EROAD achieves record sales in New Zealand and US markets

28 November 2017
Half Year 18 Presentation and Business Update

2
Important information
The information in this presentation is of a general
nature and does not constitute financial product
advice, investment advice or any recommendation.
Nothing in this presentation constitutes legal,
financial, tax or other advice.
This presentation may contain projections or forward-
looking statements regarding a variety of items. Such
projections or forward-looking statements are based
on current expectations, estimates and assumptions
and are subject to a number of risks, uncertainties and
assumptions. There is no assurance that results
contemplated in any projections or forward-looking
statements in this presentation will be realised. Actual
results may differ materially from those projected in
this presentation. No person is under any obligation to
update this presentation at any time after its release
to you or to provide you with further information
about EROAD.
While reasonable care has been taken in compiling
this presentation, none of EROAD nor its subsidiaries,
directors, employees, agents or advisers (to the
maximum extent permitted by law) gives any
warranty or representation (express or implied) as to
the accuracy, completeness or reliability of the
information contained in it nor takes any
responsibility for it. The information in this
presentation has not been and will not be
independently verified or audited.

EROAD
OVERVIEW

4
EROAD modernises tax compliance and health & safety for commercial vehicles
•World first GPS based road user charging system in New Zealand
•Operations in Australia & New Zealand (ANZ) andNorth America
(NA)
•Sole heavy vehicle technology supplier for California Road User
Charge Pilot, and recently selected to participate in a mileage-
based user pilot for I-95 corridor coalition
•59,538 total contracted units across three countries as at
September 2017, with an additional 2,299 units contracted in
October 2017
•EROAD’s services offered include:
•Tax compliance
•Health & Safety
•Fleet management
•EROAD’s world class system consists of:
•Electronic Distance Recorder (In-cab Hardware)
•Electronic Logbook application (Mobile Software)
•Cloud based online applications portal (Software)
•Bank Grade Payment Gateway
•EROAD’s customers range from owner drivers to large fleet
operators

5
Value proposition -EROAD differentiates via value adding compliance products
•EROAD’s unique selling proposition comes from its tax compliance and health & safety solutions differentiating it from its fleetmanagement
focused peers
•Whilst growth in the ANZ business has historically been driven by EROAD’s tax compliance solutions, health & safety compliance services (such
as driver behaviour) are now as strong a driver of EROAD’s sales in ANZ
Tax Compliance
•Calculation and payment of Weight Mile Tax (WMT) -NA
•Calculation of International Fuel Tax (IFTA) -NA
•Calculation of International Registration (IRP) -NA
•Electronic Logging Device (ELD), Hours of Service -NA
•Storage enabling customer audit reporting
•Calculation and payment of Road User Charges (RUC)
Health & Safety Compliance
•Driver Logbook for hours of service -NZ
•Driver Vehicle Inspection Recording (DVIR) -NA
•Driver health and safety management and reporting
•Storage enabling internal and external audit reporting
Fleet Management
•Driver identification
•Vehicle maintenance scheduling
•Vehicle tracking and fleet activity
•Fuel and idling reporting
•Driver messaging
Less competition
More value
-
added services

6
Opportunity -EROAD is operating in a large total addressable market
•EROAD is well established in the ANZ market
•In New Zealand EROAD now collects 39% of all heavy vehicle RUC with strong growth also being achieved in the light commercialvehicle segment
•EROAD’s Australian business (operationally managed from New Zealand) provides commercial services primarily to trans-tasman customers
•EROAD’s focus has widened to North America as ELD, WMT and IFTA have opened large new opportunities
Australia
700kheavy vehicles
USAELDshours of service3m
vehiclesInterstate only
ELD
Hours of service
USA, Canada and Mexico
andintrastate
USA
IFTA & IRP services
2.9mvehicles
Prospect:
California, Eastern USA(I-95)
Oregon eWMT
306kvehicles
New Zealand500k
commerciallightvehicles
New Zealand120k
heavy vehicles
EROAD is leveraging its platform, initially built for NZ RUC, to access significantly larger market opportunities
Australia
2.9m
light commercial vehicles
HY18 total ANZ units
49,802
HY18 total North American units
9,736
LARGE TOTAL ADDRESSABLE MARKET IS AVAILABLE
Current operationsPotential operations
Australia & New Zealand‣Oregon ‣Northwest ‣North America

HALF YEAR
RESULTS

8
Achievements and key events in HY18 -EROAD continues to gather momentum
Australia & New Zealand
NorthAmerica
Corporate and R&D
#3
Ranked ELD
Out of 26 by
ELDratings.com
Right sized R&D team
post completion of major
R&D projects (including
ELD)
EROAD collects
Achieved
2
record
sales
quarters
in ANZ
$$
Achieved
2
record
sales
quarters
in North
America
$$
New Multi-Option
Credit Facility Secured
Put in place July 2017
Rejected
ELD remains on track
for December 2017
Introduced
charging
for new features
Inspectand Speed on box
such as
of all Heavy Vehicle electronic
RUC in New Zealand
80%

9
299
90
265
182
141
126
131
136
440
771
1,166
1Q 162Q 163Q 164Q 161Q 172Q 173Q 174Q 171Q 182Q 18Oct-17
739
684
807
631
824
1,068
612
658
1,030
1,591
1,133
1Q 162Q 163Q 164Q 161Q 172Q 173Q 174Q 171Q 182Q 18Oct-17
Unit sales -ongoing ANZ growth and increasing momentum in North American unit sales
•EROAD performed in line with Prospective Financial Information (PFI) expectations in its ANZ business, and has continued to grow strongly
•Whilst growth in North America did not meet PFI, momentum has increased materially following the rejection of the ELD legal challenge in
June 2017
•Unit growth in North America outstripped ANZ for the first time in October 2017
ANZ: TOTAL CONTRACTED UNITS (PFI vs ACTUAL)
1
NORTH AMERICA: TOTAL CONTRACTED UNITS (PFI vs ACTUAL)
1
13,453
21,749
31,617
14,332
24,041
32,452
41,939
49,802
FY14FY15FY16FY17HY18
ANZ (PFI)ANZ (Actual)
1. Note that PFI figures are for “Total Units on Depot”, while actual units represent “Total Contracted Units”
ANZ: NET NEW CONTRACTED UNITS
(AVERAGE MONTHLY UNIT SALES PER QUARTER)
NORTH AMERICA: NET NEW CONTRACTED UNITS
(AVERAGE MONTHLY UNIT SALES PER QUARTER)
-
2,957
12,440
-
1,990
4,501
6,102
9,736
FY14FY15FY16FY17HY18
NA (PFI)NA (Actual)

10
Recurring revenue per unit -mix shift to lighter vehicles resulted in small decline
•Recurring revenue
1
per unit fell from $55 to $54 over the prior year driven by:
1. For a full description of recurring revenue see the Appendix to this presentation
•Continued penetration into lighter vehicles
•Lower RUC transaction fees for lighter vehicles
•Increasing number of contracts up for renewal
•Large enterprise customer and partner
contracts
•Customers upgrading service plans
•Customers upgrading to Ehubo2
•North America is an Ehubo2 only market
•Customers adding newly launched features –
Inspect and Speed on box
DOWNWARD DRIVERS UPWARD DRIVERS

11
$4.2
$1.3
($0.1 )
$13.2
$17.4
$1.9
$3.2
$0.5
$0.3
$15.5
$20.9
HY17Growth established
ANZ market
Growth commercial
NA market
Corporate revenue &
expensed R&D
HY18
ANZNACorporate revenue & expensed R&D
$0.7
$1.9
$3.2
$0.3
$1.4
$2.2
-
$0.4
$2.2
$4.1
$3.2
FY14FY15FY16FY17HY18
1H2H
Revenue growth -driven by unit sales
ANZ: REVENUE (NZ$m)
1
NORTH AMERICA: REVENUE (NZ$m)
1. Excludes intercompany revenue
$4.3
$7.9
$11.2
$13.2
$17.4
$5.6
$9.3
$12.0
$14.7
$10.0
$17.2
$23.3
$27.8
$17.4
FY14FY15FY16FY17HY18
1H2H
•From HY17 to HY18, revenue increased by $5.4m (35%),
predominantly driven by:
•Increases in total contracted units and recognition of a full year of
revenue for units sold partway through the prior period
•Partially offset by reduced average unit pricing (an impact of $0.3m)
REVENUE GROWTH HY17 TO HY18 (NZ$m)
+35%
+68%
+32%
HY17
HY18

12
Revenue dynamics -remain favourable in the medium to long term
For a full description of Retention Rate see the Appendix to this presentation
HIGH CUSTOMER
RETENTION RATE
POSITIVE
PRODUCT MIX
Ehubo /
Ehubo2 /
Tubo
EhuboLITEElocateRentedSold
•Retention rate remains high at 98%,
unchanged at 98%
•Product mix has shifted toward Ehubos (70% last
year) due to:
•North America (which is an Ehubo2 market)
continuing to grow
•Large enterprise customers seeking the full range of
Health and Safety features only available on Ehubo2
•Rented units continue to be the
dominant model for our customers
with just 8% of units sold outright
73%
22%
5%
92%
8%
RENTAL VERSUS
SALE

13
$19.2
$29.6
$37.1
$46.6
$48.0
$52.7
$58.5
$75.0
2HY141HY152HY151HY162HY161HY172HY171HY18
Future contracted income -increasing due to new unit sales and contract renewals
For a full description of Future Contracted Income (FCI) measure see the Appendix to this presentation
FUTURE CONTRACTED INCOME (NZ$m)

14
$4.5
$6.3
$6.2
$5.5
$5.7
$5.6
$0.9
$5.0
$3.3
$10.8
$1.6
$0.7
$1.9
$0.5
$0.5
$0.9
$16.9
($0.5)
($0.5)
($0.9)
$15.0
HY17Increased cost
of goods sold
Lower
capitalised
costs (greater
portion
expensed)
US salaries &
expenses
One-off
professional
fees
Restructuring
costs
Increased
salaried staff
HY18One-off
professional
fees
Restructuring
costs
Restructured
salaries
HY18 (excluding
one-off costs)
ANZNorth AmericaCorporate & R&D expensed
Expenses -increasing over the period, a number of these are non-recurring
1
One off costs
EXPENSE MOVEMENT HY17 to HY18 (NZ$m)
1. Removal of salaries for restructured staff not expected to be incurred after September 2017

15
$4.7
$5.4
($1.6)
($0.7)
($1.9)
($0.5)
($0.5)
($0.9)
$4.0
$0.5
$0.5
$0.9
$5.9
-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
HY17RevenueIncreased cost
of goods sold
Lower
capitalised
costs (greater
portion
expensed)
Additional
salaries &
expense US
Restructuring
costs
One-off
professional
fees
Increased
salaried staff
HY18Restructuring
costs
One-off
professional
fees
Restructured
salaries
HY18
(excluding
one-off costs)
EBITDA-alsoimpactedbynon-recurringexpenses;excludingthosetrendingpositively
EBITDA MOVEMENT HY17 to HY18 (NZ$m)
One off costs
1
1. Removal of salaries for restructured staff not expected to be incurred after September 2017

16
Funding -new debt facilities put in place to ensure capacity to fund unit growth
•During HY18, EROAD secured a new credit facility with the BNZ totalling $33.4 million, which was first drawn in July 2017
•Subsequent to the end of HY18, EROAD signed a credit approved facility letter with the BNZ to further extend its facilities by approximately $16
million ($14 million of growth facility and $2 million of overdraft), to support expected increases in the sales pipeline
•The subsequent facility will be used primarily to provide growth funding for the financing of new units leased to customers in New Zealand,
Australia and North America–to be drawn down in accordance with the execution of new rental contracts
•The subsequent facility has a revised expiry date of 1 April 2019
•Covenants and funding rates are in line with the previous agreement, however margins have increased by 25 bps across all facilities –an umbrella
limit of $35 million also applies
•Term Debt: $9.5 million amortising over 30 months, repaid quarterly
•Second Term Debt Facility representing Capped Committed Cash Advance Facility
1
:
approximately $12.5 million, amortising over 33 months
•Committed Cash Advance Facility
1
: $21 million to fund unit growth, amortising over 36
months
•Overdraft facility $5 million (increased from $3 million)
NEW DEBT FACILITES
1. Facilities are in local currencies and to local market rates
New Multi-Option
Credit Facility Secured
First drawn inJuly 2017,
Revised in November 2017

EROAD
IN NORTH AMERICA

18
-
2,000
4,000
6,000
8,000
10,000
12,000
135791113151719212325272931333537394143
Units
Months since launch
NEW ZEALAND VS NORTH AMERICA GROWTH
SINCE LAUNCH
New ZealandNorth America
1
North America -material growth follows sales focus
•Whilst sales in North America have picked up materially, they
continue to track historical experience in New Zealand since
launch
•EROAD remains focused on lifting sales and the scale of the
North American business, to create a high growth, self sustaining
business to match its ANZ operation in performance
ELD legal challenge
defeated
1. North Americaincludes new contracted units added up to October 2017
Strategic review:
•EROAD has engaged First NZ Capital to undertake a strategic
review of its North American business
•The review is focused on evaluating options to further capture
the compelling growth opportunity in North America
•Review will consider potential partnership, joint venture and
other opportunities to enhance US distribution

19
North America -the ELD landscape is evolving as the deadline approaches
•Late adopters
•Price key rather than value
•Compliance focused users
•Focused on being compliant by
deadline
•Final rule compliance date:
•18 December 2017
(excluding AOBRDs)
•Enforcement deadline:
•1 April 2018
(excluding AOBRDs)
•Expect initial soft enforcement as
users incorporate technology into
business practices
•Buyers remorse
•In cab vs tablet functionality,
complexity, compliance
•Return to value focus
•Value selling over price & simple
compliance
•Intra-state adoption
•AOBRD users must transition to
ELD by 18 December 2019
TODAYDEADLINE (Dec-17)
POSTDEADLINE

APPENDIX

21
Non GAAP measures
1.Units on Depot
The number of EROAD devices installed in vehicles and subject to a service contract with a customer
2.Units Pending Installation
The number of EROAD devices subject to a service contract with a customer but pending Installation
3.Total Contracted Units (TCU)
TCU is made up of Units on Depot plus Units Pending Installation
4.Future Contracted Income (FCI)
Total revenue to be earned from existing customer contracts in future accounting periods
5.Retention Rate
The number of Units on Depot at the beginning of the 12 month period and retained on Depot at the end of the 12 month period,asa percentage
of Units on Depot at the beginning of the 12 month period.
6.Recurring Revenue
The current monthly revenue EROAD receives from existing Units on Depot from charging of services, hardware rentals and transaction fees.

22
Half year update for the six months to 30 September 2017
1. Earnings before interest, tax, depreciation and amortisation. For full description of non GAAP measures see the Appendix to this presentation
2. EBIT and EBITDA for the HY included restructure costs of $0.5m and costs that will not continue to be incurred in future periods of $1.4m, a total of $1.9m in the HY
6 months ended6 months ended
% increase
30-Sep-1730-Sep-16
Revenue ($000)
20,906 15,524 35%
Expenses ($000)
16,94110,79957%
EBITDA
1,2
($000)
3,965 4,725 -16%
EBITDA
1
margin
19.0%30.4%
Depreciation & Amortisation ($000)
(7,294)(5,008)46%
EBIT
2
($000)
(3,329)(283)-1076%
Net Profit Before Tax ($000)
(3,766)(345)-992%
Total Contracted Units
59,538 43,430 37%
Future Contracted Income ($million)
75 53 42%
Retention Rate (12 months to 30 Sept)
98%98%N/A

23
Divisional results for the six months to 30 September 2017
1. The segmental note in the financial statements includes reportable segments prior to elimination of inter-segment revenue andexpenses. The table above shows the reportable segments after elimination of inter-segment revenue and
expenses.
ANZ business
North American
business
Corporate & R&D
expensed
Total
30-Sep-1730-Sep-1730-Sep-1730-Sep-17
Revenue ($000)
17,367 3,198 340 20,906
EBITDA
1
($000)
11,093 (2,500)(4,628)3,965
Depreciation
3,689 602 348 4,638
Amortisation
0 0 2,656 2,656
EBIT
1
($000)
7,405 (3,102)(7,632)(3,329)
Net Profit before tax ($000)
7,449 (3,102)(8,113)(3,766)

24
Statement of Income
PERIOD ENDFY2014FY2015FY2016FY2017HY2017HY2018
$'000$'000$'000$'000$'000$'000
Continuing operations
Revenue9,964 17,550 26,164 32,764 15,524 20,906
Expenses(5,935)(12,511)(20,477)(25,708)(10,799)(16,941)
4,029 5,039 5,687 7,056 4,725 3,965 Earnings before interest, taxation, depreciation, amortisation and non-operating costs
Depreciation(2,320)(3,561)(5,812)(8,086)(3,632)(4,638)
Amortisation(648)(1,140)(1,676)(3,991)(1,375)(2,656)
EBIT before non-operating costs1,062 338 (1,801)(5,021)(283)(3,329)
Finance income80 844 736 100 53 45
Finance expense(122)(86)(245)(336)(115)(482)
Net financing costs(42)758 491 (236)(62)(438)
Profit/(loss) before tax expense and non-operating costs1,020 1,096 (1,310)(5,257)(345)(3,766)
Non-operating costs0 (2,023)0 0 0 0
Profit/(loss) before tax expense1,020 (927)(1,310)(5,257)(345)(3,766)
Income tax (expense)/benefit1,922 (294)211 (17)104 150
Profit/(loss) from continuing operations2,942 (1,221)(1,099)(5,274)(241)(3,617)
Other comprehensive income0 (61)(48)(234)(167)(81)
Total comprehensive income/(loss) for the period2,942 (1,282)(1,147)(5,508)(408)(3,697)

25
Statement of Financial Position
PERIOD ENDFY2014FY2015FY2016FY2017HY2017HY2018
$'000$’000$’000$’000$’000$’000
CURRENT ASSETS
Cash and cash equivalents2,521
24,610 7,873 935 6,702 830
Restricted Cash6,635
9,507 5,505 9,208 7,885 9,910
Trade and other receivables1,219
4,308 5,113 6,801 6,664 8,818
Finance lease receivable
0 0
295 498 450 777
Loan to Directors (to acquire shares)0 0
280 0 0 0
Current tax receivable0 0 457 362 359 19
Total Current Assets10,375 38,425 19,522 17,804 22,060 20,353
NON-CURRENT ASSETS
Property, plant and equipment9,324
15,139 21,361 23,764 22,637 26,092
Intangible assets9,974
15,816 23,269 28,663 26,436 30,272
Finance lease receivable0 0 731 906
1,004 1,434
Deferred tax assets1,922
1,650 1,953 1,925 2,009 2,085
Loans to Directors (to acquire shares)0
280 0 0 0 0
Total Non-Current Assets21,220 32,885 47,314 55,258 52,086 59,883
TOTAL ASSETS31,595 71,310 66,835 73,062 74,147 80,236
CURRENT LIABILITIES
Bank overdraft00 00 0940
Borrowings3,101 0 1,002 0 6,019 17,170
Trade payables and accruals1,263 1,866 3,261 5,632 3,730 4,345
Payable to NZTA6,629 9,567 5,558 9,243 7,954 9,886
Current tax payable0 0 0 0 0 19
Deferred revenue4,632 4,082 3,379 2,657 2,895 2,520
Employee entitlements549 719 920 1,201 1,097 1,187
Total Current Liabilities16,174 16,234 14,121 18,733 21,695 36,069
NON-CURRENT LIABILITIES
Borrowings0 0 0 7,029 0 0
Deferred revenue3,871 3,313 1,996 1,744 1,952 1,749
Total Non-Current Liabilities3,871 3,313 1,996 8,773 1,952 1,749
TOTAL LIABILITIES20,046 19,547 16,117 27,506 23,647 37,818
NET ASSETS11,549 51,763 50,718 45,556 50,499 42,418
EQUITY
Share capital17,472 58,820 58,820 58,965 58,820 59,467
Retained earnings(5,923)(7,057)(8,101)(13,409)(8,321)(17,049)
TOTAL SHAREHOLDERS' EQUITY11,549 51,763 50,718 45,556 50,499 42,418

26
Statement of Cash Flows
PERIOD ENDFY2014FY2015FY2016FY2017HY2017HY2018
$'000$'000$'000$'000$'000$'000
Cash flows from operating activities
Cash received from customers
7,885 13,354 22,145 29,722 12,935 17,951
Payments to suppliers and employees (including $2.0 million of one-off listing costs)
(2,462)(13,697)(18,924)(22,953)(10,069)(17,872)
Net interest received/ (paid)
(42)758 491 (236)20 (397)
Net tax paid
0 (123)(288)95 98 362
Net cash inflow from operating activities
5,381 292 3,424 6,628 2,983 45
Cash flows from investing activities
Payments for purchase of property, plant & equipment
(5,822)(9,376)(12,035)(10,488)(4,909)(6,967)
Payments for purchase of intangible assets
(5,303)(6,982)(9,129)(9,386)(4,542)(4,265)
Net cash outflow from investing activities
(11,125)(16,358)(21,164)(19,874)(9,451)(11,231)
Cash flows from financing activities
Loan from bank
1,611 0 1,002 6,027 5,017 10,141
New shares issued
7,015 41,068 0 0 0 0
Payment of bank loan
0 (3,101)0 0 0 0
Loan from /(repayment) shareholders
(500)0 0 280 280 0
Net cash outflow from financing activities
8,126 37,967 1,002 6,307 5,297 10,141
Net increase/(decrease) in cash held
2,382 21,901 (16,738)(6,939)(1,171)(1,045)
Cash at beginning of the financial period
328 2,710 24,611 7,873 7,873 934
Closing cash and cash equivalents (net of overdrafts)
2,710 24,611 7,873 934 6,702 (111)

---

FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2017
EROAD
HALF YEAR REPORT

CONTENTS
OVERVIEW
EROAD’s Six Strategies
02
EROAD at a Glance
02
SUMMARY
Summary of the Six Months03
CEO’s Report04
Financial Review06
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Statement of Condensed Consolidated Comprehensive Income
08
Statement of Condensed Consolidated Financial Position
09
Statement of Condensed Consolidated Changes in Equity
10
Statement of Condensed Consolidated Cash Flows
11
Notes to the Condensed Consolidated Interim Financial Statements
12
Independent Auditor’s Review Report
22

1
ROMA RUNGA
Driver
Machinery Movers
Auckland

2
1
Grow existing markets in New Zealand,
Australia and Oregon, USA
New Zealand / Australia Units at 49,802,
up 31% since 30 Sept 2016
2
Expand into the Northwest and then across
wider North American market
North American units at 9,736, 80% in
Northwest and 20% across North America
3
Identify and develop new international
opportunities
Sole provider to heavy transport in the
California Road Charge Pilot
4
Accelerate market entry through acquisitions
No plans at present, but alert to potential US
opportunities in a post-ELD market
5
Develop further commercial services to support
core road charging and compliance offer
Released more than 300 product
enhancements across all markets
6
Validate new product markets
Ongoing
EROAD’s
Six Strategies
EROAD
at a Glance
EROAD modernises road charging and compliance for road
transport by replacing paper-based systems with easy-to-
use electronic systems that also improve fleet management,
bringing benefits to our customers who operate transport
fleets, as well as benefits to communities and the wider
public through improved road safety and valuable data
about road use to improve the planning, management and
maintenance of our roads.
›World’s first GNSS/cellular-based road charging solution
across an entire country in New Zealand (launched 2009)
has collected $1.7 billion in RUC since launch
›Collects 39% of New Zealand’s total heavy vehicle RUC,
up from 36% at 30 September 2016
›First state-audited (Oregon, USA) electronic Weight Mile
Tax (WMT) provider in the US (2014)
›First independently verified ELD in North America,
verified by PIT Group (2017)
›In-vehicle units connected to EROAD platform now
59,538, with 49,802 in New Zealand /Australia and
9,736 in the US
›Customer retention rate of 98%, consistent with prior
years
›Future Contracted Income now totals $75m to be earned
in future periods
›Operating cash flow from New Zealand/Australia business
funds all of US operations, all corporate costs and a
proportion of Research and Development.
›Team of 207 (following restructure in July 2017) – 160 in
New Zealand and 47 in the US
›Manufactures its Ehubo and Ehubo2 at its factory in
Albany, Auckland

3
Summary of
the Six Months
›Two record quarters achieved in both New
Zealand / Australia and North American
markets, driven by growing Health and Safety
focus in New Zealand and need to meet ELD
regulations in North America. A total of
11,497 units were added in the half year to 30
September 2017, up from 6,477 last year
›Two of New Zealand’s leading companies,
Fulton Hogan and Waste Management,
install new, sophisticated EROAD in-vehicle
technology in their transport fleets, 4,500
Ehubo2 units, to further improve their
management of health and safety
›EROAD accepted a new credit facility from the
BNZ, EROAD’s long term banking partner. The
new credit facility provided a total facility of
$33.4 million, for an initial term of 12 months
from the date of drawdown
›The US Supreme Court rejected a hearing
on the lawsuit against the US Department of
Transportation’s ELD mandate. The Supreme
Court decision in June 2017 ended the court
challenge by the OOIDA (Owner Operator
Independent Drivers Association)
›EROAD became the first provider to deliver
an independently verified and compliant ELD
to the US market, following extensive testing
by PIT Group, which specializes in the testing
and implementation of transportation-related
products across North America
›EROAD’s ELD was ranked number 3 (out of
24) on ELD Ratings.com website that reviews,
compares and rates ELD solutions available in
the North America www.eldratings.com
›Following the successful launch of EROAD’s
ELD and the release of its full Health and Safety
suite, a restructuring of the business was
undertaken to ensure the EROAD team was
aligned to deliver sales growth in all markets
›For the first time in New Zealand’s history RUC
(Road User charges) collected electronically
exceeded that collected by traditional paper
based means. EROAD collected 80% of the
RUC collected electronically
Units on Depot
59,538
up over 30 Sept 2016 by
+37%
Revenue
$20.9m
up over same period last year by
+35%
Customer Retention Rate
remains strong
98%
Future Contracted Income
(FCI)
$75m
up over 30 September 2016 by
+42%
Net Loss before tax
$(3.7)m

4
CEO’s Report
The six months to September 30, 2017, marked a number
of key milestones for EROAD as it seeks to leverage its
significant investment in R&D and product development
that has provided a world-leading suite of products and
services to solve problems for road transport carriers. Our
renewed focus on sales growth to leverage this investment is
beginning to produce results, though we know a lot of hard
work still lies ahead.
In the period under review we achieved two record sales
quarters in our New Zealand / Australia market and two
record sales quarters in the US, where our Electronic Logging
Device (ELD), independently verified by PIT Group, has been
well-received, placed 3rd in North America by online transport
publication ELDRatings.com. Tracking our rate of growth since
launch in our two main markets, the US has once again edged
ahead of NZ (see page 21 of half year presentation) however
growth in NZ remains very strong with a healthy forward
pipeline.
As signalled at year-end 2017, we weren’t happy with where
our result ended up, given our long run strategy to grow
rapidly, but to do so profitably or close to breakeven. Over
recent months we restructured the business to reduce cost,
recognising that our peak R&D demands – including our US
ELD – are behind us for the time being. We also undertook
investment in renewing the first of our back office systems.
It’s worth noting that, despite this moderate down-sizing, our
R&D investment remains very significant by NZ standards and
continual innovation remains important to us.
EROAD’s total contracted units grew by 37% over the previous
year, supporting revenue growth of 35%. Our EBITDA margin
at 19%, compared to 30.4% a year ago reflects our continued
investment in sales capability in the US. Our loss of $3.8 million
before tax for the half-year reflects a cost structure that we
have addressed, as well as one-off costs of our restructure.
We expect to see lower costs in the coming six months,
arising from the restructure and our systematic changes,
with continued strong growth in revenue. EROAD’s Future
Contracted Income rose 42% on the comparative balance last
year to $75 million, reflecting not only higher sales, but also
high levels of renewals for customers on 36-month leases. Our
customer retention rate remains very high at 98%.
NEW ZEALAND/AUSTRALIA MARKET
Around half of heavy transport Road User Charges (RUC) in
New Zealand is now paid and collected electronically. This
50% market conversion, since EROAD launched the world’s
first GPS-based road user charging system in New Zealand
in 2009, represents a rapid eCommerce adoption by our
road transport sector – faster, for example, than transitions to
Internet shopping or Internet banking. This shift to eCommerce
solutions brings with it significant private and public sector
benefits, and benefits to all New Zealanders. Our customers
are achieving improvements in health and safety thanks
to services to support driver behaviour. And road planners
and policy makers now have high quality network data from
the activity of around 50,000 vehicles on our platform. For
example, road transport accounts for around 15% of the fuel
used in New Zealand, and our customers are achieving, on
average, fuel savings of around six per cent, representing a
significant cost saving and carbon saving to the economy.
Total contracted units in New Zealand/Australia grew to 49,802
units as at 30 September, 2017, a 31% growth rate. Revenue
rose to $17.4 million with an EBITDA of just over $11 million,
underscoring the importance of our NZ/Australia business to
enabling investment for US growth. We remain the market
leader in New Zealand having collected $1.7 billion in RUC
with 80% of the heavy vehicle eRUC market. It was a record
six months of sales for EROAD, adding 7,863 units (compared
to 5,667 last year). Our NZ sales pipeline remains strong with
health and safety services like driver behaviour now as strong a
driver of sales as eRUC services. EROAD’s SaaS platform Depot
is now crucial to NZ’s transport ecosystem, enabling innovation
in services like cold chain monitoring and insurance.
NORTH AMERICAN MARKET
Our two record sales quarters in the US reflects increased
market attention on the US Federal mandate requiring vehicles
to have an Electronic Logging Device (ELD). During the six
months, legal appeals against the mandate were thrown out,
and a last-ditch attempt to have Congress halt implementation
of the mandate was dismissed. Fleets that must meet the
December, 2017, deadline are urgently seeking a solution,
and tend to be price rather than value focused. Fleets whose
vehicles already have an automatic on-board (AOBRD)

5
device have two years’ grace (18 December, 2019), and these
operators are looking for more robust and value-oriented
solutions, and are likely to consider a solution when their
existing technology leases come up for renewal. EROAD will
remain very focused on the ELD market for the next two years
and beyond.
Total contracted units in the US grew to 9,736 units, with
around 20% of these units now beyond our area of initial focus
in the Pacific North West (Oregon, California, Washington
and Idaho). ELD sales remain our primary focus. Electronic
Weight Mile Tax services (for vehicles in or travelling through
Oregon), IFTA automation, and our fleet management and
health and safety services become particularly important for
those customers focussed on obtaining the most value out of
the changes created by the ELD. While our investment in sales
capability and a more targeted strategy is generating results,
we remained focused on growing the total contracted units
and moving towards breakeven and profitability in the US.
TEAM, R&D AND BACK OFFICE
While we can reflect on significant achievements in the past
six months, it has been a challenging time for the EROAD
team as we have undergone a restructuring of the business,
farewelling a number of good people, as well as investing in
new back office systems, to reduce costs in the longer run.
We successfully implemented stage one of a new Microsoft
Dynamics 365 finance system, and were awarded Callaghan
Growth Funding of $0.4million during the period. Our team
stands at around 200 team members, and our right-sizing
of the business ended a continuous and rapid expansion
from a small team of EROAD founders when we began 10
years ago, to an established and growing listed company.
The commitment and dedication of our team remains a vital
component in EROAD’s success today, and its bright prospects
for the period ahead. We will continue our investment in
improved back office and customer support systems to
maintain growth. Our R&D team will continue to work with
customers to further improve service offers and bring new
analytics and services to market.
OUTLOOK FOR FULL YEAR 2018
Our sales pipeline for New Zealand/Australia remains strong
as we continue to install units in a number of large fleets for
enterprise customers, as well as expand our offer to light
vehicles and other fleets and respond to customer health and
safety needs as well as eRUC. While half the heavy vehicle RUC
market in NZ has transitioned from paper to electronic, the
remaining 50% of the market offers continued opportunity,
particularly when added to the commercial light vehicle
market. In the US, we expect inside sales and direct sales to
continue to perform strongly, and our focus will remain on the
ELD market. We expect our NZ/Australia business will continue
to deliver strong profits as we work hard to develop our US
business towards a similar profitable growth dynamic.

Steven Newman, CEO

6
Financial Review
Amortisation has increased by 93% on the comparative period
last year. The significant increase in the charge is a result of
the completion of the ELD development and commencing
amortization and the change to the straight line amortisation
method that was disclosed in the 2017 annual report. The
amortisation charge in the comparative interim period was
calculated under the previous basis of amortisation.
Finance Income and Finance Expenses
Net finance costs are largely comprised of the $0.4m of
interest expense. Interest expenses have increased significantly
on the comparative period as a result of the higher level of
debt used to fund unit growth, on the Group’s balance sheet.
FINANCIAL POSITION & CASH FLOW
Property, Plant & Equipment
Additions to Property, Plant and Equipment amounted to
$7.0m for the 6 months to 30 September 2017. $6.7m of
these additions relate to additions to leased assets (units
rented to customers under operating leases) and leased
assets under construction.
Development Assets
During the period a further $4.3m was invested into
Development and Software assets, down slightly from $4.5m
in the comparative 6-month period. In addition to working on
creating a more efficient and scalable platform, investment
has continued to be focused on improving our ELD solution,
developing our driver inspection products for both markets,
and continuing to expand our health and safety offering.
Cash flow
Operating cash flows of $0.04m were impacted by working
capital movements partly due to prepayments required for
inventory purchases.
Cash outflows from investing activities were $11.2m for the six
month period, an increase of 19% on the comparative period
driven largely by the $2.1m increase in payments for property,
plant and equipment as a result of higher leased unit growth.
Cash flows from financing activities were $10.1m up from $5.3m
in the comparative period. The Group secured an interim bank
facility to assist with the funding of the significant growth in
leased assets. The facility has an end date of 3 July 2018 and
has been classified as a current liability at 30 September 2017.
Subsequently the Group has received a committed term sheet
for a new longer term facility and agreements are expected to
be completed in December 2017.
Net tangible assets per share at 30 September 2017 were
$0.20 compared to $0.40 as at 30 September 2016.
DIVIDEND
Consistent with its Dividend Policy, EROAD does not intend to pay
an interim dividend for the period ended 30 September 2017.
FINANCIAL PERFORMANCE
Revenue
Operating revenues of $20.9m for the six months to 30
September 2017 were 35% higher than the comparative period
last year. Total Contracted Units increased by 37% on the
comparative period last year to 59,538.
Our Australian and New Zealand business contributed
revenues of $17.4m, an increase of 32% on the comparative
period last year. Total Contracted Units grew 31% on the
comparative period to 49,802 at 30 September 2017.
The largest contributor to unit sales increasing came from
continued penetration into larger enterprise accounts and
lighter vehicles with our health and safety offering. This has led
to some downwards pressure on recurring revenue per unit.
We have seen an increase in customers taking longer term
contracts (greater than 36 months) resulting in an increase in
Finance Lease revenues.
The North American business contributed revenues of $3.2m
an increase of 71% on the comparative period last year.
Total Contracted Units grew to 9,736 at 30 September 2017
growth of 84% on the comparative period. Unit volumes have
increased each month since the beginning of the financial year
and reflect the momentum building in the ELD market as the
December 2017 mandate approaches.
Expenses
Operating expenses of $16.9m for the six months to 30
September 2017 were 57% higher than the comparative
period. Expenses grew at a higher rate than revenue
primarily due to investment in customer acquisition costs
in North America. Following reaching peak R&D headcount
in the leadup to the launch of our ELD solution, the Group
undertook some restructuring during the period, the benefits
of which were not realised in the six months due to the
related one-off costs incurred. We expect margin to improve
in the second half of the year as the revenue benefits from
the investment in customer acquisition materialise and the
cost savings are realised.
Depreciation costs have increased by 27% on the comparative
period to $4.6m as a result in the growth of leased assets.
During the period management have reduced its assessment
of the economic life of our trailer units (Tubos) and as a result
36-month rentals of Tubos are now treated as finance leases,
and the cost of the units are expensed as a cost of sale on
dispatch rather than being depreciated their useful lives.

7
Condensed Consolidated Interim
Financial Statements
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

8
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
GROUP
30 September
2017
30 September
2016
Notes
Unaudited
$
Unaudited
$
Continuing operations
Revenue20,905,73315,523,839
Expenses2(16,940,596)(10,798,937)
Earnings before interest, taxation, depreciation and amortisation 3,965,1374,724,902
Depreciation7(4,638,052)(3,632,466)
Amortisation8(2,655,749)(1,375,445)
Earnings before interest and taxation(3,328,664)(283,009)
Finance income44,73252,849
Finance expense(482,327)(114,898)
Net financing costs(437,595)(62,049)
Profit/(loss) before tax (3,766,259)(345,058)
Income tax (expense)/benefit10149,750103,836
Profit/(loss) after tax for the six month period attributable to the shareholders(3,616,509)(241,222)
Other comprehensive income(80,808)(167,230)
Total comprehensive income/(loss) for the six month period(3,697,317)(408,452)
Earnings per share - Basic & Diluted (cents)5 (6.03) (0.40)
The above Statement of Condensed Consolidated Comprehensive Income should be read in conjunction with the accompanying notes.

9
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
GROUP
30 September
2017
30 September
2016
31 March
2017
Notes
Unaudited
$
Unaudited
$
Audited
and Restated
$
CURRENT ASSETS
Cash and cash equivalents6829,7066,701,619935,359
Restricted Bank Account9,910,1487,885,3769,208,289
Trade and other receivables8,818,1796,664,1976,800,780
Finance lease receivable11776,654450,292498,142
Current tax receivable18,502358,956361,912
Total Current Assets20,353,18922,060,44017,804,482
NON-CURRENT ASSETS
Property, plant and equipment726,092,42022,637,44123,763,937
Intangible assets830,271,82826,435,87328,662,777
Finance lease receivable111,434,1961,003,922906,265
Deferred tax assets2,084,6122,009,0621,925,352
Total Non-Current Assets59,883,05652,086,29855,258,331
TOTAL ASSETS80,236,24574,146,73873,062,813
CURRENT LIABILITIES
Overdraft6940,393 - 873
Borrowings1317,170,4846,019,311-
Trade payables and accruals4,345,2313,729,5885,632,175
Payable to NZTA9,886,2347,954,1889,243,383
Current tax payable18,743--
Deferred revenue92,520,4292,895,1662,656,518
Employee entitlements1,187,0281,096,9671,201,002
Total Current Liabilities36,068,54221,695,22018,733,951
NON-CURRENT LIABILITIES
Borrowings
--7,029,304
Deferred Revenue91,749,3101,952,2491,743,824
Total Non-Current Liabilities1,749,3101,952,2498,773,128
TOTAL LIABILITIES37,817,85223,647,4692 7, 5 07, 07 9
NET ASSETS42,418,39350,499,26945,555,734
EQUITY
Share capital559,467,16158,819,93258,965,367
Translation reserve(424,197)(276,931)(343,389)
Retained earnings(16,624,571)(8,043,732)(13,066,244)
TOTAL SHAREHOLDERS' EQUITY42,418,39350,499,26945,555,734
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Chairman, 28 November 2017 Executive Director, 28 November 2017

10
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
GROUP
Share Capital Retained Earnings Translation ReserveTotal
Notes$$$$
Balance as at 1 April 2016 - Audited 58,819,932 (7,991,750) (109,701)50,718,481
Loss after tax for the period - (241,222) - (241,222)
Other comprehensive income - - (167,230)(167,230)
Total comprehensive loss for the period - net of tax - (241,222) (167,230) (408,452)
Equity settled share-based payments - 189,240 - 189,240
Balance as at 30 September 2016 - Unaudited 58,819,932 (8,043,732) (276,931) 50,499,269
Balance as at 1 April 2017 - Audited 58,965,367 (13,066,244) (343,389) 45,555,734
Loss after tax for the period - (3,616,509) - (3,616,509)
Other comprehensive income - - (80,808)(80,808)
Total comprehesive loss for period - net of tax - (3,616,509) (80,808) (3,697,317)
Equity settled share-based payments 37,818 58,182 - 96,000
Share capital issued5 463,976 - - 463,976
Balance as at 30 September 2017 - Unaudited 59,467,161 (16,624,571) (424,197) 42,418,393
The above Statement of Condensed Consolidated Changes in Equity should be read in conjunction with the accompanying notes.

11
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
GROUP
30 September
2017
30 September
2016
Notes
Unaudited
$
Unaudited
$
Cash flows from operating activities
Cash received from customers17,951,28812,934,526
Payments to suppliers and employees(17,871,747)(10,069,403)
Interest received44,73252,849
Interest paid(441,444)(33,306)
Tax received 362,153 97,925
Net cash inflow from operating activities12 44,982 2,982,591
Cash flows from investing activities
Payments for purchase of property, plant & equipment(6,966,535) (4,908,627)
Payments for creation of intangible assets(4,264,800) (4,542,359)
Net cash outflow from investing activities (11,231,335) (9,450,986)
Cash flows from financing activities
Loan from / (repayment) bank 10,141,180 5,017,006
Repayment of loans from directors - 279,996
Net cash outflow from financing activities 10,141,180 5,297,002
Net increase/(decrease) in cash held (1,045,173) (1,171,393)
Cash at beginning of the financial period (net of overdraft)934,486 7,873,012
Closing cash and cash equivalents (net of overdraft)(110,687)6,701,619

The above Statement of Condensed Consolidated Cash Flows should be read in conjunction with the accompanying notes.

12
EROAD LIMITED
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017
NOTE 1 • SUMMARY OF SIGNIFICANT GROUP ACCOUNTING POLICIES
The condensed consolidated interim financial statements of EROAD Limited (EROAD), together with its subsidiaries (the “Group”),
as at and for the six months ended 30 September 2017, have been prepared in accordance with the New Zealand equivalent to
International Accounting Standard 34: “Interim Financial Reporting” (NZ IAS 34), and Generally Accepted Accounting Practice in
New Zealand (NZ GAAP). The Group is a profit oriented entity.
EROAD Limited (the “Company”) is a company domiciled in New Zealand, is registered under the Companies Act 1993 and listed on
the NZX main board. The Company is a FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013. The Group
is involved in providing electronic on-board units and software as a service to the transport industry.
The condensed consolidated interim financial statements for the Group are for the period ended 30 September 2017. The financial
statements were authorised for issue by the directors on 28 November 2017 and are unaudited. References in these financial
statements to “”$”” are in New Zealand dollars.
With the exception of the change in presentation of Note 3 Segmental Reporting, the condensed consolidated interim financial
statements have been prepared using the same accounting policies and methods of computation as, and should be read in
conjunction with the financial statements and related notes included in EROAD’s annual report for the year ended 31 March 2017.
The preparation of interim financial statements also requires management to make judgements and assumptions. EROAD has been
consistent in applying the judgements, estimates and assumptions adopted in the annual report for the year ended 31 March 2017.
Critical accounting policies are the same as those set out in the annual report for the year ended 31 March 2017.
Change in presentation of Note 3 Segmental Reporting:
Due to changes in the Group and the reporting information provided to the chief operating decision maker, the Group has changed
its reportable segments from those reported at 31 March 2017. The segment result has also been changed from net profit after tax to
EBITDA. As a result of the change, comparative amounts in the operating segment disclosure have been restated to align with the
current year’s presentation.
Where presentation has changed in the current period comparative amounts have been restated to align with the current year’s
presentation.
There is no seasonality or cyclicality influences on the results of the Group.
The financial statements have been prepared on a going concern basis based on the establishment post 30 September 2017 of a
new and extended financing facility of the current debt and for future funding requirements. The Directors’ opinion is based on the
fact that the Group has refinanced the current facility and extended the overall facility based on the long-term profit and cash flow
forecast and assumptions from the date of signing these accounts.
In preparing the financial statements, the Directors and management have assessed the Group’s ability to fund the business’
operations and meet its short-term obligations, as required by IAS 1 particularly in light of the financial performance of the Group
at 30 September 2017. The group’s debt has been classified as short term for the period ending 30 September 2017, this debt has
been subsequently refinanced (refer note 13), as the debt was classified as current, the Group reported negative working capital of
$17m. In making an assessment of the impact of the reported negative working capital at 30 September 2017, both Directors and
management conducted a comprehensive review of the funding options available to the Group, of which there are several available
to the Group, the financial position of the Group, the carrying value of its assets and the forecast cashflow proceeds and needs.

13
NOTE2 • EXPENSES
GROUP
30 September
2017
30 September
2016
Notes
Unaudited
$
Unaudited
$
Personnel expenses47,639,2554,717,347
Administrative and other operating expenses4,525,7763,603,388
Auditor's remuneration - KPMG101,750100,000
Tax compliance services - KPMG72,85348,791
Tax advisory services - KPMG41,176-
Health & Safety, Advisory - KPMG-74,531
Corporate Finance - KPMG*55,000-
Operating lease expense488,449508,355
Directors fees136,520124,239

During the six months the costs expensed in Research and Development was $1,626,420 (30 September 2016: $2,373,180).
* Gross fees were $172,714 of which $117,714 was capitalised.
NOTE 3 • SEGMENTAL NOTE
The Group has three segments as described below, which are the Group’s strategic divisions. The strategic divisions offer
different services and are managed separately because they require different technology, services and marketing strategies.
For each strategic division, the Group’s CEO (the chief operating decision maker) reviews internal management reports. The
following summary describes the operations in each of the Group’s segments.
EROAD reports selected financial information segmented by geographic location for operating companies and corporate and
development costs.
• Corporate & Development: Corporate head office costs and R&D activities for development of new and existing products
and services
• North America: Operating company serving customers in North America
• Australia & New Zealand: Operating companies serving customers in Australia & New Zealand
Reportable segment information
Information related to each reportable segment is set out below. Segment result represents Earnings before Interest, Taxation,
Depreciation & Amortisation (EBITDA), which is the measure reported to the chief operating decision maker.
Change in segment presentation
Due to changes in the Group and the reporting information provided to the chief operating decision maker the Group has
changed its reportable segments from those reported at 31 March 2017. The segment result has also been changed from net
profit after tax to EBITDA. As a result of the change, comparative amounts in the operating segment disclosure have been
restated to align with the current year’s presentation.
Corporate & DevelopmentNorth AmericaAustralia & New Zealand
30 September
2017
30 September
2016
30 September
2017
30 September
2016
30 September
2017
30 September
2016
Unaudited
$
Unaudited
$
Unaudited
$
Unaudited
$
Unaudited
$
Unaudited
$
Revenue ₁9,181,7936,025,8873,198,2901,875,4441 7, 3 67, 4 3713,173,759
Earnings Before Interest, Taxation,
Depreciation & Amortisation
(3,452,176)(2,516,812)(2,778,866)(1,417,693)11,093,4628,834,074
Total assets53,158,76561,253,9008,088,4484,516,65134,490,76029,320,067
Depreciation (347,684)(295,194)(723,114)(523,961)(3,688,565)(2,986,808)
Amortisation(2,655,749)(1,375,445)----

₁ Revenue in the Corporate & Development segment includes R&D Grant Income of $325,284 (2017:$474,636) and other external revenues of $14,722.
All other revenue for the Corporate & Development segment is inter-segment which is elimiated on consolidation.

14
Reconciliation of information on reportable segments
30 September 201730 September 2016
Unaudited
$
Unaudited
$
Revenue
Total revenue for reportable segments29,747,52021,075,090
Elimination of inter-segment revenue(8,841,787)(5,551,251)
Consolidated revenue20,905,73315,523,839
EBITDA
Total EBITDA for reportable segments4,862,4204,899,569
Elimination of inter-segment EBITDA(897,283)(174,667)
Consolidated EBITDA3,965,1374,724,902
Depreciation
Total depreciation for reportable segments(4,759,363)(3,805,963)
Elimination of inter-segment profit121,311173,497
Consolidated Depreciation(4,638,052)(3,632,466)
Total assets
Total assets for reportable segments95,737,97395,090,618
Elimination of inter-segment balances(15,501,728)(20,943,880)
Consolidated total assets80,236,24574,146,738
Allocation of Development Assets
Included within Total Assets are Development Assets of $27,177,895 at 30 September 2017 (30 September 2016: $24,020,743) for
internal reporting purposes these are allocated to the Corporate & Development segment based on the ownership of intellectual
property. The amortisation for these assets is also presented in the Corporate & Development segment.
For certain other purposes, the Development Asset is allocated to the operating segments that the Development Asset relates to,
or if the Development Asset is developed for use globally across all operating companies the asset is allocated to segments based
on the proportionate share of the Group’s Contracted Units. At 30 September 2017 there was $16,873,215 (30 September 2016:
$15,038,588) of global Development Assets that have been allocated across segments based on the Contracted Units.
GROUP
30 September 201730 September 2016

Unaudited
$
Unaudited
$
Development Assets allocated to North America
12,006,250 9,613,243
Development Assets allocated to Australia & New Zealand 15,171,645 14,407,500
Total Development Assets 27,177,895 24,020,743
NOTE 4 • PERSONNEL EXPENSES
GROUP
30 September 201730 September 2016

Unaudited
$
Unaudited
$
Employment expenses - excluding capitalised lease establishment costs
10,817,114 8,443,054
Salaries and wages capitalised to Development and Software Assets (3,177,859) (3,725,707)
7,639,255 4,717,347
NOTE 3 • SEGMENTAL NOTE (CONTINUED)

15
NOTE 5 • PAID UP CAPITAL
All issued shares are fully paid up and have equal voting rights and share equally in dividends and surplus on winding up.
GROUP
Number of
ordinary shares
Issue price
$
Issued Capital
$
At 31 March 2016 (audited)60,168,86458,819,932
Issue of shares to staff under LTI/LTS schemes76,796$2.83217,678
Held in trust as treasury stock (217,678)
At 30 September 2016 (unaudited)60,245,66058,819,932
Vesting of shares under LTS scheme145,435
At 31 March 2017 (audited)60,245,66058,965,367
Issue of shares to staff under LTI schemes490,000$2.151,053,500
Held in trust as treasury stock (1,053,500)
Vested under LTS scheme37,818
Shares issued to employees for 2017 bonus281,351$1.65463,976
At 30 September 2017 (unaudited)61,017,01159,467,161

At 30 September 2017 there was 61,017,011 authorised and issued ordinary shares (30 September 2016: 60,245,660). 893,440
shares are held in trust for employees in relation to the long-term incentive and service plan and are accounted for as treasury
stock (30 September 2016: 468,092).
The calculation of both basic and diluted earnings per share at 30 September 2017 was based on the profit attributable
to ordinary shareholders of ($3,616,509) (30 September 2016: ($241,222)). The weighted number of ordinary shares was
59,982,002 (30 September 2016: 59,777,574) for basic earnings per share, and 60,001,111 for diluted earnings per share (30
September 2016: 59,777,574).
Other components of equity include:
• Translation reserve - comprises foreign currency translation differences arising from the translation of financial statements of
the Group’s foreign subsidiaries into New Zealand Dollars.
• Retained earnings - includes all current and prior period retained profits and share-based employee remuneration.
NOTE 6 • CASH AND CASH EQUIVALENTS (NET OF OVERDRAFTS)
GROUP
30 September 201730 September 201631 March 2017

Unaudited
$
Unaudited
$
Audited
$
Cash and bank829,7066,701,619935,359
Overdraft(940,393)-(873)
(110,687)6,701,619934,486

16
NOTE 7 • PROPERTY, PLANT AND EQUIPMENT
GROUP
Leased
equipment
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$
Year ended 31 March 2017 - Audited
Opening net book amount18,735,45490,216725,706489,273548,215772,41621,361,280
Additions10,195,04971,1923,559123,608101,391172,86110,667,660
Disposals---(90,627)(24,736)-(115,363)
Depreciation charge(7,136,241)(33,210)(132,703)(142,712)(184,719)(456,103)(8,085,688)
Depreciation recovered---34,9196,238-41,157
Effect of movement in exchange rates(75,286)-(17,415)(313)(8,231)(3,864)(105,109)
Closing net book amount21,718,976128,198579,147414,148438,158485,31023,763,937
Cost40,607,259347,9201,105,111806,152937,0042,525,00346,328,449
Accumulated depreciation(18,888,283)(219,722)(525,964)(392,004)(498,846)(2,039,693)(22,564,512)
Net book amount21,718,976128,198579,147414,148438,158485,31023,763,937
GROUP
Leased
equipment
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$
Six months ended 30 September 2016 - Unaudited
Opening net book amount18,735,45490,216725,706489,273548,215772,41621,361,280
Additions4,837,31228,4893,56039,55162,45569,1225,040,489
Disposals---(65,127)(23,947)-(89,074)
Depreciation charge(3,173,531)(15,127)(66,486)(69,725)(88,035)(219,562)(3,632,466)
Depreciation recovered---20,1996,039-26,238
Effect of movement in exchange
rates
(14,198)-(33,154)(589)(14,796)(6,289)(69,026)
Closing net book amount20,385,037103,578629,626413,582489,931615,68722,637,441

Cost35,262,813305,2181,085,985747,1 7 3888,7932,416,59240,706,574
Accumulated depreciation(14,877,776)(201,640)(456,359)(333,591)(398,862)(1,800,905)(18,069,133)
Net book amount20,385,037103,578629,626413,582489,931615,68722,637,441
GROUP
Leased
equipment
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$
Six months ended 30 September 2017 - Unaudited
Opening net book amount21,718,976128,198579,147414,148438,158485,31023,763,937
Additions6,672,577117,365-97,21858,79350,4446,996,397
Disposals---(26,083)-(3,690)(29,773)
Depreciation charge(4,100,948)(32,175)(65,743)(82,231)(106,595)(250,360)(4,638,052)
Depreciation recovered---18,546-86619,412
Effect of movement in exchange
rates
(10,425)-(5,477)-(2,409)(1,190)(19,501)
Closing net book amount24,280,180213,388507,927421,598387,947281,38026,092,420
Cost47,259,823465,2871,097,936877,287991,7802,569,43753,261,550
Accumulated depreciation(22,979,643)(251,899)(590,009)(455,689)(603,833)(2,288,057)(27,169,130)
Net book amount24,280,180213,388507,927421,598387,947281,38026,092,420
Included in the Leased equipment is equipment under construction to be leased of $5,361,693 (31 March 2017: $4,711,866 September 2016: $3,913,961).

17
NOTE 8 • INTANGIBLE ASSETS
GROUP
PatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Year ended 31 March 2017 - Audited
Opening net book amount15,00132,57620,825,0492,396,33323,268,959
Additions--8,655,609729,8459,385,454
Amortisation charge(350)-(3,283,232)(708,054)(3,991,636)
Closing net book amount14,65132,57626,197,4262,418,12428,662,777
Cost17,80032,57632,685,6144,006,85936,742,849
Accumulated amortisation(3,149)-(6,488,188)(1,588,735)(8,080,072)
Net book amount14,65132,57626,197,4262,418,12428,662,777
GROUP
PatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Six months ended 30 September 2016 - Unaudited
Opening net book amount15,00132,57620,825,0492,396,33323,268,959
Additions--4,237,617304,7424,542,359
Amortisation charge(175)-(1,041,923)(333,347)(1,375,445)
Closing net book amount14,82632,57624,020,7432,367,72826,435,873
Cost17,80032,57628,267,6223,581,75531,899,753
Accumulated amortisation(2,974)-(4,246,879)(1,214,027)(5,463,880)
Net book amount14,82632,57624,020,7432,367,72826,435,873
GROUP
PatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Six months ended 30 September 2017 - Unaudited
Opening net book amount14,65132,57626,197,4262,418,12428,662,777
Additions--3,204,0691,060,7314,264,800
Amortisation charge(175)-(2,223,600)(431,974)(2,655,749)
Closing net book amount14,47632,57627,177,8953,046,88130,271,828
Cost17,80032,57635,889,6835,067,59041,007,649
Accumulated amortisation(3,324)-(8,711,788)(2,020,709)(10,735,821)
Net book amount14,47632,57627,177,8953,046,88130,271,828
The useful lives of the Group’s Intangible Assets are assessed to be finite. Assets with finite lives are amortised over their
useful lives and tested for impairment whenever there are indications that the assets may be impaired. Where an indicator
of impairment exists the Group makes a formal assessment of the recoverable amount. Where the carrying value of an asset
exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable
amount is the greater of fair value less costs to sell of the assets value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

18
NOTE 9 • DEFERRED REVENUE
The Group has dealer agreements with third-party financiers. Under the terms of the dealer agreements, the third parties enter
into a lease agreement with the Group customers (where agreed by all parties) and the third party makes an upfront payment
for the use of the Group hardware products. Under the revenue recognition policy for hardware income it is deemed that the
Group in substance retains the significant risks and rewards of ownership of the hardware assets. Revenue relating to hardware
is therefore accounted for an operating lease and recognised in the statement of comprehensive income on a straight-line basis
over the term of the lease, and any amounts received in advance are included as deferred revenue. Under the terms of the dealer
agreements, the Group would be liable to repay the third parties in the event the customer operating lease was cancelled prior
to the end of the agreed term.
In addition, the Group provides hardware to clients under long-term rental agreements. These are accounted for as operating
leases. If the Group receives any up-front payments for installation fees, these amounts are initially deferred and recognised in
the statement of comprehensive income over the life of the rental agreement.
GROUP
30 September
2017
30 September
2016
31 March
2017
Unaudited
$
Unaudited
$
Audited
$
Opening balance
4,400,3425,374,6475,374,647
Amounts deferred during the period1,436,1311,547,9122,866,842
Amount recognised in the Statement of
Comprehensive Income
(1,566,734)(2,075,144)(3,841,147)
Closing balance4,269,7394,847,4154,400,342
At 30 September 2017, $2,520,429 is expected to be recognised in the Statement of Comprehensive Income in the next twelve
months and has therefore been classified as a current on the balance sheet (31 March 2017: $2,656,518, 30 September 2016:
$2,895,166).
NOTE 10 • INCOME TAX EXPENSE
GROUP
30 September 201730 September 2016

Unaudited
$
Unaudited
$
(a) Reconciliation of effective tax rate
Profit/(Loss) before income tax(3,766,259)(345,058)
Income tax using the Company’s domestic tax rate of 28% (1,054,552)(96,616)
Non-deductible expense/(non-assessable income)4,2059,692
Temporary differences
Losses and timing differences (recognised)/not recognised891,993(22,155)
Effect of different tax rates8,6045,243
Income tax expense/(benefit)(149,750)(103,836)

19
NOTE 11 • LEASES AS A LESSOR
Operating leases
The Group leases out products on long-term rentals, usually for a period of 36 months. At period end, the future minimum lease
payments (future contracted income) under non-cancellable operating leases are receivable as follows:
GROUP
30 September 201730 September 201631 March 2017
Unaudited
$
Unaudited
$
Audited
$
Future minimum lease payments
Not later than one year13,162,99610,272,62210,791,554
Later than one year not later than five years14,708,65810,560,90110,346,171
27,871,65420,833,52321,137,725
During the period $16,297,290 was recognised as revenue in the statement of comprehensive income in relation to long-term
rentals accounted for as operating leases and the related SaaS revenue (30 September 2016: $12,132,872).
Finance leases
The Group, on rare occasions, leases out hardware products for a period longer than the usual 36 month rental. In such
circumstances the substance of the transaction is assessed and if it is considered that substantially all the risks and rewards
incident to ownership have been transferred, the arrangement is accounted for as a finance lease.

In addition, on 1 April 2017 the Group revised its estimate of the expected useful life of its trailer hardware units (Tubos) from 5
years to 3 years to reflect the additional wear and tear the units are subjected to. This has resulted in all 36-month rental lease
agreements for Tubos being accounted for as finance leases in the current period.
At period end, the future minimum lease payments under non-cancellable leases are receivable as follows.
Gross investment
in the lease
Unearned
finance income
Present value of minimum
lease payments
30 September
2017
30 September
2016
31 March
2017
30 September
2017
30 September
2016
31 March
2017
30 September
2017
30 September
2016
31 March
2017
Unaudited
$
Unaudited
$
Audited
$
Unaudited
$
Unaudited
$
Audited
$
Unaudited
$
Unaudited
$
Audited
$
Not later than
one year
858,1844 97, 2 8 9542,35581,53046,99744,213776,654450,292498,142
Later than
one year not
later than five
years
1,520,5671,052,177944,98886,37148,25538,7231,434,1961,003,922906,265
2,378,7511,549,4661,487,343167,90195,25282,9362,210,8501,454,2141,404,407
During the period $1,112,054 (30 September 2016: $610,836) was recognised as revenue in relation to long-term rentals
accounted for as finance leases. The net impact of finance leases recognised in the statement of comprehensive income was
$734,489 (30 September 2016: $501,305).
Total Future Contracted Income
Amounts disclosed above in relation to future minimum lease payments (operating leases) and gross investment in leases
(finance leases) only relate to the hardware element of long-term rentals accounted for as leases. The Total Future Contracted
Income (hardware and SaaS) under non-cancellable long-term agreements at 30 September 2017 is $75,332,046 (31 March 2017:
$58,538,888, 30 September 2016: $52,776,991). EROAD expects the profile of future recognition of this income to be consistent
with the profile of the future minimum lease payments for the hardware element of this income which is outlined above for
operating leases.

20
NOTE 12 • RECONCILIATION OF CASH FLOWS
GROUP
30 September 201730 September 2016

Unaudited
$
Unaudited
$
Reconciliation of operating cash flows with reported profit/(loss) after tax:
Profit/(loss) after tax for the six month period attributable to the shareholders(3,616,509)(241,222)
Add/(less) non-cash items
Tax asset recognised(159,260)(56,356)
Depreciation and amortisation7,293,8015,007,911
Other non-cash expenses/(income)15,19222,010
7,149,7334,973,565
Add/(less) movements in other working capital items:
Decrease/(increase) in trade and other receivables(2,017,399)(1,551,552)
Decrease/(increase) in finance lease receivables(806,443)(428,937)
Decrease/(increase) in current tax receivable343,41097,925
Decrease/(increase) in current tax payable18,743-
Increase/(decrease) in deferred income(130,603)(527,232)
Increase /(decrease) in trade payables and accruals(895,950)660,044
(3,488,242)(1,749,752)
Net cash from operating activities44,9822,982,591
NOTE 13 • BORROWINGS
On 3 July 2017, in order to support funding requirements in connection with the Group’s growth and to manage the related working
capital requirements, the Group entered into a Multi-Option Credit Facility Agreement with the Bank of New Zealand (BNZ).
$10,500,000 Term Loan – to restructure existing term facilities. The Term Loan has a term of 1 year with the facility having an end date
of 3 July 2018. The interest rate is variable based on the 3-month BKBM bid plus a margin of 2.85%. Principal and interest payments are
made quarterly in line with a 30 month repayment profile.
$19,000,000 Committed Cash Advance Facility – to finance the up-front costs in connection with securing Future Contracted Income.
The Committed Cash Advance Facility has a 1 year term with the facility having an end date of 3 July 2018. Structurally the facility is
paid down and redrawn (revolving credit) each time the Company presents a certificate outlining the Group’s growth in new Future
Contracted Income on a monthly basis. For drawings in New Zealand Dollars of a 1-month duration, the interest rate is the 1-month BKBM
plus margin of 2.25%. For drawings in USD of a 1-month duration, the interest rate is the 1 month US LIBOR plus a margin of 2.25%.
$3,000,000 Overdraft Facility – for general working capital purposes. This is an on demand facility with the interest rate based on the
Market Connect Overdraft Prime Rate plus a margin of 1%.
EROAD’s operating covenants to support the above facilities include Loan to Total FCI Ratio, Interest Cover Ratio, Total Assets
(Obligators) to Total Assets (Group) ratio, and an umbrella limit on the aggregate of all facilities being below $25,500,000. EROAD was
compliant with all covenants at 30 September 2017.
The security package for the Multi-Option Credit Facility Agreement includes an all obligations cross-guarantee granted by EROAD
Australia Pty Limited and EROAD Inc in favour of the BNZ in respect of the obligations of EROAD Limited, and a General Security
Agreements granted by EROAD Limited, EROAD Inc and EROAD Australia Pty Limited in favour of the BNZ as secured parties.
The Group has positive operating cash flows which funds the day-to-day servicing and support of its existing customer base. The Group
plans to fund future research and development spend with excess operating cash flows of the business, whilst looking to fund the capex
needed for future growth in leased units with debt funding facilities.
Since 30 September, the Group has received a legally binding committed term sheet for a new growth funding facility with a term
through to April 2019, it is expected that the documentation will be finalised for this facility in December 2017.

21
NOTE 13 • BORROWINGS (CONTINUED)
Terms and debt repayment schedule
Nominal
Interest
Year of
Maturity
30 Sept 2017
Face Value
30 Sept 2017
Carrying
amount
30 Sept 2016
Face Value
30 Sept 2016
Carrying
Amount
31 Mar 2017
Face Value
31 Mar 2017
Carrying
Amount
Term Loans
4.84%201810,629,41810,629,4186,019,3116,019,3117,029,3047,029,304
NZ Growth Funding
- Committed Cash
Advance Facility
4.25%20184,791,0184,791,018----
US Growth Funding
- Committed Cash
Advance Facility
3.49%20181,750,0481,750,048----
17,170,48417,170,4846,019,3116,019,3117,029,3047,029,304
EROAD Limited also has an on demand overdraft facility of $3,000,000 of which $940,393 has been drawn at 30 September 2017
(31 March 2017: $873; 30 September 2016: Nil).
NOTE 14 • RELATED PARTY TRANSACTIONS
Related party transactions are consistent in nature with those reported at 31 March 2017.
NOTE 15 • CAPITAL COMMITMENTS
The capital expenditure commitments are in line with those at 31 March 2017.
NOTE 16 • CONTINGENT LIABILITIES
The contingent liabilities are in line with those at 31 March 2017.
NOTE 17 • EVENTS SUBSEQUENT TO BALANCE DATE
There are no reportable events subsequent to balance date other than the receipt of a committed term sheet for a new growth facility
as outlined in Note 13 - Borrowings. (30 September 2016: Nil, 31 March 2017: Nil)

© 2017 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Review
Report
To the shareholders of EROAD Limited
Report on the condensed consolidated interim financial statements
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the condensed
consolidated interim financial statements on pages 8 to
21 do not:
i.present fairly in all material respects the
Group’s financial position as at 30 September
2017 and its financial performance and cash
flows for the 6 month period ended on that
date; and
ii.comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
condensed consolidated interim financial statements
which comprise:
—the condensed consolidated statement of financial
position as at 30 September 2017;
—the condensed consolidated statements of
comprehensive income, changes in equity and cash
flows for the 6 month period then ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of condensed consolidated interim financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance engagement. The
auditor performs procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
As the auditor of EROAD Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to the audit
of the annual financial statements.
Our firm has also provided other services to the group in relation to tax compliance, tax advisory, and corporate finance.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms within
the ordinary course of trading activities of the business of the group. These matters have not impaired our independence
as reviewer of the group. The firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might state to
the shareholders those matters we are required to state to them in the Independent Review Report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
shareholders as a body for our review work, this report, or any of the opinions we have formed.
22

23







Responsibilities of the Directors for the condensed consolidated interim financial
statements
The Directors, on behalf of the group, are responsible for:
—the preparation and fair presentation of the condensed consolidated interim financial statements in accordance with
NZ IAS 34 Interim Financial Reporting;
—implementing necessary internal control to enable the preparation of condensed interim consolidated financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the condensed consolidated interim
financial statements
Our responsibility is to express a conclusion on the condensed consolidated interim financial statements based on our
review. We conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether anything
has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material
respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance
with International Standards on Auditing (New Zealand). Accordingly we do not express an audit opinion on these
condensed consolidated interim financial statements.
This description forms part of our Independent Review Report.


KPMG
Auckland
28 November 2017

24

25
ROGER ALLEY
Safety Manager
Blue Line Transportation/Cascade Petroleum
Portland, OR

eroad.com
EROAD
EROAD Limited
260 Oteha Valley Road
Albany, Auckland 0632
REGISTRAR
Computershare Investor
Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland 0622
UNITS ON DEPOT
The number of EROAD devices installed
in vehicles and subject to a service contract
with a customer.
UNITS PENDING
INSTALLATION
The number of EROAD devices subject
to a service contract with a customer
but not yet installed.
TOTAL CONTRACTED
UNITS (TCU)
TCU is made up of Units on Depot plus
Units Pending Installation.
LEGAL ADVISERS
TO EROAD
Chapman Tripp
Level 35, ANZ Centre
23-29 Albert Street, Auckland 1010
AUDITOR
KPMG
KPMG Centre
18 Viaduct Harbour Avenue, Auckland 1010
FUTURE CONTRACTED
INCOME (FCI)
Total revenue to be earned from existing
customer contracts in future accounting periods.
RETENTION RATE
The number of Total Contracted Units at the
beginning of the 12 month period and retained
on Depot at the end of the 12 month period, as
a percentage of Total Contracted Units at the
beginning of the 12 month period.
ANNUALISED HEAVY
TRANSPORT RUC
The New Zealand Road User Charges for
vehicles over 3,500kg purchased through
EROAD for the month, multiplied by 12.
Directory
Non GAAP Measures

---

1
EROAD HALF YEAR 2018 ANNOUNCEMENT AND UPDATE– 28 November
2017
EROAD achieves record sales in New Zealand and US markets
Integrated technology, and services provider EROAD Limited says it has enjoyed record sales
growth in both its foundation New Zealand market and its growing North American market.
Highlights for 6 months to September 2017 and business update
• Revenue at $20.9 million up by 35% over same period last year
• EBITDA of $4.0 million during the period underpinned by EBITDA of the New
Zealand/Australia business which reached $11.1 million during the period
• Net Loss before tax $3.7 million, driven by investment in US sales activity
• Total Contracted Units in New Zealand/Australia 49,802 up by 31% since September 2016
• Total Contracted Units in North America 9,736 up by over 84% since September 2016
• Q1 and Q2 of FY18 were both record sales quarters for the New Zealand and North
American markets
• Customer Retention Rate remains strong at 98%
• Future Contracted Income grew to $75 million during the period up $17m or 29% in 6
months
• Secured new credit facility from the BNZ totaling $33.4 million for initial term of 12 months
with initial drawdown in July 2017. Post September 2017, EROAD has subsequently signed a
credit approved facility letter with the BNZ to further extend its facilities by approximately
$16 million, to further support expected growth
• Strong momentum has continued in the business with total contracted units increasing in
October 2017 by 1,133 units for the New Zealand/Australia business and 1,166 units for the
North American business
• As part of EROAD’s continuing focus on growth in the US, EROAD has engaged First NZ
Capital to undertake a strategic review of its North American business. The review is
focused on evaluating options to further capture the compelling growth opportunity in
North America.
Half-year to 28 September 2017
EROAD Limited (EROAD) (NZX:ERD) reports record unit and revenue growth which delivered
strong net profit in the New Zealand & Australia business to support both head office costs and
losses in the North American business, as EROAD pursued revenue growth in line with its strategy
and business plans for North America.
Chairman of the Board Michael Bushby said the investment made in strategy and business planning
for the US business had begun to show returns with the US business selling 3,634 units in the six
months to September 2017 compared with 801 units for the preceding 6 months.

2
“The US business invested in sales capability in line with our business plan which saw the US
business grow total contracted units by 81% and incur a net loss of $3.1 million,” Mr Bushby said.
“While our investment in sales capability and a more targeted strategy is generating positive
results, we continue to focus on growing the total contracted units to achieve scale and move
towards breakeven and profitability for the US business,” he said.
“It is important to acknowledge the EROAD team for what have been significant achievements in
the six months, particularly as it has been a challenging time for them, with a restructure of the
business, and saying farewell to a number of good people who had helped us on our journey so far.”
Operational summary
New Zealand & Australia
EROAD’s New Zealand business enjoyed two record sales quarters during the six months to
September 2017, and finished the period with a strong pipeline of demand for the second half of
FY18.
Chief Executive Steven Newman said health and safety services, such as driver behaviour, are now
as strong a driver of sales as electronic Road User Charges (eRUC) services, which continue to grow
well. The company continues to engage with an ever more diverse range of large and small
customers as fleet owners and managers begin to appreciate the positive business outcomes that
can be achieved by ensuring safety within their businesses.
Mr Newman said, “Our customers are improving health and safety thanks to services that support
safer driver behaviour. And road planners and policy makers now have high quality network data
from the activity of around 50,000 vehicles on our platform. Road transport accounts for around
15% of fuel used in New Zealand, and our customers are achieving, on average, fuel savings of
around six per cent, representing a significant cost saving and carbon saving to the economy.”
Mr Newman said he was particularly pleased that two of New Zealand’s leading companies, Fulton
Hogan and Waste Management, had invested in new, sophisticated EROAD in-vehicle technology,
with ~4,500 Ehubo2 units being installed in their transport fleets to further improve their
management of health and safety.
In New Zealand around half of all heavy transport Road User Charges (RUC) is now paid and
collected electronically. This 50% market conversion, since EROAD launched the world’s first GPS-
based road user charging system in New Zealand in 2009, represents a rapid eCommerce adoption
by our road transport sector. EROAD collects 80% of the electronic RUC in New Zealand and has
now collected more than $1.7 Billion since launch.
“The profitable, cash-generating performance of our New Zealand business continues to provide
the platform for our investment in North America.
North America
As the ELD (electronic logging device) deadline nears and EROAD benefits from the preceding
investment in sales, first half growth in North American sales were at their highest since EROAD
entered the market in 2014. 3,634 units were added in the six months, more than double the total
number added in the last full financial year to March 2017 (1,601).
During the six months, legal appeals against the ELD mandate were thrown out, and a last-ditch
attempt to have Congress halt implementation of the mandate was dismissed. Fleets that must

3
meet the December 2017 deadline are urgently seeking a solution, and tend to be price rather than
value focused.
Fleets whose vehicles already have an automatic on-board recording device (AOBRD) have two
years’ grace (18 December 2019), and these operators are looking for more robust and value-
oriented solutions, and are likely to consider a solution when their existing technology leases come
up for renewal, Mr Newman said.
“EROAD remains very focused on US tax compliance and health and safety products, and in
particular the ELD market for the next two years and beyond,” he said.
“Our US business plan implemented last year sought to expand EROAD’s reach beyond the
Northwest states where EROAD had been concentrating. I am pleased to report that 20%, or 2,000,
units out of our total units in the US are now outside the Northwest - from Florida to Illinois.”
Mr Newman said EROAD remained focused to lifting sales and therefore the scale of the US
business to create a high-growth, self-sustaining business to match its New Zealand operation in
performance.
As part of this focus on growth in the US, EROAD has engaged First NZ Capital to undertake a
strategic review of its North American business. The review is focused on evaluating options to
further capture the compelling growth opportunity in North America. We will be looking for
potential partnership, joint venture and other opportunities that can help us expand our distribution
footprint in the US.
Outlook for full year to March 2018
EROAD will continue to focus on growing its New Zealand business to meet the needs of an ever
more diverse group of customers, as well as growing its North American business to take advantage
of the ELD opportunity and build the scale for EROAD as a whole to move toward breakeven in the
2019 financial year.
Growth in the New Zealand business is expected to remain very strong given the known pipeline
the EROAD team is working on. The company also expects growth to continue in North America
given the need of many customers to become ELD compliant. It is expected that price will be a key
driver in the US as late adopters focus more on meeting the ELD deadline than the extra value that
can be extracted from new telematic services. Mr Newman said the company expects value will
become more important in 2018 when businesses with existing hardware come up for renewal at
the end of their current leases, and look to renew with an ELD compliant solution.
EROAD will continue to invest in improved back office and customer support systems to maintain
growth and to work with customers to bring new analytics and improved services to market.
EROAD put in place a new credit facility with the BNZ for an initial term of 12 months in July.
EROAD has now subsequently signed a credit approved facility letter with the BNZ, to further
extend this facility. Under this extension, the growth facility increases by approximately $14 million
and the overdraft facility increases to $5 million from $3 million. In addition, the term increases
through to 1 April 2019.
The new debt facilities will be used to provide for the funding needs of expected growth and to
support the financing of new units leased to customers in New Zealand, Australia and the United
States, which will be drawn down in accordance with the execution of new rental contracts.

4
Consistent with its dividend policy, EROAD does not intend to pay an interim dividend for the year
31 March 2018.
October 2017 Total Contracted Units
EROAD is pleased to announce that the strong momentum in the business experienced over the six
months to September 2017 has continued in October 2017. Total contracted units increased by
1,133 units for the New Zealand/Australia business and 1,166 units for the North American business.

Financial Statements
Attached to this release are the unaudited financial statements, for the six months ended 30
September 2017 and the comparative financial information for the six months ended 30 September
2016. These financial statements have been prepared under the New Zealand equivalents to
International Financial Reporting Standards and reviewed by KPMG.
About EROAD
EROAD modernises road charging and tax compliance and health and safety compliance for road
transport by replacing paper-based systems with easy-to-use electronic systems that also improve
fleet management. The company is headquartered in Auckland, New Zealand, and listed on the
New Zealand Exchange (NZX). Its US business is based in Portland, Oregon, serving customers with
vehicles operating in every US mainland state, growing outward in concentration from the
Northwest. In 2009 EROAD introduced the world’s first nationwide electronic road user charging
(eRUC) system in New Zealand. Currently half of all heavy transport RUC is collected electronically,
representing a rapid transition to e-commerce on a voluntary, industry-led basis, due to the cost-
savings and benefits to customers. EROAD is also a leading provider of health and safety
compliance services, including vehicle management and driver behaviour and performance
measures.

For more information please visit www.eroad.com.

For a detailed description of EROAD’s business, and terms including Total Contracted Units, Future
Contracted Income and Retention Rate, which are non GAAP measures used by EROAD to manage
the business, please refer to the Appendix of the November 2017 Half Year Presentation.

Contact: Steven Newman CEO on +64 9 9274713.

Attachment: Summary financial statements

5

EROAD Limited
Results for announcement to the market
Reporting period Six months to 30 September 2017
Previous reporting period Six months to 30 September 2016


Amount (000s) Percentage change
Sales revenue from ordinary
activities
NZ$20,906 35%
Profit from ordinary activities after
tax attributable to security holders
NZ$(3,617) (1,401%)
Net profit attributable to security
holders
NZ$(3,617) (1,401%)

Interim dividend Amount per security Imputed amount per
security
No dividend is proposed
Record date Not applicable
Dividend payment date Not applicable

Audit The financial statements attached to this announcement
have not been audited.

Comments Refer to accompanying pages for commentary.

Net tangible assets per security 30 September 2017 30 September 2016
$0.20 $0.40