Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 111

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 4A
Chunk 111
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 deposits, net cash generated from operating activities for the financial year ended February 28, 2025 were
ZAR 1,933.3 million, primarily driven by strong subscription revenue growth and improved earnings, partially offset by working capital
utilization to support business growth and higher financial costs related to term loans and bank overdrafts.

Investing Activities

Net cash utilized by investing activities increased ZAR 145.1 million,
or 16%, for the financial year ended February 28, 2025 compared to the prior period. The increase was primarily driven by ZAR 242.6 million
increased in investment capitalized in-vehicle telematic devices and IoT devices held for future use for planned subscribers’ growth.
The increased, was partially offset by a decrease in capital expenditure due to the completion of construction of the South African Central
Office during the year.

Financing Activities

Net cash utilized by financing
activities decreased ZAR 149.7 million for the financial year ended February 28, 2025 compared to the prior period. This was primarily
due to payment of dividends of ZAR 612.4 million, partially offset by net proceeds from term loans of ZAR 266.2 million during the financial
year. Net cash utilized by financing activities was also impacted by an increase in cash outflow of ZAR 77.6 million relating to lease
liabilities repayment during the year.

Other Financial Assets

As at February 29, 2024, the Group
derecognized a derivative - call option - relating to its acquisition of Karooooo Logistics, following an agreement by shareholders
to cancel the call option. The call option was derecognized in the profit or loss. There were no such derivatives as at February 28, 2025.

Loan and Funding Facilities

Mortgage bond

A mortgage bond of ZAR 65 million is registered
in favor of First Rand Bank Limited over the remaining extent of Erf 160, Rosebank and Portion 6 of Erf 161, Rosebank, registered in the
name of Purple Rain Properties No 444 Proprietary Limited (“ Purple Rain”). Cartrack Proprietary Limited has signed a limited
suretyship of ZAR 60 million for the mortgage bond. Interest levied by First Rand Bank Limited is at a rate of prime less 1.15% and repayable
in equal monthly installments over a period of 60 months. The final repayment date is December 01,