Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 36

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 36
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 and processing of our customers’ proprietary data, including potentially personal or identifying information.
We may experience data security breaches or unauthorized disclosures of personal, confidential or proprietary information. Any inability
on our part to protect the information security of our SaaS platform 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 solutions. Further, unauthorized access to, or security breaches of, our solutions could result in
the loss, compromise or corruption of data, loss of business, severe reputational damage adversely affecting customer or investor confidence,
regulatory investigations and orders, litigation, indemnity obligations, damages for contract breach, penalties for violation of applicable
laws or regulations, significant costs for remediation and other liabilities. For example, under the GDPR, substantial penalties for failure
to comply with the regulations can be imposed, including a fine of up to €20 million or up to 4% of the annual worldwide turnover,
whichever is greater. We have incurred and expect to incur significant expenses to prevent security breaches and achieve compliance with
all applicable laws and regulations including the GDPR, such as deploying additional employees and protection technologies, training employees,
and engaging third-party experts and consultants. Our errors and omissions insurance coverage mitigating certain security and privacy
damages and claim expenses may not be sufficient to compensate for all liabilities we may incur.

In addition, our and our third-party
vendors’ systems, operations and information technology systems are vulnerable to damage or interruption from human error, physical
break- ins, unauthorized access, computer hackers, computer viruses, worms, malicious applications, distributed denial of service attacks,
spurious spam attacks, intentional acts of vandalism and similar events. The availability and use of AI-enabled technologies also increase
the sophistication and threat posed to information technology systems. We cannot guarantee 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 physical or electronic break-in or other security breach
or compromise of the information handled by us or our service providers may jeopardize the security or integrity of information in our
computer systems and networks or those of our customers and cause significant interruptions in our and our customers’ operations.
Although we have developed systems and processes that are designed to protect customer information and prevent data loss and other security
breaches, including systems and processes