Adjusted EBITDA is defined as profit for the period before income taxes, net interest income/(expense), depreciation of property, plant and equipment including capitalized customer in-vehicle devices, amortization of intangible assets including capitalized in-house development costs, share-based compensation costs, transaction costs arising from the acquisition of a business, restructuring costs, profits/(losses) on the disposal or impairments of assets or subsidiaries, certain non-recurring initial public offering costs, unrealized foreign exchange gains/(losses) and foreign exchange gains/(losses) related to the cash proceeds raised through the initial public offering (“IPO”).

A reconciliation of Adjusted EBITDA and Adjusted EBITDA margin for the three months ended December 31, 2013 and 2012 is provided in the financial tables that accompany this release.

Profit for the period: Profit for the period was R44.6 million ($4.3 million), compared to R29.4 million ($2.8 million) in the third quarter of fiscal year 2013. Profit for the period included a net foreign exchange gain of R24.4 million ($2.3 million). The net foreign exchange gain included R25.7 million ($2.5 million) relating to the IPO proceeds which are maintained in U.S dollars and are therefore sensitive to R:$ exchange rate movements. Earnings per diluted ordinary share were 6 South African cents, compared to 4 South African cents in the third quarter of fiscal year 2013. The effective tax rate for the quarter was 29.5% in comparison to 28.8% in the third quarter of fiscal 2013.

On a U.S. dollar basis, and using the December 31, 2013 exchange rate of 10.4675 rands per U.S. dollar, and at a ratio of 25 ordinary shares to one ADR, profit for the period was $4.3 million, or 13 U.S. cents per diluted American Depositary Receipt.

Statement of Financial Position and Cash Flow: At December 31, 2013, MiX Telematics had R792.6 million ($75.7 million) of cash and cash equivalents, an increase from R767.8 ($73.3 million) in the second quarter of fiscal year 2014. MiX Telematics generated R50.1 million ($4.8 million) in net cash from operating activities for the three months ended December 31, 2013 and invested R33.0 million ($3.1 million) in capital expenditures during the quarter, leading to free cash flow of R17.1 million ($1.6 million) for the third quarter of fiscal year 2014, compared with free cash flow of R44.5 million ($4.3 million) for the third quarter of fiscal year 2013. Free cash flow is determined as net cash generated from operating activities less capital expenditure per investing activities.

Business Outlook

MiX Telematics has translated U.S. dollar amounts in this Business Outlook paragraph from South African rand at the exchange rate of R11.1238 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of February 5, 2014.

Based on information as of today, February 6, 2014, the Company is issuing the following financial guidance for the full 2014 fiscal year:

• Revenue - R1,270 million to R1,300 million ($114.2 million to $116.9 million), which would represent revenue growth of 8% to 11% compared to fiscal year 2013.
• Subscription revenue - R841 million to R845 million ($75.6 million to $76.0 million), which would represent subscription revenue growth of 22% to 23% compared to fiscal year 2013.
• Adjusted EBITDA - R270 million to R280 million ($24.3 million to $25.2 million).

• Earnings per diluted ordinary share of 15 to 16 South African cents based on 770 million diluted ordinary shares in issue, an exchange rate of R11.1238 per $1 and based on an effective tax rate of 28% to 31%. At a ratio of 25 ordinary shares to one ADR, this equates to earnings per diluted ADR of 34 to 36 U.S. cents.

For the fourth quarter of fiscal year 2014 the Company expects subscription revenue to be in the range of R220 million to R224 million ($19.8 million to $20.1 million) which would represent subscription revenue growth of 18% to 20% compared to the fourth quarter of fiscal year 2013.

The key assumptions used in deriving the forecast are as follows:

• Growth in subscription revenue and vehicles under subscription are based on expected growth rates related to market conditions and takes into account growth rates achieved previously.
• Costs have been increased to take into account the Company's strategy of investing in sales and marketing and development and also include costs necessary to operate as a U.S. listed company.

The forecast is the responsibility of the board of directors and has not been reviewed or reported on by the Company’s external auditors. The Company’s policy is to give guidance on a quarterly basis, if necessary, and does not update guidance between quarters.

The information disclosed in this “Business Outlook ” paragraph complies with the disclosure requirements in terms of paragraph 8.38 of the JSE Listings Requirements which deals with profit forecasts.