KNOW YOUR CAR S EVERY MOVE
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- Erik Hampton
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1 KNOW YOUR CAR S EVERY MOVE Since its formation in 1997, JSE Listed Digicore Holdings has rapidly grown and established a reputation as a leading global provider of GPS-based vehicle tracking solutions. There is a great opportunity for broadening and deepening the application of such tracking solutions to deliver operational efficiency, customer service, asset security and worker safety. Traditionally, DigiCore provided fully fledge fleet management solutions with products such as C-track Solo and C-track Assist installed in over 150,000 commercial vehicles. With the launch of Secure, DigiCore is expanding its expertise in the Stolen Vehicle Recovery (SVL) market. DigiCore is now well positioned for rapid breakthrough into the mass market for no frills assets tracking for SMEs and individual consumers, whilst maintaining a strong presence in the more traditional fleet management segments. CEO Nick Vlok says the group s entry to the stolen vehicle recovery market is one of the most exciting developments in the group s history. The group recently launched a series of TV, radio and press advertisements to promote the product, branded C-Track Secure Know you car s every move, and expects its superior technology to garner it a respectable share of the local market. Given SA s car pool of more than 7m vehicles and attractive insurance discounts for those fitting tracking devices to their cars, Vlok is convinced this is a market whose time has come. The stolen vehicle recovery market is a long way from saturation, and we believe we have a technologically superior product that will find its mark with vehicle owners seeking real every day value from there insurance enforced tracking product. C-TRACK GRUELING SAIA INSURANCE CERTIFICATE TESTS As SAIA s CEO Haydn Marchant I had the privilege of joining Chris Bezuidenhout on a recent test of DigiCore s C-track tracking devices. I say privilege as it took some real strategic planning to get my diary and Chris s diary to match with the availability of the tracking company for the test. Finally it came together and we headed out from Johannesburg with two C-track devices and two days of testing ahead of us. It was my intention from the
2 outset to get lost and even Chris was surprised at my determination to put the two C-track devices through the most grueling of tests. With the first C-track we headed out west then cut back on ourselves and used all the tricks in the book. As we zigzagged around Gauteng we were pretty confident that we had blocked the signal and avoided detection ~ we made sure that there was little opportunity for the guys to second guess our movements but on entering into Limpopo province and then stopping for lunch we were surprised to have them arrive a mere 5 minutes behind us. The C- track test began in Naboomspruit as the sun made its appearance in the east. Once again, despite our best efforts the control room informed us of every turn we made and Chris and I stood down for a hearty Wimpy breakfast to rethink things and plan to lose them good and proper. This time we were taking no prisoners and used all the electronic goods in our arsenal but still the control room seemed to know where we were. Every white twin cab bakkie became Capital Air The enemy - and in desperation we finally disconnected the C-track antennae and put my Land Rover through its paces off road. There were a few surprised farmers as we traversed their lands. If there had not been a genuine hijack in the middle of the morning that meant Capital Air having to redeploy one of the teams chasing us, we would have been caught but there was and as a result we managed to evade capture and finally drove into Centurion thinking we had won. How wrong we were a mere 7 minutes after parking in the underground parking in Centurion Mall, Mr. Wessel Lourens from Digicore parked opposite us and we were forced to admit defeat as he produced a report on every step of our journey. Had they used Capital Air helicopters instead of the ground teams, we would not have avoided them for even half the time we did. I am now convinced that the only way we would have lost them would have been for us to leave the C-track device on the side of the road somewhere all our fancy equipment, all of our tricks to fool the system failed and I stress even our disconnecting the antennae failed to give us the victory and I commend DigiCore on rising to the challenge and I confidently give them the SAIA Approved certificate of approval on both these additional C-track products
3 Historically many small fleets and businesses in accordance with insurance requirements have opted for beacon based and passive technology like Tracker and Netstar for security, which cannot give any value-added real-time location or movement information other than reactive recovery if and when required. C-track Secure combines valuable Internet based productivity and movement reporting. C-track Secure offers an efficient combination of track and trace technology with vehicle tracking information. C-track Secure fills a definite market gap. Full Fleet Management solutions can be too expensive for small fleet operators whilst Stolen Vehicle Recovery (SVR) systems are relatively inexpensive but add no value in terms of everyday piece of mind. Secure offers not only the most advanced personal Stolen Vehicle Recovery (SVR) system on the market; it also offers SME basic fleet management capabilities without the need to invest in expensive office equipment. We re not competing at the low end of the stolen Vehicle Recovery market because we have a product that adds value and genuine peace of mind to the individual while having full insurance backing on the table, says Nick Vlok. We think our product will revolutionise the industry. DigiCore spent R3m upgrading its server to ensure even greater reliability of service and redundancy. Vlok says the C-Track Secure differs from existing products in several ways: it performs a health check on itself each day to ensure it is operational and if not, a call is logged and the client advised accordingly; customers can keep track of their own vehicles via an internet map or personal cell phone (particularly useful if junior has taken the car for the night); the system is a scaled-down version of that available to DigiCore s fleet management customers, showing the route the vehicle has taken and logs information such as date, time, maximum speed and ignition off (wives might find this useful, since any unscheduled pub trips by the husband are captured in glorious technicolour); it comes with an optional, remote panic button to send your location to Digicore Support Centre and let it know you need help;
4 Internet reports allows the driver to determine whether the trip is business or private (this has been approved by SA Revenue Services) Electronic Logbook should the vehicle move out of a pre-defined area, a warning message is sent to the customer s cell phone and the Digicore Support Centre. vehicle location is accurate to four metres using GPS (Global Positioning System) satellites; as a location back-up the vehicle is also traceable using the GSM triangulation on the networks; C-Track Secure senses and proactively reports tampering with its power supply, in which case a back-up battery takes over; the unit will track vehicle movement even if the ignition is off; the unit draws little battery power, less than 10 percent of the industry standard;(no flat batteries after that trip overseas) The cost is R2,999 for installation, excluding VAT, with a monthly subscription of R139 per unit (also excluding VAT). The installation includes C-Track Secure, GSM subscription, 160 SMSs (short message services) and the stolen vehicle recovery service. Rental is another option, in which case there is no initial charge for fitment of the unit, and a monthly subscription of R249. The product has been endorsed by the SA Insurance Assocation and the Vehicle Security Association of SA. The stolen vehicle recovery partner has ground crews, a helicopter fleet, and an office in Mozambique (where many vehicles stolen in SA end up). Vlok says C-Track Secure will become the largest part of the group s SA business within the next few years. The product has been tested and is ready for launch in Namibia, to be followed by other African countries. Nashua Mobile was recently brought in as a retail partner of the C-track Secure product through there 60 outlets nationwide. A network of 45 fitment centres countrywide have been readied for the mass launch of C-Track Secure. For furthur information please contact:
5 Bruce J Richards Sales & Marketing Director DigiCore Holdings Tel: Cell: bruce@digicore.co.za DIGICORE IN A NUTSHELL Nature of business: Manufactures and distributes fleet management control systems CEO: Nick Vlok Latest product launch: C-Track Secure (tracking and recovering stolen vehicles) Brands: - C-Track Solo (a scaleable, remotely upgradeable mobile solution for professional hauliers, logistics & supply chain managers, mobile workforce managers and emergency services applications) - C-Track Assist (for the management of commercial fleets, trailers, sales vehicles, full maintenance leasing & car rental vehicle security applications) - Co-Driver (a simple and reliable electronic vehicle monitoring system, designed specifically for customers not requiring real time information) - C-Track Secure (tracking and recovering stolen vehicles) Turnover (year to 30 June 2005): R253m (up 31% on 2004) After-tax profit: R42,7m (up 82%) Headline earnings per share: 21,1c (up 73%) Annual R&D spend: R12m Cash in bank: R48m Control: Directors (39%) No. employees: 350 No. countries represented: 20 Exports as % of total units sold: 52% Exports as % of net profit before tax: 20% No. installed systems worldwide: 150,000 (100,000 in SA) Largest market outside SA: Pakistan (29,000 installed units)
6 Foreign subsidiaries: Digicore Europe (51%), which owns 100% of C- Track Benelux Trakker Pakistan (30%) Accredited by: SA Insurance Association Bureau for Safety and Security (applies to C-Track) DEKRA (Germany) Membership: Vehicle Security Association of SA (VESA)
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