EROAD Limited — Interim / Quarterly Report 2020

Jul 10, 2019

11 July 2019

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Quarterly Operational Update

EROAD delivers good start to FY20

Transport technology services company EROAD today released its quarterly update for the three months ended 30 June 2019.

EROAD has delivered a good start to the new financial year. The company has an encouraging pipeline that has delivered solid growth and achievements. First quarter highlights include:

• 24% annualised growth in total contracted units

• Strong growth of 12% in North America, demonstrating the solid pipeline

• Continued growth of 4% across Australia and New Zealand, reflecting the addressable market of both enterprise and small to medium business

• EROAD’s delivery of net return to the NZ economy was recognized with the company chosen as Best Large Business (Services) in the Air New Zealand Cargo Export NZ 2019 Awards

• Installation of the 100,000[th] unit, with the company taking less time to reach this milestone than other global telematics industry giants.

	market of both enterprise and small to medium business•EROAD’s delivery of net return to the NZ economy was recognized with the company chosenas Best Large Business (Services) in the Air New Zealand Cargo Export NZ 2019 Awards•Installation of the 100,000thunit, with the company taking less time to reach this milestonethan other global telematics industry giants.	market of both enterprise and small to medium business•EROAD’s delivery of net return to the NZ economy was recognized with the company chosenas Best Large Business (Services) in the Air New Zealand Cargo Export NZ 2019 Awards•Installation of the 100,000thunit, with the company taking less time to reach this milestonethan other global telematics industry giants.	market of both enterprise and small to medium business•EROAD’s delivery of net return to the NZ economy was recognized with the company chosenas Best Large Business (Services) in the Air New Zealand Cargo Export NZ 2019 Awards•Installation of the 100,000thunit, with the company taking less time to reach this milestonethan other global telematics industry giants.	market of both enterprise and small to medium business•EROAD’s delivery of net return to the NZ economy was recognized with the company chosenas Best Large Business (Services) in the Air New Zealand Cargo Export NZ 2019 Awards•Installation of the 100,000thunit, with the company taking less time to reach this milestonethan other global telematics industry giants.
	Total atTotal atUnits added% Growth in% Growth
	Quarterly Units31	Mar-1930 June-19in qua	rterquarterannualised
	Total ContractedUnits*96,390102,2025,8126%24%
	Australia & NewZealand71,44674,3542,9084%16%North America24,94427,8482,90412%47%
	YTD Units 30	Total atune-18Total at30 June-19Units adin 12 mo	dedths% Growth in12 months% Growthannualised
	Total Contracted
	Units*	81,272102,20220	,93026%26%
	Australia & New
	Zealand	61,93474,35412	,42020%20%
	North America	19,33827,8488	,51044%44%

• Total Contracted Units is a non-GAAP measure used by EROAD which represents the total units subject to a customer contract and includes both Units on Depot and units pending instalment.

EROAD’s growth in New Zealand met the company’s expectations for this quarter, with consistent pricing, attracting both enterprise and small to medium businesses.

The North American market for EROAD continued to deliver as anticipated with Total Contracted Units up 44% on Q1FY19. Installations have commenced for the enterprise fleet customer announced in Q4FY19 and the pipeline for enterprise remains strong and there is a solid run rate for small to medium businesses.

TEL +64 9 927 4700 FAX +64 9 927 4701 FREE 0800 4-EROAD

PO Box 305 394 Triton Plaza, North Shore 0757 Auckland, New Zealand

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The small to medium businesses run rate in Australia has yet to reach EROAD’s expectations however an encouraging enterprise pipeline has been established and, as we saw in North America, larger enterprise accounts generally involve a longer sales lead time.

Ends

Contact: Sue-Ellen Craig, Director of Communications

Ph +64 21 577 685 email: sueellen.craig@eroad.com

About EROAD

• EROAD believes every community deserves safer roads that can be sustainably funded. This is why EROAD develops technology solutions (products and services) that manage vehicle fleets, support regulatory compliance, improve driver safety and reduce the costs associated with driving. EROAD also provides valuable insights and data analytics to universities, government agencies and others who research, trial and evaluate future transport networks. This data enables those who use the roads to influence the design, management and funding of future transport networks.

• EROAD launched with the purpose of modernizing New Zealand’s paper-based road user charging system. By 2009 EROAD had introduced the world’s first nationwide electronic road user charging system and now around 46% of collected heavy vehicle road user charges in New Zealand are being collected using EROAD technology. By March 2019, this had delivered NZ$2.5B to NZTA for the sustainability of the NZ transport network. In the USA, EROAD introduced the first electronic Weight Mile Tax service (2014) and the first independently verified Electronic Logging Device service (2017).

• EROAD (ERD) is listed on the NZX, and employs over 250 staff located across NZ, Australia and North America.

eroad.co.nz

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