Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 96

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 96
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 periods.

Free Cash Flow or Adjusted Free
Cash Flow (a non-IFRS measure)

In addition to our results determined
in accordance with IFRS, we believe Free Cash Flow or Adjusted Free Cash Flow, which are non-IFRS measures, are useful in evaluating our
operating performance. Free cash flow is a non-IFRS financial measure that we calculate as net cash generated from operating activities
less purchases of property, plant and equipment. Adjusted Free Cash Flow is a non-IFRS financial measure that adjusts Free Cash Flow to
exclude the effect of the fixed deposits with maturity dates exceeding three months that were classified under trade and other receivables.

We believe that Free Cash Flow
and Adjusted Free Cash Flow are useful indicators of liquidity and the ability of the Group to turn revenues into Free Cash Flow, respectively,
that provide information to management and investors about the amount of cash generated from our operations that, after the investments
in property and equipment and capitalized internal-use software, can be used for strategic initiatives, including investing in our business
and strengthening our financial position.

However, non-IFRS financial information
is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation
or as a substitute for financial information presented in accordance with IFRS. In particular, Free Cash Flow does not reflect any restrictions
on the transfer of cash and cash equivalents within the Group or any requirement to repay the Group’s borrowings and does not take
into account cash flows that are available from disposals or the issue of shares.

Management therefore takes such
factors into account in addition to Free Cash Flow when determining the resources available for acquisitions and for distribution to shareholders.
Investors are encouraged to review the related IFRS financial measure and the reconciliation of these non-IFRS financial measures to their
most directly comparable IFRS financial measures, and not to rely on any single financial measure to evaluate our business.

                                                                 Year ended February 28/29                                                                               
                                                                 2025                                                                                                    
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                 (U. S.$                                                                                                 
  Net cash generated from operating activities                                                  103,934       1,933,295       955,040      1,126,663       102      (15  
  Less: purchase of property, plant and equipment                                               (54,963      (1,022,371