualifying Small Enterprise (turnover of between R10 million and R50 million); and

1.4.7.3 Level 2 B-BBEE contributor for an Exempted Micro Enterprise (turnover of less than R10 million)

1.4.8 “business day” means any day which is not a Saturday, Sunday or public holiday in the Republic of South Africa;

1.4.9 “Customer” shall mean any party who has an agreement with MiX for the supply of tracking and/or recovery services;

1.4.10 “Equipment” shall mean the direction finding antennae and devices associated with tracking and monitoring;

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

1.4.11 “Helicopter Services” shall mean a Helicopter no smaller than a Robinson 44 type, fitted with Equipment and piloted by a suitably qualified commercial pilot. The pilot shall also have been trained in the use of the Equipment, failing which an observer shall be supplied with each helicopter team to operate the Equipment (if applicable);

1.4.12 “Installed Vehicle” shall mean any motor vehicles or other trackable asset in which a MiX trackable unit has been installed;

1.4.13 “Intellectual Property” shall mean all intellectual property of every nature whatever owned and/or controlled by MiX including, without limiting the generality of the aforegoing, the trade marks, marks, logos and trade names and all of MiX’s right, title and interest in and to all technology, trade secrets, insignias, designs, patents and copyrights relating to MiX’s trackable units and products, whether registered or not;

1.4.14 “Public Announcement” shall mean any communication whether written or oral, whether conveyed by an employee, manager or contractor, which is intended or could reasonably be anticipated to result in any information about MiX or any Customer of MiX appearing in any media;

1.4.15 “Recovery Dispatcher” shall mean a person nominated by the Contractor as their representative for operational management of the Services;

1.4.16 “Recovery Team” shall mean a motor vehicle in good working order which is manned by no less than 2 (two) fully trained security officers;

1.4.17 “Services” shall mean:

1.4.17.1 the supply of Recovery Teams as set out in annexure A;

1.4.17.2 the supply of the Helicopter Services set out in annexure E;

1.4.17.3 the tracking and recovery of Installed Vehicles;

1.4.17.4 such additional services as may be agreed between the Parties from time to time;

1.4.18 “Standard Procedures” shall mean the standard procedures with regard to the Services as may be agreed in writing between MiX and the Contractor and which procedure shall form an integral part of this Agreement;

1.4.19 “System/System Software” means the software owned by and/or licensed to MiX and used by MiX to track MiX’s tracking units;

1.4.20 “Targeted Level” means a B-BBEE compliance Level 2 for a Generic Enterprise and Level 2 for a Qualifying Small Enterprise and Exempted Micro Enterprise;

1.4.21 “Uncontrollable Costs” means those costs which are outside the control of the Contractor and are specified as such in the annexures;

1.4.22 “VAT” means Value Added Tax in terms of the VAT Act of the Republic of South Africa;

1.4.23 “VAT Act” means the Value Added Tax Act, No 89 of 1991, as amended;

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

1.5 any reference to any legislation is to such legislation as at the signature date and as amended or re-enacted from time to time;

1.6 if any provision in a definition is a substantive provision conferring any right or imposing any obligation on any party, then notwithstanding that it is only in the interpretation clause, effect shall be given to it as if it were a substantive provision in this Agreement; and

1.7 when any number of days is prescribed, such number shall exclude the first and include the last day unless the last day falls on a Saturday, Sunday or public holiday in the Republic of South Africa, in which case the last day shall be the next succeeding day which is not a Saturday, Sunday or public holiday in the Republic of South Africa.

2. Introduction

2.1 MiX Telematics Africa (Proprietary) Limited (“MiX”) is a company with limited liability duly incorporated in terms of the company laws of the Republic of South Africa.

2.2 The Contractor, Super Group Trading (Proprietary) Limited, is a company with limited liability duly incorporated in terms of the company laws of the Republic of South Africa.

2.3 MiX requires the Contractor to render the Services.

2.4 The Contractor has the necessary expertise and experience to render the Services to MiX.

2.5 The parties herein record the terms and conditions by which they wish their relationship to be governed.

3. Commencement and Term

3.1 This Agreement shall commence on 1 October 2017 (“Commencement Date”) and shall endure indefinitely until terminated in terms of clause 9 or clause 11 hereof.

4. Price and Payment

4.1 The prices to be paid by MiX for the Services are set out in the annexures hereto and shall remain as such until altered by mutual written agreement between the parties, once per year on the anniversary of the Commencement Date, which increase shall be at the Consumer Price Index, but not less than ***.

4.2 Payment shall be made:

4.2.1 monthly in advance for all fixed monthly retainers, provided suitable tax invoices have been furnished to MiX by the Contractor; and

4.2.2 after receipt of taxation invoices, which invoices must have attached the basis upon which the amount has been calculated. Details to be disclosed on the invoice for each service provided include, inter-alia:

4.2.2.1 type of Service;

4.2.2.2 date and time;

4.2.2.3 duration;

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

4.2.2.4 description of the incident;

to enable MiX to verify proof of delivery of Service together with any other documents that may be relevant and payment shall be made thirty (30) days after the date of the statement which shall show all the invoices due for payment.

4.3 Statements must be dated the last day of the month in which relevant invoices were raised and received by MiX.

4.4 The Contractor will provide MiX with its banking details, VAT registration documents and a cancelled cheque together with the first invoice sent to MiX.

5. Obligations of the Contractor

5.1 The Contractor undertakes:-

5.1.1 to provide all necessary labour, materials and equipment necessary to effectively render the Services to the standards as specified in the annexures;

5.1.2 to take all reasonable and necessary precautions to ensure the safety of its employees;

5.1.3 to operate with the highest ethical standards and take all reasonable and necessary steps to ensure the honesty and integrity of all employees and sub-contractors, including, inter-alia, polygraph testing every twelve (12) months and rigorous background checking;

5.1.4 take the utmost care to avoid injuring any third party, employee or sub-contractor or damaging any property during the execution of the Services;

5.1.5 to ensure that the quality of the Services is and will remain in accordance with industry standards and the requirements specified herein;

5.1.6 to execute the Services in terms of this Agreement and in compliance with the laws, regulations or any other statutory or Government Act governing the Contractor and the Services;

5.1.7 to use all reasonable endeavours to track MiX tracking units as directed by MiX and recover the Installed Vehicles in good condition;

5.1.8 to comply with all reasonable instructions of MiX;

5.1.9 that recovery resources dedicated to MiX shall sorely be used for MiX’s work unless MiX expressly agrees to the contrary in writing;

5.1.10 that when there are conflicting demands on recovery resources, the Contractor and all his sub-contractors, shall at all times give preference to MiX’s requirements;

5.1.11 that Recovery Vehicles shall be unbranded, until such time as MiX decides to brand such vehicles, which branding shall be determined with input from the Contractor, with the costs of any such branding being paid by MiX;

5.1.12 the Contractor shall ensure that no Customer shall interact with any Recovery Team bearing the brand of any competitor of MiX;

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

5.1.13 to allow any authorised representative of MiX access to any facilities, maintained by the Contractor and from which the Services are provided, to evaluate the quality of the operations of the Contractor;

5.1.14 not to do, permit or omit to do anything which might have the effect of prejudicing or impeding the bona fide activities of MiX or its Customers and bring it into disrepute;

5.1.15 not to provide any service to any third party other than those listed in annexure D without the prior written permission of MiX, which permission shall be given or withheld at MiX’s absolute discretion;

5.1.16 not to make, or allow any employee or agent to make, any Public Announcement without the express written permission of MiX;

5.1.17 to be responsible for the security and maintenance of the Equipment supplied by MiX, other than any costs resulting from fair wear and tear which shall be borne by MiX;

5.1.18 to, during the currency of this Agreement and for thirty six (36) months thereafter, maintain the confidentiality of all know-how which it may acquire in relation to-

5.1.18.1 the intellectual property;

5.1.18.2 the MiX tracking units and the Services;

5.1.18.3 MiX’s software;

5.1.18.4 MiX’s business operations and its relationship with any business

Associate or Customer; and

5.1.18.5 MiX employees,

and the Contractor undertakes that it will not disclose any portion of such know-how to any third party during the currency of this Agreement or at any time thereafter. Furthermore, the Contractor undertakes not to use any such information in any manner which may be detrimental to MiX’s business and to provide every assistance to MiX to protect its rights.

6. Contractor warranties

6.1 The Contractor warrants:

6.1.1 that it has the necessary licenses, approvals and authority to render the Services to MiX, and the Contractor indemnifies MiX from all claims by any third party to the contrary;

6.1.2 that it has suitable insurance cover in place including public liability insurance;

6.1.3 that the Contractor specifically indemnifies and holds MiX harmless from and against any loss, claim, action, damage or expense suffered or sustained by any member of the Contractor’s personnel in the course of effecting the Services and the Contractor

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

indemnifies MiX against any claim whatsoever arising from the provision of the Services;

6.1.4 that the Contractor specifically indemnifies and holds MiX harmless from and against any claim or action from a Customer as a consequence of the actions or inaction of the Contractor. This includes an indemnity against claims arising from damage to, or loss of, any Customer’s vehicle during the course of any recovery procedure;

6.1.5 that the Contractor shall at all times have a suitable contingency plan which will enable the Contractor to continue to deliver the Services without disruption.

7. MiX’s Obligations

7.1 MiX shall:    

7.1.1 provide the necessary Equipment and software which is proprietary to MiX, and which is required to facilitate the tracking of MiX’s tracking units, in the quantities which the Contractor may reasonably require to provide the Services;

7.1.2 timeously report all incidents which require the Contractor to supply Services in order to maximize the chances of recovery and reduce the costs of providing the Services;

7.1.3 communicate all material information to the Contractor to assist the Contractor to efficiently provide the Services;

7.1.4 allow all reasonable access to MiX’s sites so that the Contractor may provide the Services and to allow the Contractor to connect and/or remove its Systems should this Agreement terminate;

7.1.5 during the currency of this Agreement and for thirty six (36) months thereafter, maintain the confidentiality of all know-how which it may acquire in relation to-

7.1.5.1 the Contractor’s business operations and its relationship with any business     Associate and client;

7.1.5.2 the Contractor’s employees;

and shall not disclose any portion of such know-how to any third party during the currency of this Agreement or at any time thereafter. Furthermore, MiX undertakes not to use any such information in any manner which may be detrimental to the Contractor’s business and to provide every assistance to the Contractor to protect its rights; and

7.1.6 timeously pay all amounts owing to the Contractor for Services which have been rendered in accordance with the terms of this Agreement.

8. Impossibility of performance

8.1 Should any party (“the requisitionist”) be prevented or delayed from fulfilling any of its obligations in terms of this Agreement as a result of any circumstances beyond its control, the requisitionist shall, subject to the provisions if clauses 6.1.5 and 8.3, be excused from performing that particular obligation or part thereof for so long as such circumstances exist,

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

provided that if the performance by the requisitionist of any such obligation persists for a period in excess of fourteen (14) days, either party shall be entitled to terminate this Agreement forthwith.

8.2 For the purposes of this clause 8 “circumstances beyond its control” shall mean vis major (including without limiting the generality of the aforegoing, any act of God and any other occurrence that is generally understood as constituting vis major including war, hostilities, insurrection, embargo, riot, fire, flood, cyclone, earthquake, landslide or explosion).

8.3 The requisitionist shall not be excused from performing any obligation in terms of this Agreement as a result of any such circumstances beyond its control if –

8.3.1 the requisitionist fails to inform the other party of such circumstances as soon as is reasonably possible after any such circumstances occurs; and

8.3.2 the requisitionist fails to take all steps reasonably possible to prevent, avoid or limit the duration and effects of any such circumstances; or

8.3.3 any act or omission on that part if the requisitionist caused the circumstances envisaged in clause 8.1 to arise.

9. Breach

9.1 If either party breaches any provision or term of this Agreement and fails to remedy such breach within seven (7) days of the date of receipt of written notice requiring it to do so, then the aggrieved party may declare a dispute in writing whereupon the parties will arrange to meet forthwith to resolve the dispute and failing the resolution of the dispute then the aggrieved party shall be entitled, in addition to any other remedy available to it at law, to cancel this Agreement on thirty (30) days’ written notice or to hold the other party to the terms of this Agreement and claim specific performance, in either event without prejudice to the aggrieved party’s rights to claim damages.

10. Arbitration

10.1 Save where otherwise provided in this Agreement, in the event of any dispute or difference arising between the parties hereto relating to or arising out of this Agreement, including the validity, implementation, execution, interpretation, rectification, termination, or cancellation of this Agreement, the parties shall forthwith meet to attempt to settle such dispute or difference and shall, on written demand by any party to the dispute, be submitted to arbitration in Johannesburg in accordance with the rules of the Arbitration Foundation of Southern Africa (“the Foundation”) by an arbitrator or arbitrators appointed by the Foundation and agreed to by the parties.

10.2 Should the parties fail to agree in writing on an arbitrator within ten (10) days after arbitration has been demanded, the arbitrator shall be nominated at the request of any party to the dispute by the Foundation.

10.3 The parties irrevocably agree that the submission to arbitration in terms of this clause is subject to the parties’ rights of appeal set out hereunder.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

10.3.1 Any party to the arbitration may appeal the decision of the arbitrator within a period of twenty one (21) days after the arbitrator’s ruling has been handed down by giving written notice to that effect to the party or parties to the arbitration. The appeal shall be dealt with in accordance with the rules of the Foundation by a panel of three (3) arbitrators appointed by the Foundation.

10.3.2 The decision of the arbitrator shall be final and binding on the parties to the arbitration after the expiry of the period of twenty-one (21) days from date of the arbitrator’s ruling if no appeal has been lodged by any party. A decision which becomes final and binding in terms of the clause 10.3.2 may be made an order of court at the instance of any party to the arbitration.

10.4 Nothing herein contained shall be deemed to prevent or prohibit any party from applying to the appropriate Court for urgent relief.

11. Termination

11.1 MiX reserves the right to terminate this Agreement, with notice and without limiting MiX’s rights to claim for damages, if the Contractor:

11.1.1        commits any material breach which goes to the root of the Agreement; or

11.1.2        persistently breaches any of the provisions of this Agreement; or

11.1.3        fails to carry out any of the Services in a fit and proper manner; or

11.1.4          is guilty of any criminal offence.

11.2 Either party may terminate this Agreement upon ninety (90) days’ written notice to the other party, however, such notice may not be given before 31 January 2018.

12. Domicilium

12.1 Each party chooses as its domicilium citandi et executandi (“domicilium”) for all purposes under this Agreement, whether for serving any court process or documents, giving any notice, or making any other communications of whatsoever nature and for any other purpose arising from this Agreement (“notice”) as follows:-

MiX Telematics Africa (Proprietary) Limited

Matrix Corner

Howick Close

Waterfall Park

Midrand

Attention: The Managing Director

e-mail: gert.pretorius@mixtelematics.com

Super Group Trading (Proprietary) Limited

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Sandhurst Office Park, Block E,

Corner Kathrine and Rivonia Road,

Sandton,

2193

Telefax No: 011 523 4791

Attention: CEO

12.2 Any notice required or permitted to be given under this Agreement shall be valid and effective only if in writing.

12.3 Any party may by notice to the other party change its domicilium to another physical address in the Republic of South Africa and such change shall take effect on the seventh day after the date of the receipt by the other party of the notice.

12.4 Any notice to a party contained in a correctly addressed envelope and delivered by hand to a responsible person during ordinary business hours at its domicilium shall be deemed to have been received on the date of delivery.

12.5 Notwithstanding anything to the contrary herein, a written notice actually received by a party, including a notice sent by e-mail (“the first notice”) shall be adequate notice to it notwithstanding that it was not sent or delivered to its chosen domicilium, provided that, within the next three (3) succeeding business days a copy of the first notice is delivered to the chosen domicilium accompanied by a notice giving the following particulars:-

12.5.1 where the first notice was sent by e-mail, the date and time of dispatch and the e-mail address to which it was sent; and

12.5.2 where the first notice was delivered in a manner other than by e-mail, the date on which it was delivered.

13. B-BBEE

13.1 It is hereby recorded that, as at the Commencement Date, the Contractor’s B-BBEE rating is a Level 2 (“Initial Level”) and that the Contractor complies with the B-BBEE Minimum Requirements. The Contractor shall submit valid and current B-BBEE Certification to MiX and such certification will constitute a warranty by the Contractor of such Initial Level status.

13.2 The Contractor shall be B-BBEE compliant and maintain at least the Targeted Level for the purposes of this Agreement.

13.3 The Contractor shall use its best endeavours to maintain its Initial Level.

13.4 The Contractor shall furthermore, for the duration of the Agreement, submit to MiX valid B-BBEE Certification every twelve (12) months, on expiry of the then current B-BBEE Certification or an “in process” letter from the verification agency two (2) months prior to the expiry of the then current B-BBEE Certification, stating that a recertification process has been initiated, if applicable.

13.5 The Contractor hereby undertakes to comply with the Preferential Procurement Policies of MiX (as revised from time to time).

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

13.6 Should the Contractor’s B-BBEE contribution Level be downgraded for whatsoever reason, MiX shall give the Contractor a period of twelve (12) months from the date of its downgrade, to meet or better the contribution Level held before such downgrade or such level as may be expressly agreed by MiX in writing. In the event of such a downgrade, the Contractor shall submit a transformation plan to MiX within three (3) months of such downgrade, which clearly demonstrates the steps that shall be taken by the Contractor to comply with this clause, including the proposed time frames by which the Contractor shall satisfy the required contribution Level. The transformation plan must be acceptable to MiX, at its sole and absolute discretion, and recorded in writing by the parties.

13.7 In the event that the Contractor subcontracts its services, it must ensure that each of the sub-contractors will at least maintain the B-BBEE contributor Level evidenced by their respective verification certificates or affidavits as at the Commencement Date of this Agreement.

13.8 MiX hereby reserves the right to unilaterally amend the B-BBEE commitments provided for in this Agreement or its Preferential Procurement Policy, in the event of any change in the B-BBEE Codes or any applicable laws.

13.9 MiX shall further be entitled to terminate this Agreement, at its sole discretion, in the event that:

13.9.1 the representations made by the Contractor relating to its Initial Level or future B-BBEE contributor Levels are false;

13.9.2 the Contractor fails to maintain valid B-BBEE Certification in the case of a Generic Enterprise or Qualifying Small Enterprise that is less than 51% black owned;

13.9.3 the Contractor’s B-BBEE contributor Level changes during the duration of the Agreement and an agreed transformation plan is not submitted within the three (3) month period from date of change in status;

13.9.4 the Contractor breaches any of its obligations in terms of the B-BBEE clause contained in this Agreement; or

13.9.5 the Contractor fails to inform MiX, within a period of thirty (30) days from the date of material change, which implies a decline in its B-BBEE ownership status.

14. Anti-corruption and anti-bribery

14.1 The parties agree not to violate any applicable Anti-Bribery Laws.

14.2 Each party has and must at all times implement adequate procedures designed to prevent it or any associated person (a person who, by reference to all the relevant circumstances, performs services for or on a party’s behalf in any capacity and including, without limitation, employees, agents, subsidiaries, representatives and subcontractors) from engaging in any activity which would constitute an offence under any applicable Anti-Bribery Law.

14.3 Each party represents that, in connection with this Agreement, no improper financial or other advantage has been, will be or is agreed to be given to any person (whether working for or engaged by the other party or any third party) by or on behalf of the other party or its associated persons.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

14.4 Breach of any of the provisions in this clause or of any applicable Anti- Bribery Law is a material breach of this Agreement for the purpose of clause 11 and, without prejudice to any other right, relief or remedy, entitles the non-breaching party to terminate this Agreement immediately and without further notice.

15. Economic Sanctions

15.1 Neither party shall engage in any business or dealings with any embargoed countries, blocked persons, United States Bureau of Industry and Security (“BIS”) restricted parties, or individuals or entities listed as a sanctions target by the United States (for example, the United States Department of the Treasury's Office of Foreign Assets Control (OFAC)), United Kingdom and/or European Union legislation (including to facilitate transactions with third parties that involve embargoed countries, blocked persons or BIS restricted parties).

15.2 Breach by a party of any of the provisions in this clause or of any applicable economic sanction laws and/or provisions is a material breach of this Agreement for the purpose of clause 11 and, without prejudice to any other right, relief or remedy, entitles the non-breaching party to terminate this Agreement immediately and without further notice.

16. Non-Solicitation

16.1 Both parties undertake that they will not during the term of this Agreement and for a period of twelve (12) months after the termination thereof for any reason, directly or indirectly employ or persuade, induce, encourage or procure any officer or employee of the other, or any person who was an officer or employee of the other during the previous twelve (12) months, to become employed by or through them or to terminate his or her employment with the other party or any of its affiliates.

16.2 The provisions of clause 16.1 do not prohibit either of the parties from giving consideration to any application for employment submitted on an unsolicited basis or response to a general advertisement of employment opportunities.

17. General

17.1 This Agreement and its annexures constitute the sole record of the Agreement between the parties in relation to the subject matter hereof.

17.2. No party shall be bound by any representation, warranty, promise or the like not recorded herein.

17.3 The parties will at all times owe each other a duty of the utmost good faith.

17.4 No addition to, variation, or agreed cancellation of this Agreement shall be of any force or effect unless in writing and signed by or on behalf of the parties.

17.5 No indulgence which either party may grant to the other shall constitute a waiver of any of the rights of the grantor, who shall not thereby be precluded from exercising any rights against the grantee which may have arisen in the past or which might arise in the future.

17.6 This Agreement supersedes prior agreements, undertakings and arrangements existing between the parties relating to the subject matter hereof.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

17.7 Nothing in this Agreement shall be constructed as creating a partnership between the parties or as creating an agency or employment relationship between the parties.

17.8 Neither party may cede or assign that party’s rights or delegate that party’s obligations without the prior written consent of the other party which consent shall not be unreasonably withheld or delayed.

17.9 Each party represents that it has authority to enter into this Agreement and to do all things necessary to procure the fulfilment of its obligations in terms of this Agreement.

18. Governing law

18.1 This Agreement and the relationship of the parties in connection with the subject matter of this Agreement and each other shall be governed and determined in accordance with the laws of the Republic of South Africa.

18.2 The parties hereby submit to the non-exclusive jurisdiction of the Gauteng High Court, Johannesburg Division.

19. Severability

19.1 In the event of any one or more of the provisions of this Agreement being held for any reason to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement and this Agreement shall be constructed as if such invalid, illegal or unenforceable provision was not a part of this Agreement, and the Agreement shall be carried out as nearly as possible in accordance with its original terms and intent.

Signed at…………………………………………on………………………………………………………………….2017

As Witnesses:

1. ___________________________

2. ___________________________

___________________________________

For: MiX Telematics Africa (Proprietary) Limited              Warranting authority hereto

Name:

Capacity:

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Signed at ……………………………………………on…………………………………………………………2017

As Witnesses:

1. ___________________________

2. ___________________________

____________________________________

For: Super Group Trading (Proprietary) Limited Warranting authority hereto

Name:

Capacity:

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Annexure A

Services to be provided by the Contractor

1Recovery of Stolen Installed Vehicles

The Contractor shall ensure Recovery Teams are available at the following locations.

Recovery Team

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

REGION	CURRENT RETAINER COST EX VAT	50% SPLIT EX VAT
***	***	***
***	***	***
***	***	***
OTHER AREAS - NATIONAL	***	***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
***
OTHER AREAS - CROSS BORDER
***
***
***
***
***
***
***
***
***
***
	***

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

*Please note, that response services in the ***may be delayed due to the vastness of the areas & poor communication. Cognisance must be taken into consideration of the laws in place in each Country as well as the Bureaucratic delays.

MiX may vary the site locations of Recovery Teams. The variation shall be requested in writing and may be either a:

• Temporary variation, which, if necessary, will be implemented after the monthly review meeting of the parties, to cater for current hotspots (i.e. when and where active car syndicates are identified). The Contractor shall notify MiX of any such additional costs in writing within five (5) days of MiX’s request for the site variation. Temporary relocations only apply to the *** Recovery Teams; or

• Permanent variation, which shall require thirty (30) days’ notice.

MiX may cancel any external (outside of ***) Recovery Team upon thirty (30) days’ written notice.

Each ground Recovery Team to be equipped with the following items:

• *** (to be provided by ***)

• *** (to be provided by ***)

• *** (to be provided by ***)

• *** (to be provided by ***)

• *** for *** (to be provided by ***)

• *** (to be provided by ***)

• *** (to be provided by ***)

2    Identification of Faulty MiX tracking unit

The Contractor shall assist MiX to locate any malfunctioning MiX tracking unit.

3    Fixed Monthly Cost

These costs (which exclude VAT) shall be charged monthly in advance, as per the Table under point 1 above.

4    Variable Costs

These costs (which exclude VAT) shall be charged monthly in arrears and shall vary depending on the actual usage of the Services by MiX.

5Ground Team Services

These hourly charges shall only apply to the actual usage of the ground teams.

• *** Hourly Rate = ***

• ***Hourly Rate (Other Areas as per table)(excluding ***) = ***

• ***Hourly Rate = ***

• ***Hourly Rate = ***

• *** Hourly rate = *** (***Ad Hoc)

• Other areas Ad Hoc = ***

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

• *** Hourly Rate = ***

Annexure B

Service Level Agreement

1 The Contractor shall ensure that Recovery Teams and the Recovery Dispatcher are available twenty four (24) hours per day seven (7) days per week and at least *** percent (***%) of telephone calls from MiX shall be answered within *** (***) seconds.

2     The response times required for the Recovery Service are:

2.1         Peak Time (*** - *** on ***)

Recovery Team – Teams are to be mobilised within *** (***) minutes i.e. driving the recovery vehicle towards the location of the incident. This service level must be met for at least *** percent (***%) of all peak time recoveries.

2.2         Off peak Time – at all times outside of peak time

Recovery Team – Teams are to be mobilised with *** (***) minutes i.e. driving the recovery vehicle towards the location of the incident. This service level must be met for at least *** percent (***%) of all off peak time recoveries.

3 The Contractor shall provide a detailed written recovery report to MiX by *** hrs on the business day immediately after any incident.

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Annexure C

Standard Procedures to be followed

1 MiX shall despatch the appropriate Recovery Team or teams. If MiX deems it appropriate, it will instruct the Recovery Despatcher to use the Helicopter Services.

2 MiX shall contact the Recovery Dispatcher telephonically and inform him of the incident to enable the Contractor to ensure the appropriate service levels are maintained.

3 MiX, the Recovery Dispatcher and the Recovery Team will be in constant contact for updates and / or positional changes throughout the recovery process.

4 The Recovery Dispatcher shall be responsible for enlisting the necessary support from the various police services however it shall be at MiX’s sole discretion to authorise the use of Helicopter Services or any other air support, which might be deemed appropriate

5 MiX will decide when the Recovery Team and the Helicopter are to stand down.

6 Once a vehicle has been recovered the Contractor and/or its sub-contractors will return the said vehicle to the rightful owner, unless the South African Police Service demands possession of the vehicle. Should a vehicle towing service be required, the Contractor shall, upon MiX’s authorization and at MiX’s expense, organize with the Customer for the vehicle to be taken to a safe place as determined by MiX.

Annexure D

Permitted clients of the Contractor

***

Rentrak Client Portfolio

***

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Annexure E.1

Helicopter Services

The Contractor shall utilize a sub-contractor, pre-approved by MiX, to supply the Helicopter Services to MiX on the following terms:

1. A Helicopter Service shall be permanently available to MiX, from ***, twenty four (24) hours per day, seven (7) days per week.

2. The dedicated helicopter shall be airborne within *** (***) minutes for at least *** percent (***%) of call outs. If a second helicopter is required for a recovery after the first helicopter has had to land for whatsoever reason, the second helicopter will be airborne within *** (***) minutes from the time the first helicopter lands.

3. The sub-contractor shall endeavour to have additional suitably equipped helicopters available should more than *** (***) helicopter be required at any *** (***) time. The helicopter will be airborne within *** (***) minutes for at least *** (***%) of call outs.

4. The Helicopter Service shall be terminable upon ninety (90) days’ written notice.

5. The costs (excluding VAT) which shall be:

5.1 Monthly retainer to be charged monthly in advance, which retainer may be reviewed every six months: As from 1st October 2017 option 2 will apply.

5.1.1            Fixed Monthly Lease rate:    *** – *** hours per month (with no rollover)                            ***, ***

5.1.2 Fixed Monthly Lease rate:    *** - *** hours per month (with no rollover)                        ***, ***

5.1.3 Fixed Monthly Lease rate:    *** – *** hours per month (with no rollover)

***, ***

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED WITH AN ASTERISK ***, HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

Plus

5.3 Any landing fees incurred when MiX requires that a helicopter lands for refuelling at any airport other than the home base airport.

The quoted rates include:

i.    Dedicated pilot and helicopter (regardless of type - up to *** knots of surface winds);

ii.    Insurance, fuel and landing fees;

iii.    Hangarage and handling fees.

The quoted rates exclude:

i.              Surcharges associated with using a larger / multi-bladed helicopter for surface winds

> *** knots (*** or similar);

ii.         STC and/or Modification Approval costs for Matrix vehicle tracking antennae;

iii.            Annual increases in line with CPI;

iv.            VAT.

5.4 In the event that MiX exceeds the retainer hours/fees stipulated at clause 5.1 or if MiX requires a bigger helicopter, the following hourly charge per hour flown, charged monthly in arrears, will apply:

5.4.1 Hourly rate for Robinson 44 =         ***

5.4.2            Hourly rate for Bell Jet Ranger =     ***

5.4.3            Hourly rate for Bell Long Ranger =     ***

5.4.4            Hourly rate for Bell 407 =         ***

6. Subject to proof satisfactory to MiX, the rates may be adjusted from time to time to allow for any increase in the price of fuel used by the helicopter for the purposes of conducting the Helicopter Service, this review shall happen monthly.

7.    The approved sub-contractor shall initially be Henley Air.

EX-4.15

SECOND ADDENDUM TO AGREEMENT OF LEASE

between

THYNK PROPERTY FUND PROPRIETARY LIMITED

(the “Landlord”)

and

MIX TELEMATICS AFRICA PROPRIETARY LIMITED

(the “Tenant”)

Page 1 of 1

Initialled :________

Table of Contents

1.Introduction    3

2.Definitions and Interpretation    3

3.Renewal & Extension of Duration of Lease    4

4.Rental    4

5.New Clauses to Apply as between the Landlord and the Tenant    4

6.Anti-Corruption and Anti-Bribery    4

7.Economic Sanctions    5

8.General    5

Page 2 of 2

Initialled :________

1. Introduction

1.1. The Parties previously entered in to the Lease Agreement and the First Addendum to Agreement of Lease.

1.2. The Landlord and the Tenant would like to extend the duration of the First Addendum to Agreement of Lease, and record further amendments to same in writing.

1.3. Accordingly, the Parties agree as set out below herein.

2. Definitions and Interpretation

2.1. In this Second Addendum to Agreement of Lease the following terms and expressions shall, unless otherwise stated or inconsistent with the context in which they appear, bear the following meanings and other words derived from the same origins as such words shall bear corresponding meanings:

2.1.1. “First Addendum to Agreement of Lease” means the document entitled “Addendum to Agreement of Lease” and signed by both of the parties in and during 2012;

2.1.2. “Second Addendum to Agreement of Lease” means this written document entitled “Second Addendum to Agreement of Lease” as well as any schedules or annexures to this document, as well as documents incorporated by reference, which are all deemed to form part of hereof, as amended from time to time in accordance with the terms hereof; and

2.1.3. “Signature Date of this Second Addendum to Agreement of Lease” means, when this Second Addendum to Agreement of Lease has been signed by each party hereto, the latest of the date on which this Second Addendum to Agreement of Lease was signed by such party signing latest in time.

2.2. Unless the context requires otherwise, all words defined in the Lease Agreement and the First Addendum to Agreement of Lease (but not herein defined) and used in this Second Addendum to Agreement of Lease shall have the meanings ascribed to them in the Lease Agreement and the First Addendum to Agreement of Lease, respectively.

2.3. The amendments to the Lease Agreement and the First Addendum to Agreement of Lease, respectively, as provided for in this Second Addendum to Agreement of Lease shall constitute an integral part of each of the Lease Agreement and the First Addendum to Agreement of Lease, respectively, and must be read together. Other than amendments effected to the Lease Agreement and the First Addendum to Agreement of Lease, respectively, all of the provisions of the Lease Agreement and the First Addendum to Agreement of Lease, respectively, shall remain unchanged, and be of full force and effect.

2.4. If there is any conflict between either:

2.4.1. the Lease Agreement and this Second Addendum to Agreement of Lease, or

2.4.2. the First Addendum to Agreement of Lease and this Second Addendum to Agreement of Lease;

then this Second Addendum to Agreement of Lease will prevail.

2.5. The interpretation of this Second Addendum to Agreement of Lease will be subject to the same rules of interpretation as are applicable to the Lease Agreement.

Page 3 of 3

Initialled :________

3. Renewal & Extension of Duration of Lease

3.1. Notwithstanding that the First Addendum to Agreement of Lease provided in clause 4.1 that the term of the lease would be terminating on 31 March 2017, it is hereby agreed that the lease period will be deemed to have been renewed as from 01 April 2017.

3.2. Notwithstanding anything to the contrary in the Lease Agreement or the First Addendum to Agreement of Lease, the lease of the premises will be deemed to have continued as from 01 April 2017, up to the end of the calendar month in which the Signature Date of this Second Addendum to Agreement of Lease has occurred, and will thereafter continue in force for further successive periods of 1 (one) calendar month each, unless terminated by either party on 1 (one) calendar months’ prior written notice to the other party.

4. Rental

4.1. Notwithstanding clause 4.2 (Rental) of the First Addendum to Agreement of Lease, the net monthly rental payable exclusive of VAT, on and with effect from the Signature Date of this Second Addendum to Agreement of Lease is R479, 546.96 per month.

4.2. Accordingly, the escalation provided for in clause 4.3 of the First Addendum to Agreement of Lease will not continue to operate with regards to the rental payable by the Tenant, and there will be no escalation in the rental or any other amount paid by the Tenant to the Landlord, unless otherwise agreed in writing between the Tenant and the Landlord.

5. New Clauses to Apply as between the Landlord and the Tenant

5.1. Clause 6 (Anti-Corruption and Anti-Bribery) and clause 7 (Economic Sanctions), below, will as of the Signature Date of this Second Addendum to Agreement of Lease apply and be of full force and effect for the whole duration of the period of the lease between the parties.

6. Anti-Corruption and Anti-Bribery

6.1. The Landlord agrees not to violate any applicable means any bribery, fraud, kickback, or other similar anti-corruption law or regulation of any relevant country (hereafter “Anti-Bribery Law”).

6.2. The Landlord has and must at all times implement adequate procedures designed to prevent it or any associated person (a person who, by reference to all the relevant circumstances, performs services for or on the Promoters behalf in any capacity and including, without limitation, employees, agents, subsidiaries, representatives and subcontractors) from engaging in any activity which would constitute an offence under any applicable Anti-Bribery Law.

6.3. The Landlord represents that, in connection with this Addendum, and the Agreement of Lease, and / or the Offer to Lease, no improper financial or other advantage has been, will be or is agreed to be given to any person (whether working for or engaged by the Tenant or any third party) by or on behalf of the Tenant or its associated persons.

6.4. Breach of any of the provisions in this clause 6 or of any applicable Anti-Bribery Law is a material breach of this Addendum and the Agreement of Lease, and / or the Offer to Lease, and without prejudice to any other right, relief or remedy, entitles the Tenant to terminate this Addendum immediately and without further notice.

7. Economic Sanctions

Page 4 of 4

Initialled :________

7.1. Each of the Tenant and the Landlord shall comply with all applicable laws pertaining to its respective obligations under this Addendum, and the Agreement of Lease, and the Offer to Lease, with respect to the import, export, distribution, sales and marketing of its equipment, services, products, software and the like.

7.2. Furthermore, the Landlord shall not engage in any business or dealings with any embargoed countries, blocked persons, United States Bureau of Industry and Security (“BIS”) restricted parties, or individuals or entities listed as a sanctions target by the United States (for example, the United States Department of the Treasury's Office of Foreign Assets Control (OFAC)), United Kingdom and/or European Union legislation (including to facilitate transactions with third parties that involve embargoed countries, blocked persons or BIS restricted parties).

7.3. Breach by the Landlord of any of the provisions in this clause 7 or of any applicable economic sanction laws and/or provisions is a material breach of this Addendum and the Agreement of Lease, and / or the Offer to Lease and, without prejudice to any other right, relief or remedy, entitles the Tenant to terminate this Addendum immediately and without further notice.

8. General

8.1. This Second Addendum to Agreement of Lease constitutes the whole of the agreement between the Parties hereto relating to the subject matter hereof and the Parties will not be bound by any terms, conditions or representations whether written, oral or by conduct and whether express or tacit not recorded herein.

8.2. The Parties warrant that they have not been induced to enter into this Second Addendum to Agreement of lease by any prior representations, warranties or guarantees, whether oral or in writing, except as expressly contained in this Second Addendum to Agreement of Lease.

8.3. No variation, addition to or cancellation of this Second Addendum to Agreement of Lease and no waiver of any right under this Second Addendum to Agreement of Lease will be of any force or effect unless reduced to writing and signed by or on behalf of the Parties in pen and ink, and excluding by electronic communication.

8.4. The signatories hereto acting in representative capacities warrant that they are authorised to act in such capacities.

8.5. The failure by any party to enforce any provision of this Second Addendum to Agreement of Lease will not affect in any way that party's right to require performance of the provision at any time in the future, nor will the waiver of any subsequent breach nullify the effectiveness of the provision. No waiver will be effective unless it is expressly stated in writing and signed by the party giving it.

8.6. Clause and sub-clause headings have been inserted for convenience only and will not be used for nor assist or affect the interpretation of this Second Addendum to Agreement of Lease.

8.7. This Second Addendum to Agreement of Lease may be executed in any number of counterparts (including electronic or faxed counterparts) and all of such counterparts taken together will be deemed to constitute one and the same instrument.

THUS DONE AND SIGNED AND WITNESSED BY THE PARTIES ON THE FOLLOWING DATES AND AT THE FOLLOWING PLACES RESPECTIVELY:

Page 5 of 5

Initialled :________

SIGNED at _________________________ on the ______ day of _______________ 2017

___________________________________________

for an on behalf of the Tenant

who warrants that he / she is duly authorised hereto

_____________________________

Print name: (Tenant signatory)

as witness:

___________________________________________

_____________________________    

Print name: (witness)    

SIGNED at _________________________ on the ______ day of _______________ 2017

___________________________________________

for an on behalf of the Landlord

who warrants that he / she is duly authorised hereto

_____________________________

Print name: (Landlord signatory)

as witness:

___________________________________________

Page 6 of 6

Initialled :________

_____________________________    

Print name: (witness)    

Page 7 of 7

Initialled :________

EX-8.1

Exhibit 8.1

MiX Telematics Limited

List of Subsidiaries

Name of Subsidiary	Jurisdiction of     Incorporation
MIX TELEMATICS AFRICA PROPRIETARY LIMITED	Republic of South Africa
MIX TELEMATICS INTERNATIONAL PROPRIETARY LIMITED	Republic of South Africa
MIX TELEMATICS EUROPE LIMITED	United Kingdom
MIX TELEMATICS NORTH AMERICA INCORPORATED	United States of America
MIX TELEMATICS AUSTRALASIA PROPRIETARY LIMITED	Australia
MIX TELEMATICS MIDDLE EAST FZE	United Arab Emirates
MIX TELEMATICS ENTERPRISE SA PROPRIETARY LIMITED	Republic of South Africa
MIX TELEMATICS SERVIÇOS DE TELEMETRIA E RASTREAMENTO DE VEÍCULOS DO BRAZIL LIMITADA	Brazil
MIX TELEMATICS FLEET SUPPORT PROPRIETARY LIMITED	Republic of South Africa
MIX TELEMATICS EAST AFRICA LIMITED	Uganda
MIX TELEMATICS INVESTMENTS PROPRIETARY LIMITED	Republic of South Africa
MIX TELEMATICS ROMANIA SRL	Romania
MIX TELEMATICS (THAILAND) LIMITED	Thailand

EX-12.1

Exhibit 12.1

CERTIFICATIONS

I, Stefan Joselowitz, certify that:

1. I have reviewed this annual report on Form 20-F of MiX Telematics Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: July 2, 2018

By: /s/ Stefan Joselowitz

Stefan Joselowitz

Chief Executive Officer

EX-12.2

Exhibit 12.2

CERTIFICATIONS

I, Paul Dell, certify that:

1. I have reviewed this annual report on Form 20-F of MiX Telematics Limited;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and

5. The company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.

Date: July 2, 2018

By: /s/ Paul Dell

Paul Dell

Interim Chief Financial Officer

EX-13.1

Exhibit 13.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the annual report of MiX Telematics Limited (the “Company”) on Form 20-F for the year ended March 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “report”), each of the undersigned officers of the Company, does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

1. the report, as filed with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 2, 2018

By: /s/ Stefan Joselowitz

Stefan Joselowitz

Chief Executive Officer

Date: July 2, 2018

By: /s/ Paul Dell

Paul Dell

Interim Chief Financial Officer

EX-15.1

Exhibit 15.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-199908 and No.333-196723 on Form S-8 of our report dated July 2, 2018, relating to the financial statements of MiX Telematics Limited appearing in this Annual Report on Form 20-F of MiX Telematics Limited for the year ended March 31, 2018.

/s/ Deloitte & Touche

Registered Auditor

Johannesburg, South Africa

July 2, 2018

National Executive: *LL Bam Chief Executive Officer *TMM Jordan Deputy Chief Executive Officer; Clients & Industries *MJ Jarvis Chief Operating Officer *AF Mackie Audit & Assurance *N Sing Risk Advisory DP Ndlovu Tax & Legal TP Pillay Consulting *JK Mazzocco Talent & Transformation MG Dicks Risk Independence & Legal *Kl Hodson Corporate Finance *TJ Brown Chairman of the Board

A full list of partners and directors is available on request *Partner and Registered Auditor

EX-15.2

Exhibit 15.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Forms S‑8 (No. 333-196723) and S-8 (No. 333-199908) of MiX Telematics Limited of our report dated July 14, 2017 relating to the financial statements, which appears in this Form 20-F.

/s/ PricewaterhouseCoopers Inc.

Johannesburg, South Africa

July 2, 2018

EX-99.1

Exhibit 99.1

Consolidated statement of financial position

at March 31, 2018 and March 31, 2017

	Notes	March 31, 2018		March 31, 2017
		R’000		R’000
ASSETS
Non-current assets
Property, plant and equipment	6	334,038		294,120
Intangible assets	7	898,527		881,900
Finance lease receivable	8	—		22
Deferred tax assets	18	40,717		28,130
Total non-current assets		1,273,282		1,204,172
Current assets
Assets classified as held for sale	6	17,058		—
Inventory	9	57,013		26,449
Trade and other receivables	10	286,406		260,576
Finance lease receivable	8	—		140
Taxation	28	30,373		26,302
Restricted cash	11	20,935		13,268
Cash and cash equivalents	12	308,258		375,782
Total current assets		720,043		702,517
Total assets		1,993,325		1,906,689
EQUITY
Stated capital	13	846,405		854,345
Other reserves	14	(51,614	)	(4,370	)
Retained earnings		722,380		594,514
Equity attributable to owners of the parent		1,517,171		1,444,489
Non-controlling interest		10		(1,558	)
Total equity		1,517,181		1,442,931
LIABILITIES
Non-current liabilities
Deferred tax liabilities	18	82,658		100,067
Provisions	19	2,132		1,833
Total non-current liabilities		84,790		101,900
Current liabilities
Trade and other payables	16	350,519		309,110
Taxation		2,832		4,521
Provisions	19	20,283		28,778
Bank overdraft	12	17,720		19,449
Total current liabilities		391,354		361,858
Total liabilities		476,144		463,758
Total equity and liabilities		1,993,325		1,906,689

The accompanying notes form an integral part of these financial statements.

21

Consolidated income statement

for the years ended March 31, 2018, March 31, 2017 and March 31, 2016 

	Notes	March 31, 2018		March 31, 2017		March 31, 2016
		R’000		R’000		R’000
Revenue	21	1,712,482		1,540,058		1,465,021
Cost of sales		(586,963	)	(498,785	)	(439,305	)
Gross profit		1,125,519		1,041,273		1,025,716
Other income/(expenses) — net	22	4,246		426		1,244
Operating expenses		(914,813	)	(903,837	)	(887,876	)
Sales and marketing		(184,978	)	(181,601	)	(203,767	)
Administration and other charges		(729,835	)	(722,236	)	(684,109	)
Operating profit	23	214,952		137,862		139,084
Finance (costs)/income — net		(69	)	10,391		150,327
Finance income	24	8,951		16,068		152,164
Finance costs	25	(9,020	)	(5,677	)	(1,837	)
Profit before taxation		214,883		148,253		289,411
Taxation	28	(33,690	)	(26,812	)	(106,920	)
Profit for the year		181,193		121,441		182,491
Attributable to:
Owners of the parent		181,134		121,458		182,989
Non-controlling interests		59		(17	)	(498	)
		181,193		121,441		182,491
Earnings per share
Basic (R)	29	0.32		0.19		0.24
Diluted (R)	29	0.32		0.19		0.23

The accompanying notes form an integral part of these financial statements.

22

Consolidated statement of comprehensive income

for the years ended March 31, 2018, March 31, 2017 and March 31, 2016

		March 31, 2018		March 31, 2017		March 31, 2016
	Notes	R’000		R’000		R’000
Profit for the year		181,193		121,441		182,491
Other comprehensive income:
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations		(60,331	)	(80,870	)	90,665
Attributable to owners of the parent	14	(60,339	)	(80,820	)	90,784
Attributable to non-controlling interests		8		(50	)	(119	)
Taxation relating to components of other comprehensive income	14, 18, 28	(237	)	(59	)	(2,466	)
Other comprehensive (loss)/income for the year, net of tax		(60,568	)	(80,929	)	88,199
Total comprehensive income for the year		120,625		40,512		270,690
Attributable to:
Owners of the parent		120,558		40,579		271,307
Non-controlling interests		67		(67	)	(617	)
Total comprehensive income for the year		120,625		40,512		270,690

The accompanying notes form an integral part of these financial statements.

23

Consolidated statement of changes in equity

for the years ended March 31, 2018, March 31, 2017 and March 31, 2016

		Attributable to owners of the parent
	Notes	Stated capital R’000		Other reserves* R’000		Retained earnings R’000		Total R’000		Non- controlling interest R’000		Total equity R’000
Balance at April 1, 2015		1,436,993		(21,894	)	450,347		1,865,446		(874	)	1,864,572
Total comprehensive income		—		88,318		182,989		271,307		(617	)	270,690
Profit for the year		—		—		182,989		182,989		(498	)	182,491
Other comprehensive income/(loss)		—		88,318		—		88,318		(119	)	88,199
Total transactions with owners		(116,038	)	7,838		(107,254	)	(215,454	)	—		(215,454	)
Shares issued in relation to share options exercised		7,722		—		—		7,722		—		7,722
Share-based payment transaction		—		7,838		—		7,838		—		7,838
Dividends declared	30	—		—		(107,254	)	(107,254	)	—		(107,254	)
Share repurchase		(123,760	)	—		—		(123,760	)	—		(123,760	)
Balance at March 31, 2016		1,320,955		74,262		526,082		1,921,299		(1,491	)	1,919,808
Total comprehensive income		—		(80,879	)	121,458		40,579		(67	)	40,512
Profit for the year		—		—		121,458		121,458		(17	)	121,441
Other comprehensive loss		—		(80,879	)	—		(80,879	)	(50	)	(80,929	)
Total transactions with owners		(466,610	)	2,247		(53,026	)	(517,389	)	—		(517,389	)
Shares issued in relation to share options exercised	13	7,072		—		—		7,072		—		7,072
Share-based payment transaction	14	—		2,247		—		2,247		—		2,247
Dividends declared	30	—		—		(53,026	)	(53,026	)	—		(53,026	)
Share repurchase	13	(473,682	)	—		—		(473,682	)	—		(473,682	)
Balance at March 31, 2017		854,345		(4,370	)	594,514		1,444,489		(1,558	)	1,442,931

24

Consolidated statement of changes in equity

for the years ended March 31, 2018, March 31, 2017 and March 31, 2016

		Attributable to owners of the parent
	Notes	Stated capital R’000		Other reserves* R’000		Retained earnings R’000		Total R’000		Non- controlling interest R’000	Total equity R’000
Total comprehensive income		—		(60,576	)	181,134		120,558		67	120,625
Profit for the year		—		—		181,134		181,134		59	181,193
Other comprehensive (loss)/income		—		(60,576	)	—		(60,576	)	8	(60,568	)
Total transactions with owners		(7,940	)	13,332		(53,268	)	(47,876	)	1,501	(46,375	)
Shares issued in relation to share options and share appreciation rights exercised	13	10,726		—		—		10,726		—	10,726
Share-based payment transaction	14	—		9,000		—		9,000		—	9,000
Share-based payment — excess tax benefit	14	—		5,833		—		5,833		—	5,833
Transactions with non-controlling interests	20	—		(1,501	)	—		(1,501	)	1,501	—
Dividends declared	30	—		—		(53,268	)	(53,268	)	—	(53,268	)
Share repurchase	13	(18,666	)	—		—		(18,666	)	—	(18,666	)
Balance at March 31, 2018		846,405		(51,614	)	722,380		1,517,171		10	1,517,181

* See note 14 for a composition of and movements in other reserves.

The accompanying notes form an integral part of these financial statements.

25

Consolidated statement of cash flows

for the years ended March 31, 2018, March 31, 2017 and March 31, 2016

		March 31, 2018		March 31, 2017		March 31, 2016
	Notes	R’000		R’000		R’000
Cash flows from operating activities
Cash generated from operations	31.2	413,025		377,115		293,808
Interest received		8,576		14,737		7,936
Interest paid		(3,731	)	(5,680	)	(1,831	)
Taxation paid		(64,662	)	(62,601	)	(59,479	)
Net cash generated from operating activities		353,208		323,571		240,434
Cash flows from investing activities
Purchases of property, plant and equipment	6	(238,646	)	(180,230	)	(155,584	)
Proceeds on sale of property, plant and equipment and intangible assets		4,388		369		633
Purchases of intangible assets	7	(99,615	)	(115,293	)	(86,276	)
Acquisition of business, net of cash acquired		—		—		(18,000	)
Deferred consideration paid		—		(1,103	)	(1,361	)
Decrease in restricted cash		127		6,951		19,346
Increase in restricted cash		(8,389	)	(3,588	)	(8,472	)
Net cash used in investing activities		(342,135	)	(292,894	)	(249,714	)
Cash flows from financing activities
Proceeds from issuance of shares	13	10,726		7,072		7,722
Share repurchase	13	(18,666	)	(473,682	)	(123,760	)
Dividends paid to Company’s owners		(53,201	)	(52,966	)	(107,150	)
Repayments of borrowings		—		—		(41	)
Acquisition of non-controlling interest	20	(1,353	)	—		—
Net cash used in financing activities		(62,494	)	(519,576	)	(223,229	)
Net decrease in cash and cash equivalents		(51,421	)	(488,899	)	(232,509	)
Net cash and cash equivalents at the beginning of the year		356,333		860,762		927,415
Exchange (losses)/gains on cash and cash equivalents		(14,374	)	(15,530	)	165,856
Net cash and cash equivalents at the end of the year	12	290,538		356,333		860,762

The accompanying notes form an integral part of these financial statements.

26

Notes to the consolidated financial statements

for the year ended March 31, 2018

1.General information

MiX Telematics Limited (the “Company”) is a public company which is incorporated and domiciled in South Africa. The Company’s ordinary shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). The activities of the Company and its subsidiaries (the “Group”) focus on fleet and mobile asset management solutions delivered as Software-as-a-Service. The address of the Company’s registered office is Matrix Corner, Howick Close, Bekker Road, Waterfall Park, Midrand, South Africa, 1686. The financial statements were approved by the Board of Directors on July 2,2018.

2.Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These accounting policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The annual financial statements of the Group for the year ended March 31, 2018 have been prepared in accordance with:

• International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”);

• IFRS Interpretations Committee (“IFRIC”) interpretations applicable to companies reporting under IFRS;

• SAICA Financial Reporting guides as issued by the Accounting Practices Committee;

• Financial Pronouncements as issued by the Financial Reporting Standards Council (“FRSC”);

• the requirements of the South African Companies Act, No. 71 of 2008; and

• the JSE Listings Requirements.

The financial statements have been prepared in thousands of Rand (R’000) under the historical cost convention except for certain financial instruments that have been measured at fair value.

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements, are disclosed in note 4.

2.1.1 Changes in accounting policy and disclosures

2.1.1.1 New standards, amendments and interpretations adopted by the Group

Standards, amendments and interpretations which are effective for the financial year beginning on or after April 1, 2017 did not have a material impact on the Group.

2.1.1.2     New standards, amendments and interpretations not yet effective

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

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

27

Notes to the consolidated financial statements

for the year ended March 31, 2018

Standards and amendments	Executive summary
IFRS 9 Financial Instruments (“IFRS 9”)	IFRS 9 addresses classification and measurement of financial assets and replaces the multiple classification and measurement models in IAS 39 Financial Instruments: Recognition and Measurement with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 also introduces a new impairment model and aligns hedge accounting more closely with an entity’s risk management. The standard is effective for the Group from April 1, 2018. The most relevant change to the Group is the requirement to use an expected loss model instead of the incurred loss model, which is currently being used, when assessing the recoverability of trade and other receivables. Based on the expected loss model contained in IFRS 9, the expected increase in the provision for doubtful debts at April 1, 2018 is between R2.0 million and R4.0 million.
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts. It is a single, comprehensive revenue recognition model for all contracts with customers and has the objective of achieving greater consistency in the recognition and presentation of revenue. In terms of the new standard, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of goods or services transfers to a customer. The revenue standard is effective for annual periods beginning on or after January 1, 2018 and therefore is applicable for the Group from April 1, 2018. The standard permits a modified retrospective cumulative catch-up approach for the adoption, which the Group has decided to apply. Under this approach the Group will recognize transitional adjustments in retained earnings on the date of initial application (i.e. April 1, 2018), without restating the comparative period. Under the practical expedient, the new requirements only need to be applied to contracts that are not completed as of April 1, 2018. The Group has assessed the impact of applying IFRS 15 on its financial statements and has identified the following areas that will be affected: Costs incurred in obtaining a contract: Commissions incurred to acquire contracts need to be capitalized and amortized, unless the amortization period is 12 months or less. Currently, the Group expenses commissions. Under IFRS 15, the amortization expense reflects the settlement of the related performance obligations, which, depending on the specific contract, may include hardware, installation, training and/or service. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service will be amortized over the expected life of the contract. The expected impact on the Group at April 1, 2018 is as follows: — Capitalized commission asset with a net book value of between R43.0 million and      R48.0 million; and — Additional recurring commission liability of between R6.0 million and R8.0 million. Recurring commission is commission which is payable for each month the customer remains with the Group. Since the commission relates to acquiring a customer contract, as part of the adoption of IFRS 15, a recurring commission liability will be recognized at the date on which the contract is acquired. The measurement will reflect the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. Under current accounting the recurring commissions are accrued for on a monthly basis. Amortization expense of external commissions capitalized under IFRS 15 will be recognized in cost of sales, while that of internal commissions will be recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient will also be classified in the same manner. This is in line with the current income statement presentation of the commission expense. The impact of IFRS 15 on both cost of sales and sales and marketing costs for fiscal 2019 is not expected to be material based on current forecasts.

28

Notes to the consolidated financial statements

for the year ended March 31, 2018

Standards and amendments	Executive summary
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	Significant financing: In respect of contracts for which the Group receives payment more than 12 months in advance, interest expense will need to be accrued on the income received in advance liability. This will result in the revenue being measured at a higher amount when it is recognized, compared to current accounting. At April 1, 2018, it is expected that the income received in advance liability (which will be disclosed as ‘liabilities related to contracts with customers’) will be between R1.0 million and R3.0 million higher than the balance at March 31, 2018. Fixed escalations: Fixed escalations will need to be spread evenly over the contract period resulting in the related revenue being different to what is actually billed. In the earlier part of the contract, revenue will be higher than the amount billed, while in the latter part it will be lower. Currently, the Group recognizes the increase in revenue due to fixed escalations only once the escalations are effective. A contract asset of between R1.0 million and R2.0 million is expected to be recognized on April 1, 2018, reflecting the amount by which revenue should have been higher under IFRS 15 in periods prior to March 31, 2018 as a result of straight-lining the fixed escalations.
IFRS 16 Leases (“IFRS 16”)	IFRS 16 replaces IAS 17 Leases and addresses the accounting and disclosures for leases. The standard provides a single lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities for all leases, unless the lease term is 12 months or less or the underlying asset is a low-value asset. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting remaining substantially unchanged from its predecessor, IAS 17. IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019, but can be early adopted. Given that the Group will be applying IFRS 15 from April 1, 2018, the Group decided to also adopt IFRS 16 from this date. The Group has chosen to apply the ‘simplified approach’ on adoption of IFRS 16 that includes certain relief related to the measurement of the right-of-use asset and the lease liability at April 1, 2018, rather than full retrospective application. Furthermore, the ‘simplified approach’ does not require a restatement of comparatives. The Group leases land and buildings, office equipment and vehicles which are currently treated as operating leases. The expected impact on the Group at April 1, 2018 is as follows:   — Right-of-use asset with a net book value of between R29.0 million and R32.0 million; and   — Lease liability (net of accruals/prepayments already recognized) of between R31.0 million      and R35.0 million.

29

Notes to the consolidated financial statements

for the year ended March 31, 2018

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

IFRS 9 assets	(R2.0 million to R4.0 million)
IFRS 15 assets	R44.0 million to R50.0 million
IFRS 16 assets	R29.0 million to R32.0 million
Total assets	R71.0 million to R78.0 million
IFRS 15 liabilities	R7.0 million to R11.0 million
IFRS 16 liabilities	R31.0 million to R35.0 million
Deferred tax liabilities	R6.0 million to R10.0 million
Total liabilities	R44.0 million to R56.0 million
Net increase in retained income	R22.0 million to R27.0 million

Summary of the expected impact on fiscal 2019 results of adopting IFRS 9, IFRS 15 & IFRS 16:

The impact on profit after tax for fiscal 2019 is not expected to be material.

2.2 Consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of financial position, respectively.

(b) Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Group;

• fair value of any asset or liability resulting from a contingent consideration arrangement; and

• fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred, except if related to the issue of equity securities, in which case these costs are also included in equity.

30

Notes to the consolidated financial statements

for the year ended March 31, 2018

The excess of the:

• consideration transferred;

• amount of any non-controlling interest in the acquired entity; and

• acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognized directly in the income statement as a bargain purchase gain.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of acquisition. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Unwinding of the interest element is recognized in the income statement.

Contingent consideration is measured at fair value on acquisition date and classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in the income statement.

(c) Changes in ownership interests in subsidiaries without a change of control

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group, that is, transactions with the owners in their capacity as owners. For purchases from non-controlling interests, the difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity.

Gains or losses on disposals to non-controlling interests are also recorded in equity.

2.3 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified collectively as the executive committee and the Chief Executive Officer who make strategic decisions.

Sales between segments are carried out at cost plus a margin.

2.4 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in South African Rand (“R”), which is the Group’s presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognized in the income statement.

Foreign exchange gains/(losses) are classified as “Finance income/(cost) — net”.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities such as equities classified as available-for-sale, are included in other comprehensive income.

31

Notes to the consolidated financial statements

for the year ended March 31, 2018

(c) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i) Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

(ii) Income and expenses for each income statement presented are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions);

(iii) All resulting exchange differences are recognized in other comprehensive income; and

(iv) Equity items are measured at historical cost at the time of recording, translated at the rate on the date of the recording and are not retranslated to closing rates at reporting dates.

On consolidation, exchange differences arising from the translation of net investments in foreign operations are recognized in other comprehensive income. When a foreign operation is fully disposed of or sold (i.e., control is lost), exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. A repayment/capitalization of a net investment loan therefore does not result in any exchange differences being transferred from equity to the income statement unless it is part of a transaction resulting in a loss of control.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences are recognized in other comprehensive income.

2.5 Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred.

The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices, is capitalized as property, plant and equipment. The Group depreciates installed in-vehicle devices on a straight-line basis over their expected useful lives, commencing upon installation, whereas uninstalled in-vehicle devices are not depreciated until installed. The related depreciation expense is recorded as part of cost of sales in the income statement.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life, as follows:

Property: Buildings	50 years
Plant and equipment	3 — 20 years
Motor vehicles	3 — 7 years
Other: Furniture, fittings and equipment	1 — 10 years
Computer and radio equipment	2 — 6 years
In-vehicle devices installed	1 — 5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (note 2.7).

Gains and losses on disposal of an asset are determined by comparing the proceeds with the carrying amount and are recognized within “Other income/(expenses) — net” in the income statement.

32

Notes to the consolidated financial statements

for the year ended March 31, 2018

2.6 Intangible assets

(a) Goodwill

Goodwill arises on the acquisition of businesses and represents the excess of consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the acquirer’s interest in the net fair value of the net assets acquired. Goodwill on acquisition of businesses is included in intangible assets. Gains and losses on the disposal of an entity include the carrying amount of the goodwill relating to the entity sold.

Goodwill is not amortized but is tested annually for impairment, or more frequently if events or changes in circumstances indicate a potential impairment, and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. The carrying amount of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value-in-use and the fair value less costs to sell. Impairment losses recognized as an expense in relation to goodwill are not subsequently reversed.

(b) Patents and trademarks

Separately acquired patents and trademarks are shown at historical cost. Patents and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Patents and trademarks have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of patents and trademarks over their estimated useful lives (three to 20 years).

(c) Customer relationships

Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship (two to 15.5 years) and reflects the pattern in which future economic benefits of the customer relationship are expected to be consumed. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates.

(d) Computer software, technology, in-house software and product development costs

Acquired computer software licenses are capitalized on the basis of costs incurred to acquire and bring the software into use. The acquired computer software licenses have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. These costs are amortized over their estimated useful lives (two to five years).

In-house software and product development costs that are directly attributable to the design, testing and development of identifiable and unique software and products, controlled by the Group, are recognized as intangible assets when the following criteria are met:

• It is technically feasible to complete the software or product so that it will be available for use;

• Management intends to complete the software or product and use or sell it;

• There is an ability to use or sell the software or product;

• It can be demonstrated how the software or product will generate probable future economic benefits;

• Adequate technical, financial and other resources to complete the development and use or sell the software or product are available; and

• The expenditure attributable to the software or product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the intangible assets include software and product development employee costs and an appropriate portion of relevant overheads.

33

Notes to the consolidated financial statements

for the year ended March 31, 2018

Other development expenditures that do not meet the criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period if the criteria are subsequently met.

Costs, including annual licenses, associated with maintaining computer software programs are recognized as an expense as incurred.

Technology, in-house software and product development costs are capitalized on the basis of costs incurred to acquire and bring them into use. The recognized assets have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. In addition, they are amortized over their estimated useful lives (one to 15 years).

2.7 Impairment of non-financial assets

Assets that have an indefinite useful life, goodwill and intangible assets that are not ready to use are not subject to amortization but are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell, and value-in-use. In assessing the value-in-use, the estimated future cash flows are discounted to their present value using the pre-tax discount rate that reflects current market assessments on the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs, i.e. operating segments). Non-financial assets other than goodwill that have suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

2.8 Financial assets

2.8.1 Classification

The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets. The Group’s loans and receivables comprise trade and other receivables, finance lease receivables, restricted cash and cash and cash equivalents in the statement of financial position.

2.8.2 Recognition and derecognition

Regular way purchases and sales of financial assets are recognized on the trade date (the date on which the Group commits to purchase or sell the asset). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

2.8.3 Measurement

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement.

Loans and receivables

Loans and receivables are subsequently carried at amortized cost using the effective interest method, less any impairment losses.

34

Notes to the consolidated financial statements

for the year ended March 31, 2018

2.8.4 Impairment of financial assets

The Group assesses, at the end of each reporting period, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Loans and receivables

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred), discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the loss is recognized in the income statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the income statement.

2.9 Fair value

Fair value is determined in accordance with IFRS 13 Fair Value Measurement and is categorized as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly (that is, as prices) or indirectly (that is, derived from prices); and

• Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The carrying amounts for cash and cash equivalents, restricted cash, trade and other receivables (excluding pre-payments), trade and other payables (excluding leave pay) and the current portion of leases approximate fair value due to their short-term nature.

2.10 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.11 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (“FIFO”), actual cost or weighted average cost basis, depending on the nature of the Group entity in which it is held. The cost of finished goods includes the cost of manufacturing as charged by third parties. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

2.12 Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

35

Notes to the consolidated financial statements

for the year ended March 31, 2018

2.13 Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flows include cash on hand, deposits held on call with banks and bank overdrafts; all of which are available for use by the Group and have an original maturity of less than three months. Bank overdrafts are included within current liabilities on the statement of financial position.

2.14 Restricted cash

Restricted cash includes short-term deposits and amounts held that are not highly liquid and is accounted for as loans and receivables.

2.15 Stated capital

Ordinary shares are classified as equity. Incremental external costs directly attributable to the issue of new shares or the exercise of share options are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity instruments (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the parent as treasury shares until the shares are canceled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the parent.

2.16 Trade and other payables

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade and other payables are initially recognized at fair value and are subsequently measured at amortized cost using the effective interest method.

2.17 Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset is recognized at the date of derecognition.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale are presented separately from the other assets in the statement of financial position.

2.18 Taxation

2.18.1. Current and deferred income taxes

The tax expense for the year comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. In addition, to the extent the tax deduction in respect of equity-settled share-based payments exceeds the cumulative share-based payment expense, the tax is recognized directly in equity.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income.

36

Notes to the consolidated financial statements

for the year ended March 31, 2018

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; and neither are deferred tax liabilities nor deferred tax assets accounted for if they arise from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized.

Deferred tax (‘outside basis’ deferred tax) relating to temporary differences arising from investments in subsidiaries is considered as follows:

• Deferred tax liabilities are recognized, except to the extent that the Group is able to control the timing of the reversal of the temporary differences, and it is probable that they will not reverse in the foreseeable future.

• Deferred tax assets are recognized only to the extent that it is probable the temporary differences will reverse in the foreseeable future and there is sufficient taxable profit available against which the temporary differences can be utilized.

Temporary differences arising from investments in subsidiaries in the consolidated financial statements are different from those arising in the Company financial statements. This is because in the Company financial statements, an investment in a subsidiary is carried at cost; whereas the carrying amount in the consolidated financial statements is the consolidated net assets of the subsidiary.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

2.18.2. Dividends tax

Dividend withholding tax is currently payable at a rate of 20% (a rate of 15% was applicable for dividends paid before February 22, 2017) on dividends distributed to shareholders. This tax is not attributable to the Company but rather paid to the tax authorities on behalf of the shareholders through use of regulatory intermediaries, with only the net amount of the dividend being remitted to the shareholder.

2.19 Employee benefits

(a) Short-term benefits

Remuneration to employees in respect of services rendered during a reporting period is recognized as an expense in that reporting period. Provision is made for accumulated leave and for short-term benefits when there is no realistic alternative other than to settle the liability, and there is a formal plan and the amounts to be paid are determined before the time of issuing the financial statements.

(b) Defined contribution plan

The Group operates defined contribution plans. A defined contribution plan is one under which the Group pays a fixed percentage of employees’ remuneration as contributions into a separate fund, and the Group will have no further legal or constructive obligations to pay additional contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans in respect of services rendered during a period are recognized as staff costs when they are due.

37

Notes to the consolidated financial statements

for the year ended March 31, 2018

(c) Short-term incentives — bonus plans

The Group recognizes a liability and an expense for bonuses based on the achievement of defined key performance criteria. An accrual is recognized where the Group is contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and involves payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

2.20 Share-based payments

Equity-settled

The Group operates equity-settled share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments of the Company. The equity instruments that may be issued in terms of the plans include share options, retention shares, performance shares and share appreciation rights. The fair value, determined at grant date, of the employee services received in exchange for the grant of equity instruments is recognized as an expense at Group level with a corresponding credit to equity. The total amount to be expensed is determined by reference to the grant date fair value of the equity instruments granted:

• Including any market performance conditions;

• Excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and

• Including the impact of any non-vesting conditions.

Non-market performance and service conditions are included in the assumptions about the number of equity instruments that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of equity instruments that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding entry to equity.

When equity-settled instruments are exercised, the Company may elect to issue new shares or use treasury shares to settle its resultant obligations. For share options, the proceeds received, net of any directly attributable transaction costs, are credited to stated capital (as there are no par value shares).

The grant by the Company of equity-settled instruments to the employees of subsidiary undertakings in the Group is treated as a capital contribution to those subsidiaries. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity financial statements.

During fiscal 2018, the Company implemented a recharge agreement with its South African subsidiaries, whereby the Company will recharge the relevant subsidiary an amount equal to the market value, at exercise date, of the shares issued to the participants of the plan upon exercise. A recharge asset is recognized in the parent entity financial statements from grant date of the equity-settled instruments for the expected recharge amount based on the proportion of the vesting period that has passed. The expected recharge amount reflects expected attrition and the current share price. The contra entry to the recharge asset is recognized against the relevant investment in subsidiary undertakings as it is considered a return of the afore-mentioned capital contribution. Once the carrying value of an investment in subsidiary undertakings has been reduced to nil, further recharges from that subsidiary are recognized in profit or loss as distributions.

The Group classifies awards issued with settlement alternatives as equity-settled when the Group holds the choice of settlement and there is no past practice of settling in cash. If the counterparty holds the choice of settlement, the award is classified as cash-settled.

38

Notes to the consolidated financial statements

for the year ended March 31, 2018

Cash-settled

For cash-settled share-based payment transactions, the Group measures goods or services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group shall remeasure the fair value of the liability at each reporting date and at the date of settlement, with any changes in fair value recognized in the income statement.

2.21 Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.

Provisions which are expected to be settled in a period greater than 12 months are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as an interest expense.

Provision for the estimated liability on all products under warranty is made on the basis of claims experience.

Provision for the estimated liability for maintenance costs is made on a per unit basis when the obligation to repair occurs.

Provision for the anticipated costs associated with the restoration of leasehold property (decommissioning provision) is based on the Group’s best estimate of those costs required to restore the property to its original condition.

Restructuring provisions are recognized when the Group has developed a detailed formal plan for restructuring and has raised a valid expectation that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring and is recorded in administration and other charges in the income statement.

2.22 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course of the Group’s activities. Revenue mainly includes amounts earned on the sale of hardware units, subscription service sales to customers and installation revenue. Revenue is shown net of discounts, value added tax, returns and after eliminating sales within the Group.

The Group offers certain arrangements whereby the customer can purchase a combination of the products and services as referred to above. Where such multiple element arrangements exist, the amount of revenue allocated to each element is based on the relative fair values of the various elements offered in the arrangement. When applying the relative fair value approach, the fair values of each element are determined based on the current market price of each of the elements when sold separately.

The Group recognizes revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities, as outlined below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Invoicing for the various products and services, when sold separately or as part of a multiple element revenue arrangement, occurs based on the specific contractual terms and conditions.

The Group distributes products to certain small fleet operators and consumers through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with the Group for the product. The obligation to supply the service and the credit risk rests with the Group. The service revenue is recognized when the service is rendered (i.e. on a monthly basis).

The Group also sells hardware to motor vehicle dealerships for fitment into their vehicle trading stock. These dealerships purchase the hardware from the Group and are considered principals because they obtain title to the hardware and bear the risks and rewards of ownership. The buyer of the vehicle then enters into a service-only contract with the Group. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer.

39

Notes to the consolidated financial statements

for the year ended March 31, 2018

The Group distributes products to enterprise fleet customers through dealers. Dealers are considered principals in respect of the sale of hardware and revenue is recognized upon sale of the hardware unit to the dealer. Similar to the relationship with consumers and small fleet customers originated through distributors, the responsibility for providing services rests with the Group and revenue is recognized as the service is rendered.

(a) Subscription revenue

Subscription revenue is recognized over the term of the agreement as it is earned. When contracted services are performed through a number of repetitive acts over the contract period, revenue is recognized on a straight-line basis over the contract period.

(b) Hardware sales

All hardware has value on a standalone basis. Revenue from hardware sales is recognized once the risks and rewards of ownership have transferred.

(c) Driver training and other services

Revenue is recognized at the contractual hourly/daily rate as the training is performed.

(d) Rental revenue

Where hardware is provided as part of a service contract the risk and rewards of ownership do not transfer and service revenue from the rental unit is recognized over the period of the service and included in subscription revenue.

(e) Installation revenue

Revenue earned from the installation of hardware in customer vehicles is recognized once the installation has been completed.

(f) Repair services

Revenue in respect of repair services, which forms part of the monthly subscription, is recognized on a monthly basis over the period of the service arrangement.

2.23 Interest income

Interest income is recognized on a time-proportion basis with reference to the principal amount receivable and the effective interest rate applicable.

2.24 Dividend income

Dividend income is recognized when the right to receive payment is established.

2.25 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

2.25.1. The Group as a lessor

When assets are leased out under a finance lease, the present value of the minimum lease payments is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is recognized as unearned finance income. The method for allocating gross earnings is referred to as the actuarial method. The actuarial method allocates rentals between finance income and repayment of capital in each accounting period in such a way that finance income will emerge as a constant rate of return on the lessor’s net investment in the lease.

Assets leased under operating leases are included under the appropriate category of assets in the statement of financial position. Lease income on operating leases is recognized over the term of the lease on a straight-line basis.

2.25.2. The Group as a lessee

Payments made under operating leases are charged to the income statement on a straight-line basis over the term of the lease.

40

Notes to the consolidated financial statements

for the year ended March 31, 2018

2.26 Dividend distribution

Any dividend distribution to the Company’s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Company’s Board of Directors.

3. Financial risk management

3.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets as it relates to financial risks and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out under policies approved by the Board of Directors. The Board has provided approved formal policies covering specific areas, such as foreign exchange risk as well as cash management and banking facilities.

(a) Market risk

(i) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect to the United States Dollar, the South African Rand, the Euro, the Australian Dollar, the Brazilian Real and the British Pound.

Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities and net investments in foreign operations are denominated in a currency that is not the entity’s functional currency.

The Group has implemented a foreign currency hedging policy to limit the Group’s exposure to fluctuations in foreign currencies. The foreign currency policy reduces exchange rate risk on certain recognized assets and liabilities based on economic hedging principles as opposed to using derivative financial instruments.

The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the assets of the Group’s foreign operations is reduced as a result of assets and liabilities being denominated in the same foreign currencies.

As a result of our cash reserves being held in multiple currencies, the Group has significant foreign currency exposure. A financial risk sensitivity analysis is presented in note 36.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

The Group’s cash flow interest rate risk arises from restricted cash, cash and cash equivalents and the bank overdraft. Bank overdrafts issued at variable rates expose the Group to cash flow interest rate risk, which is partly offset by financial assets held at variable rates (i.e. cash and cash equivalents and restricted cash). At March 31, 2018 and 2017 the Group had no interest-bearing borrowings.

The Group is not exposed to fair value interest rate risk as the Group does not have any fixed rate interest-bearing financial instruments carried at fair value.

Interest rates are constantly monitored and appropriate steps are taken to ensure that the Group’s exposure to interest rate fluctuations is limited. This includes obtaining approval from the Board for all changes to and new borrowing facilities entered into. Refer to note 36 for an interest rate risk sensitivity analysis.

(iii) Price risk

Currently the Group does not have significant price risk. The Group is not exposed to commodity price risk.

41

Notes to the consolidated financial statements

for the year ended March 31, 2018

(b) Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. Credit risk arises from restricted cash, cash and cash equivalents as well as credit exposures to customers. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position, net of impairment losses where relevant.

Credit risk relating to accounts receivable balances is managed by each local entity which is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Group has a policy in place governing the allowance for credit losses.

Cash investments are only placed with reputable financial institutions rated BB and above (note 12). All changes in or new banking arrangements entered into are in line with the Board’s approval framework. Refer to note 10 for further disclosure on credit risk.

(c) Liquidity risk

Liquidity risk is the risk that there will be insufficient funds available to settle obligations when they are due.

The Group has limited liquidity risk due to surplus cash balances and the recurring nature of its income, which generates strong cash inflows. The level of cash balances in the Group is monitored weekly and cash generated from operations is reviewed against planned cash flows on a monthly basis. In addition, working capital reviews are performed monthly.

Surplus cash is invested in interest-bearing current accounts and time deposits that are expected to readily generate cash inflows for managing liquidity risk.

In addition, the Group maintains headroom on its undrawn borrowing facilities to ensure that the Group does not breach borrowing limits on its borrowing facilities. Refer to note 37 for further disclosure on liquidity risk.

3.2 Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern while enhancing the returns for shareholders and ensuring benefits for other stakeholders. The Board of Directors monitors capital by reviewing the net cash position. The Company currently has no long-term borrowings and none of its overdraft facilities, as set out in note 15, were subject to any financial covenants during fiscal 2018 and fiscal 2017.

In order to maintain the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt, where applicable.

4. Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities during fiscal 2018 are outlined below:

(a) Warranty claims

The Group generally offers warranties on its hardware units. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims.

(b) Maintenance provision

The Group, in some instances, offers maintenance services as part of its revenue contracts. Management estimates the related provision for maintenance costs per vehicle when the obligation to repair occurs.

(c) Current and deferred income taxes

The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes. Where applicable tax legislation is subject to interpretation, management makes assessments, based on expert tax advice, of the relevant tax that is likely to be paid and provides accordingly. When the final outcome is determined and there is a difference, this is recognized in the period in which the final outcome is determined.

42

Notes to the consolidated financial statements

for the year ended March 31, 2018

Determining how much tax to recognize when an uncertain tax position exists requires judgement. The Group applies the measurement principle in IAS 12 Income Taxes, when measuring the amount of tax to recognize related to an uncertain tax position. Therefore, the Group measures uncertain tax positions based on a weighted average estimate, taking into account all of the tax uncertainties related to the tax position taken.

The Company's interests in subsidiaries include certain loans denominated in foreign currencies which are repayable by agreement of both parties. Realization of such loans will result in taxable foreign exchange differences in accordance with prevailing legislation in South Africa. Although the Company controls the timing of the reversal of these temporary differences, given the volatility of the South African Rand and based on the Group's current assessment, it is not considered probable that the temporary difference relating to a loan between the Company and a South Africa subsidiary will not reverse in the foreseeable future. Hence, a deferred tax liability has been recognized in respect of these temporary differences (note 18).

The Group applies judgement when recognizing deferred tax assets in respect of tax losses. Deferred tax assets in respect of tax losses are recognized for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. In determining the level of future taxable profit that will be available the Group considers both an entity's historical profitability and estimates of future profitability and recognizes deferred tax for the whole or the part of the temporary difference that is more likely than not to be recovered. Where an entity has incurred historical losses, deferred tax assets are only recognized when the particular entity has shown a reasonable period of starting to return to profitability.

(d) Impairment estimates

The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 2.7. Other assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

For the purposes of assessing impairment, assets are grouped into CGUs at the lowest levels for which there are separately identifiable cash flows. The recoverable amount is based on the CGU’s value-in-use. These calculations require the use of estimates (see notes 6 and 7).

(e) Customer relationships

The useful life applied principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. An increase in churn rates may lead to a reduction in the estimated useful life.

(f) Product development cost

Product development cost directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recorded as intangible assets by the Group when the criteria in note 2.6 have been met. The assessment as to when these criteria have been met is subjective and capitalization has been based on management’s best judgement of facts and circumstances in existence at year-end.

The useful lives of development costs capitalized are reviewed on an at least annual basis. The useful life estimates are based on historical experience with similar assets as well as anticipation of future events such as technological changes, which may impact the useful life. The residual values of product development costs are estimated to be zero.

(g) Provision for impairment of trade receivables

The provision for impairment of trade receivables reflects the Group’s estimates of losses arising from the failure or inability of the Group’s customers to make required payments. The provision is based on the ageing of customer accounts, customer creditworthiness and the Group’s historical write-off experience. Changes to the allowance may be required if the financial condition of the Group’s customers improves or deteriorates. An improvement in financial condition may result in lower actual write-offs. Historically, changes to the estimate of losses have not been material to the Group’s financial position and results.

(h)    Allocation between in-vehicle devices and inventory

The allocation between in-vehicle devices and inventory reflects the Group’s estimates of how units are expected to be sold, thereby it is a significant area of judgement for the Group.

43

Notes to the consolidated financial statements

for the year ended March 31, 2018

5.    Segment information

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

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

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

The Group’s CODM assesses the performance of the operating segments based on Adjusted EBITDA. Adjusted EBITDA is defined as the profit for the period before income taxes, net finance income/(costs) including foreign exchange gains/(losses), depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development costs and intangible assets identified as part of a business combination, share-based compensation costs, transaction costs arising from the acquisition of a business or investigating strategic alternatives, restructuring costs, profits/(losses) on the disposal or impairments of assets or subsidiaries, insurance reimbursements relating to impaired assets and certain litigation costs.

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2018 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	872,646	84,832	957,478	440,900
Europe	115,199	78,061	193,260	65,326
Americas	194,890	32,715	227,605	79,127
Middle East and Australasia	200,241	78,424	278,665	106,835
Brazil	50,735	3,695	54,430	16,747
Total Regional Sales Offices	1,433,711	277,727	1,711,438	708,935
Central Services Organization	904	140	1,044	(149,878	)
Total Segment Results	1,434,615	277,867	1,712,482	559,057
Corporate and consolidation entries	—	—	—	(117,191	)
Total	1,434,615	277,867	1,712,482	441,866

44

Notes to the consolidated financial statements

for the year ended March 31, 2018

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2017 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	772,224	86,945	859,169	344,077
Europe	113,223	64,108	177,331	52,369
Americas	121,462	38,957	160,419	26,804
Middle East and Australasia	199,474	104,976	304,450	91,149
Brazil	32,653	5,158	37,811	9,394
Total Regional Sales Offices	1,239,036	300,144	1,539,180	523,793
Central Services Organization	878	—	878	(127,828	)
Total Segment Results	1,239,914	300,144	1,540,058	395,965
Corporate and consolidation entries	—	—	—	(94,352	)
Total	1,239,914	300,144	1,540,058	301,613

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2016 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	711,208	96,699	807,907	320,466
Europe	110,251	51,736	161,987	35,359
Americas	115,413	41,527	156,940	2,908
Middle East and Australasia	202,163	111,764	313,927	107,279
Brazil	18,063	5,066	23,129	1,931
Total Regional Sales Offices	1,157,098	306,792	1,463,890	467,943
Central Services Organization	1,131	—	1,131	(113,403	)
Total Segment Results	1,158,229	306,792	1,465,021	354,540
Corporate and consolidation entries	—	—	—	(77,325	)
Total	1,158,229	306,792	1,465,021	277,215

The revenue from external parties reported to the Group’s CODM is measured in a manner consistent with that in the income statement. There are no material non-cash items provided to the Group’s CODM other than disclosed in the reconciliation of profit for the year to Adjusted EBITDA below.

During fiscal 2018, impairments to capitalized product development costs of R2.3 million within the Africa segment and R0.4 million within the CSO segment were recognized in profit or loss. During fiscal 2017, impairments to capitalized product development costs of R2.6 million within the Africa segment and R0.5 million within the CSO segment were recognized in profit or loss. During fiscal 2017, the Brazil segment recognized a reversal of impairment in respect of in-vehicle devices of R0.8 million in profit or loss. During fiscal 2016, impairments to in-house software of R2.9 million were recognized in profit or loss within corporate and consolidation entries and the Brazil segment recognized an impairment to in-vehicle devices of R1.9 million in profit or loss.

Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s CODM.

45

Notes to the consolidated financial statements

for the year ended March 31, 2018

A reconciliation of Adjusted EBITDA to profit for the year is disclosed below.

	March 31, 2018		March 31, 2017		March 31, 2016
	R’000		R’000		R’000
Reconciliation of Adjusted EBITDA to profit for the year
Adjusted EBITDA	441,866		301,613		277,215
Add:
Net profit on sale of property, plant and equipment and intangible assets	1,264		—		—
Reversal of impairment(1)	—		791		—
Decrease in restructuring cost provision	741		—		333
Less:
Depreciation(2)	(151,945	)	(98,508	)	(75,037	)
Amortization(3)	(63,926	)	(44,734	)	(47,586	)
Impairment(4)	(2,696	)	(3,166	)	(4,776	)
Share-based compensation costs	(10,352	)	(3,311	)	(5,820	)
Equity-settled share-based compensation costs	(9,000	)	(2,247	)	(7,838	)
Cash-settled share-based compensation costs(5)	(1,352	)	(1,064	)	2,018
Net loss on sale of property, plant and equipment and intangible assets	—		(262	)	(208	)
Increase in restructuring cost provision(6)	—		(14,561	)	—
Transaction costs arising from investigating strategic alternatives(7)	—		—		(5,037	)
Operating profit	214,952		137,862		139,084
Add: Finance (costs)/income — net	(69	)	10,391		150,327
Less: Taxation	(33,690	)	(26,812	)	(106,920	)
Profit for the year	181,193		121,441		182,491

(1) The reversal of impairment of R0.8 million in fiscal 2017 related to in-vehicle devices in the Brazil segment.

(2) Includes depreciation of property, plant and equipment (including in-vehicle devices).

(3) Includes amortization of intangible assets (including capitalized in-house development costs and intangible assets identified as part of a business combination).

(4) In fiscal 2018, asset impairments relate to the impairment of capitalized product development costs of R2.3 million in the Africa segment and R0.4 million in the CSO segment. In fiscal 2017, asset impairments related to the impairment of capitalized product development costs of R2.6 million in the Africa segment and R0.5 million in the CSO segment. In fiscal 2016 includes R2.9 million impairment of in-house software and R1.9 million related to in-vehicle devices.

⁽⁵⁾  Cash-settled share-based payments are described in note 20.

⁽⁶⁾  Restructuring costs incurred in fiscal 2017 are described in note 19.

⁽⁷⁾  Transaction costs incurred in 2016 arising from investigating strategic alternatives are described in note 23.

Revenue generated by the South African-based operating segments of the Group (i.e. Central Services Organization and Africa, excluding East Africa) to its local and foreign-based customers amounted to R931.7 million  (2017: R836.2 million, 2016: R784.5 million) for fiscal 2018, whereas revenue generated by the foreign-based segments of the Group (i.e. Europe, Americas, East Africa, Middle East, Brazil and Australasia) to its local and foreign-based customers amounted to R780.8 million (2017: R703.9 million, 2016: R680.5 million).

Total non-current assets other than financial instruments and deferred tax assets located in South Africa is R615.9 million (2017: R621.0 million, 2016: R533.8 million), and the total of these non-current assets located in foreign countries is R260.8 million (2017: R174.6 million, 2016: R120.8 million). These assets are allocated based on the physical location of the asset

46

Notes to the consolidated financial statements

for the year ended March 31, 2018

and are stated before any inter-company eliminations. The numbers above exclude assets classified as held for sale disclosed in note 6.

47

Notes to the annual financial statements

for the year ended March 31, 2018

6.    Property, plant and equipment

	Property R’000		Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000		In-vehicle devices installed R’000		Total owned R’000
At April 1, 2016
Cost	22,288		51,474		65,160		61,989		216,862		417,773
Accumulated depreciation and impairments	(4,324	)	(33,759	)	(51,186	)	(387	)	(92,533	)	(182,189	)
Net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Year ended March 31, 2017
Opening net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Additions	—		4,712		6,698		158,600		—		170,010
Transfers	—		—		—		(161,532	)	161,532		—
Reversal of impairment (notes 5, 23, 29, 31.2)	—		—		—		—		791		791
Disposals*	—		(181	)	(80	)	—		(370	)	(631	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(6,759	)	(7,785	)	—		(83,511	)	(98,508	)
Currency translation differences	—		(616	)	(487	)	(3,200	)	(8,823	)	(13,126	)
Closing net book amount	17,511		14,871		12,320		55,470		193,948		294,120
At March 31, 2017
Cost	22,288		48,186		58,048		55,470		333,057		517,049
Accumulated depreciation and impairments	(4,777	)	(33,315	)	(45,728	)	—		(139,109	)	(222,929	)
Net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Year ended March 31, 2018
Opening net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Additions	—		4,090		4,630		229,528		—		238,248
Transfers	—		(613	)	613		(232,050	)	232,050		—
Assets classified as held for sale	(17,058	)	—		—		—		—		(17,058	)
Impairment (notes 5, 23, 29, 31.2)	—		(6	)	(3	)	—		—		(9	)
Disposals**	—		(606	)	(165	)	—		(1,165	)	(1,936	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(5,237	)	(6,772	)	—		(139,483	)	(151,945	)
Currency translation differences	—		(280	)	(253	)	(2,777	)	(24,072	)	(27,382	)
Closing net book amount	—		12,219		10,370		50,171		261,278		334,038

48

Notes to the annual financial statements

for the year ended March 31, 2018

	Property R’000	Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000	In-vehicle devices installed R’000		Total owned R’000
Year ended March 31, 2018
Cost	—	47,066		46,735		50,171	470,545		614,517
Accumulated depreciation and impairments	—	(34,847	)	(36,365	)	—	(209,267	)	(280,479	)
Net book amount	—	12,219		10,370		50,171	261,278		334,038

* The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2017

included R5.2 million relating to plant, equipment, vehicles and other, R10.1 million relating to computer and radio equipment and R31.9 million relating to

in-vehicle devices installed.

** The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2018

included R1.2 million relating to plant, equipment, vehicles and other, R14.7 million relating to computer and radio equipment and R63.9 million relating to

in-vehicle devices installed.

Additions of R238.2 million made in fiscal 2018 include non-cash additions of uninstalled in-vehicle devices of R1.4 million relating to the Central Services Organization segment. R1.9 million was paid in the current fiscal year which related to uninstalled in-vehicle devices which were accrued and accounted for as non-cash additions in fiscal 2017 by the Central Services Organization. Additions of R170 million made in 2017 included non-cash additions of uninstalled in-vehicle devices of R1.7 million and plant, equipment, vehicles and other of R0.2 million relating to the Central Services Organization segment. R12.1 million was paid in fiscal 2017 which related to uninstalled in-vehicle devices which were accrued and accounted for as non-cash additions in fiscal 2016 by the Central Services Organization.

Depreciation expense of R141.6 million (2017: R85.8 million, 2016: R60.2 million) has been charged to cost of sales. The remainder has been included in administration and other charges in the income statement.

During fiscal 2017, a reversal of impairment of R0.8 million in respect of in-vehicle devices which were impaired in fiscal 2016 was recognized in profit or loss by the Brazil segment. The improvement in trading conditions in the Brazil segment resulted in the reassessment of its recoverable amount in fiscal 2017. In fiscal 2017 the assessment indicated that the recoverable amount was higher than its carrying value which led to the aforementioned impairment reversal.

Assets classified as held for sale

The assets classified as held for sale relate to the property held by the CSO segment. No impairment loss was recognized on reclassification of the property as held for sale as the fair value (estimated based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount. Management anticipate that the sale will be completed within 12 months.

49

Notes to the annual financial statements

for the year ended March 31, 2018

	March 31,  2018 R’000	March 31,  2017 R’000
Non-current assets
Property, plant and equipment	334,038	294,120
Current assets
Assets classified as held for sale	17,058	—
Total property, plant and equipment	351,096	294,120

50

Notes to the consolidated financial statements

for the year ended March 31, 2018

7.    Intangible assets

	Goodwill R’000		Patents and trademarks R’000		Customer relationships R’000		Product development costs R’000		Computer software, technology, in-house software  and other R’000		Total R’000
At April 1, 2016
Cost	654,329		3,036		40,165		206,836		93,801		998,167
Accumulated amortization and impairments	—		(1,413	)	(10,180	)	(76,875	)	(62,848	)	(151,316	)
Net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Year ended March 31, 2017
Opening net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Additions	—		119		—		78,020		41,269		119,408
Disposals*	—		—		—		—		—		—
Amortization charge (notes 23 and 31.2)	—		(816	)	(6,762	)	(28,847	)	(8,309	)	(44,734	)
Impairment loss (notes 5, 23, 29 and 31.2)	—		—		—		(3,166	)	—		(3,166	)
Currency translation differences	(35,419	)	—		—		(179	)	(861	)	(36,459	)
Closing net book amount	618,910		926		23,223		175,789		63,052		881,900
At March 31, 2017
Cost	618,910		3,155		40,165		265,637		130,131		1,057,998
Accumulated amortization and impairments	—		(2,229	)	(16,942	)	(89,848	)	(67,079	)	(176,098	)
Net book amount	618,910		926		23,223		175,789		63,052		881,900
Year ended March 31, 2018
Opening net book amount	618,910		926		23,223		175,789		63,052		881,900
Additions	—		31		5,300		65,342		23,965		94,638
Transfers	—		—		—		(365	)	365		—
Disposals**	—		—		—		(1,188	)	—		(1,188	)
Amortization charge (notes 23 and 31.2)	—		(513	)	(7,516	)	(37,639	)	(18,258	)	(63,926	)
Impairment loss (notes 5, 23, 29, 31.2)	—		—		—		(2,687	)	—		(2,687	)
Currency translation differences	(7,266	)	—		(356	)	(235	)	(2,353	)	(10,210	)
Closing net book amount	611,644		444		20,651		199,017		66,771		898,527
At March 31, 2018
Cost	611,644		1,031		44,990		312,338		145,387		1,115,390
Accumulated amortization and impairments	—		(587	)	(24,339	)	(113,321	)	(78,616	)	(216,863	)
Net book amount	611,644		444		20,651		199,017		66,771		898,527

* The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2017 year included R16.4 million relating to product development costs andR1.7 million relating to computer software, technology, in-house software and other.

51

Notes to the consolidated financial statements

for the year ended March 31, 2018

** The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2018 year included R2.2 million relating to patents and trademarks, R13.9 million relating to product development costs and R4.3 million relating to computer software, technology, in-house software and other.

In fiscal 2018, staff costs of R46.4 million (2017: R54.6 million, 2016: R45.2 million) have been capitalized to product development costs. In fiscal 2018, no staff costs were capitalized to in-house software (2017: R1.6 million, 2016: R1.3 million).

Additions of R94.6 million were made during fiscal 2018. In addition, R1.9 million relating to capitalized development costs and R3.1 million related to computer software, technology, in-house software and other intangibles were paid in the current fiscal year which were accrued and accounted for as non-cash additions in 2017. Additions of R119.4 million made during 2017 included non-cash additions of R5.0 million as described above. R0.9 million relating to capitalized development costs were paid in fiscal 2017 which were accrued and accounted for as non-cash additions in 2016.

Amortization expense of R44.1 million (2017: R30.1 million, 2016: R24.9 million) has been charged to cost of sales. The remainder has been included in administration and other charges in the income statement.

During fiscal 2018, impairments to capitalized product development costs of R0.4 million within the CSO segment and R2.3 million within the Africa segment were recognized in profit or loss. During fiscal 2017, impairments to capitalized product development costs of R0.5 million within the CSO segment and R2.6 million within the Africa segment were recognized in profit or loss. The impairment losses have been included in administration and other charges in the income statement.

Included in product development costs is product development assets in progress with a net book amount of R32.1 million (2017: R51.1 million, 2016: R43.6 million). Computer software, technology, in-house software and other included no internally generated in-house software in progress (2017: R42.8 million, 2016: R18.3 million).

Change in estimate of useful lives of product development costs capitalized

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

Year ended March 31,
	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028
R’000	1,694	611	748	457	334	303	158	106	106	27

Impairment tests for goodwill

Goodwill is allocated to the Group’s CGUs identified within its operating segments. It should be noted that, as disclosed in note 5, while CSO is reported as a reportable segment excluding any inter-company revenue and related costs, it remains a CGU, as there remains an active market for the output produced by CSO. The impairment tests for goodwill have been performed on the same basis as the previous financial years.

A summary of the goodwill at operating segment level is presented below:  

	March 31,  2017 R’000	Foreign currency translation differences R'000		March 31,  2018 R’000
Central Services Organization	103,119	—		103,119
Europe	109,610	(986	)	108,624
Middle East and Australasia	53,131	(6,280	)	46,851
Africa	353,050	—		353,050
Total	618,910	(7,266	)	611,644

52

Notes to the consolidated financial statements

for the year ended March 31, 2018

The recoverable amounts of all CGUs are determined based on value-in-use calculations, which use pre-tax cash flow projections based on approved financial budgets covering a three to five-year period. A five-year period was used to ensure that in respect of the Europe and Middle East and Australasia segments, stable cash flows are used for purposes of calculating terminal values included in the value-in-use calculations. These cash flows are based on the current market conditions and near-term expectations.

The key assumptions used for the value-in-use calculations are as follows:

2018	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.1	17.3	9.2	13.3
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.4	5.4	2.2	2.9

2017	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.6	18.6	9.8	16.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.5	5.5	2.3	2.5

The discount rates were calculated using the capital asset pricing model. These rates reflect specific risks relating to the relevant CGUs. The growth rate has been determined based on the expected long-term inflation outlook.

Goodwill sensitivity

Given the significant headroom that exists in the CGUs, management believes that a reasonable change in assumptions would not result in any goodwill impairments.

8.    Finance lease receivable

	March 31,  2018 R’000	March 31,  2017 R’000
Total finance lease receivable	—	162
Short-term portion receivable within 12 months	—	140
Long-term portion receivable after 12 months	—	22

The Group had entered into certain finance lease arrangements with customers to supply fleet management products and services. The terms of the leases varied between 24 and 36 months and the leases were denominated in Euro. The unguaranteed residual values of the assets leased under finance lease were considered negligible.  

53

Notes to the consolidated financial statements

for the year ended March 31, 2018

At March 31, 2017 the finance lease receivables were neither past due nor impaired and were fully settled at March 31, 2018. In determining the recoverability of the finance lease receivables, the Group considered any change in the credit quality of the finance lease receivable from the date the leases were initially entered into until the end of the fiscal 2017 reporting year.

	March 31,  2018 R’000	March 31,  2017 R’000
Gross finance lease receivable – minimum lease payments:
Not later than one year	—	145
Later than one year but not later than five years	—	22
	—	167
Unearned finance income	—	(5	)
Net investment in finance leases	—	162

The net investment in finance leases may be analyzed as follows:

	March 31,  2018 R’000	March 31,  2017 R’000
Not later than one year	—	140
Later than one year but not later than five years	—	22
Net investment in finance leases	—	162

9.    Inventory

	March 31,  2018 R’000	March 31,  2017 R’000
Inventory – finished goods	57,013	26,449

During the current year an amount of R9.3 million (2017: R10.0 million) was recognized as a charge in cost of sales as a result of the write-down of inventory to net realizable value (notes 23 and 31.2).

10.    Trade and other receivables

	March 31,  2018 R’000		March 31,  2017 R’000
Trade receivables	248,878		220,402
Less: Provision for impairment of trade receivables	(17,523	)	(8,783	)
Trade receivables — net	231,355		211,619
Pre-payments	27,240		24,772
Sundry debtors	27,811		24,185
	286,406		260,576

54

Notes to the consolidated financial statements

for the year ended March 31, 2018

The ageing of trade receivables at the reporting date is as follows: 

	Gross R’000	Provision for impairment R’000		Net R'000
2018
Not past due	145,346	(334	)	145,012
Past due by 1 to 30 days	51,844	(2,518	)	49,326
Past due by 31 to 60 days	24,763	(3,732	)	21,031
Past due by more than 60 days	26,925	(10,939	)	15,986
Total	248,878	(17,523	)	231,355

	Gross R’000	Provision for impairment R’000		Net R'000
2017
Not past due	129,121	(920	)	128,201
Past due by 1 to 30 days	54,340	(1,350	)	52,990
Past due by 31 to 60 days	20,999	(1,854	)	19,145
Past due by more than 60 days	15,942	(4,659	)	11,283
Total	220,402	(8,783	)	211,619

The trade receivables above, which are past due and not impaired, relate to a number of independent customers for whom there is no recent history of default. As at March 31, 2018, sundry debtors are neither past due nor impaired.

The carrying amounts of trade and other receivables are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000
South African Rand	98,148	80,037
Australian Dollar	24,016	21,754
Brazilian Real	19,129	15,684
Euro	28,192	24,411
Great Britain Pound	18,883	18,535
United Arab Emirates Dirham	2,578	3,354
United States Dollar	91,105	94,441
Other	4,355	2,360
	286,406	260,576

55

Notes to the consolidated financial statements

for the year ended March 31, 2018

Movements in the Group’s provision for impairment of trade and other receivables are as follows:

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(13,346	)	(12,438	)
Increase in provision for impairment (note 31.2)	(24,143	)	(17,713	)
Receivables written off during the year as irrecoverable — net	19,354		16,429
Foreign currency translation differences	612		376
Closing balance	(17,523	)	(13,346	)
The Group’s provision for impairment of trade and other receivables includes:
Trade receivables	(17,523	)	(8,783	)
Sundry debtors	—		(4,563	)
Closing balance	(17,523	)	(13,346	)

The creation of the provision for impairment of trade and other receivables is included in administration and other charges in the income statement. In determining the recoverability of a receivable, the Group considers any change in the credit quality of the receivable from the date credit was initially granted until the end of the reporting year. Amounts provided for are generally written off when there is no expectation of recovering the amount.

A single sundry debtor of R4.6 million which was past due and fully impaired in fiscal 2017 was recovered in fiscal 2018.

Trade receivables of R17.9 million (2017: R11.1 million) are pledged as security for the Group’s overdraft facilities (note 12, 15).

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. Other than 11% of the gross receivable balance relating to two debtors at the end of fiscal 2018 (2017: 11% of the gross receivable balance relating to two debtors), the Group has no significant concentration of credit risk, due to its spread of customers across various operations and geographical locations. The Group does not hold any collateral as security.

11.    Restricted cash

	March 31,  2018 R’000	March 31,  2017 R’000
Cash securing guarantee issued in terms of the Mobile Telephone Networks Proprietary Limited incentive agreement (denominated in South African Rand)	1,000	1,000
Cash securing guarantees issued in respect of lease agreements entered into (denominated in South African Rand)	393	393
Tax refund received erroneously (denominated in South African Rand)	7,188	—
Cash securing guarantees issued in respect of products sold by MiX Telematics Europe Limited (denominated in Euro)	1,447	1,422
Cash securing guarantees issued in respect of MiX Telematics Middle East FZE relating to employee visas in the UAE (denominated in UAE Dirham)	3,616	4,192
Cash held for purposes of distribution to MiX Telematics Enterprise BEE Trust and MiX Telematics Fleet Support Trust beneficiaries (denominated in South African Rand)	6,257	5,118
Cash securing guarantees issued in respect of property lease agreements entered into by MiX Telematics Australasia (denominated in Australian Dollar)	1,034	1,143
	20,935	13,268

56

Notes to the consolidated financial statements

for the year ended March 31, 2018

12.    Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flow comprise the following amounts which are included in the statement of financial position:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Cash and cash equivalents	308,258		375,782		877,136
Bank overdraft (note 15)	(17,720	)	(19,449	)	(16,374	)
	290,538		356,333		860,762

The credit quality of cash and cash equivalents that are not impaired can be assessed by reference to external credit ratings, based on the Fitch rating scales, as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Cash and cash equivalents
AA	110,854	197,873	743,600
A	82,738	78,605	48,757
BBB	33,962	99,304	84,779
BB	80,704	—	—
	308,258	375,782	877,136

The carrying amounts of net cash and cash equivalents are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Great Britain Pound	37,209	48,540	45,017
Brazilian Real	3,787	2,987	3,625
South African Rand	171,223	100,721	87,675
Australian Dollar	22,912	19,574	25,451
United States Dollar	48,354	178,768	698,166
Euro	4,300	4,649	(55	)
Other	2,753	1,094	883
	290,538	356,333	860,762

57

Notes to the consolidated financial statements

for the year ended March 31, 2018

13. Stated capital

	Number of shares 000s		Stated capital R’000
At April 1, 2016	759,138		1,320,955
Shares issued in relation to share options exercised	5,125		7,072
Share repurchase from Imperial Corporate Services Proprietary Limited	(200,828	)	(473,682	)
Balance at March 31, 2017	563,435		854,345
Shares issued in relation to share options and share appreciation rights exercised	6,001		10,726
Share repurchase under the Share Repurchase Program	(5,016	)	(18,666	)
Balance at March 31, 2018	564,420		846,405

Thetotal authorized number of ordinary shares at the end of the financial year amounted to 1 billion shares (2017: 1 billion) with no par value. All issued shares are fully paid up and carry one vote per share and the right to dividends. There were no changes to the authorized number of ordinary shares during the current or prior financial year.

In terms of a special resolution approved in fiscal 2014 a new class of no par value shares, consisting of 100 million preference shares, was created. No preference shares have been issued to date.

Share repurchases

Fiscal 2018

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

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

	Total number of shares repurchased 000s	Average price paid per share (1) R	Shares canceled under the share repurchase program 000s	Total value of shares purchased as part of publicly announced program R’000	Maximum value of shares that may yet be purchased under the program R’000
June 2017	5,015,660	3.72	5,015,660	18,666	251,334
	5,015,660		5,015,660	18,666	251,334

⁽¹⁾ Including transaction costs.

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

Fiscal 2017

On April 29, 2016, the Company entered into an agreement (the “share repurchase agreement”) with Imperial Holdings Limited (“Imperial Holdings”) and Imperial Corporate Services Proprietary Limited (“Imperial Corporate Services”), a wholly owned subsidiary of Imperial Holdings, to repurchase all 200,828,260 of the Company’s shares held by Imperial Corporate Services (the “repurchase shares”) at R2.36 per repurchase share, for an aggregate repurchase consideration of

58

Notes to the consolidated financial statements

for the year ended March 31, 2018

R474.0 million (the “repurchase”). At the general meeting held on August 1, 2016, shareholders of the Company approved the repurchase in terms of the JSE Listings Requirements and the South African Companies Act, No. 71 of 2008, at which point the transaction was accounted for in terms of IFRS. The repurchase was implemented on August 29, 2016. Subsequent to the repurchase, the shares were delisted and now form part of the authorized unissued share capital of the Company.

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

	R’000
Aggregate repurchase consideration	473,955
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 25)	(3,222	)
Transaction costs capitalized	2,949
Total share repurchase costs	473,682

Equity incentive plans

The Group has issued share incentives under two equity incentive plans, the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), to directors and certain key employees within the Group. With the introduction of the LTIP, which was approved by shareholders in terms of an ordinary resolution during 2014, no further awards will be made in terms of the TeliMatrix Group Limited Executive Incentive Scheme going forward.

The LTIP is now being used to issue share incentives to employees and executive members within the Group. The LTIP provides for three types of grants to be issued, namely performance shares, retention shares or share appreciation rights (“SARs”). To date only SARs have been issued.

The table below indicates the total number of awards under the LTIP which are available for issue:

	Number of awards
Reconciliation of number of awards available for issue under the LTIP
Maximum number of awards that may be issued during the life of the LTIP	120,000,000
Issued in fiscal 2015	(2,900,000	)
Number of awards available for issue as at March 31, 2015	117,100,000
Issued in fiscal 2016	(11,835,000	)
Number of awards available for issue as at March 31, 2016	105,265,000
Issued in fiscal 2017	(13,950,000	)
Number of awards available for issue as at March 31, 2017	91,315,000
Issued in fiscal 2018	(10,000,000	)
Number of awards available for issue as at March 31, 2018	81,315,000

Both equity incentive plans are discussed in further detail in the sections that follow.

Share options under the TeliMatrix Group Executive Incentive Scheme

Share options have been granted to directors and certain key employees within the Group. The exercise price of the options granted is equal to the weighted average market value of ordinary shares for the 20 days preceding the date of the grant. The options vest in tranches of 25% per annum, commencing on the second anniversary of the grant date and expire 6 years after the grant date. In addition to these vesting periods, the vesting of the share options granted are conditional on certain performance conditions being met, namely the share price on the associated measurement date being in excess of the target, after being reduced by the aggregate amount of dividends paid, or an annual total shareholder return in excess of 10% and 5%, taking into account any dividends paid during the vesting period, being achieved. The Group has no legal or constructive obligation to repurchase or settle the options in cash.

59

Notes to the consolidated financial statements

for the year ended March 31, 2018

Movements in the total number of share options outstanding and their related weighted average exercise prices are as follows: 

	Weighted average exercise price 2018 cents per share	Number  of options 2018 000s		Weighted average exercise price 2017 cents per share	Number  of options 2017 000s
Outstanding at the beginning of the year	266	14,613		235	28,913
Exercised	195	(5,513	)	138	(5,125	)
Forfeited	—	—		312	(5,875	)
Expired	—	—		112	(3,300	)
Outstanding at the end of the year	309	9,100		266	14,613
Exercisable at the end of the year	285	7,350		217	8,825

The weighted average remaining contractual life on share options outstanding at year-end is 1.31 years (2017: 1.87 years).

Options exercised in 2018 resulted in 5,512,500 shares (2017: 5,125,000 shares) being issued at a weighted average exercise price of 195 cents per share (2017: 138 cents per share). The related weighted average share price at the time of exercise was608 cents per share (2017: 307 cents per share).

Refer to note 23 for the total expense recognized in fiscal year 2018 in respect of equity-settled instruments granted to employees and directors.

Share options outstanding at the end of the fiscal year have the following exercise prices: 

					March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Exercise price
5%	September 13, 2011	September 13, 2017	130	cents	—	263
10%	January 3, 2012	January 3, 2018	154	cents	—	2,750
10%	November 7, 2012	November 7, 2018	246	cents	5,600	8,100
10%	September 10, 2014	September 10, 2020	411	cents	3,500	3,500
					9,100	14,613

Noshare options were granted during fiscal 2018 or fiscal 2017 under this scheme.

Share appreciation rights

Under the LTIP, SARs may be issued to certain directors and key employees. The award price of the SARs granted is equal to the closing market value of ordinary shares on the day preceding the date of the grant. The SARs granted vest in tranches of 25% per annum, commencing on the second anniversary of the grant date and expire six years after the grant date. In addition to these vesting periods, the vesting of the SARs granted are conditional on a performance condition of an annual total shareholder return in excess of 10%, taking into account any dividends paid during the vesting period, being achieved.

Upon exercise of the SARs by participants, the Group will settle the value of the difference between the award and grant price by delivering shares, alternatively as a fall back provision only, by settling the value in cash.

60

Notes to the consolidated financial statements

for the year ended March 31, 2018

Movements in the total number of SARs outstanding and their related weighted average award prices are as follows:

	Weighted average award price 2018 cents per share	Number of options 2018 000s		Weighted average award price 2017 cents per share	Number of options 2017 000s
Outstanding at the beginning of the year	309	20,810		311	14,435
Granted on May 30, 2016	—	—		294	9,950
Granted on November 24, 2016	—	—		328	4,000
Granted on May 30, 2017	346	10,000		—	—
Exercised	310	(1,709	)	—	—
Forfeited	314	(1,062	)	303	(7,575	)
Outstanding at the end of the year	322	28,039		309	20,810
Exercisable at the end of the year	313	1,306		305	725

The weighted average remaining contractual life on SARs outstanding at year-end is 4.38 years (2017: 4.88).

SARs exercised in 2018 resulted in 1,708,750 awards (2017: Nil) being issued at a weighted average exercise price of 310 cents per award (2017: nil). The related weighted average share price at the time of exercise was 464 cents per award (2017: nil).

No SARs were exercised by Group executives during fiscal 2018 and fiscal 2017.

SARs outstanding at the end of the fiscal year have the following award prices:

				March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Award price
10%	December 16, 2014	December 16, 2020	305	—	725
10%	August 31, 2015	August 31, 2021	313	7,764	9,160
10%	May 30, 2016	May 30, 2022	294	6,525	6,925
10%	November 24, 2016	November 24, 2022	328	4,000	4,000
10%	May 30, 2017	May 30, 2023	346	9,750	—
				28,039	20,810

The weighted average fair value of SARs granted during fiscal 2018 and fiscal 2017 was determined using a combination of the Monte Carlo Simulation option pricing model and the Binomial Tree option pricing model. The key drivers and assumptions input into the valuation models used to determine these values are disclosed below.

The volatility was calculated using a mixture of the Company's historical data as well as the share data of comparable companies for grants made in all financial years preceding 2018 and the Company's historical share data for grants made in the current year.

61

Notes to the consolidated financial statements

for the year ended March 31, 2018

The salient details of SARs granted during fiscal 2018 are provided in the table below: 

	Total shareholder return
Grant date	May 30, 2017
Fair value (cents per share)	128.4
Award price (cents per share)	346
JSE share price on grant date (cents per share)	345
Expiry date	May 30, 2023
Performance conditions
– Total shareholder return of (%)	10.0
Remaining contractual life at March 31, 2018	5.17
Valuation assumptions and drivers
Volatility (%)	41.5
Anticipated forfeiture rate (%)	5.0
Anticipated dividend yield (%)	3.84
Annual risk-free interest rate (%)	7.51

The salient details of SARs granted during fiscal 2017 are provided in the table below:

	Total shareholder return	Total shareholder return
Grant date	November 24, 2016	May 30, 2016
Fair value (cents per share)	131.5	111.9
Award price (cents per share)	328	294
JSE share price on grant date (cents per share)	328	289
Expiry date	November 24, 2022	May 30, 2022
Performance conditions
– Total shareholder return of (%)	10.0	10.0
Remaining contractual life at March 31, 2018	4.65	4.17
Valuation assumptions and drivers
Volatility (%)	41.8	40.3
Anticipated forfeiture rate (%)	5.0	5.0
Anticipated dividend yield (%)	2.98	3.57
Annual risk-free interest rate (%)	8.20	8.74

Refer to note 23 for the total expense recognized in fiscal 2018 in respect of equity-settled instruments granted to employees and directors.

62

Notes to the consolidated financial statements

for the year ended March 31, 2018

Group executives held the following share options outstanding at March 31, 2018 (summarized by grant date):

	November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	2,500		—		2,500
C Tasker(1)	2,000		1,500		3,500
G Pretorius	1,100		1,000		2,100
C Lewis	—		1,000		1,000
	5,600		3,500		9,100
Option strike price (cents per share)	246		411
JSE share price on grant date (cents per share)	300		411
Expiry date	November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

Group executives held the following SARs outstanding at March 31, 2018 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		May 30, 2017 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		1,100		3,100
C Tasker(1)	750		750		875		1,100		3,475
P Dell(1)	200		200		875		1,100		2,375
G Pretorius	500		500		875		1,100		2,975
C Lewis	500		500		875		1,100		2,975
	2,950		2,950		3,500		5,500		14,900
JSE share price on grant date (cents per share)	319		289		328		345
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022		May 30, 2023
Performance condition
Minimum shareholder return of	10	%	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

No options were held by retired executives as at March 31, 2018.

63

Notes to the consolidated financial statements

for the year ended March 31, 2018

The following share options were exercised by Group executives during fiscal 2018:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
C Tasker	November 29, 2017	2,000,000	January 3, 2012	154	10	%	628
G Pretorius	August 8, 2017	400,000	November 7, 2012	246	10	%	451
G Pretorius	November 22, 2017	750,000	January 3, 2012	154	10	%	648
C Lewis	March 2, 2018	1,500,000	November 7, 2012	246	10	%	600

Group executives held the following share options outstanding at March 31, 2017 (summarized by grant date):

	January 3, 2012 000s		November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	—		2,500		—		2,500
C Tasker(1)	2,000		2,000		1,500		5,500
G Pretorius	750		1,500		1,000		3,250
C Lewis	—		1,500		1,000		2,500
	2,750		7,500		3,500		13,750
Option strike price (cents per share)	154		246		411
JSE share price on grant date (cents per share)	160		300		411
Expiry date	January 3, 2018		November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

64

Notes to the consolidated financial statements

for the year ended March 31, 2018

Group executives held the following SARs outstanding at March 31, 2017 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		2,000
C Tasker(1)	750		750		875		2,375
P Dell(1)	200		200		875		1,275
G Pretorius	500		500		875		1,875
C Lewis	500		500		875		1,875
	2,950		2,950		3,500		9,400
JSE share price on grant date (cents per share)	319		289		328
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

In respect of R Botha who retired on May 31, 2015, the Board had resolved, as permitted by the share plan rules, that the options not exercised by this former executive prior to the retirement date could be exercised upon vesting before the expiry date of the option.

No options were held by retired executives as at March 31, 2017.

The following share options were exercised by Group executives during fiscal 2017:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
M Pydigadu(1)	May 30, 2016	600,000	June 4, 2010	112	10	%	289
M Pydigadu(1)	November 07, 2016	750,000	November 07, 2012	246	10	%	323
S Joselowitz	June 03, 2016	1,500,000	June 4, 2010	112	10	%	301
B Horan(2)	June 07, 2016	250,000	January 3, 2012	154	10	%	300

⁽¹⁾ Resigned as at February 9, 2017.

⁽²⁾ Resigned as at September 30, 2016.

The following share options were exercised during fiscal 2017 by retired Group executives:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
R Botha	June 1, 2016	1,375,000	June 4, 2010	112	10	%	308

65

Notes to the consolidated financial statements

for the year ended March 31, 2018

14.    Other reserves

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(4,370	)	74,262
Foreign currency translation*	(60,576	)	(80,879	)
– Movement for the year — Gross	(60,339	)	(80,820	)
– Tax effect of movement	(237	)	(59	)
Share-based payments (notes 23 and 31.2)	14,833		2,247
– Transaction	9,000		2,247
– Excess tax benefit	5,833		—
Transaction with non-controlling interests**	(1,501	)	—
Closing balance	(51,614	)	(4,370	)
Foreign currency translation*	42,226		102,802
Reserve on transaction with non-controlling interest**	(138,939	)	(137,438	)
Share-based payments	45,099		30,266
Closing balance	(51,614	)	(4,370	)

* T​he foreign currency translation reserve mainly results from the translation of the Group's foreign subsidiaries for

which it is considered probable that temporary differences will not reverse in the foreseeable future. Refer to note 18

for details about deferred taxes recognized for related temporary differences.

** During fiscal 2008, the Group acquired a non-controlling equity interest held by a minority shareholder in one of its

subsidiaries in exchange for a share consideration. R137.9 million (2017: R137.9 million) of the reserve represents

the difference between the consideration paid and the Group’s share in the net asset value of the subsidiary acquired

which has been recorded in equity. The reserve on transaction with non-controlling interests represented the transfer

of Edge Gestao Empresarial Ltda's (“Edge”) share of the historical losses of MiX Telematics Servicos De Tlematria

E Rastremento De Veiculos Do Brazil Limitada (“MiX Brazil”) from distributable reserves to non-controlling interests.

R0.5 million, representing a reduction of the reserve, relates to the transaction with Edge in fiscal 2015, whereby Edge

increased its non-controlling interest in MiX Brazil from 0.0025% to 5.0%. R1.5 million of the non-controlling interest

relates to the acquisition of Edge's 5% interest in MiX Brazil by MiX Investments (Proprietary) Limited (“MiX Investments”)

during fiscal 2018 (note 20).

15.    Borrowings

The Group and its subsidiaries have unlimited borrowing capacity as specified in their respective Memorandums of Incorporation.

Other than bank overdrafts, no new borrowings were raised by the Group during fiscal 2018 and fiscal 2017.

	Interest rate	March 31,  2018 R’000	March 31,  2017 R’000
Undrawn borrowing facilities at floating rates include:
— Standard Bank Limited:
Overdraft	Prime less 1.2%	52,280	50,551
Vehicle and asset finance	Prime less 1.2%	8,500	8,500
— Nedbank Limited overdraft	Prime less 2%	10,000	10,000
		70,780	69,051

66

Notes to the consolidated financial statements

for the year ended March 31, 2018

The Standard Bank and Nedbank facilities have no fixed renewal date and are repayable on demand.

Included in the bank overdraft (note 12) is the following Standard Bank Limited facility which was secured by the following at March 31, 2018 and at March 31, 2017:

•cross suretyships between the following Group companies:

– MiX Telematics Africa Proprietary Limited;

– MiX Telematics International Proprietary Limited; and

– MiX Telematics Limited.

• an unrestricted cession of book debts by the following entities:

– MiX Telematics Limited; and

– MiX Telematics International Proprietary Limited.

The facility from Nedbank Limited is unsecured.

16.    Trade and other payables

	March 31,  2018 R’000	March 31,  2017 R’000
Trade payables	98,094	79,892
Accruals	176,963	152,323
Revenue received in advance	66,120	62,990
Value added taxes	6,646	6,624
Other	2,696	7,281
	350,519	309,110

17.     Retirement benefits

It is the policy of the Group to provide retirement benefits to all its South African, United Kingdom, United States, Brazilian, Romanian and Australian employees. All these retirement benefits are defined contribution plans and are held in separate trustee-administered funds. These plans are funded by members as well as company contributions. The South African plan is subject to the Pension Funds Act of 1956, the UK plan is subject to the United Kingdom Pensions Act 2008 and the Australian plan is subject to the Superannuation Guarantee Administration Act of 1992. In Brazil, the Group contributes to a mandatory state social contribution plan known as Regime Geral de Previdência Social (“RGPS”). In Romania there is a mandatory social security contribution paid to the state budget, as defined by the Pension Law (Law 263/2010) and the Fiscal Code (Law 227/2015). For the United States employees, a voluntary Internal Revenue Service section 401(k) tax-deferred defined contribution scheme is offered. The full extent of the Group’s liability, in respect of the retirement benefits offered, is the contributions made, which are charged to the income statement as they are incurred. The total Group contribution to such schemes in 2018 was R27.1 million (2017: R29.4 million, 2016: R27.1 million) (note 23).

67

Notes to the consolidated financial statements

for the year ended March 31, 2018

18.    Deferred tax

	March 31,  2018 R’000		March 31,  2017 R’000
Deferred tax liabilities
Capital allowances for tax purposes	42,828		33,616
Intangible assets	57,084		49,807
Pre-payments	2,857		2,815
Deferred foreign currency gains	33,858		61,616
Other	887		1,106
Gross deferred tax liabilities	137,514		148,960
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax liabilities	82,658		100,067
Deferred tax assets
Revenue received in advance	15,730		14,304
Capital allowances for tax purposes	30,556		22,107
Provisions, accruals and lease straight-lining	33,910		28,731
Assessable losses	5,892		10,736
Share-based payments	8,187		—
Other	1,298		1,145
Gross deferred tax assets	95,573		77,023
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax assets	40,717		28,130
Net deferred tax liability	(41,941	)	(71,937	)
The gross movement in net deferred tax assets/(liabilities) is as follows:
Beginning of the year	(71,937	)	(90,976	)
Foreign currency translations	(578	)	(878	)
Credited/(charged) to equity (note 14)	5,596		(59	)
Income statement charge (note 28)	24,978		19,976
End of the year	(41,941	)	(71,937	)

Deferred foreign currency gains

Deferred foreign currency gains comprise of taxable temporary differences arising on investments in subsidiaries in respect of which deferred tax has been recognized.

Recognition of deferred tax

Deferred tax at year-end has been recognized using the following corporate tax rates:

• South Africa 28% (2017: 28%)

• Australia 30% (2017: 30%)

• Brazil 34% (2017: 34%)

• Romania 16% (2017: 16%)

• Thailand 20% (2017: 20%)

• Uganda 30% (2017: 30%)

68

Notes to the consolidated financial statements

for the year ended March 31, 2018

• United Arab Emirates 0% (2017: 0%)

• United Kingdom 19% (2017: 19%)

• United States of America 27% (2017: 34%)

Deferred tax assets are recognized for tax losses carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. The Group did not recognize deferred tax assets of R61.3 million (2017: R34.3 million) in respect of losses amounting to R237.3 million (2017: R133.8 million) at year-end. During fiscal 2018 the Group raised a further deferred tax asset of R0.6 million (2017: R5.3 million) in respect of a portion of the tax losses available in the Europe segment. These tax losses were incurred in prior years. Since fiscal 2015, the entity started returning to profitability resulting in a reassessment of its ability to utilize the tax losses and the recognition of a deferred tax asset for a portion thereof since fiscal 2017.

The movement in deferred tax assets and liabilities during the year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2017		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2018
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	33,616		9,185		—		27		42,828
Intangible assets	49,807		7,279		—		(2	)	57,084
Pre-payments	2,815		68		—		(26	)	2,857
Deferred foreign currency gains	61,616		(28,318	)	237		323		33,858
Other	1,106		105		—		(324	)	887
	148,960		(11,681	)	237		(2	)	137,514
Deferred tax assets
Revenue received in advance	(14,304	)	(1,426	)	—		—		(15,730	)
Capital allowances for tax purposes	(22,107	)	(8,503	)	—		54		(30,556	)
Provisions, accruals and lease straight-lining	(28,731	)	(5,572	)	—		393		(33,910	)
Assessable losses	(10,736	)	4,713		—		131		(5,892	)
Share-based payments	—		(2,354	)	(5,833	)	—		(8,187	)
Other	(1,145	)	(155	)	—		2		(1,298	)
	(77,023	)	(13,297	)	(5,833	)	580		(95,573	)
Net deferred tax liability	71,937		(24,978	)	(5,596	)	578		41,941

69

Notes to the consolidated financial statements

for the year ended March 31, 2018

The movement in deferred tax assets and liabilities during the prior year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2016		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2017
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	27,603		6,013		—		—		33,616
Intangible assets	39,088		10,721		—		(2	)	49,807
Pre-payments	1,970		845		—		—		2,815
Deferred foreign currency gains	87,878		(25,834	)	(428	)	—		61,616
Other	1,268		(163	)	—		1		1,106
	157,807		(8,418	)	(428	)	(1	)	148,960
Deferred tax assets
Revenue received in advance	(13,166	)	(1,138	)	—		—		(14,304	)
Capital allowances for tax purposes	(25,609	)	3,478		—		24		(22,107	)
Provisions, accruals and lease straight-lining	(25,617	)	(3,495	)	—		381		(28,731	)
Assessable losses	(1,043	)	(10,178	)	—		485		(10,736	)
Deferred foreign currency losses	(487	)	—		487		—		—
Other	(909	)	(225	)	—		(11	)	(1,145	)
	(66,831	)	(11,558	)	487		879		(77,023	)
Net deferred tax liability	90,976		(19,976	)	59		878		71,937

19.    Provisions

	March 31,  2018 R’000		March 31,  2017 R’000
Product warranties
Beginning of the year	11,538		16,564
Income statement charge	5,772		1,797
Utilized	(3,452	)	(5,476	)
Foreign currency translation differences	(73	)	(1,347	)
End of the year	13,785		11,538
Non-current portion	(516	)	—
Current portion	13,269		11,538

The Group provides warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily. Management estimates the related provision for future warranty claims based on historical warranty claim information, the product lifetime, as well as recent trends that might suggest that past cost information may differ from future claims.

70

Notes to the consolidated financial statements

for the year ended March 31, 2018

	March 31,  2018 R’000		March 31,  2017 R’000
Maintenance provision
Beginning of the year	3,511		4,413
Income statement charge	13,695		15,182
Utilized	(12,604	)	(15,944	)
Foreign currency translation differences	(173	)	(140	)
End of the year	4,429		3,511
Non-current portion	—		(409	)
Current portion	4,429		3,102

The Group provides for maintenance required related to ongoing contracts when the obligation to repair occurs. Management estimates the related provision for maintenance costs per unit based on the estimated costs expected to be incurred to repair the respective units.

	March 31,  2018 R’000		March 31,  2017 R’000
Decommissioning provision
Beginning of the year	1,424		1,812
Finance costs	213		—
Foreign currency translation differences	(21	)	(388	)
End of the year	1,616		1,424
Non-current portion	(1,616	)	(1,424	)
Current portion	—		—

The Group provides for the anticipated present value of costs associated with the restoration of leasehold property to its condition at inception of the lease, including the removal of items included in plant and equipment that is erected on leased land. The final cash outflow of these costs is not expected to occur in the next 12 months.

	March 31,  2018 R’000		March 31,  2017 R’000
Restructuring provision
Beginning of the year	11,465		523
Income statement (reversal)/charge (note 23)	(741	)	14,561
Utilized	(10,653	)	(2,834	)
Foreign currency translation differences	(47	)	(785	)
End of the year	24		11,465
Non-current portion	—		—
Current portion	24		11,465

71

Notes to the consolidated financial statements

for the year ended March 31, 2018

Restructuring costs

2018

R10.7 million of the restructuring provision was utilized in respect of the restructuring plans implemented during fiscal 2017, as described below. R0.7 million was released during the current financial year. The remaining restructuring provision is expected to be utilized within the first quarter of fiscal 2019.

2017

During March 2017, restructuring plans were implemented by the Europe and Middle East and Australasia segments. The total cost of the restructuring plans was expected to approximate R15.0 million. These costs consisted of estimated staff costs in respect of affected employees. By March 31, 2017, R2.7 million of the expected restructuring costs had been incurred and the remaining provision of R11.5 million was expected to be fully utilized within 12 months.

In respect of a restructuring plan implemented during fiscal 2015, the Africa segment incurred R0.1 million in respect of lease termination costs and reversed the remaining balance of R0.4 million of the restructuring provision during fiscal 2017.

	March 31,  2018 R’000			March 31,  2017 R’000
Other provisions
Beginning of the year	2,673			11,261
Income statement charge	224			281
Utilized	—			(8,600	)
Foreign currency translation differences	(336	)		(269	)
End of the year	2,561			2,673
Non-current portion	—			—
Current portion	2,561		—	2,673

Other provisions

The provision in fiscal 2018 relates to taxation matters which may not be resolved in a manner that is favorable to the Group. The Group has raised provisions in respect of these matters based on estimates and the probability of an outflow of economic benefits and this should not be construed as an admission of legal liability.

At March 31, 2016, the Group was involved in a supplier dispute and certain taxation matters specific to the respective jurisdictions in which the Group operates. During fiscal 2017, R8.6 million was paid in full settlement of the supplier obligations provided for in fiscal 2016.

	March 31,  2018 R’000		March 31,  2017 R’000
Total provisions
Product warranties	13,785		11,538
Maintenance provision	4,429		3,511
Decommissioning provision	1,616		1,424
Restructuring provision	24		11,465
Other provisions	2,561		2,673
Total provision	22,415		30,611
Non-current portion	(2,132	)	(1,833	)
Current provision	20,283		28,778

72

Notes to the consolidated financial statements

for the year ended March 31, 2018

20.    Share-based payment liability

	March 31,  2018 R’000		March 31,  2017 R’000
Movement in share-based payment liability for the year
Opening balance	—		—
Share-based payment expense recognized during the year	1,352		1,064
Payment made in settlement of the share-based payment liability	(1,353	)	(1,064	)
Foreign currency translation differences	1		—
Closing balance	—		—

MiX Brazil

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

In September 2017, Edge exercised the put option in the quotaholders agreement. In terms of the subsequent sale agreement MiX Investments (Proprietary) Limited acquired Edge’s 5% equity interest in MiX Brazil for R1.4 million which increased the Group's interest in MiX Brazil to 100%. As a result, the Group recognized a cash-settled share-based payment expense and liability of R1.4 million, which was subsequently settled. The non-controlling interest related to MiX Brazil of R1.5 million was also transferred to other reserves within equity (note 14).

At March 31, 2017, the share-based payment liability was valued using discounted cash flow analysis. The fair value was determined by the use of cash flow projections based on approved budgets covering a five-year period. These cash flows were based on the current market conditions and near-term expectations. On a stand-alone basis at the end of fiscal 2017, the cash flow projections including debt revealed that the liability was unlikely to result in a cash outflow for the Group and as such its carrying amount was zero.

The key assumptions used in the discounted cash flow analysis in fiscal 2017 were:

	March 31,  2017
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	21.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	4.5

MiX Fleet Support Trust

The cash-settled share-based payment expense incurred in 2017 was in respect of the sale of the MiX Telematics Fleet Support Trust's 51% interest in MiX Telematics Fleet Support Services Proprietary Limited to MiX Telematics Africa Proprietary Limited. The proceeds from this transaction were distributed to certain employees who are beneficiaries of the trust. The Group has no further obligations in respect of this transaction.

73

Notes to the consolidated financial statements

for the year ended March 31, 2018

21.    Revenue

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Subscription revenue	1,434,615	1,239,914	1,158,229
Hardware sales	227,752	222,315	221,306
Driver training, installation and other	50,115	77,829	85,486
	1,712,482	1,540,058	1,465,021

22.    Other income/(expenses) — net

	March 31,  2018 R’000	March 31,  2017 R’000		March 31,  2016 R’000
Insurance reimbursement relating to operating costs	2,500	—		—
Profit/(loss) on disposal of property, plant and equipment and intangible assets (note 31.2)	1,264	(262	)	(208	)
Other	482	688		1,452
	4,246	426		1,244

23.    Operating profit

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Operating profit is stated after accounting for the following charges:
Amortization (notes 7 and 31.2)	63,926		44,734		47,586
Depreciation (notes 6 and 31.2)	151,945		98,508		75,037
Impairment of intangible assets (notes 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 31.2)	9		(791	)	1,905
Operating lease charges — premises, vehicles and equipment	24,622		24,690		23,536
Restructuring costs (note 19)	(741	)	14,561		(333	)
Write-down of inventory to net realizable value (notes 9 and 31.2)	9,294		9,967		5,317
Research expenditure	1,624		2,398		1,540
Transaction costs arising from investigating strategic alternatives	—		—		5,037
Professional fees	32,689		22,358		24,940
Staff costs	601,656		587,474		573,165
– Salaries, wages and other costs	564,207		554,793		540,227
– Pension costs (note 17)	27,097		29,370		27,118
– Equity-settled share-based payments (notes 14 and 31.2)	9,000		2,247		7,838
– Cash-settled share-based payments (note 20)	1,352		1,064		(2,018	)
Number of employees at the end of the year	1,054		1,056		1,089

Investigating strategic alternatives

During fiscal 2016, the Board of Directors entered into a process of investigating strategic alternatives relating to the Group. This extensive review, conducted with guidance from external advisers, included the optimization of capital structures and an evaluation of various ownership options.

74

Notes to the consolidated financial statements

for the year ended March 31, 2018

24.    Finance income

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Current accounts and short-term bank deposits	8,508	14,052	7,292
Finance lease receivable income	3	20	267
Other	440	520	567
	8,951	14,592	8,126
Net foreign exchange gains	—	1,476	144,038
	8,951	16,068	152,164

25.    Finance costs

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Overdraft	(2,324	)	(2,259	)	(1,490	)
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 13)	—		(3,222	)	—
Other long-term loans	—		(50	)	(186	)
Decommissioning provision (note 19)	(213	)	—		—
Other	(1,410	)	(146	)	(161	)
	(3,947	)	(5,677	)	(1,837	)
Net foreign exchange losses	(5,073	)	—		—
	(9,020	)	(5,677	)	(1,837	)

26.    Auditors’ remuneration

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Auditors’ remuneration	12,076	8,821	7,426

In fiscal 2018, auditors' remuneration includes R2.2 million in respect of fees paid to PricewaterhouseCoopers Inc. and the balance relates to Deloitte & Touche.

75

Notes to the consolidated financial statements

for the year ended March 31, 2018

27.    Directors’ and executive committee emoluments

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2018
Non-executive directors
R Bruyns(2)	773	—	—	—	—	773
C Ewing(2),(3)	348	—	—	—	—	348
R Frew(2)	746	—	—	—	—	746
E Banda	486	—	—	—	—	486
A Welton	614	—	—	—	—	614
I Jacobs	386	—	—	—	—	386
F Roji-Maplanka(4)	292	—	—	—	—	292
	3,645	—	—	—	—	3,645
Value added tax(2)	266	—	—	—	—	266
Executive committee(5)
S Joselowitz(6)	—	6,841	—	—	6,737	13,578
C Tasker(6)	—	5,393	—	—	4,133	9,526
P Dell(7)	—	1,844	100	71	1,750	3,765
G Pretorius	—	2,573	268	433	3,299	6,573
C Lewis	—	2,570	122	130	2,603	5,425
	3,911	19,221	490	634	18,522	42,778
2017
Non-executive directors
R Bruyns	794	—	—	—	—	794
C Ewing(3)	570	—	—	—	—	570
R Frew(2)	566	—	—	—	—	566
E Banda	470	—	—	—	—	470
A Welton	650	—	—	—	—	650
M Lamberti(2), (8)	115	—	—	—	—	115
I Jacobs(9)	277	—	—	—	—	277
G Nakos(10)	—	—	—	—	—	—
	3,442	—	—	—	—	3,442
Value added tax(2)	95	—	—	—	—	95
Executive committee(5)
S Joselowitz(6)	—	7,219	—	—	3,404	10,623
M Pydigadu(11)	—	2,101	98	80	1,206	3,485
C Tasker(6)	—	3,612	178	256	1,511	5,557
B Horan(12)	—	1,215	63	47	1,456	2,781
P Dell(7)	—	275	14	11	—	300
G Pretorius	—	2,096	129	335	1,147	3,707
C Lewis	—	2,328	—	144	1,099	3,571
	3,537	18,846	482	873	9,823	33,561

76

Notes to the consolidated financial statements

for the year ended March 31, 2018

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2016
Non-executive directors
R Bruyns	910	—	—	—	—	910
C Ewing(3)	538	—	—	—	—	538
R Frew(2)	387	—	—	—	—	387
E Banda	442	—	—	—	—	442
A Welton	604	—	—	—	—	604
M Lamberti(2), (8)	286	—	—	—	—	286
	3,167	—	—	—	—	3,167
Value added tax(2)	94	—	—	—	—	94
Executive committee(5)
S Joselowitz(6)	—	7,006	—	—	3,806	10,812
R Botha(13), (14)	—	390	1,979	15	728	3,112
M Pydigadu(11)	—	2,304	109	87	1,299	3,799
H Scott(13), (15)	—	586	100	—	1,054	1,740
C Tasker(6)	—	3,288	45	264	1,691	5,288
B Horan(12)	—	2,292	118	90	1,365	3,865
G Pretorius	—	1,906	118	308	1,120	3,452
C Lewis	—	2,026	52	180	1,446	3,704
	3,261	19,798	2,521	944	12,509	39,033

⁽¹⁾  Performance bonuses are based on actual amounts paid during the fiscal year.

⁽²⁾  Value added tax (“VAT”) included as part of certain invoices received. Directors’ fees shown exclude VAT.

⁽³⁾  Resigned from the Board with effect from November 7, 2017.

⁽⁴⁾  Appointed to the Board with effect from October 3, 2017.

⁽⁵⁾  All prescribed officers of the Company are included as part of the executive committee.

⁽⁶⁾  Executive director as at March 31, 2018, March 31, 2017 and March 31, 2016.

⁽⁷⁾  Appointed as Group executive committee member from February 1, 2017 and to the Board with effect from February 9, 2017. Executive director as at March 31, 2018 and March 31, 2017.

⁽⁸⁾  Appointed to the Board with effect from November 19, 2014, resigned from the Board with effect from August 18, 2016.

⁽⁹⁾  Appointed to the Board with effect from June 1, 2016.

⁽¹⁰⁾  Appointed as alternate director to Mark Lamberti with effect from November 4, 2015. Subsequently resigned as alternate director to Mark Lamberti with effect from August 18, 2016.

⁽¹¹⁾  Resigned from the Board with effect from February 9, 2017.

⁽¹²⁾  Resigned with effect from September 30, 2016.

⁽¹³⁾  Resigned from the Board with effect from August 9, 2013 but remained as Group executive committee member. Subsequently retired from the Group executive committee on May 31, 2015.

⁽¹⁴⁾  Other benefits paid to R Botha include notice pay, severance pay and gratuity payments made as compensation for loss of office. Refer to note 13 for further details of share options held and exercised by this retired executive.

⁽¹⁵⁾  Other benefits paid to H Scott comprise gratuity payments made upon retirement.

The remaining related party transactions are set out in note 32.

77

Notes to the consolidated financial statements

for the year ended March 31, 2018

28.    Taxation

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Major components of taxation expense
Normal taxation	(58,668	)	(46,788	)	(57,545	)
– Current	(55,385	)	(43,434	)	(53,626	)
– Over-provision prior years	325		589		175
– Foreign tax paid	(2,880	)	(3,711	)	(3,768	)
– Withholding tax	(728	)	(232	)	(326	)
Deferred taxation (note 18)	24,978		19,976		(49,375	)
– Current year	25,658		20,748		(49,365	)
– Under-provision prior years	(680	)	(772	)	(10	)
	(33,690	)	(26,812	)	(106,920	)

Taxation recognized in other comprehensive income

	Before tax R’000		Tax impact R’000		After tax R’000
2018
Exchange differences on translating foreign operations	(60,331	)	(237	)	(60,568	)
	(60,331	)	(237	)	(60,568	)

	Before tax R’000		Tax impact R’000		After tax R’000
2017
Exchange differences on translating foreign operations	(80,870	)	(59	)	(80,929	)
	(80,870	)	(59	)	(80,929	)

	Before tax R’000	Tax impact R’000		After tax R’000
2016
Exchange differences on translating foreign operations	90,665	(2,466	)	88,199
	90,665	(2,466	)	88,199

78

Notes to the consolidated financial statements

for the year ended March 31, 2018

Tax rate reconciliation

The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the entities as follows:

		March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation		214,883		148,253		289,411
Tax at the applicable tax rate of 28%		60,167		41,511		81,035
Tax effect of:		(26,477	)	(14,699	)	25,885
– Income not subject to tax		(552	)	—		(398	)
– Expenses not deductible for tax purposes(1)		6,460		7,409		6,869
– (Non-taxable)/non-deductible foreign exchange movements(2)	`	(28,184	)	(15,884	)	9,376
– Withholding tax		728		232		326
– Utilization of prior year assessed losses(3)		(6,452	)	(1,461	)	—
– Foreign tax paid(4)		2,880		3,711		3,768
– Tax rate differential		(2,546	)	1,281		(6,551	)
– Deferred tax not recognized on assessed losses		517		4,049		12,833
– Deferred tax asset previously not recognized		(1,122	)	(5,342	)	(531	)
– Under/(over)-provision prior years		355		183		(165	)
– Tax incentives in addition to incurred cost(5)		(3,258	)	(10,387	)	—
– Share-based payment expense previously not deductible		(1,049	)	—		—
– Imputation of controlled foreign company income		2,365		1,453		358
– Transfer pricing imputation		3,381		57		—
		33,690		26,812		106,920

⁽¹⁾  These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income.

⁽²⁾  The (non-taxable)/non-deductible foreign exchange movements arise as a result of the Group’s internal loan structures.

⁽³⁾  The utilization of assessed losses arises mainly in Europe, the Americas and Brazil where historical assessed losses are being utilized, as these entities are now generating taxable profits. During prior years, deferred tax assets have not been recorded for assessed losses in the Americas and Brazil.

⁽⁴⁾  The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Group does not have a legal entity.    

⁽⁵⁾  The tax incentives relate mainly to the section 11D allowance detailed below.

The Group’s weighted average tax rate is 15.7% (2017: 18.1%, 2016: 36.9%).

Section 11D allowances relating to tax assets recognized

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

79

Notes to the consolidated financial statements

for the year ended March 31, 2018

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

Since the introduction of the DST pre-approval process, the Group has recognized in the income statement cumulative tax incentives in addition to the incurred cost of R20.5 million in respect of S11D deductions, of which R2.3 million was recognized in the current financial year. R17.7 million relates to deductions in respect of development project expenditure which has been approved by the DST. R2.8 million relates to an uncertain tax position in respect of projects where approvals have not yet been received from the DST. If the Group is unsuccessful in this regard, the Group will not recover the R2.8 million raised at March 31, 2018.

The taxation receivable includes amounts due of R17.7 million in respect of S11D tax incentives at March 31, 2018 (2017: R14.9 million).

29.    Earnings per share

Basic

Basic earnings per share is calculated by dividing the profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic earnings per share (R)	0.32	0.19	0.24

Diluted

Diluted earnings per share is calculated by dividing the diluted profit attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year. Share options and share appreciation rights granted to employees under the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), as disclosed in note 13, are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required target share price or annual shareholder return hurdles (as applicable) would have been met based on the Company's performance up to the reporting date, and to the extent to which they are dilutive. Details relating to the share options and share appreciation rights are set out in note 13.

Share appreciation rights were issued for the first time during fiscal 2015 and there were no potentially dilutive share appreciation rights at March 31, 2017 and March 31, 2016. 

80

Notes to the consolidated financial statements

for the year ended March 31, 2018

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Adjusted for:
— potentially dilutive effect of share appreciation rights	7,230	—	—
— potentially dilutive effect of share options	5,663	2,193	8,275
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted earnings per share (R)	0.32	0.19	0.23

Adjusted earnings per share

Adjusted earnings per share is defined as profit attributable to owners of the parent, MiX Telematics Limited, excluding net foreign exchange gains/(losses) net of tax, divided by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of adjusted earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
Net foreign exchange losses/(gains)	5,073		(1,476	)	(144,038	)
Income tax effect on the above component(1)	(29,403	)	(15,307	)	48,647
Adjusted earnings attributable to owners of the parent	156,804		104,675		87,598

⁽¹⁾  The income tax effect is mainly influenced by the Group’s internal loan structures (note 28).

Basic

Basic adjusted earnings per share is calculated by dividing the adjusted earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic adjusted earnings per share (R)	0.28	0.17	0.11

Diluted

Adjusted diluted earnings per share is calculated by dividing the diluted adjusted earnings attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year.

81

Notes to the consolidated financial statements

for the year ended March 31, 2018

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Diluted adjusted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted adjusted earnings per share (R)	0.27	0.17	0.11

Headline earnings per share

Headline earnings per share is a profit measure required for JSE-listed companies and is calculated in accordance with circular 2/2015 issued by the South African Institute of Chartered Accountants. The profit measure is determined by taking the profit for the year prior to certain separately identifiable remeasurements of the carrying amount of an asset or liability that arose after the initial recognition of such asset or liability net of related tax (both current and deferred) and related non-controlling interest.

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of headline earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
(Profit)/loss on disposal of property, plant and equipment and intangible assets (note 31.2)	(1,264	)	262		208
Impairment of intangible assets (notes 5, 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 5, 6 and 31.2)	9		(791	)	1,905
Non-controlling interest effects of adjustments	—		8		(244	)
Income tax effect on the above components	(380	)	(661	)	2
Headline earnings attributable to owners of the parent	182,186		123,442		187,731

Basic

Basic headline earnings per share is calculated by dividing the headline earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Headline earnings attributable to owners of the parent	182,186	123,442	187,731
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic headline earnings per share (R)	0.32	0.20	0.24

Diluted

Diluted headline earnings per share is calculated by dividing the diluted headline earnings attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year.

82

Notes to the consolidated financial statements

for the year ended March 31, 2018

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted headline earnings attributable to owners of the parent	182,186	123,442	187,731
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted headline earnings per share (R)	0.32	0.20	0.24

30.    Dividends

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Dividends declared	53,268	53,026	107,254

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

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

• In respect of the fourth quarter of fiscal 2017, a dividend of R11.3 million was declared on May 23, 2017 and paid on June 19, 2017. Using shares in issue of 563,514,561 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the first quarter of fiscal 2018, a dividend of R14.0 million was declared on August 1, 2017 and paid on August 28, 2017. Using shares in issue of 558,498,901 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

• In respect of the second quarter of fiscal 2018, a dividend of R14.0 million was declared on October 31, 2017 and paid on November 27, 2017. Using shares in issue of 559,418,095 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

• In respect of the third quarter of fiscal 2018, a dividend of R14.0 million was declared on January 30, 2018 and paid on February 26, 2018. Using shares in issue of 562,320,145 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

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

• In respect of the fourth quarter of fiscal 2016, a dividend of R15.2 million was declared on May 24, 2016 and paid on June 20, 2016. Using shares in issue of 761,337,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the first quarter of fiscal 2017, a dividend of R15.3 million was declared on August 4, 2016 and paid on August 29, 2016. Using shares in issue of 763,087,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the second quarter of fiscal 2017, a dividend of R11.3 million was declared on November 3, 2016 and paid on November 28, 2016. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the third quarter of fiscal 2017, a dividend of R11.2 million was declared on February 2, 2017 and paid on February 27, 2017. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

83

Notes to the consolidated financial statements

for the year ended March 31, 2018

The following dividends were declared by the Company in fiscal 2016:

• In respect of fiscal 2015, a dividend of R61.5 million was declared on August 25, 2015 and paid on September 21, 2015. Using shares in issue of 768,601,150 (excluding 24,573,850 treasury shares), this equated to a dividend of 8 cents per share.

• In respect of the first quarter of fiscal 2016, a dividend of R15.4 million was declared on August 25, 2015 and paid on September 21, 2015. Using shares in issue of 768,601,150 (excluding 24,573,850 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the second quarter of fiscal 2016, a dividend of R15.3 million was declared on November 5, 2015 and paid on November 30, 2015. Using shares in issue of 764,140,181 (excluding 30,334,819 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the third quarter of fiscal 2016, a dividend of R15.1 million was declared on February 4, 2016 and paid on February 29, 2016. Using shares in issue of 755,137,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

84

Notes to the consolidated financial statements

for the year ended March 31, 2018

31.    Cash flow statement

31.1    The following convention applies to figures other than adjustments:

Outflows of cash are represented by figures in brackets. Inflows of cash are represented by figures without brackets.

31.2    Reconciliation of profit for the year before taxation to cash generated from operations:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation	214,883		148,253		289,411
Adjustments	279,727		197,023		33,779
– (Profit)/loss on disposal of property, plant and equipment and intangible assets (note 22)	(1,264	)	262		208
– Depreciation (notes 6 and 23)	151,945		98,508		75,037
– Amortization (notes 7 and 23)	63,926		44,734		47,586
– Impairment of intangible assets (notes 7 and 23)	2,687		3,166		2,871
– Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 23)	9		(791	)	1,905
– Finance income (note 24)	(8,951	)	(14,592	)	(8,126	)
– Finance costs (note 25)	3,947		5,677		1,837
– Equity-settled share-based payments (notes 14 and 23)	9,000		2,247		7,838
– Cash-settled share-based payments (notes 20 and 23)	1,352		—		(2,018	)
– Foreign exchange losses/(gains) (notes 24 and 25)	5,073		(1,476	)	(144,038	)
– Impairment of receivables (note 10)	24,143		17,713		14,735
– Write-down of inventory to net realizable value (notes 9 and 23)	9,294		9,967		5,317
– Increase in provisions	18,950		31,821		29,731
– Lease straight-line adjustment	(384	)	(213	)	(174	)
– Finance lease fair value adjustment	—		—		1,070
Cash generated from operations before working capital changes	494,610		345,276		323,190
Changes in working capital	(81,585	)	31,839		(29,382	)
– (Increase)/decrease in inventories	(39,858	)	28,073		(30,872	)
– (Increase)/decrease in trade and other receivables	(49,601	)	17,404		(46,297	)
– Decrease in finance lease receivable	165		1,009		4,655
– Increase in trade and other payables	8,519		21,993		46,712
– Decrease in provisions	(26,709	)	(32,854	)	(24,669	)
– Foreign currency translation differences on working capital	25,899		(3,786	)	21,089
Cash generated from operations	413,025		377,115		293,808

85

Notes to the consolidated financial statements

for the year ended March 31, 2018

32.    Related party transactions

Directors’ and executive committee members’ interest

The list of directors and executive committee members and their beneficial interests declared in the Company’s share capital at year-end held directly, indirectly and by associates were as follows:

	March 31, 2018			March 31, 2017
	Direct 000s	Indirect 000s	Associate 000s	Direct 000s	Indirect 000s	Associate 000s
Non-executive
R Bruyns	—	3,697	—	—	3,697	—
C Ewing(1)	—	—	—	—	—	—
R Frew	—	63,848	70,261	—	63,848	70,261
A Welton	—	—	235	—	—	235
E Banda	—	—	—	—	—	—
I Jacobs(2)	241	14,296	—	191	—	14,281
F Roji-Maplanka(3)	—	—	—	—	—	—
Executive
S Joselowitz	26,342	—	—	26,342	—	—
C Tasker	2,057	—	2,428	900	—	2,428
P Dell	1	—	—	1	—	—
G Pretorius	338	—	—	35	—	—
C Lewis	1,525	—	—	1,525	—	—
	30,504	81,841	72,924	28,994	67,545	87,205

⁽¹⁾  Resigned from the Board with effect from November 7, 2017.

⁽²⁾  Appointed to the Board with effect from June 1, 2016.

⁽³⁾  Appointed to the Board with effect from October 3, 2017.

Interests in contracts

During the year under review, the following were disclosed as contractual arrangements that existed between the Group and parties outside of the Group, in which certain of the directors and executive committee members had interests:

Name of director	Related party	Nature of relationship with the Group
R Bruyns	Insight Consultancy Close Corporation	Provides directors’ services
R Frew	TPF Investments Proprietary Limited	Lease agreement: Midrand office
R Frew	Masalini Capital Proprietary Limited	Provides directors’ services

A list of subsidiaries has been included in note 39.

86

Notes to the consolidated financial statements

for the year ended March 31, 2018

Transactions with related parties and balances outstanding at year-end are as follows (excluding key management personnel emoluments):

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Sales of goods and services	—	22,263	78,564
– Imperial Group Limited*	—	22,263	78,564
Purchases of goods and services	8,277	11,206	35,595
– TPF Investments Proprietary Limited**	8,277	5,277	7,148
– Imperial Group Limited*	—	5,929	28,447
Corporate and social investment	—	—	257
– Heartbeat centre for community development***	—	—	257
Year-end balance of receivables (included in trade and other receivables – note 10)	—	—	11,144
– Imperial Group Limited*	—	—	11,144
Year-end balance of payables (included in trade and other payables – note 16)	—	—	3,209
– TPF Investments Proprietary Limited**	—	—	—
– Imperial Group Limited*	—	—	842
– C Tasker****	—	—	2,367

* Related party until August 1, 2016. See “Fiscal 2017 specific share repurchase” in note 13 for additional information.

** Previously known as Thynk Property Fund Proprietary Limited.

*** Related party transactions up to May 31, 2015, when R Botha retired from the Group executive committee, have been

disclosed.

**** Cash held by MiX Telematics Limited to be paid to C Tasker, a participant of the TeliMatrix Group Executive Incentive

Scheme in respect of share options exercised.

Refer to note 27 for key management personnel emoluments disclosure. Key management personnel include executive committee members.

The related parties included above are related to the Group due to certain shares in these entities being held by executive or non-executive directors of the Company or due to common directorships held.

There were no receivables from related parties at March 31, 2018 and 2017. The receivables from related parties historically arose from sales transactions, were unsecured and bore no interest. At March 31, 2016, the provision held against receivables from related parties amounted to R1.0 million.

There were no payables to related parties at March 31, 2018 and 2017. The payable in respect of C Tasker in fiscal 2016 is described above. The remaining payables in fiscal 2016 to related parties arose mainly from purchase transactions and bore no interest.

33.    Contingencies

Service agreement

In terms of an amended network services agreement with Mobile Telephone Networks Proprietary Limited (“MTN”), MTN is entitled to claw back payments from MiX Telematics Africa Proprietary Limited, a subsidiary of the Group, in the event of early cancellation of the agreement or certain base connections not being maintained over the term of the agreement. No connection incentives will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement is R43.7 million (2017: R48.4 million). No loss is considered probable under this arrangement.

34.    Commitments

Capital commitments

At March 31, the Group had approved, but not yet contracted, capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	—	—	—
Intangible assets	56,406	58,036	63,670
	56,406	58,036	63,670

 At March 31, the Group had approved and contracted capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	11,601	50,074	22,471
Intangible assets	17,046	24,726	33,234
	28,647	74,800	55,705

Capital commitments will be funded out of a mixture of working capital and cash and cash equivalents.

Operating leases

The Group leases various offices under operating lease agreements. The leases have various terms and escalation clauses and renewal rights.

The future minimum lease payments in respect of land and buildings under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Land and buildings
Within one year	12,324	15,201	19,896
One to five years	10,862	20,354	9,767
	23,186	35,555	29,663

The Group leases various office equipment and vehicles under non-cancellable operating lease agreements. The lease terms are between one and five years with annual escalations up to 10% per annum. The Group is required to give up to three months’ notice for the termination of these agreements.

87

Notes to the consolidated financial statements

for the year ended March 31, 2018

The future minimum lease payments of office equipment and vehicles under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Office equipment
Within one year	716	853	874
One to five years	674	495	1,032
	1,390	1,348	1,906
Vehicles
Within one year	1,585	1,507	836
One to five years	1,617	1,626	167
	3,202	3,133	1,003

The lease expenditure charged to the income statement during the year is disclosed in note 23.

35.    Events after the reporting period

Other than the item below, the directors are not aware of any matter material or otherwise arising since March 31, 2018 and up to the date of this report, not otherwise dealt with herein.

Dividend declared

On May 8, 2018 the Board declared in respect of the fourth quarter of fiscal 2018 which ended on March 31, 2018, a dividend of 3 South African cents per ordinary share that was paid on June 4, 2018.

36.    Financial risk sensitivity analysis

Interest rate sensitivity

A change in the interest rate at the reporting date of 100 basis points for ZAR denominated instruments and 10 basis points for USD denominated instruments would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for the year ended March 31, 2017.

		March 31,  2018 R’000		March 31,  2017 R’000
USD denominated instruments	Increase of 10 basis points	*		143
	Decrease of 10 basis points	*		(143	)
ZAR denominated instruments	Increase of 100 basis points	1,811		1,000
	Decrease of 100 basis points	(1,811	)	(1,000	)

* Amount less than R1,000.

Foreign currency sensitivity

The Group has used a sensitivity analysis technique that measures the estimated change to profit or loss and equity of an instantaneous 5% strengthening or weakening in the functional currency against all other currencies, from the rate applicable at March 31, 2018, for each class of financial instrument with all other variables remaining constant. This analysis is for illustrative purposes only as, in practice, market rates rarely change in isolation.

88

Notes to the consolidated financial statements

for the year ended March 31, 2018

The Group is exposed mainly to fluctuations in foreign exchange rates in respect of the South African Rand, Australian Dollar, United States Dollar, the British Pound, the Brazilian Real and the Euro. This analysis considers the impact of changes in foreign exchange rates on profit or loss.

A change in the foreign exchange rates to which the Group is exposed at the reporting date would have increased/(decreased) profit before taxation by the amounts shown below. The analysis has been performed on the basis of the change occurring at the end of the reporting period.

		Increase/(decrease) in profit before taxation
	Change in exchange rate %	Result of weakening in functional currency R’000		Result of strengthening in functional currency R’000
2018
Denominated currency: Functional currency
EUR:GBP	5	710		(710	)
USD:GBP	5	(149	)	149
USD:ZAR	5	814		(814	)
EUR:ZAR	5	368		(368	)
GBP:ZAR	5	(78	)	78
ZAR:USD	5	2		(2	)
EUR:USD	5	231		(231	)
USD:AUD	5	(33	)	33
AUD:ZAR	5	598		(598	)
ZAR:GBP	5	(22	)	22
USD:BRL	5	(33	)	33
2017
Denominated currency: Functional currency
EUR:GBP	5	152		(152	)
USD:GBP	5	(19	)	19
USD:ZAR	5	8,028		(8,028	)
EUR:ZAR	5	422		(422	)
GBP:ZAR	5	(25	)	25
ZAR:USD	5	(41	)	41
EUR:USD	5	29		(29	)
USD:AUD	5	(73	)	73
EUR:AUD	5	(3	)	3
AUD:ZAR	5	320		(320	)
ZAR:GBP	5	(9	)	9
ZAR:AUD	5	(43	)	43
USD:BRL	5	(124	)	124
ZAR:BRL	5	(2	)	2
NGN:ZAR	5	228		(228	)

89

Notes to the consolidated financial statements

for the year ended March 31, 2018

37.    Liquidity risk

Liquidity risk is the risk that there will be insufficient funds available to settle obligations when they are due.

The Group has limited risk due to the recurring nature of its income and the availability of liquid resources. The Group meets its financing requirements through a mixture of cash generated from its operations and its access to undrawn borrowing facilities (note 15). In addition, the Group holds the following cash resources:

	March 31,  2018 R’000	March 31,  2017 R’000
Cash and cash equivalents, net of overdrafts (note 12)	290,538	356,333

The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

	Payable within 1 month or on demand R’000	Between 1 month and 1 year R’000	Between 1 year and 2 years R’000	Between 2 years and 5 years R’000	More than 5 years R’000
March 31, 2018
Trade payables	58,085	40,009	—	—	—
Accruals and other payables	92,318	68,646	—	—	—
Bank overdraft	17,720	—	—	—	—
Total	168,123	108,655	—	—	—
March 31, 2017
Trade payables	42,720	37,172	—	—	—
Accruals and other payables	92,353	47,610	—	—	—
Bank overdraft	19,449	—	—	—	—
Total	154,522	84,782	—	—	—

There have been no significant changes in the Group’s financial risk management described above relative to the prior year.

38.    Exchange rates

The following major rates of exchange were used in the preparation of the consolidated financial statements:

		March 31,  2018	March 31,  2017	March 31,  2016
ZAR:USD	– closing	11.83	13.41	14.83
	– average	12.99	14.06	13.78
ZAR:GBP	– closing	16.60	16.75	21.31
	– average	17.21	18.42	20.63

90

Notes to the consolidated financial statements

for the year ended March 31, 2018

39. List of Group companies

MiX Telematics Limited is the parent company of the MiX Telematics Group of companies outlined below. All of the entities listed below have been consolidated.

Name	Principal activity	Place of incorporation	Legal % ownership
			March 31, 2018 %	March 31, 2017 %
Direct
MiX Telematics Investments Proprietary Limited	Treasury company	RSA	100	100
MiX Telematics Africa Proprietary Limited	Asset tracking and fleet management products and services	RSA	100	100
MiX Telematics International Proprietary Limited	Fleet management products and services and research and development	RSA	100	100
MiX Telematics Europe Limited	Fleet management products and services	UK	100	100
MiX Telematics North America Incorporated	Fleet management products and services	USA	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada	Fleet management products and services	Brazil	95	95
Indirect
MiX Telematics Technology Holdings Proprietary Limited	Deregistered	RSA	—	100
MiX Telematics Middle East FZE	Fleet management products and services	UAE	100	100
MiX Telematics Enterprise SA Proprietary Limited (1)	Fleet management products and services	RSA	85.1	85.1
MiX Telematics Fleet Support Services Proprietary Limited	Fleet management products and services	RSA	100	100
MiX Telematics East Africa Limited	Fleet management products and services	Uganda	99.9	99.9
MiX Telematics Romania SRL(2)	Fleet management services	Romania	99	99
MiX Telematics (Thailand) Limited	Fleet management products and services	Thailand	100	100
MiX Telematics Australasia Proprietary Limited	Fleet management products and services	Australia	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada(3)	Fleet management products and services	Brazil	5	—

⁽¹⁾  The remaining shareholding in this company is owned by a structured entity, the MiX Telematics Enterprise BEE Trust (which holds a 14.9% interest in MiX Telematics Enterprise SA Proprietary Limited), which has been fully consolidated. Control of the structured entity was assessed when IFRS 10 Consolidated Financial Statements was adopted with effect from April 1, 2013 and there was no change to the historical accounting treatment applied by the Group. This trust was set up in prior years to invest in the specified Group company and to hold such investment for its beneficiaries.

⁽²⁾  During fiscal 2015, MiX Telematics Middle East FZE incorporated MiX Telematics Romania SRL and obtained a 99% interest therein. The 1% non-controlling interest is held by management.

⁽³⁾  MiX Investments Proprietary Limited acquired Edge’s 5% equity interest in MiX Brazil during the year. See note 20 for more information.

91

EX-99.2

July 2, 2018

Securities and Exchange Commission

100 F Street, N.E.

Washington, DC 20549

Commissioners:

We have read the statements made by MiX Telematics Limited (copy attached), which we understand will be filed with the Securities and Exchange Commission, pursuant to Item 16F of Form 20-F, as part of the Annual Report on Form 20-F of MiX Telematics Limited for the year ended March 31, 2018, dated July 2, 2018. We agree with the statements concerning our Firm contained therein.

Very truly yours,

/s/ PricewaterhouseCoopers Inc.

PricewaterhouseCoopers Inc.

Johannesburg, Republic of South Africa

Attachment

PricewaterhouseCoopers Inc., 4 Lisbon Lane, Waterfall City, Jukskei View, 2090

Private Bag X36, Sunninghill, 2157, South Africa

T: +27 (0) 11 797 4000, F: +27 (0) 11 209 5800, www.pwc.co.za

Chief Executive Officer: T D Shango

Management Committee: S N Madikane, J S Masondo, P J Mothibe, C Richardson, F Tonelli, C Volschenk

The Company's principal place of business is at 4 Lisbon Lane, Waterfall City, Jukskei View, where a list of directors' names is available for inspection.

Reg. no. 1998/012055/21, VAT reg.no. 4950174682.

Item 16.F Change in Registrant’s Certifying Accountant:

On October 12, 2017, MiX Telematics Limited terminated the appointment of PricewaterhouseCoopers Inc. (“PwC”) as its independent registered public accounting firm and appointed Deloitte and Touche (“Deloitte”) in its stead. The Audit and Risk Committee and the Board of Directors participated in and approved the decision to change MiX Telematics Limited's independent registered public accounting firm. The change in auditors was made following a tender process. Both the commercial terms and expertise of the tender participants were assessed during the tender process.

The reports of PwC on our consolidated financial statements for the fiscal years ended March 31, 2017 and 2016 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, there were no disagreements, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F, with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC, would have caused PwC to make reference thereto in their reports on our consolidated financial statements for such fiscal years.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, there were no “reportable events” as that term is defined in Item 16F(a)(1)(v) of Form 20-F.

We requested PwC to furnish us with a copy of a letter addressed to the SEC stating whether or not it agrees with the above statements. A copy of such letter, dated July 2, 2018, is filed as Exhibit 99.2 to this Form 20-F.

During the two fiscal years ended March 31, 2017 and 2016 and the subsequent interim period through October 12, 2017, neither we nor anyone acting on our behalf consulted with Deloitte concerning (i) the application of accounting principles to a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on our consolidated financial statements and no written or oral advice was provided by Deloitte that was an important factor considered by us in reaching a decision as to any accounting, auditing or financial reporting issue, or (ii) any matter that was either the subject of a disagreement (as that term is used in Item 16F(a)(1)(v) of Form 20-F and the related instructions to Item 16F) or a “reportable event” (as defined in Item 16F(a)(1)(v) of Form 20-F).

2 of 2

XML

Document and entity information	12 Months Ended
	Mar. 31, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	MiX Telematics Ltd
Entity Central Index Key	0001576914
Document Type	20-F
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Well-Known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	604,420,145

XML

Consolidated statement of financial position - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Non-current assets
Property, plant and equipment	R 334,038	R 294,120
Intangible assets	898,527	881,900
Finance lease receivable	0	22
Deferred tax assets	40,717	28,130
Total non-current assets	1,273,282	1,204,172
Current assets
Assets classified as held for sale	17,058	0
Inventory	57,013	26,449
Trade and other receivables	286,406	260,576
Finance lease receivable	0	140
Taxation	30,373	26,302
Restricted cash	20,935	13,268
Cash and cash equivalents	308,258	375,782
Total current assets	720,043	702,517
Total assets	1,993,325	1,906,689
EQUITY
Stated capital	846,405	854,345
Other reserves	(51,614)	(4,370)
Retained earnings	722,380	594,514
Equity attributable to owners of the parent	1,517,171	1,444,489
Non-controlling interest	10	(1,558)
Total equity	1,517,181	1,442,931
Non-current liabilities
Deferred tax liabilities	82,658	100,067
Provisions	2,132	1,833
Total non-current liabilities	84,790	101,900
Current liabilities
Trade and other payables	350,519	309,110
Taxation	2,832	4,521
Provisions	20,283	28,778
Bank overdraft	17,720	19,449
Total current liabilities	391,354	361,858
Total liabilities	476,144	463,758
Total equity and liabilities	R 1,993,325	R 1,906,689

XML

Consolidated income statement - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Profit or loss [abstract]
Revenue	R 1,712,482	R 1,540,058	R 1,465,021
Cost of sales	(586,963)	(498,785)	(439,305)
Gross profit	1,125,519	1,041,273	1,025,716
Other income/(expenses) — net	4,246	426	1,244
Operating expenses	(914,813)	(903,837)	(887,876)
Sales and marketing	(184,978)	(181,601)	(203,767)
Administration and other charges	(729,835)	(722,236)	(684,109)
Operating profit	214,952	137,862	139,084
Finance (costs)/income — net	(69)	10,391	150,327
Finance income	8,951	16,068	152,164
Finance costs	(9,020)	(5,677)	(1,837)
Profit before taxation	214,883	148,253	289,411
Taxation	(33,690)	(26,812)	(106,920)
Profit for the year	181,193	121,441	182,491
Attributable to:
Owners of the parent	181,134	121,458	182,989
Non-controlling interests	59	(17)	(498)
Profit for the year	R 181,193	R 121,441	R 182,491
Earnings per share
Basic (R) (in ZAR per share)	R 0.32	R 0.19	R 0.24
Diluted (R) (in ZAR per share)	R 0.32	R 0.19	R 0.23

XML

Consolidated statement of comprehensive income - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Statement of comprehensive income [abstract]
Profit for the year	R 181,193	R 121,441	R 182,491
Other comprehensive income:
Exchange differences on translating foreign operations	(60,331)	(80,870)	90,665
Attributable to owners of the parent	(60,339)	(80,820)	90,784
Attributable to non-controlling interests	8	(50)	(119)
Taxation relating to components of other comprehensive income	(237)	(59)	(2,466)
Other comprehensive (loss)/income for the year, net of tax	(60,568)	(80,929)	88,199
Total comprehensive income for the year	120,625	40,512	270,690
Attributable to:
Owners of the parent	120,558	40,579	271,307
Non-controlling interests	67	(67)	(617)
Total comprehensive income for the year	R 120,625	R 40,512	R 270,690

XML

Consolidated statement of changes in equity - ZAR (R) R in Thousands	Total	Stated capital	Other reserves	Retained earnings	Total equity attributable to owners of the parent	Non-controlling interest
Balance at Mar. 31, 2015	R 1,864,572	R 1,436,993	R (21,894)	R 450,347	R 1,865,446	R (874)
Total comprehensive income for the year	270,690		88,318	182,989	271,307	(617)
Profit for the year	182,491			182,989	182,989	(498)
Other comprehensive income/(loss)	88,199		88,318		88,318	(119)
Total transactions with owners	(215,454)	(116,038)	7,838	(107,254)	(215,454)	0
Shares issued in relation to share options and share appreciation rights exercised	7,722	7,722			7,722
Share-based payment transaction	7,838		7,838		7,838
Dividends declared	(107,254)			(107,254)	(107,254)
Share repurchase	(123,760)	(123,760)			(123,760)
Balance at Mar. 31, 2016	1,919,808	1,320,955	74,262	526,082	1,921,299	(1,491)
Total comprehensive income for the year	40,512		(80,879)	121,458	40,579	(67)
Profit for the year	121,441			121,458	121,458	(17)
Other comprehensive income/(loss)	(80,929)		(80,879)		(80,879)	(50)
Total transactions with owners	(517,389)	(466,610)	2,247	(53,026)	(517,389)	0
Shares issued in relation to share options and share appreciation rights exercised	7,072	7,072			7,072
Share-based payment transaction	2,247		2,247		2,247
Transactions with non-controlling interests			0
Dividends declared	(53,026)			(53,026)	(53,026)
Share repurchase	(473,682)	(473,682)			(473,682)
Balance at Mar. 31, 2017	1,442,931	854,345	(4,370)	594,514	1,444,489	(1,558)
Total comprehensive income for the year	120,625		(60,576)	181,134	120,558	67
Profit for the year	181,193			181,134	181,134	59
Other comprehensive income/(loss)	(60,568)		(60,576)		(60,576)	8
Total transactions with owners	(46,375)	(7,940)	13,332	(53,268)	(47,876)	1,501
Shares issued in relation to share options and share appreciation rights exercised	10,726	10,726			10,726
Share-based payment transaction	9,000		9,000		9,000
Share-based payment — excess tax benefit	5,833		5,833		5,833
Transactions with non-controlling interests	0		(1,501)		(1,501)	1,501
Dividends declared	(53,268)			(53,268)	(53,268)
Share repurchase	(18,666)	(18,666)			(18,666)
Balance at Mar. 31, 2018	R 1,517,181	R 846,405	R (51,614)	R 722,380	R 1,517,171	R 10

XML

Consolidated statement of cash flows - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Cash generated from operations	R 413,025	R 377,115	R 293,808
Interest received	8,576	14,737	7,936
Interest paid	(3,731)	(5,680)	(1,831)
Taxation paid	(64,662)	(62,601)	(59,479)
Net cash generated from operating activities	353,208	323,571	240,434
Cash flows from investing activities
Purchases of property, plant and equipment	(238,646)	(180,230)	(155,584)
Proceeds on sale of property, plant and equipment and intangible assets	4,388	369	633
Purchases of intangible assets	(99,615)	(115,293)	(86,276)
Acquisition of business, net of cash acquired	0	0	(18,000)
Deferred consideration paid	0	(1,103)	(1,361)
Decrease in restricted cash	127	6,951	19,346
Increase in restricted cash	(8,389)	(3,588)	(8,472)
Net cash used in investing activities	(342,135)	(292,894)	(249,714)
Cash flows from financing activities
Proceeds from issuance of shares	10,726	7,072	7,722
Share repurchase	(18,666)	(473,682)	(123,760)
Dividends paid to Company’s owners	(53,201)	(52,966)	(107,150)
Repayments of borrowings	0	0	(41)
Acquisition of non-controlling interest	(1,353)	0	0
Net cash used in financing activities	(62,494)	(519,576)	(223,229)
Net decrease in cash and cash equivalents	(51,421)	(488,899)	(232,509)
Net cash and cash equivalents at the beginning of the year	356,333	860,762	927,415
Exchange (losses)/gains on cash and cash equivalents	(14,374)	(15,530)	165,856
Net cash and cash equivalents at the end of the year	R 290,538	R 356,333	R 860,762

XML

General information

12 Months Ended

Mar. 31, 2018

General Information About Financial Statements [Abstract]

General information

General information

MiX Telematics Limited (the “Company”) is a public company which is incorporated and domiciled in South Africa. The Company’s ordinary shares are publicly traded on the Johannesburg Stock Exchange (JSE: MIX) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE: MIXT). The activities of the Company and its subsidiaries (the “Group”) focus on fleet and mobile asset management solutions delivered as Software-as-a-Service. The address of the Company’s registered office is Matrix Corner, Howick Close, Bekker Road, Waterfall Park, Midrand, South Africa, 1686. The financial statements were approved by the Board of Directors on July 2,2018.

XML

Summary of significant accounting policies

12 Months Ended

Mar. 31, 2018

List Of Accounting Policies [Abstract]

Summary of significant accounting policies

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These accounting policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The annual financial statements of the Group for the year ended March 31, 2018 have been prepared in accordance with:

• International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”);

• IFRS Interpretations Committee (“IFRIC”) interpretations applicable to companies reporting under IFRS;

• SAICA Financial Reporting guides as issued by the Accounting Practices Committee;

• Financial Pronouncements as issued by the Financial Reporting Standards Council (“FRSC”);

• the requirements of the South African Companies Act, No. 71 of 2008; and

• the JSE Listings Requirements.

The financial statements have been prepared in thousands of Rand (R’000) under the historical cost convention except for certain financial instruments that have been measured at fair value.

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements, are disclosed in note 4.

2.1.1 Changes in accounting policy and disclosures

2.1.1.1 New standards, amendments and interpretations adopted by the Group

Standards, amendments and interpretations which are effective for the financial year beginning on or after April 1, 2017 did not have a material impact on the Group.

2.1.1.2     New standards, amendments and interpretations not yet effective

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

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

Standards and amendments	Executive summary
IFRS 9 Financial Instruments (“IFRS 9”)	IFRS 9 addresses classification and measurement of financial assets and replaces the multiple classification and measurement models in IAS 39 Financial Instruments: Recognition and Measurement with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 also introduces a new impairment model and aligns hedge accounting more closely with an entity’s risk management. The standard is effective for the Group from April 1, 2018. The most relevant change to the Group is the requirement to use an expected loss model instead of the incurred loss model, which is currently being used, when assessing the recoverability of trade and other receivables. Based on the expected loss model contained in IFRS 9, the expected increase in the provision for doubtful debts at April 1, 2018 is between R2.0 million and R4.0 million.
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts. It is a single, comprehensive revenue recognition model for all contracts with customers and has the objective of achieving greater consistency in the recognition and presentation of revenue. In terms of the new standard, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of goods or services transfers to a customer. The revenue standard is effective for annual periods beginning on or after January 1, 2018 and therefore is applicable for the Group from April 1, 2018. The standard permits a modified retrospective cumulative catch-up approach for the adoption, which the Group has decided to apply. Under this approach the Group will recognize transitional adjustments in retained earnings on the date of initial application (i.e. April 1, 2018), without restating the comparative period. Under the practical expedient, the new requirements only need to be applied to contracts that are not completed as of April 1, 2018. The Group has assessed the impact of applying IFRS 15 on its financial statements and has identified the following areas that will be affected: Costs incurred in obtaining a contract: Commissions incurred to acquire contracts need to be capitalized and amortized, unless the amortization period is 12 months or less. Currently, the Group expenses commissions. Under IFRS 15, the amortization expense reflects the settlement of the related performance obligations, which, depending on the specific contract, may include hardware, installation, training and/or service. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service will be amortized over the expected life of the contract. The expected impact on the Group at April 1, 2018 is as follows: — Capitalized commission asset with a net book value of between R43.0 million and      R48.0 million; and — Additional recurring commission liability of between R6.0 million and R8.0 million. Recurring commission is commission which is payable for each month the customer remains with the Group. Since the commission relates to acquiring a customer contract, as part of the adoption of IFRS 15, a recurring commission liability will be recognized at the date on which the contract is acquired. The measurement will reflect the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. Under current accounting the recurring commissions are accrued for on a monthly basis. Amortization expense of external commissions capitalized under IFRS 15 will be recognized in cost of sales, while that of internal commissions will be recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient will also be classified in the same manner. This is in line with the current income statement presentation of the commission expense. The impact of IFRS 15 on both cost of sales and sales and marketing costs for fiscal 2019 is not expected to be material based on current forecasts.

Standards and amendments	Executive summary
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	Significant financing: In respect of contracts for which the Group receives payment more than 12 months in advance, interest expense will need to be accrued on the income received in advance liability. This will result in the revenue being measured at a higher amount when it is recognized, compared to current accounting. At April 1, 2018, it is expected that the income received in advance liability (which will be disclosed as ‘liabilities related to contracts with customers’) will be between R1.0 million and R3.0 million higher than the balance at March 31, 2018. Fixed escalations: Fixed escalations will need to be spread evenly over the contract period resulting in the related revenue being different to what is actually billed. In the earlier part of the contract, revenue will be higher than the amount billed, while in the latter part it will be lower. Currently, the Group recognizes the increase in revenue due to fixed escalations only once the escalations are effective. A contract asset of between R1.0 million and R2.0 million is expected to be recognized on April 1, 2018, reflecting the amount by which revenue should have been higher under IFRS 15 in periods prior to March 31, 2018 as a result of straight-lining the fixed escalations.
IFRS 16 Leases (“IFRS 16”)	IFRS 16 replaces IAS 17 Leases and addresses the accounting and disclosures for leases. The standard provides a single lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities for all leases, unless the lease term is 12 months or less or the underlying asset is a low-value asset. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting remaining substantially unchanged from its predecessor, IAS 17. IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019, but can be early adopted. Given that the Group will be applying IFRS 15 from April 1, 2018, the Group decided to also adopt IFRS 16 from this date. The Group has chosen to apply the ‘simplified approach’ on adoption of IFRS 16 that includes certain relief related to the measurement of the right-of-use asset and the lease liability at April 1, 2018, rather than full retrospective application. Furthermore, the ‘simplified approach’ does not require a restatement of comparatives. The Group leases land and buildings, office equipment and vehicles which are currently treated as operating leases. The expected impact on the Group at April 1, 2018 is as follows:   — Right-of-use asset with a net book value of between R29.0 million and R32.0 million; and   — Lease liability (net of accruals/prepayments already recognized) of between R31.0 million      and R35.0 million.

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

IFRS 9 assets	(R2.0 million to R4.0 million)
IFRS 15 assets	R44.0 million to R50.0 million
IFRS 16 assets	R29.0 million to R32.0 million
Total assets	R71.0 million to R78.0 million
IFRS 15 liabilities	R7.0 million to R11.0 million
IFRS 16 liabilities	R31.0 million to R35.0 million
Deferred tax liabilities	R6.0 million to R10.0 million
Total liabilities	R44.0 million to R56.0 million
Net increase in retained income	R22.0 million to R27.0 million

Summary of the expected impact on fiscal 2019 results of adopting IFRS 9, IFRS 15 & IFRS 16:

The impact on profit after tax for fiscal 2019 is not expected to be material.

2.2 Consolidation

(a) Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of financial position, respectively.

(b) Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Group;

• fair value of any asset or liability resulting from a contingent consideration arrangement; and

• fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred, except if related to the issue of equity securities, in which case these costs are also included in equity.

The excess of the:

• consideration transferred;

• amount of any non-controlling interest in the acquired entity; and

• acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognized directly in the income statement as a bargain purchase gain.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of acquisition. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Unwinding of the interest element is recognized in the income statement.

Contingent consideration is measured at fair value on acquisition date and classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in the income statement.

(c) Changes in ownership interests in subsidiaries without a change of control

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group, that is, transactions with the owners in their capacity as owners. For purchases from non-controlling interests, the difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity.

Gains or losses on disposals to non-controlling interests are also recorded in equity.

2.3 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified collectively as the executive committee and the Chief Executive Officer who make strategic decisions.

Sales between segments are carried out at cost plus a margin.

2.4 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in South African Rand (“R”), which is the Group’s presentation currency.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognized in the income statement.

Foreign exchange gains/(losses) are classified as “Finance income/(cost) — net”.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities such as equities classified as available-for-sale, are included in other comprehensive income.

(c) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i) Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

(ii) Income and expenses for each income statement presented are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions);

(iii) All resulting exchange differences are recognized in other comprehensive income; and

(iv) Equity items are measured at historical cost at the time of recording, translated at the rate on the date of the recording and are not retranslated to closing rates at reporting dates.

On consolidation, exchange differences arising from the translation of net investments in foreign operations are recognized in other comprehensive income. When a foreign operation is fully disposed of or sold (i.e., control is lost), exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. A repayment/capitalization of a net investment loan therefore does not result in any exchange differences being transferred from equity to the income statement unless it is part of a transaction resulting in a loss of control.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences are recognized in other comprehensive income.

2.5 Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred.

The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices, is capitalized as property, plant and equipment. The Group depreciates installed in-vehicle devices on a straight-line basis over their expected useful lives, commencing upon installation, whereas uninstalled in-vehicle devices are not depreciated until installed. The related depreciation expense is recorded as part of cost of sales in the income statement.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life, as follows:

Property: Buildings	50 years
Plant and equipment	3 — 20 years
Motor vehicles	3 — 7 years
Other: Furniture, fittings and equipment	1 — 10 years
Computer and radio equipment	2 — 6 years
In-vehicle devices installed	1 — 5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (note 2.7).

Gains and losses on disposal of an asset are determined by comparing the proceeds with the carrying amount and are recognized within “Other income/(expenses) — net” in the income statement.

2.6 Intangible assets

(a) Goodwill

Goodwill arises on the acquisition of businesses and represents the excess of consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the acquirer’s interest in the net fair value of the net assets acquired. Goodwill on acquisition of businesses is included in intangible assets. Gains and losses on the disposal of an entity include the carrying amount of the goodwill relating to the entity sold.

Goodwill is not amortized but is tested annually for impairment, or more frequently if events or changes in circumstances indicate a potential impairment, and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. The carrying amount of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value-in-use and the fair value less costs to sell. Impairment losses recognized as an expense in relation to goodwill are not subsequently reversed.

(b) Patents and trademarks

Separately acquired patents and trademarks are shown at historical cost. Patents and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Patents and trademarks have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of patents and trademarks over their estimated useful lives (three to 20 years).

(c) Customer relationships

Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship (two to 15.5 years) and reflects the pattern in which future economic benefits of the customer relationship are expected to be consumed. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates.

(d) Computer software, technology, in-house software and product development costs

Acquired computer software licenses are capitalized on the basis of costs incurred to acquire and bring the software into use. The acquired computer software licenses have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. These costs are amortized over their estimated useful lives (two to five years).

In-house software and product development costs that are directly attributable to the design, testing and development of identifiable and unique software and products, controlled by the Group, are recognized as intangible assets when the following criteria are met:

• It is technically feasible to complete the software or product so that it will be available for use;

• Management intends to complete the software or product and use or sell it;

• There is an ability to use or sell the software or product;

• It can be demonstrated how the software or product will generate probable future economic benefits;

• Adequate technical, financial and other resources to complete the development and use or sell the software or product are available; and

• The expenditure attributable to the software or product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the intangible assets include software and product development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet the criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period if the criteria are subsequently met.

Costs, including annual licenses, associated with maintaining computer software programs are recognized as an expense as incurred.

Technology, in-house software and product development costs are capitalized on the basis of costs incurred to acquire and bring them into use. The recognized assets have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. In addition, they are amortized over their estimated useful lives (one to 15 years).

2.7 Impairment of non-financial assets

Assets that have an indefinite useful life, goodwill and intangible assets that are not ready to use are not subject to amortization but are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell, and value-in-use. In assessing the value-in-use, the estimated future cash flows are discounted to their present value using the pre-tax discount rate that reflects current market assessments on the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs, i.e. operating segments). Non-financial assets other than goodwill that have suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

2.8 Financial assets

2.8.1 Classification

The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets. The Group’s loans and receivables comprise trade and other receivables, finance lease receivables, restricted cash and cash and cash equivalents in the statement of financial position.

2.8.2 Recognition and derecognition

Regular way purchases and sales of financial assets are recognized on the trade date (the date on which the Group commits to purchase or sell the asset). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

2.8.3 Measurement

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement.

Loans and receivables

Loans and receivables are subsequently carried at amortized cost using the effective interest method, less any impairment losses.

2.8.4 Impairment of financial assets

The Group assesses, at the end of each reporting period, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Loans and receivables

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred), discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the loss is recognized in the income statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the income statement.

2.9 Fair value

Fair value is determined in accordance with IFRS 13 Fair Value Measurement and is categorized as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly (that is, as prices) or indirectly (that is, derived from prices); and

• Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The carrying amounts for cash and cash equivalents, restricted cash, trade and other receivables (excluding pre-payments), trade and other payables (excluding leave pay) and the current portion of leases approximate fair value due to their short-term nature.

2.10 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

2.11 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (“FIFO”), actual cost or weighted average cost basis, depending on the nature of the Group entity in which it is held. The cost of finished goods includes the cost of manufacturing as charged by third parties. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

2.12 Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

2.13 Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flows include cash on hand, deposits held on call with banks and bank overdrafts; all of which are available for use by the Group and have an original maturity of less than three months. Bank overdrafts are included within current liabilities on the statement of financial position.

2.14 Restricted cash

Restricted cash includes short-term deposits and amounts held that are not highly liquid and is accounted for as loans and receivables.

2.15 Stated capital

Ordinary shares are classified as equity. Incremental external costs directly attributable to the issue of new shares or the exercise of share options are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity instruments (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the parent as treasury shares until the shares are canceled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the parent.

2.16 Trade and other payables

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade and other payables are initially recognized at fair value and are subsequently measured at amortized cost using the effective interest method.

2.17 Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset is recognized at the date of derecognition.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale are presented separately from the other assets in the statement of financial position.

2.18 Taxation

2.18.1. Current and deferred income taxes

The tax expense for the year comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. In addition, to the extent the tax deduction in respect of equity-settled share-based payments exceeds the cumulative share-based payment expense, the tax is recognized directly in equity.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; and neither are deferred tax liabilities nor deferred tax assets accounted for if they arise from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized.

Deferred tax (‘outside basis’ deferred tax) relating to temporary differences arising from investments in subsidiaries is considered as follows:

• Deferred tax liabilities are recognized, except to the extent that the Group is able to control the timing of the reversal of the temporary differences, and it is probable that they will not reverse in the foreseeable future.

• Deferred tax assets are recognized only to the extent that it is probable the temporary differences will reverse in the foreseeable future and there is sufficient taxable profit available against which the temporary differences can be utilized.

Temporary differences arising from investments in subsidiaries in the consolidated financial statements are different from those arising in the Company financial statements. This is because in the Company financial statements, an investment in a subsidiary is carried at cost; whereas the carrying amount in the consolidated financial statements is the consolidated net assets of the subsidiary.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

2.18.2. Dividends tax

Dividend withholding tax is currently payable at a rate of 20% (a rate of 15% was applicable for dividends paid before February 22, 2017) on dividends distributed to shareholders. This tax is not attributable to the Company but rather paid to the tax authorities on behalf of the shareholders through use of regulatory intermediaries, with only the net amount of the dividend being remitted to the shareholder.

2.19 Employee benefits

(a) Short-term benefits

Remuneration to employees in respect of services rendered during a reporting period is recognized as an expense in that reporting period. Provision is made for accumulated leave and for short-term benefits when there is no realistic alternative other than to settle the liability, and there is a formal plan and the amounts to be paid are determined before the time of issuing the financial statements.

(b) Defined contribution plan

The Group operates defined contribution plans. A defined contribution plan is one under which the Group pays a fixed percentage of employees’ remuneration as contributions into a separate fund, and the Group will have no further legal or constructive obligations to pay additional contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans in respect of services rendered during a period are recognized as staff costs when they are due.

(c) Short-term incentives — bonus plans

The Group recognizes a liability and an expense for bonuses based on the achievement of defined key performance criteria. An accrual is recognized where the Group is contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and involves payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

2.20 Share-based payments

Equity-settled

The Group operates equity-settled share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments of the Company. The equity instruments that may be issued in terms of the plans include share options, retention shares, performance shares and share appreciation rights. The fair value, determined at grant date, of the employee services received in exchange for the grant of equity instruments is recognized as an expense at Group level with a corresponding credit to equity. The total amount to be expensed is determined by reference to the grant date fair value of the equity instruments granted:

• Including any market performance conditions;

• Excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and

• Including the impact of any non-vesting conditions.

Non-market performance and service conditions are included in the assumptions about the number of equity instruments that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of equity instruments that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding entry to equity.

When equity-settled instruments are exercised, the Company may elect to issue new shares or use treasury shares to settle its resultant obligations. For share options, the proceeds received, net of any directly attributable transaction costs, are credited to stated capital (as there are no par value shares).

The grant by the Company of equity-settled instruments to the employees of subsidiary undertakings in the Group is treated as a capital contribution to those subsidiaries. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity financial statements.

During fiscal 2018, the Company implemented a recharge agreement with its South African subsidiaries, whereby the Company will recharge the relevant subsidiary an amount equal to the market value, at exercise date, of the shares issued to the participants of the plan upon exercise. A recharge asset is recognized in the parent entity financial statements from grant date of the equity-settled instruments for the expected recharge amount based on the proportion of the vesting period that has passed. The expected recharge amount reflects expected attrition and the current share price. The contra entry to the recharge asset is recognized against the relevant investment in subsidiary undertakings as it is considered a return of the afore-mentioned capital contribution. Once the carrying value of an investment in subsidiary undertakings has been reduced to nil, further recharges from that subsidiary are recognized in profit or loss as distributions.

The Group classifies awards issued with settlement alternatives as equity-settled when the Group holds the choice of settlement and there is no past practice of settling in cash. If the counterparty holds the choice of settlement, the award is classified as cash-settled.

Cash-settled

For cash-settled share-based payment transactions, the Group measures goods or services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group shall remeasure the fair value of the liability at each reporting date and at the date of settlement, with any changes in fair value recognized in the income statement.

2.21 Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.

Provisions which are expected to be settled in a period greater than 12 months are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as an interest expense.

Provision for the estimated liability on all products under warranty is made on the basis of claims experience.

Provision for the estimated liability for maintenance costs is made on a per unit basis when the obligation to repair occurs.

Provision for the anticipated costs associated with the restoration of leasehold property (decommissioning provision) is based on the Group’s best estimate of those costs required to restore the property to its original condition.

Restructuring provisions are recognized when the Group has developed a detailed formal plan for restructuring and has raised a valid expectation that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring and is recorded in administration and other charges in the income statement.

2.22 Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course of the Group’s activities. Revenue mainly includes amounts earned on the sale of hardware units, subscription service sales to customers and installation revenue. Revenue is shown net of discounts, value added tax, returns and after eliminating sales within the Group.

The Group offers certain arrangements whereby the customer can purchase a combination of the products and services as referred to above. Where such multiple element arrangements exist, the amount of revenue allocated to each element is based on the relative fair values of the various elements offered in the arrangement. When applying the relative fair value approach, the fair values of each element are determined based on the current market price of each of the elements when sold separately.

The Group recognizes revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities, as outlined below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Invoicing for the various products and services, when sold separately or as part of a multiple element revenue arrangement, occurs based on the specific contractual terms and conditions.

The Group distributes products to certain small fleet operators and consumers through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with the Group for the product. The obligation to supply the service and the credit risk rests with the Group. The service revenue is recognized when the service is rendered (i.e. on a monthly basis).

The Group also sells hardware to motor vehicle dealerships for fitment into their vehicle trading stock. These dealerships purchase the hardware from the Group and are considered principals because they obtain title to the hardware and bear the risks and rewards of ownership. The buyer of the vehicle then enters into a service-only contract with the Group. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer.

The Group distributes products to enterprise fleet customers through dealers. Dealers are considered principals in respect of the sale of hardware and revenue is recognized upon sale of the hardware unit to the dealer. Similar to the relationship with consumers and small fleet customers originated through distributors, the responsibility for providing services rests with the Group and revenue is recognized as the service is rendered.

(a) Subscription revenue

Subscription revenue is recognized over the term of the agreement as it is earned. When contracted services are performed through a number of repetitive acts over the contract period, revenue is recognized on a straight-line basis over the contract period.

(b) Hardware sales

All hardware has value on a standalone basis. Revenue from hardware sales is recognized once the risks and rewards of ownership have transferred.

(c) Driver training and other services

Revenue is recognized at the contractual hourly/daily rate as the training is performed.

(d) Rental revenue

Where hardware is provided as part of a service contract the risk and rewards of ownership do not transfer and service revenue from the rental unit is recognized over the period of the service and included in subscription revenue.

(e) Installation revenue

Revenue earned from the installation of hardware in customer vehicles is recognized once the installation has been completed.

(f) Repair services

Revenue in respect of repair services, which forms part of the monthly subscription, is recognized on a monthly basis over the period of the service arrangement.

2.23 Interest income

Interest income is recognized on a time-proportion basis with reference to the principal amount receivable and the effective interest rate applicable.

2.24 Dividend income

Dividend income is recognized when the right to receive payment is established.

2.25 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

2.25.1. The Group as a lessor

When assets are leased out under a finance lease, the present value of the minimum lease payments is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is recognized as unearned finance income. The method for allocating gross earnings is referred to as the actuarial method. The actuarial method allocates rentals between finance income and repayment of capital in each accounting period in such a way that finance income will emerge as a constant rate of return on the lessor’s net investment in the lease.

Assets leased under operating leases are included under the appropriate category of assets in the statement of financial position. Lease income on operating leases is recognized over the term of the lease on a straight-line basis.

2.25.2. The Group as a lessee

Payments made under operating leases are charged to the income statement on a straight-line basis over the term of the lease.

2.26 Dividend distribution

Any dividend distribution to the Company’s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Company’s Board of Directors.

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Financial risk management

12 Months Ended

Mar. 31, 2018

List Of Accounting Policies [Abstract]

Financial risk management

Financial risk management

3.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets as it relates to financial risks and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out under policies approved by the Board of Directors. The Board has provided approved formal policies covering specific areas, such as foreign exchange risk as well as cash management and banking facilities.

(a) Market risk

(i) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect to the United States Dollar, the South African Rand, the Euro, the Australian Dollar, the Brazilian Real and the British Pound.

Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities and net investments in foreign operations are denominated in a currency that is not the entity’s functional currency.

The Group has implemented a foreign currency hedging policy to limit the Group’s exposure to fluctuations in foreign currencies. The foreign currency policy reduces exchange rate risk on certain recognized assets and liabilities based on economic hedging principles as opposed to using derivative financial instruments.

The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the assets of the Group’s foreign operations is reduced as a result of assets and liabilities being denominated in the same foreign currencies.

As a result of our cash reserves being held in multiple currencies, the Group has significant foreign currency exposure. A financial risk sensitivity analysis is presented in note 36.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

The Group’s cash flow interest rate risk arises from restricted cash, cash and cash equivalents and the bank overdraft. Bank overdrafts issued at variable rates expose the Group to cash flow interest rate risk, which is partly offset by financial assets held at variable rates (i.e. cash and cash equivalents and restricted cash). At March 31, 2018 and 2017 the Group had no interest-bearing borrowings.

The Group is not exposed to fair value interest rate risk as the Group does not have any fixed rate interest-bearing financial instruments carried at fair value.

Interest rates are constantly monitored and appropriate steps are taken to ensure that the Group’s exposure to interest rate fluctuations is limited. This includes obtaining approval from the Board for all changes to and new borrowing facilities entered into. Refer to note 36 for an interest rate risk sensitivity analysis.

(iii) Price risk

Currently the Group does not have significant price risk. The Group is not exposed to commodity price risk.

(b) Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. Credit risk arises from restricted cash, cash and cash equivalents as well as credit exposures to customers. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position, net of impairment losses where relevant.

Credit risk relating to accounts receivable balances is managed by each local entity which is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Group has a policy in place governing the allowance for credit losses.

Cash investments are only placed with reputable financial institutions rated BB and above (note 12). All changes in or new banking arrangements entered into are in line with the Board’s approval framework. Refer to note 10 for further disclosure on credit risk.

(c) Liquidity risk

Liquidity risk is the risk that there will be insufficient funds available to settle obligations when they are due.

The Group has limited liquidity risk due to surplus cash balances and the recurring nature of its income, which generates strong cash inflows. The level of cash balances in the Group is monitored weekly and cash generated from operations is reviewed against planned cash flows on a monthly basis. In addition, working capital reviews are performed monthly.

Surplus cash is invested in interest-bearing current accounts and time deposits that are expected to readily generate cash inflows for managing liquidity risk.

In addition, the Group maintains headroom on its undrawn borrowing facilities to ensure that the Group does not breach borrowing limits on its borrowing facilities. Refer to note 37 for further disclosure on liquidity risk.

3.2 Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern while enhancing the returns for shareholders and ensuring benefits for other stakeholders. The Board of Directors monitors capital by reviewing the net cash position. The Company currently has no long-term borrowings and none of its overdraft facilities, as set out in note 15, were subject to any financial covenants during fiscal 2018 and fiscal 2017.

In order to maintain the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt, where applicable.

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Critical accounting estimates and judgements

12 Months Ended

Mar. 31, 2018

List Of Accounting Policies [Abstract]

Critical accounting estimates and judgements

Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities during fiscal 2018 are outlined below:

(a) Warranty claims

The Group generally offers warranties on its hardware units. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims.

(b) Maintenance provision

The Group, in some instances, offers maintenance services as part of its revenue contracts. Management estimates the related provision for maintenance costs per vehicle when the obligation to repair occurs.

(c) Current and deferred income taxes

The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes. Where applicable tax legislation is subject to interpretation, management makes assessments, based on expert tax advice, of the relevant tax that is likely to be paid and provides accordingly. When the final outcome is determined and there is a difference, this is recognized in the period in which the final outcome is determined.

Determining how much tax to recognize when an uncertain tax position exists requires judgement. The Group applies the measurement principle in IAS 12 Income Taxes, when measuring the amount of tax to recognize related to an uncertain tax position. Therefore, the Group measures uncertain tax positions based on a weighted average estimate, taking into account all of the tax uncertainties related to the tax position taken.

The Company's interests in subsidiaries include certain loans denominated in foreign currencies which are repayable by agreement of both parties. Realization of such loans will result in taxable foreign exchange differences in accordance with prevailing legislation in South Africa. Although the Company controls the timing of the reversal of these temporary differences, given the volatility of the South African Rand and based on the Group's current assessment, it is not considered probable that the temporary difference relating to a loan between the Company and a South Africa subsidiary will not reverse in the foreseeable future. Hence, a deferred tax liability has been recognized in respect of these temporary differences (note 18).

The Group applies judgement when recognizing deferred tax assets in respect of tax losses. Deferred tax assets in respect of tax losses are recognized for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. In determining the level of future taxable profit that will be available the Group considers both an entity's historical profitability and estimates of future profitability and recognizes deferred tax for the whole or the part of the temporary difference that is more likely than not to be recovered. Where an entity has incurred historical losses, deferred tax assets are only recognized when the particular entity has shown a reasonable period of starting to return to profitability.

(d) Impairment estimates

The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 2.7. Other assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

For the purposes of assessing impairment, assets are grouped into CGUs at the lowest levels for which there are separately identifiable cash flows. The recoverable amount is based on the CGU’s value-in-use. These calculations require the use of estimates (see notes 6 and 7).

(e) Customer relationships

The useful life applied principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. An increase in churn rates may lead to a reduction in the estimated useful life.

(f) Product development cost

Product development cost directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recorded as intangible assets by the Group when the criteria in note 2.6 have been met. The assessment as to when these criteria have been met is subjective and capitalization has been based on management’s best judgement of facts and circumstances in existence at year-end.

The useful lives of development costs capitalized are reviewed on an at least annual basis. The useful life estimates are based on historical experience with similar assets as well as anticipation of future events such as technological changes, which may impact the useful life. The residual values of product development costs are estimated to be zero.

(g) Provision for impairment of trade receivables

The provision for impairment of trade receivables reflects the Group’s estimates of losses arising from the failure or inability of the Group’s customers to make required payments. The provision is based on the ageing of customer accounts, customer creditworthiness and the Group’s historical write-off experience. Changes to the allowance may be required if the financial condition of the Group’s customers improves or deteriorates. An improvement in financial condition may result in lower actual write-offs. Historically, changes to the estimate of losses have not been material to the Group’s financial position and results.

(h)    Allocation between in-vehicle devices and inventory

The allocation between in-vehicle devices and inventory reflects the Group’s estimates of how units are expected to be sold, thereby it is a significant area of judgement for the Group.

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Segment information

12 Months Ended

Mar. 31, 2018

Operating Segments [Abstract]

Segment Information

Segment information

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

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

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

The Group’s CODM assesses the performance of the operating segments based on Adjusted EBITDA. Adjusted EBITDA is defined as the profit for the period before income taxes, net finance income/(costs) including foreign exchange gains/(losses), depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development costs and intangible assets identified as part of a business combination, share-based compensation costs, transaction costs arising from the acquisition of a business or investigating strategic alternatives, restructuring costs, profits/(losses) on the disposal or impairments of assets or subsidiaries, insurance reimbursements relating to impaired assets and certain litigation costs.

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2018 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	872,646	84,832	957,478	440,900
Europe	115,199	78,061	193,260	65,326
Americas	194,890	32,715	227,605	79,127
Middle East and Australasia	200,241	78,424	278,665	106,835
Brazil	50,735	3,695	54,430	16,747
Total Regional Sales Offices	1,433,711	277,727	1,711,438	708,935
Central Services Organization	904	140	1,044	(149,878	)
Total Segment Results	1,434,615	277,867	1,712,482	559,057
Corporate and consolidation entries	—	—	—	(117,191	)
Total	1,434,615	277,867	1,712,482	441,866

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2017 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	772,224	86,945	859,169	344,077
Europe	113,223	64,108	177,331	52,369
Americas	121,462	38,957	160,419	26,804
Middle East and Australasia	199,474	104,976	304,450	91,149
Brazil	32,653	5,158	37,811	9,394
Total Regional Sales Offices	1,239,036	300,144	1,539,180	523,793
Central Services Organization	878	—	878	(127,828	)
Total Segment Results	1,239,914	300,144	1,540,058	395,965
Corporate and consolidation entries	—	—	—	(94,352	)
Total	1,239,914	300,144	1,540,058	301,613

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2016 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	711,208	96,699	807,907	320,466
Europe	110,251	51,736	161,987	35,359
Americas	115,413	41,527	156,940	2,908
Middle East and Australasia	202,163	111,764	313,927	107,279
Brazil	18,063	5,066	23,129	1,931
Total Regional Sales Offices	1,157,098	306,792	1,463,890	467,943
Central Services Organization	1,131	—	1,131	(113,403	)
Total Segment Results	1,158,229	306,792	1,465,021	354,540
Corporate and consolidation entries	—	—	—	(77,325	)
Total	1,158,229	306,792	1,465,021	277,215

The revenue from external parties reported to the Group’s CODM is measured in a manner consistent with that in the income statement. There are no material non-cash items provided to the Group’s CODM other than disclosed in the reconciliation of profit for the year to Adjusted EBITDA below.

During fiscal 2018, impairments to capitalized product development costs of R2.3 million within the Africa segment and R0.4 million within the CSO segment were recognized in profit or loss. During fiscal 2017, impairments to capitalized product development costs of R2.6 million within the Africa segment and R0.5 million within the CSO segment were recognized in profit or loss. During fiscal 2017, the Brazil segment recognized a reversal of impairment in respect of in-vehicle devices of R0.8 million in profit or loss. During fiscal 2016, impairments to in-house software of R2.9 million were recognized in profit or loss within corporate and consolidation entries and the Brazil segment recognized an impairment to in-vehicle devices of R1.9 million in profit or loss.

Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s CODM.

A reconciliation of Adjusted EBITDA to profit for the year is disclosed below.

	March 31, 2018		March 31, 2017		March 31, 2016
	R’000		R’000		R’000
Reconciliation of Adjusted EBITDA to profit for the year
Adjusted EBITDA	441,866		301,613		277,215
Add:
Net profit on sale of property, plant and equipment and intangible assets	1,264		—		—
Reversal of impairment(1)	—		791		—
Decrease in restructuring cost provision	741		—		333
Less:
Depreciation(2)	(151,945	)	(98,508	)	(75,037	)
Amortization(3)	(63,926	)	(44,734	)	(47,586	)
Impairment(4)	(2,696	)	(3,166	)	(4,776	)
Share-based compensation costs	(10,352	)	(3,311	)	(5,820	)
Equity-settled share-based compensation costs	(9,000	)	(2,247	)	(7,838	)
Cash-settled share-based compensation costs(5)	(1,352	)	(1,064	)	2,018
Net loss on sale of property, plant and equipment and intangible assets	—		(262	)	(208	)
Increase in restructuring cost provision(6)	—		(14,561	)	—
Transaction costs arising from investigating strategic alternatives(7)	—		—		(5,037	)
Operating profit	214,952		137,862		139,084
Add: Finance (costs)/income — net	(69	)	10,391		150,327
Less: Taxation	(33,690	)	(26,812	)	(106,920	)
Profit for the year	181,193		121,441		182,491

(1) The reversal of impairment of R0.8 million in fiscal 2017 related to in-vehicle devices in the Brazil segment.

(2) Includes depreciation of property, plant and equipment (including in-vehicle devices).

(3) Includes amortization of intangible assets (including capitalized in-house development costs and intangible assets identified as part of a business combination).

(4) In fiscal 2018, asset impairments relate to the impairment of capitalized product development costs of R2.3 million in the Africa segment and R0.4 million in the CSO segment. In fiscal 2017, asset impairments related to the impairment of capitalized product development costs of R2.6 million in the Africa segment and R0.5 million in the CSO segment. In fiscal 2016 includes R2.9 million impairment of in-house software and R1.9 million related to in-vehicle devices.

⁽⁵⁾  Cash-settled share-based payments are described in note 20.

⁽⁶⁾  Restructuring costs incurred in fiscal 2017 are described in note 19.

⁽⁷⁾  Transaction costs incurred in 2016 arising from investigating strategic alternatives are described in note 23.

Revenue generated by the South African-based operating segments of the Group (i.e. Central Services Organization and Africa, excluding East Africa) to its local and foreign-based customers amounted to R931.7 million  (2017: R836.2 million, 2016: R784.5 million) for fiscal 2018, whereas revenue generated by the foreign-based segments of the Group (i.e. Europe, Americas, East Africa, Middle East, Brazil and Australasia) to its local and foreign-based customers amounted to R780.8 million (2017: R703.9 million, 2016: R680.5 million).

Total non-current assets other than financial instruments and deferred tax assets located in South Africa is R615.9 million (2017: R621.0 million, 2016: R533.8 million), and the total of these non-current assets located in foreign countries is R260.8 million (2017: R174.6 million, 2016: R120.8 million). These assets are allocated based on the physical location of the asset and are stated before any inter-company eliminations. The numbers above exclude assets classified as held for sale disclosed in note 6.

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Property, plant and equipment

12 Months Ended

Mar. 31, 2018

Property, plant and equipment [abstract]

Property, plant and equipment

Property, plant and equipment

	Property R’000		Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000		In-vehicle devices installed R’000		Total owned R’000
At April 1, 2016
Cost	22,288		51,474		65,160		61,989		216,862		417,773
Accumulated depreciation and impairments	(4,324	)	(33,759	)	(51,186	)	(387	)	(92,533	)	(182,189	)
Net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Year ended March 31, 2017
Opening net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Additions	—		4,712		6,698		158,600		—		170,010
Transfers	—		—		—		(161,532	)	161,532		—
Reversal of impairment (notes 5, 23, 29, 31.2)	—		—		—		—		791		791
Disposals*	—		(181	)	(80	)	—		(370	)	(631	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(6,759	)	(7,785	)	—		(83,511	)	(98,508	)
Currency translation differences	—		(616	)	(487	)	(3,200	)	(8,823	)	(13,126	)
Closing net book amount	17,511		14,871		12,320		55,470		193,948		294,120
At March 31, 2017
Cost	22,288		48,186		58,048		55,470		333,057		517,049
Accumulated depreciation and impairments	(4,777	)	(33,315	)	(45,728	)	—		(139,109	)	(222,929	)
Net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Year ended March 31, 2018
Opening net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Additions	—		4,090		4,630		229,528		—		238,248
Transfers	—		(613	)	613		(232,050	)	232,050		—
Assets classified as held for sale	(17,058	)	—		—		—		—		(17,058	)
Impairment (notes 5, 23, 29, 31.2)	—		(6	)	(3	)	—		—		(9	)
Disposals**	—		(606	)	(165	)	—		(1,165	)	(1,936	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(5,237	)	(6,772	)	—		(139,483	)	(151,945	)
Currency translation differences	—		(280	)	(253	)	(2,777	)	(24,072	)	(27,382	)
Closing net book amount	—		12,219		10,370		50,171		261,278		334,038

	Property R’000	Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000	In-vehicle devices installed R’000		Total owned R’000
Year ended March 31, 2018
Cost	—	47,066		46,735		50,171	470,545		614,517
Accumulated depreciation and impairments	—	(34,847	)	(36,365	)	—	(209,267	)	(280,479	)
Net book amount	—	12,219		10,370		50,171	261,278		334,038

* The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2017

included R5.2 million relating to plant, equipment, vehicles and other, R10.1 million relating to computer and radio equipment and R31.9 million relating to

in-vehicle devices installed.

** The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2018

included R1.2 million relating to plant, equipment, vehicles and other, R14.7 million relating to computer and radio equipment and R63.9 million relating to

in-vehicle devices installed.

Additions of R238.2 million made in fiscal 2018 include non-cash additions of uninstalled in-vehicle devices of R1.4 million relating to the Central Services Organization segment. R1.9 million was paid in the current fiscal year which related to uninstalled in-vehicle devices which were accrued and accounted for as non-cash additions in fiscal 2017 by the Central Services Organization. Additions of R170 million made in 2017 included non-cash additions of uninstalled in-vehicle devices of R1.7 million and plant, equipment, vehicles and other of R0.2 million relating to the Central Services Organization segment. R12.1 million was paid in fiscal 2017 which related to uninstalled in-vehicle devices which were accrued and accounted for as non-cash additions in fiscal 2016 by the Central Services Organization.

Depreciation expense of R141.6 million (2017: R85.8 million, 2016: R60.2 million) has been charged to cost of sales. The remainder has been included in administration and other charges in the income statement.

During fiscal 2017, a reversal of impairment of R0.8 million in respect of in-vehicle devices which were impaired in fiscal 2016 was recognized in profit or loss by the Brazil segment. The improvement in trading conditions in the Brazil segment resulted in the reassessment of its recoverable amount in fiscal 2017. In fiscal 2017 the assessment indicated that the recoverable amount was higher than its carrying value which led to the aforementioned impairment reversal.

Assets classified as held for sale

The assets classified as held for sale relate to the property held by the CSO segment. No impairment loss was recognized on reclassification of the property as held for sale as the fair value (estimated based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount. Management anticipate that the sale will be completed within 12 months.

	March 31,  2018 R’000	March 31,  2017 R’000
Non-current assets
Property, plant and equipment	334,038	294,120
Current assets
Assets classified as held for sale	17,058	—
Total property, plant and equipment	351,096	294,120

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Intangible assets

12 Months Ended

Mar. 31, 2018

Intangible Assets [Abstract]

Intangible assets

Intangible assets

	Goodwill R’000		Patents and trademarks R’000		Customer relationships R’000		Product development costs R’000		Computer software, technology, in-house software  and other R’000		Total R’000
At April 1, 2016
Cost	654,329		3,036		40,165		206,836		93,801		998,167
Accumulated amortization and impairments	—		(1,413	)	(10,180	)	(76,875	)	(62,848	)	(151,316	)
Net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Year ended March 31, 2017
Opening net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Additions	—		119		—		78,020		41,269		119,408
Disposals*	—		—		—		—		—		—
Amortization charge (notes 23 and 31.2)	—		(816	)	(6,762	)	(28,847	)	(8,309	)	(44,734	)
Impairment loss (notes 5, 23, 29 and 31.2)	—		—		—		(3,166	)	—		(3,166	)
Currency translation differences	(35,419	)	—		—		(179	)	(861	)	(36,459	)
Closing net book amount	618,910		926		23,223		175,789		63,052		881,900
At March 31, 2017
Cost	618,910		3,155		40,165		265,637		130,131		1,057,998
Accumulated amortization and impairments	—		(2,229	)	(16,942	)	(89,848	)	(67,079	)	(176,098	)
Net book amount	618,910		926		23,223		175,789		63,052		881,900
Year ended March 31, 2018
Opening net book amount	618,910		926		23,223		175,789		63,052		881,900
Additions	—		31		5,300		65,342		23,965		94,638
Transfers	—		—		—		(365	)	365		—
Disposals**	—		—		—		(1,188	)	—		(1,188	)
Amortization charge (notes 23 and 31.2)	—		(513	)	(7,516	)	(37,639	)	(18,258	)	(63,926	)
Impairment loss (notes 5, 23, 29, 31.2)	—		—		—		(2,687	)	—		(2,687	)
Currency translation differences	(7,266	)	—		(356	)	(235	)	(2,353	)	(10,210	)
Closing net book amount	611,644		444		20,651		199,017		66,771		898,527
At March 31, 2018
Cost	611,644		1,031		44,990		312,338		145,387		1,115,390
Accumulated amortization and impairments	—		(587	)	(24,339	)	(113,321	)	(78,616	)	(216,863	)
Net book amount	611,644		444		20,651		199,017		66,771		898,527

* The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2017 year included R16.4 million relating to product development costs andR1.7 million relating to computer software, technology, in-house software and other.

** The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2018 year included R2.2 million relating to patents and trademarks, R13.9 million relating to product development costs and R4.3 million relating to computer software, technology, in-house software and other.

In fiscal 2018, staff costs of R46.4 million (2017: R54.6 million, 2016: R45.2 million) have been capitalized to product development costs. In fiscal 2018, no staff costs were capitalized to in-house software (2017: R1.6 million, 2016: R1.3 million).

Additions of R94.6 million were made during fiscal 2018. In addition, R1.9 million relating to capitalized development costs and R3.1 million related to computer software, technology, in-house software and other intangibles were paid in the current fiscal year which were accrued and accounted for as non-cash additions in 2017. Additions of R119.4 million made during 2017 included non-cash additions of R5.0 million as described above. R0.9 million relating to capitalized development costs were paid in fiscal 2017 which were accrued and accounted for as non-cash additions in 2016.

Amortization expense of R44.1 million (2017: R30.1 million, 2016: R24.9 million) has been charged to cost of sales. The remainder has been included in administration and other charges in the income statement.

During fiscal 2018, impairments to capitalized product development costs of R0.4 million within the CSO segment and R2.3 million within the Africa segment were recognized in profit or loss. During fiscal 2017, impairments to capitalized product development costs of R0.5 million within the CSO segment and R2.6 million within the Africa segment were recognized in profit or loss. The impairment losses have been included in administration and other charges in the income statement.

Included in product development costs is product development assets in progress with a net book amount of R32.1 million (2017: R51.1 million, 2016: R43.6 million). Computer software, technology, in-house software and other included no internally generated in-house software in progress (2017: R42.8 million, 2016: R18.3 million).

Change in estimate of useful lives of product development costs capitalized

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

Year ended March 31,
	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028
R’000	1,694	611	748	457	334	303	158	106	106	27

Impairment tests for goodwill

Goodwill is allocated to the Group’s CGUs identified within its operating segments. It should be noted that, as disclosed in note 5, while CSO is reported as a reportable segment excluding any inter-company revenue and related costs, it remains a CGU, as there remains an active market for the output produced by CSO. The impairment tests for goodwill have been performed on the same basis as the previous financial years.

A summary of the goodwill at operating segment level is presented below:  

	March 31,  2017 R’000	Foreign currency translation differences R'000		March 31,  2018 R’000
Central Services Organization	103,119	—		103,119
Europe	109,610	(986	)	108,624
Middle East and Australasia	53,131	(6,280	)	46,851
Africa	353,050	—		353,050
Total	618,910	(7,266	)	611,644

The recoverable amounts of all CGUs are determined based on value-in-use calculations, which use pre-tax cash flow projections based on approved financial budgets covering a three to five-year period. A five-year period was used to ensure that in respect of the Europe and Middle East and Australasia segments, stable cash flows are used for purposes of calculating terminal values included in the value-in-use calculations. These cash flows are based on the current market conditions and near-term expectations.

The key assumptions used for the value-in-use calculations are as follows:

2018	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.1	17.3	9.2	13.3
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.4	5.4	2.2	2.9

2017	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.6	18.6	9.8	16.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.5	5.5	2.3	2.5

The discount rates were calculated using the capital asset pricing model. These rates reflect specific risks relating to the relevant CGUs. The growth rate has been determined based on the expected long-term inflation outlook.

Goodwill sensitivity

Given the significant headroom that exists in the CGUs, management believes that a reasonable change in assumptions would not result in any goodwill impairments.

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Finance lease receivable

12 Months Ended

Mar. 31, 2018

Leases 1 [Abstract]

Finance lease receivable

Finance lease receivable

	March 31,  2018 R’000	March 31,  2017 R’000
Total finance lease receivable	—	162
Short-term portion receivable within 12 months	—	140
Long-term portion receivable after 12 months	—	22

The Group had entered into certain finance lease arrangements with customers to supply fleet management products and services. The terms of the leases varied between 24 and 36 months and the leases were denominated in Euro. The unguaranteed residual values of the assets leased under finance lease were considered negligible.  

At March 31, 2017 the finance lease receivables were neither past due nor impaired and were fully settled at March 31, 2018. In determining the recoverability of the finance lease receivables, the Group considered any change in the credit quality of the finance lease receivable from the date the leases were initially entered into until the end of the fiscal 2017 reporting year.

	March 31,  2018 R’000	March 31,  2017 R’000
Gross finance lease receivable – minimum lease payments:
Not later than one year	—	145
Later than one year but not later than five years	—	22
	—	167
Unearned finance income	—	(5	)
Net investment in finance leases	—	162

The net investment in finance leases may be analyzed as follows:

	March 31,  2018 R’000	March 31,  2017 R’000
Not later than one year	—	140
Later than one year but not later than five years	—	22
Net investment in finance leases	—	162

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Inventory

12 Months Ended

Mar. 31, 2018

Inventories [Abstract]

Inventory

Inventory

	March 31,  2018 R’000	March 31,  2017 R’000
Inventory – finished goods	57,013	26,449

During the current year an amount of R9.3 million (2017: R10.0 million) was recognized as a charge in cost of sales as a result of the write-down of inventory to net realizable value (notes 23 and 31.2).

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Trade and other receivables

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Trade and other receivables

Trade and other receivables

	March 31,  2018 R’000		March 31,  2017 R’000
Trade receivables	248,878		220,402
Less: Provision for impairment of trade receivables	(17,523	)	(8,783	)
Trade receivables — net	231,355		211,619
Pre-payments	27,240		24,772
Sundry debtors	27,811		24,185
	286,406		260,576

The ageing of trade receivables at the reporting date is as follows: 

	Gross R’000	Provision for impairment R’000		Net R'000
2018
Not past due	145,346	(334	)	145,012
Past due by 1 to 30 days	51,844	(2,518	)	49,326
Past due by 31 to 60 days	24,763	(3,732	)	21,031
Past due by more than 60 days	26,925	(10,939	)	15,986
Total	248,878	(17,523	)	231,355

	Gross R’000	Provision for impairment R’000		Net R'000
2017
Not past due	129,121	(920	)	128,201
Past due by 1 to 30 days	54,340	(1,350	)	52,990
Past due by 31 to 60 days	20,999	(1,854	)	19,145
Past due by more than 60 days	15,942	(4,659	)	11,283
Total	220,402	(8,783	)	211,619

The trade receivables above, which are past due and not impaired, relate to a number of independent customers for whom there is no recent history of default. As at March 31, 2018, sundry debtors are neither past due nor impaired.

The carrying amounts of trade and other receivables are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000
South African Rand	98,148	80,037
Australian Dollar	24,016	21,754
Brazilian Real	19,129	15,684
Euro	28,192	24,411
Great Britain Pound	18,883	18,535
United Arab Emirates Dirham	2,578	3,354
United States Dollar	91,105	94,441
Other	4,355	2,360
	286,406	260,576

Movements in the Group’s provision for impairment of trade and other receivables are as follows:

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(13,346	)	(12,438	)
Increase in provision for impairment (note 31.2)	(24,143	)	(17,713	)
Receivables written off during the year as irrecoverable — net	19,354		16,429
Foreign currency translation differences	612		376
Closing balance	(17,523	)	(13,346	)
The Group’s provision for impairment of trade and other receivables includes:
Trade receivables	(17,523	)	(8,783	)
Sundry debtors	—		(4,563	)
Closing balance	(17,523	)	(13,346	)

The creation of the provision for impairment of trade and other receivables is included in administration and other charges in the income statement. In determining the recoverability of a receivable, the Group considers any change in the credit quality of the receivable from the date credit was initially granted until the end of the reporting year. Amounts provided for are generally written off when there is no expectation of recovering the amount.

A single sundry debtor of R4.6 million which was past due and fully impaired in fiscal 2017 was recovered in fiscal 2018.

Trade receivables of R17.9 million (2017: R11.1 million) are pledged as security for the Group’s overdraft facilities (note 12, 15).

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. Other than 11% of the gross receivable balance relating to two debtors at the end of fiscal 2018 (2017: 11% of the gross receivable balance relating to two debtors), the Group has no significant concentration of credit risk, due to its spread of customers across various operations and geographical locations. The Group does not hold any collateral as security.

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Restricted cash

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Restricted cash

Restricted cash

	March 31,  2018 R’000	March 31,  2017 R’000
Cash securing guarantee issued in terms of the Mobile Telephone Networks Proprietary Limited incentive agreement (denominated in South African Rand)	1,000	1,000
Cash securing guarantees issued in respect of lease agreements entered into (denominated in South African Rand)	393	393
Tax refund received erroneously (denominated in South African Rand)	7,188	—
Cash securing guarantees issued in respect of products sold by MiX Telematics Europe Limited (denominated in Euro)	1,447	1,422
Cash securing guarantees issued in respect of MiX Telematics Middle East FZE relating to employee visas in the UAE (denominated in UAE Dirham)	3,616	4,192
Cash held for purposes of distribution to MiX Telematics Enterprise BEE Trust and MiX Telematics Fleet Support Trust beneficiaries (denominated in South African Rand)	6,257	5,118
Cash securing guarantees issued in respect of property lease agreements entered into by MiX Telematics Australasia (denominated in Australian Dollar)	1,034	1,143
	20,935	13,268

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Net cash and cash equivalents

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Net cash and cash equivalents

Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flow comprise the following amounts which are included in the statement of financial position:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Cash and cash equivalents	308,258		375,782		877,136
Bank overdraft (note 15)	(17,720	)	(19,449	)	(16,374	)
	290,538		356,333		860,762

The credit quality of cash and cash equivalents that are not impaired can be assessed by reference to external credit ratings, based on the Fitch rating scales, as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Cash and cash equivalents
AA	110,854	197,873	743,600
A	82,738	78,605	48,757
BBB	33,962	99,304	84,779
BB	80,704	—	—
	308,258	375,782	877,136

The carrying amounts of net cash and cash equivalents are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Great Britain Pound	37,209	48,540	45,017
Brazilian Real	3,787	2,987	3,625
South African Rand	171,223	100,721	87,675
Australian Dollar	22,912	19,574	25,451
United States Dollar	48,354	178,768	698,166
Euro	4,300	4,649	(55	)
Other	2,753	1,094	883
	290,538	356,333	860,762

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Stated capital

12 Months Ended

Mar. 31, 2018

Stated Capital [Abstract]

Stated capital

Stated capital

	Number of shares 000s		Stated capital R’000
At April 1, 2016	759,138		1,320,955
Shares issued in relation to share options exercised	5,125		7,072
Share repurchase from Imperial Corporate Services Proprietary Limited	(200,828	)	(473,682	)
Balance at March 31, 2017	563,435		854,345
Shares issued in relation to share options and share appreciation rights exercised	6,001		10,726
Share repurchase under the Share Repurchase Program	(5,016	)	(18,666	)
Balance at March 31, 2018	564,420		846,405

Thetotal authorized number of ordinary shares at the end of the financial year amounted to 1 billion shares (2017: 1 billion) with no par value. All issued shares are fully paid up and carry one vote per share and the right to dividends. There were no changes to the authorized number of ordinary shares during the current or prior financial year.

In terms of a special resolution approved in fiscal 2014 a new class of no par value shares, consisting of 100 million preference shares, was created. No preference shares have been issued to date.

Share repurchases

Fiscal 2018

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

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

	Total number of shares repurchased 000s	Average price paid per share (1) R	Shares canceled under the share repurchase program 000s	Total value of shares purchased as part of publicly announced program R’000	Maximum value of shares that may yet be purchased under the program R’000
June 2017	5,015,660	3.72	5,015,660	18,666	251,334
	5,015,660		5,015,660	18,666	251,334

⁽¹⁾ Including transaction costs.

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

Fiscal 2017

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

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

	R’000
Aggregate repurchase consideration	473,955
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 25)	(3,222	)
Transaction costs capitalized	2,949
Total share repurchase costs	473,682

Equity incentive plans

The Group has issued share incentives under two equity incentive plans, the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), to directors and certain key employees within the Group. With the introduction of the LTIP, which was approved by shareholders in terms of an ordinary resolution during 2014, no further awards will be made in terms of the TeliMatrix Group Limited Executive Incentive Scheme going forward.

The LTIP is now being used to issue share incentives to employees and executive members within the Group. The LTIP provides for three types of grants to be issued, namely performance shares, retention shares or share appreciation rights (“SARs”). To date only SARs have been issued.

The table below indicates the total number of awards under the LTIP which are available for issue:

	Number of awards
Reconciliation of number of awards available for issue under the LTIP
Maximum number of awards that may be issued during the life of the LTIP	120,000,000
Issued in fiscal 2015	(2,900,000	)
Number of awards available for issue as at March 31, 2015	117,100,000
Issued in fiscal 2016	(11,835,000	)
Number of awards available for issue as at March 31, 2016	105,265,000
Issued in fiscal 2017	(13,950,000	)
Number of awards available for issue as at March 31, 2017	91,315,000
Issued in fiscal 2018	(10,000,000	)
Number of awards available for issue as at March 31, 2018	81,315,000

Both equity incentive plans are discussed in further detail in the sections that follow.

Share options under the TeliMatrix Group Executive Incentive Scheme

Share options have been granted to directors and certain key employees within the Group. The exercise price of the options granted is equal to the weighted average market value of ordinary shares for the 20 days preceding the date of the grant. The options vest in tranches of 25% per annum, commencing on the second anniversary of the grant date and expire 6 years after the grant date. In addition to these vesting periods, the vesting of the share options granted are conditional on certain performance conditions being met, namely the share price on the associated measurement date being in excess of the target, after being reduced by the aggregate amount of dividends paid, or an annual total shareholder return in excess of 10% and 5%, taking into account any dividends paid during the vesting period, being achieved. The Group has no legal or constructive obligation to repurchase or settle the options in cash.

Movements in the total number of share options outstanding and their related weighted average exercise prices are as follows: 

	Weighted average exercise price 2018 cents per share	Number  of options 2018 000s		Weighted average exercise price 2017 cents per share	Number  of options 2017 000s
Outstanding at the beginning of the year	266	14,613		235	28,913
Exercised	195	(5,513	)	138	(5,125	)
Forfeited	—	—		312	(5,875	)
Expired	—	—		112	(3,300	)
Outstanding at the end of the year	309	9,100		266	14,613
Exercisable at the end of the year	285	7,350		217	8,825

The weighted average remaining contractual life on share options outstanding at year-end is 1.31 years (2017: 1.87 years).

Options exercised in 2018 resulted in 5,512,500 shares (2017: 5,125,000 shares) being issued at a weighted average exercise price of 195 cents per share (2017: 138 cents per share). The related weighted average share price at the time of exercise was608 cents per share (2017: 307 cents per share).

Refer to note 23 for the total expense recognized in fiscal year 2018 in respect of equity-settled instruments granted to employees and directors.

Share options outstanding at the end of the fiscal year have the following exercise prices: 

					March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Exercise price
5%	September 13, 2011	September 13, 2017	130	cents	—	263
10%	January 3, 2012	January 3, 2018	154	cents	—	2,750
10%	November 7, 2012	November 7, 2018	246	cents	5,600	8,100
10%	September 10, 2014	September 10, 2020	411	cents	3,500	3,500
					9,100	14,613

Noshare options were granted during fiscal 2018 or fiscal 2017 under this scheme.

Share appreciation rights

Under the LTIP, SARs may be issued to certain directors and key employees. The award price of the SARs granted is equal to the closing market value of ordinary shares on the day preceding the date of the grant. The SARs granted vest in tranches of 25% per annum, commencing on the second anniversary of the grant date and expire six years after the grant date. In addition to these vesting periods, the vesting of the SARs granted are conditional on a performance condition of an annual total shareholder return in excess of 10%, taking into account any dividends paid during the vesting period, being achieved.

Upon exercise of the SARs by participants, the Group will settle the value of the difference between the award and grant price by delivering shares, alternatively as a fall back provision only, by settling the value in cash.

Movements in the total number of SARs outstanding and their related weighted average award prices are as follows:

	Weighted average award price 2018 cents per share	Number of options 2018 000s		Weighted average award price 2017 cents per share	Number of options 2017 000s
Outstanding at the beginning of the year	309	20,810		311	14,435
Granted on May 30, 2016	—	—		294	9,950
Granted on November 24, 2016	—	—		328	4,000
Granted on May 30, 2017	346	10,000		—	—
Exercised	310	(1,709	)	—	—
Forfeited	314	(1,062	)	303	(7,575	)
Outstanding at the end of the year	322	28,039		309	20,810
Exercisable at the end of the year	313	1,306		305	725

The weighted average remaining contractual life on SARs outstanding at year-end is 4.38 years (2017: 4.88).

SARs exercised in 2018 resulted in 1,708,750 awards (2017: Nil) being issued at a weighted average exercise price of 310 cents per award (2017: nil). The related weighted average share price at the time of exercise was 464 cents per award (2017: nil).

No SARs were exercised by Group executives during fiscal 2018 and fiscal 2017.

SARs outstanding at the end of the fiscal year have the following award prices:

				March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Award price
10%	December 16, 2014	December 16, 2020	305	—	725
10%	August 31, 2015	August 31, 2021	313	7,764	9,160
10%	May 30, 2016	May 30, 2022	294	6,525	6,925
10%	November 24, 2016	November 24, 2022	328	4,000	4,000
10%	May 30, 2017	May 30, 2023	346	9,750	—
				28,039	20,810

The weighted average fair value of SARs granted during fiscal 2018 and fiscal 2017 was determined using a combination of the Monte Carlo Simulation option pricing model and the Binomial Tree option pricing model. The key drivers and assumptions input into the valuation models used to determine these values are disclosed below.

The volatility was calculated using a mixture of the Company's historical data as well as the share data of comparable companies for grants made in all financial years preceding 2018 and the Company's historical share data for grants made in the current year.

The salient details of SARs granted during fiscal 2018 are provided in the table below: 

	Total shareholder return
Grant date	May 30, 2017
Fair value (cents per share)	128.4
Award price (cents per share)	346
JSE share price on grant date (cents per share)	345
Expiry date	May 30, 2023
Performance conditions
– Total shareholder return of (%)	10.0
Remaining contractual life at March 31, 2018	5.17
Valuation assumptions and drivers
Volatility (%)	41.5
Anticipated forfeiture rate (%)	5.0
Anticipated dividend yield (%)	3.84
Annual risk-free interest rate (%)	7.51

The salient details of SARs granted during fiscal 2017 are provided in the table below:

	Total shareholder return	Total shareholder return
Grant date	November 24, 2016	May 30, 2016
Fair value (cents per share)	131.5	111.9
Award price (cents per share)	328	294
JSE share price on grant date (cents per share)	328	289
Expiry date	November 24, 2022	May 30, 2022
Performance conditions
– Total shareholder return of (%)	10.0	10.0
Remaining contractual life at March 31, 2018	4.65	4.17
Valuation assumptions and drivers
Volatility (%)	41.8	40.3
Anticipated forfeiture rate (%)	5.0	5.0
Anticipated dividend yield (%)	2.98	3.57
Annual risk-free interest rate (%)	8.20	8.74

Refer to note 23 for the total expense recognized in fiscal 2018 in respect of equity-settled instruments granted to employees and directors.

Group executives held the following share options outstanding at March 31, 2018 (summarized by grant date):

	November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	2,500		—		2,500
C Tasker(1)	2,000		1,500		3,500
G Pretorius	1,100		1,000		2,100
C Lewis	—		1,000		1,000
	5,600		3,500		9,100
Option strike price (cents per share)	246		411
JSE share price on grant date (cents per share)	300		411
Expiry date	November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

Group executives held the following SARs outstanding at March 31, 2018 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		May 30, 2017 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		1,100		3,100
C Tasker(1)	750		750		875		1,100		3,475
P Dell(1)	200		200		875		1,100		2,375
G Pretorius	500		500		875		1,100		2,975
C Lewis	500		500		875		1,100		2,975
	2,950		2,950		3,500		5,500		14,900
JSE share price on grant date (cents per share)	319		289		328		345
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022		May 30, 2023
Performance condition
Minimum shareholder return of	10	%	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

No options were held by retired executives as at March 31, 2018.

The following share options were exercised by Group executives during fiscal 2018:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
C Tasker	November 29, 2017	2,000,000	January 3, 2012	154	10	%	628
G Pretorius	August 8, 2017	400,000	November 7, 2012	246	10	%	451
G Pretorius	November 22, 2017	750,000	January 3, 2012	154	10	%	648
C Lewis	March 2, 2018	1,500,000	November 7, 2012	246	10	%	600

Group executives held the following share options outstanding at March 31, 2017 (summarized by grant date):

	January 3, 2012 000s		November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	—		2,500		—		2,500
C Tasker(1)	2,000		2,000		1,500		5,500
G Pretorius	750		1,500		1,000		3,250
C Lewis	—		1,500		1,000		2,500
	2,750		7,500		3,500		13,750
Option strike price (cents per share)	154		246		411
JSE share price on grant date (cents per share)	160		300		411
Expiry date	January 3, 2018		November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

Group executives held the following SARs outstanding at March 31, 2017 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		2,000
C Tasker(1)	750		750		875		2,375
P Dell(1)	200		200		875		1,275
G Pretorius	500		500		875		1,875
C Lewis	500		500		875		1,875
	2,950		2,950		3,500		9,400
JSE share price on grant date (cents per share)	319		289		328
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

In respect of R Botha who retired on May 31, 2015, the Board had resolved, as permitted by the share plan rules, that the options not exercised by this former executive prior to the retirement date could be exercised upon vesting before the expiry date of the option.

No options were held by retired executives as at March 31, 2017.

The following share options were exercised by Group executives during fiscal 2017:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
M Pydigadu(1)	May 30, 2016	600,000	June 4, 2010	112	10	%	289
M Pydigadu(1)	November 07, 2016	750,000	November 07, 2012	246	10	%	323
S Joselowitz	June 03, 2016	1,500,000	June 4, 2010	112	10	%	301
B Horan(2)	June 07, 2016	250,000	January 3, 2012	154	10	%	300

⁽¹⁾ Resigned as at February 9, 2017.

⁽²⁾ Resigned as at September 30, 2016.

The following share options were exercised during fiscal 2017 by retired Group executives:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
R Botha	June 1, 2016	1,375,000	June 4, 2010	112	10	%	308

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Other reserves

12 Months Ended

Mar. 31, 2018

Share Capital, Reserves And Other Equity Interest [Abstract]

Other reserves

Other reserves

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(4,370	)	74,262
Foreign currency translation*	(60,576	)	(80,879	)
– Movement for the year — Gross	(60,339	)	(80,820	)
– Tax effect of movement	(237	)	(59	)
Share-based payments (notes 23 and 31.2)	14,833		2,247
– Transaction	9,000		2,247
– Excess tax benefit	5,833		—
Transaction with non-controlling interests**	(1,501	)	—
Closing balance	(51,614	)	(4,370	)
Foreign currency translation*	42,226		102,802
Reserve on transaction with non-controlling interest**	(138,939	)	(137,438	)
Share-based payments	45,099		30,266
Closing balance	(51,614	)	(4,370	)

* T​he foreign currency translation reserve mainly results from the translation of the Group's foreign subsidiaries for

which it is considered probable that temporary differences will not reverse in the foreseeable future. Refer to note 18

for details about deferred taxes recognized for related temporary differences.

** During fiscal 2008, the Group acquired a non-controlling equity interest held by a minority shareholder in one of its

subsidiaries in exchange for a share consideration. R137.9 million (2017: R137.9 million) of the reserve represents

the difference between the consideration paid and the Group’s share in the net asset value of the subsidiary acquired

which has been recorded in equity. The reserve on transaction with non-controlling interests represented the transfer

of Edge Gestao Empresarial Ltda's (“Edge”) share of the historical losses of MiX Telematics Servicos De Tlematria

E Rastremento De Veiculos Do Brazil Limitada (“MiX Brazil”) from distributable reserves to non-controlling interests.

R0.5 million, representing a reduction of the reserve, relates to the transaction with Edge in fiscal 2015, whereby Edge

increased its non-controlling interest in MiX Brazil from 0.0025% to 5.0%. R1.5 million of the non-controlling interest

relates to the acquisition of Edge's 5% interest in MiX Brazil by MiX Investments (Proprietary) Limited (“MiX Investments”)

during fiscal 2018 (note 20).

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Borrowings

12 Months Ended

Mar. 31, 2018

Borrowings [abstract]

Borrowings

Borrowings

The Group and its subsidiaries have unlimited borrowing capacity as specified in their respective Memorandums of Incorporation.

Other than bank overdrafts, no new borrowings were raised by the Group during fiscal 2018 and fiscal 2017.

	Interest rate	March 31,  2018 R’000	March 31,  2017 R’000
Undrawn borrowing facilities at floating rates include:
— Standard Bank Limited:
Overdraft	Prime less 1.2%	52,280	50,551
Vehicle and asset finance	Prime less 1.2%	8,500	8,500
— Nedbank Limited overdraft	Prime less 2%	10,000	10,000
		70,780	69,051

The Standard Bank and Nedbank facilities have no fixed renewal date and are repayable on demand.

Included in the bank overdraft (note 12) is the following Standard Bank Limited facility which was secured by the following at March 31, 2018 and at March 31, 2017:

•cross suretyships between the following Group companies:

– MiX Telematics Africa Proprietary Limited;

– MiX Telematics International Proprietary Limited; and

– MiX Telematics Limited.

• an unrestricted cession of book debts by the following entities:

– MiX Telematics Limited; and

– MiX Telematics International Proprietary Limited.

The facility from Nedbank Limited is unsecured.

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Trade and other payables

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Trade and other payables

Trade and other payables

	March 31,  2018 R’000	March 31,  2017 R’000
Trade payables	98,094	79,892
Accruals	176,963	152,323
Revenue received in advance	66,120	62,990
Value added taxes	6,646	6,624
Other	2,696	7,281
	350,519	309,110

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Retirement benefits

12 Months Ended

Mar. 31, 2018

Employee Benefits [Abstract]

Retirement benefits

Retirement benefits

It is the policy of the Group to provide retirement benefits to all its South African, United Kingdom, United States, Brazilian, Romanian and Australian employees. All these retirement benefits are defined contribution plans and are held in separate trustee-administered funds. These plans are funded by members as well as company contributions. The South African plan is subject to the Pension Funds Act of 1956, the UK plan is subject to the United Kingdom Pensions Act 2008 and the Australian plan is subject to the Superannuation Guarantee Administration Act of 1992. In Brazil, the Group contributes to a mandatory state social contribution plan known as Regime Geral de Previdência Social (“RGPS”). In Romania there is a mandatory social security contribution paid to the state budget, as defined by the Pension Law (Law 263/2010) and the Fiscal Code (Law 227/2015). For the United States employees, a voluntary Internal Revenue Service section 401(k) tax-deferred defined contribution scheme is offered. The full extent of the Group’s liability, in respect of the retirement benefits offered, is the contributions made, which are charged to the income statement as they are incurred. The total Group contribution to such schemes in 2018 was R27.1 million (2017: R29.4 million, 2016: R27.1 million) (note 23).

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Deferred tax

12 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Deferred tax

Deferred tax

	March 31,  2018 R’000		March 31,  2017 R’000
Deferred tax liabilities
Capital allowances for tax purposes	42,828		33,616
Intangible assets	57,084		49,807
Pre-payments	2,857		2,815
Deferred foreign currency gains	33,858		61,616
Other	887		1,106
Gross deferred tax liabilities	137,514		148,960
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax liabilities	82,658		100,067
Deferred tax assets
Revenue received in advance	15,730		14,304
Capital allowances for tax purposes	30,556		22,107
Provisions, accruals and lease straight-lining	33,910		28,731
Assessable losses	5,892		10,736
Share-based payments	8,187		—
Other	1,298		1,145
Gross deferred tax assets	95,573		77,023
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax assets	40,717		28,130
Net deferred tax liability	(41,941	)	(71,937	)
The gross movement in net deferred tax assets/(liabilities) is as follows:
Beginning of the year	(71,937	)	(90,976	)
Foreign currency translations	(578	)	(878	)
Credited/(charged) to equity (note 14)	5,596		(59	)
Income statement charge (note 28)	24,978		19,976
End of the year	(41,941	)	(71,937	)

Deferred foreign currency gains

Deferred foreign currency gains comprise of taxable temporary differences arising on investments in subsidiaries in respect of which deferred tax has been recognized.

Recognition of deferred tax

Deferred tax at year-end has been recognized using the following corporate tax rates:

• South Africa 28% (2017: 28%)

• Australia 30% (2017: 30%)

• Brazil 34% (2017: 34%)

• Romania 16% (2017: 16%)

• Thailand 20% (2017: 20%)

• Uganda 30% (2017: 30%)

• United Arab Emirates 0% (2017: 0%)

• United Kingdom 19% (2017: 19%)

• United States of America 27% (2017: 34%)

Deferred tax assets are recognized for tax losses carried forward to the extent that the realization of the related tax benefit through future taxable profits is probable. The Group did not recognize deferred tax assets of R61.3 million (2017: R34.3 million) in respect of losses amounting to R237.3 million (2017: R133.8 million) at year-end. During fiscal 2018 the Group raised a further deferred tax asset of R0.6 million (2017: R5.3 million) in respect of a portion of the tax losses available in the Europe segment. These tax losses were incurred in prior years. Since fiscal 2015, the entity started returning to profitability resulting in a reassessment of its ability to utilize the tax losses and the recognition of a deferred tax asset for a portion thereof since fiscal 2017.

The movement in deferred tax assets and liabilities during the year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2017		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2018
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	33,616		9,185		—		27		42,828
Intangible assets	49,807		7,279		—		(2	)	57,084
Pre-payments	2,815		68		—		(26	)	2,857
Deferred foreign currency gains	61,616		(28,318	)	237		323		33,858
Other	1,106		105		—		(324	)	887
	148,960		(11,681	)	237		(2	)	137,514
Deferred tax assets
Revenue received in advance	(14,304	)	(1,426	)	—		—		(15,730	)
Capital allowances for tax purposes	(22,107	)	(8,503	)	—		54		(30,556	)
Provisions, accruals and lease straight-lining	(28,731	)	(5,572	)	—		393		(33,910	)
Assessable losses	(10,736	)	4,713		—		131		(5,892	)
Share-based payments	—		(2,354	)	(5,833	)	—		(8,187	)
Other	(1,145	)	(155	)	—		2		(1,298	)
	(77,023	)	(13,297	)	(5,833	)	580		(95,573	)
Net deferred tax liability	71,937		(24,978	)	(5,596	)	578		41,941

The movement in deferred tax assets and liabilities during the prior year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2016		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2017
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	27,603		6,013		—		—		33,616
Intangible assets	39,088		10,721		—		(2	)	49,807
Pre-payments	1,970		845		—		—		2,815
Deferred foreign currency gains	87,878		(25,834	)	(428	)	—		61,616
Other	1,268		(163	)	—		1		1,106
	157,807		(8,418	)	(428	)	(1	)	148,960
Deferred tax assets
Revenue received in advance	(13,166	)	(1,138	)	—		—		(14,304	)
Capital allowances for tax purposes	(25,609	)	3,478		—		24		(22,107	)
Provisions, accruals and lease straight-lining	(25,617	)	(3,495	)	—		381		(28,731	)
Assessable losses	(1,043	)	(10,178	)	—		485		(10,736	)
Deferred foreign currency losses	(487	)	—		487		—		—
Other	(909	)	(225	)	—		(11	)	(1,145	)
	(66,831	)	(11,558	)	487		879		(77,023	)
Net deferred tax liability	90,976		(19,976	)	59		878		71,937

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Provisions

12 Months Ended

Mar. 31, 2018

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Provisions

Provisions

	March 31,  2018 R’000		March 31,  2017 R’000
Product warranties
Beginning of the year	11,538		16,564
Income statement charge	5,772		1,797
Utilized	(3,452	)	(5,476	)
Foreign currency translation differences	(73	)	(1,347	)
End of the year	13,785		11,538
Non-current portion	(516	)	—
Current portion	13,269		11,538

The Group provides warranties on certain products and undertakes to repair or replace items that fail to perform satisfactorily. Management estimates the related provision for future warranty claims based on historical warranty claim information, the product lifetime, as well as recent trends that might suggest that past cost information may differ from future claims.

	March 31,  2018 R’000		March 31,  2017 R’000
Maintenance provision
Beginning of the year	3,511		4,413
Income statement charge	13,695		15,182
Utilized	(12,604	)	(15,944	)
Foreign currency translation differences	(173	)	(140	)
End of the year	4,429		3,511
Non-current portion	—		(409	)
Current portion	4,429		3,102

The Group provides for maintenance required related to ongoing contracts when the obligation to repair occurs. Management estimates the related provision for maintenance costs per unit based on the estimated costs expected to be incurred to repair the respective units.

	March 31,  2018 R’000		March 31,  2017 R’000
Decommissioning provision
Beginning of the year	1,424		1,812
Finance costs	213		—
Foreign currency translation differences	(21	)	(388	)
End of the year	1,616		1,424
Non-current portion	(1,616	)	(1,424	)
Current portion	—		—

The Group provides for the anticipated present value of costs associated with the restoration of leasehold property to its condition at inception of the lease, including the removal of items included in plant and equipment that is erected on leased land. The final cash outflow of these costs is not expected to occur in the next 12 months.

	March 31,  2018 R’000		March 31,  2017 R’000
Restructuring provision
Beginning of the year	11,465		523
Income statement (reversal)/charge (note 23)	(741	)	14,561
Utilized	(10,653	)	(2,834	)
Foreign currency translation differences	(47	)	(785	)
End of the year	24		11,465
Non-current portion	—		—
Current portion	24		11,465

Restructuring costs

2018

R10.7 million of the restructuring provision was utilized in respect of the restructuring plans implemented during fiscal 2017, as described below. R0.7 million was released during the current financial year. The remaining restructuring provision is expected to be utilized within the first quarter of fiscal 2019.

2017

During March 2017, restructuring plans were implemented by the Europe and Middle East and Australasia segments. The total cost of the restructuring plans was expected to approximate R15.0 million. These costs consisted of estimated staff costs in respect of affected employees. By March 31, 2017, R2.7 million of the expected restructuring costs had been incurred and the remaining provision of R11.5 million was expected to be fully utilized within 12 months.

In respect of a restructuring plan implemented during fiscal 2015, the Africa segment incurred R0.1 million in respect of lease termination costs and reversed the remaining balance of R0.4 million of the restructuring provision during fiscal 2017.

	March 31,  2018 R’000			March 31,  2017 R’000
Other provisions
Beginning of the year	2,673			11,261
Income statement charge	224			281
Utilized	—			(8,600	)
Foreign currency translation differences	(336	)		(269	)
End of the year	2,561			2,673
Non-current portion	—			—
Current portion	2,561		—	2,673

Other provisions

The provision in fiscal 2018 relates to taxation matters which may not be resolved in a manner that is favorable to the Group. The Group has raised provisions in respect of these matters based on estimates and the probability of an outflow of economic benefits and this should not be construed as an admission of legal liability.

At March 31, 2016, the Group was involved in a supplier dispute and certain taxation matters specific to the respective jurisdictions in which the Group operates. During fiscal 2017, R8.6 million was paid in full settlement of the supplier obligations provided for in fiscal 2016.

	March 31,  2018 R’000		March 31,  2017 R’000
Total provisions
Product warranties	13,785		11,538
Maintenance provision	4,429		3,511
Decommissioning provision	1,616		1,424
Restructuring provision	24		11,465
Other provisions	2,561		2,673
Total provision	22,415		30,611
Non-current portion	(2,132	)	(1,833	)
Current provision	20,283		28,778

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Share-based payment liability

12 Months Ended

Mar. 31, 2018

Share-Based Payment Arrangements [Abstract]

Share-based payment liability

Share-based payment liability

	March 31,  2018 R’000		March 31,  2017 R’000
Movement in share-based payment liability for the year
Opening balance	—		—
Share-based payment expense recognized during the year	1,352		1,064
Payment made in settlement of the share-based payment liability	(1,353	)	(1,064	)
Foreign currency translation differences	1		—
Closing balance	—		—

MiX Brazil

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

In September 2017, Edge exercised the put option in the quotaholders agreement. In terms of the subsequent sale agreement MiX Investments (Proprietary) Limited acquired Edge’s 5% equity interest in MiX Brazil for R1.4 million which increased the Group's interest in MiX Brazil to 100%. As a result, the Group recognized a cash-settled share-based payment expense and liability of R1.4 million, which was subsequently settled. The non-controlling interest related to MiX Brazil of R1.5 million was also transferred to other reserves within equity (note 14).

At March 31, 2017, the share-based payment liability was valued using discounted cash flow analysis. The fair value was determined by the use of cash flow projections based on approved budgets covering a five-year period. These cash flows were based on the current market conditions and near-term expectations. On a stand-alone basis at the end of fiscal 2017, the cash flow projections including debt revealed that the liability was unlikely to result in a cash outflow for the Group and as such its carrying amount was zero.

The key assumptions used in the discounted cash flow analysis in fiscal 2017 were:

	March 31,  2017
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	21.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	4.5

MiX Fleet Support Trust

The cash-settled share-based payment expense incurred in 2017 was in respect of the sale of the MiX Telematics Fleet Support Trust's 51% interest in MiX Telematics Fleet Support Services Proprietary Limited to MiX Telematics Africa Proprietary Limited. The proceeds from this transaction were distributed to certain employees who are beneficiaries of the trust. The Group has no further obligations in respect of this transaction.

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Revenue

12 Months Ended

Mar. 31, 2018

Revenue [abstract]

Revenue

Revenue

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Subscription revenue	1,434,615	1,239,914	1,158,229
Hardware sales	227,752	222,315	221,306
Driver training, installation and other	50,115	77,829	85,486
	1,712,482	1,540,058	1,465,021

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Other income/(expenses) - net

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Other income/(expenses) - net

Other income/(expenses) — net

	March 31,  2018 R’000	March 31,  2017 R’000		March 31,  2016 R’000
Insurance reimbursement relating to operating costs	2,500	—		—
Profit/(loss) on disposal of property, plant and equipment and intangible assets (note 31.2)	1,264	(262	)	(208	)
Other	482	688		1,452
	4,246	426		1,244

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Operating profit

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Operating profit

Operating profit

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Operating profit is stated after accounting for the following charges:
Amortization (notes 7 and 31.2)	63,926		44,734		47,586
Depreciation (notes 6 and 31.2)	151,945		98,508		75,037
Impairment of intangible assets (notes 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 31.2)	9		(791	)	1,905
Operating lease charges — premises, vehicles and equipment	24,622		24,690		23,536
Restructuring costs (note 19)	(741	)	14,561		(333	)
Write-down of inventory to net realizable value (notes 9 and 31.2)	9,294		9,967		5,317
Research expenditure	1,624		2,398		1,540
Transaction costs arising from investigating strategic alternatives	—		—		5,037
Professional fees	32,689		22,358		24,940
Staff costs	601,656		587,474		573,165
– Salaries, wages and other costs	564,207		554,793		540,227
– Pension costs (note 17)	27,097		29,370		27,118
– Equity-settled share-based payments (notes 14 and 31.2)	9,000		2,247		7,838
– Cash-settled share-based payments (note 20)	1,352		1,064		(2,018	)
Number of employees at the end of the year	1,054		1,056		1,089

Investigating strategic alternatives

During fiscal 2016, the Board of Directors entered into a process of investigating strategic alternatives relating to the Group. This extensive review, conducted with guidance from external advisers, included the optimization of capital structures and an evaluation of various ownership options.

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Finance income

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Finance income

Finance income

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Current accounts and short-term bank deposits	8,508	14,052	7,292
Finance lease receivable income	3	20	267
Other	440	520	567
	8,951	14,592	8,126
Net foreign exchange gains	—	1,476	144,038
	8,951	16,068	152,164

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Finance costs

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Finance costs

Finance costs

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Overdraft	(2,324	)	(2,259	)	(1,490	)
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 13)	—		(3,222	)	—
Other long-term loans	—		(50	)	(186	)
Decommissioning provision (note 19)	(213	)	—		—
Other	(1,410	)	(146	)	(161	)
	(3,947	)	(5,677	)	(1,837	)
Net foreign exchange losses	(5,073	)	—		—
	(9,020	)	(5,677	)	(1,837	)

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Auditors' remuneration

12 Months Ended

Mar. 31, 2018

Additional information [abstract]

Auditors' remuneration

Auditors’ remuneration

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Auditors’ remuneration	12,076	8,821	7,426

In fiscal 2018, auditors' remuneration includes R2.2 million in respect of fees paid to PricewaterhouseCoopers Inc. and the balance relates to Deloitte & Touche.

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Directors' and executive committee emoluments

12 Months Ended

Mar. 31, 2018

Directors' and Executive Committee Emoluments [Abstract]

Directors' and executive committee emoluments

Directors’ and executive committee emoluments

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2018
Non-executive directors
R Bruyns(2)	773	—	—	—	—	773
C Ewing(2),(3)	348	—	—	—	—	348
R Frew(2)	746	—	—	—	—	746
E Banda	486	—	—	—	—	486
A Welton	614	—	—	—	—	614
I Jacobs	386	—	—	—	—	386
F Roji-Maplanka(4)	292	—	—	—	—	292
	3,645	—	—	—	—	3,645
Value added tax(2)	266	—	—	—	—	266
Executive committee(5)
S Joselowitz(6)	—	6,841	—	—	6,737	13,578
C Tasker(6)	—	5,393	—	—	4,133	9,526
P Dell(7)	—	1,844	100	71	1,750	3,765
G Pretorius	—	2,573	268	433	3,299	6,573
C Lewis	—	2,570	122	130	2,603	5,425
	3,911	19,221	490	634	18,522	42,778
2017
Non-executive directors
R Bruyns	794	—	—	—	—	794
C Ewing(3)	570	—	—	—	—	570
R Frew(2)	566	—	—	—	—	566
E Banda	470	—	—	—	—	470
A Welton	650	—	—	—	—	650
M Lamberti(2), (8)	115	—	—	—	—	115
I Jacobs(9)	277	—	—	—	—	277
G Nakos(10)	—	—	—	—	—	—
	3,442	—	—	—	—	3,442
Value added tax(2)	95	—	—	—	—	95
Executive committee(5)
S Joselowitz(6)	—	7,219	—	—	3,404	10,623
M Pydigadu(11)	—	2,101	98	80	1,206	3,485
C Tasker(6)	—	3,612	178	256	1,511	5,557
B Horan(12)	—	1,215	63	47	1,456	2,781
P Dell(7)	—	275	14	11	—	300
G Pretorius	—	2,096	129	335	1,147	3,707
C Lewis	—	2,328	—	144	1,099	3,571
	3,537	18,846	482	873	9,823	33,561

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2016
Non-executive directors
R Bruyns	910	—	—	—	—	910
C Ewing(3)	538	—	—	—	—	538
R Frew(2)	387	—	—	—	—	387
E Banda	442	—	—	—	—	442
A Welton	604	—	—	—	—	604
M Lamberti(2), (8)	286	—	—	—	—	286
	3,167	—	—	—	—	3,167
Value added tax(2)	94	—	—	—	—	94
Executive committee(5)
S Joselowitz(6)	—	7,006	—	—	3,806	10,812
R Botha(13), (14)	—	390	1,979	15	728	3,112
M Pydigadu(11)	—	2,304	109	87	1,299	3,799
H Scott(13), (15)	—	586	100	—	1,054	1,740
C Tasker(6)	—	3,288	45	264	1,691	5,288
B Horan(12)	—	2,292	118	90	1,365	3,865
G Pretorius	—	1,906	118	308	1,120	3,452
C Lewis	—	2,026	52	180	1,446	3,704
	3,261	19,798	2,521	944	12,509	39,033

⁽¹⁾  Performance bonuses are based on actual amounts paid during the fiscal year.

⁽²⁾  Value added tax (“VAT”) included as part of certain invoices received. Directors’ fees shown exclude VAT.

⁽³⁾  Resigned from the Board with effect from November 7, 2017.

⁽⁴⁾  Appointed to the Board with effect from October 3, 2017.

⁽⁵⁾  All prescribed officers of the Company are included as part of the executive committee.

⁽⁶⁾  Executive director as at March 31, 2018, March 31, 2017 and March 31, 2016.

⁽⁷⁾  Appointed as Group executive committee member from February 1, 2017 and to the Board with effect from February 9, 2017. Executive director as at March 31, 2018 and March 31, 2017.

⁽⁸⁾  Appointed to the Board with effect from November 19, 2014, resigned from the Board with effect from August 18, 2016.

⁽⁹⁾  Appointed to the Board with effect from June 1, 2016.

⁽¹⁰⁾  Appointed as alternate director to Mark Lamberti with effect from November 4, 2015. Subsequently resigned as alternate director to Mark Lamberti with effect from August 18, 2016.

⁽¹¹⁾  Resigned from the Board with effect from February 9, 2017.

⁽¹²⁾  Resigned with effect from September 30, 2016.

⁽¹³⁾  Resigned from the Board with effect from August 9, 2013 but remained as Group executive committee member. Subsequently retired from the Group executive committee on May 31, 2015.

⁽¹⁴⁾  Other benefits paid to R Botha include notice pay, severance pay and gratuity payments made as compensation for loss of office. Refer to note 13 for further details of share options held and exercised by this retired executive.

⁽¹⁵⁾  Other benefits paid to H Scott comprise gratuity payments made upon retirement.

The remaining related party transactions are set out in note 32.

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Taxation

12 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Taxation

Taxation

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Major components of taxation expense
Normal taxation	(58,668	)	(46,788	)	(57,545	)
– Current	(55,385	)	(43,434	)	(53,626	)
– Over-provision prior years	325		589		175
– Foreign tax paid	(2,880	)	(3,711	)	(3,768	)
– Withholding tax	(728	)	(232	)	(326	)
Deferred taxation (note 18)	24,978		19,976		(49,375	)
– Current year	25,658		20,748		(49,365	)
– Under-provision prior years	(680	)	(772	)	(10	)
	(33,690	)	(26,812	)	(106,920	)

Taxation recognized in other comprehensive income

	Before tax R’000		Tax impact R’000		After tax R’000
2018
Exchange differences on translating foreign operations	(60,331	)	(237	)	(60,568	)
	(60,331	)	(237	)	(60,568	)

	Before tax R’000		Tax impact R’000		After tax R’000
2017
Exchange differences on translating foreign operations	(80,870	)	(59	)	(80,929	)
	(80,870	)	(59	)	(80,929	)

	Before tax R’000	Tax impact R’000		After tax R’000
2016
Exchange differences on translating foreign operations	90,665	(2,466	)	88,199
	90,665	(2,466	)	88,199

Tax rate reconciliation

The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the entities as follows:

		March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation		214,883		148,253		289,411
Tax at the applicable tax rate of 28%		60,167		41,511		81,035
Tax effect of:		(26,477	)	(14,699	)	25,885
– Income not subject to tax		(552	)	—		(398	)
– Expenses not deductible for tax purposes(1)		6,460		7,409		6,869
– (Non-taxable)/non-deductible foreign exchange movements(2)	`	(28,184	)	(15,884	)	9,376
– Withholding tax		728		232		326
– Utilization of prior year assessed losses(3)		(6,452	)	(1,461	)	—
– Foreign tax paid(4)		2,880		3,711		3,768
– Tax rate differential		(2,546	)	1,281		(6,551	)
– Deferred tax not recognized on assessed losses		517		4,049		12,833
– Deferred tax asset previously not recognized		(1,122	)	(5,342	)	(531	)
– Under/(over)-provision prior years		355		183		(165	)
– Tax incentives in addition to incurred cost(5)		(3,258	)	(10,387	)	—
– Share-based payment expense previously not deductible		(1,049	)	—		—
– Imputation of controlled foreign company income		2,365		1,453		358
– Transfer pricing imputation		3,381		57		—
		33,690		26,812		106,920

⁽¹⁾  These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income.

⁽²⁾  The (non-taxable)/non-deductible foreign exchange movements arise as a result of the Group’s internal loan structures.

⁽³⁾  The utilization of assessed losses arises mainly in Europe, the Americas and Brazil where historical assessed losses are being utilized, as these entities are now generating taxable profits. During prior years, deferred tax assets have not been recorded for assessed losses in the Americas and Brazil.

⁽⁴⁾  The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Group does not have a legal entity.    

⁽⁵⁾  The tax incentives relate mainly to the section 11D allowance detailed below.

The Group’s weighted average tax rate is 15.7% (2017: 18.1%, 2016: 36.9%).

Section 11D allowances relating to tax assets recognized

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

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

Since the introduction of the DST pre-approval process, the Group has recognized in the income statement cumulative tax incentives in addition to the incurred cost of R20.5 million in respect of S11D deductions, of which R2.3 million was recognized in the current financial year. R17.7 million relates to deductions in respect of development project expenditure which has been approved by the DST. R2.8 million relates to an uncertain tax position in respect of projects where approvals have not yet been received from the DST. If the Group is unsuccessful in this regard, the Group will not recover the R2.8 million raised at March 31, 2018.

The taxation receivable includes amounts due of R17.7 million in respect of S11D tax incentives at March 31, 2018 (2017: R14.9 million).

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Earnings per share

12 Months Ended

Mar. 31, 2018

Earnings per share [abstract]

Earnings per share

Earnings per share

Basic

Basic earnings per share is calculated by dividing the profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic earnings per share (R)	0.32	0.19	0.24

Diluted

Diluted earnings per share is calculated by dividing the diluted profit attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year. Share options and share appreciation rights granted to employees under the TeliMatrix Group Executive Incentive Scheme and the MiX Telematics Long-Term Incentive Plan (“LTIP”), as disclosed in note 13, are considered to be potential ordinary shares. They have been included in the determination of diluted earnings per share if the required target share price or annual shareholder return hurdles (as applicable) would have been met based on the Company's performance up to the reporting date, and to the extent to which they are dilutive. Details relating to the share options and share appreciation rights are set out in note 13.

Share appreciation rights were issued for the first time during fiscal 2015 and there were no potentially dilutive share appreciation rights at March 31, 2017 and March 31, 2016. 

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Adjusted for:
— potentially dilutive effect of share appreciation rights	7,230	—	—
— potentially dilutive effect of share options	5,663	2,193	8,275
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted earnings per share (R)	0.32	0.19	0.23

Adjusted earnings per share

Adjusted earnings per share is defined as profit attributable to owners of the parent, MiX Telematics Limited, excluding net foreign exchange gains/(losses) net of tax, divided by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of adjusted earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
Net foreign exchange losses/(gains)	5,073		(1,476	)	(144,038	)
Income tax effect on the above component(1)	(29,403	)	(15,307	)	48,647
Adjusted earnings attributable to owners of the parent	156,804		104,675		87,598

⁽¹⁾  The income tax effect is mainly influenced by the Group’s internal loan structures (note 28).

Basic

Basic adjusted earnings per share is calculated by dividing the adjusted earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic adjusted earnings per share (R)	0.28	0.17	0.11

Diluted

Adjusted diluted earnings per share is calculated by dividing the diluted adjusted earnings attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Diluted adjusted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted adjusted earnings per share (R)	0.27	0.17	0.11

Headline earnings per share

Headline earnings per share is a profit measure required for JSE-listed companies and is calculated in accordance with circular 2/2015 issued by the South African Institute of Chartered Accountants. The profit measure is determined by taking the profit for the year prior to certain separately identifiable remeasurements of the carrying amount of an asset or liability that arose after the initial recognition of such asset or liability net of related tax (both current and deferred) and related non-controlling interest.

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of headline earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
(Profit)/loss on disposal of property, plant and equipment and intangible assets (note 31.2)	(1,264	)	262		208
Impairment of intangible assets (notes 5, 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 5, 6 and 31.2)	9		(791	)	1,905
Non-controlling interest effects of adjustments	—		8		(244	)
Income tax effect on the above components	(380	)	(661	)	2
Headline earnings attributable to owners of the parent	182,186		123,442		187,731

Basic

Basic headline earnings per share is calculated by dividing the headline earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Headline earnings attributable to owners of the parent	182,186	123,442	187,731
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic headline earnings per share (R)	0.32	0.20	0.24

Diluted

Diluted headline earnings per share is calculated by dividing the diluted headline earnings attributable to owners of the parent by the diluted weighted average number of ordinary shares in issue during the year.

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted headline earnings attributable to owners of the parent	182,186	123,442	187,731
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted headline earnings per share (R)	0.32	0.20	0.24

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Dividends

12 Months Ended

Mar. 31, 2018

Statement of changes in equity [abstract]

Dividends

Dividends

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Dividends declared	53,268	53,026	107,254

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

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

• In respect of the fourth quarter of fiscal 2017, a dividend of R11.3 million was declared on May 23, 2017 and paid on June 19, 2017. Using shares in issue of 563,514,561 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the first quarter of fiscal 2018, a dividend of R14.0 million was declared on August 1, 2017 and paid on August 28, 2017. Using shares in issue of 558,498,901 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

• In respect of the second quarter of fiscal 2018, a dividend of R14.0 million was declared on October 31, 2017 and paid on November 27, 2017. Using shares in issue of 559,418,095 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

• In respect of the third quarter of fiscal 2018, a dividend of R14.0 million was declared on January 30, 2018 and paid on February 26, 2018. Using shares in issue of 562,320,145 (excluding 40,000,000 treasury shares), this equated to a dividend of 2.5 cents per share.

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

• In respect of the fourth quarter of fiscal 2016, a dividend of R15.2 million was declared on May 24, 2016 and paid on June 20, 2016. Using shares in issue of 761,337,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the first quarter of fiscal 2017, a dividend of R15.3 million was declared on August 4, 2016 and paid on August 29, 2016. Using shares in issue of 763,087,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the second quarter of fiscal 2017, a dividend of R11.3 million was declared on November 3, 2016 and paid on November 28, 2016. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the third quarter of fiscal 2017, a dividend of R11.2 million was declared on February 2, 2017 and paid on February 27, 2017. Using shares in issue of 563,434,240 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

The following dividends were declared by the Company in fiscal 2016:

• In respect of fiscal 2015, a dividend of R61.5 million was declared on August 25, 2015 and paid on September 21, 2015. Using shares in issue of 768,601,150 (excluding 24,573,850 treasury shares), this equated to a dividend of 8 cents per share.

• In respect of the first quarter of fiscal 2016, a dividend of R15.4 million was declared on August 25, 2015 and paid on September 21, 2015. Using shares in issue of 768,601,150 (excluding 24,573,850 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the second quarter of fiscal 2016, a dividend of R15.3 million was declared on November 5, 2015 and paid on November 30, 2015. Using shares in issue of 764,140,181 (excluding 30,334,819 treasury shares), this equated to a dividend of 2 cents per share.

• In respect of the third quarter of fiscal 2016, a dividend of R15.1 million was declared on February 4, 2016 and paid on February 29, 2016. Using shares in issue of 755,137,500 (excluding 40,000,000 treasury shares), this equated to a dividend of 2 cents per share.

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Cash flow statement

12 Months Ended

Mar. 31, 2018

Cash Flow Statement [Abstract]

Cash flow statement

Cash flow statement

31.1    The following convention applies to figures other than adjustments:

Outflows of cash are represented by figures in brackets. Inflows of cash are represented by figures without brackets.

31.2    Reconciliation of profit for the year before taxation to cash generated from operations:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation	214,883		148,253		289,411
Adjustments	279,727		197,023		33,779
– (Profit)/loss on disposal of property, plant and equipment and intangible assets (note 22)	(1,264	)	262		208
– Depreciation (notes 6 and 23)	151,945		98,508		75,037
– Amortization (notes 7 and 23)	63,926		44,734		47,586
– Impairment of intangible assets (notes 7 and 23)	2,687		3,166		2,871
– Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 23)	9		(791	)	1,905
– Finance income (note 24)	(8,951	)	(14,592	)	(8,126	)
– Finance costs (note 25)	3,947		5,677		1,837
– Equity-settled share-based payments (notes 14 and 23)	9,000		2,247		7,838
– Cash-settled share-based payments (notes 20 and 23)	1,352		—		(2,018	)
– Foreign exchange losses/(gains) (notes 24 and 25)	5,073		(1,476	)	(144,038	)
– Impairment of receivables (note 10)	24,143		17,713		14,735
– Write-down of inventory to net realizable value (notes 9 and 23)	9,294		9,967		5,317
– Increase in provisions	18,950		31,821		29,731
– Lease straight-line adjustment	(384	)	(213	)	(174	)
– Finance lease fair value adjustment	—		—		1,070
Cash generated from operations before working capital changes	494,610		345,276		323,190
Changes in working capital	(81,585	)	31,839		(29,382	)
– (Increase)/decrease in inventories	(39,858	)	28,073		(30,872	)
– (Increase)/decrease in trade and other receivables	(49,601	)	17,404		(46,297	)
– Decrease in finance lease receivable	165		1,009		4,655
– Increase in trade and other payables	8,519		21,993		46,712
– Decrease in provisions	(26,709	)	(32,854	)	(24,669	)
– Foreign currency translation differences on working capital	25,899		(3,786	)	21,089
Cash generated from operations	413,025		377,115		293,808

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Related party transactions

12 Months Ended

Mar. 31, 2018

Related party transactions [abstract]

Related party transactions

Related party transactions

Directors’ and executive committee members’ interest

The list of directors and executive committee members and their beneficial interests declared in the Company’s share capital at year-end held directly, indirectly and by associates were as follows:

	March 31, 2018			March 31, 2017
	Direct 000s	Indirect 000s	Associate 000s	Direct 000s	Indirect 000s	Associate 000s
Non-executive
R Bruyns	—	3,697	—	—	3,697	—
C Ewing(1)	—	—	—	—	—	—
R Frew	—	63,848	70,261	—	63,848	70,261
A Welton	—	—	235	—	—	235
E Banda	—	—	—	—	—	—
I Jacobs(2)	241	14,296	—	191	—	14,281
F Roji-Maplanka(3)	—	—	—	—	—	—
Executive
S Joselowitz	26,342	—	—	26,342	—	—
C Tasker	2,057	—	2,428	900	—	2,428
P Dell	1	—	—	1	—	—
G Pretorius	338	—	—	35	—	—
C Lewis	1,525	—	—	1,525	—	—
	30,504	81,841	72,924	28,994	67,545	87,205

⁽¹⁾  Resigned from the Board with effect from November 7, 2017.

⁽²⁾  Appointed to the Board with effect from June 1, 2016.

⁽³⁾  Appointed to the Board with effect from October 3, 2017.

Interests in contracts

During the year under review, the following were disclosed as contractual arrangements that existed between the Group and parties outside of the Group, in which certain of the directors and executive committee members had interests:

Name of director	Related party	Nature of relationship with the Group
R Bruyns	Insight Consultancy Close Corporation	Provides directors’ services
R Frew	TPF Investments Proprietary Limited	Lease agreement: Midrand office
R Frew	Masalini Capital Proprietary Limited	Provides directors’ services

A list of subsidiaries has been included in note 39.

Transactions with related parties and balances outstanding at year-end are as follows (excluding key management personnel emoluments):

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Sales of goods and services	—	22,263	78,564
– Imperial Group Limited*	—	22,263	78,564
Purchases of goods and services	8,277	11,206	35,595
– TPF Investments Proprietary Limited**	8,277	5,277	7,148
– Imperial Group Limited*	—	5,929	28,447
Corporate and social investment	—	—	257
– Heartbeat centre for community development***	—	—	257
Year-end balance of receivables (included in trade and other receivables – note 10)	—	—	11,144
– Imperial Group Limited*	—	—	11,144
Year-end balance of payables (included in trade and other payables – note 16)	—	—	3,209
– TPF Investments Proprietary Limited**	—	—	—
– Imperial Group Limited*	—	—	842
– C Tasker****	—	—	2,367

* Related party until August 1, 2016. See “Fiscal 2017 specific share repurchase” in note 13 for additional information.

** Previously known as Thynk Property Fund Proprietary Limited.

*** Related party transactions up to May 31, 2015, when R Botha retired from the Group executive committee, have been

disclosed.

**** Cash held by MiX Telematics Limited to be paid to C Tasker, a participant of the TeliMatrix Group Executive Incentive

Scheme in respect of share options exercised.

Refer to note 27 for key management personnel emoluments disclosure. Key management personnel include executive committee members.

The related parties included above are related to the Group due to certain shares in these entities being held by executive or non-executive directors of the Company or due to common directorships held.

There were no receivables from related parties at March 31, 2018 and 2017. The receivables from related parties historically arose from sales transactions, were unsecured and bore no interest. At March 31, 2016, the provision held against receivables from related parties amounted to R1.0 million.

There were no payables to related parties at March 31, 2018 and 2017. The payable in respect of C Tasker in fiscal 2016 is described above. The remaining payables in fiscal 2016 to related parties arose mainly from purchase transactions and bore no interest.

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Contingencies

12 Months Ended

Mar. 31, 2018

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Contingencies

Contingencies

Service agreement

In terms of an amended network services agreement with Mobile Telephone Networks Proprietary Limited (“MTN”), MTN is entitled to claw back payments from MiX Telematics Africa Proprietary Limited, a subsidiary of the Group, in the event of early cancellation of the agreement or certain base connections not being maintained over the term of the agreement. No connection incentives will be received in terms of the amended network services agreement. The maximum potential liability under the arrangement is R43.7 million (2017: R48.4 million). No loss is considered probable under this arrangement.

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Commitments

12 Months Ended

Mar. 31, 2018

Additional information [abstract]

Commitments

Commitments

Capital commitments

At March 31, the Group had approved, but not yet contracted, capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	—	—	—
Intangible assets	56,406	58,036	63,670
	56,406	58,036	63,670

 At March 31, the Group had approved and contracted capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	11,601	50,074	22,471
Intangible assets	17,046	24,726	33,234
	28,647	74,800	55,705

Capital commitments will be funded out of a mixture of working capital and cash and cash equivalents.

Operating leases

The Group leases various offices under operating lease agreements. The leases have various terms and escalation clauses and renewal rights.

The future minimum lease payments in respect of land and buildings under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Land and buildings
Within one year	12,324	15,201	19,896
One to five years	10,862	20,354	9,767
	23,186	35,555	29,663

The Group leases various office equipment and vehicles under non-cancellable operating lease agreements. The lease terms are between one and five years with annual escalations up to 10% per annum. The Group is required to give up to three months’ notice for the termination of these agreements.

The future minimum lease payments of office equipment and vehicles under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Office equipment
Within one year	716	853	874
One to five years	674	495	1,032
	1,390	1,348	1,906
Vehicles
Within one year	1,585	1,507	836
One to five years	1,617	1,626	167
	3,202	3,133	1,003

The lease expenditure charged to the income statement during the year is disclosed in note 23.

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Events after the reporting period

12 Months Ended

Mar. 31, 2018

Events After The Reporting Period [Abstract]

Events after the reporting period

Events after the reporting period

Other than the item below, the directors are not aware of any matter material or otherwise arising since March 31, 2018 and up to the date of this report, not otherwise dealt with herein.

Dividend declared

On May 8, 2018 the Board declared in respect of the fourth quarter of fiscal 2018 which ended on March 31, 2018, a dividend of 3 South African cents per ordinary share that was paid on June 4, 2018.

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Financial risk sensitivity analysis

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Financial risk sensitivity analysis

Financial risk sensitivity analysis

Interest rate sensitivity

A change in the interest rate at the reporting date of 100 basis points for ZAR denominated instruments and 10 basis points for USD denominated instruments would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for the year ended March 31, 2017.

		March 31,  2018 R’000		March 31,  2017 R’000
USD denominated instruments	Increase of 10 basis points	*		143
	Decrease of 10 basis points	*		(143	)
ZAR denominated instruments	Increase of 100 basis points	1,811		1,000
	Decrease of 100 basis points	(1,811	)	(1,000	)

* Amount less than R1,000.

Foreign currency sensitivity

The Group has used a sensitivity analysis technique that measures the estimated change to profit or loss and equity of an instantaneous 5% strengthening or weakening in the functional currency against all other currencies, from the rate applicable at March 31, 2018, for each class of financial instrument with all other variables remaining constant. This analysis is for illustrative purposes only as, in practice, market rates rarely change in isolation.

The Group is exposed mainly to fluctuations in foreign exchange rates in respect of the South African Rand, Australian Dollar, United States Dollar, the British Pound, the Brazilian Real and the Euro. This analysis considers the impact of changes in foreign exchange rates on profit or loss.

A change in the foreign exchange rates to which the Group is exposed at the reporting date would have increased/(decreased) profit before taxation by the amounts shown below. The analysis has been performed on the basis of the change occurring at the end of the reporting period.

		Increase/(decrease) in profit before taxation
	Change in exchange rate %	Result of weakening in functional currency R’000		Result of strengthening in functional currency R’000
2018
Denominated currency: Functional currency
EUR:GBP	5	710		(710	)
USD:GBP	5	(149	)	149
USD:ZAR	5	814		(814	)
EUR:ZAR	5	368		(368	)
GBP:ZAR	5	(78	)	78
ZAR:USD	5	2		(2	)
EUR:USD	5	231		(231	)
USD:AUD	5	(33	)	33
AUD:ZAR	5	598		(598	)
ZAR:GBP	5	(22	)	22
USD:BRL	5	(33	)	33
2017
Denominated currency: Functional currency
EUR:GBP	5	152		(152	)
USD:GBP	5	(19	)	19
USD:ZAR	5	8,028		(8,028	)
EUR:ZAR	5	422		(422	)
GBP:ZAR	5	(25	)	25
ZAR:USD	5	(41	)	41
EUR:USD	5	29		(29	)
USD:AUD	5	(73	)	73
EUR:AUD	5	(3	)	3
AUD:ZAR	5	320		(320	)
ZAR:GBP	5	(9	)	9
ZAR:AUD	5	(43	)	43
USD:BRL	5	(124	)	124
ZAR:BRL	5	(2	)	2
NGN:ZAR	5	228		(228	)

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Liquidity risk

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Liquidity risk

Liquidity risk

Liquidity risk is the risk that there will be insufficient funds available to settle obligations when they are due.

The Group has limited risk due to the recurring nature of its income and the availability of liquid resources. The Group meets its financing requirements through a mixture of cash generated from its operations and its access to undrawn borrowing facilities (note 15). In addition, the Group holds the following cash resources:

	March 31,  2018 R’000	March 31,  2017 R’000
Cash and cash equivalents, net of overdrafts (note 12)	290,538	356,333

The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

	Payable within 1 month or on demand R’000	Between 1 month and 1 year R’000	Between 1 year and 2 years R’000	Between 2 years and 5 years R’000	More than 5 years R’000
March 31, 2018
Trade payables	58,085	40,009	—	—	—
Accruals and other payables	92,318	68,646	—	—	—
Bank overdraft	17,720	—	—	—	—
Total	168,123	108,655	—	—	—
March 31, 2017
Trade payables	42,720	37,172	—	—	—
Accruals and other payables	92,353	47,610	—	—	—
Bank overdraft	19,449	—	—	—	—
Total	154,522	84,782	—	—	—

There have been no significant changes in the Group’s financial risk management described above relative to the prior year.

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Exchange rates

12 Months Ended

Mar. 31, 2018

Effects Of Changes In Foreign Exchange Rates [Abstract]

Exchange rates

Exchange rates

The following major rates of exchange were used in the preparation of the consolidated financial statements:

		March 31,  2018	March 31,  2017	March 31,  2016
ZAR:USD	– closing	11.83	13.41	14.83
	– average	12.99	14.06	13.78
ZAR:GBP	– closing	16.60	16.75	21.31
	– average	17.21	18.42	20.63

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List of Group companies

12 Months Ended

Mar. 31, 2018

List of Group Companies [Abstract]

List of Group companies

List of Group companies

MiX Telematics Limited is the parent company of the MiX Telematics Group of companies outlined below. All of the entities listed below have been consolidated.

Name	Principal activity	Place of incorporation	Legal % ownership
			March 31, 2018 %	March 31, 2017 %
Direct
MiX Telematics Investments Proprietary Limited	Treasury company	RSA	100	100
MiX Telematics Africa Proprietary Limited	Asset tracking and fleet management products and services	RSA	100	100
MiX Telematics International Proprietary Limited	Fleet management products and services and research and development	RSA	100	100
MiX Telematics Europe Limited	Fleet management products and services	UK	100	100
MiX Telematics North America Incorporated	Fleet management products and services	USA	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada	Fleet management products and services	Brazil	95	95
Indirect
MiX Telematics Technology Holdings Proprietary Limited	Deregistered	RSA	—	100
MiX Telematics Middle East FZE	Fleet management products and services	UAE	100	100
MiX Telematics Enterprise SA Proprietary Limited (1)	Fleet management products and services	RSA	85.1	85.1
MiX Telematics Fleet Support Services Proprietary Limited	Fleet management products and services	RSA	100	100
MiX Telematics East Africa Limited	Fleet management products and services	Uganda	99.9	99.9
MiX Telematics Romania SRL(2)	Fleet management services	Romania	99	99
MiX Telematics (Thailand) Limited	Fleet management products and services	Thailand	100	100
MiX Telematics Australasia Proprietary Limited	Fleet management products and services	Australia	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada(3)	Fleet management products and services	Brazil	5	—

⁽¹⁾  The remaining shareholding in this company is owned by a structured entity, the MiX Telematics Enterprise BEE Trust (which holds a 14.9% interest in MiX Telematics Enterprise SA Proprietary Limited), which has been fully consolidated. Control of the structured entity was assessed when IFRS 10 Consolidated Financial Statements was adopted with effect from April 1, 2013 and there was no change to the historical accounting treatment applied by the Group. This trust was set up in prior years to invest in the specified Group company and to hold such investment for its beneficiaries.

⁽²⁾  During fiscal 2015, MiX Telematics Middle East FZE incorporated MiX Telematics Romania SRL and obtained a 99% interest therein. The 1% non-controlling interest is held by management.

⁽³⁾  MiX Investments Proprietary Limited acquired Edge’s 5% equity interest in MiX Brazil during the year. See note 20 for more information.

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Summary of significant accounting policies (Policies)

12 Months Ended

Mar. 31, 2018

List Of Accounting Policies [Abstract]

Basis of presentation

Basis of preparation

The annual financial statements of the Group for the year ended March 31, 2018 have been prepared in accordance with:

• International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”);

• IFRS Interpretations Committee (“IFRIC”) interpretations applicable to companies reporting under IFRS;

• SAICA Financial Reporting guides as issued by the Accounting Practices Committee;

• Financial Pronouncements as issued by the Financial Reporting Standards Council (“FRSC”);

• the requirements of the South African Companies Act, No. 71 of 2008; and

• the JSE Listings Requirements.

The financial statements have been prepared in thousands of Rand (R’000) under the historical cost convention except for certain financial instruments that have been measured at fair value.

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements, are disclosed in note 4.

Changes in accounting policy and disclosures

Changes in accounting policy and disclosures

2.1.1.1 New standards, amendments and interpretations adopted by the Group

Standards, amendments and interpretations which are effective for the financial year beginning on or after April 1, 2017 did not have a material impact on the Group.

2.1.1.2     New standards, amendments and interpretations not yet effective

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

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

Standards and amendments	Executive summary
IFRS 9 Financial Instruments (“IFRS 9”)	IFRS 9 addresses classification and measurement of financial assets and replaces the multiple classification and measurement models in IAS 39 Financial Instruments: Recognition and Measurement with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 also introduces a new impairment model and aligns hedge accounting more closely with an entity’s risk management. The standard is effective for the Group from April 1, 2018. The most relevant change to the Group is the requirement to use an expected loss model instead of the incurred loss model, which is currently being used, when assessing the recoverability of trade and other receivables. Based on the expected loss model contained in IFRS 9, the expected increase in the provision for doubtful debts at April 1, 2018 is between R2.0 million and R4.0 million.
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts. It is a single, comprehensive revenue recognition model for all contracts with customers and has the objective of achieving greater consistency in the recognition and presentation of revenue. In terms of the new standard, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of goods or services transfers to a customer. The revenue standard is effective for annual periods beginning on or after January 1, 2018 and therefore is applicable for the Group from April 1, 2018. The standard permits a modified retrospective cumulative catch-up approach for the adoption, which the Group has decided to apply. Under this approach the Group will recognize transitional adjustments in retained earnings on the date of initial application (i.e. April 1, 2018), without restating the comparative period. Under the practical expedient, the new requirements only need to be applied to contracts that are not completed as of April 1, 2018. The Group has assessed the impact of applying IFRS 15 on its financial statements and has identified the following areas that will be affected: Costs incurred in obtaining a contract: Commissions incurred to acquire contracts need to be capitalized and amortized, unless the amortization period is 12 months or less. Currently, the Group expenses commissions. Under IFRS 15, the amortization expense reflects the settlement of the related performance obligations, which, depending on the specific contract, may include hardware, installation, training and/or service. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service will be amortized over the expected life of the contract. The expected impact on the Group at April 1, 2018 is as follows: — Capitalized commission asset with a net book value of between R43.0 million and      R48.0 million; and — Additional recurring commission liability of between R6.0 million and R8.0 million. Recurring commission is commission which is payable for each month the customer remains with the Group. Since the commission relates to acquiring a customer contract, as part of the adoption of IFRS 15, a recurring commission liability will be recognized at the date on which the contract is acquired. The measurement will reflect the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. Under current accounting the recurring commissions are accrued for on a monthly basis. Amortization expense of external commissions capitalized under IFRS 15 will be recognized in cost of sales, while that of internal commissions will be recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient will also be classified in the same manner. This is in line with the current income statement presentation of the commission expense. The impact of IFRS 15 on both cost of sales and sales and marketing costs for fiscal 2019 is not expected to be material based on current forecasts.

Standards and amendments	Executive summary
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	Significant financing: In respect of contracts for which the Group receives payment more than 12 months in advance, interest expense will need to be accrued on the income received in advance liability. This will result in the revenue being measured at a higher amount when it is recognized, compared to current accounting. At April 1, 2018, it is expected that the income received in advance liability (which will be disclosed as ‘liabilities related to contracts with customers’) will be between R1.0 million and R3.0 million higher than the balance at March 31, 2018. Fixed escalations: Fixed escalations will need to be spread evenly over the contract period resulting in the related revenue being different to what is actually billed. In the earlier part of the contract, revenue will be higher than the amount billed, while in the latter part it will be lower. Currently, the Group recognizes the increase in revenue due to fixed escalations only once the escalations are effective. A contract asset of between R1.0 million and R2.0 million is expected to be recognized on April 1, 2018, reflecting the amount by which revenue should have been higher under IFRS 15 in periods prior to March 31, 2018 as a result of straight-lining the fixed escalations.
IFRS 16 Leases (“IFRS 16”)	IFRS 16 replaces IAS 17 Leases and addresses the accounting and disclosures for leases. The standard provides a single lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities for all leases, unless the lease term is 12 months or less or the underlying asset is a low-value asset. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting remaining substantially unchanged from its predecessor, IAS 17. IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019, but can be early adopted. Given that the Group will be applying IFRS 15 from April 1, 2018, the Group decided to also adopt IFRS 16 from this date. The Group has chosen to apply the ‘simplified approach’ on adoption of IFRS 16 that includes certain relief related to the measurement of the right-of-use asset and the lease liability at April 1, 2018, rather than full retrospective application. Furthermore, the ‘simplified approach’ does not require a restatement of comparatives. The Group leases land and buildings, office equipment and vehicles which are currently treated as operating leases. The expected impact on the Group at April 1, 2018 is as follows:   — Right-of-use asset with a net book value of between R29.0 million and R32.0 million; and   — Lease liability (net of accruals/prepayments already recognized) of between R31.0 million      and R35.0 million.

Business combinations

Business combinations

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the acquired business;

• equity interests issued by the Group;

• fair value of any asset or liability resulting from a contingent consideration arrangement; and

• fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets.

Acquisition-related costs are expensed as incurred, except if related to the issue of equity securities, in which case these costs are also included in equity.

The excess of the:

• consideration transferred;

• amount of any non-controlling interest in the acquired entity; and

• acquisition-date fair value of any previous equity interest in the acquired entity

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognized directly in the income statement as a bargain purchase gain.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of acquisition. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Unwinding of the interest element is recognized in the income statement.

Contingent consideration is measured at fair value on acquisition date and classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in the income statement.

Changes in ownership interests in subsidiaries without a change of control

Subsidiaries

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Inter-company transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of financial position, respectively.

Changes in ownership interests in subsidiaries without a change of control

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group, that is, transactions with the owners in their capacity as owners. For purchases from non-controlling interests, the difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity.

Gains or losses on disposals to non-controlling interests are also recorded in equity.

Segment reporting

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified collectively as the executive committee and the Chief Executive Officer who make strategic decisions.

Sales between segments are carried out at cost plus a margin.

Functional and presentation currency

Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are presented in South African Rand (“R”), which is the Group’s presentation currency.

Transactions and balances and group companies

Group companies

The results and financial position of foreign operations (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(i) Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

(ii) Income and expenses for each income statement presented are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions);

(iii) All resulting exchange differences are recognized in other comprehensive income; and

(iv) Equity items are measured at historical cost at the time of recording, translated at the rate on the date of the recording and are not retranslated to closing rates at reporting dates.

On consolidation, exchange differences arising from the translation of net investments in foreign operations are recognized in other comprehensive income. When a foreign operation is fully disposed of or sold (i.e., control is lost), exchange differences that were recorded in equity are recognized in the income statement as part of the gain or loss on sale. A repayment/capitalization of a net investment loan therefore does not result in any exchange differences being transferred from equity to the income statement unless it is part of a transaction resulting in a loss of control.

Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences are recognized in other comprehensive income.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognized in the income statement.

Foreign exchange gains/(losses) are classified as “Finance income/(cost) — net”.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities such as equities classified as available-for-sale, are included in other comprehensive income.

Property, plant and equipment

Property, plant and equipment

Property, plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes all expenditure directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. Repairs and maintenance are charged to the income statement in the reporting period in which they are incurred.

The cost of in-vehicle devices installed in vehicles (including installation and shipping costs) as well as the cost of uninstalled in-vehicle devices, is capitalized as property, plant and equipment. The Group depreciates installed in-vehicle devices on a straight-line basis over their expected useful lives, commencing upon installation, whereas uninstalled in-vehicle devices are not depreciated until installed. The related depreciation expense is recorded as part of cost of sales in the income statement.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life, as follows:

Property: Buildings	50 years
Plant and equipment	3 — 20 years
Motor vehicles	3 — 7 years
Other: Furniture, fittings and equipment	1 — 10 years
Computer and radio equipment	2 — 6 years
In-vehicle devices installed	1 — 5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (note 2.7).

Gains and losses on disposal of an asset are determined by comparing the proceeds with the carrying amount and are recognized within “Other income/(expenses) — net” in the income statement.

Intangible assets

Intangible assets

(a) Goodwill

Goodwill arises on the acquisition of businesses and represents the excess of consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the acquirer’s interest in the net fair value of the net assets acquired. Goodwill on acquisition of businesses is included in intangible assets. Gains and losses on the disposal of an entity include the carrying amount of the goodwill relating to the entity sold.

Goodwill is not amortized but is tested annually for impairment, or more frequently if events or changes in circumstances indicate a potential impairment, and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units (“CGUs”) for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level. The carrying amount of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value-in-use and the fair value less costs to sell. Impairment losses recognized as an expense in relation to goodwill are not subsequently reversed.

(b) Patents and trademarks

Separately acquired patents and trademarks are shown at historical cost. Patents and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Patents and trademarks have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated using the straight-line method to allocate the cost of patents and trademarks over their estimated useful lives (three to 20 years).

(c) Customer relationships

Customer relationships acquired in a business combination are recognized at fair value at the acquisition date. Customer relationships have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. Amortization is calculated over the expected useful life of the customer relationship (two to 15.5 years) and reflects the pattern in which future economic benefits of the customer relationship are expected to be consumed. The useful life principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates.

(d) Computer software, technology, in-house software and product development costs

Acquired computer software licenses are capitalized on the basis of costs incurred to acquire and bring the software into use. The acquired computer software licenses have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. These costs are amortized over their estimated useful lives (two to five years).

In-house software and product development costs that are directly attributable to the design, testing and development of identifiable and unique software and products, controlled by the Group, are recognized as intangible assets when the following criteria are met:

• It is technically feasible to complete the software or product so that it will be available for use;

• Management intends to complete the software or product and use or sell it;

• There is an ability to use or sell the software or product;

• It can be demonstrated how the software or product will generate probable future economic benefits;

• Adequate technical, financial and other resources to complete the development and use or sell the software or product are available; and

• The expenditure attributable to the software or product during its development can be reliably measured.

Directly attributable costs that are capitalized as part of the intangible assets include software and product development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet the criteria are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period if the criteria are subsequently met.

Costs, including annual licenses, associated with maintaining computer software programs are recognized as an expense as incurred.

Technology, in-house software and product development costs are capitalized on the basis of costs incurred to acquire and bring them into use. The recognized assets have a finite useful life and are subsequently carried at cost less accumulated amortization and accumulated impairment losses. In addition, they are amortized over their estimated useful lives (one to 15 years).

Impairment of non-financial assets

Impairment of non-financial assets

Assets that have an indefinite useful life, goodwill and intangible assets that are not ready to use are not subject to amortization but are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Assets that are subject to amortization or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell, and value-in-use. In assessing the value-in-use, the estimated future cash flows are discounted to their present value using the pre-tax discount rate that reflects current market assessments on the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs, i.e. operating segments). Non-financial assets other than goodwill that have suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Financial assets

Financial assets

2.8.1 Classification

The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the end of the reporting period, which are classified as non-current assets. The Group’s loans and receivables comprise trade and other receivables, finance lease receivables, restricted cash and cash and cash equivalents in the statement of financial position.

2.8.2 Recognition and derecognition

Regular way purchases and sales of financial assets are recognized on the trade date (the date on which the Group commits to purchase or sell the asset). Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership.

2.8.3 Measurement

Financial assets are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are expensed in the income statement.

Loans and receivables

Loans and receivables are subsequently carried at amortized cost using the effective interest method, less any impairment losses.

Impairment of financial assets

Impairment of financial assets

The Group assesses, at the end of each reporting period, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

Loans and receivables

Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and where observable data indicates that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

For the loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred), discounted at the financial asset’s original effective interest rate. The asset’s carrying amount is reduced and the amount of the loss is recognized in the income statement. If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument’s fair value using an observable market price.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the reversal of the previously recognized impairment loss is recognized in the income statement.

Fair value

Fair value

Fair value is determined in accordance with IFRS 13 Fair Value Measurement and is categorized as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly (that is, as prices) or indirectly (that is, derived from prices); and

• Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The carrying amounts for cash and cash equivalents, restricted cash, trade and other receivables (excluding pre-payments), trade and other payables (excluding leave pay) and the current portion of leases approximate fair value due to their short-term nature.

Offsetting financial instruments

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

Inventories

Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (“FIFO”), actual cost or weighted average cost basis, depending on the nature of the Group entity in which it is held. The cost of finished goods includes the cost of manufacturing as charged by third parties. It excludes borrowing costs. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.

Trade receivables

Trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. If collection is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.

Net cash and cash equivalents

Net cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flows include cash on hand, deposits held on call with banks and bank overdrafts; all of which are available for use by the Group and have an original maturity of less than three months. Bank overdrafts are included within current liabilities on the statement of financial position.

Restricted cash

Restricted cash

Restricted cash includes short-term deposits and amounts held that are not highly liquid and is accounted for as loans and receivables.

Stated capital

Stated capital

Ordinary shares are classified as equity. Incremental external costs directly attributable to the issue of new shares or the exercise of share options are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity instruments (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the parent as treasury shares until the shares are canceled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the parent.

Trade and other payables

Trade and other payables

Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Trade and other payables are initially recognized at fair value and are subsequently measured at amortized cost using the effective interest method.

Non-current assets held for sale

Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, and financial assets, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset is recognized at the date of derecognition.

Non-current assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale are presented separately from the other assets in the statement of financial position.

Taxation

Taxation

2.18.1. Current and deferred income taxes

The tax expense for the year comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. In addition, to the extent the tax deduction in respect of equity-settled share-based payments exceeds the cumulative share-based payment expense, the tax is recognized directly in equity.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill; and neither are deferred tax liabilities nor deferred tax assets accounted for if they arise from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized.

Deferred tax (‘outside basis’ deferred tax) relating to temporary differences arising from investments in subsidiaries is considered as follows:

• Deferred tax liabilities are recognized, except to the extent that the Group is able to control the timing of the reversal of the temporary differences, and it is probable that they will not reverse in the foreseeable future.

• Deferred tax assets are recognized only to the extent that it is probable the temporary differences will reverse in the foreseeable future and there is sufficient taxable profit available against which the temporary differences can be utilized.

Temporary differences arising from investments in subsidiaries in the consolidated financial statements are different from those arising in the Company financial statements. This is because in the Company financial statements, an investment in a subsidiary is carried at cost; whereas the carrying amount in the consolidated financial statements is the consolidated net assets of the subsidiary.

Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

Dividend tax

Dividends tax

Dividend withholding tax is currently payable at a rate of 20% (a rate of 15% was applicable for dividends paid before February 22, 2017) on dividends distributed to shareholders. This tax is not attributable to the Company but rather paid to the tax authorities on behalf of the shareholders through use of regulatory intermediaries, with only the net amount of the dividend being remitted to the shareholder.

Employee benefits

Employee benefits

(a) Short-term benefits

Remuneration to employees in respect of services rendered during a reporting period is recognized as an expense in that reporting period. Provision is made for accumulated leave and for short-term benefits when there is no realistic alternative other than to settle the liability, and there is a formal plan and the amounts to be paid are determined before the time of issuing the financial statements.

(b) Defined contribution plan

The Group operates defined contribution plans. A defined contribution plan is one under which the Group pays a fixed percentage of employees’ remuneration as contributions into a separate fund, and the Group will have no further legal or constructive obligations to pay additional contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans in respect of services rendered during a period are recognized as staff costs when they are due.

(c) Short-term incentives — bonus plans

The Group recognizes a liability and an expense for bonuses based on the achievement of defined key performance criteria. An accrual is recognized where the Group is contractually obliged or where there is a past practice that has created a constructive obligation.

(d) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits at the earlier of the following dates: (a) when the Group can no longer withdraw the offer of those benefits; and (b) when the entity recognizes costs for a restructuring that is within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets, and involves payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

Share-based payments

Share-based payments

Equity-settled

The Group operates equity-settled share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments of the Company. The equity instruments that may be issued in terms of the plans include share options, retention shares, performance shares and share appreciation rights. The fair value, determined at grant date, of the employee services received in exchange for the grant of equity instruments is recognized as an expense at Group level with a corresponding credit to equity. The total amount to be expensed is determined by reference to the grant date fair value of the equity instruments granted:

• Including any market performance conditions;

• Excluding the impact of any service and non-market performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and

• Including the impact of any non-vesting conditions.

Non-market performance and service conditions are included in the assumptions about the number of equity instruments that are expected to vest. The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of equity instruments that are expected to vest based on the non-market vesting and service conditions. It recognizes the impact of the revision to original estimates, if any, in the income statement, with a corresponding entry to equity.

When equity-settled instruments are exercised, the Company may elect to issue new shares or use treasury shares to settle its resultant obligations. For share options, the proceeds received, net of any directly attributable transaction costs, are credited to stated capital (as there are no par value shares).

The grant by the Company of equity-settled instruments to the employees of subsidiary undertakings in the Group is treated as a capital contribution to those subsidiaries. The fair value of employee services received, measured by reference to the grant date fair value, is recognized over the vesting period as an increase to investment in subsidiary undertakings, with a corresponding credit to equity in the parent entity financial statements.

During fiscal 2018, the Company implemented a recharge agreement with its South African subsidiaries, whereby the Company will recharge the relevant subsidiary an amount equal to the market value, at exercise date, of the shares issued to the participants of the plan upon exercise. A recharge asset is recognized in the parent entity financial statements from grant date of the equity-settled instruments for the expected recharge amount based on the proportion of the vesting period that has passed. The expected recharge amount reflects expected attrition and the current share price. The contra entry to the recharge asset is recognized against the relevant investment in subsidiary undertakings as it is considered a return of the afore-mentioned capital contribution. Once the carrying value of an investment in subsidiary undertakings has been reduced to nil, further recharges from that subsidiary are recognized in profit or loss as distributions.

The Group classifies awards issued with settlement alternatives as equity-settled when the Group holds the choice of settlement and there is no past practice of settling in cash. If the counterparty holds the choice of settlement, the award is classified as cash-settled.

Cash-settled

For cash-settled share-based payment transactions, the Group measures goods or services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the Group shall remeasure the fair value of the liability at each reporting date and at the date of settlement, with any changes in fair value recognized in the income statement.

Provisions

Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.

Provisions which are expected to be settled in a period greater than 12 months are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as an interest expense.

Provision for the estimated liability on all products under warranty is made on the basis of claims experience.

Provision for the estimated liability for maintenance costs is made on a per unit basis when the obligation to repair occurs.

Provision for the anticipated costs associated with the restoration of leasehold property (decommissioning provision) is based on the Group’s best estimate of those costs required to restore the property to its original condition.

Restructuring provisions are recognized when the Group has developed a detailed formal plan for restructuring and has raised a valid expectation that it will carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring and is recorded in administration and other charges in the income statement.

Revenue recognition

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course of the Group’s activities. Revenue mainly includes amounts earned on the sale of hardware units, subscription service sales to customers and installation revenue. Revenue is shown net of discounts, value added tax, returns and after eliminating sales within the Group.

The Group offers certain arrangements whereby the customer can purchase a combination of the products and services as referred to above. Where such multiple element arrangements exist, the amount of revenue allocated to each element is based on the relative fair values of the various elements offered in the arrangement. When applying the relative fair value approach, the fair values of each element are determined based on the current market price of each of the elements when sold separately.

The Group recognizes revenue when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities, as outlined below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Invoicing for the various products and services, when sold separately or as part of a multiple element revenue arrangement, occurs based on the specific contractual terms and conditions.

The Group distributes products to certain small fleet operators and consumers through distributors. Distributors act as agents and hardware revenue is only recognized when the distributor sells the hardware unit to the end customer. Once a unit is sold to a customer, the customer enters into a service agreement directly with the Group for the product. The obligation to supply the service and the credit risk rests with the Group. The service revenue is recognized when the service is rendered (i.e. on a monthly basis).

The Group also sells hardware to motor vehicle dealerships for fitment into their vehicle trading stock. These dealerships purchase the hardware from the Group and are considered principals because they obtain title to the hardware and bear the risks and rewards of ownership. The buyer of the vehicle then enters into a service-only contract with the Group. Revenue is recognized upon sale of the hardware to the dealership and subscription revenue is recognized as the services are provided to the customer.

The Group distributes products to enterprise fleet customers through dealers. Dealers are considered principals in respect of the sale of hardware and revenue is recognized upon sale of the hardware unit to the dealer. Similar to the relationship with consumers and small fleet customers originated through distributors, the responsibility for providing services rests with the Group and revenue is recognized as the service is rendered.

(a) Subscription revenue

Subscription revenue is recognized over the term of the agreement as it is earned. When contracted services are performed through a number of repetitive acts over the contract period, revenue is recognized on a straight-line basis over the contract period.

(b) Hardware sales

All hardware has value on a standalone basis. Revenue from hardware sales is recognized once the risks and rewards of ownership have transferred.

(c) Driver training and other services

Revenue is recognized at the contractual hourly/daily rate as the training is performed.

(d) Rental revenue

Where hardware is provided as part of a service contract the risk and rewards of ownership do not transfer and service revenue from the rental unit is recognized over the period of the service and included in subscription revenue.

(e) Installation revenue

Revenue earned from the installation of hardware in customer vehicles is recognized once the installation has been completed.

(f) Repair services

Revenue in respect of repair services, which forms part of the monthly subscription, is recognized on a monthly basis over the period of the service arrangement.

Interest income

Interest income

Interest income is recognized on a time-proportion basis with reference to the principal amount receivable and the effective interest rate applicable.

Dividend income

Dividend income

Dividend income is recognized when the right to receive payment is established.

Leases

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

2.25.1. The Group as a lessor

When assets are leased out under a finance lease, the present value of the minimum lease payments is recognized as a receivable. The difference between the gross receivable and the present value of the receivable is recognized as unearned finance income. The method for allocating gross earnings is referred to as the actuarial method. The actuarial method allocates rentals between finance income and repayment of capital in each accounting period in such a way that finance income will emerge as a constant rate of return on the lessor’s net investment in the lease.

Assets leased under operating leases are included under the appropriate category of assets in the statement of financial position. Lease income on operating leases is recognized over the term of the lease on a straight-line basis.

2.25.2. The Group as a lessee

Payments made under operating leases are charged to the income statement on a straight-line basis over the term of the lease.

Dividend distribution

Dividend distribution

Any dividend distribution to the Company’s shareholders is recognized as a liability in the financial statements in the period in which the dividends are approved by the Company’s Board of Directors.

Financial risk management

Financial risk management

3.1 Financial risk factors

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets as it relates to financial risks and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out under policies approved by the Board of Directors. The Board has provided approved formal policies covering specific areas, such as foreign exchange risk as well as cash management and banking facilities.

(a) Market risk

(i) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect to the United States Dollar, the South African Rand, the Euro, the Australian Dollar, the Brazilian Real and the British Pound.

Foreign exchange risk arises when future commercial transactions or recognized assets and liabilities and net investments in foreign operations are denominated in a currency that is not the entity’s functional currency.

The Group has implemented a foreign currency hedging policy to limit the Group’s exposure to fluctuations in foreign currencies. The foreign currency policy reduces exchange rate risk on certain recognized assets and liabilities based on economic hedging principles as opposed to using derivative financial instruments.

The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the assets of the Group’s foreign operations is reduced as a result of assets and liabilities being denominated in the same foreign currencies.

As a result of our cash reserves being held in multiple currencies, the Group has significant foreign currency exposure. A financial risk sensitivity analysis is presented in note 36.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates.

The Group’s cash flow interest rate risk arises from restricted cash, cash and cash equivalents and the bank overdraft. Bank overdrafts issued at variable rates expose the Group to cash flow interest rate risk, which is partly offset by financial assets held at variable rates (i.e. cash and cash equivalents and restricted cash). At March 31, 2018 and 2017 the Group had no interest-bearing borrowings.

The Group is not exposed to fair value interest rate risk as the Group does not have any fixed rate interest-bearing financial instruments carried at fair value.

Interest rates are constantly monitored and appropriate steps are taken to ensure that the Group’s exposure to interest rate fluctuations is limited. This includes obtaining approval from the Board for all changes to and new borrowing facilities entered into. Refer to note 36 for an interest rate risk sensitivity analysis.

(iii) Price risk

Currently the Group does not have significant price risk. The Group is not exposed to commodity price risk.

(b) Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. Credit risk arises from restricted cash, cash and cash equivalents as well as credit exposures to customers. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position, net of impairment losses where relevant.

Credit risk relating to accounts receivable balances is managed by each local entity which is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Group has a policy in place governing the allowance for credit losses.

Cash investments are only placed with reputable financial institutions rated BB and above (note 12). All changes in or new banking arrangements entered into are in line with the Board’s approval framework. Refer to note 10 for further disclosure on credit risk.

(c) Liquidity risk

Liquidity risk is the risk that there will be insufficient funds available to settle obligations when they are due.

The Group has limited liquidity risk due to surplus cash balances and the recurring nature of its income, which generates strong cash inflows. The level of cash balances in the Group is monitored weekly and cash generated from operations is reviewed against planned cash flows on a monthly basis. In addition, working capital reviews are performed monthly.

Surplus cash is invested in interest-bearing current accounts and time deposits that are expected to readily generate cash inflows for managing liquidity risk.

In addition, the Group maintains headroom on its undrawn borrowing facilities to ensure that the Group does not breach borrowing limits on its borrowing facilities. Refer to note 37 for further disclosure on liquidity risk.

Capital risk management

Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern while enhancing the returns for shareholders and ensuring benefits for other stakeholders. The Board of Directors monitors capital by reviewing the net cash position. The Company currently has no long-term borrowings and none of its overdraft facilities, as set out in note 15, were subject to any financial covenants during fiscal 2018 and fiscal 2017.

In order to maintain the capital structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt, where applicable.

Critical accounting estimates and judgements

Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities during fiscal 2018 are outlined below:

(a) Warranty claims

The Group generally offers warranties on its hardware units. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as recent trends that might suggest that past cost information may differ from future claims.

(b) Maintenance provision

The Group, in some instances, offers maintenance services as part of its revenue contracts. Management estimates the related provision for maintenance costs per vehicle when the obligation to repair occurs.

(c) Current and deferred income taxes

The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide provision for income taxes. Where applicable tax legislation is subject to interpretation, management makes assessments, based on expert tax advice, of the relevant tax that is likely to be paid and provides accordingly. When the final outcome is determined and there is a difference, this is recognized in the period in which the final outcome is determined.

Determining how much tax to recognize when an uncertain tax position exists requires judgement. The Group applies the measurement principle in IAS 12 Income Taxes, when measuring the amount of tax to recognize related to an uncertain tax position. Therefore, the Group measures uncertain tax positions based on a weighted average estimate, taking into account all of the tax uncertainties related to the tax position taken.

The Company's interests in subsidiaries include certain loans denominated in foreign currencies which are repayable by agreement of both parties. Realization of such loans will result in taxable foreign exchange differences in accordance with prevailing legislation in South Africa. Although the Company controls the timing of the reversal of these temporary differences, given the volatility of the South African Rand and based on the Group's current assessment, it is not considered probable that the temporary difference relating to a loan between the Company and a South Africa subsidiary will not reverse in the foreseeable future. Hence, a deferred tax liability has been recognized in respect of these temporary differences (note 18).

The Group applies judgement when recognizing deferred tax assets in respect of tax losses. Deferred tax assets in respect of tax losses are recognized for the carry forward of unused tax losses to the extent that it is probable that future taxable profit will be available against which the unused tax losses can be utilized. In determining the level of future taxable profit that will be available the Group considers both an entity's historical profitability and estimates of future profitability and recognizes deferred tax for the whole or the part of the temporary difference that is more likely than not to be recovered. Where an entity has incurred historical losses, deferred tax assets are only recognized when the particular entity has shown a reasonable period of starting to return to profitability.

(d) Impairment estimates

The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in note 2.7. Other assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable.

For the purposes of assessing impairment, assets are grouped into CGUs at the lowest levels for which there are separately identifiable cash flows. The recoverable amount is based on the CGU’s value-in-use. These calculations require the use of estimates (see notes 6 and 7).

(e) Customer relationships

The useful life applied principally reflects management’s view of the average economic life of the customer base and is assessed by reference to factors such as customer churn rates. An increase in churn rates may lead to a reduction in the estimated useful life.

(f) Product development cost

Product development cost directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recorded as intangible assets by the Group when the criteria in note 2.6 have been met. The assessment as to when these criteria have been met is subjective and capitalization has been based on management’s best judgement of facts and circumstances in existence at year-end.

The useful lives of development costs capitalized are reviewed on an at least annual basis. The useful life estimates are based on historical experience with similar assets as well as anticipation of future events such as technological changes, which may impact the useful life. The residual values of product development costs are estimated to be zero.

(g) Provision for impairment of trade receivables

The provision for impairment of trade receivables reflects the Group’s estimates of losses arising from the failure or inability of the Group’s customers to make required payments. The provision is based on the ageing of customer accounts, customer creditworthiness and the Group’s historical write-off experience. Changes to the allowance may be required if the financial condition of the Group’s customers improves or deteriorates. An improvement in financial condition may result in lower actual write-offs. Historically, changes to the estimate of losses have not been material to the Group’s financial position and results.

(h)    Allocation between in-vehicle devices and inventory

The allocation between in-vehicle devices and inventory reflects the Group’s estimates of how units are expected to be sold, thereby it is a significant area of judgement for the Group.

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Summary of significant accounting policies (Tables)

12 Months Ended

Mar. 31, 2018

List Of Accounting Policies [Abstract]

Impact of new standards, amendments, and interpretations not yet effective

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

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

Standards and amendments	Executive summary
IFRS 9 Financial Instruments (“IFRS 9”)	IFRS 9 addresses classification and measurement of financial assets and replaces the multiple classification and measurement models in IAS 39 Financial Instruments: Recognition and Measurement with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 also introduces a new impairment model and aligns hedge accounting more closely with an entity’s risk management. The standard is effective for the Group from April 1, 2018. The most relevant change to the Group is the requirement to use an expected loss model instead of the incurred loss model, which is currently being used, when assessing the recoverability of trade and other receivables. Based on the expected loss model contained in IFRS 9, the expected increase in the provision for doubtful debts at April 1, 2018 is between R2.0 million and R4.0 million.
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	IFRS 15 replaces IAS 18 Revenue and IAS 11 Construction Contracts. It is a single, comprehensive revenue recognition model for all contracts with customers and has the objective of achieving greater consistency in the recognition and presentation of revenue. In terms of the new standard, revenue is recognized based on the satisfaction of performance obligations, which occurs when control of goods or services transfers to a customer. The revenue standard is effective for annual periods beginning on or after January 1, 2018 and therefore is applicable for the Group from April 1, 2018. The standard permits a modified retrospective cumulative catch-up approach for the adoption, which the Group has decided to apply. Under this approach the Group will recognize transitional adjustments in retained earnings on the date of initial application (i.e. April 1, 2018), without restating the comparative period. Under the practical expedient, the new requirements only need to be applied to contracts that are not completed as of April 1, 2018. The Group has assessed the impact of applying IFRS 15 on its financial statements and has identified the following areas that will be affected: Costs incurred in obtaining a contract: Commissions incurred to acquire contracts need to be capitalized and amortized, unless the amortization period is 12 months or less. Currently, the Group expenses commissions. Under IFRS 15, the amortization expense reflects the settlement of the related performance obligations, which, depending on the specific contract, may include hardware, installation, training and/or service. To the extent commission capitalized is commensurate, the commission attributable to service will be amortized over the minimum contractual period or, if shorter, the expected life of the contract. To the extent it is not commensurate, the commission capitalized that is attributable to service will be amortized over the expected life of the contract. The expected impact on the Group at April 1, 2018 is as follows: — Capitalized commission asset with a net book value of between R43.0 million and      R48.0 million; and — Additional recurring commission liability of between R6.0 million and R8.0 million. Recurring commission is commission which is payable for each month the customer remains with the Group. Since the commission relates to acquiring a customer contract, as part of the adoption of IFRS 15, a recurring commission liability will be recognized at the date on which the contract is acquired. The measurement will reflect the total commission payable over the minimum contractual period or, if shorter, the expected life of the contract, together with the effect of the time value of money, where significant. Under current accounting the recurring commissions are accrued for on a monthly basis. Amortization expense of external commissions capitalized under IFRS 15 will be recognized in cost of sales, while that of internal commissions will be recognized in sales and marketing costs. Commissions not capitalized under the 12-month practical expedient will also be classified in the same manner. This is in line with the current income statement presentation of the commission expense. The impact of IFRS 15 on both cost of sales and sales and marketing costs for fiscal 2019 is not expected to be material based on current forecasts.

Standards and amendments	Executive summary
IFRS 15 Revenue from Contracts with Customers (“IFRS 15”)	Significant financing: In respect of contracts for which the Group receives payment more than 12 months in advance, interest expense will need to be accrued on the income received in advance liability. This will result in the revenue being measured at a higher amount when it is recognized, compared to current accounting. At April 1, 2018, it is expected that the income received in advance liability (which will be disclosed as ‘liabilities related to contracts with customers’) will be between R1.0 million and R3.0 million higher than the balance at March 31, 2018. Fixed escalations: Fixed escalations will need to be spread evenly over the contract period resulting in the related revenue being different to what is actually billed. In the earlier part of the contract, revenue will be higher than the amount billed, while in the latter part it will be lower. Currently, the Group recognizes the increase in revenue due to fixed escalations only once the escalations are effective. A contract asset of between R1.0 million and R2.0 million is expected to be recognized on April 1, 2018, reflecting the amount by which revenue should have been higher under IFRS 15 in periods prior to March 31, 2018 as a result of straight-lining the fixed escalations.
IFRS 16 Leases (“IFRS 16”)	IFRS 16 replaces IAS 17 Leases and addresses the accounting and disclosures for leases. The standard provides a single lessee accounting model, requiring lessees to recognize right-of-use assets and lease liabilities for all leases, unless the lease term is 12 months or less or the underlying asset is a low-value asset. Lessors continue to classify leases as operating or finance, with IFRS 16’s approach to lessor accounting remaining substantially unchanged from its predecessor, IAS 17. IFRS 16 applies to annual reporting periods beginning on or after January 1, 2019, but can be early adopted. Given that the Group will be applying IFRS 15 from April 1, 2018, the Group decided to also adopt IFRS 16 from this date. The Group has chosen to apply the ‘simplified approach’ on adoption of IFRS 16 that includes certain relief related to the measurement of the right-of-use asset and the lease liability at April 1, 2018, rather than full retrospective application. Furthermore, the ‘simplified approach’ does not require a restatement of comparatives. The Group leases land and buildings, office equipment and vehicles which are currently treated as operating leases. The expected impact on the Group at April 1, 2018 is as follows:   — Right-of-use asset with a net book value of between R29.0 million and R32.0 million; and   — Lease liability (net of accruals/prepayments already recognized) of between R31.0 million      and R35.0 million.

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

IFRS 9 assets	(R2.0 million to R4.0 million)
IFRS 15 assets	R44.0 million to R50.0 million
IFRS 16 assets	R29.0 million to R32.0 million
Total assets	R71.0 million to R78.0 million
IFRS 15 liabilities	R7.0 million to R11.0 million
IFRS 16 liabilities	R31.0 million to R35.0 million
Deferred tax liabilities	R6.0 million to R10.0 million
Total liabilities	R44.0 million to R56.0 million
Net increase in retained income	R22.0 million to R27.0 million

Summary of the expected impact on fiscal 2019 results of adopting IFRS 9, IFRS 15 & IFRS 16:

The impact on profit after tax for fiscal 2019 is not expected to be material.

Estimated useful lives used in calculation of depreciation on assets

Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life, as follows:

Property: Buildings	50 years
Plant and equipment	3 — 20 years
Motor vehicles	3 — 7 years
Other: Furniture, fittings and equipment	1 — 10 years
Computer and radio equipment	2 — 6 years
In-vehicle devices installed	1 — 5 years

	March 31,  2018 R’000	March 31,  2017 R’000
Non-current assets
Property, plant and equipment	334,038	294,120
Current assets
Assets classified as held for sale	17,058	—
Total property, plant and equipment	351,096	294,120

	Property R’000		Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000		In-vehicle devices installed R’000		Total owned R’000
At April 1, 2016
Cost	22,288		51,474		65,160		61,989		216,862		417,773
Accumulated depreciation and impairments	(4,324	)	(33,759	)	(51,186	)	(387	)	(92,533	)	(182,189	)
Net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Year ended March 31, 2017
Opening net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Additions	—		4,712		6,698		158,600		—		170,010
Transfers	—		—		—		(161,532	)	161,532		—
Reversal of impairment (notes 5, 23, 29, 31.2)	—		—		—		—		791		791
Disposals*	—		(181	)	(80	)	—		(370	)	(631	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(6,759	)	(7,785	)	—		(83,511	)	(98,508	)
Currency translation differences	—		(616	)	(487	)	(3,200	)	(8,823	)	(13,126	)
Closing net book amount	17,511		14,871		12,320		55,470		193,948		294,120
At March 31, 2017
Cost	22,288		48,186		58,048		55,470		333,057		517,049
Accumulated depreciation and impairments	(4,777	)	(33,315	)	(45,728	)	—		(139,109	)	(222,929	)
Net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Year ended March 31, 2018
Opening net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Additions	—		4,090		4,630		229,528		—		238,248
Transfers	—		(613	)	613		(232,050	)	232,050		—
Assets classified as held for sale	(17,058	)	—		—		—		—		(17,058	)
Impairment (notes 5, 23, 29, 31.2)	—		(6	)	(3	)	—		—		(9	)
Disposals**	—		(606	)	(165	)	—		(1,165	)	(1,936	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(5,237	)	(6,772	)	—		(139,483	)	(151,945	)
Currency translation differences	—		(280	)	(253	)	(2,777	)	(24,072	)	(27,382	)
Closing net book amount	—		12,219		10,370		50,171		261,278		334,038

	Property R’000	Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000	In-vehicle devices installed R’000		Total owned R’000
Year ended March 31, 2018
Cost	—	47,066		46,735		50,171	470,545		614,517
Accumulated depreciation and impairments	—	(34,847	)	(36,365	)	—	(209,267	)	(280,479	)
Net book amount	—	12,219		10,370		50,171	261,278		334,038

* The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2017

included R5.2 million relating to plant, equipment, vehicles and other, R10.1 million relating to computer and radio equipment and R31.9 million relating to

in-vehicle devices installed.

** The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2018

included R1.2 million relating to plant, equipment, vehicles and other, R14.7 million relating to computer and radio equipment and R63.9 million relating to

in-vehicle devices installed.

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Segment information (Tables)

12 Months Ended

Mar. 31, 2018

Operating Segments [Abstract]

Revenue information for reportable segments

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2018 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	872,646	84,832	957,478	440,900
Europe	115,199	78,061	193,260	65,326
Americas	194,890	32,715	227,605	79,127
Middle East and Australasia	200,241	78,424	278,665	106,835
Brazil	50,735	3,695	54,430	16,747
Total Regional Sales Offices	1,433,711	277,727	1,711,438	708,935
Central Services Organization	904	140	1,044	(149,878	)
Total Segment Results	1,434,615	277,867	1,712,482	559,057
Corporate and consolidation entries	—	—	—	(117,191	)
Total	1,434,615	277,867	1,712,482	441,866

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2017 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	772,224	86,945	859,169	344,077
Europe	113,223	64,108	177,331	52,369
Americas	121,462	38,957	160,419	26,804
Middle East and Australasia	199,474	104,976	304,450	91,149
Brazil	32,653	5,158	37,811	9,394
Total Regional Sales Offices	1,239,036	300,144	1,539,180	523,793
Central Services Organization	878	—	878	(127,828	)
Total Segment Results	1,239,914	300,144	1,540,058	395,965
Corporate and consolidation entries	—	—	—	(94,352	)
Total	1,239,914	300,144	1,540,058	301,613

The segment information provided to the Group’s CODM for the reportable segments for the year ended March 31, 2016 is as follows:

	Subscription revenue R'000	Hardware and other revenue R'000	Total revenue R’000	Adjusted EBITDA R’000
Regional Sales Offices
Africa	711,208	96,699	807,907	320,466
Europe	110,251	51,736	161,987	35,359
Americas	115,413	41,527	156,940	2,908
Middle East and Australasia	202,163	111,764	313,927	107,279
Brazil	18,063	5,066	23,129	1,931
Total Regional Sales Offices	1,157,098	306,792	1,463,890	467,943
Central Services Organization	1,131	—	1,131	(113,403	)
Total Segment Results	1,158,229	306,792	1,465,021	354,540
Corporate and consolidation entries	—	—	—	(77,325	)
Total	1,158,229	306,792	1,465,021	277,215

Reconciliation of adjusted EBITDA to profit for the year

A reconciliation of Adjusted EBITDA to profit for the year is disclosed below.

	March 31, 2018		March 31, 2017		March 31, 2016
	R’000		R’000		R’000
Reconciliation of Adjusted EBITDA to profit for the year
Adjusted EBITDA	441,866		301,613		277,215
Add:
Net profit on sale of property, plant and equipment and intangible assets	1,264		—		—
Reversal of impairment(1)	—		791		—
Decrease in restructuring cost provision	741		—		333
Less:
Depreciation(2)	(151,945	)	(98,508	)	(75,037	)
Amortization(3)	(63,926	)	(44,734	)	(47,586	)
Impairment(4)	(2,696	)	(3,166	)	(4,776	)
Share-based compensation costs	(10,352	)	(3,311	)	(5,820	)
Equity-settled share-based compensation costs	(9,000	)	(2,247	)	(7,838	)
Cash-settled share-based compensation costs(5)	(1,352	)	(1,064	)	2,018
Net loss on sale of property, plant and equipment and intangible assets	—		(262	)	(208	)
Increase in restructuring cost provision(6)	—		(14,561	)	—
Transaction costs arising from investigating strategic alternatives(7)	—		—		(5,037	)
Operating profit	214,952		137,862		139,084
Add: Finance (costs)/income — net	(69	)	10,391		150,327
Less: Taxation	(33,690	)	(26,812	)	(106,920	)
Profit for the year	181,193		121,441		182,491

(1) The reversal of impairment of R0.8 million in fiscal 2017 related to in-vehicle devices in the Brazil segment.

(2) Includes depreciation of property, plant and equipment (including in-vehicle devices).

(3) Includes amortization of intangible assets (including capitalized in-house development costs and intangible assets identified as part of a business combination).

(4) In fiscal 2018, asset impairments relate to the impairment of capitalized product development costs of R2.3 million in the Africa segment and R0.4 million in the CSO segment. In fiscal 2017, asset impairments related to the impairment of capitalized product development costs of R2.6 million in the Africa segment and R0.5 million in the CSO segment. In fiscal 2016 includes R2.9 million impairment of in-house software and R1.9 million related to in-vehicle devices.

⁽⁵⁾  Cash-settled share-based payments are described in note 20.

⁽⁶⁾  Restructuring costs incurred in fiscal 2017 are described in note 19.

⁽⁷⁾  Transaction costs incurred in 2016 arising from investigating strategic alternatives are described in note 23.

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Property, plant and equipment (Tables)

12 Months Ended

Mar. 31, 2018

Property, plant and equipment [abstract]

Property, plant and equipment detail

Depreciation on other assets is calculated using the straight-line method to reduce their cost to their residual values over their estimated useful life, as follows:

Property: Buildings	50 years
Plant and equipment	3 — 20 years
Motor vehicles	3 — 7 years
Other: Furniture, fittings and equipment	1 — 10 years
Computer and radio equipment	2 — 6 years
In-vehicle devices installed	1 — 5 years

	March 31,  2018 R’000	March 31,  2017 R’000
Non-current assets
Property, plant and equipment	334,038	294,120
Current assets
Assets classified as held for sale	17,058	—
Total property, plant and equipment	351,096	294,120

	Property R’000		Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000		In-vehicle devices installed R’000		Total owned R’000
At April 1, 2016
Cost	22,288		51,474		65,160		61,989		216,862		417,773
Accumulated depreciation and impairments	(4,324	)	(33,759	)	(51,186	)	(387	)	(92,533	)	(182,189	)
Net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Year ended March 31, 2017
Opening net book amount	17,964		17,715		13,974		61,602		124,329		235,584
Additions	—		4,712		6,698		158,600		—		170,010
Transfers	—		—		—		(161,532	)	161,532		—
Reversal of impairment (notes 5, 23, 29, 31.2)	—		—		—		—		791		791
Disposals*	—		(181	)	(80	)	—		(370	)	(631	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(6,759	)	(7,785	)	—		(83,511	)	(98,508	)
Currency translation differences	—		(616	)	(487	)	(3,200	)	(8,823	)	(13,126	)
Closing net book amount	17,511		14,871		12,320		55,470		193,948		294,120
At March 31, 2017
Cost	22,288		48,186		58,048		55,470		333,057		517,049
Accumulated depreciation and impairments	(4,777	)	(33,315	)	(45,728	)	—		(139,109	)	(222,929	)
Net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Year ended March 31, 2018
Opening net book amount	17,511		14,871		12,320		55,470		193,948		294,120
Additions	—		4,090		4,630		229,528		—		238,248
Transfers	—		(613	)	613		(232,050	)	232,050		—
Assets classified as held for sale	(17,058	)	—		—		—		—		(17,058	)
Impairment (notes 5, 23, 29, 31.2)	—		(6	)	(3	)	—		—		(9	)
Disposals**	—		(606	)	(165	)	—		(1,165	)	(1,936	)
Depreciation charge (notes 5, 23, 31.2)	(453	)	(5,237	)	(6,772	)	—		(139,483	)	(151,945	)
Currency translation differences	—		(280	)	(253	)	(2,777	)	(24,072	)	(27,382	)
Closing net book amount	—		12,219		10,370		50,171		261,278		334,038

	Property R’000	Plant, equipment, vehicles and other R’000		Computer and radio equipment R’000		In-vehicle devices uninstalled R’000	In-vehicle devices installed R’000		Total owned R’000
Year ended March 31, 2018
Cost	—	47,066		46,735		50,171	470,545		614,517
Accumulated depreciation and impairments	—	(34,847	)	(36,365	)	—	(209,267	)	(280,479	)
Net book amount	—	12,219		10,370		50,171	261,278		334,038

* The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2017

included R5.2 million relating to plant, equipment, vehicles and other, R10.1 million relating to computer and radio equipment and R31.9 million relating to

in-vehicle devices installed.

** The historical costs and accumulated depreciation on fully depreciated assets which were retired and removed from the accounting records during fiscal 2018

included R1.2 million relating to plant, equipment, vehicles and other, R14.7 million relating to computer and radio equipment and R63.9 million relating to

in-vehicle devices installed.

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Intangible assets (Tables)

12 Months Ended

Mar. 31, 2018

Intangible Assets [Abstract]

Summary of intangible assets and goodwill

	Goodwill R’000		Patents and trademarks R’000		Customer relationships R’000		Product development costs R’000		Computer software, technology, in-house software  and other R’000		Total R’000
At April 1, 2016
Cost	654,329		3,036		40,165		206,836		93,801		998,167
Accumulated amortization and impairments	—		(1,413	)	(10,180	)	(76,875	)	(62,848	)	(151,316	)
Net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Year ended March 31, 2017
Opening net book amount	654,329		1,623		29,985		129,961		30,953		846,851
Additions	—		119		—		78,020		41,269		119,408
Disposals*	—		—		—		—		—		—
Amortization charge (notes 23 and 31.2)	—		(816	)	(6,762	)	(28,847	)	(8,309	)	(44,734	)
Impairment loss (notes 5, 23, 29 and 31.2)	—		—		—		(3,166	)	—		(3,166	)
Currency translation differences	(35,419	)	—		—		(179	)	(861	)	(36,459	)
Closing net book amount	618,910		926		23,223		175,789		63,052		881,900
At March 31, 2017
Cost	618,910		3,155		40,165		265,637		130,131		1,057,998
Accumulated amortization and impairments	—		(2,229	)	(16,942	)	(89,848	)	(67,079	)	(176,098	)
Net book amount	618,910		926		23,223		175,789		63,052		881,900
Year ended March 31, 2018
Opening net book amount	618,910		926		23,223		175,789		63,052		881,900
Additions	—		31		5,300		65,342		23,965		94,638
Transfers	—		—		—		(365	)	365		—
Disposals**	—		—		—		(1,188	)	—		(1,188	)
Amortization charge (notes 23 and 31.2)	—		(513	)	(7,516	)	(37,639	)	(18,258	)	(63,926	)
Impairment loss (notes 5, 23, 29, 31.2)	—		—		—		(2,687	)	—		(2,687	)
Currency translation differences	(7,266	)	—		(356	)	(235	)	(2,353	)	(10,210	)
Closing net book amount	611,644		444		20,651		199,017		66,771		898,527
At March 31, 2018
Cost	611,644		1,031		44,990		312,338		145,387		1,115,390
Accumulated amortization and impairments	—		(587	)	(24,339	)	(113,321	)	(78,616	)	(216,863	)
Net book amount	611,644		444		20,651		199,017		66,771		898,527

* The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2017 year included R16.4 million relating to product development costs andR1.7 million relating to computer software, technology, in-house software and other.

** The historical costs and accumulated amortization on fully depreciated assets which were retired and removed from the accounting records during the 2018 year included R2.2 million relating to patents and trademarks, R13.9 million relating to product development costs and R4.3 million relating to computer software, technology, in-house software and other.

A summary of the goodwill at operating segment level is presented below:  

	March 31,  2017 R’000	Foreign currency translation differences R'000		March 31,  2018 R’000
Central Services Organization	103,119	—		103,119
Europe	109,610	(986	)	108,624
Middle East and Australasia	53,131	(6,280	)	46,851
Africa	353,050	—		353,050
Total	618,910	(7,266	)	611,644

Amortization reduction expected to be charged to the income statement over the future fiscal years

The amortization reduction expected to be charged to the income statement over the future fiscal years is as follows:

Year ended March 31,
	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028
R’000	1,694	611	748	457	334	303	158	106	106	27

Key assumptions used for value-in-use calculations

The key assumptions used for the value-in-use calculations are as follows:

2018	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.1	17.3	9.2	13.3
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.4	5.4	2.2	2.9

2017	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.6	18.6	9.8	16.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.5	5.5	2.3	2.5

The key assumptions used in the discounted cash flow analysis in fiscal 2017 were:

	March 31,  2017
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	21.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	4.5

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Finance lease receivable (Tables)

12 Months Ended

Mar. 31, 2018

Leases 1 [Abstract]

Current and non-current finance lease receivables

	March 31,  2018 R’000	March 31,  2017 R’000
Total finance lease receivable	—	162
Short-term portion receivable within 12 months	—	140
Long-term portion receivable after 12 months	—	22

Net investment in finance leases

	March 31,  2018 R’000	March 31,  2017 R’000
Gross finance lease receivable – minimum lease payments:
Not later than one year	—	145
Later than one year but not later than five years	—	22
	—	167
Unearned finance income	—	(5	)
Net investment in finance leases	—	162

The net investment in finance leases may be analyzed as follows:

	March 31,  2018 R’000	March 31,  2017 R’000
Not later than one year	—	140
Later than one year but not later than five years	—	22
Net investment in finance leases	—	162

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Inventory (Tables)

12 Months Ended

Mar. 31, 2018

Inventories [Abstract]

Disclosure of Inventories

	March 31,  2018 R’000	March 31,  2017 R’000
Inventory – finished goods	57,013	26,449

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Trade and other receivables (Tables)

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Carrying amounts of trade and other receivables

	March 31,  2018 R’000		March 31,  2017 R’000
Trade receivables	248,878		220,402
Less: Provision for impairment of trade receivables	(17,523	)	(8,783	)
Trade receivables — net	231,355		211,619
Pre-payments	27,240		24,772
Sundry debtors	27,811		24,185
	286,406		260,576

The carrying amounts of trade and other receivables are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000
South African Rand	98,148	80,037
Australian Dollar	24,016	21,754
Brazilian Real	19,129	15,684
Euro	28,192	24,411
Great Britain Pound	18,883	18,535
United Arab Emirates Dirham	2,578	3,354
United States Dollar	91,105	94,441
Other	4,355	2,360
	286,406	260,576

Ageing of trade receivables

The ageing of trade receivables at the reporting date is as follows: 

	Gross R’000	Provision for impairment R’000		Net R'000
2018
Not past due	145,346	(334	)	145,012
Past due by 1 to 30 days	51,844	(2,518	)	49,326
Past due by 31 to 60 days	24,763	(3,732	)	21,031
Past due by more than 60 days	26,925	(10,939	)	15,986
Total	248,878	(17,523	)	231,355

	Gross R’000	Provision for impairment R’000		Net R'000
2017
Not past due	129,121	(920	)	128,201
Past due by 1 to 30 days	54,340	(1,350	)	52,990
Past due by 31 to 60 days	20,999	(1,854	)	19,145
Past due by more than 60 days	15,942	(4,659	)	11,283
Total	220,402	(8,783	)	211,619

Movements in the provision for impairment of trade and other receivables

Movements in the Group’s provision for impairment of trade and other receivables are as follows:

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(13,346	)	(12,438	)
Increase in provision for impairment (note 31.2)	(24,143	)	(17,713	)
Receivables written off during the year as irrecoverable — net	19,354		16,429
Foreign currency translation differences	612		376
Closing balance	(17,523	)	(13,346	)
The Group’s provision for impairment of trade and other receivables includes:
Trade receivables	(17,523	)	(8,783	)
Sundry debtors	—		(4,563	)
Closing balance	(17,523	)	(13,346	)

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Restricted cash (Tables)

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Restricted cash

	March 31,  2018 R’000	March 31,  2017 R’000
Cash securing guarantee issued in terms of the Mobile Telephone Networks Proprietary Limited incentive agreement (denominated in South African Rand)	1,000	1,000
Cash securing guarantees issued in respect of lease agreements entered into (denominated in South African Rand)	393	393
Tax refund received erroneously (denominated in South African Rand)	7,188	—
Cash securing guarantees issued in respect of products sold by MiX Telematics Europe Limited (denominated in Euro)	1,447	1,422
Cash securing guarantees issued in respect of MiX Telematics Middle East FZE relating to employee visas in the UAE (denominated in UAE Dirham)	3,616	4,192
Cash held for purposes of distribution to MiX Telematics Enterprise BEE Trust and MiX Telematics Fleet Support Trust beneficiaries (denominated in South African Rand)	6,257	5,118
Cash securing guarantees issued in respect of property lease agreements entered into by MiX Telematics Australasia (denominated in Australian Dollar)	1,034	1,143
	20,935	13,268

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Net cash and cash equivalents (Tables)

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Disclosure of cash and cash equivalents

Net cash and cash equivalents included in the statement of cash flow comprise the following amounts which are included in the statement of financial position:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Cash and cash equivalents	308,258		375,782		877,136
Bank overdraft (note 15)	(17,720	)	(19,449	)	(16,374	)
	290,538		356,333		860,762

The credit quality of cash and cash equivalents that are not impaired can be assessed by reference to external credit ratings, based on the Fitch rating scales, as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Cash and cash equivalents
AA	110,854	197,873	743,600
A	82,738	78,605	48,757
BBB	33,962	99,304	84,779
BB	80,704	—	—
	308,258	375,782	877,136

The carrying amounts of net cash and cash equivalents are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Great Britain Pound	37,209	48,540	45,017
Brazilian Real	3,787	2,987	3,625
South African Rand	171,223	100,721	87,675
Australian Dollar	22,912	19,574	25,451
United States Dollar	48,354	178,768	698,166
Euro	4,300	4,649	(55	)
Other	2,753	1,094	883
	290,538	356,333	860,762

In addition, the Group holds the following cash resources:

	March 31,  2018 R’000	March 31,  2017 R’000
Cash and cash equivalents, net of overdrafts (note 12)	290,538	356,333

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Stated capital (Tables)

12 Months Ended

Mar. 31, 2018

Stated Capital [Abstract]

Change in shares issued and outstanding

	Number of shares 000s		Stated capital R’000
At April 1, 2016	759,138		1,320,955
Shares issued in relation to share options exercised	5,125		7,072
Share repurchase from Imperial Corporate Services Proprietary Limited	(200,828	)	(473,682	)
Balance at March 31, 2017	563,435		854,345
Shares issued in relation to share options and share appreciation rights exercised	6,001		10,726
Share repurchase under the Share Repurchase Program	(5,016	)	(18,666	)
Balance at March 31, 2018	564,420		846,405

Purchases made under the share repurchase program

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

	Total number of shares repurchased 000s	Average price paid per share (1) R	Shares canceled under the share repurchase program 000s	Total value of shares purchased as part of publicly announced program R’000	Maximum value of shares that may yet be purchased under the program R’000
June 2017	5,015,660	3.72	5,015,660	18,666	251,334
	5,015,660		5,015,660	18,666	251,334

⁽¹⁾ Including transaction costs.

Financial effect of share repurchase transaction

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

	R’000
Aggregate repurchase consideration	473,955
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 25)	(3,222	)
Transaction costs capitalized	2,949
Total share repurchase costs	473,682

Total number of awards available for issue, award prices, and assumptions

The salient details of SARs granted during fiscal 2018 are provided in the table below: 

	Total shareholder return
Grant date	May 30, 2017
Fair value (cents per share)	128.4
Award price (cents per share)	346
JSE share price on grant date (cents per share)	345
Expiry date	May 30, 2023
Performance conditions
– Total shareholder return of (%)	10.0
Remaining contractual life at March 31, 2018	5.17
Valuation assumptions and drivers
Volatility (%)	41.5
Anticipated forfeiture rate (%)	5.0
Anticipated dividend yield (%)	3.84
Annual risk-free interest rate (%)	7.51

The salient details of SARs granted during fiscal 2017 are provided in the table below:

	Total shareholder return	Total shareholder return
Grant date	November 24, 2016	May 30, 2016
Fair value (cents per share)	131.5	111.9
Award price (cents per share)	328	294
JSE share price on grant date (cents per share)	328	289
Expiry date	November 24, 2022	May 30, 2022
Performance conditions
– Total shareholder return of (%)	10.0	10.0
Remaining contractual life at March 31, 2018	4.65	4.17
Valuation assumptions and drivers
Volatility (%)	41.8	40.3
Anticipated forfeiture rate (%)	5.0	5.0
Anticipated dividend yield (%)	2.98	3.57
Annual risk-free interest rate (%)	8.20	8.74

The table below indicates the total number of awards under the LTIP which are available for issue:

	Number of awards
Reconciliation of number of awards available for issue under the LTIP
Maximum number of awards that may be issued during the life of the LTIP	120,000,000
Issued in fiscal 2015	(2,900,000	)
Number of awards available for issue as at March 31, 2015	117,100,000
Issued in fiscal 2016	(11,835,000	)
Number of awards available for issue as at March 31, 2016	105,265,000
Issued in fiscal 2017	(13,950,000	)
Number of awards available for issue as at March 31, 2017	91,315,000
Issued in fiscal 2018	(10,000,000	)
Number of awards available for issue as at March 31, 2018	81,315,000

SARs outstanding at the end of the fiscal year have the following award prices:

				March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Award price
10%	December 16, 2014	December 16, 2020	305	—	725
10%	August 31, 2015	August 31, 2021	313	7,764	9,160
10%	May 30, 2016	May 30, 2022	294	6,525	6,925
10%	November 24, 2016	November 24, 2022	328	4,000	4,000
10%	May 30, 2017	May 30, 2023	346	9,750	—
				28,039	20,810

Share options and SARs outstanding

Group executives held the following share options outstanding at March 31, 2018 (summarized by grant date):

	November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	2,500		—		2,500
C Tasker(1)	2,000		1,500		3,500
G Pretorius	1,100		1,000		2,100
C Lewis	—		1,000		1,000
	5,600		3,500		9,100
Option strike price (cents per share)	246		411
JSE share price on grant date (cents per share)	300		411
Expiry date	November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

Group executives held the following SARs outstanding at March 31, 2018 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		May 30, 2017 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		1,100		3,100
C Tasker(1)	750		750		875		1,100		3,475
P Dell(1)	200		200		875		1,100		2,375
G Pretorius	500		500		875		1,100		2,975
C Lewis	500		500		875		1,100		2,975
	2,950		2,950		3,500		5,500		14,900
JSE share price on grant date (cents per share)	319		289		328		345
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022		May 30, 2023
Performance condition
Minimum shareholder return of	10	%	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2018.

No options were held by retired executives as at March 31, 2018.

The following share options were exercised by Group executives during fiscal 2018:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
C Tasker	November 29, 2017	2,000,000	January 3, 2012	154	10	%	628
G Pretorius	August 8, 2017	400,000	November 7, 2012	246	10	%	451
G Pretorius	November 22, 2017	750,000	January 3, 2012	154	10	%	648
C Lewis	March 2, 2018	1,500,000	November 7, 2012	246	10	%	600

Group executives held the following share options outstanding at March 31, 2017 (summarized by grant date):

	January 3, 2012 000s		November 7, 2012 000s		September 10, 2014 000s		Total 000s
S Joselowitz(1)	—		2,500		—		2,500
C Tasker(1)	2,000		2,000		1,500		5,500
G Pretorius	750		1,500		1,000		3,250
C Lewis	—		1,500		1,000		2,500
	2,750		7,500		3,500		13,750
Option strike price (cents per share)	154		246		411
JSE share price on grant date (cents per share)	160		300		411
Expiry date	January 3, 2018		November 7, 2018		September 10, 2020
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

Group executives held the following SARs outstanding at March 31, 2017 (summarized by grant date):

	August 31, 2015 000s		May 30, 2016 000s		November 24, 2016 000s		Total 000s
S Joselowitz(1)	1,000		1,000		—		2,000
C Tasker(1)	750		750		875		2,375
P Dell(1)	200		200		875		1,275
G Pretorius	500		500		875		1,875
C Lewis	500		500		875		1,875
	2,950		2,950		3,500		9,400
JSE share price on grant date (cents per share)	319		289		328
Expiry date	August 31, 2021		May 30, 2022		November 24, 2022
Performance condition
Minimum shareholder return of	10	%	10	%	10	%

⁽¹⁾ Executive director at March 31, 2017.

Movements in the total number of share options outstanding and their related weighted average exercise prices are as follows: 

	Weighted average exercise price 2018 cents per share	Number  of options 2018 000s		Weighted average exercise price 2017 cents per share	Number  of options 2017 000s
Outstanding at the beginning of the year	266	14,613		235	28,913
Exercised	195	(5,513	)	138	(5,125	)
Forfeited	—	—		312	(5,875	)
Expired	—	—		112	(3,300	)
Outstanding at the end of the year	309	9,100		266	14,613
Exercisable at the end of the year	285	7,350		217	8,825

Exercise prices of share options outstanding

Share options outstanding at the end of the fiscal year have the following exercise prices: 

					March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Exercise price
5%	September 13, 2011	September 13, 2017	130	cents	—	263
10%	January 3, 2012	January 3, 2018	154	cents	—	2,750
10%	November 7, 2012	November 7, 2018	246	cents	5,600	8,100
10%	September 10, 2014	September 10, 2020	411	cents	3,500	3,500
					9,100	14,613

	March 31,  2018 R’000		March 31,  2017 R’000
Movement in share-based payment liability for the year
Opening balance	—		—
Share-based payment expense recognized during the year	1,352		1,064
Payment made in settlement of the share-based payment liability	(1,353	)	(1,064	)
Foreign currency translation differences	1		—
Closing balance	—		—

Movements in the total number of SARs outstanding and their weighted average award prices

Movements in the total number of SARs outstanding and their related weighted average award prices are as follows:

	Weighted average award price 2018 cents per share	Number of options 2018 000s		Weighted average award price 2017 cents per share	Number of options 2017 000s
Outstanding at the beginning of the year	309	20,810		311	14,435
Granted on May 30, 2016	—	—		294	9,950
Granted on November 24, 2016	—	—		328	4,000
Granted on May 30, 2017	346	10,000		—	—
Exercised	310	(1,709	)	—	—
Forfeited	314	(1,062	)	303	(7,575	)
Outstanding at the end of the year	322	28,039		309	20,810
Exercisable at the end of the year	313	1,306		305	725

Share options exercised by executives

The following share options were exercised by Group executives during fiscal 2017:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
M Pydigadu(1)	May 30, 2016	600,000	June 4, 2010	112	10	%	289
M Pydigadu(1)	November 07, 2016	750,000	November 07, 2012	246	10	%	323
S Joselowitz	June 03, 2016	1,500,000	June 4, 2010	112	10	%	301
B Horan(2)	June 07, 2016	250,000	January 3, 2012	154	10	%	300

⁽¹⁾ Resigned as at February 9, 2017.

⁽²⁾ Resigned as at September 30, 2016.

The following share options were exercised during fiscal 2017 by retired Group executives:

	Date of exercise	Options exercised	Grant date	Strike price (cents per share)	Performance condition (R share price or % minimum shareholder return)		Exercise  date share  price (cents per share)
R Botha	June 1, 2016	1,375,000	June 4, 2010	112	10	%	308

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Other reserves (Tables)

12 Months Ended

Mar. 31, 2018

Share Capital, Reserves And Other Equity Interest [Abstract]

Other reserves

	March 31,  2018 R’000		March 31,  2017 R’000
Opening balance	(4,370	)	74,262
Foreign currency translation*	(60,576	)	(80,879	)
– Movement for the year — Gross	(60,339	)	(80,820	)
– Tax effect of movement	(237	)	(59	)
Share-based payments (notes 23 and 31.2)	14,833		2,247
– Transaction	9,000		2,247
– Excess tax benefit	5,833		—
Transaction with non-controlling interests**	(1,501	)	—
Closing balance	(51,614	)	(4,370	)
Foreign currency translation*	42,226		102,802
Reserve on transaction with non-controlling interest**	(138,939	)	(137,438	)
Share-based payments	45,099		30,266
Closing balance	(51,614	)	(4,370	)

* T​he foreign currency translation reserve mainly results from the translation of the Group's foreign subsidiaries for

which it is considered probable that temporary differences will not reverse in the foreseeable future. Refer to note 18

for details about deferred taxes recognized for related temporary differences.

** During fiscal 2008, the Group acquired a non-controlling equity interest held by a minority shareholder in one of its

subsidiaries in exchange for a share consideration. R137.9 million (2017: R137.9 million) of the reserve represents

the difference between the consideration paid and the Group’s share in the net asset value of the subsidiary acquired

which has been recorded in equity. The reserve on transaction with non-controlling interests represented the transfer

of Edge Gestao Empresarial Ltda's (“Edge”) share of the historical losses of MiX Telematics Servicos De Tlematria

E Rastremento De Veiculos Do Brazil Limitada (“MiX Brazil”) from distributable reserves to non-controlling interests.

R0.5 million, representing a reduction of the reserve, relates to the transaction with Edge in fiscal 2015, whereby Edge

increased its non-controlling interest in MiX Brazil from 0.0025% to 5.0%. R1.5 million of the non-controlling interest

relates to the acquisition of Edge's 5% interest in MiX Brazil by MiX Investments (Proprietary) Limited (“MiX Investments”)

during fiscal 2018 (note 20).

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Borrowings (Tables)

12 Months Ended

Mar. 31, 2018

Borrowings [abstract]

Undrawn borrowing facilities

	Interest rate	March 31,  2018 R’000	March 31,  2017 R’000
Undrawn borrowing facilities at floating rates include:
— Standard Bank Limited:
Overdraft	Prime less 1.2%	52,280	50,551
Vehicle and asset finance	Prime less 1.2%	8,500	8,500
— Nedbank Limited overdraft	Prime less 2%	10,000	10,000
		70,780	69,051

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Trade and other payables (Tables)

12 Months Ended

Mar. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Trade and other payables

	March 31,  2018 R’000	March 31,  2017 R’000
Trade payables	98,094	79,892
Accruals	176,963	152,323
Revenue received in advance	66,120	62,990
Value added taxes	6,646	6,624
Other	2,696	7,281
	350,519	309,110

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Deferred tax (Tables)

12 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Deferred taxation

	March 31,  2018 R’000		March 31,  2017 R’000
Deferred tax liabilities
Capital allowances for tax purposes	42,828		33,616
Intangible assets	57,084		49,807
Pre-payments	2,857		2,815
Deferred foreign currency gains	33,858		61,616
Other	887		1,106
Gross deferred tax liabilities	137,514		148,960
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax liabilities	82,658		100,067
Deferred tax assets
Revenue received in advance	15,730		14,304
Capital allowances for tax purposes	30,556		22,107
Provisions, accruals and lease straight-lining	33,910		28,731
Assessable losses	5,892		10,736
Share-based payments	8,187		—
Other	1,298		1,145
Gross deferred tax assets	95,573		77,023
Set-off of deferred tax balances	(54,856	)	(48,893	)
Net deferred tax assets	40,717		28,130
Net deferred tax liability	(41,941	)	(71,937	)
The gross movement in net deferred tax assets/(liabilities) is as follows:
Beginning of the year	(71,937	)	(90,976	)
Foreign currency translations	(578	)	(878	)
Credited/(charged) to equity (note 14)	5,596		(59	)
Income statement charge (note 28)	24,978		19,976
End of the year	(41,941	)	(71,937	)

The movement in deferred tax assets and liabilities during the year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2017		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2018
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	33,616		9,185		—		27		42,828
Intangible assets	49,807		7,279		—		(2	)	57,084
Pre-payments	2,815		68		—		(26	)	2,857
Deferred foreign currency gains	61,616		(28,318	)	237		323		33,858
Other	1,106		105		—		(324	)	887
	148,960		(11,681	)	237		(2	)	137,514
Deferred tax assets
Revenue received in advance	(14,304	)	(1,426	)	—		—		(15,730	)
Capital allowances for tax purposes	(22,107	)	(8,503	)	—		54		(30,556	)
Provisions, accruals and lease straight-lining	(28,731	)	(5,572	)	—		393		(33,910	)
Assessable losses	(10,736	)	4,713		—		131		(5,892	)
Share-based payments	—		(2,354	)	(5,833	)	—		(8,187	)
Other	(1,145	)	(155	)	—		2		(1,298	)
	(77,023	)	(13,297	)	(5,833	)	580		(95,573	)
Net deferred tax liability	71,937		(24,978	)	(5,596	)	578		41,941

The movement in deferred tax assets and liabilities during the prior year, prior to taking into account the offsetting of deferred tax balances within the same tax jurisdiction, is as follows:

	March 31,  2016		Charged/ (credited) to the income statement (note 28)		Charged/ (credited) directly to equity (note 14)		Foreign  currency translation differences		March 31,  2017
	R’000		R’000		R’000		R’000		R’000
Deferred tax liabilities
Capital allowances for tax purposes	27,603		6,013		—		—		33,616
Intangible assets	39,088		10,721		—		(2	)	49,807
Pre-payments	1,970		845		—		—		2,815
Deferred foreign currency gains	87,878		(25,834	)	(428	)	—		61,616
Other	1,268		(163	)	—		1		1,106
	157,807		(8,418	)	(428	)	(1	)	148,960
Deferred tax assets
Revenue received in advance	(13,166	)	(1,138	)	—		—		(14,304	)
Capital allowances for tax purposes	(25,609	)	3,478		—		24		(22,107	)
Provisions, accruals and lease straight-lining	(25,617	)	(3,495	)	—		381		(28,731	)
Assessable losses	(1,043	)	(10,178	)	—		485		(10,736	)
Deferred foreign currency losses	(487	)	—		487		—		—
Other	(909	)	(225	)	—		(11	)	(1,145	)
	(66,831	)	(11,558	)	487		879		(77,023	)
Net deferred tax liability	90,976		(19,976	)	59		878		71,937

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Provisions (Tables)

12 Months Ended

Mar. 31, 2018

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Provisions

	March 31,  2018 R’000			March 31,  2017 R’000
Other provisions
Beginning of the year	2,673			11,261
Income statement charge	224			281
Utilized	—			(8,600	)
Foreign currency translation differences	(336	)		(269	)
End of the year	2,561			2,673
Non-current portion	—			—
Current portion	2,561		—	2,673

	March 31,  2018 R’000		March 31,  2017 R’000
Maintenance provision
Beginning of the year	3,511		4,413
Income statement charge	13,695		15,182
Utilized	(12,604	)	(15,944	)
Foreign currency translation differences	(173	)	(140	)
End of the year	4,429		3,511
Non-current portion	—		(409	)
Current portion	4,429		3,102

	March 31,  2018 R’000		March 31,  2017 R’000
Restructuring provision
Beginning of the year	11,465		523
Income statement (reversal)/charge (note 23)	(741	)	14,561
Utilized	(10,653	)	(2,834	)
Foreign currency translation differences	(47	)	(785	)
End of the year	24		11,465
Non-current portion	—		—
Current portion	24		11,465

	March 31,  2018 R’000		March 31,  2017 R’000
Decommissioning provision
Beginning of the year	1,424		1,812
Finance costs	213		—
Foreign currency translation differences	(21	)	(388	)
End of the year	1,616		1,424
Non-current portion	(1,616	)	(1,424	)
Current portion	—		—

	March 31,  2018 R’000		March 31,  2017 R’000
Product warranties
Beginning of the year	11,538		16,564
Income statement charge	5,772		1,797
Utilized	(3,452	)	(5,476	)
Foreign currency translation differences	(73	)	(1,347	)
End of the year	13,785		11,538
Non-current portion	(516	)	—
Current portion	13,269		11,538

	March 31,  2018 R’000		March 31,  2017 R’000
Total provisions
Product warranties	13,785		11,538
Maintenance provision	4,429		3,511
Decommissioning provision	1,616		1,424
Restructuring provision	24		11,465
Other provisions	2,561		2,673
Total provision	22,415		30,611
Non-current portion	(2,132	)	(1,833	)
Current provision	20,283		28,778

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Share-based payment liability (Tables)

12 Months Ended

Mar. 31, 2018

Share-Based Payment Arrangements [Abstract]

Movement in share-based payment liability

Share options outstanding at the end of the fiscal year have the following exercise prices: 

					March 31,  2018 000's	March 31,  2017 000's
Annual shareholder return	Grant date	Expiry date	Exercise price
5%	September 13, 2011	September 13, 2017	130	cents	—	263
10%	January 3, 2012	January 3, 2018	154	cents	—	2,750
10%	November 7, 2012	November 7, 2018	246	cents	5,600	8,100
10%	September 10, 2014	September 10, 2020	411	cents	3,500	3,500
					9,100	14,613

	March 31,  2018 R’000		March 31,  2017 R’000
Movement in share-based payment liability for the year
Opening balance	—		—
Share-based payment expense recognized during the year	1,352		1,064
Payment made in settlement of the share-based payment liability	(1,353	)	(1,064	)
Foreign currency translation differences	1		—
Closing balance	—		—

Key assumptions used in the discounted cash flow analysis

The key assumptions used for the value-in-use calculations are as follows:

2018	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.1	17.3	9.2	13.3
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.4	5.4	2.2	2.9

2017	Central Services Organization	Africa	Europe	Middle East and Australasia
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	17.6	18.6	9.8	16.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.5	5.5	2.3	2.5

The key assumptions used in the discounted cash flow analysis in fiscal 2017 were:

	March 31,  2017
Discount rate
– pre-tax discount rate applied to the cash flow projections (%)	21.0
Growth rate
– growth rate used to extrapolate cash flow beyond the budget period (%)	4.5

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Revenue (Tables)

12 Months Ended

Mar. 31, 2018

Revenue [abstract]

Revenue

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Subscription revenue	1,434,615	1,239,914	1,158,229
Hardware sales	227,752	222,315	221,306
Driver training, installation and other	50,115	77,829	85,486
	1,712,482	1,540,058	1,465,021

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Other income/(expenses) - net (Tables)

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Other income/(expenses) - net

	March 31,  2018 R’000	March 31,  2017 R’000		March 31,  2016 R’000
Insurance reimbursement relating to operating costs	2,500	—		—
Profit/(loss) on disposal of property, plant and equipment and intangible assets (note 31.2)	1,264	(262	)	(208	)
Other	482	688		1,452
	4,246	426		1,244

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Operating profit (Tables)

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Operating profit

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Operating profit is stated after accounting for the following charges:
Amortization (notes 7 and 31.2)	63,926		44,734		47,586
Depreciation (notes 6 and 31.2)	151,945		98,508		75,037
Impairment of intangible assets (notes 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 31.2)	9		(791	)	1,905
Operating lease charges — premises, vehicles and equipment	24,622		24,690		23,536
Restructuring costs (note 19)	(741	)	14,561		(333	)
Write-down of inventory to net realizable value (notes 9 and 31.2)	9,294		9,967		5,317
Research expenditure	1,624		2,398		1,540
Transaction costs arising from investigating strategic alternatives	—		—		5,037
Professional fees	32,689		22,358		24,940
Staff costs	601,656		587,474		573,165
– Salaries, wages and other costs	564,207		554,793		540,227
– Pension costs (note 17)	27,097		29,370		27,118
– Equity-settled share-based payments (notes 14 and 31.2)	9,000		2,247		7,838
– Cash-settled share-based payments (note 20)	1,352		1,064		(2,018	)
Number of employees at the end of the year	1,054		1,056		1,089

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Finance income (Tables)

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Finance income

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Current accounts and short-term bank deposits	8,508	14,052	7,292
Finance lease receivable income	3	20	267
Other	440	520	567
	8,951	14,592	8,126
Net foreign exchange gains	—	1,476	144,038
	8,951	16,068	152,164

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Finance costs (Tables)

12 Months Ended

Mar. 31, 2018

Analysis of income and expense [abstract]

Finance costs

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Overdraft	(2,324	)	(2,259	)	(1,490	)
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 13)	—		(3,222	)	—
Other long-term loans	—		(50	)	(186	)
Decommissioning provision (note 19)	(213	)	—		—
Other	(1,410	)	(146	)	(161	)
	(3,947	)	(5,677	)	(1,837	)
Net foreign exchange losses	(5,073	)	—		—
	(9,020	)	(5,677	)	(1,837	)

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Auditors' remuneration (Tables)

12 Months Ended

Mar. 31, 2018

Additional information [abstract]

Auditors' remuneration

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Auditors’ remuneration	12,076	8,821	7,426

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Directors' and executive committee emoluments (Tables)

12 Months Ended

Mar. 31, 2018

Directors' and Executive Committee Emoluments [Abstract]

Directors' and executive committee emoluments

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2018
Non-executive directors
R Bruyns(2)	773	—	—	—	—	773
C Ewing(2),(3)	348	—	—	—	—	348
R Frew(2)	746	—	—	—	—	746
E Banda	486	—	—	—	—	486
A Welton	614	—	—	—	—	614
I Jacobs	386	—	—	—	—	386
F Roji-Maplanka(4)	292	—	—	—	—	292
	3,645	—	—	—	—	3,645
Value added tax(2)	266	—	—	—	—	266
Executive committee(5)
S Joselowitz(6)	—	6,841	—	—	6,737	13,578
C Tasker(6)	—	5,393	—	—	4,133	9,526
P Dell(7)	—	1,844	100	71	1,750	3,765
G Pretorius	—	2,573	268	433	3,299	6,573
C Lewis	—	2,570	122	130	2,603	5,425
	3,911	19,221	490	634	18,522	42,778
2017
Non-executive directors
R Bruyns	794	—	—	—	—	794
C Ewing(3)	570	—	—	—	—	570
R Frew(2)	566	—	—	—	—	566
E Banda	470	—	—	—	—	470
A Welton	650	—	—	—	—	650
M Lamberti(2), (8)	115	—	—	—	—	115
I Jacobs(9)	277	—	—	—	—	277
G Nakos(10)	—	—	—	—	—	—
	3,442	—	—	—	—	3,442
Value added tax(2)	95	—	—	—	—	95
Executive committee(5)
S Joselowitz(6)	—	7,219	—	—	3,404	10,623
M Pydigadu(11)	—	2,101	98	80	1,206	3,485
C Tasker(6)	—	3,612	178	256	1,511	5,557
B Horan(12)	—	1,215	63	47	1,456	2,781
P Dell(7)	—	275	14	11	—	300
G Pretorius	—	2,096	129	335	1,147	3,707
C Lewis	—	2,328	—	144	1,099	3,571
	3,537	18,846	482	873	9,823	33,561

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2016
Non-executive directors
R Bruyns	910	—	—	—	—	910
C Ewing(3)	538	—	—	—	—	538
R Frew(2)	387	—	—	—	—	387
E Banda	442	—	—	—	—	442
A Welton	604	—	—	—	—	604
M Lamberti(2), (8)	286	—	—	—	—	286
	3,167	—	—	—	—	3,167
Value added tax(2)	94	—	—	—	—	94
Executive committee(5)
S Joselowitz(6)	—	7,006	—	—	3,806	10,812
R Botha(13), (14)	—	390	1,979	15	728	3,112
M Pydigadu(11)	—	2,304	109	87	1,299	3,799
H Scott(13), (15)	—	586	100	—	1,054	1,740
C Tasker(6)	—	3,288	45	264	1,691	5,288
B Horan(12)	—	2,292	118	90	1,365	3,865
G Pretorius	—	1,906	118	308	1,120	3,452
C Lewis	—	2,026	52	180	1,446	3,704
	3,261	19,798	2,521	944	12,509	39,033

⁽¹⁾  Performance bonuses are based on actual amounts paid during the fiscal year.

⁽²⁾  Value added tax (“VAT”) included as part of certain invoices received. Directors’ fees shown exclude VAT.

⁽³⁾  Resigned from the Board with effect from November 7, 2017.

⁽⁴⁾  Appointed to the Board with effect from October 3, 2017.

⁽⁵⁾  All prescribed officers of the Company are included as part of the executive committee.

⁽⁶⁾  Executive director as at March 31, 2018, March 31, 2017 and March 31, 2016.

⁽⁷⁾  Appointed as Group executive committee member from February 1, 2017 and to the Board with effect from February 9, 2017. Executive director as at March 31, 2018 and March 31, 2017.

⁽⁸⁾  Appointed to the Board with effect from November 19, 2014, resigned from the Board with effect from August 18, 2016.

⁽⁹⁾  Appointed to the Board with effect from June 1, 2016.

⁽¹⁰⁾  Appointed as alternate director to Mark Lamberti with effect from November 4, 2015. Subsequently resigned as alternate director to Mark Lamberti with effect from August 18, 2016.

⁽¹¹⁾  Resigned from the Board with effect from February 9, 2017.

⁽¹²⁾  Resigned with effect from September 30, 2016.

⁽¹³⁾  Resigned from the Board with effect from August 9, 2013 but remained as Group executive committee member. Subsequently retired from the Group executive committee on May 31, 2015.

⁽¹⁴⁾  Other benefits paid to R Botha include notice pay, severance pay and gratuity payments made as compensation for loss of office. Refer to note 13 for further details of share options held and exercised by this retired executive.

⁽¹⁵⁾  Other benefits paid to H Scott comprise gratuity payments made upon retirement.

The remaining related party transactions are set out in note

Transactions with related parties and balances outstanding at year-end are as follows (excluding key management personnel emoluments):

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Sales of goods and services	—	22,263	78,564
– Imperial Group Limited*	—	22,263	78,564
Purchases of goods and services	8,277	11,206	35,595
– TPF Investments Proprietary Limited**	8,277	5,277	7,148
– Imperial Group Limited*	—	5,929	28,447
Corporate and social investment	—	—	257
– Heartbeat centre for community development***	—	—	257
Year-end balance of receivables (included in trade and other receivables – note 10)	—	—	11,144
– Imperial Group Limited*	—	—	11,144
Year-end balance of payables (included in trade and other payables – note 16)	—	—	3,209
– TPF Investments Proprietary Limited**	—	—	—
– Imperial Group Limited*	—	—	842
– C Tasker****	—	—	2,367

* Related party until August 1, 2016. See “Fiscal 2017 specific share repurchase” in note 13 for additional information.

** Previously known as Thynk Property Fund Proprietary Limited.

*** Related party transactions up to May 31, 2015, when R Botha retired from the Group executive committee, have been

disclosed.

**** Cash held by MiX Telematics Limited to be paid to C Tasker, a participant of the TeliMatrix Group Executive Incentive

Scheme in respect of share options exercised.

The list of directors and executive committee members and their beneficial interests declared in the Company’s share capital at year-end held directly, indirectly and by associates were as follows:

	March 31, 2018			March 31, 2017
	Direct 000s	Indirect 000s	Associate 000s	Direct 000s	Indirect 000s	Associate 000s
Non-executive
R Bruyns	—	3,697	—	—	3,697	—
C Ewing(1)	—	—	—	—	—	—
R Frew	—	63,848	70,261	—	63,848	70,261
A Welton	—	—	235	—	—	235
E Banda	—	—	—	—	—	—
I Jacobs(2)	241	14,296	—	191	—	14,281
F Roji-Maplanka(3)	—	—	—	—	—	—
Executive
S Joselowitz	26,342	—	—	26,342	—	—
C Tasker	2,057	—	2,428	900	—	2,428
P Dell	1	—	—	1	—	—
G Pretorius	338	—	—	35	—	—
C Lewis	1,525	—	—	1,525	—	—
	30,504	81,841	72,924	28,994	67,545	87,205

⁽¹⁾  Resigned from the Board with effect from November 7, 2017.

⁽²⁾  Appointed to the Board with effect from June 1, 2016.

⁽³⁾  Appointed to the Board with effect from October 3, 2017.

During the year under review, the following were disclosed as contractual arrangements that existed between the Group and parties outside of the Group, in which certain of the directors and executive committee members had interests:

Name of director	Related party	Nature of relationship with the Group
R Bruyns	Insight Consultancy Close Corporation	Provides directors’ services
R Frew	TPF Investments Proprietary Limited	Lease agreement: Midrand office
R Frew	Masalini Capital Proprietary Limited	Provides directors’ services

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Taxation (Tables)

12 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Disclosure of major components of tax expense

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Major components of taxation expense
Normal taxation	(58,668	)	(46,788	)	(57,545	)
– Current	(55,385	)	(43,434	)	(53,626	)
– Over-provision prior years	325		589		175
– Foreign tax paid	(2,880	)	(3,711	)	(3,768	)
– Withholding tax	(728	)	(232	)	(326	)
Deferred taxation (note 18)	24,978		19,976		(49,375	)
– Current year	25,658		20,748		(49,365	)
– Under-provision prior years	(680	)	(772	)	(10	)
	(33,690	)	(26,812	)	(106,920	)

Disclosure of taxation recognized in other comprehensive income

Taxation recognized in other comprehensive income

	Before tax R’000		Tax impact R’000		After tax R’000
2018
Exchange differences on translating foreign operations	(60,331	)	(237	)	(60,568	)
	(60,331	)	(237	)	(60,568	)

	Before tax R’000		Tax impact R’000		After tax R’000
2017
Exchange differences on translating foreign operations	(80,870	)	(59	)	(80,929	)
	(80,870	)	(59	)	(80,929	)

	Before tax R’000	Tax impact R’000		After tax R’000
2016
Exchange differences on translating foreign operations	90,665	(2,466	)	88,199
	90,665	(2,466	)	88,199

Disclosure of taxation using the weighted average tax rate applicable

The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the entities as follows:

		March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation		214,883		148,253		289,411
Tax at the applicable tax rate of 28%		60,167		41,511		81,035
Tax effect of:		(26,477	)	(14,699	)	25,885
– Income not subject to tax		(552	)	—		(398	)
– Expenses not deductible for tax purposes(1)		6,460		7,409		6,869
– (Non-taxable)/non-deductible foreign exchange movements(2)	`	(28,184	)	(15,884	)	9,376
– Withholding tax		728		232		326
– Utilization of prior year assessed losses(3)		(6,452	)	(1,461	)	—
– Foreign tax paid(4)		2,880		3,711		3,768
– Tax rate differential		(2,546	)	1,281		(6,551	)
– Deferred tax not recognized on assessed losses		517		4,049		12,833
– Deferred tax asset previously not recognized		(1,122	)	(5,342	)	(531	)
– Under/(over)-provision prior years		355		183		(165	)
– Tax incentives in addition to incurred cost(5)		(3,258	)	(10,387	)	—
– Share-based payment expense previously not deductible		(1,049	)	—		—
– Imputation of controlled foreign company income		2,365		1,453		358
– Transfer pricing imputation		3,381		57		—
		33,690		26,812		106,920

⁽¹⁾  These non-deductible expenses consist primarily of items of a capital nature and costs attributable to exempt income.

⁽²⁾  The (non-taxable)/non-deductible foreign exchange movements arise as a result of the Group’s internal loan structures.

⁽³⁾  The utilization of assessed losses arises mainly in Europe, the Americas and Brazil where historical assessed losses are being utilized, as these entities are now generating taxable profits. During prior years, deferred tax assets have not been recorded for assessed losses in the Americas and Brazil.

⁽⁴⁾  The foreign tax paid relates primarily to withholding taxes on revenue earned in jurisdictions where the Group does not have a legal entity.    

⁽⁵⁾  The tax incentives relate mainly to the section 11D allowance detailed below.

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Earnings per share (Tables)

12 Months Ended

Mar. 31, 2018

Earnings per share [abstract]

Earnings per share

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of adjusted earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
Net foreign exchange losses/(gains)	5,073		(1,476	)	(144,038	)
Income tax effect on the above component(1)	(29,403	)	(15,307	)	48,647
Adjusted earnings attributable to owners of the parent	156,804		104,675		87,598

⁽¹⁾  The income tax effect is mainly influenced by the Group’s internal loan structures (note 28).

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Diluted adjusted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted adjusted earnings per share (R)	0.27	0.17	0.11

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Headline earnings attributable to owners of the parent	182,186	123,442	187,731
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic headline earnings per share (R)	0.32	0.20	0.24

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic earnings per share (R)	0.32	0.19	0.24

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Reconciliation of headline earnings
Profit attributable to owners of the parent	181,134		121,458		182,989
(Profit)/loss on disposal of property, plant and equipment and intangible assets (note 31.2)	(1,264	)	262		208
Impairment of intangible assets (notes 5, 7 and 31.2)	2,687		3,166		2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 5, 6 and 31.2)	9		(791	)	1,905
Non-controlling interest effects of adjustments	—		8		(244	)
Income tax effect on the above components	(380	)	(661	)	2
Headline earnings attributable to owners of the parent	182,186		123,442		187,731

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted profit attributable to owners of the parent	181,134	121,458	182,989
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Adjusted for:
— potentially dilutive effect of share appreciation rights	7,230	—	—
— potentially dilutive effect of share options	5,663	2,193	8,275
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted earnings per share (R)	0.32	0.19	0.23

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Adjusted earnings attributable to owners of the parent	156,804	104,675	87,598
Weighted average number of ordinary shares in issue (000s)	561,088	629,626	775,139
Basic adjusted earnings per share (R)	0.28	0.17	0.11

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Diluted headline earnings attributable to owners of the parent	182,186	123,442	187,731
Diluted weighted average number of ordinary shares in issue (000s)	573,981	631,819	783,414
Diluted headline earnings per share (R)	0.32	0.20	0.24

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Dividends (Tables)

12 Months Ended

Mar. 31, 2018

Statement of changes in equity [abstract]

Dividends declared

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Dividends declared	53,268	53,026	107,254

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Cash flow statement (Tables)

12 Months Ended

Mar. 31, 2018

Cash Flow Statement [Abstract]

Reconciliation of profit for the year before taxation to cash generated from operations

Reconciliation of profit for the year before taxation to cash generated from operations:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Profit before taxation	214,883		148,253		289,411
Adjustments	279,727		197,023		33,779
– (Profit)/loss on disposal of property, plant and equipment and intangible assets (note 22)	(1,264	)	262		208
– Depreciation (notes 6 and 23)	151,945		98,508		75,037
– Amortization (notes 7 and 23)	63,926		44,734		47,586
– Impairment of intangible assets (notes 7 and 23)	2,687		3,166		2,871
– Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 23)	9		(791	)	1,905
– Finance income (note 24)	(8,951	)	(14,592	)	(8,126	)
– Finance costs (note 25)	3,947		5,677		1,837
– Equity-settled share-based payments (notes 14 and 23)	9,000		2,247		7,838
– Cash-settled share-based payments (notes 20 and 23)	1,352		—		(2,018	)
– Foreign exchange losses/(gains) (notes 24 and 25)	5,073		(1,476	)	(144,038	)
– Impairment of receivables (note 10)	24,143		17,713		14,735
– Write-down of inventory to net realizable value (notes 9 and 23)	9,294		9,967		5,317
– Increase in provisions	18,950		31,821		29,731
– Lease straight-line adjustment	(384	)	(213	)	(174	)
– Finance lease fair value adjustment	—		—		1,070
Cash generated from operations before working capital changes	494,610		345,276		323,190
Changes in working capital	(81,585	)	31,839		(29,382	)
– (Increase)/decrease in inventories	(39,858	)	28,073		(30,872	)
– (Increase)/decrease in trade and other receivables	(49,601	)	17,404		(46,297	)
– Decrease in finance lease receivable	165		1,009		4,655
– Increase in trade and other payables	8,519		21,993		46,712
– Decrease in provisions	(26,709	)	(32,854	)	(24,669	)
– Foreign currency translation differences on working capital	25,899		(3,786	)	21,089
Cash generated from operations	413,025		377,115		293,808

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Related party transactions (Tables)

12 Months Ended

Mar. 31, 2018

Related party transactions [abstract]

Related party transactions

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2018
Non-executive directors
R Bruyns(2)	773	—	—	—	—	773
C Ewing(2),(3)	348	—	—	—	—	348
R Frew(2)	746	—	—	—	—	746
E Banda	486	—	—	—	—	486
A Welton	614	—	—	—	—	614
I Jacobs	386	—	—	—	—	386
F Roji-Maplanka(4)	292	—	—	—	—	292
	3,645	—	—	—	—	3,645
Value added tax(2)	266	—	—	—	—	266
Executive committee(5)
S Joselowitz(6)	—	6,841	—	—	6,737	13,578
C Tasker(6)	—	5,393	—	—	4,133	9,526
P Dell(7)	—	1,844	100	71	1,750	3,765
G Pretorius	—	2,573	268	433	3,299	6,573
C Lewis	—	2,570	122	130	2,603	5,425
	3,911	19,221	490	634	18,522	42,778
2017
Non-executive directors
R Bruyns	794	—	—	—	—	794
C Ewing(3)	570	—	—	—	—	570
R Frew(2)	566	—	—	—	—	566
E Banda	470	—	—	—	—	470
A Welton	650	—	—	—	—	650
M Lamberti(2), (8)	115	—	—	—	—	115
I Jacobs(9)	277	—	—	—	—	277
G Nakos(10)	—	—	—	—	—	—
	3,442	—	—	—	—	3,442
Value added tax(2)	95	—	—	—	—	95
Executive committee(5)
S Joselowitz(6)	—	7,219	—	—	3,404	10,623
M Pydigadu(11)	—	2,101	98	80	1,206	3,485
C Tasker(6)	—	3,612	178	256	1,511	5,557
B Horan(12)	—	1,215	63	47	1,456	2,781
P Dell(7)	—	275	14	11	—	300
G Pretorius	—	2,096	129	335	1,147	3,707
C Lewis	—	2,328	—	144	1,099	3,571
	3,537	18,846	482	873	9,823	33,561

Group	Directors’ fees R’000	Salary and allowances R’000	Other benefits R’000	Retirement fund R’000	Performance bonuses(1) R’000	12 months R’000
2016
Non-executive directors
R Bruyns	910	—	—	—	—	910
C Ewing(3)	538	—	—	—	—	538
R Frew(2)	387	—	—	—	—	387
E Banda	442	—	—	—	—	442
A Welton	604	—	—	—	—	604
M Lamberti(2), (8)	286	—	—	—	—	286
	3,167	—	—	—	—	3,167
Value added tax(2)	94	—	—	—	—	94
Executive committee(5)
S Joselowitz(6)	—	7,006	—	—	3,806	10,812
R Botha(13), (14)	—	390	1,979	15	728	3,112
M Pydigadu(11)	—	2,304	109	87	1,299	3,799
H Scott(13), (15)	—	586	100	—	1,054	1,740
C Tasker(6)	—	3,288	45	264	1,691	5,288
B Horan(12)	—	2,292	118	90	1,365	3,865
G Pretorius	—	1,906	118	308	1,120	3,452
C Lewis	—	2,026	52	180	1,446	3,704
	3,261	19,798	2,521	944	12,509	39,033

⁽¹⁾  Performance bonuses are based on actual amounts paid during the fiscal year.

⁽²⁾  Value added tax (“VAT”) included as part of certain invoices received. Directors’ fees shown exclude VAT.

⁽³⁾  Resigned from the Board with effect from November 7, 2017.

⁽⁴⁾  Appointed to the Board with effect from October 3, 2017.

⁽⁵⁾  All prescribed officers of the Company are included as part of the executive committee.

⁽⁶⁾  Executive director as at March 31, 2018, March 31, 2017 and March 31, 2016.

⁽⁷⁾  Appointed as Group executive committee member from February 1, 2017 and to the Board with effect from February 9, 2017. Executive director as at March 31, 2018 and March 31, 2017.

⁽⁸⁾  Appointed to the Board with effect from November 19, 2014, resigned from the Board with effect from August 18, 2016.

⁽⁹⁾  Appointed to the Board with effect from June 1, 2016.

⁽¹⁰⁾  Appointed as alternate director to Mark Lamberti with effect from November 4, 2015. Subsequently resigned as alternate director to Mark Lamberti with effect from August 18, 2016.

⁽¹¹⁾  Resigned from the Board with effect from February 9, 2017.

⁽¹²⁾  Resigned with effect from September 30, 2016.

⁽¹³⁾  Resigned from the Board with effect from August 9, 2013 but remained as Group executive committee member. Subsequently retired from the Group executive committee on May 31, 2015.

⁽¹⁴⁾  Other benefits paid to R Botha include notice pay, severance pay and gratuity payments made as compensation for loss of office. Refer to note 13 for further details of share options held and exercised by this retired executive.

⁽¹⁵⁾  Other benefits paid to H Scott comprise gratuity payments made upon retirement.

The remaining related party transactions are set out in note

Transactions with related parties and balances outstanding at year-end are as follows (excluding key management personnel emoluments):

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Sales of goods and services	—	22,263	78,564
– Imperial Group Limited*	—	22,263	78,564
Purchases of goods and services	8,277	11,206	35,595
– TPF Investments Proprietary Limited**	8,277	5,277	7,148
– Imperial Group Limited*	—	5,929	28,447
Corporate and social investment	—	—	257
– Heartbeat centre for community development***	—	—	257
Year-end balance of receivables (included in trade and other receivables – note 10)	—	—	11,144
– Imperial Group Limited*	—	—	11,144
Year-end balance of payables (included in trade and other payables – note 16)	—	—	3,209
– TPF Investments Proprietary Limited**	—	—	—
– Imperial Group Limited*	—	—	842
– C Tasker****	—	—	2,367

* Related party until August 1, 2016. See “Fiscal 2017 specific share repurchase” in note 13 for additional information.

** Previously known as Thynk Property Fund Proprietary Limited.

*** Related party transactions up to May 31, 2015, when R Botha retired from the Group executive committee, have been

disclosed.

**** Cash held by MiX Telematics Limited to be paid to C Tasker, a participant of the TeliMatrix Group Executive Incentive

Scheme in respect of share options exercised.

The list of directors and executive committee members and their beneficial interests declared in the Company’s share capital at year-end held directly, indirectly and by associates were as follows:

	March 31, 2018			March 31, 2017
	Direct 000s	Indirect 000s	Associate 000s	Direct 000s	Indirect 000s	Associate 000s
Non-executive
R Bruyns	—	3,697	—	—	3,697	—
C Ewing(1)	—	—	—	—	—	—
R Frew	—	63,848	70,261	—	63,848	70,261
A Welton	—	—	235	—	—	235
E Banda	—	—	—	—	—	—
I Jacobs(2)	241	14,296	—	191	—	14,281
F Roji-Maplanka(3)	—	—	—	—	—	—
Executive
S Joselowitz	26,342	—	—	26,342	—	—
C Tasker	2,057	—	2,428	900	—	2,428
P Dell	1	—	—	1	—	—
G Pretorius	338	—	—	35	—	—
C Lewis	1,525	—	—	1,525	—	—
	30,504	81,841	72,924	28,994	67,545	87,205

⁽¹⁾  Resigned from the Board with effect from November 7, 2017.

⁽²⁾  Appointed to the Board with effect from June 1, 2016.

⁽³⁾  Appointed to the Board with effect from October 3, 2017.

During the year under review, the following were disclosed as contractual arrangements that existed between the Group and parties outside of the Group, in which certain of the directors and executive committee members had interests:

Name of director	Related party	Nature of relationship with the Group
R Bruyns	Insight Consultancy Close Corporation	Provides directors’ services
R Frew	TPF Investments Proprietary Limited	Lease agreement: Midrand office
R Frew	Masalini Capital Proprietary Limited	Provides directors’ services

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Commitments (Tables)

12 Months Ended

Mar. 31, 2018

Additional information [abstract]

Capital commitments

At March 31, the Group had approved, but not yet contracted, capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	—	—	—
Intangible assets	56,406	58,036	63,670
	56,406	58,036	63,670

 At March 31, the Group had approved and contracted capital commitments for:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Property, plant and equipment	11,601	50,074	22,471
Intangible assets	17,046	24,726	33,234
	28,647	74,800	55,705

Future minimum lease payments under non-cancellable operating leases

The future minimum lease payments of office equipment and vehicles under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Office equipment
Within one year	716	853	874
One to five years	674	495	1,032
	1,390	1,348	1,906
Vehicles
Within one year	1,585	1,507	836
One to five years	1,617	1,626	167
	3,202	3,133	1,003

The future minimum lease payments in respect of land and buildings under non-cancellable operating leases are as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Land and buildings
Within one year	12,324	15,201	19,896
One to five years	10,862	20,354	9,767
	23,186	35,555	29,663

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Financial risk sensitivity analysis (Tables)

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Interest rate and foreign currency sensitivity

A change in the interest rate at the reporting date of 100 basis points for ZAR denominated instruments and 10 basis points for USD denominated instruments would have increased/(decreased) profit or loss before tax by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for the year ended March 31, 2017.

		March 31,  2018 R’000		March 31,  2017 R’000
USD denominated instruments	Increase of 10 basis points	*		143
	Decrease of 10 basis points	*		(143	)
ZAR denominated instruments	Increase of 100 basis points	1,811		1,000
	Decrease of 100 basis points	(1,811	)	(1,000	)

* Amount less than R1,000.

A change in the foreign exchange rates to which the Group is exposed at the reporting date would have increased/(decreased) profit before taxation by the amounts shown below. The analysis has been performed on the basis of the change occurring at the end of the reporting period.

		Increase/(decrease) in profit before taxation
	Change in exchange rate %	Result of weakening in functional currency R’000		Result of strengthening in functional currency R’000
2018
Denominated currency: Functional currency
EUR:GBP	5	710		(710	)
USD:GBP	5	(149	)	149
USD:ZAR	5	814		(814	)
EUR:ZAR	5	368		(368	)
GBP:ZAR	5	(78	)	78
ZAR:USD	5	2		(2	)
EUR:USD	5	231		(231	)
USD:AUD	5	(33	)	33
AUD:ZAR	5	598		(598	)
ZAR:GBP	5	(22	)	22
USD:BRL	5	(33	)	33
2017
Denominated currency: Functional currency
EUR:GBP	5	152		(152	)
USD:GBP	5	(19	)	19
USD:ZAR	5	8,028		(8,028	)
EUR:ZAR	5	422		(422	)
GBP:ZAR	5	(25	)	25
ZAR:USD	5	(41	)	41
EUR:USD	5	29		(29	)
USD:AUD	5	(73	)	73
EUR:AUD	5	(3	)	3
AUD:ZAR	5	320		(320	)
ZAR:GBP	5	(9	)	9
ZAR:AUD	5	(43	)	43
USD:BRL	5	(124	)	124
ZAR:BRL	5	(2	)	2
NGN:ZAR	5	228		(228	)

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Liquidity risk (Tables)

12 Months Ended

Mar. 31, 2018

Financial Instruments [Abstract]

Cash resources held

Net cash and cash equivalents included in the statement of cash flow comprise the following amounts which are included in the statement of financial position:

	March 31,  2018 R’000		March 31,  2017 R’000		March 31,  2016 R’000
Cash and cash equivalents	308,258		375,782		877,136
Bank overdraft (note 15)	(17,720	)	(19,449	)	(16,374	)
	290,538		356,333		860,762

The credit quality of cash and cash equivalents that are not impaired can be assessed by reference to external credit ratings, based on the Fitch rating scales, as follows:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Cash and cash equivalents
AA	110,854	197,873	743,600
A	82,738	78,605	48,757
BBB	33,962	99,304	84,779
BB	80,704	—	—
	308,258	375,782	877,136

The carrying amounts of net cash and cash equivalents are denominated in the following currencies:

	March 31,  2018 R’000	March 31,  2017 R’000	March 31,  2016 R’000
Great Britain Pound	37,209	48,540	45,017
Brazilian Real	3,787	2,987	3,625
South African Rand	171,223	100,721	87,675
Australian Dollar	22,912	19,574	25,451
United States Dollar	48,354	178,768	698,166
Euro	4,300	4,649	(55	)
Other	2,753	1,094	883
	290,538	356,333	860,762

In addition, the Group holds the following cash resources:

	March 31,  2018 R’000	March 31,  2017 R’000
Cash and cash equivalents, net of overdrafts (note 12)	290,538	356,333

Financial liability maturity analysis

The table below analyzes the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

	Payable within 1 month or on demand R’000	Between 1 month and 1 year R’000	Between 1 year and 2 years R’000	Between 2 years and 5 years R’000	More than 5 years R’000
March 31, 2018
Trade payables	58,085	40,009	—	—	—
Accruals and other payables	92,318	68,646	—	—	—
Bank overdraft	17,720	—	—	—	—
Total	168,123	108,655	—	—	—
March 31, 2017
Trade payables	42,720	37,172	—	—	—
Accruals and other payables	92,353	47,610	—	—	—
Bank overdraft	19,449	—	—	—	—
Total	154,522	84,782	—	—	—

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Exchange rates (Tables)

12 Months Ended

Mar. 31, 2018

Effects Of Changes In Foreign Exchange Rates [Abstract]

Major rates of exchanged used in the preparation of the consolidated financial statements

The following major rates of exchange were used in the preparation of the consolidated financial statements:

		March 31,  2018	March 31,  2017	March 31,  2016
ZAR:USD	– closing	11.83	13.41	14.83
	– average	12.99	14.06	13.78
ZAR:GBP	– closing	16.60	16.75	21.31
	– average	17.21	18.42	20.63

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List of Group companies (Tables)

12 Months Ended

Mar. 31, 2018

List of Group Companies [Abstract]

Consolidated entities of MiX Telematics Limited

MiX Telematics Limited is the parent company of the MiX Telematics Group of companies outlined below. All of the entities listed below have been consolidated.

Name	Principal activity	Place of incorporation	Legal % ownership
			March 31, 2018 %	March 31, 2017 %
Direct
MiX Telematics Investments Proprietary Limited	Treasury company	RSA	100	100
MiX Telematics Africa Proprietary Limited	Asset tracking and fleet management products and services	RSA	100	100
MiX Telematics International Proprietary Limited	Fleet management products and services and research and development	RSA	100	100
MiX Telematics Europe Limited	Fleet management products and services	UK	100	100
MiX Telematics North America Incorporated	Fleet management products and services	USA	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada	Fleet management products and services	Brazil	95	95
Indirect
MiX Telematics Technology Holdings Proprietary Limited	Deregistered	RSA	—	100
MiX Telematics Middle East FZE	Fleet management products and services	UAE	100	100
MiX Telematics Enterprise SA Proprietary Limited (1)	Fleet management products and services	RSA	85.1	85.1
MiX Telematics Fleet Support Services Proprietary Limited	Fleet management products and services	RSA	100	100
MiX Telematics East Africa Limited	Fleet management products and services	Uganda	99.9	99.9
MiX Telematics Romania SRL(2)	Fleet management services	Romania	99	99
MiX Telematics (Thailand) Limited	Fleet management products and services	Thailand	100	100
MiX Telematics Australasia Proprietary Limited	Fleet management products and services	Australia	100	100
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada(3)	Fleet management products and services	Brazil	5	—

⁽¹⁾  The remaining shareholding in this company is owned by a structured entity, the MiX Telematics Enterprise BEE Trust (which holds a 14.9% interest in MiX Telematics Enterprise SA Proprietary Limited), which has been fully consolidated. Control of the structured entity was assessed when IFRS 10 Consolidated Financial Statements was adopted with effect from April 1, 2013 and there was no change to the historical accounting treatment applied by the Group. This trust was set up in prior years to invest in the specified Group company and to hold such investment for its beneficiaries.

⁽²⁾  During fiscal 2015, MiX Telematics Middle East FZE incorporated MiX Telematics Romania SRL and obtained a 99% interest therein. The 1% non-controlling interest is held by management.

⁽³⁾  MiX Investments Proprietary Limited acquired Edge’s 5% equity interest in MiX Brazil during the year. See note 20 for more information.

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Summary of significant accounting policies - Impact of new standards, amendments, and interpretations not yet effective (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	R 1,993,325	R 1,906,689
Total liabilities	476,144	463,758
Deferred tax liabilities	82,658	100,067
Retained earnings	722,380	R 594,514
IFRS 9, IFRS 15, And IFRS 16 adoption impact | Bottom of range
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	71,000
Total liabilities	44,000
Deferred tax liabilities	6,000
Retained earnings	22,000
IFRS 9, IFRS 15, And IFRS 16 adoption impact | Top of range
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	78,000
Total liabilities	56,000
Deferred tax liabilities	10,000
Retained earnings	27,000
IFRS 9 adoption impact | Bottom of range
IFRS 9 - Financial Instruments
Expected impact on provision for doubtful debts	2,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	2,000
IFRS 9 adoption impact | Top of range
IFRS 9 - Financial Instruments
Expected impact on provision for doubtful debts	4,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	4,000
IFRS 15 adoption impact | Bottom of range
IFRS 15 - Revenue from Contracts with Customers
Expected impact on capitalized commission asset net book value	43,000
Expected impact on additional recurring commission liability	6,000
Expected increase in income in advance liability	1,000
Expected increase in contract asset	1,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	44,000
Total liabilities	7,000
IFRS 15 adoption impact | Top of range
IFRS 15 - Revenue from Contracts with Customers
Expected impact on capitalized commission asset net book value	48,000
Expected impact on additional recurring commission liability	8,000
Expected increase in income in advance liability	3,000
Expected increase in contract asset	2,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	50,000
Total liabilities	11,000
IFRS 16 adoption impact | Bottom of range
IFRS 16 - Leases
Expected impact on right-of-use asset net book value	29,000
Expected impact on lease liability, net	31,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	29,000
Total liabilities	31,000
IFRS 16 adoption impact | Top of range
IFRS 16 - Leases
Expected impact on right-of-use asset net book value	32,000
Expected impact on lease liability, net	35,000
Summary of the expected impact at April 1, 2018 of adopting IFRS 9, IFRS 15 & IFRS 16:
Total assets	32,000
Total liabilities	R 35,000

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Summary of significant accounting policies - Estimated useful lives used in calculation of depreciation on assets (Details)	12 Months Ended
	Mar. 31, 2018
Property: Buildings
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	50 years
Plant and equipment | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	3 years
Plant and equipment | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	20 years
Motor vehicles | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	3 years
Motor vehicles | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	7 years
Other: Furniture, fittings and equipment | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	1 year
Other: Furniture, fittings and equipment | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	10 years
Computer and radio equipment | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	2 years
Computer and radio equipment | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	6 years
In-vehicle devices installed | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	1 year
In-vehicle devices installed | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life	5 years

XML

Summary of significant accounting policies - Narrative (Details)		12 Months Ended	13 Months Ended
	Feb. 21, 2017	Mar. 31, 2018	Mar. 31, 2018
Disclosure of detailed information about property, plant and equipment [line items]
Dividend withholding tax rate	15.00%		20.00%
Patents and trademarks | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		3 years
Patents and trademarks | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		20 years
Customer relationships | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		2 years
Customer relationships | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		15 years 6 months
Software licenses | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		2 years
Software licenses | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		5 years
Technology-based intangible assets | Bottom of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		1 year
Technology-based intangible assets | Top of range
Disclosure of detailed information about property, plant and equipment [line items]
Estimated useful life of intangibles		15 years

XML

Segment information - Revenue information for reportable segments (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of operating segments [line items]
Subscription revenue	R 1,434,615	R 1,239,914	R 1,158,229
Hardware and other revenue	277,867	300,144	306,792
Total revenue	1,712,482	1,540,058	1,465,021
Adjusted EBITDA	441,866	301,613	277,215
Operating segments
Disclosure of operating segments [line items]
Subscription revenue	1,434,615	1,239,914	1,158,229
Hardware and other revenue	277,867	300,144	306,792
Total revenue	1,712,482	1,540,058	1,465,021
Adjusted EBITDA	559,057	395,965	354,540
Operating segments | Total Regional Sales Offices
Disclosure of operating segments [line items]
Subscription revenue	1,433,711	1,239,036	1,157,098
Hardware and other revenue	277,727	300,144	306,792
Total revenue	1,711,438	1,539,180	1,463,890
Adjusted EBITDA	708,935	523,793	467,943
Operating segments | Africa
Disclosure of operating segments [line items]
Subscription revenue	872,646	772,224	711,208
Hardware and other revenue	84,832	86,945	96,699
Total revenue	957,478	859,169	807,907
Adjusted EBITDA	440,900	344,077	320,466
Operating segments | Europe
Disclosure of operating segments [line items]
Subscription revenue	115,199	113,223	110,251
Hardware and other revenue	78,061	64,108	51,736
Total revenue	193,260	177,331	161,987
Adjusted EBITDA	65,326	52,369	35,359
Operating segments | Americas
Disclosure of operating segments [line items]
Subscription revenue	194,890	121,462	115,413
Hardware and other revenue	32,715	38,957	41,527
Total revenue	227,605	160,419	156,940
Adjusted EBITDA	79,127	26,804	2,908
Operating segments | Middle East and Australasia
Disclosure of operating segments [line items]
Subscription revenue	200,241	199,474	202,163
Hardware and other revenue	78,424	104,976	111,764
Total revenue	278,665	304,450	313,927
Adjusted EBITDA	106,835	91,149	107,279
Operating segments | Brazil
Disclosure of operating segments [line items]
Subscription revenue	50,735	32,653	18,063
Hardware and other revenue	3,695	5,158	5,066
Total revenue	54,430	37,811	23,129
Adjusted EBITDA	16,747	9,394	1,931
Operating segments | Central Services Organization
Disclosure of operating segments [line items]
Subscription revenue	904	878	1,131
Hardware and other revenue	140	0	0
Total revenue	1,044	878	1,131
Adjusted EBITDA	(149,878)	(127,828)	(113,403)
Corporate and consolidation entries
Disclosure of operating segments [line items]
Subscription revenue	0	0	0
Hardware and other revenue	0	0	0
Total revenue	0	0	0
Adjusted EBITDA	R (117,191)	R (94,352)	R (77,325)

XML

Segment information - Narrative (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of operating segments [line items]
Impairment loss recognized in profit or loss	R 9
Reversal of impairment		R 791
Revenue	1,712,482	1,540,058	R 1,465,021
South African-based
Disclosure of operating segments [line items]
Revenue	931,700	836,200	784,500
Non-current assets other than financial instruments and deferred tax assets	615,900	621,000	533,800
Foreign-based
Disclosure of operating segments [line items]
Revenue	780,800	703,900	680,500
Non-current assets other than financial instruments and deferred tax assets	260,800	174,600	120,800
In-vehicle devices installed
Disclosure of operating segments [line items]
Impairment loss recognized in profit or loss	0
Reversal of impairment		791
In-vehicle devices installed | Brazil segment
Disclosure of operating segments [line items]
Impairment loss recognized in profit or loss		800	1,900
Reversal of impairment	800	800
Product development costs | Africa segment
Disclosure of operating segments [line items]
Impairments to intangible assets	2,300	2,600
Product development costs | CSO segment
Disclosure of operating segments [line items]
Impairments to intangible assets	R 400	R 500
Computer software, technology, in-house software and other | Corporate and consolidation entries
Disclosure of operating segments [line items]
Impairments to intangible assets			R 2,900

XML

Segment information - Reconciliation of adjusted EBITDA to profit for the year (Details) - ZAR (R) R in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Disaggregation Of Revenue [Line Items]
Adjusted EBITDA		R 441,866	R 301,613	R 277,215
Add:
Net profit on sale of property, plant and equipment and intangible assets		1,264	0	0
Reversal of impairment		0	791	0
Decrease in restructuring cost provision		741	0	333
Depreciation		(151,945)	(98,508)	(75,037)
Amortization		(63,926)	(44,734)	(47,586)
Impairment		(2,696)	(3,166)	(4,776)
Share-based compensation costs		(10,352)	(3,311)	(5,820)
Equity-settled share-based compensation costs		(9,000)	(2,247)	(7,838)
Cash-settled share-based compensation costs	R (1,400)	(1,352)	(1,064)	2,018
Net loss on sale of property, plant and equipment and intangible assets		0	(262)	(208)
Increase in restructuring cost provision		0	(14,561)	0
Transaction costs arising from investigating strategic alternatives(7)		0	0	(5,037)
Operating profit		214,952	137,862	139,084
Add: Finance (costs)/income — net		(69)	10,391	150,327
Less: Taxation		(33,690)	(26,812)	(106,920)
Profit for the year		181,193	121,441	182,491
Reversal of impairment			791
Asset impairments		9
Product development costs | Africa segment
Add:
Asset impairments		2,300	2,600
Product development costs | CSO segment
Add:
Asset impairments		400	500
Software licenses | Unallocated amounts
Add:
Asset impairments				2,900
In-vehicle devices installed
Add:
Reversal of impairment			791
Asset impairments		0
In-vehicle devices installed | Brazil segment
Add:
Reversal of impairment		R 800	800
Asset impairments			R 800	R 1,900

XML

Property, plant and equipment - Net book value of property, plant and equipment (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	R 294,120	R 235,584
Additions	238,248	170,010
Transfers	0	0
Assets classified as held for sale	(17,058)
Impairment (notes 5, 23, 29, 31.2)	(9)
Reversal of impairment (notes 5, 23, 29, 31.2)		791
Disposals	(1,936)	(631)
Depreciation charge (notes 5, 23, 31.2)	(151,945)	(98,508)	R (75,037)
Currency translation differences	(27,382)	(13,126)
Net book amount	334,038	294,120	235,584
Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	517,049	417,773
Net book amount	614,517	517,049	417,773
Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	(222,929)	(182,189)
Net book amount	(280,479)	(222,929)	(182,189)
Property
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	17,511	17,964
Additions	0	0
Transfers	0	0
Assets classified as held for sale	(17,058)
Impairment (notes 5, 23, 29, 31.2)		0
Reversal of impairment (notes 5, 23, 29, 31.2)		0
Disposals	0	0
Depreciation charge (notes 5, 23, 31.2)	(453)	(453)
Currency translation differences	0	0
Net book amount	0	17,511	17,964
Property | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	22,288	22,288
Net book amount	0	22,288	22,288
Property | Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	(4,777)	(4,324)
Net book amount	0	(4,777)	(4,324)
Plant, equipment, vehicles and other
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	14,871	17,715
Additions	4,090	4,712
Transfers	(613)	0
Assets classified as held for sale	0
Impairment (notes 5, 23, 29, 31.2)	(6)
Reversal of impairment (notes 5, 23, 29, 31.2)		0
Disposals	(606)	(181)
Depreciation charge (notes 5, 23, 31.2)	(5,237)	(6,759)
Currency translation differences	(280)	(616)
Net book amount	12,219	14,871	17,715
Plant, equipment, vehicles and other | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	48,186	51,474
Net book amount	47,066	48,186	51,474
Property, plant and equipment retired and removed from accounting records	1,200	5,200
Plant, equipment, vehicles and other | Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	(33,315)	(33,759)
Net book amount	(34,847)	(33,315)	(33,759)
Property, plant and equipment retired and removed from accounting records	(1,200)	(5,200)
Computer and radio equipment
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	12,320	13,974
Additions	4,630	6,698
Transfers	613	0
Assets classified as held for sale	0
Impairment (notes 5, 23, 29, 31.2)	(3)
Reversal of impairment (notes 5, 23, 29, 31.2)		0
Disposals	(165)	(80)
Depreciation charge (notes 5, 23, 31.2)	(6,772)	(7,785)
Currency translation differences	(253)	(487)
Net book amount	10,370	12,320	13,974
Computer and radio equipment | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	58,048	65,160
Net book amount	46,735	58,048	65,160
Property, plant and equipment retired and removed from accounting records	14,700	10,100
Computer and radio equipment | Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	(45,728)	(51,186)
Net book amount	(36,365)	(45,728)	(51,186)
Property, plant and equipment retired and removed from accounting records	(14,700)	(10,100)
In-vehicle devices uninstalled
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	55,470	61,602
Additions	229,528	158,600
Transfers	(232,050)	(161,532)
Assets classified as held for sale	0
Impairment (notes 5, 23, 29, 31.2)	0
Reversal of impairment (notes 5, 23, 29, 31.2)		0
Disposals	0	0
Depreciation charge (notes 5, 23, 31.2)	0	0
Currency translation differences	(2,777)	(3,200)
Net book amount	50,171	55,470	61,602
In-vehicle devices uninstalled | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	55,470	61,989
Net book amount	50,171	55,470	61,989
In-vehicle devices uninstalled | Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	0	(387)
Net book amount	0	0	(387)
In-vehicle devices installed
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	193,948	124,329
Additions	0	0
Transfers	232,050	161,532
Assets classified as held for sale	0
Impairment (notes 5, 23, 29, 31.2)	0
Reversal of impairment (notes 5, 23, 29, 31.2)		791
Disposals	(1,165)	(370)
Depreciation charge (notes 5, 23, 31.2)	(139,483)	(83,511)
Currency translation differences	(24,072)	(8,823)
Net book amount	261,278	193,948	124,329
In-vehicle devices installed | Cost
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	333,057	216,862
Net book amount	470,545	333,057	216,862
Property, plant and equipment retired and removed from accounting records	63,900	31,900
In-vehicle devices installed | Accumulated depreciation and impairments
Reconciliation of changes in property, plant and equipment [abstract]
Net book amount	(139,109)	(92,533)
Net book amount	(209,267)	(139,109)	R (92,533)
Property, plant and equipment retired and removed from accounting records	R (63,900)	R (31,900)

XML

Property, plant and equipment - Narrative (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions	R 238,248	R 170,010
Capital expenditures incurred but not yet paid		5,000
Depreciation	151,945	98,508	R 75,037
Reversal of impairment		791
In-vehicle devices uninstalled
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions	229,528	158,600
Capital expenditures incurred but not yet paid			12,100
Depreciation	0	0
Reversal of impairment		0
Plant, equipment, vehicles and other
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions	4,090	4,712
Depreciation	5,237	6,759
Reversal of impairment		0
In-vehicle devices installed
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions	0	0
Depreciation	139,483	83,511
Reversal of impairment		791
Central Services Organization | In-vehicle devices uninstalled
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions		1,700
Capital expenditures incurred but not yet paid	1,400	1,900
Central Services Organization | Plant, equipment, vehicles and other
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant, and equipment additions		200
Brazil segment | In-vehicle devices installed
Disclosure of detailed information about property, plant and equipment [line items]
Reversal of impairment	800	800
Cost of sales
Disclosure of detailed information about property, plant and equipment [line items]
Depreciation	R 141,600	R 85,800	R 60,200

XML

Property, plant and equipment - Assets classified as held for sale (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Non-current assets
Property, plant and equipment	R 334,038	R 294,120	R 235,584
Current assets
Assets classified as held for sale	17,058	0
Total assets	1,993,325	1,906,689
Property, plant and equipment
Non-current assets
Property, plant and equipment	334,038	294,120
Current assets
Assets classified as held for sale	17,058	0
Total assets	R 351,096	R 294,120

XML

Intangible assets - Summary of intangible assets (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	R 881,900	R 846,851
Additions	94,638	119,408
Transfers	0
Disposals	(1,188)	0
Amortization charge (notes 23 and 31.2)	(63,926)	(44,734)	R (47,586)
Impairment loss (notes 5, 23, 29 and 31.2)	(2,687)	(3,166)	(2,871)
Currency translation differences	(10,210)	(36,459)
Closing net book amount	898,527	881,900	846,851
Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	1,057,998	998,167
Closing net book amount	1,115,390	1,057,998	998,167
Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	(176,098)	(151,316)
Closing net book amount	(216,863)	(176,098)	(151,316)
Goodwill
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	618,910	654,329
Additions	0	0
Transfers	0
Disposals	0	0
Amortization charge (notes 23 and 31.2)	0	0
Impairment loss (notes 5, 23, 29 and 31.2)	0	0
Currency translation differences	(7,266)	(35,419)
Closing net book amount	611,644	618,910	654,329
Goodwill | Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	618,910	654,329
Closing net book amount	611,644	618,910	654,329
Goodwill | Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	0	0
Closing net book amount	0	0	0
Patents and trademarks
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	926	1,623
Additions	31	119
Transfers	0
Disposals	0	0
Amortization charge (notes 23 and 31.2)	(513)	(816)
Impairment loss (notes 5, 23, 29 and 31.2)	0	0
Currency translation differences	0	0
Closing net book amount	444	926	1,623
Patents and trademarks | Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	3,155	3,036
Closing net book amount	1,031	3,155	3,036
Intangible assets retired	2,200
Patents and trademarks | Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	(2,229)	(1,413)
Closing net book amount	(587)	(2,229)	(1,413)
Intangible assets retired	(2,200)
Customer relationships
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	23,223	29,985
Additions	5,300	0
Transfers	0
Disposals	0	0
Amortization charge (notes 23 and 31.2)	(7,516)	(6,762)
Impairment loss (notes 5, 23, 29 and 31.2)	0	0
Currency translation differences	(356)	0
Closing net book amount	20,651	23,223	29,985
Customer relationships | Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	40,165	40,165
Closing net book amount	44,990	40,165	40,165
Intangible assets retired		16,400
Customer relationships | Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	(16,942)	(10,180)
Closing net book amount	(24,339)	(16,942)	(10,180)
Intangible assets retired		(16,400)
Product development costs
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	175,789	129,961
Additions	65,342	78,020
Transfers	(365)
Disposals	(1,188)	0
Amortization charge (notes 23 and 31.2)	(37,639)	(28,847)
Impairment loss (notes 5, 23, 29 and 31.2)	(2,687)	(3,166)
Currency translation differences	(235)	(179)
Closing net book amount	199,017	175,789	129,961
Product development costs | Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	265,637	206,836
Closing net book amount	312,338	265,637	206,836
Intangible assets retired	13,900	1,700
Product development costs | Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	(89,848)	(76,875)
Closing net book amount	(113,321)	(89,848)	(76,875)
Intangible assets retired	(13,900)	(1,700)
Computer software, technology, in-house software and other
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	63,052	30,953
Additions	23,965	41,269
Transfers	365
Disposals	0	0
Amortization charge (notes 23 and 31.2)	(18,258)	(8,309)
Impairment loss (notes 5, 23, 29 and 31.2)	0	0
Currency translation differences	(2,353)	(861)
Closing net book amount	66,771	63,052	30,953
Computer software, technology, in-house software and other | Cost
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	130,131	93,801
Closing net book amount	145,387	130,131	93,801
Intangible assets retired	4,300
Computer software, technology, in-house software and other | Accumulated amortization and impairments
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	(67,079)	(62,848)
Closing net book amount	(78,616)	R (67,079)	R (62,848)
Intangible assets retired	R (4,300)

XML

Intangible assets - Narrative (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of detailed information about intangible assets [line items]
Additions to intangible assets	R 94,638	R 119,408
Capital expenditures incurred but not yet paid		5,000
Amortization expense	R 63,926	R 44,734	R 47,586
Period over which management has projected cash flows	5 years
Cash-generating units | Bottom of range
Disclosure of detailed information about intangible assets [line items]
Approved financial budget period over which management has projected cash flows	3 years
Cash-generating units | Top of range
Disclosure of detailed information about intangible assets [line items]
Approved financial budget period over which management has projected cash flows	5 years
CSO segment
Disclosure of detailed information about intangible assets [line items]
Useful life of intangible assets	6 years 6 months	5 years
Cost of sales
Disclosure of detailed information about intangible assets [line items]
Amortization expense	R 44,100	R 30,100	24,900
Product development costs
Disclosure of detailed information about intangible assets [line items]
Staff costs capitalized to intangibles	46,400	54,600	45,200
Capital expenditures incurred but not yet paid		1,900	900
Net book amount of assets in progress	32,100	51,100	43,600
Product development costs | CSO segment
Disclosure of detailed information about intangible assets [line items]
Impairments to intangible assets	400	500
Product development costs | Africa segment
Disclosure of detailed information about intangible assets [line items]
Impairments to intangible assets	2,300	2,600
Computer software, technology, in-house software and other
Disclosure of detailed information about intangible assets [line items]
Staff costs capitalized to intangibles	R 0	1,600	1,300
Capital expenditures incurred but not yet paid		3,100
Net book amount of assets in progress		R 42,800	R 18,300
Computer software, technology, in-house software and other | Bottom of range
Disclosure of detailed information about intangible assets [line items]
Useful life of intangible assets	2 years
Computer software, technology, in-house software and other | Top of range
Disclosure of detailed information about intangible assets [line items]
Useful life of intangible assets	5 years
Change in useful lives, amortization expense | CSO segment
Disclosure of detailed information about intangible assets [line items]
Increase (decrease) in accounting estimate	R (4,500)

XML

Intangible assets - Amortization reduction expected to be charged to the income statement over the future fiscal years (Details) - Change in useful lives, amortization expense - CSO segment R in Thousands	12 Months Ended
	Mar. 31, 2018 ZAR (R)
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	R (4,500)
2019
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	1,694
2020
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	611
2021
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	748
2022
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	457
2023
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	334
2024
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	303
2025
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	158
2026
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	106
2027
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	106
2028
Expected fiscal year impact on amortization expense
Increase (decrease) in accounting estimate	R 27

XML

Intangible assets - Summary of goodwill by operating segment (Details) R in Thousands	12 Months Ended
	Mar. 31, 2018 ZAR (R)
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	R 881,900
Closing net book amount	898,527
Goodwill
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	618,910
Foreign currency translation differences	(7,266)
Closing net book amount	611,644
Goodwill | CSO segment
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	103,119
Foreign currency translation differences	0
Closing net book amount	103,119
Goodwill | Europe segment
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	109,610
Foreign currency translation differences	(986)
Closing net book amount	108,624
Goodwill | Middle East and Australasia segment
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	53,131
Foreign currency translation differences	(6,280)
Closing net book amount	46,851
Goodwill | Africa segment
Reconciliation of changes in intangible assets and goodwill [abstract]
Opening net book amount	353,050
Foreign currency translation differences	0
Closing net book amount	R 353,050

XML

Intangible assets - Key assumptions used for value-in-use calculations (Details)	Mar. 31, 2018	Mar. 31, 2017
CSO segment
Disclosure of detailed information about intangible assets [line items]
– pre-tax discount rate applied to the cash flow projections (%)	17.10%	17.60%
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.40%	5.50%
Africa segment
Disclosure of detailed information about intangible assets [line items]
– pre-tax discount rate applied to the cash flow projections (%)	17.30%	18.60%
– growth rate used to extrapolate cash flow beyond the budget period (%)	5.40%	5.50%
Europe segment
Disclosure of detailed information about intangible assets [line items]
– pre-tax discount rate applied to the cash flow projections (%)	9.20%	9.80%
– growth rate used to extrapolate cash flow beyond the budget period (%)	2.20%	2.30%
Middle East and Australasia segment
Disclosure of detailed information about intangible assets [line items]
– pre-tax discount rate applied to the cash flow projections (%)	13.30%	16.00%
– growth rate used to extrapolate cash flow beyond the budget period (%)	2.90%	2.50%

XML

Finance lease receivable - Current and non-current finance lease receivables (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of maturity analysis of finance lease payments receivable [line items]
Total finance lease receivable	R 0	R 162
Short-term portion receivable within 12 months	0	140
Long-term portion receivable after 12 months	R 0	R 22
Bottom of range
Disclosure of maturity analysis of finance lease payments receivable [line items]
Term of leases	24 months
Top of range
Disclosure of maturity analysis of finance lease payments receivable [line items]
Term of leases	36 months

XML

Finance lease receivable - Net investment in finance leases (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Disclosure of finance lease and operating lease by lessor [line items]
Gross finance lease receivable – minimum lease payments	R 0	R 167
Unearned finance income	0	(5)
Net investment in finance leases	0	162
Not later than one year
Disclosure of finance lease and operating lease by lessor [line items]
Gross finance lease receivable – minimum lease payments	0	145
Net investment in finance leases	0	140
Later than one year but not later than five years
Disclosure of finance lease and operating lease by lessor [line items]
Gross finance lease receivable – minimum lease payments	0	22
Net investment in finance leases	R 0	R 22

XML

Inventory (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Inventories [Abstract]
Inventory – finished goods	R 57,013	R 26,449
Write-down of inventory to net realizable value	R 9,294	R 9,967	R 5,317

XML

Trade and other receivables - Carrying amounts of trade and other receivables (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure Of Trade And Other Receivable [Line Items]
Trade receivables	R 231,355	R 211,619
Pre-payments	27,240	24,772
Sundry debtors	27,811	24,185
Trade and other current receivables	286,406	260,576
Cost
Disclosure Of Trade And Other Receivable [Line Items]
Trade receivables	248,878	220,402
Provision for impairment
Disclosure Of Trade And Other Receivable [Line Items]
Trade receivables	(17,523)	(8,783)
Sundry debtors	0	(4,563)
Trade and other current receivables	R (17,523)	R (13,346)	R (12,438)

XML

Trade and other receivables - Ageing of trade receivables (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	R 231,355	R 211,619
Not past due
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	145,012	128,201
Past due by 1 to 30 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	49,326	52,990
Past due by 31 to 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	21,031	19,145
Past due by more than 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	15,986	11,283
Cost
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	248,878	220,402
Cost | Not past due
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	145,346	129,121
Cost | Past due by 1 to 30 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	51,844	54,340
Cost | Past due by 31 to 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	24,763	20,999
Cost | Past due by more than 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	26,925	15,942
Provision for impairment
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	(17,523)	(8,783)
Provision for impairment | Not past due
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	(334)	(920)
Provision for impairment | Past due by 1 to 30 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	(2,518)	(1,350)
Provision for impairment | Past due by 31 to 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	(3,732)	(1,854)
Provision for impairment | Past due by more than 60 days
Disclosure of financial assets that are either past due or impaired [line items]
Gross receivables	R (10,939)	R (4,659)

XML

Trade and other receivables - Carrying amounts of trade and other receivables denominated in other currencies (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Disclosure of geographical areas [line items]
Trade and other current receivables	R 286,406	R 260,576
South African Rand
Disclosure of geographical areas [line items]
Trade and other current receivables	98,148	80,037
Australian Dollar
Disclosure of geographical areas [line items]
Trade and other current receivables	24,016	21,754
Brazilian Real
Disclosure of geographical areas [line items]
Trade and other current receivables	19,129	15,684
Euro
Disclosure of geographical areas [line items]
Trade and other current receivables	28,192	24,411
Great Britain Pound
Disclosure of geographical areas [line items]
Trade and other current receivables	18,883	18,535
United Arab Emirates Dirhams
Disclosure of geographical areas [line items]
Trade and other current receivables	2,578	3,354
United States Dollar
Disclosure of geographical areas [line items]
Trade and other current receivables	91,105	94,441
Other
Disclosure of geographical areas [line items]
Trade and other current receivables	R 4,355	R 2,360

XML

Trade and other receivables - Movements in the provision for impairment of trade and other receivables (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Movements in the Group’s provision for impairment of trade and other receivables:
Opening balance	R 260,576
Closing balance	286,406	R 260,576
The Group’s provision for impairment of trade and other receivables includes:
Trade receivables			R 231,355	R 211,619
Sundry debtors			27,811	24,185
Closing balance	260,576	260,576	286,406	260,576
Provision for impairment
Movements in the Group’s provision for impairment of trade and other receivables:
Opening balance	(13,346)	(12,438)
Increase in provision for impairment (note 31.2)	(24,143)	(17,713)
Receivables written off during the year as irrecoverable — net	19,354	16,429
Foreign currency translation differences	612	376
Closing balance	(17,523)	(13,346)
The Group’s provision for impairment of trade and other receivables includes:
Trade receivables			(17,523)	(8,783)
Sundry debtors			0	(4,563)
Closing balance	R (13,346)	R (12,438)	R (17,523)	R (13,346)

XML

Trade and other receivables - Narrative (Details) - ZAR (R) R in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of credit risk exposure [line items]
Recovery of sundry receivables previously fully impaired	R 4.6
Trade receivables
Disclosure of credit risk exposure [line items]
Trade receivables pledged as security	R 17.9	R 11.1
Trade and other receivables | Credit risk | Two largest debtors
Disclosure of credit risk exposure [line items]
Expected credit loss rate	11.00%	11.00%

XML

Restricted cash (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	R 20,935	R 13,268
Cash securing guarantee issued in terms of the Mobile Telephone Networks Proprietary Limited incentive agreement (denominated in South African Rand)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	1,000	1,000
Cash securing guarantees issued in respect of lease agreements entered into (denominated in South African Rand)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	393	393
Tax refund received erroneously (denominated in South African Rand)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	7,188	0
Cash securing guarantees issued in respect of products sold by MiX Telematics Europe Limited (denominated in Euro)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	1,447	1,422
Cash securing guarantees issued in respect of MiX Telematics Middle East FZE relating to employee visas in the UAE (denominated in UAE Dirham)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	3,616	4,192
Cash held for purposes of distribution to MiX Telematics Enterprise BEE Trust and MiX Telematics Fleet Support Trust beneficiaries (denominated in South African Rand)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	6,257	5,118
Cash securing guarantees issued in respect of property lease agreements entered into by MiX Telematics Australasia (denominated in Australian Dollar)
Disclosure Of Detailed Information About Restricted Cash [Line Items]
Restricted cash	R 1,034	R 1,143

XML

Net cash and cash equivalents - Composition of net cash and cash equivalents (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Financial Instruments [Abstract]
Cash and cash equivalents	R 308,258	R 375,782	R 877,136
Bank overdraft (note 15)	(17,720)	(19,449)	(16,374)
Cash and cash equivalents, net of overdrafts	R 290,538	R 356,333	R 860,762	R 927,415

XML

Net cash and cash equivalents - Credit quality of cash and cash equivalents by external credit ratings (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	R 308,258	R 375,782	R 877,136
Credit risk
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	308,258	375,782	877,136
AA | Credit risk
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	110,854	197,873	743,600
A | Credit risk
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	82,738	78,605	48,757
BBB | Credit risk
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	33,962	99,304	84,779
BB | Credit risk
Disclosure of credit risk exposure [line items]
Cash and cash equivalents	R 80,704	R 0	R 0

XML

Net cash and cash equivalents - Carrying amounts of net cash and cash equivalents by denomination (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	R 290,538	R 356,333	R 860,762	R 927,415
Currency risk
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	290,538	356,333	860,762
Currency risk | Great Britain Pound
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	37,209	48,540	45,017
Currency risk | Brazilian Real
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	3,787	2,987	3,625
Currency risk | South African Rand
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	171,223	100,721	87,675
Currency risk | Australian Dollar
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	22,912	19,574	25,451
Currency risk | United States Dollar
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	48,354	178,768	698,166
Currency risk | Euro
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	4,300	4,649	(55)
Currency risk | Other
Disclosure of nature and extent of risks arising from financial instruments [line items]
Cash and cash equivalents, net of overdrafts	R 2,753	R 1,094	R 883

XML

Stated capital - Change in shares issued and outstanding (Details) - ZAR (R) shares in Thousands, R in Thousands		12 Months Ended
	Aug. 29, 2016	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Number of shares
Balance (in shares)		563,435	759,138
Shares issued (in shares)		6,001	5,125
Share repurchase (in shares)		(5,016)	(200,828)
Balance (in shares)		564,420	563,435	759,138
Stated capital
Balance		R 854,345	R 1,320,955
Shares issued		10,726	7,072
Share repurchase	R 3,222	(18,666)	(473,682)	R (123,760)
Balance		R 846,405	R 854,345	R 1,320,955

XML

Stated capital - Narrative (Details)			1 Months Ended	12 Months Ended
	Aug. 29, 2016 ZAR (R)	Apr. 29, 2016 ZAR (R) R / shares shares	Jun. 30, 2017 R / shares	Mar. 31, 2018 ZAR (R) shares vote plan	Mar. 31, 2017 ZAR (R) shares	May 23, 2017 ZAR (R)	Mar. 31, 2016 shares	Mar. 31, 2014 shares
Disclosure of classes of share capital [line items]
Number of shares issued (in shares)				564,420,000	563,435,000		759,138,000
Authorized amount under share repurchase program | R						R 270,000,000
Number of shares authorized for repurchase (in shares)		200,828,260
Repurchase price per share (in ZAR per share) | R / shares		R 2.36	R 3.72
Aggregate repurchase consideration | R	R 473,955,000	R 474,000,000
Number of equity incentive plans | plan				2
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise (in ZAR per share) | R				R 4.64	R 0.00
SARs
Disclosure of classes of share capital [line items]
Vesting percentage per annum				25.00%
Annual shareholder return				10.00%
Weighted average remaining contractual life				4 years 4 months 17 days	4 years 10 months 17 days
Number of SARs exercised (in shares)				1,708,750	0
Weighted average exercise price of SARs exercised (in ZAR per share) | R				R 3.10	R 0.00
TeliMatrix Group Executive Incentive Scheme
Disclosure of classes of share capital [line items]
Number of share options granted in share-based payment arrangement				0	0
Number of share options exercised (in shares)				5,513,000	5,125,000
Weighted average exercise price of share options exercised (in ZAR per share) | R				R 1.95	R 1.38
Weighted average share price (in ZAR per share) | R				R 6.08	R 3.07
TeliMatrix Group Executive Incentive Scheme | Options
Disclosure of classes of share capital [line items]
Vesting percentage per annum				25.00%
Expiration term				6 years
Weighted average remaining contractual life				1 year 3 months 22 days	1 year 10 months 13 days
TeliMatrix Group Executive Incentive Scheme | Options | Top of range
Disclosure of classes of share capital [line items]
Annual shareholder return				10.00%
TeliMatrix Group Executive Incentive Scheme | Options | Bottom of range
Disclosure of classes of share capital [line items]
Annual shareholder return				5.00%
Group Executives | SARs
Disclosure of classes of share capital [line items]
Number of SARs exercised (in shares)				0	0
Ordinary shares
Disclosure of classes of share capital [line items]
Number of shares authorized (in shares)				1,000,000,000	1,000,000,000
Number of votes per ordinary share | vote				1
Preference shares
Disclosure of classes of share capital [line items]
Number of shares authorized (in shares)								100,000,000
Number of shares issued (in shares)				0

XML

Stated capital - Purchases under share repurchase plan (Details) - ZAR (R) R / shares in Units, R in Thousands			1 Months Ended	10 Months Ended
	Aug. 29, 2016	Apr. 29, 2016	Jun. 30, 2017	Mar. 31, 2018
Stated Capital [Abstract]
Total number of shares repurchased (in shares)			5,015,660,000	5,015,660,000
Average price paid per share (in ZAR per share)		R 2.36	R 3.72
Shares canceled under the share repurchase program (in shares)			5,015,660,000	5,015,660,000
Total value of shares purchased as part of publicly announced program	R 473,682		R 18,666	R 18,666
Maximum value of shares that may yet be purchased under the program			R 251,334

XML

Stated capital - Financial effect of share repurchase transaction (Details) - ZAR (R) R in Thousands			1 Months Ended	10 Months Ended	12 Months Ended
	Aug. 29, 2016	Apr. 29, 2016	Jun. 30, 2017	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Stated Capital [Abstract]
Aggregate repurchase consideration	R 473,955	R 474,000
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 25)	(3,222)				R 18,666	R 473,682	R 123,760
Transaction costs capitalized	2,949
Total share repurchase costs	R 473,682		R 18,666	R 18,666

XML

Stated capital - Awards available for issue under the LTIP (Details) - SARs - LTIP - shares	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Number of awards
Number of awards available for issue (in shares)	91,315,000	105,265,000	117,100,000	120,000,000
Issued during the period (in shares)	(10,000,000)	(13,950,000)	(11,835,000)	(2,900,000)
Number of awards available for issue (in shares)	81,315,000	91,315,000	105,265,000	117,100,000

XML

Stated capital - Movements in share options outstanding and related weighted average exercise prices (Details)	12 Months Ended
	Mar. 31, 2018 ZAR (R) shares	Mar. 31, 2017 ZAR (R) shares
Number of options outstanding
Beginning balance (in shares)	13,750,000
Ending balance (in shares)	9,100,000	13,750,000
TeliMatrix Group Executive Incentive Scheme
Weighted average exercise price
Beginning balance (in cents per share) | R	R 2.66	R 2.35
Exercised (in ZAR per share) | R	1.95	1.38
Forfeited (in cents per share) | R	0.00	3.12
Expired (in cents per share) | R	0.00	1.12
Ending balance (in cents per share) | R	3.09	2.66
Exercisable at the end of the year (in cents per share) | R	R 2.85	R 2.17
Number of options outstanding
Beginning balance (in shares)	14,613,000	28,913,000
Exercised (in shares)	(5,513,000)	(5,125,000)
Forfeited (in shares)	0	(5,875,000)
Expired (in shares)	0	(3,300,000)
Ending balance (in shares)	9,100,000	14,613,000
Exercisable at the end of the year (in shares)	7,350,000	8,825,000

XML

Stated capital - Exercise prices of share options outstanding (Details) shares in Thousands	12 Months Ended
	Mar. 31, 2018 ZAR (R) shares	Mar. 31, 2017 shares	Mar. 31, 2016 shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	9,100	13,750
TeliMatrix Group Executive Incentive Scheme
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	9,100	14,613	28,913
TeliMatrix Group Executive Incentive Scheme | Granted on September 13, 2011
Disclosure of terms and conditions of share-based payment arrangement [line items]
Annual shareholder return	5.00%
Exercise price | R	R 1.30
Number of share options outstanding (in shares)	0	263
TeliMatrix Group Executive Incentive Scheme | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Annual shareholder return	10.00%
Exercise price | R	R 1.54
Number of share options outstanding (in shares)	0	2,750
TeliMatrix Group Executive Incentive Scheme | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Annual shareholder return	10.00%
Exercise price | R	R 2.46
Number of share options outstanding (in shares)	5,600	8,100
TeliMatrix Group Executive Incentive Scheme | Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Annual shareholder return	10.00%
Exercise price | R	R 4.11
Number of share options outstanding (in shares)	3,500	3,500

XML

Stated capital - Movements in SARs outstanding and related weighted average award prices (Details) - SARs	12 Months Ended
	Mar. 31, 2018 ZAR (R) shares	Mar. 31, 2017 ZAR (R) shares
Weighted average award price
Outstanding at the beginning of the year (in ZAR per share) | R	R 3.09	R 3.11
Exercised (in ZAR per share) | R	3.10	0.00
Forfeited (in ZAR per share) | R	3.14	3.03
Outstanding at the end of the year (in ZAR per share) | R	3.22	3.09
Exercisable at the end of the year (in ZAR per share) | R	R 3.13	R 3.05
Number of options
Outstanding at the beginning of the year (in shares)	20,810,000	14,435,000
Exercised (in shares)	(1,708,750)	0
Forfeited (in shares)	(1,062,000)	(7,575,000)
Outstanding at the end of the year (in shares)	28,039,000	20,810,000
Exercisable at the end of the year (in shares)	1,306,000	725,000
Granted on May 30, 2016
Weighted average award price
Granted (in ZAR per share) | R	R 0.00	R 2.94
Number of options
Outstanding at the beginning of the year (in shares)	6,925,000
Granted (in shares)	0	9,950,000
Outstanding at the end of the year (in shares)	6,525,000	6,925,000
Granted on November 24, 2016
Weighted average award price
Granted (in ZAR per share) | R	R 0.00	R 3.28
Number of options
Outstanding at the beginning of the year (in shares)	4,000,000
Granted (in shares)	0	4,000,000
Outstanding at the end of the year (in shares)	4,000,000	4,000,000
Granted on May 30, 2017
Weighted average award price
Granted (in ZAR per share) | R	R 3.46	R 0.00
Number of options
Outstanding at the beginning of the year (in shares)	0
Granted (in shares)	10,000,000	0
Outstanding at the end of the year (in shares)	9,750,000	0

XML

Stated capital - Award prices of SARs outstanding (Details) - SARs shares in Thousands	12 Months Ended
	Mar. 31, 2018 shares R / shares	Mar. 31, 2017 shares	Mar. 31, 2016 shares
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Number of SARs outstanding (in shares)	28,039	20,810	14,435
Granted on December 16, 2014
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Award price (in ZAR per share) | R / shares	R 3.05
Number of SARs outstanding (in shares)	0	725
Granted on August 31, 2015
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Award price (in ZAR per share) | R / shares	R 3.13
Number of SARs outstanding (in shares)	7,764	9,160
Granted on May 30, 2016
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Award price (in ZAR per share) | R / shares	R 2.94
Number of SARs outstanding (in shares)	6,525	6,925
Granted on November 24, 2016
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Award price (in ZAR per share) | R / shares	R 3.28
Number of SARs outstanding (in shares)	4,000	4,000
Granted on May 30, 2017
Disclosure of range of exercise prices of outstanding share options [line items]
Annual shareholder return	10.00%
Award price (in ZAR per share) | R / shares	R 3.46
Number of SARs outstanding (in shares)	9,750	0

XML

Stated capital - Salient details of SARs granted (Details) - SARs	12 Months Ended
	Mar. 31, 2018 year R / shares	Mar. 31, 2017 year R / shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Annual shareholder return	10.00%
May 30, 2017
Disclosure of terms and conditions of share-based payment arrangement [line items]
Fair value (in ZAR per share)	R 1.284
Award price (in ZAR per share)	3.46
JSE share price on grant date (in ZAR per share)	R 3.45
Annual shareholder return	10.00%
Remaining contractual life | year	5.17
Valuation assumptions and drivers
Volatility	41.50%
Anticipated forfeiture rate	5.00%
Anticipated dividend yield	3.84%
Annual risk-free interest rate	7.51%
November 24, 2016
Disclosure of terms and conditions of share-based payment arrangement [line items]
Fair value (in ZAR per share)		R 1.315
Award price (in ZAR per share)		3.28
JSE share price on grant date (in ZAR per share)	R 3.28	R 3.28
Annual shareholder return	10.00%	10.00%
Remaining contractual life | year		4.65
Valuation assumptions and drivers
Volatility		41.80%
Anticipated forfeiture rate		5.00%
Anticipated dividend yield		2.98%
Annual risk-free interest rate		8.20%
May 30, 2016
Disclosure of terms and conditions of share-based payment arrangement [line items]
Fair value (in ZAR per share)		R 1.119
Award price (in ZAR per share)		2.94
JSE share price on grant date (in ZAR per share)	R 2.89	R 2.89
Annual shareholder return	10.00%	10.00%
Remaining contractual life | year		4.17
Valuation assumptions and drivers
Volatility		40.30%
Anticipated forfeiture rate		5.00%
Anticipated dividend yield		3.57%
Annual risk-free interest rate		8.74%

XML

Stated capital - Share options and SARs held by executives (Details) R / shares in Units, shares in Thousands	12 Months Ended
	Mar. 31, 2018 ZAR (R) shares R / shares	Mar. 31, 2017 ZAR (R) shares R / shares	Mar. 31, 2016 shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	9,100	13,750
SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	28,039	20,810	14,435
Performance condition
Minimum shareholder return	10.00%
Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
JSE share price on grant date (in ZAR per share) | R / shares	R 3.45
Performance condition
Minimum shareholder return	10.00%
Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)		2,750
Option strike price (in ZAR per share) | R		R 1.54
JSE share price on grant date (in ZAR per share) | R		R 1.60
Performance condition
Minimum shareholder return		10.00%
Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	5,600	7,500
Option strike price (in ZAR per share) | R	R 2.46	R 2.46
JSE share price on grant date (in ZAR per share) | R	R 3.00	R 3.00
Performance condition
Minimum shareholder return	10.00%	10.00%
Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	3,500	3,500
Option strike price (in ZAR per share) | R	R 4.11	R 4.11
JSE share price on grant date (in ZAR per share) | R	R 4.11	R 4.11
Performance condition
Minimum shareholder return	10.00%	10.00%
Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
JSE share price on grant date (in ZAR per share) | R / shares	R 3.19	R 3.19
Performance condition
Minimum shareholder return	10.00%	10.00%
Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
JSE share price on grant date (in ZAR per share) | R / shares	R 2.89	R 2.89
Performance condition
Minimum shareholder return	10.00%	10.00%
Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
JSE share price on grant date (in ZAR per share) | R / shares	R 3.28	R 3.28
Performance condition
Minimum shareholder return	10.00%	10.00%
Group Executives | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	14,900	9,400
Group Executives | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	5,500
Group Executives | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	2,950	2,950
Group Executives | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	2,950	2,950
Group Executives | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	3,500	3,500
S Joselowitz
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	2,500	2,500
S Joselowitz | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	3,100	2,000
S Joselowitz | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,100
S Joselowitz | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)		0
S Joselowitz | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	2,500	2,500
S Joselowitz | Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	0	0
S Joselowitz | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,000	1,000
S Joselowitz | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,000	1,000
S Joselowitz | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	0	0
C Tasker
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	3,500	5,500
C Tasker | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	3,475	2,375
C Tasker | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,100
C Tasker | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)		2,000
Option strike price (in ZAR per share) | R	R 1.54
JSE share price on grant date (in ZAR per share) | R	R 6.28
Performance condition
Minimum shareholder return	10.00%
C Tasker | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	2,000	2,000
C Tasker | Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	1,500	1,500
C Tasker | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	750	750
C Tasker | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	750	750
C Tasker | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	875	875
P Dell | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	2,375	1,275
P Dell | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,100
P Dell | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	200	200
P Dell | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	200	200
P Dell | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	875	875
G Pretorius
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	2,100	3,250
G Pretorius | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	2,975	1,875
G Pretorius | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,100
G Pretorius | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)		750
Option strike price (in ZAR per share) | R	R 1.54
JSE share price on grant date (in ZAR per share) | R	R 6.48
Performance condition
Minimum shareholder return	10.00%
G Pretorius | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	1,100	1,500
Option strike price (in ZAR per share) | R	R 2.46
JSE share price on grant date (in ZAR per share) | R	R 4.51
Performance condition
Minimum shareholder return	10.00%
G Pretorius | Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	1,000	1,000
G Pretorius | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	500	500
G Pretorius | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	500	500
G Pretorius | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	875	875
C Lewis
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	1,000	2,500
C Lewis | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	2,975	1,875
C Lewis | Granted on May 30, 2017 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	1,100
C Lewis | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)		0
C Lewis | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	0	1,500
Option strike price (in ZAR per share) | R	R 2.46
JSE share price on grant date (in ZAR per share) | R	R 6.00
Performance condition
Minimum shareholder return	10.00%
C Lewis | Granted on September 10, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options outstanding (in shares)	1,000	1,000
C Lewis | Granted on August 31, 2015 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	500	500
C Lewis | Granted on May 30, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	500	500
C Lewis | Granted on November 24, 2016 | SARs
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of SARs outstanding (in shares)	875	875

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Stated capital - Share options and SARs exercised by executives (Details)	12 Months Ended
	Mar. 31, 2018 ZAR (R) shares	Mar. 31, 2017 ZAR (R) shares
Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Option strike price (in ZAR per share)		R 1.54
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 1.60
Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Option strike price (in ZAR per share)	R 2.46	R 2.46
Annual shareholder return	10.00%	10.00%
JSE share price on grant date (in ZAR per share)	R 3.00	R 3.00
C Tasker | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares	2,000,000
Option strike price (in ZAR per share)	R 1.54
Annual shareholder return	10.00%
JSE share price on grant date (in ZAR per share)	R 6.28
G Pretorius | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares	750,000
Option strike price (in ZAR per share)	R 1.54
Annual shareholder return	10.00%
JSE share price on grant date (in ZAR per share)	R 6.48
G Pretorius | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares	400,000
Option strike price (in ZAR per share)	R 2.46
Annual shareholder return	10.00%
JSE share price on grant date (in ZAR per share)	R 4.51
C Lewis | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares	1,500,000
Option strike price (in ZAR per share)	R 2.46
Annual shareholder return	10.00%
JSE share price on grant date (in ZAR per share)	R 6.00
B Horan | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares		250,000
Option strike price (in ZAR per share)		R 1.54
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 3.00
S Joselowitz | Granted on June 4, 2010
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares		1,500,000
Option strike price (in ZAR per share)		R 1.12
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 3.01
M Pydigadu | Granted on June 4, 2010
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares		600,000
Option strike price (in ZAR per share)		R 1.12
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 2.89
M Pydigadu | Granted on November 7, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares		750,000
Option strike price (in ZAR per share)		R 2.46
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 3.23
R Botha | Granted on January 3, 2012
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of share options exercised (in shares) | shares		1,375,000
Option strike price (in ZAR per share)		R 1.12
Annual shareholder return		10.00%
JSE share price on grant date (in ZAR per share)		R 3.08

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Other reserves (Details) - ZAR (R) R in Thousands		1 Months Ended	12 Months Ended
	May 31, 2014	Jun. 30, 2014	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Disclosure of reserves within equity [line items]
Balance			R 1,442,931	R 1,919,808	R 1,864,572
Foreign currency translation			(60,568)	(80,929)	88,199
– Movement for the year – Gross			(60,331)	(80,870)	90,665
– Tax effect of movement			(237)	(59)	(2,466)
– Transaction			9,000	2,247	7,838
Transactions with non-controlling interests			0
Balance			1,517,181	1,442,931	1,919,808	R 1,864,572
Other reserves
Disclosure of reserves within equity [line items]
Balance			(4,370)	74,262	(21,894)
Foreign currency translation			(60,576)	(80,879)
– Movement for the year – Gross			(60,339)	(80,820)
– Tax effect of movement			(237)	(59)
Share-based payments (notes 23 and 31.2)			14,833	2,247
– Transaction			9,000	2,247	7,838
– Excess tax benefit			5,833	0
Transactions with non-controlling interests			(1,501)	0
Balance			(51,614)	(4,370)	R 74,262	R (21,894)
Reserve of foreign currency translation
Disclosure of reserves within equity [line items]
Balance			102,802
Balance			42,226	102,802
Reserve of transactions with non-controlling interests
Disclosure of reserves within equity [line items]
Balance			(137,438)
Balance			(138,939)	(137,438)
Reserve of transactions with non-controlling interests, difference between consideration and Group's share of net assets
Disclosure of reserves within equity [line items]
Balance			137,900
Balance			137,900	137,900
Reserve of transactions with non-controlling interests, transfer of historical losses
Disclosure of reserves within equity [line items]
Balance			(1,500)
Reserve of share-based payments
Disclosure of reserves within equity [line items]
Balance			30,266
Balance			R 45,099	R 30,266
MiX Brazil
Disclosure of reserves within equity [line items]
Proportion of ownership interests held by non-controlling interests	0.0025%	5.00%	5.00%			5.00%	0.0025%
MiX Brazil | Reserve of transactions with non-controlling interests
Disclosure of reserves within equity [line items]
Balance			R (500)

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Borrowings - Narrative (Details) - ZAR (R)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Borrowings [abstract]
New borrowings raised	R 0	R 0

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Borrowings - Undrawn borrowing facilities (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Disclosure of detailed information about borrowings [line items]
Undrawn borrowing facilities	R 70,780	R 69,051
Standard Bank Limited overdraft
Disclosure of detailed information about borrowings [line items]
Reduction to the basis used for interest rate	1.20%
Undrawn borrowing facilities	R 52,280	50,551
Standard Bank Limited vehicle and asset finance
Disclosure of detailed information about borrowings [line items]
Reduction to the basis used for interest rate	1.20%
Undrawn borrowing facilities	R 8,500	8,500
Nedbank Limited overdraft
Disclosure of detailed information about borrowings [line items]
Reduction to the basis used for interest rate	2.00%
Undrawn borrowing facilities	R 10,000	R 10,000

XML

Trade and other payables (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017
Subclassifications of assets, liabilities and equities [abstract]
Trade payables	R 98,094	R 79,892
Accruals	176,963	152,323
Revenue received in advance	66,120	62,990
Value added taxes	6,646	6,624
Other	2,696	7,281
Trade and other payables	R 350,519	R 309,110

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Retirement benefits (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Employee Benefits [Abstract]
Pension contributions	R 27,097	R 29,370	R 27,118

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Deferred tax - Deferred tax assets and liabilities (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			R 82,658	R 100,067
Deferred tax assets			40,717	28,130
Net deferred tax liability	R (71,937)	R (90,976)	(41,941)	(71,937)	R (90,976)
The gross movement in net deferred tax assets/(liabilities) is as follows:
Beginning of the year	(71,937)	(90,976)
Foreign currency translation differences	(578)	(878)
Credited/(charged) to equity (note 14)	5,596	(59)
Income statement charge (note 28)	24,978	19,976
End of the year	(41,941)	(71,937)
Before offset amounts
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Net deferred tax liability	(71,937)	(90,976)	(41,941)	(71,937)	(90,976)
The gross movement in net deferred tax assets/(liabilities) is as follows:
Beginning of the year	(71,937)	(90,976)
Foreign currency translation differences	(578)	(878)
Credited/(charged) to equity (note 14)	(5,596)	59
Income statement charge (note 28)	(24,978)	(19,976)
End of the year	(41,941)	(71,937)
Before offset amounts | Capital allowances for tax purposes
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			42,828	33,616	27,603
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(27)	0
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	9,185	6,013
Before offset amounts | Intangible assets
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			57,084	49,807	39,088
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	2	2
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	7,279	10,721
Before offset amounts | Pre-payments
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			2,857	2,815	1,970
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	26	0
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	68	845
Before offset amounts | Deferred foreign currency gains
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			33,858	61,616	87,878
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(323)	0
Credited/(charged) to equity (note 14)	237	(428)
Income statement charge (note 28)	(28,318)	(25,834)
Before offset amounts | Other
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			887	1,106	1,268
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	324	(1)
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	105	(163)
Before offset amounts | Deferred tax liabilities
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			137,514	148,960	157,807
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	2	1
Credited/(charged) to equity (note 14)	237	(428)
Income statement charge (note 28)	(11,681)	(8,418)
Before offset amounts | Revenue received in advance
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			15,730	14,304	13,166
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	0	0
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	(1,426)	(1,138)
Before offset amounts | Capital allowances for tax purposes
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			30,556	22,107	25,609
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(54)	(24)
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	(8,503)	3,478
Before offset amounts | Provisions, accruals and lease straight-lining
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			33,910	28,731	25,617
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(393)	(381)
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	(5,572)	(3,495)
Before offset amounts | Assessable losses
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			5,892	10,736	1,043
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(131)	(485)
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	4,713	(10,178)
Before offset amounts | Share-based payments
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			8,187	0	487
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	0	0
Credited/(charged) to equity (note 14)	(5,833)	487
Income statement charge (note 28)	(2,354)	0
Before offset amounts | Other
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			1,298	1,145	909
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(2)	11
Credited/(charged) to equity (note 14)	0	0
Income statement charge (note 28)	(155)	(225)
Before offset amounts | Deferred tax assets
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets			95,573	77,023	R 66,831
The gross movement in net deferred tax assets/(liabilities) is as follows:
Foreign currency translation differences	(580)	(879)
Credited/(charged) to equity (note 14)	(5,833)	487
Income statement charge (note 28)	R (13,297)	R (11,558)
Offset amount
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities			(54,856)	(48,893)
Deferred tax assets			R (54,856)	R (48,893)

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Deferred tax - Narrative (Details) - ZAR (R) R in Millions	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	28.00%	28.00%	28.00%
Deductible temporary differences for which no deferred tax asset is recognized	R 61.3	R 34.3
Unused losses for which no deferred asset recognized	R 237.3	R 133.8
South African Revenue Department
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	28.00%	28.00%
Australia Taxation Office
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	30.00%	30.00%
Department of Federal Revenue of Brazil
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	34.00%	34.00%
Argentia Nationala de Administrare Fiscala
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	16.00%	16.00%
Tax Office of the Revenue Department, Thailand
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	20.00%	20.00%
Uganda Revenue Authority
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	30.00%	30.00%
Government Website, United Arab Emirates
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	0.00%	0.00%
HM Revenue and Customs
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	19.00%	19.00%
Internal Revenue Service
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Applicable tax rate	27.00%	34.00%
Assessable losses | Europe segment
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax asset raised	R 0.6	R 5.3

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Deferred tax - Movement in deferred tax assets and liabilities(Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	R 82,658	R 100,067
Charged/ (credited) to the income statement (note 28)	24,978	19,976
Charged/ (credited) directly to equity (note 14)	5,596	(59)
Foreign currency translation differences	578	878
Deferred tax assets	(40,717)	(28,130)
Deferred tax liability (asset)	41,941	71,937	R 90,976
Before offset amounts
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(24,978)	(19,976)
Charged/ (credited) directly to equity (note 14)	(5,596)	59
Foreign currency translation differences	578	878
Deferred tax liability (asset)	41,941	71,937	90,976
Before offset amounts | Capital allowances for tax purposes
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	42,828	33,616	27,603
Charged/ (credited) to the income statement (note 28)	9,185	6,013
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	27	0
Before offset amounts | Intangible assets
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	57,084	49,807	39,088
Charged/ (credited) to the income statement (note 28)	7,279	10,721
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	(2)	(2)
Before offset amounts | Pre-payments
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	2,857	2,815	1,970
Charged/ (credited) to the income statement (note 28)	68	845
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	(26)	0
Before offset amounts | Deferred foreign currency gains
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	33,858	61,616	87,878
Charged/ (credited) to the income statement (note 28)	(28,318)	(25,834)
Charged/ (credited) directly to equity (note 14)	237	(428)
Foreign currency translation differences	323	0
Before offset amounts | Other
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	887	1,106	1,268
Charged/ (credited) to the income statement (note 28)	105	(163)
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	(324)	1
Before offset amounts | Deferred tax liabilities
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liabilities	137,514	148,960	157,807
Charged/ (credited) to the income statement (note 28)	(11,681)	(8,418)
Charged/ (credited) directly to equity (note 14)	237	(428)
Foreign currency translation differences	(2)	(1)
Before offset amounts | Revenue received in advance
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(1,426)	(1,138)
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	0	0
Deferred tax assets	(15,730)	(14,304)	(13,166)
Before offset amounts | Capital allowances for tax purposes
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(8,503)	3,478
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	54	24
Deferred tax assets	(30,556)	(22,107)	(25,609)
Before offset amounts | Provisions, accruals and lease straight-lining
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(5,572)	(3,495)
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	393	381
Deferred tax assets	(33,910)	(28,731)	(25,617)
Before offset amounts | Assessable losses
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	4,713	(10,178)
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	131	485
Deferred tax assets	(5,892)	(10,736)	(1,043)
Before offset amounts | Share-based payments
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(2,354)	0
Charged/ (credited) directly to equity (note 14)	(5,833)	487
Foreign currency translation differences	0	0
Deferred tax assets	(8,187)	0	(487)
Before offset amounts | Other
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(155)	(225)
Charged/ (credited) directly to equity (note 14)	0	0
Foreign currency translation differences	2	(11)
Deferred tax assets	(1,298)	(1,145)	(909)
Before offset amounts | Deferred tax assets
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Charged/ (credited) to the income statement (note 28)	(13,297)	(11,558)
Charged/ (credited) directly to equity (note 14)	(5,833)	487
Foreign currency translation differences	580	879
Deferred tax assets	R (95,573)	R (77,023)	R (66,831)

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Provisions (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Reconciliation of changes in other provisions [abstract]
Beginning of the year	R 30,611
End of the year	22,415	R 30,611
Total provision	30,611	30,611	R 22,415	R 30,611
Non-current portion			(2,132)	(1,833)
Current portion			20,283	28,778
Product warranties
Reconciliation of changes in other provisions [abstract]
Beginning of the year	11,538	16,564
Income statement charge (reversal)	5,772	1,797
Utilized	(3,452)	(5,476)
Foreign currency translation differences	(73)	(1,347)
End of the year	13,785	11,538
Total provision	11,538	16,564	13,785	11,538
Non-current portion			(516)	0
Current portion			13,269	11,538
Maintenance provision
Reconciliation of changes in other provisions [abstract]
Beginning of the year	3,511	4,413
Income statement charge (reversal)	13,695	15,182
Utilized	(12,604)	(15,944)
Foreign currency translation differences	(173)	(140)
End of the year	4,429	3,511
Total provision	3,511	4,413	4,429	3,511
Non-current portion			0	(409)
Current portion			4,429	3,102
Decommissioning provision
Reconciliation of changes in other provisions [abstract]
Beginning of the year	1,424	1,812
Finance costs	213	0
Foreign currency translation differences	(21)	(388)
End of the year	1,616	1,424
Total provision	1,424	1,812	1,616	1,424
Non-current portion			(1,616)	(1,424)
Current portion			0	0
Restructuring provision
Reconciliation of changes in other provisions [abstract]
Beginning of the year	11,465	523
Income statement charge (reversal)	(741)	14,561
Utilized	(10,653)	(2,834)
Foreign currency translation differences	(47)	(785)
End of the year	24	11,465
Total provision	11,465	523	24	11,465
Non-current portion			0	0
Current portion			24	11,465
Other provisions
Reconciliation of changes in other provisions [abstract]
Beginning of the year	2,673	11,261
Income statement charge (reversal)	224	281
Utilized	0	(8,600)
Foreign currency translation differences	(336)	(269)
End of the year	2,561	2,673
Total provision	R 2,673	R 11,261	2,561	2,673
Non-current portion			0	0
Current portion			R 2,561	R 2,673

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Provisions - Narrative (Details) - ZAR (R) R in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of other provisions [line items]
Remaining provision	R 30,611	R 22,415	R 30,611
Restructuring provision
Disclosure of other provisions [line items]
Expected restructuring costs incurred		10,653	2,834
Total cost of restructuring plans		(741)	14,561
Remaining provision	11,465	24	11,465	R 523
Restructuring provision | Europe and Middle East and Australasia segments
Disclosure of other provisions [line items]
Expected restructuring costs incurred	2,700
Total cost of restructuring plans	15,000
Remaining provision	11,500		11,500
Restructuring provision | Africa segment
Disclosure of other provisions [line items]
Expected restructuring costs incurred		100
Reversal of remaining provision balance		400
Other provisions
Disclosure of other provisions [line items]
Expected restructuring costs incurred		0	8,600
Total cost of restructuring plans		224	281
Remaining provision	R 2,673	R 2,561	R 2,673	R 11,261

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Share-based payment liability - Movement in share-based payment liability (Details) - ZAR (R) R in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Movement in share-based payment liability for the year
Opening balance		R 0	R 0
Share-based payment expense recognized during the year	R 1,400	1,352	1,064	R (2,018)
Payment made in settlement of the share-based payment liability		(1,353)	(1,064)
Foreign currency translation differences		1	0
Closing balance		R 0	R 0	R 0

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Share-based payment liability - Narrative (Details) - ZAR (R) R in Thousands		1 Months Ended		12 Months Ended
	May 31, 2014	Sep. 30, 2017	Jun. 30, 2014	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Disclosure of terms and conditions of share-based payment arrangement [line items]
Share-based payment expense recognized during the year		R 1,400		R 1,352	R 1,064	R (2,018)
Non-controlling interest				(1,517,181)	R (1,442,931)	R (1,919,808)	R (1,864,572)
Transfers to other reserves within equity
Disclosure of terms and conditions of share-based payment arrangement [line items]
Non-controlling interest				R 1,500
MiX Brazil
Disclosure of terms and conditions of share-based payment arrangement [line items]
Equity interest acquired		5.00%
Consideration transferred in acquisition of equity interest		R 1,400
MiX Brazil
Disclosure of terms and conditions of share-based payment arrangement [line items]
Equity interests held by non-controlling interests	0.0025%		5.00%	5.00%			5.00%	0.0025%
Equity interest held		100.00%
MiX Brazil | Transfers to other reserves within equity
Disclosure of terms and conditions of share-based payment arrangement [line items]
Non-controlling interest		R 1,500
MiX Telematics Fleet Support Services Proprietary Limited
Disclosure of terms and conditions of share-based payment arrangement [line items]
Equity interest held				100.00%	100.00%
MiX Telematics Fleet Support Services Proprietary Limited | MiX Telematics Fleet Support Trust
Disclosure of terms and conditions of share-based payment arrangement [line items]
Equity interest held					51.00%

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Share-based payment liability - Key assumptions used in the discounted cash flow analysis (Details) - Brazil segment	Mar. 31, 2017
Disclosure of nature and extent of risks arising from financial instruments [line items]
Pre-tax discount rate applied to the cash flow projections	21.00%
Growth rate used to extrapolate cash flow beyond the budget period (%)	4.50%

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Revenue (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Revenue [abstract]
Subscription revenue	R 1,434,615	R 1,239,914	R 1,158,229
Hardware sales	227,752	222,315	221,306
Driver training, installation and other	50,115	77,829	85,486
Total revenue	R 1,712,482	R 1,540,058	R 1,465,021

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Other income/(expenses) - net (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Analysis of income and expense [abstract]
Insurance reimbursement relating to operating costs	R 2,500	R 0	R 0
Profit/(loss) on disposal of property, plant and equipment and intangible assets (note 31.2)	1,264	(262)	(208)
Other	482	688	1,452
Total other income (expense)	R 4,246	R 426	R 1,244

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Operating profit (Details) R in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2017 ZAR (R)	Mar. 31, 2018 ZAR (R) employee	Mar. 31, 2017 ZAR (R) employee	Mar. 31, 2016 ZAR (R) employee
Analysis of income and expense [abstract]
Amortization (notes 7 and 31.2)		R 63,926	R 44,734	R 47,586
Depreciation (notes 6 and 31.2)		151,945	98,508	75,037
Impairment of intangible assets (notes 5, 7 and 31.2)		2,687	3,166	2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 6 and 31.2)		9	(791)	1,905
Operating lease charges — premises, vehicles and equipment		24,622	24,690	23,536
Restructuring costs (note 19)		(741)	0	(333)
Restructuring costs (note 19)		0	14,561	0
Write-down of inventory to net realizable value (notes 9 and 31.2)		9,294	9,967	5,317
Research expenditure		1,624	2,398	1,540
Transaction costs arising from investigating strategic alternatives		0	0	5,037
Professional fees		32,689	22,358	24,940
Staff costs		601,656	587,474	573,165
– Salaries, wages and other costs		564,207	554,793	540,227
– Pension costs (note 17)		27,097	29,370	27,118
– Equity-settled share-based payments (notes 14 and 31.2)		9,000	2,247	7,838
– Cash-settled share-based payments (note 20)	R 1,400	R 1,352	R 1,064	R (2,018)
Number of employees at the end of the year | employee		1,054	1,056	1,089

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Finance income (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Analysis of income and expense [abstract]
Current accounts and short-term bank deposits	R 8,508	R 14,052	R 7,292
Finance lease receivable income	3	20	267
Other	440	520	567
Finance income, gross	8,951	14,592	8,126
Net foreign exchange gains	0	1,476	144,038
Finance income	R 8,951	R 16,068	R 152,164

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Finance costs (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Analysis of income and expense [abstract]
Overdraft	R (2,324)	R (2,259)	R (1,490)
Impact of discounting related to the fiscal 2017 share repurchase transaction (note 13)	0	(3,222)	0
Other long-term loans	0	(50)	(186)
Decommissioning provision (note 19)	(213)	0	0
Other	(1,410)	(146)	(161)
Finance costs, gross	(3,947)	(5,677)	(1,837)
Net foreign exchange losses	(5,073)	0	0
Finance costs	R (9,020)	R (5,677)	R (1,837)

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Auditors' remuneration (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Auditor's Remuneration [Line Items]
Auditors’ remuneration	R 12,076	R 8,821	R 7,426
PriceWaterhouseCoopers, Inc.
Auditor's Remuneration [Line Items]
Auditors’ remuneration	R 2,200

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Directors' and executive committee emoluments (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Salaries and allowances	R 564,207	R 554,793	R 540,227
Non-executive directors and executive committee
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	3,911	3,537	3,261
Salaries and allowances	19,221	18,846	19,798
Other benefits	490	482	2,521
Retirement fund	634	873	944
Performance bonuses	18,522	9,823	12,509
Emoluments	42,778	33,561	39,033
Non-executive directors
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	3,645	3,442	3,167
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	3,645	3,442	3,167
Value added tax	266	95	94
Non-executive directors | R Bruyns
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	773	794	910
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	773	794	910
Non-executive directors | C Ewing
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	348	570	538
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	348	570	538
Non-executive directors | R Frew
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	746	566	387
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	746	566	387
Non-executive directors | E Banda
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	486	470	442
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	486	470	442
Non-executive directors | A Welton
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	614	650	604
Salaries and allowances	0	0	0
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	0	0	0
Emoluments	614	650	604
Non-executive directors | M Lamberti
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees		115	286
Salaries and allowances		0	0
Other benefits		0	0
Retirement fund		0	0
Performance bonuses		0	0
Emoluments		115	286
Non-executive directors | I Jacobs
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	386	277
Salaries and allowances	0	0
Other benefits	0	0
Retirement fund	0	0
Performance bonuses	0	0
Emoluments	386	277
Non-executive directors | F Roji-Maplanka
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	292
Salaries and allowances	0
Other benefits	0
Retirement fund	0
Performance bonuses	0
Emoluments	292
Non-executive directors | G Nakos
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees		0
Salaries and allowances		0
Other benefits		0
Retirement fund		0
Performance bonuses		0
Emoluments		0
Executive committee | S Joselowitz
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	0	0	0
Salaries and allowances	6,841	7,219	7,006
Other benefits	0	0	0
Retirement fund	0	0	0
Performance bonuses	6,737	3,404	3,806
Emoluments	13,578	10,623	10,812
Executive committee | R Botha
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees			0
Salaries and allowances			390
Other benefits			1,979
Retirement fund			15
Performance bonuses			728
Emoluments			3,112
Executive committee | M Pydigadu
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees		0	0
Salaries and allowances		2,101	2,304
Other benefits		98	109
Retirement fund		80	87
Performance bonuses		1,206	1,299
Emoluments		3,485	3,799
Executive committee | H Scott
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees			0
Salaries and allowances			586
Other benefits			100
Retirement fund			0
Performance bonuses			1,054
Emoluments			1,740
Executive committee | C Tasker
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	0	0	0
Salaries and allowances	5,393	3,612	3,288
Other benefits	0	178	45
Retirement fund	0	256	264
Performance bonuses	4,133	1,511	1,691
Emoluments	9,526	5,557	5,288
Executive committee | B Horan
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees		0	0
Salaries and allowances		1,215	2,292
Other benefits		63	118
Retirement fund		47	90
Performance bonuses		1,456	1,365
Emoluments		2,781	3,865
Executive committee | P Dell
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	0	0
Salaries and allowances	1,844	275
Other benefits	100	14
Retirement fund	71	11
Performance bonuses	1,750	0
Emoluments	3,765	300
Executive committee | G Pretorius
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	0	0	0
Salaries and allowances	2,573	2,096	1,906
Other benefits	268	129	118
Retirement fund	433	335	308
Performance bonuses	3,299	1,147	1,120
Emoluments	6,573	3,707	3,452
Executive committee | C Lewis
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [line items]
Directors' fees	0	0	0
Salaries and allowances	2,570	2,328	2,026
Other benefits	122	0	52
Retirement fund	130	144	180
Performance bonuses	2,603	1,099	1,446
Emoluments	R 5,425	R 3,571	R 3,704

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Taxation - Major components of taxation expense (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Abstract]
Normal taxation	R (58,668)	R (46,788)	R (57,545)
– Current	(55,385)	(43,434)	(53,626)
– Over-provision prior years	325	589	175
– Foreign tax paid	(2,880)	(3,711)	(3,768)
– Withholding tax	(728)	(232)	(326)
Deferred taxation (note 18)	24,978	19,976	(49,375)
– Current year	25,658	20,748	(49,365)
– Under-provision prior years	(680)	(772)	(10)
Tax expense (income), continuing operations	R (33,690)	R (26,812)	R (106,920)

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Taxation - Exchange differences on foreign exchange (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Abstract]
Exchange differences on translating foreign operations, before tax	R (60,331)	R (80,870)	R 90,665
Exchange differences on translating foreign operations, tax impact	(237)	(59)	(2,466)
Exchange differences on translating foreign operations	(60,568)	(80,929)	88,199
Taxation recognized in other comprehensive income, before tax	(60,331)	(80,870)	90,665
Taxation recognized in other comprehensive income, tax impact	(237)	(59)	(2,466)
Other comprehensive (loss)/income for the year, net of tax	R (60,568)	R (80,929)	R 88,199

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Taxation - Reconciliation of profit multiplied by applicable tax rate (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Income Taxes [Abstract]
Applicable tax rate	28.00%	28.00%	28.00%
Profit before taxation	R 214,883	R 148,253	R 289,411
Tax at the applicable tax rate of 28%	60,167	41,511	81,035
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount1	(26,477)	(14,699)	25,885
– Income not subject to tax	(552)	0	(398)
– Expenses not deductible for tax purposes	6,460	7,409	6,869
– (Non-taxable)/non-deductible foreign exchange movements	(28,184)	(15,884)	9,376
– Withholding tax	728	232	326
– Utilization of prior year assessed losses	(6,452)	(1,461)	0
– Foreign tax paid	2,880	3,711	3,768
– Tax rate differential	(2,546)	1,281	(6,551)
– Deferred tax not recognized on assessed losses	517	4,049	12,833
– Deferred tax asset previously not recognized	(1,122)	(5,342)	(531)
– Under/(over)-provision prior years	355	183	(165)
– Tax incentives in addition to incurred cost	(3,258)	(10,387)	0
– Share-based payment expense previously not deductible	(1,049)	0	0
– Imputation of controlled foreign company income	2,365	1,453	358
– Transfer pricing imputation	3,381	57	0
Tax expense	R 33,690	R 26,812	R 106,920

XML

Taxation - Narrative (Details) - ZAR (R) R in Thousands	12 Months Ended			66 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2018
Tax incentives [Line Items]
Average effective tax rate	15.70%	18.10%	36.90%
Tax incentives in addition to incurred cost	R 3,258	R 10,387	R 0
Taxation	30,373	26,302		R 30,373
Section 11D Research and Development Incentives
Tax incentives [Line Items]
Tax incentives in addition to incurred cost	2,300			20,500
Tax incentives in addition to incurred cost, approved expenditures				17,700
Tax incentives in addition to incurred cost, uncertain tax position				2,800
Taxation	R 17,700	R 14,900		R 17,700

XML

Earnings per share - Basic earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Profit attributable to owners of the parent	R 181,134	R 121,458	R 182,989
Weighted average number of ordinary shares in issue (in shares)	561,088	629,626	775,139
Basic earnings per share (R) (in ZAR per share)	R 0.32	R 0.19	R 0.24

XML

Earnings per share - Narrative (Details) - shares	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Dilutive effect of share options on number of ordinary shares (in shares)	0	0

XML

Earnings per share - Diluted earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Profit attributable to owners of the parent	R 181,134	R 121,458	R 182,989
Weighted average number of ordinary shares in issue (in shares)	561,088	629,626	775,139
Adjusted for:
— potentially dilutive effect of share appreciation rights (in shares)	7,230	0	0
— potentially dilutive effect of share options (in shares)	5,663	2,193	8,275
Diluted weighted average number of ordinary shares in issue (in shares)	573,981	631,819	783,414
Diluted earnings (loss) per share (in ZAR per share)	R 0.32	R 0.19	R 0.23

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Earnings per share - Reconciliation of adjusted earnings (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Profit attributable to owners of the parent	R 181,134	R 121,458	R 182,989
Net foreign exchange losses/(gains)	5,073	(1,476)	(144,038)
Income tax effect on the above component	(29,403)	(15,307)	48,647
Adjusted earnings attributable to owners of the parent	R 156,804	R 104,675	R 87,598

XML

Earnings per share - Basic adjusted earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Adjusted earnings attributable to owners of the parent	R 156,804	R 104,675	R 87,598
Weighted average number of ordinary shares in issue (in shares)	561,088	629,626	775,139
Basic adjusted earnings per share (R) (in ZAR per share)	R 0.28	R 0.17	R 0.11

XML

Earnings per share - Diluted adjusted earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Adjusted earnings attributable to owners of the parent	R 156,804	R 104,675	R 87,598
Diluted weighted average number of ordinary shares in issue (in shares)	573,981	631,819	783,414
Diluted adjusted earnings per share (R) (in ZAR per share)	R 0.27	R 0.17	R 0.11

XML

Earnings per share - Reconciliation of headline earnings (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Profit attributable to owners of the parent	R 181,134	R 121,458	R 182,989
Profit/(loss) on disposal of property, plant and equipment and intangible assets (note 31.2)	(1,264)	262	208
Impairment of intangible assets (notes 5, 7 and 31.2)	2,687	3,166	2,871
Impairment/(reversal of impairment) of property, plant and equipment (notes 5, 6 and 31.2)	9	(791)	1,905
Non-controlling interest effects of adjustments	0	8	(244)
Income tax effect on the above components	(380)	(661)	2
Headline earnings attributable to owners of the parent	R 182,186	R 123,442	R 187,731

XML

Earnings per share - Basic headline earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Headline earnings attributable to owners of the parent	R 182,186	R 123,442	R 187,731
Weighted average number of ordinary shares in issue (in shares)	561,088	629,626	775,139
Basic headline earnings per share (R) (in ZAR per share)	R 0.32	R 0.20	R 0.24

XML

Earnings per share - Diluted headline earnings per share (Details) - ZAR (R) R / shares in Units, shares in Thousands, R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Earnings per share [abstract]
Headline earnings attributable to owners of the parent	R 182,186	R 123,442	R 187,731
Diluted weighted average number of ordinary shares in issue (in shares)	573,981	631,819	783,414
Diluted headline earnings per share (R) (in ZAR per share)	R 0.32	R 0.20	R 0.24

XML

Dividends - Dividends declared (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Statement of changes in equity [abstract]
Dividends declared	R 53,268	R 53,026	R 107,254

XML

Dividends - Narrative (Details) - ZAR (R) R / shares in Units, R in Millions	Feb. 26, 2018	Jan. 30, 2018	Nov. 27, 2017	Oct. 31, 2017	Aug. 28, 2017	Aug. 01, 2017	Jun. 19, 2017	May 23, 2017	Feb. 27, 2017	Feb. 02, 2017	Nov. 28, 2016	Nov. 03, 2016	Aug. 29, 2016	Aug. 04, 2016	Jun. 20, 2016	May 24, 2016	Feb. 29, 2016	Feb. 04, 2016	Nov. 30, 2015	Nov. 05, 2015	Sep. 21, 2015	Aug. 25, 2015
Statement of changes in equity [abstract]
Dividends declared		R 14.0		R 14.0		R 14.0		R 11.3		R 11.2		R 11.3		R 15.3		R 15.2		R 15.1		R 15.3
Dividends declared, relating to prior periods																						R 61.5
Dividends declared, relating to current period																						R 15.4
Dividends paid	R 14.0		R 14.0		R 14.0		R 11.3		R 11.2		R 11.3		R 15.3		R 15.2		R 15.1		R 15.3
Dividends paid, relating to prior periods																					R 61.5
Dividends paid, relating to current period																					R 15.4
Shares in issue (in shares)		562,320,145		559,418,095		558,498,901		563,514,561		563,434,240		563,434,240		763,087,500		761,337,500		755,137,500		764,140,181		768,601,150
Treasury shares (in shares)		40,000,000		40,000,000		40,000,000		40,000,000		40,000,000		40,000,000		40,000,000		40,000,000		40,000,000		30,334,819		24,573,850
Dividends declared (in dollars per share)		R 0.025		R 0.025		R 0.025		R 0.02		R 0.02		R 0.02		R 0.02		R 0.02		R 0.02		R 0.02
Dividends declared, related to prior years (in ZAR per share)																						R 0.08
Dividends declared, related to current year (in ZAR per share)																						R 0.02

XML

Cash flow statement (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Cash Flow Statement [Abstract]
Profit before taxation	R 214,883	R 148,253	R 289,411
Adjustments	279,727	197,023	33,779
(Profit)/loss on disposal of property, plant and equipment and intangible assets (note 22)	(1,264)	262	208
Depreciation	151,945	98,508	75,037
Amortization	63,926	44,734	47,586
Impairment of intangible assets	2,687	3,166	2,871
Impairment/(reversal of impairment) of property, plant and equipment	9	(791)	1,905
Finance income	(8,951)	(14,592)	(8,126)
Finance costs	3,947	5,677	1,837
Equity-settled share-based payments	9,000	2,247	7,838
Cash-settled share-based payments	1,352	0	(2,018)
Foreign exchange losses/(gains)	5,073	(1,476)	(144,038)
Impairment of receivables	24,143	17,713	14,735
Write-down of inventory to net realizable value	9,294	9,967	5,317
Increase in provisions	18,950	31,821	29,731
Lease straight-line adjustment	(384)	(213)	(174)
Finance lease fair value adjustment	0	0	1,070
Cash generated from operations before working capital changes	494,610	345,276	323,190
Changes in working capital	(81,585)	31,839	(29,382)
(Increase)/decrease in inventories	(39,858)	28,073	(30,872)
(Increase)/decrease in trade and other receivables	(49,601)	17,404	(46,297)
Decrease in finance lease receivable	165	1,009	4,655
Increase in trade and other payables	8,519	21,993	46,712
Decrease in provisions	(26,709)	(32,854)	(24,669)
Foreign currency translation differences on working capital	25,899	(3,786)	21,089
Cash generated from operations	R 413,025	R 377,115	R 293,808

XML

Related party transactions - Directors' and executive committee members' interest (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	R 846,405	R 854,345	R 1,320,955
Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	30,504	28,994
Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	81,841	67,545
Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	72,924	87,205
R Bruyns | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
R Bruyns | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	3,697	3,697
R Bruyns | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Ewing | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Ewing | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Ewing | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
R Frew | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
R Frew | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	63,848	63,848
R Frew | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	70,261	70,261
A Welton | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
A Welton | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
A Welton | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	235	235
E Banda | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
E Banda | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
E Banda | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
I Jacobs | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	241	191
I Jacobs | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	14,296	0
I Jacobs | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	14,281
F Roji-Maplanka | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
F Roji-Maplanka | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
F Roji-Maplanka | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
S Joselowitz | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	26,342	26,342
S Joselowitz | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
S Joselowitz | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Tasker | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	2,057	900
C Tasker | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Tasker | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	2,428	2,428
P Dell | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	1	1
P Dell | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
P Dell | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
G Pretorius | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	338	35
G Pretorius | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
G Pretorius | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Lewis | Direct
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	1,525	1,525
C Lewis | Indirect
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	0	0
C Lewis | Associate
Disclosure of transactions between related parties [line items]
Beneficial interests in stated capital	R 0	R 0

XML

Related party transactions - Transactions with related parties and balances outstanding (Details) - ZAR (R)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of transactions between related parties [line items]
Sales of goods and services	R 0	R 22,263,000	R 78,564,000
Purchases of goods and services	8,277,000	11,206,000	35,595,000
Corporate and social investment	0	0	257,000
Year-end balance of receivables (included in trade and other receivables – note 10)	0	0	11,144,000
Year-end balance of payables (included in trade and other payables – note 16)	0	0	3,209,000
Provisions held against related party receivables			1,000,000
Imperial Group Limited | Key management personnel of entity or parent
Disclosure of transactions between related parties [line items]
Sales of goods and services	0	22,263,000	78,564,000
Purchases of goods and services	0	5,929,000	28,447,000
Year-end balance of receivables (included in trade and other receivables – note 10)	0	0	11,144,000
Year-end balance of payables (included in trade and other payables – note 16)	0	0	842,000
TPF Investments Proprietary Limited | Key management personnel of entity or parent
Disclosure of transactions between related parties [line items]
Purchases of goods and services	8,277,000	5,277,000	7,148,000
Year-end balance of payables (included in trade and other payables – note 16)	0	0	0
Heartbeat centre for community development | Key management personnel of entity or parent
Disclosure of transactions between related parties [line items]
Corporate and social investment	0	0	257,000
C Tasker | Key management personnel of entity or parent [member]
Disclosure of transactions between related parties [line items]
Year-end balance of payables (included in trade and other payables – note 16)	R 0	R 0	R 2,367,000

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Contingencies (Details) - ZAR (R) R in Millions	Mar. 31, 2018	Mar. 31, 2017
Contract termination | Top of range
Disclosure of contingent liabilities [line items]
Estimated of potential liability under arrangement	R 43.7	R 48.4

XML

Commitments - Capital commitments (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of contingent liabilities [line items]
Capital commitments	R 56,406	R 58,036	R 63,670
Contracted capital commitments	28,647	74,800	55,705
Property, plant and equipment
Disclosure of contingent liabilities [line items]
Capital commitments	0	0	0
Contracted capital commitments	11,601	50,074	22,471
Intangible assets
Disclosure of contingent liabilities [line items]
Capital commitments	56,406	58,036	63,670
Contracted capital commitments	R 17,046	R 24,726	R 33,234

XML

Commitments - Future minimum lease payments under non-cancellable operating leases (Details) - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Land and buildings
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	R 23,186	R 35,555	R 29,663
Land and buildings | Not later than one year
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	12,324	15,201	19,896
Land and buildings | One to five years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	10,862	20,354	9,767
Office equipment
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	1,390	1,348	1,906
Office equipment | Not later than one year
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	716	853	874
Office equipment | One to five years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	674	495	1,032
Vehicles
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	3,202	3,133	1,003
Vehicles | Not later than one year
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	1,585	1,507	836
Vehicles | One to five years
Disclosure of maturity analysis of operating lease payments [line items]
Non-cancellable operating leases	R 1,617	R 1,626	R 167
Bottom of range
Disclosure of maturity analysis of operating lease payments [line items]
Operating lease term	1 year
Top of range
Disclosure of maturity analysis of operating lease payments [line items]
Operating lease term	5 years
Top of range | Office equipment and vehicles
Disclosure of maturity analysis of operating lease payments [line items]
Annual escalation percentage	10.00%

XML

Events after the reporting period - Narrative (Details) - R / shares	Jun. 04, 2018	May 08, 2018
Disclosure of events after reporting period [Abstract]
Dividends declared (in ZAR per share)		R 0.03
Dividends paid (in ZAR per share)	R 0.03

XML

Financial risk sensitivity analysis - Interest rate sensitivity (Details) - Interest rate risk - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
USD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	0.10%
Reasonably possible increase in market risk variable, impact on profit or loss	R 1	R 143
Reasonably possible decrease in market risk variable, impact on profit or loss	R (1)	(143)
ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	1.00%
Reasonably possible increase in market risk variable, impact on profit or loss	R 1,811	1,000
Reasonably possible decrease in market risk variable, impact on profit or loss	R (1,811)	R (1,000)

XML

Financial risk sensitivity analysis - Foreign currency sensitivity (Details) - Currency risk - ZAR (R) R in Thousands	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%
EUR | GBP
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 710	R 152
Result of strengthening in functional currency	R (710)	R (152)
EUR | ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 368	R 422
Result of strengthening in functional currency	R (368)	R (422)
EUR | USD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 231	R 29
Result of strengthening in functional currency	R (231)	R (29)
EUR | AUD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent		5.00%
Result of weakening in functional currency		R (3)
Result of strengthening in functional currency		R 3
USD | GBP
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R (149)	R (19)
Result of strengthening in functional currency	R 149	R 19
USD | ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 814	R 8,028
Result of strengthening in functional currency	R (814)	R (8,028)
USD | AUD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R (33)	R (73)
Result of strengthening in functional currency	R 33	R 73
USD | BRL
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R (33)	R (124)
Result of strengthening in functional currency	R 33	R 124
GBP | ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R (78)	R (25)
Result of strengthening in functional currency	R 78	R 25
ZAR | GBP
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R (22)	R (9)
Result of strengthening in functional currency	R 22	R 9
ZAR | USD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 2	R (41)
Result of strengthening in functional currency	R (2)	R 41
ZAR | AUD
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent		5.00%
Result of weakening in functional currency		R (43)
Result of strengthening in functional currency		R 43
ZAR | BRL
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent		5.00%
Result of weakening in functional currency		R (2)
Result of strengthening in functional currency		R 2
AUD | ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent	5.00%	5.00%
Result of weakening in functional currency	R 598	R 320
Result of strengthening in functional currency	R (598)	R (320)
NGN | ZAR
Disclosure of nature and extent of risks arising from financial instruments [line items]
Reasonably possible change in market risk variable, percent		5.00%
Result of weakening in functional currency		R 228
Result of strengthening in functional currency		R (228)

XML

Liquidity risk - Cash resources held (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2015
Financial Instruments [Abstract]
Cash and cash equivalents, net of overdrafts (note 12)	R 290,538	R 356,333	R 860,762	R 927,415

XML

Liquidity risk - Financial liability maturity analysis (Details) - ZAR (R) R in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Bank overdraft	R 17,720	R 19,449	R 16,374
Liquidity risk | Payable within 1 month or on demand
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Trade payables	58,085	42,720
Accruals and other payables	92,318	92,353
Bank overdraft	17,720	19,449
Total	168,123	154,522
Liquidity risk | Between 1 month and 1 year
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Trade payables	40,009	37,172
Accruals and other payables	68,646	47,610
Bank overdraft	0	0
Total	108,655	84,782
Liquidity risk | Between 1 year and 2 years
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Trade payables	0	0
Accruals and other payables	0	0
Bank overdraft	0	0
Total	0	0
Liquidity risk | Between 2 years and 5 years
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Trade payables	0	0
Accruals and other payables	0	0
Bank overdraft	0	0
Total	0	0
Liquidity risk | More than 5 years
Disclosure of maturity analysis for non-derivative financial liabilities [line items]
Trade payables	0	0
Accruals and other payables	0	0
Bank overdraft	0	0
Total	R 0	R 0

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Exchange rates (Details)	12 Months Ended
	Mar. 31, 2018 R / $	Mar. 31, 2018 R / $ R / £	Mar. 31, 2017 R / $	Mar. 31, 2017 R / $ R / £	Mar. 31, 2016 R / $	Mar. 31, 2016 R / $ R / £	Mar. 31, 2018 R / £	Mar. 31, 2017 R / £	Mar. 31, 2016 R / £
Effects Of Changes In Foreign Exchange Rates [Abstract]
Closing foreign exchange rate (in ZAR)	11.83	11.83	13.41	13.41	14.83	14.83	16.60	16.75	21.31
Average foreign exchange rate (in ZAR)	12.99	17.21	14.06	18.42	13.78	20.63

XML

List of Group companies (Details)	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
MiX Telematics Investments Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Africa Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics International Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Europe Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics North America Incorporated
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Serviços De Telemetria E Rastreamento De Veículos Do Brazil Limitada
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	95.00%	95.00%
MiX Telematics Technology Holdings Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	0.00%	100.00%
MiX Telematics Middle East FZE
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Enterprise SA Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	85.10%	85.10%
Proportion of ownership interests held by non-controlling interests	14.90%
MiX Telematics Fleet Support Services Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics East Africa Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	99.90%	99.90%
MiX Telematics Romania SRL
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	99.00%	99.00%
Proportion of ownership interests held by non-controlling interests		1.00%
MiX Telematics (Thailand) Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Australasia Proprietary Limited
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	100.00%	100.00%
MiX Telematics Servicos De Tlematria E Rastremento De Veiculos Do Brazil Limitada, Indirect Interest
Disclosure of information about consolidated structured entities [line items]
Legal % ownership	5.00%	0.00%