EROAD Half Year results to end of September 2018

TEL +64 9 927 4700 PO Box 305 394
FAX +64 9 927 4701 Triton Plaza, North Shore 0757 Page 1
FREE 0800 4-EROAD Auckland, New Zealand eroad.co.nz

EROAD 1H19: Focus on investment for next level of growth
26 November 2018
Integrated technology and services provider EROAD Limited (NZX:ERD) announced continued progress
in the first half of the financial year to 30 September 2018, whilst it invested to scale for the next level of
growth.
Highlights for the six months to 30 September 2018, and business update
1

• Revenue rose to $28.5m, up 46% over the same period last year, and operating costs were up
38% to $22.3 million
• EBITDA of $6.2m during the period, up 81% compared to $3.4m (restated) in the first half of
FY2018
• Net loss before tax of $3.6m, influenced by continued investment in the business, including a
number of operating expenses, as well as changes to accounting treatment
• Total Contracted Units in New Zealand/Australia grew to 65,285, up 31% on the same period last
year
• Total Contracted Units in North America rose to 20,955, up 115% on 30 September 2017 (36%
annualised growth over the last six months)
• Customer retention rate remains strong at 98%
• Future Contracted Income grew to $115m during the period, up 40% compared to the same
period last year.
• New service launched for civil contracting and construction sector enabling easy tracking for
powered and non-powered equipment and assets and efficient contract reporting
• Solid pipeline for NZ business for second half FY19 with enterprise customers signed during the
six months for installations continuing into 2019
• Enhanced and expanded the senior leadership team at the EROAD group level and in the US to
support future growth
• Graham Stuart assumed chairmanship of EROAD’s board of directors, succeeding Michael
Bushby, who remains on the board
• EROAD won Exporter of the Year to the USA in the $1 million to $10 million category at the
American Chamber of Commerce in New Zealand AmCham DHL Express Success & Innovation
Awards.
• EROAD won EY Debt Deal of the Year at the INFINZ 2018 industry awards for its $48 million
multi-option credit facility with BNZ to support customer leasing of in-vehicle units
• EROAD included at #7 on the Master of Growth Index in the Deloitte’s Fast 50 with 415% growth
between FY14 and FY18
Half-year to 30 September 2018
EROAD’s total contracted units grew to 86,240, up 45% on the same period last year, supporting
revenue growth of 46%. During the period, the company achieved an EBITDA margin of 22.0%,
compared to 17.5% a year ago. EROAD’s loss of $3.6 million before tax for the half-year reflects
continued investment and higher operating expenses during the six-month period (including some

1
Note the numbers presented above reflect EROAD’s new accounting treatment, explained in more detail
below and in the Financial Statements included within EROAD’s half-year report.

Page 2 eroad.co.nz
special items as outlined in the accompanying results presentation) as well as the adoption of new
accounting standards. EROAD’s Future Contracted Income rose 40% on a year ago to $115 million.
Alongside continued revenue growth, EROAD faced higher costs during the six months as the company
boosted its senior leadership team (including an expansion of its US team), to enable higher levels of
growth. EROAD also invested in laying the groundwork for its relaunch in Australia and commenced an
upgrade of its business systems. In addition, there were one-off professional services fees incurred due
to conducting detailed due diligence on a possible acquisition which ultimately the company decided not
to pursue.
EROAD Chairman Graham Stuart said “New Zealand momentum remains strong and has given us the
confidence to extend our market presence in Australia. We are happy with the performance of our New
Zealand business, but we can’t afford to be complacent as the market is changing and EROAD needs to
invest to keep ahead.”
“Unit sales in North America fell short of our expectations for the six months,” he said. “While
disappointed, we did anticipate a moderation in growth following the rush leading into the ELD
December 2017 deadline and the elevated quarter thereafter. Early progress from our strategy refresh
gives us confidence in future plans, and we continue to track towards positive operating cash flows in the
US.”
“This year we are investing ahead of revenue globally to put the people, systems and processes in place
for the next stage of EROAD’s growth. This investment is consistent with the plan outlined at the time of
the capital raise completed in February 2018. Our focus is on an ability to continue to scale quickly, as
well as R&D, to continue to improve our value proposition to existing customers and to target new
market segments,” he said.
Operational summary
New Zealand & Australia
Total contracted units in New Zealand and Australia grew to 65,285 at 30 September 2018, a growth rate
of 31% since 30 September 2017. Enterprise clients signed late in the period, and with units yet to be
installed, provide a solid pipeline for the second half of the year. Customer retention remains strong,
with high levels of contract renewals by enterprise customers. In addition, almost half of customers
renewing their service plans are upgrading to Ehubo2 units, enabling the provision of additional services,
including health and safety services.
EROAD chief executive Steven Newman said “New Zealand growth remained solid in both electronic
RUC and health and safety services, particularly among enterprise customers with sizeable fleets, as well
as among local bodies and council fleets.”
During the six months EROAD reached a decision to re-launch in the Australian market.
“We have recruited dedicated sales staff in key states in Australia to take advantage of what we see as a
growing opportunity in this market, while at the same time leveraging heavily off our New Zealand
capabilities” said Mr Newman.
“We believe the time is right for a measured, proactive expansion in Australia. The health and safety
compliance environment, including chain of responsibility rules, is as relevant as it is in New Zealand.
Moves towards other regulatory services, such as fringe benefit tax, fuel tax credits and electronic work
diaries, are gaining momentum. Further out, interest in road user charging is increasing”, said Mr
Newman.

Page 3 eroad.co.nz
North America
EROAD commenced its North American strategy refresh during the six months (completed in October
2018) to identify submarkets to focus on where its capabilities are well matched, and which offer higher
returns on investment.
Growth in unit sales moderated from last year’s very high levels. Although Total Contracted Units in NA
grew to 20,955 units, up 115% since 30 September 2017, sales in the last six months, though continuing
at higher levels than pre-ELD, fell short of expectations. NA units increased by 36% (annualised) in the
six months to 30 September 2018. The 3,198 units added were 12% below the comparative six month
period for the FY18. After a flat period in the market following the December 2017 ELD deadline, the
ELD market is transitioning to a longer-term, continuous sales cycle, with customers adjusting their
focus to acquire additional products that go beyond the minimum ELD requirements.
Mr Newman said that “EROAD’s strategy refresh in North America had confirmed the company was on
the right track and the company would focus its sales programme on targeted geographies and industry
verticals. For example, EROAD was releasing hours of service rulesets for specific product verticals
where the company believed it had a competitive advantage. The first such ruleset was for oilfields,
released in September 2018, and EROAD has already signed up initial units for this product.”
Change in accounting treatment
EROAD has elected to adopt early the new lease standard NZ IFRS 16 in conjunction with NZ IFRS 15
which was effective from 1 April 2018. While under the existing lease standard NZ IAS 17 many of
EROAD’s customer contracts meet the definition of a lease and, therefore, lease accounting as a lessor
was applied, these same contracts do not meet the definition of a lease under NZ IFRS 16. The contracts
would, therefore, be accounted for as service contracts under NZ IFRS 15.

This represents a significant change in the way the company recognises revenue and costs relating to its
contracts with customers. Most significantly, the company no longer recognises upfront revenues for
outright sales, installation services, sale of accessories or finance leases. EROAD now recognises these
revenue streams evenly over the contract term, typically over 3 years. Other impacts from adopting the
new accounting standards include a reduction in the capitalisation of costs associated with establishing
the customer contracts. Results presented for this half year, as well as comparative numbers for the last
financial year and last half year have been restated to reflect these changes. More detail on this change
is available in the Financial Statements included within EROAD’s half-year report.


Mr Newman said that while the impact of the change in the accounting standard had a negative impact
on prior year comparative results, “the new accounting standards have the benefit of producing financial
numbers that more closely reflect true cash flow in the business as hardware related revenue decreases
over time and EROAD more closely resembles a SaaS subscription business.”

Outlook for full year to March 2019
EROAD expects steady growth in NZ to continue through the second half of the year. A solid pipeline of
already contracted unit installs by new and existing enterprise customers is expected to provide
continued growth in NZ. Due to additional costs in Australia as we build in-market sales capability, that
investment will run ahead of revenue in the near to medium term. As EROAD is adopting a measured
approach, leveraging its NZ operations, a substantially smaller investment is required than with a
traditional new market entry.
Mr Newman said EROAD “would continue to incur higher operating expenses for the near term as it
invested ahead of its growth curve. This is so that the company was well-placed to continue to meet and
exceed customer expectations and be able to scale quickly as its customer base continues to grow.”

Page 4 eroad.co.nz
“This includes a major overhaul of our business systems to improve customer experience and maintain
our competitiveness,” he said.
“The opportunity in North America for the EROAD platform, which combines regulatory-driven
telematics with commercial services, continues to develop positively”, said Mr Newman.
“We are establishing a scalable platform for growth. We have a strong local leadership team in place to
drive scale. We have the people, products and increasingly the ability to win target customers”, he said.
Financial Statements
Attached to this release are the unaudited financial statements, for the six months ended 30 September
2018 and the comparative financial information for the six months ended 30 September 2017. These
financial statements have been prepared under the New Zealand equivalents to International Financial
Reporting Standards and reviewed by KPMG.
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 2018 Half Year Presentation.
For further information:
Steven Newman
CEO
EROAD Limited
+64 9 927 4747
Email: steven.newman@eroad.com
About EROAD
EROAD was established in 2000 to develop an electronic solution to modernize New Zealand’s paper-
based Road User Charges (RUC) system. EROAD now helps its customers meet their ever-increasing
regulatory and fleet management requirements with an easy to use system.
EROAD’s services include road charging and tax compliance, health and safety improvement, and fuel,
fleet, and vehicle management solutions. These services benefit our customers, as well as communities
and the wider public, through encouraging safer driving practices, and providing valuable data analytics
across the road network to help improve the planning, maintenance and management of our roads.
In the last year EROAD’s platform has supported journeys of more than 3.2 billion kilometres travelled by
trucks and light vehicles in New Zealand, Australia and the United States of America. EROAD collects
more than 80% of heavy vehicle RUC collected electronically in NZ, around $0.5 billion annually. EROAD
introduced the first electronic Weight Mile Tax (WMT) service in the USA in 2014, and the first
independently-verified, comprehensive Electronic Logging Device (ELD) service in 2017.
EROAD has built a well-established business in New Zealand that is now a vital part of the transport
ecosystem. The company is investing to expand its business in New Zealand, Australia and North
America to pursue significant growth opportunities. EROAD continues to deliver intuitive solutions to
serve our communities and help our customers, government agencies and stakeholders succeed. We
work closely with customers and government agencies to understand both customer needs and
regulatory frameworks to ensure our solutions are mutually-beneficial for all parties. We believe every
community deserves the peace of mind of safe roads, and efficient and sustainable road transportation.
That is why we develop easy to use, accurate, and reliable solutions that solve complex transportation
problems.

Page 5 eroad.co.nz
Attachment: EROAD Half Year Report (including financial statements)

EROAD Limited
Results for announcement to the market
Reporting period Six months to 30 September 2018
Previous reporting period Six months to 30 September 2017


Amount (000s) Percentage change
Sales revenue from ordinary
activities
NZ$28,549 46%
Profit from ordinary activities after
tax attributable to security holders
NZ$(3,410) 12%
Net profit attributable to security
holders
NZ$(3,410) 12%

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. Prior year
comparatives and percentage change has been updated to
reflect adoption of new accounting standards.

Net tangible assets per security 30 September 2018 30 September 2017
$0.36 $0.10

www.eroad.com
ENDS

---

FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2018
EROAD
HALF YEAR REPORT

CONTENTS
EROAD at a Glance
02
Summary of the Six Months03
CEO’s Report04
Financial Review07
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Statement of Condensed Consolidated Comprehensive Income
11
Statement of Condensed Consolidated Financial Position
12
Statement of Condensed Consolidated Changes in Equity
13
Statement of Condensed Consolidated Cash Flows
14
Notes to the Condensed Consolidated Financial Statements
15
Independent Auditor’s Review Report
34

1

2
EROAD at a Glance
EROAD was established in 2000 to develop an electronic
solution to modernize New Zealand’s paper-based Road
User Charges (RUC) system. EROAD now helps its customers
meet their ever-increasing regulatory and fleet management
requirements with an easy to use system.
EROAD’s services include road charging and tax compliance,
health and safety improvement, and fuel, fleet, vehicle
management and asset tracking solutions. These services
benefit our customers, as well as communities and the wider
public, through encouraging safer driving practices, and
providing valuable data analytics about our road networks to
help improve the planning, maintenance and management of
our roads.
In the last year EROAD’s platform has supported journeys of
more than 3.2 billion kilometres travelled by trucks and light
vehicles in New Zealand, Australia and the United States of
America. EROAD collects more than 80% of heavy vehicle
RUC collected electronically in NZ, around $0.5 billion
annually.
EROAD introduced the first electronic Weight Mile Tax (WMT)
service in the USA in 2014, and the first independently-
verified, comprehensive Electronic Logging Device (ELD)
service in 2017.
EROAD has built a well-established business in New
Zealand that is now a vital part of the transport ecosystem.
The company is investing to expand its business in New
Zealand, Australia and North America to pursue significant
growth opportunities. EROAD continues to deliver intuitive
solutions to serve our communities and help our customers,
government agencies and stakeholders succeed. We
work closely with customers and government agencies to
understand both customer needs and regulatory frameworks
to ensure our solutions are mutually-beneficial for all parties.
We believe every community deserves the peace of mind of
safe roads, and efficient and sustainable road transportation.
That is why we develop easy to use, accurate, and reliable
solutions that solve complex transportation problems.

3
Summary of the Six Months
*
›Continued solid growth in New Zealand and relaunch
in Australia
›Contracts signed with new and existing enterprise
customers. Existing enterprise customers are installing
units in additional vehicles within their fleets, providing
a steady pipeline for second-half year in New Zealand
›EROAD wins Exporter of the Year to the USA in the $1
million to $10 million category at the American Chamber
of Commerce in New Zealand AmCham DHL Express
Success & Innovation Awards
›New service launched for civil contracting and
construction sector, enabling easy tracking for powered
and non-powered equipment and assets
›EROAD wins EY Debt Deal of the Year at the INFINZ 2018
industry awards for its $48 million multi-option credit
facility with BNZ to support customer leasing of in-vehicle
units
›Graham Stuart appointed chair of EROAD board of
directors (former chair Michael Bushby remains on
EROAD board)
›Senior leadership team was enhanced and expanded.
Chief Marketing Officer Genevieve Tearle joined the
business in September 2018, and Chief Financial Officer
Alex Ball and the General Manager of Human Resources
Mike Sweet were both appointed, commencing January
2019. In the US, a number of key appointments have been
made to deepen marketing, sales and finance capability
and complete our full North American leadership team.
›EROAD adopts new accounting standards, including
NZ IFRS 15 and early adoption of NZ IFRS 16, which
represents a significant change in the way the company
recognises revenue and costs relating to contracts with its
customers.
Units on Depot
86,240
up over 30 Sept 2017 by
+45%
Revenue
$28.5m
up over same period last year by
+46%
Customer Retention Rate
98%
Future Contracted Income (FCI)
$115m
up over 30 September 2017 by
+40%
Net Loss before tax
$(3.6)m
* As a result of adoption of new accounting standards, comparative numbers have been restated for GAAP and Non-GAAP
measures. All comparative numbers referred to in this report and comparative growth rates refer to restated balances. Refer
to note 2 of the financial statements.

4
CEO’s Report
This year is about investing in the business to build a platform
that scales for the next stage of growth. We have invested in
leadership, talent, systems and processes. Towards the end of
the previous financial year, we raised capital to enable us to
reinvest for future growth, and we have made considerable
progress towards this goal.
At the same time, we have continued to grow solidly, off a
larger customer base following last year’s record growth,
which is encouraging. However, we’ve learned a lot from a year
of rapid growth, and this is guiding our reinvestment to sustain
future growth at scale.
Total Contracted Units on EROAD’s platform at 30 September
2018 were 86,240, a gain of 45% on the same period last year,
supporting revenue growth of 46%. Our EBITDA margin for
the period is 22%, compared to 17.5% a year ago. Our loss of
$3.6 million before tax for the half-year compares to
$4.2 million for the same period last year. We faced higher
costs in the six months as we built our leadership team at a
Group level and in the US, we laid the groundwork for our
Australian expansion and we commenced the upgrade of our
business systems. We also incurred one-off professional fees to
support our due diligence on an inorganic opportunity.
Although US growth rates have moderated from last
year’s high levels, the medium and long-term trends and
opportunities for regulatory telematics in our markets remain
positive. EROAD is well-positioned to leverage its R&D
investment that has delivered a market-leading platform. The
regulatory environment, as well as commercial drivers, are
moving increasingly to electronic systems. Set against this
backdrop, EROAD is well-placed to help its customers navigate
ever more complex compliance, record-keeping and other
auditable tasks as well as operate more efficiently.
EROAD’s Future Contracted Income rose 40% on the
comparative balance last year to $115 million, reflecting
continued customer growth and our high customer retention
rate of 98%. We anticipated more uneven growth this year,
reflecting longer sales cycles with enterprise customers in
New Zealand, and the US ELD market moving into a new
phase following the initial December 2017 mandate deadline.
Revenue rose 46% to $28.5 million and operating expenses
were up 38% to $22.3 million. We expect a continued elevated
level of expenditure through the second half as we continue to
spend according to strategic and capital raise plans.
NEW ZEALAND/AUSTRALIA MARKET
Total Contracted Units in New Zealand and Australia grew to
65,285 at 30 September 2018, a growth rate of 31% since 30
September 2017.
New and existing enterprise customers continued to acquire
additional units as they equip more of their vehicles with
EROAD’s technology. In addition, almost half of all contracted
units under customer leases that were renewed in the six
months were upgraded to Ehubo2 units, enabling the provision
of additional services to customers, including health and safety
services. Our new orders mean we begin the second half of
the year with a steady pipeline as well as encouraging future
prospects.
During the six months we also re-launched in the Australian
market and we began hiring for specialised sales capability
to expand our footprint within this market. We see an
opportunity to further leverage our platform in Australia,
beyond the current organic growth of our trans-Tasman
customers. Australia’s health and safety compliance regime
(including chain of responsibility rules) has similar dynamics
to New Zealand and moves towards other regulatory services,
such as fringe benefit tax, fuel tax credits and electronic
work diaries, are gaining momentum. Further out, interest in
road user charging is increasing. We are doing this in a cost-
effective manner by leveraging the capabilities and resources
in the New Zealand business.
NORTH AMERICAN MARKET
For the six months to end of September 2018, growth in unit
sales in North America moderated from last year’s very high
levels. Although Total Contracted Units in NA grew to 20,955
units, up 115% since 30 September 2017, sales in the last six
months, though continuing at higher levels than pre-ELD, fell
short of expectations. NA units increased by 36% (annualized)
in the six months to 30 September 2018. The 3,198 units added
were 12% below the comparative six months last year. EBITDA
for our US business was -$0.4m. While disappointing, this was
driven by a relatively flat period in the ELD market after the
scramble for sales ahead of the December 2017 deadline. Our
goal is profitable growth in US matching the position we have
achieved in the New Zealand business, as we continue to track
towards positive operating cash flows in our US business
EROAD’s North American growth opportunities remain
exciting, as the market continues to move towards a growing
role for regulatory telematics. We have established a scalable
platform for growth in North America and now have the
people, products and increasingly the ability to win target
customers. We have a comprehensive local leadership team in
place, with deep US telematics experience, to drive scale.

5
During the six months, we commenced our strategic refresh
in North America, which was completed in October 2018.
This confirmed that we are on the right track, but brought
additional focus to how we prioritise our efforts to market
segments where our capabilities are well matched, and which
offer higher returns on investment.
EROAD is releasing hours of service rulesets for specific
product verticals and US states where we believe we have
a competitive advantage. For example, since releasing our
ruleset for the oilfields sector, in September 2018, we have
attracted new business in that industry. The ELD market has
moved from its pre-mandate deadline ‘scramble’ into a more
continuous improvement phase. Interestingly, a number of
customers who were reluctant purchasers of ELDs (as it was a
requirement mandated by federal law) have now realised the
wider benefits of EROAD’s platform. Since September 2017,
over 60% of units have been upgraded by customers, who are
now enjoying the benefits of managing commercial services
and regulatory compliance on an easy-to-use, single platform.
We will also be keeping a keen eye on targeted opportunities
arising from fleets with Automatic On-Board Recording
Devices (AOBRDs) who were given an additional two years
‘grandfather rights’ until December 2019, to comply with the
ELD mandate new paragraph.
One of the challenges we face in the USA with the expansion
of the ELD market is that this has attracted the attention
of non-practicing patent entities (NPPE). EROAD has been
approached by one such company who claims that EROAD
infringes a number of its patents. We strongly assert that
we do not infringe the patents and have informed this NPPE
that we will seek our attorney fees from them in the event we
succeeded in any potential litigation, although no infringement
action has been filed. Unfortunately, dealing with issues like
this is part of the risk of doing business in the USA. We are
implementing our plans to combat this issue, which will carry
some cost in legal services.
BUILDING A PLATFORM FOR GROWTH AND
STRENGTHENING OUR TEAM
We’re pleased with the progress we’ve made, since our capital
raise ($21.5 million in late FY18), to invest for our next phase of
growth. We have started to deploy the capital raised, including
upgrading customer support systems to maintain high service
levels as well as providing working capital for inventory growth.
We deployed around $5 million to replace non-bank lender
funding to simplify EROAD’s funding structure and operational
activities. Finally, we are using around $12.5 million to develop
and expand disruptive product offerings, and to build a digital
ecosystem to better collect and analyse transport data.
We’ve also refreshed our governance roles and senior
leadership team to help us with the next part of our journey.
We’re delighted that Graham Stuart accepted an invitation to
chair EROAD’s board of directors, and equally pleased that
departing chair Michael Bushby stays on, lending his continued
expertise, including a deep understanding of the Australian
environment. The EROAD team is grateful to Michael for his
guidance, dedication and leadership over the last six years.
Graham offers a range of strategic and financial skills, which
will hold us in good stead for achieving our long-term strategy
and to assist us in growing shareholder value.
At an executive level, we farewelled CFO Jason Dale. Jason
played a key role in EROAD’s investment in back office systems
as well as our recent capital raise, and we appreciate the
skills and expertise he brought to the business. Thanks also
to Rebecca McKaskell and Sara Goessi who led our human
resources and communications teams respectively for many
years, and whose contributions to the business since its early
days are appreciated. We’re delighted to welcome our new
Chief Marketing Officer Genevieve Tearle to the company.
Chief Financial Officer Alex Ball and General Manager Human
Resources Mike Sweet will both join us in January 2019.
CHANGE IN ACCOUNTING TREATMENT
EROAD has elected to early adopt the new lease standard NZ
IFRS 16 in conjunction with the new revenue standard NZ IFRS
15 which was effective from 1 April 2018. Under the existing
lease standard NZ IAS 17, many of EROAD’s customer contracts
meet the definition of a lease and, therefore, lease accounting
as a lessor was applied. These same contracts do not meet the
definition of a lease under NZ IFRS 16. The contracts, therefore,
are accounted for as service contracts under IFRS 15.
This represents a significant change in the way the company
recognises revenue and costs relating to its contracts with
customers. Most significantly, the company no longer
recognises upfront revenues for outright sales, installation
services, sale of accessories or finance leases. EROAD now
recognises these revenue streams evenly over the contract
term, typically over 3 years. Other impacts from adopting
the new accounting standards include a reduction in the
capitalisation of costs associated with establishing the
customer contracts.
None of this changes the underlying performance of the
business but has the benefit of producing financial numbers
that even more closely reflect true operating cash flows in the
business, as hardware related revenue decreases gradually
over time and EROAD more closely resembles a SaaS
subscription business.

6
Results presented for this half year, as well as comparative
numbers for the last fi nancial year and last half year, have been
restated to refl ect these changes. This change is discussed
more fully in our Financial Review and Financial Statements
section of this half year report.
OUTLOOK FOR FULL YEAR 2019
EROAD expects steady growth to continue through the second
half of the year while we continue to spend according to
strategic and capital raise plans. A solid pipeline for installation
of new units already contracted, and ongoing upgrades to
Ehubo2 units, points to continued growth in New Zealand.
We anticipate additional costs in Australia as we build our in-
market sales capability, such investment is likely to run ahead
of revenue in the near to medium term. In North America,
we expect growth to continue to be lumpy as we target
specifi c verticals and geographies. We, however, are confi dent
that we are well-equipped for our next stage of growth as
transport fl eets start to more fully understand the benefi ts of
our premium off ering in helping them both meet regulatory
compliance at lower cost, as well as improving the effi ciency of
their operations.
While operating expenses will remain at an elevated level as
we re-equip the business for its next phase of growth, we are
confi dent our revenue growth will remain solid and that we are
building not only a world-best global platform for regulatory
telematics but also the systems and channels to better-
leverage this investment.
Steven Newman, CEO

7
Financial Review

8
Financial Review
The North American segment contributed revenues of $6.8m
an increase of 144% on the comparative period last year. Total
Contracted Units grew to 20,955 at 30 September 2018 an
increase of 115% on the comparative period. Both the revenue
and unit growth compared to 30 September 2017 reflect the
strong growth in the second half of FY18 and revenue has also
been impacted by a stronger USD.
Expenses
Operating expenses of $22.3m for the six months to
30 September 2018 were 38% higher than the comparative
period. Operating expenses were impacted by costs incurred
by the Group acting on strategic initiatives signaled in the
FY18 equity raise and other key strategic initiatives, including
evaluation of an inorganic growth opportunity which did not
proceed. In addition, there was a higher level of R&D costs
expensed with higher levels of research and maintenance
activities.
Depreciation costs have increased by 28% on the comparative
period to $3.1m driven primarily by the growth in Hardware
Assets.
Amortisation of Intangible Assets has increased by 16% on the
comparative period last year due to higher average values of
released development spend subject to amortisation.
Amortisation of costs to acquire customers and contract
costs are 34% higher than the comparative period. Under the
previous lease standard these costs were capitalised within
leased assets and included within Depreciation.
Finance Income and Finance Expenses
Net finance costs of $1.3m are 64% higher than the
comparative period last year, primarly a result of higher
interest expenses driven by higher levels of borrowings due to
the facilities established to assist with funding of our long-term
contracts, in addition to higher interest costs as a result of
adopting NZ IFRS 15 & 16.
FINANCIAL POSITION & CASH FLOW
Property, Plant & Equipment
Additions to Property, Plant and Equipment amounted to
$6.4m for the 6 months to 30 September 2018. $5.3m of these
additions relate to additions to hardware assets and hardware
assets under construction.
Intangible Assets
During the period a further $3.7m was invested into
Development and Software assets, down slightly from $4.2m
in the comparative 6-month period. With a higher level of
costs being expensed relating to research and maintenance
activities. Areas of focus have been continued build out of ELD
rulesets, products to support Australian market entry, new
asset tracker and platform scalability work.
ADOPTION OF NEW ACCOUNTING STANDARDS
The adoption of NZ IFRS 15 Revenue from Contracts with
Customers and NZ IFRS 16 Leases has had a significant impact
on the way the Group recognises revenue and related costs for its
contracts with its customers. Due to a change in the definition of a
lease under NZ IFRS 16, the Group together with specialist advice
has concluded that its contracts no longer meet the definition of
a lease due to the change in determining the extent of control
the Group maintains over the assets whilst they are in customers
possession. This means that all revenue relating to contracts with
customers will be accounted for under NZ IFRS 15.
The impact of adoption of both standards has resulted in
recognition of revenue and related costs more evenly over
the contract period. This has had a significant impact on the
restatement of our comparative numbers with the reversal of
revenue and costs for a significant number of units that had
previously been reported as finance leases. In addition, as a
result of contracts no longer meeting the definition of a lease,
initial direct costs of obtaining the lease contract which were
previously capitalised under NZ IAS 17, have been reassessed
under NZ IFRS 15 and its definition of incremental costs in
obtaining specific contracts with customers.
The Group has applied both NZ IFRS 15 and NZ IFRS 16, with
restatement of comparative information. For the six months to
30 September 2017 this resulted in a reduction to revenue of
$1.3m and increased loss before tax of $0.4m. It is noted that
the impact on the second half of FY18 was more significant
due to the higher volume of units added in the second half
and high number of units accounted for previously as finance
leases.
All comparative numbers referenced below are restated
numbers.
FINANCIAL PERFORMANCE
Revenue
Operating revenues of $28.5m for the six months to
30 September 2018 were 46% higher than the comparative
period last year. Total Contracted Units increased by 45% on
the comparative period last year to 86,240.
Our Australian and New Zealand segment contributed
revenues of $21.7m, an increase of 32% on the comparative
period last year. Total Contracted Units grew 31% on the
comparative period to 65,285 at 30 September 2018. Both
revenue and unit growth compared to 30 September 2017,
reflect the strong growth in the second half of FY18.
Whilst growth in enterprise fleets has slowed compared to the
second half of FY18, which was bolstered by some significant
deals, volume in the six months to 30 September 2018
continued to be solid.

9
Cash flows & funding
Cash increased by $0.4m during the six months to 30
September 2018.
Operating cash flows of $7.1m are up from $0.7m in the
comparative period. Operating cash flows in the comparative
period were suppressed by adverse working capital
movements, some of which reversed and contributed to
operating cash flows in the current period.
Cash outflows from investing activities were $13.6m for the
six-month period, an increase of 18% on the comparative
period with higher investment in hardware assets and costs to
acquire and contract costs, partly offset by lower investment in
intangible assets.
Cash flows from financing activities were $7.0m down from
$9.8m in the comparative period due to repayments made on
debt facilities.
Net tangible assets per share at 30 September 2018 were
$0.36 compared to $0.10 at 30 September 2017.
DIVIDEND
Consistent with its Dividend Policy, EROAD does not intend to pay
an interim dividend for the period ended 30 September 2018.

10
Condensed Consolidated
Financial Statements
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

11
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
GROUP
30 September 201830 September 2017
Notes
Unaudited
$
Unaudited &
Restated*
$
Revenue328,549,20219,569,839
Expenses4(22,348,431)(16,149,631)
Earnings before interest, taxation, depreciation and amortisation 6,200,7713,420,208
Depreciation of Property, Plant & Equipment9(3,148,463)(2,461,734)
Amortisation of Intangible Assets10(3,078,276)(2,655,749)
Amortisation of contract fulfilment and contract acquisition costs(2,264,118)(1,689,880)
Earnings before interest and taxation(2,290,086)(3,387,155)
Finance income36,3435,584
Finance expense(1,315,226)(801,050)
Net financing costs(1,278,883)(795,466)
Profit/(loss) before tax (3,568,969)(4,182,621)
Income tax (expense)/benefit12159,055320,372
Profit/(loss) after tax for the year attributable to the shareholders(3,409,914)(3,862,249)
Other comprehensive income(494,379)(80,808)
Total comprehensive income/(loss) for the year(3,904,293)(3,943,057)
Earnings per share - Basic (cents) (5.10) (6.44)
Earnings per share - Diluted (cents) (5.04) (6.44)
* Refer to note 2
The above Statement of Condensed Consolidated Comprehensive Income should be read in conjunction with the accompanying notes.

12
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED FINANCIAL POSITION
AS AT 30 SEPTEMBER 2018
GROUP
30 September 201830 September 201731 March 2018
Notes
Unaudited
$
Unaudited &
Restated*
$
Restated*
$
CURRENT ASSETS
Cash and cash equivalents822,271,713829,70621,870,415
Restricted Bank Account11,577,64210,239,8499,498,071
Trade and other receivables12,115,8218,567,96313,419,427
Contract fulfi lment costs2,324,5441,852,9402,140,135
Contract acquisition costs2,002,4011,192,3431,448,655
Current tax receivable7,95418,50221,456
Total Current Assets50,300,07522,701,30348,398,159
NON-CURRENT ASSETS
Property, plant and equipment927,049,48220,495,80923,848,227
Intangible assets1030,555,54430,271,82829,901,469
Contract fulfi lment costs2,455,6801,942,9012,204,472
Contract acquisition costs1,903,6841,092,2161,635,487
Deferred tax assets7,287,0604,463,9456,607,411
Total Non-Current Assets69,251,45058,266,69964,197,066
TOTAL ASSETS119,551,52580,968,002112,595,225
CURRENT LIABILITIES
Overdrafts8-940,393-
Borrowings1433,227,34416,920,26810,574,689
Trade payables and accruals5,786,0933,989,3444,859,124
Payables to NZTA & ODOT11,410,38910,215,9359,439,139
Current tax payable-18,74385,245
Contract liabilities116,375,3984,795,3466,534,101
Lease liabilities642,644772,182801,024
Employee entitlements1,388,5711,187,0281,147,462
Total Current Liabilities58,830,43938,839,23933,440,784
NON-CURRENT LIABILITIES
Borrowings
--15,908,670
Contract liabilities
114,143,4183,952,3653,639,851
Lease liabilities
1,633,1671,682,7261,264,690
Deferred tax liabilities356,131111,438244,433
Total Non-Current Liabilities
6,132,7165,746,52921,057,644
TOTAL LIABILITIES64,963,15544,585,76854,498,428
NET ASSETS54,588,37036,382,23458,096,797
EQUITY
Share capital780,612,72959,467,16180,326,438
Translation reserve(1,029,019)(421,942)(534,640)
Retained earnings(24,995,340)(22,662,985)(21,695,001)
TOTAL SHAREHOLDERS' EQUITY54,588,37036,382,23458,096,797
* Refer to note 2
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Chairman, 26 November 2018 Executive Director, 26 November 2018

13
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
GROUP
Share Capital Retained Earnings
Translation
Reserve
Total
Notes$$$$
Balance as at 1 April 2017 as originally
presented - Audited
58,965,367 (13,066,244) (343,389) 45,555,734
Adjustment on initial application of NZ IFRS 15,16 & 9
(net of tax)
2 - (5,792,674) 2,255 (5,790,419)
Balance as at 1 April 2017 (restated)* 58,965,367 (18,858,918) (341,134) 39,765,315
Loss after tax for the period (restated) - (3,862,249) - (3,862,249)
Other comprehensive income - - (80,808)(80,808)
Total comprehensive loss for the period - net of tax - (3,862,249) (80,808) (3,943,057)
Equity settled share-based payments 37,818 58,182 - 96,000
Share capital issued7 463,976 - - 463,976
Balance as at 30 September 2017 - Unaudited
(restated)
59,467,161 (22,662,985) (421,942) 36,382,234
Balance as at 1 April 2018 as originally presented -
Audited
80,326,438 (12,625,692) (540,182) 67,160,564
Adjustment on initial application of NZ IFRS 15,16 & 9
(net of tax)
2 - (9,069,309) 5,542 (9,063,767)
Balance as at 1 April 2018 (restated)* 80,326,438 (21,695,001) (534,640) 58,096,797
Loss after tax for the period
-
(3,409,914)
-
(3,409,914)
Other comprehensive income - - (494,379)(494,379)
Total comprehesive loss for period - net of tax - (3,409,914) (494,379) (3,904,293)
Equity settled share-based payments 94,424 109,575 - 203,999
Share capital issued7 191,867 - - 191,867
Balance as at 30 September 2018 - Unaudited 80,612,729 (24,995,340) (1,029,019) 54,588,370
*Refer to note 2
The above Statement of Condensed Consolidated Changes in Equity should be read in conjunction with the accompanying notes.

14
EROAD LIMITED
STATEMENT OF CONDENSED CONSOLIDATED CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
GROUP
30 September
2018
30 September
2017
Notes
Unaudited
$
Unaudited &
Restated*
$
Cash flows from operating activities
Cash received from customers30,197,67218,229,810
Payments to suppliers and employees (21,770,892) (17,119,902)
Interest received 11,152 5,834
Interest paid (1,315,226) (760,163)
Tax received/(paid) (71,743) 362,153
Net cash inflow from operating activities13 7,050,963 7 1 7, 7 3 2
Cash flows from investing activities
Payments for investment in property, plant & equipment (6,349,718) (4,973,593)
Payments for investment in intangible assets (3,732,351) (4,264,800)
Payments for investment in contract fulfilment costs (1,753,301) (1,500,443)
Payments for investment in contract acquisition costs (1,768,377) (812,204)
Net cash outflow from investing activities (13,603,747) (11,551,040)
Cash flows from financing activities
Receipts from bank loans 12,375,373 10,833,014
Repayments of bank loans (5,631,388) (691,834)
Repayments of lease liability 210,097 (353,045)
Net cash outflow from financing activities 6,954,082 9,788,135
Net increase/(decrease) in cash held 401,298 (1,045,173)
Cash at beginning of the financial period 21,870,415 934,486
Closing cash and cash equivalents (net of overdraft) 22,271,713 (110,687)
*Refer to note 2
The above Statement of Condensed Consolidated Cash Flows should be read in conjunction with the accompanying notes.

15
EROAD LIMITED
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
NOTE 1 • SUMMARY OF SIGNIFICANT GROUP ACCOUNTING POLICIES
The condensed consolidated financial statements of EROAD Limited (EROAD), together with its subsidiaries (the “Group”), as
at and for the six months ended 30 September 2018, 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) and should be read in conjunction with the financial statements as at and for the year ended 31 March
2018. 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 transportation industry.
“The condensed consolidated financial statements for the Group are for the period ended 30 September 2018. The financial
statements were authorised for issue by the directors on 26 November 2018 and are unaudited. References in these financial
statements to ”$” are in New Zealand dollars.
Other than the effect of new accounting standards adopted during the period as disclosed below and in Note 2, the condensed
consolidated 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 2018.
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 following significant group accounting policies have been adjusted as a result of the adoption of new accounting standards
disclosed in Note 2.
(a) Use of estimates and judgements
The Group provides a right to use its hardware assets as part of its contracts with customers. Determining whether the contract
contains a lease as per the definition of NZ IFRS 16, is a significant judgement requiring consideration as to whether the customer
has the right to direct the use of the hardware asset. Historically the company assessed EROAD’s customers as having physical
control of the EROAD unit and therefore a right to use an asset. Under NZ IFRS 16 the company has determined that EROAD’s
customers don’t have the right to direct the use of EROAD’s asset because EROAD continues to have the right and ability to change
how the unit operates during the customer’s contractual term. The Group determined that customers do not have the right to
control the use of its hardware assets and therefore the arrangement does not contain a lease. Therefore the contracts have been
accounted for as a services contract under NZ IFRS 15.
The contracts with customers include promises to provide multiple products and services. Determining whether the products
and services are considered distinct performance obligations that should be accounted for separately versus together requires
significant judgement. The Group provides significant integration services of its hardware assets and installation services when
integrating its software and therefore has accounted for these services as one performance obligation.
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS
This note discloses the new accounting policies that have been applied from 1 April 2018, where they have changed from those
applied in prior periods. The Group has adopted NZ IFRS 15 Revenue from Contracts with Customers, NZ IFRS 16 Leases and NZ
IFRS 9 Financial Instruments, with application from 1 April 2018. This note explains the impact of the adoption of NZ IFRS 15, NZ
IFRS 16 and NZ IFRS 9 on the Group’s financial statements.
In adopting the above new standards, the Group has applied the following:
A. NZ IFRS 15 – In the current year, the Group has applied NZ IFRS 15 from its effective date. The date of initial application of NZ
IFRS 15 for the Group is 1 April 2018. The group has applied NZ IFRS 15 using retrospective approach with practical expedients and
restatement of comparative information.
B. NZ IFRS 16 – In the current year, the Group has applied NZ IFRS 16 in advance of its effective date. The date of initial application
of NZ IFRS 16 for the Group is 1 April 2018. The group has applied NZ IFRS 16 using the full retrospective approach, with restatement
of comparative information.
C. NZ IFRS 9 – The Group has applied NZ IFRS 9 modified retrospectively, but has elected not to restate comparative information.
As a result, the comparative information provided continues to be accounted for in accordance with the Group’s previous
accounting policies.

16
The effect of initially applying these standards is mainly attributed to:
- Reversing previous sales and associated cost of sales of all contracts deemed “finance leases” under the old lease standard;
- Deferral of the recognition of revenue relating to eHubo hardware sales, installations and accessories;
- Expensing of costs capitalised for contract establishment costs under the old lease standard;
- Recognition of right to use assets and associated liabilities where EROAD is the lessee; and
- Minimal impact arising from application of the Group’s expected credit loss model.
The decision was made to early adopt NZ IFRS 16, as while under the existing Leases standard NZ IAS 17, many of EROAD’s
customer contracts met the definition of a lease and lease accounting as a lessor was applied, these same contracts do not meet
the definition of a lease under NZ IFRS 16 and would therefore be accounted for as service contracts under IFRS 15. Without early
adoption of IFRS 16 EROAD would effectively be restating revenue again for the year ended 31 March 2020 on adoption of the new
lease standard. The Board believes that in early adopting the new lease standard the potential confusion created around EROAD’s
revenues is eliminated and this method will provide more relevant and understandable information for the user of the financial
statements.
(A) Revenue
Under NZ IFRS 16, a customer contract contains a lease based on whether the customer has the right to direct the use of an asset,
in this case being the EROAD eHubo or Tubo (the unit). This differs from the definition under NZ IAS 17 which defines a lease as an
agreement providing the customer the right to use an asset. Historically the company determined that EROAD’s customers had
physical control of the EROAD unit and therefore a right to use an asset and consequently a lease. Under NZ IFRS 16, the focus is on
the right to direct the use of the asset and the company has determined that EROAD’s customers do not have that right as EROAD
continues to have the right and ability to change how the unit operates during the customer’s contractual term. These contracts
therefore no longer meet the definition of a lease and are accounted for as service contracts under NZ IFRS 15.
NZ IFRS 15 replaces NZ IAS 18 Revenue and NZ IAS 11 Construction Contracts. The standard applies to all revenue arising from
contracts with customers unless those contracts are within the scope of another standard. The standard is based on a five-step
model to account for revenue arising from contracts with customers. Under NZ IFRS 15, revenue is recognised to depict the transfer
of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled
in exchange for those goods or services. The standard also specifies the accounting for incremental costs of obtaining a contract
with a customer and for the costs incurred to fulfil a contract with a customer if those cost are not within the scope of another
standard.
Application of the new lease definition represents a change in the way the company recognises revenue and costs relating to its
contracts with customers. The company no longer recognises revenues at the point of dispatch to the customer from contracts for
outright sales of an EROAD units, installation services, sale of accessories or entering finance leases. EROAD now recognises these
revenue streams over the contract term, typically 3 years. Other impacts from adopting the new accounting standards include a
reduction in the capitalisation of costs associated with establishing the customer contracts.
The following new revenue accounting policies have been adopted:
Software as a service revenue
The Group generates revenue through the sale of hardware assets, rental of hardware assets, installation of hardware assets and
provision of software services as part of contracts with customers as part of a bundled package. These hardware units enable
customers to access the software platform offered by the Group. The transaction involving hardware and accessories do not
convey a distinct good or service. The sale does not transfer control to the customer as the Group provides a significant service
of integrating the software service to produce a combined output. The sale of the hardware, accessories and software service are
referred to as Software as a Service (SaaS) revenue, which is recognised over time as the customer simultaneously receives and
consumes the benefits of the service. The Group concluded that the customer is expected to benefit from the services evenly over
the period of delivery being the contract period and as a result would recognise revenue on a straight line basis of the contract
period.
The Group has applied a policy of capitalising only costs that are incremental in obtaining contracts with customers.
The timing of revenue recognition may differ from the timing of invoicing to customers and the receipt of consideration. A contract
liability is recognised where consideration is received in advance of the completion of associated performance obligations. A
contract asset is recognised where performance obligations are completed in advance of receiving consideration and invoicing the
customer.
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

17
Installation
The Group offers installation services as part of a number of promises to transfer goods and services within each contract.
Installation services do not convey a distinct good or service and therefore are not a separate performance obligation as the
installation is a set-up activity that does not provide the customer a direct benefit other than access to the software services. As a
result, the installation service is considered as part of the single performance obligation; referred to as Software as a Service (SaaS)
revenue, which includes the software service and hardware sale or rental for which the customer simultaneously receives and
consumes the benefit of the service. Where installation revenue is received in advance of satisfying the performance obligation a
contract liability is recognised. The contract liability derecognised over time evenly over the period of the contract as the customer
derives the benefit evenly from the services provided over the contract period.
(B) Leases
The Group separates the components of a contract into the lease and non-lease component and classifies the lease component as a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
For all leases where EROAD is the lessee; except short-term leases and leases of low value assets (based on the nature of the asset
and its value), the Group:
a) recognises right-of-use assets and lease liabilities in the consolidated statement of financial position, initially measured at the
present value of future lease payments;
b) recognises depreciation of right-of-use assets and interest on lease liabilities in the consolidated statement of comprehensive
income; and
c) separates the total amount of cash paid into a principal portion (presented within financing activities) and interest (presented
within operating activities) in the consolidated statement of cash flows.
Lease incentives (e.g. free rent period) are recognised as part of the measurement of the right-of-use assets and lease liabilities
whereas under NZ IAS 17 they resulted in the recognition of a lease incentive liability, amortised as a reduction of rental expense on
a straight-line basis.
The right-of-use assets are tested for impairment in accordance with NZ IAS 36 Impairment of Assets. This replaces the previous
requirement to recognise a provision for onerous lease contracts on operating leases. For short term leases (lease term of 12 months
or less) and leases of low-value assets (such as personal computers and office furniture), the Group has opted to recognise a lease
expense on a straight-line basis as permitted by NZ IFRS 16.
(C) Financial Instruments
The Group classifies its financial assets as being measured at amortised cost. At initial recognition, the Group measures a financial
asset at its fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
The Group assesses on a forward-looking basis, the expected credit losses associated with its financial assets carried at amortised
cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. In assessing
whether there has been a significant increase in credit risk, the Group considers both forward looking and financial history of
counterparts to assess the probability of default or likelihood that full settlement is received.
For trade receivables, the Group applies the simplified approach permitted by NZ IFRS 9, which requires expected lifetime
credit losses to be recognised from initial recognition of the trade receivables. Trade receivables are written off when there is no
reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the
failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period of greater
than 180 days past due. The expected credit loss allowances for financial assets are based on assumptions about risk of default and
expected credit loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the impairment
calculation. This is based on the Group’s past history, existing market conditions as well as forward looking estimates at the end of
each reporting period.
Trade Receivables
The Group’s trade receivables are subject to NZ IFRS 9’s expected credit loss model. The Group has applied the NZ IFRS 9 simplified
approach to measuring expected credit losses which uses a lifetime expected credit loss allowance for all trade receivables. To
measure expected credit losses, trade receivables have been grouped and reviewed on the basis of the number of days past due.
The expected credit loss allowance has been calculated by considering the impact of the following characteristics:
• The Baseline characteristic considers the age of each invoice and applies an increasing expected credit loss estimate as the
trade receivable ages.
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

18
• The Aging and Write offs characteristics consider the history of write off related to the specific customer and the relative
size of aged debt to current debt. If the trade receivable aged over 180 days makes up more than 50% of the total trade
receivable for a specific customer, further provision for expected credit loss is added.
• The Country, Customer and Market characteristics consider the relative risk related to the country and/or region within which
the customer resides and makes an assessment of the financial strength of the customer and the market position that the
Group has achieved within that market.
This note discloses the new accounting policies that have been applied from 1 April 2018, where they have changed from those
applied in prior periods. The Group has adopted NZ IFRS 15 Revenue from Contracts with Customers, NZ IFRS 16 Leases and NZ
IFRS 9 Financial Instruments, with application from 1 April 2018. This note explains the impact of the adoption of NZ IFRS 15, NZ
IFRS 16 and NZ IFRS 9 on the Group’s financial statements.
As a result of the changes in the entity’s accounting policies, prior year financial statements are restated to reflect these changes.
The adjustments from the adoption of NZ IFRS 15 and NZ IFRS 16 have been explained in Note 2(a) and Note 2(b) respectively. The
tables below detail the adjustments recognised for each individual line item.
STATEMENT OF CONDENSED
CONSOLIDATED COMPREHENSIVE INCOME
AS AT 30 SEPTEMBER 2017
As originally
presented
Restated
Unaudited$
2(a)(i)
$
2(a)(ii)
$
2(b)(i)
$
2(b)(ii)
$$
Revenue20,905,733 (404,052) (289,215) (642,627) - 19,569,839
Expenses(16,940,596) 848,719 - (490,134) 432,380 (16,149,631)
Earnings before interest, taxation,
depreciation and amortisation
3,965,137444,667(289,215)(1,132,761)432,3803,420,208
Depreciation of Property, Plant & Equipment(4,638,052) (355,402) - 2,861,386 (329,666)(2,461,734)
Amortisation of Intangible Assets(2,655,749) - - - - (2,655,749)
Amortisation of contract fulfillment and contract
aquisition costs
- - - (1,689,880) - (1,689,880)
Earnings before interest and taxation(3,328,664)89,265(289,215)38,745102,714(3,387,155)
Finance income44,732 - - (39,148) - 5,584
Finance expense(482,327) (41,872) (74,145) (123,607) (79,099)(801,050)
Net financing costs(437,595)(41,872)(74,145)(162,755)(79,099)(795,466)
Profit/(loss) before tax (3,766,259)47, 3 9 3(363,360)(124,010)23,615(4,182,621)
Income tax (expense)/benefit149,750 8,986 100,132 69,137 (7,633)320,372
Profit/(loss) from continuing operations(3,616,509)56,379(263,228)(54,873)15,982(3,862,249)
Other comprehensive income(80,808) - - - - (80,808)
Total comprehensive income/(loss) for the year(3,697,317)56,379(263,228)(54,873)15,982(3,943,057)
Earnings per share - Basic (cents)(6.03) 0.09 (0.44) (0.09) 0.03 (6.44)
Earnings per share - Diluted (cents)(6.03) 0.09 (0.44) (0.09) 0.03 (6.44)
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

19
STATEMENT OF CONDENSED
CONSOLIDATED FINANCIAL POSITION
AS AT 30 SEPTEMBER 2017
As originally
presented
Restated
Unaudited$
2(a)(i)
$
2(a)(ii)
$
2(b)(i)
$
2(b)(ii)
$$
CURRENT ASSETS
Cash and cash equivalents829,706 - - - - 829,706
Restricted Bank Account10,239,849 - - - - 10,239,849
Trade and other receivables8,567,963 - - - - 8,567,963
Contract fulfillment costs- - - 1,852,940 - 1,852,940
Contract aquisition costs- - - 1,192,343 - 1,192,343
Finance lease receivable776,654 - - (776,654) - -
Current tax receivable18,502 - - - - 18,502
Total Current Assets 20,432,674 - - 2,268,629 - 22,701,303
NON-CURRENT ASSETS
Property, plant and equipment26,092,420 1,277,086 - (8,700,966) 1,827,269 20,495,809
Intangible assets30,271,828 - - - - 30,271,828
Contract fulfillment costs- - - 1,942,901 - 1,942,901
Contract aquisition costs- - - 1,092,216 - 1,092,216
Finance lease receivable1,434,196 - - (1,434,196) - -
Deferred tax assets2,084,612 228,429 746,987 1,348,710 55,207 4,463,945
Total Non-Current Assets 59,883,056 1,505,515 746,987 (5,751,335) 1,882,476 58,266,699
TOTAL ASSETS80,315,7301,505,515746,987(3,482,706)1,882,47680,968,002
CURRENT LIABILITIES
Overdrafts940,393 - - - - 940,393
Borrowings16,920,268 - - - - 16,920,268
Trade payables and accruals4,345,231 - - 1 (355,888)3,989,344
Payables to NZTA & ODOT10,215,935 - - - - 10,215,935
Current tax payable18,743 - - - - 18,743
Contract liabilities- 3,404,717 1,390,629 - - 4,795,346
Deferred revenue2,520,429 (2,520,429) - - - -
Lease liabilities- - - - 772,182 772,182
Employee entitlements1,187,028 - - - - 1,187,028
Total Current Liabilities36,148,027 884,288 1,390,629 1 416,294 38,839,239
NON-CURRENT LIABILITIES
Contract liabilities- 2,625,171 1,327,194 - - 3,952,365
Deferred revenue1,749,310 (1,749,310) - - - -
Lease liabilities- - - - 1,682,726 1,682,726
Deferred tax liabilities- 68,320 (10,708) - 53,826 111,438
Total Non-Current Liabilities1,749,310944,1811,316,486 - 1,736,5525,746,529
TOTAL LIABILITIES 37,897,337 1,828,469 2,707,115 1 2,152,846 44,585,768
NET ASSETS 42,418,393 (322,954) (1,960,128) (3,482,707) (270,370) 36,382,234
EQUITY
Share capital59,467,161 - - - - 59,467,161
Translation reserve(424,197) 7,779 - (5,526) 2 (421,942)
Retained earnings(16,624,571) (330,733) (1,960,128) (3,477,181) (270,372)(22,662,985)
TOTAL SHAREHOLDERS' EQUITY 42,418,393 (322,954) (1,960,128) (3,482,707) (270,370) 36,382,234
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

20
GROUP
As at 1 April 2018As at 1 April 2017
$$
Retained earnings as originally presented(12,625,692)(13,066,244)
Sale of hardware and accessories (Note 2(a)(i))(669,333)(386,805)
Sale of installation services (Note 2(a)(ii))(2,518,770)(1,693,899)
Impact of the new definition of a lease (Note 2(b)(i))(5,621,780)(3,403,698)
Impact on lessee accounting (Note 2(b)(ii))(259,426)(308,272)
Opening retained earnings (21,695,001) (18,858,918)

STATEMENT OF CONDENSED
CONSOLIDATED CASH FLOWS
AS AT 30 SEPTEMBER 2017
As originally
presented
Restated
Unaudited$
2(a)(i)
$
2(a)(ii)
$
2(b)(i)
$
2(b)(ii)
$$
Cash flows from operating activities
Cash received from customers17,951,288 41,872 74,145 162,505 -18,229,810
Payments to suppliers and employees(17,871,747) 810,086 - (490,385) 432,144 (17,119,902)
Interest received44,732 - - (38,898) - 5,834
Interest paid(441,444) (41,872) (74,145) (123,603) (79,099)(760,163)
Tax received 362,153 - - - - 362,153
Net cash inflow from operating activities 44,982 810,086 - (490,381) 353,045 717,732
Cash flows from investing activities
Payments for investment in property,
plant & equipment
(6,966,535) (810,086) - 2,803,028 - (4,973,593)
Payments for investment in intangible assets(4,264,800) - - - - (4,264,800)
Payments for investment in contract
fulfillment costs
- - - (1,500,443) - (1,500,443)
Payments for investment in contract
acquisition costs
- - - (812,204) - (812,204)
Net cash outflow from investing activities (11,231,335) (810,086) - 490,381 - (11,551,040)
Cash flows from financing activities
Receipts from bank loans 10,833,014 - - - - 10,833,014
Repayments of bank loans (691,834) - - - - (691,834)
Repayments of lease liability - - - - (353,045) (353,045)
Net cash outflow from financing activities 10,141,180 - - - (353,045) 9,788,135
Net increase/(decrease) in cash held (1,045,173) - - - - (1,045,173)
Cash at beginning of the financial period 934,486 - - - - 934,486
Closing cash and cash equivalents (net of
overdrafts)
(110,687) - - - - (110,687)
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

21
The Group notes that the transition adjustments above differ from the estimated impact of NZ IFRS 15 disclosed in our annual
report for the year ended 31 March 2018. At the time of reporting the Group did not anticipate early adoption of NZ IFRS 16 nor
the significant impact of doing so. This is the first set of Group’s financials statements where NZ IFRS 9, 15 and 16 has been
applied. The changes in accounting policies are also expected to be reflected in the Group’s consolidated financial statements
for the year ended 31 March 2019 with the following estimated impacts on comparatives for key lines of the Statement of
Comprehensive Income and Statement of Financial Position:
As originally
presented
Adoption of NZ
IFRS 9, 15 & 16Restated
31 March 1831 March 18
Statement of Comprehensive Income
Revenue 51,523,757 (7,245,500) 44,278,257
Earnings before interest, taxation, depreciation and amortisation 15,009,973 (3,953,162) 11,056,811
Earnings before interest and taxation (530,378) (3,041,722) (3,572,100)
Profit/(loss) before tax (1,544,204) (3,827,091) (5,371,295)
Profit/(loss) from continuing operations 209,616 (3,275,557) (3,065,941)
Statement of Financial Position
Total Current Assets 46,625,816 1,772,343 48,398,159
Total Non-Current Assets 66,539,591 (2,342,525) 64,197,066
Total Assets 113,165,407 (570,182) 112,595,225
Total Current Liabilities 28,695,890 4,744,894 33,440,784
Total Non-Current Liabilities 17,308,953 3,748,691 21,057,644
Total Liabilities 46,004,843 8,493,585 54,498,428
Total Shareholders Equity 67,160,564 (9,063,767) 58,096,797
Note 2(a) NZ IFRS 15 Revenue from Contracts with Customers
The Group no longer classifies its customer contracts as lease contracts having early adopted the new determination of a lease
under NZ IFRS 16. All customer contracts are now accounted for under NZ IFRS 15 as service contracts. Refer to Note 1 for
judgements made.
2(a)(i) Sale of hardware and accessories
The Group reversed the revenue received for the sale of hardware and accessories, increasing the deferred revenue balance with
a corresponding adjustment to revenue and retained earnings. In addition to this, hardware assets previously de-recognised
as part of a sale have been recognised as property, plant and equipment, with a corresponding adjustment being made to
depreciation, accumulated depreciation and retained earnings. The hardware assets recognised are measured at cost and
depreciated based on their estimated useful economic lives. The impact of the adjustments for each financial statement line item
affected is stated above in Note 2.
2(a)(ii) Sale of installation services
Following the adoption of NZ IFRS 15, installation revenue previously recognised has been allocated to a contract liability
(deferred revenue) where the contracts have been determined to not yet be complete at the period end, with a corresponding
adjustment being made to revenue and retained earnings. The corresponding contract costs associated to the installation of
hardware units is concluded to be a cost of fulfilling the contract and has been capitalised as a contract asset by adjusting
expenses and retained earnings. The costs of fulfilling the contract are amortised based on the expected useful life of the
contract asset. The impact of the adjustments for each financial statement line item affected is stated above in Note 2.
Note 2(b) NZ IFRS 16 Leases
NZ IFRS 16 replaces NZ IAS 17 Leases and sets out the principles for the recognition, measurement, presentation and disclosure
of leases. The standard identifies a lease within a contract if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. It introduces significant changes to lessee accounting by removing the
distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a lease liability at the
lease commencement for all leases, except for short-term leases and leases of low value assets. In addition to this, the standard
specifically requires for the separating of components of a contract into the lease and non-lease components.
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

22
In the current year, the Group has applied NZ IFRS 16 in advance of its effective date. The date of initial application of NZ IFRS
16 for the Group is 1 April 2018. The group has applied NZ IFRS 16 using the full retrospective approach, with restatement of
comparative information. The Directors are of the view that early adopting the NZ IFRS 16 at the same time as NZ IFRS 15 is the
most appropriate approach, given that the majority of EROAD’s contracts have been classified as leases under NZ IAS 17. The
change in the definition to the right to direct the use and control as the EROAD hardware has a significant impact on the new NZ
IFRS 15 revenue recognition and therefore the Directors decided to adopt the new revenue and lease standards concurrently.
2(b)(i) Impact of the new definition of a lease as a lessor
Prior to the adoption of NZ IFRS 16, the Group accounted for the rental of hardware units to customers as either operating or
finance leases based on an assessment of whether substantially all the risks and rewards of ownership had been transferred to the
customer. Contracts deemed to be a finance lease were accounted for by derecognising the sold hardware asset and recognising a
sale at the inception of the contract.
As a result of the change in definition of leases within the standard, these contracts are now accounted for under NZ IFRS 15.As
a result of the contracts no longer meeting the definition of a lease, initial direct costs of obtaining the lease contract which were
previously capitalised under NZ IAS 17, have been reassessed under NZ IFRS 15. Applying NZ IFRS 15, the Group has reassessed
historical capitalised amounts based on the new definitions within NZ IFRS 15. The Group has capitalised the costs that are
incremental in obtaining contracts with customers in accordance with NZ IFRS 15. The Group performed a reallocation of revenue
and expenses based on the change in accounting policy, the impact of the adjustments for each financial statement line item
affected is stated above at Note 2. The impact of restating previously recognised finance leases has had a significant impact on the
restatement of comparative numbers. The impact of the adjustments for each financial statement line item affected is stated above
in Note 2.
2(b)(ii) Impact on lessee accounting
Former Operating Leases as a lessee
Under NZ IFRS 16 the Group has now recognised right-of-use asset and lease liability in the consolidated statement of financial
position initially measured at the present value of future lease payments. The Group has also recognised depreciation of the right-
of-use asset and interest on lease liabilities in the consolidated statement of comprehensive income. Payments made are separated
into a principal portion (presented within financing activities) and interest portion (presented within operating activities) in the
consolidated statement of cash flows. The impact of the adjustments for each financial statement line item affected is stated above
in Note 2.
Note 2(c) NZ IFRS 9 Financial Instruments
NZ IFRS 9, as it relates to the Group, replaces the provisions of NZ IAS 39 that relate to the recognition, classification, measurement
and impairment of financial assets. The adoption of NZ IFRS 9 from 1 April 2018 resulted in changes in accounting policies however
has not resulted in material changes to amounts recognised in the consolidated financial statements.
Classification and measurement
NZ IFRS 9 impacts the following classifications of financial assets:
• Cash
• Trade and other receivables
There was no change in the fair value of the financial assets as a result of the reclassification.
NOTE 3 • REVENUE
GROUP
30 September 201830 September 2017

Unaudited

$
Unaudited &
Restated
$
Revenue from contracts with Customers
Software as a Service (SaaS) revenue27,115,90518,128,672
Transaction fee revenue 1,174,600902,340
Other income
Grant revenue-325,284
Other revenue258,697213,543
Total Revenues28,549,20219,569,839
NOTE 2 • IMPACT OF INITIAL APPLICATION OF NEW NZ IFRS (CONTINUED)

23
Set out above is the disaggregation of the Group’s revenue from contracts with customers. The disaggregation reflects how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Specifically, software as a
service (SaaS) revenue represents revenue earned from customer contracts for the sale or rental of hardware, installation services
and provision of software services. Transaction fee revenue relates to the collection of Road User Charges (RUC) fees. Refer to Note
1 for the accounting policy.
Transaction price allocated to the remaining performance obligations
The below table represents the revenue allocated to performance obligations that are unsatisfied or partially unsatisfied at the
period end. The revenue amounts yet to be recognised under non-cancellable contract agreements at 30 September are expected
to be recognised by EROAD based on the time bands disclosed below.
GROUP
30 September 201830 September 2017

Unaudited

$
Unaudited &
Restated
$
Software as a Service (SaaS) revenue
Not later than one year 54,542,990 38,132,069
Later than one year not later than five years 60,597,029 43,888,799
Later than five years - -
Total price allocated to remaining performance obligations115,140,01982,020,868
The Group reports the Non-GAAP measure, Future Contracted Income. To align with the change in accounting policies, the
definition of Future Contracted Income has been amended to include all contracted software as a Service (SaaS) revenues to be
recognised in future periods. The disclosure above aligns with the Future Contracted Income reported by the Group.

NOTE 4 • EXPENSES
GROUP
30 September 201830 September 2017

Note
Unaudited

$
Unaudited &
Restated
$
Personnel expenses
610,382,4938,735,563
Administrative and other operating expenses8,106,4964,659,682
SaaS platform costs3,482,1772,347,087
Directors fees174,000136,520
Auditor's remuneration - KPMG131,500101,750
Tax compliance services - KPMG43,20572,853
Tax advisory services - KPMG28,56041,176
Corporate Finance - KPMG*-55,000
Total Expenses22,348,43116,149,631
During the six months the costs expensed in Research and Development was $2,276,184 (30 September 2017: $1,626,420).
* Gross Corporate Finance fees were $172,714 of which $117,714 was capitalised. These fees were for support provided in relation
to the establishment of new debt facilities during the half year ended 30 September 2017.
NOTE 3 • REVENUE (CONTINUED)

24
NOTE 5 • 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 companies 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.
Corporate & DevelopmentNorth AmericaAustralia & New Zealand
30 September
2018
30 September
2017
30 September
2018
30 September
2017
30 September
2018
30 September
2017
Unaudited
$
Unaudited &
Restated
$
Unaudited
$
Unaudited &
Restated
$
Unaudited
$
Unaudited &
Restated
$
Revenue
Software as a Service (SaaS) revenue--6,810,7562,786,56820,305,14915,342,104
Transaction fee revenue ----1,174,600902,340
Other revenue ₁6,019,42111,589,382100,75657,006173,301141,815
6,019,42111,589,3826,911,5122,843,57421,653,05016,386,259
Earnings Before Interest, Taxation,
Depreciation & Amortisation
(7,011,824)(812,341)(386,666)(2,296,161)13,478,37810,112,548
Total assets66,378,62256,008,80820,368,0679,937,58338,137,45930,724,112
Depreciation of Property,
Plant & Equipment
(364,757)(517,254)(1,473,836)(507,820)(1,847,592)(1,591,858)
Amortisation of Intangible Assets(3,078,276)(2,655,749)----
Amortisation of Contract and Customer
Acquisition Assets
--(498,028)(246,535)(1,766,090)(1,443,345)

₁ Revenue from Corporate & Development Markets includes R&D Grant Income of $325,284 in 2017.

25
Reconciliation of information on reportable segments
30 September 201830 September 2017
Unaudited
$
Unaudited &
Restated
$
Revenue
Total revenue for reportable segments34,583,98330,819,215
Elimination of inter-segment revenue(6,034,781)(11,249,376)
Consolidated revenue28,549,20219,569,839
EBITDA
Total EBITDA for reportable segments6,079,8887,004,046
Elimination of inter-segment EBITDA120,883(3,583,838)
Consolidated EBITDA6,200,7713,420,208
Depreciation
Total depreciation for reportable segments(3,686,185)(2,616,932)
Elimination of inter-segment profit5 37,72 2155,198
Consolidated Depreciation(3,148,463)(2,461,734)
Total assets
Total assets for reportable segments124,884,14896,670,503
Elimination of inter-segment balances(5,332,623)(15,702,501)
Consolidated total assets119,551,52580,968,002
Allocation of Development Assets
Included within Total Assets are Development Assets of $28,011,628 at 30 September 2018 (30 September 2017: $27,177,895) for
internal reporting purposes these are allocated to the Corporate & Development segment based on the ownership of intellectual
property. The amortisation for these assets are 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 2018 there was $17,392,723 (30 September 2017:
$16,873,215) of global Development Assets that have been allocated across segments based on the Contracted Units.
GROUP
30 September 201830 September 2017

Unaudited
$
Unaudited
$
Development Assets allocated to North America
13,263,070 12,006,250
Development Assets allocated to Australia & New Zealand 14,748,558 15,171,645
Total Development Assets 28,011,628 27,177,895
NOTE 5 • SEGMENTAL NOTE (CONTINUED)

26
NOTE 6 • PERSONNEL EXPENSES
GROUP
30 September 201830 September 2017

Unaudited
$
Unaudited &
Restated
$
Employment expenses - excluding capitalised customer acquisition costs
12,158,009 11,913,422
Salaries and wages capitalised (1,775,516) (3,177,859)
10,382,493 8,735,563
NOTE 7 • 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 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 bonus
281,351$1.65
463,976
At 30 September 2017 (unaudited)61,017,01159,467,161
Vested under LTI scheme31,223
Shares issued in December 2017 Equity Placement5,099,247$3.0415,501,711
Shares issued in March 2018 Share Purchase Plan1,973,673$3.046,000,000
Costs of raising capital (673,657)
At 31 March 2018 (audited)68,089,93180,326,438
Vested under LTS scheme 34,425
Issue of shares to staff under LTI schemes 116,705 $3.89 453,982
Held in trust as treasury stock (453,982)
Shares issued to employees for 2018 bonus 18,136 $3.31 59,999
Shares issued to employees for 2018 bonus 54,000 $3.55 191,867
At 30 September 2018 (unaudited)68,278,77280,612,729

At 30 September 2018 there was 68,278,772 authorised and issued ordinary shares (30 September 2017: 61,017,011). 972,484
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 2017: 893,440).
The calculation of both basic and diluted earnings per share at 30 September 2018 was based on the profit attributable to
ordinary shareholders of ($3,409,914) (30 September 2017: ($3,862,249)). The weighted number of ordinary shares was
66,880,441 (30 September 2017: 59,982,002) for basic earnings per share, and 67,718,296 for diluted earnings per share (30
September 2017: 60,001,111).
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.

27
NOTE 8 • CASH AND CASH EQUIVALENTS (NET OF OVERDRAFTS)
GROUP
30 September 201830 September 201731 March 2018

Unaudited
$
Unaudited
$
Audited
$
Cash and bank22,271,713829,70621,870,415
Overdraft-(940,393)-
22,271,713(110,687)21,870,415
NOTE 9 • PROPERTY, PLANT AND EQUIPMENT
GROUP
Right of Use
Assets
Hardware
Assets
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$$
Year ended 31 March 2018
Opening net book amount
as originally presented -
Audited
-21,718,976128,198579,147414,148438,158485,31023,763,937
Adjustment on application
of NZ IFRS 15 & NZ IFRS 16
2,171,904(7,990,481)-(36)---(5,818,613)
Opening net book amount
- restated
2,171,90413,728,495128,198579,111414,148438,158485,31017,945,324
Additions-10,840,240158,808-166,93581,65751,02811,298,668
Disposals----(42,170)-(3,205)(45,375)
Depreciation charge(649,520)(3,775,467)(69,011)(132,901)(165,270)(202,180)(367,042)(5,361,391)
Depreciation recovered----34,633-62335,256
Effect of movement in
exchange rates
(18,522)2,884-(5,726)-(2,112)(779)(24,255)
Closing net book amount -
restated
1,503,86220,796,152217,995440,484408,276315,523165,93523,848,227
Cost4,119,23431,721,956506,7291,096,375930,9181,013,7732,570,00241,958,987
Accumulated depreciation(2,615,372)(10,925,804)(288,734)(655,891)(522,642)(698,250)(2,404,067)(18,110,760)
Net book amount - restated1,503,86220,796,152217,995440,484408,276315,523165,93523,848,227

28
GROUP
Right of Use
Assets
Hardware
Assets
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$$
Six months ended
30 September 2017 - Unaudited
Opening net book amount
as originally presented -
Audited
-21,718,976128,198579,147414,148438,158485,31023,763,937
Adjustment on application
of NZ IFRS 15 & NZ IFRS 16
2,171,904(7,990,481)-(36)---(5,818,613)
Opening net book amount
- restated
2,171,90413,728,495128,198579,111414,148438,158485,31017,945,324
Additions-4,724,391117,365-97,21858,79350,4445,048,211
Disposals----(26,083)-(3,690)(29,773)
Depreciation charge(329,653)(1,594,965)(32,175)(65,755)(82,231)(106,595)(250,360)(2,461,734)
Depreciation recovered----18,546-86619,412
Effect of movement in
exchange rates
(14,933)(1,622)-(5,477)-(2,409)(1,190)(25,631)
Closing net book amount -
restated
1,827,31816,856,299213,388507,879421,598387,947281,38020,495,809

Cost4,123,42025,620,786465,2871,097,936877,287991,7802,569,43735,745,933
Accumulated depreciation(2,296,102)(8,764,487)(251,899)(590,057)(455,689)(603,833)(2,288,057)(15,250,124)
Net book amount - restated1,827,31816,856,299213,388507,879421,598387,947281,38020,495,809
GROUP
Right of Use
Assets
Hardware
Assets
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipmentComputersTotal
$$$$$$$$
Six months ended
30 September 2018 - Unaudited
Opening net book amount
as originally presented -
Audited
-26,789,392217,995440,547408,276315,523165,93528,337,668
Adjustment on application
of NZ IFRS 15 & NZ IFRS 16
1,503,862 (5,993,240) - (63) - - - (4,489,441)
Opening net book amount
- restated
1,503,86220,796,152217,995440,484408,276315,523165,93523,848,227
Additions504,1215,303,432137,369167,683101,03964,712125,7186,404,074
Disposals---(8,394)(132,376)--(140,770)
Depreciation charge(353,102)(2,428,695)(43,602)(76,916)(83,443)(73,051)(89,654)(3,148,463)
Depreciation recovered---3,17295,953--99,125
Effect of movement in
exchange rates
83,265(138,100)-29,682-10,2502,192(12,711)
Closing net book amount -
restated
1,738,14623,532,789311,762555,711389,449317,434204,19127,049,482
Cost4,758,56136,981,667644,0981,306,082899,5821,107,6562,712,42048,410,066
Accumulated depreciation(3,020,415)(13,448,878)(332,336)(750,371)(510,133)(790,222)(2,508,229)(21,360,584)
Net book amount - restated1,738,14623,532,789311,762555,711389,449317,434204,19127,049,482
Included in the hardware assets is equipment under construction of $7,226,917 (31 March 2018: $4,630,977 September 2017: $5,361,963).
NOTE 9 • PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

29
NOTE 10 • INTANGIBLE ASSETS
GROUPPatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Year ended 31 March 2018 - Audited
Opening net book amount14,65132,57626,197,4262,418,12428,662,777
Additions--5,309,7361,523,3476,833,083
Disposals-----
Amortisation charge(350)-(4,654,532)(939,509)(5,594,391)
Closing net book amount14,30132,57626,852,6303,001,96229,901,469
Cost17,80032,57637,995,3485,530,20643,575,930
Accumulated amortisation(3,499)-(11,142,718)(2,528,244)(13,674,461)
Net book amount14,30132,57626,852,6303,001,96229,901,469
GROUPPatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Six months ended 30 September 2017 - Unaudited
Opening net book amount14,65132,57626,197,4262,418,12428,662,777
Additions--3,204,0691,060,7314,264,800
Disposals-----
Amortisation charge(175)-(2,223,600)(431,974)(2,655,749)
Closing net book amount14,47632,57627,177,8953,046,88130,271,828
Cost17,80032,57635,889,6835,067,59041,007,649
Accumulated amortisation(3,324)-(8,711,788)(2,020,709)(10,735,821)
Net book amount14,47632,57627,177,8953,046,88130,271,828
GROUPPatentsTrade MarksDevelopmentSoftwareTotal
$$$$$
Six months ended 30 September 2018 - Unaudited
Opening net book amount14,30132,57626,852,6303,001,96229,901,469
Additions--3,720,58811,7633,732,351
Amortisation charge(1,592)-(2,561,590)(515,094)(3,078,276)
Closing net book amount12,70932,57628,011,6282,498,63130,555,544
Cost17,80032,57641,715,9375,541,96847,308,281
Accumulated amortisation(5,091)-(13,704,309)(3,043,337)(16,752,737)
Net book amount12,70932,57628,011,6282,498,63130,555,544
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).

30
NOTE 11 • CONTRACT LIABILITIES
The group enters into contracts with customers for the provision of software services over a contracted period. As stated in the
accounting policies, this revenue is recognised over time as the customer simultaneously receives and consumes the benefit
of the service. The Group has determined that the benefit of the services provided is consumed evenly over the period of the
contract, and thus the performance obligations are satisfied evenly over the period. Where the Group receives a portion of the
transaction price of a contract in advance, this is recognised as a contract liability and released over the contract period as the
Group satisfies its performance obligations.
GROUP
30 September
2018
30 September
2017
31 March
2018
Unaudited
$
Unaudited &
Restated
$
Restated
$
Opening balance
10,173,9528,068,9078,068,907
Amounts deferred during the period3,126,8663,468,1987,770,427
Amount recognised in the Statement of Comprehensive Income(2,782,002)(2,789,394)(5,665,382)
Closing balance10,518,8168,747,71110,173,952
At 30 September 2018, $6,375,398 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 2018: $6,534,101, 30 September 2017:
$4,795,346).
NOTE 12 • INCOME TAX EXPENSE
GROUP
30 September 201830 September 2017

Unaudited
$
Unaudited &
Restated
$
(a) Reconciliation of effective tax rate
Profit/(Loss) before income tax(3,568,969)(4,182,621)
Income tax using the Company’s domestic tax rate of 28% (999,311)(1,171,134)
Non-deductible expense/(non-assessable income)464,4744,205
Temporary differences
Losses and timing differences (recognised)/not recognised256,698830,942
Effect of different tax rates119,08415,615
Income tax expense/(benefit)(159,055)(320,372)

31
NOTE 13 • RECONCILIATION OF CASH FLOWS
GROUP
30 September 201830 September 2017

Unaudited
$
Unaudited &
Restated
$
Reconciliation of operating cash flows with reported profit/(loss) after tax:
Profit/(loss) after tax for the six month period attributable to the shareholders(3,409,914)(3,862,249)
Add/(less) non-cash items
Tax asset recognised(567,951)(329,885)
Depreciation and amortisation8,490,8576,807,363
Other non-cash expenses/(income)(98,513)14,510
7,824,3936,491,988
Add/(less) movements in other working capital items:
Decrease/(increase) in trade and other receivables1,303,606(2,017,399)
Decrease/(increase) in current tax receivables13,502343,410
Decrease/(increase) in current tax payables(85,245)18,743
Increase/(decrease) in contract liabilities344,864677,541
Increase /(decrease) in trade payables, interest payable and accruals1,059,757(934,302)
2,636,484(1,912,007)
Net cash from operating activities7,050,9637 1 7, 7 3 2
NOTE 14 • 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 Company entered into a Multi-Option Credit Facility Agreement with the Bank of New Zealand (BNZ). The agreement
was subsequently amended and restated in December 2017. At 30 September 2018, EROAD had the following facilities in place:
$9,450,000 Term Loan Facility A – to restructure existing term facilities. The Term Loan has a term of 16 months from the December
refinance date, with the facility having a maturity date of 1 April 2019. The interest rate is variable based on the 3-month BKBM bid plus a
margin of 3.10%. Principal and interest payments are made quarterly in line with a 30 month repayment profile.
$8,247,910 (NZD) Term Loan Facility E – used to restructure previous amounts drawn under the Committed Cash Advance Facility up to
the refinance date in December 2017. The Term Loan has a term of 16 months from the December refinance date, with the facility having
a maturity date of 1 April 2019. The interest rate is variable based on the 3-month BKBM bid plus a margin of 3.10%. Principal and interest
payments are made quarterly in line with a 33 month repayment profile.
$3,000,328 (USD) Term Loan Facility E – used to restructure previous amounts drawn under the Committed Cash Advance Facility up to
the refinance date in December 2017. The Term Loan has a term of 16 months from the December refinance date, with the facility having
a maturity date of 1 April 2019. The interest rate is variable based on the 3-month US LIBOR plus a margin of 3.10%. Principal and interest
payments are made quarterly in line with a 33 month repayment profile.
$21,000,000 Committed Cash Advance Facility – to finance the up-front costs in connection with securing Future Contracted Income.
The Committed Cash Advance Facility has a 16 month term from the December refinance date, with the facility having a maturity date of
1 April 2019. 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 2.50%. For drawings in USD of a 1-month duration, the interest rate is the 1 month US
LIBOR plus a margin of 2.50%. In addition to a 1.50% line fee on the total facility limit, payable quarterly in advance.
$5,150,000 Overdraft Facilities – 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%.

32
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 $35,000,000. EROAD was compliant with
all covenants during the period and at 30 September 2018.
The security package for the Multi-Option Credit Facility Agreement includes an all obligations cross-guarantee granted by EROAD
Australia Pty Limited, EROAD Financial Services 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.
On 11 October 2018, the Group has entered into an amended and restated the Multi-Option Credit Facility Agreement with the Bank of
New Zealand with an increased facility limit and longer maturity date through to 31 October 2020. As this facility had not been signed at
30 September 2018, all lending under the facilities outlined above have been presented as current as at 30 September 2018.
At the balance date the Group has a working capital deficit of $8.5 million due to current borrowings of $33 million that have been
subsequently renewed in the normal course of business on 11 October 2018. The financial statements have been prepared on the going
concern basis as Directors believe there will be sufficient cash flows generated from operations to meet the Group’s obligations as they fall
due according to the terms of the new facilities.
Terms and debt repayment schedule
Nominal
Interest
Year of
Maturity
30 Sept 2018
Face Value
30 Sept 2018
Carrying
amount
30 Sept 2017
Face Value
30 Sept 2017
Carrying
Amount
31 Mar 2018
Face Value
31 Mar 2018
Carrying
Amount
Unaudited
$
Unaudited
$
Unaudited
$
Unaudited
$
Audited
$
Audited
$
Term Loans - NZ $
denominated
5.14%201913,213,66413,213,66410,629,41810,629,41816,873,67816,873,678
Term Loans - US $
denominated
5.44%20193,759,1723,759,172--4,201,5744,201,574
NZ Growth -
Committed Cash
Advance Facility
4.23%201911,806,37311,806,3734,791,0184,791,0183,584,6233,584,623
US Growth -
Committed Cash
Advance Facility
4.37%20194,562,8314,562,8311,750,0481,750,0482,057,7882,057,788
Capitalised
borrowing costs
-(114,696)-(250,216)-(234,304)
33,342,04033,227,34417,170,48416,920,26826,717,66326,483,359
EROAD Limited also has an on demand overdraft facility of $5,000,000 of which no amount was drawn at 30 September 2018 (31
March 2018: Nil; 30 September 2017: $940,393).
NOTE 15 • RELATED PARTY TRANSACTIONS
Related party transactions are consistent in nature with those reported at 31 March 2018.
NOTE 16 • CAPITAL COMMITMENTS
The capital expenditure commitments are in line with those at 31 March 2018.
NOTE 14 • BORROWINGS (CONTINUED)

3333
NOTE 17 • CONTINGENT LIABILITIES
During the six months to 30 September 2018, the Group has been approached by a third party who asserts that EROAD infringes a
number of its patents. From our internal review of the patent claims asserted by the other party, the Group believes there are grounds
in support for why we do not infringe their patents and also strong grounds that the patents would likely be considered invalid if
EROAD was to challenge them. The Group strongly asserts that we do not infringe the patents and have informed the other party that
we would seek our attorney fees from them in the event we succeeded in any potential litigation.
As we firmly believe that we have not infringed any patents no amounts have been provided for in relation to this claim. The Group
may incur some legal costs in defending this claim over the next twelve months.
NOTE 18 • EVENTS SUBSEQUENT TO BALANCE DATE
Other than the renewal of debt facilities (see note 14), there are no reportable events subsequent to balance date (30 September 2017:
Nil, 31 March 2018: Nil).

34



© 2018 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 financial statements
Conclusion
Based on our review, nothing has come to our attention
that causes us to believe that the condensed
consolidated financial statements of EROAD Limited (the
company) and its subsidiaries (the Group) on pages 11 to
33 do not:
i. present fairly in all material respects the
Group’s financial position as at 30 September
2018 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 financial statements which
comprise:
— the condensed consolidated statement of financial
position as at 30 September 2018;
— 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 Group
accounting policies and other explanatory
information.
Basis for conclusion
A review of condensed consolidated 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 other assurance
services. 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.

35





Responsibilities of the Directors for the condensed consolidated financial
statements
The Directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the condensed consolidated financial statements in accordance with NZ IAS
34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of an condensed 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 financial
statements
Our responsibility is to express a conclusion on the condensed consolidated 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 condensed consolidated 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 financial statements.
This description forms part of our Independent Review Report.


KPMG
Auckland
26 November 2018

36
“Looking after our people as well as our customers is at the heart of
how we operate.
EROAD’s second-generation driver support, vehicle monitoring and
other health and safety services are an important part of this.”
ALAN PEARSON, CEO
TIL LOGISTICS

37
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.
FUTURE CONTRACTED
INCOME (FCI)
Contracted Software as a Service (SaaS)
income that will be recognised as revenue
in future periods.
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
Directory
Non GAAP Measures
EBITDA MARGIN
Earnings before Interest, Taxation,
Depreciation and Amortisation (EBITDA)
divided by revenue.
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.

eroad.com

---

1

2
01
EROAD
1H19 Results
Six months ended 30 September 2018

Contents
01 1H19 Results Introduction
Important Information 02
1H19 Results 03
02 Results Summary
Highlights 05
Financial Performance 06
Breakdown of Extraordinary Expenses 07
Change of Accounting Standards 08
03 Australia & New Zealand
Key Achievements & Initiatives 10
ANZ Market Summary 11
Market Launch — Australia 12
Case Study One — St Johns NZ 13
Case Study Two — TIL Logistics 14
04 North America
Achievements and Key Events 16
North America — Execution 17
Single Platform 18
One Platform 19
North America — Market Update 20
Research and Development 21
05 Performance
Graph 23
Graph 24
Graph 25
Graph 26
06 Outlook
FY19 Outlook 28
Opportunities by Market 29
One Platform 19
Next Chapter 20
Research and Development 21
07 Q&A
08 Appendices
01
EROAD
Contents
01 1H19 Results Introduction
Important Information 04
Key points for 1H19 Results 05
02 Results Summary
Highlights 07
Financial Performance 08
Operating Expenses 09
Significant change in accounting standards 10
Restatement of comparative periods 11
03 Australia and New Zealand
ANZ: Key Achievements and Initiatives 13
ANZ 14
Market re-launch 15
Case Study — TIL Logistics 16
04 North America
NA: Key achievements and initiatives 18
Execution 19
One Platform 20
North America market update 21
05 Performance
Growth in unit sales 23
Revenue dynamics 24
Future contracted income (NZ$M) 25
1H19 EBITDA (NZ$M) 26
Research and Development expenditure 27
Research and Development 28
06 Outlook
FY19 Outlook 30
Opportunities by market 31
Next chapter 32
07 Q&A
08 Appendices
Statement of Income (NZ$M) 35
Balance Sheet (NZ$M) 36
Cash Flows (NZ$M) 37
Areas of strategic growth 38
Total addressable market (TAM) 39
Glossary 40
Glossary 41
01
EROAD

01
4
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.
Important Information
1H19 RESULTS INTRODUCTION

01
5
Key points for 1H19 Results
1H19 RESULTS INTRODUCTION
1. ANZ: Solid momentum in NZ fuels re-launch in Australia
• ANZ unit growth +31%, revenue growth +32%, EBITDA growth +33%.
• NZ momentum remains strong and gave us the confidence to re-launch in Australia.
2. NA: growth moderated, but focussed plan to improve growth
• Transition period in market following the deadline for ELD implementation.
• Strategic refresh has led to focussed geo-vertical execution and also developing capabilities to serve certain enterprise clients.
3. Investing for the next level of growth
• Spending according to strategic and capital raise plans, to put the people, systems and processes in place, for the next level
of growth.
• Ongoing investigation of several strategic opportunities in NA.
4. Significant accounting change*
• Brought about by adoption of new revenue standard (NZ IFRS15) and early adoption of the new lease standard (NZ IFRS 16).
• Early adoption of lease standard to align with adoption of revenue standard and avoid further restatements in the next
financial period.
* As a result of the adoption of new accounting standards, comparative numbers have been restated for GAAP and Non-GAAP measures. All comparative numbers referred to in
this presentation and comparative growth rates refer to restated balances. Refer to note 2 of the financial statements for more information on the changes.

6
02
EROAD
Results Summary

01
EROAD
7
02
EROAD Group Performance (NZ$m)
+46%+81%+40%+45%
RESULTS SUMMARY
1H18*1H18*1H18*1H18
19.6M
RevenueEBITDAFuture Contracted
Income**
Total Contracted
Units
3.4M
82.0M
59.5K
1H191H191H191H19
28.5M
6.2M
115.1M
86.2K
* Previously Reported 1H18 metrics were as follows: Revenue $20.9m; EBITDA $4.0m; FCI $75.0m
** The definition of the Non-GAAP measure, Future Contracted Income has been amended to align with changes as a result of the adoption of NZ IFRS 15 and NZ IFRS 16.
Future Contracted Income includes all contracted Software as a Service (SaaS) revenue that will be recognised as revenue in future periods.
Highlights

8
02
1H19 Half Year Results
Financial Performance
EROAD continued to achieve growth across all metrics, while growth moderated from a record 2H18
1H191H18% Change
Revenue ($000’s)28,54919,57046%
EBITDA ($000’s)6,2013,42081%
EBITDA margin22%17%4%
Net Profit (Loss) After Tax ($000’s) (3,410)(3,862)12%
Total Contracted Units*86,24059,53845%
Future Contracted Income (FCI) ($000’s)115,14082,02140%
Retention Rate98%98%0%
RESULTS SUMMARY
* Total Contracted Units - Total Contracted Units represents the total units subject to a customer contract and includes units on depot and units pending installation.

9
02
RESULTS SUMMARY
Operating expenses
Operating expenses have been trending higher than previous
years as the group implements the spending initiatives outlined
at the time of the FY18 equity raise and other key strategic
initiatives.
These additional expenditures have included:
• $0.2m strategic review costs related to completing the FY18
NA strategic review
• $0.4m evaluation of an inorganic growth opportunity which
EROAD ultimately decided not to progress
• $0.2m early stage costs for system and process
transformation project
• $0.4m market validation for AU re-launch
Additionally the business has spent a higher proportion
of time on non-capitalised activities, such as research and
maintenance, resulting in higher R&D expenses. Also, due
to adoption of NZ IFRS 15 and early adoption of NZ IFRS 16,
certain expenses relating to customer acquisition are now
expensed rather than capitalised.

10
02
RESULTS SUMMARY
Significant change in
accounting standards
• In addition to adopting the new revenue standard NZ IFRS
15, EROAD has elected to early adopt the new lease standard
NZ IFRS 16.
• Without early adoption of NZ IFRS 16, EROAD would
effectively be restating revenue again for the year ended
31 March 2020 on adoption of the new lease standard.
• The definition of a lease has been amended in the new
lease standard and EROAD’s contracts no longer meet the
definition of a lease.
• Application of the new lease definition represents a significant
change in the way the company recognises revenue and costs
relating to its contracts with customers. Most significantly
the company no longer recognises revenues at the point of
dispatch to the customer from contracts for outright sales
of EROAD units, installation services, sale of accessories
or entering finance leases. EROAD now recognises these
revenue streams over the contract term, typically 3 years.
• In addition there are more expenses recognised in the P&L
due to reduced capitalisation of customer acquisition costs
allowable under the new standards.
Comparative numbers have been restated. The table overleaf
shows the restatement of comparative periods caused by
these changes in accounting standards.
• The changes in accounting align better with the recurring
nature of EROAD’s business and reported revenues and
earnings now more closely align to underlying operating cash
flows.
• A full description of the change in accounting standards can
be found in EROAD’s Half Year Report.

11
02
RESULTS SUMMARY
Restatement of comparative periods
(key lines)
6 months to 30 September 2017
UnauditedUnauditedUnaudited
Previously Reported
Adjusted for adoption
of new standards
Change
Revenue 20,905,73319,569,839(1,335,894)
EBITDA3,965,137 3,420,208 (544,929)
Profit/(loss) before tax (3,766,259)(4,182,621)(416,362)
Total Assets80,315,73080,968,002652,272
Total Liabilities37,897,33744,585,7686,688,431
Total Shareholders Equity42,418,39336,382,234(6,036,159)
Year ended 31 March 2018
UnauditedUnauditedUnaudited
Previously Reported
Adjusted for adoption
of new standards
Change
Revenue 51,523,757 44,278,257 (7,245,500)
EBITDA15,009,973 11,056,811 (3,953,162)
Profit/(loss) before tax (1,544,204)(5,371,295)(3,827,091)
Total Assets113,165,407112,595,225(570,182)
Total Liabilities46,004,84354,498,4288,493,585
Total Shareholders Equity67,160,56458,096,797(9,063,767)

12
fi fl
Australia and
New Zealand
03

13
03
AUSTRALIA & NEW ZEALAND
ANZ: Key achievements
and initiatives
+31%
Growth in Units in ANZ
(compared to Sep-17)
5,000+
RECORD RETENTION
5,000+ Units renewed
43%
EROAD collects 43%
of Heavy Vehicle RUC
in New Zealand
LAUNCHED ASSET
TRACKER
ETrack Wired launched
in Sep-18
AUSTRALIAN MARKET
RE-LAUNCH
Decision made and
initial investment
to re-launch

14
• Bullet Headings:
• Lorem ipsum goes here
New Zealand summary
• 1H run-rate (excluding enterprise sales) has been similar to last year but comprised a
greater number of SME customers. Also, some existing high-growth enterprise accounts
continued to add new units during the period.
• Largest customers continue to get larger.
• New enterprise units signed in later 1H, but to be delivered during 2H (circa 1,450 units),
coupled with good volumes from SME customers.
• High number of upgrades to second generation hardware. Around half of renewals
upgraded to Ehubo 2.
• Brake Fleet Safety Award (Australasian) winner 2018: http://www.fleetsafetyawards.com/
australasian-awards/about/18-australasia
• The light vehicle and asset tracking markets continue to grow as companies expand their
H&S programs and recognize the commercial benefits of telematics in these areas.
Australia – initial investment steps
• Investments made to establish a solid foundation, including a comprehensive
market review.
• Hired the first 4 members of the Australiansales team, being 2 direct sales & 2 inside sales.
Minimal FY19 sales are expected as team is inducted and ramps up activity.
• Australian marketing campaign kicked off with the first leads flowing through.
• Australian FBT and posted speed products launched.
ANZ
AUSTRALIA & NEW ZEALAND
03
Market Summary

15
Market re-launch
Australia
• EROAD has a small number of existing Australian fleets,
some associated with large New Zealand based customers.
EROAD is already known in the AU market, has award-wining
solutions in this market, and existing AU and NZ accounts are
highly referenceable.
• We believe the time is right for a measured proactive broader
re-launch into AU coinciding with legislative change.
• In particular, the Chain of Responsibility environment is
driving higher adoption rates for telematics in AU and there is
a growing convergence of AU and NZ markets.
• Some market specific product functionality needs to be
developed as appropriate and additional investment in
marketing, sales and account management is required.
• This investment is significantly lower versus a stand-alone
start-up by leveraging capabilities and resources in the NZ
business.
AUSTRALIA & NEW ZEALAND
03

16
Record renewal and upgrades during the period
TIL Logistics
Case Study
• TIL Logistics is one of New Zealand’s largest transport and logistics
companies.
• TIL has been using EROAD’s first generation of technology for a
number of years but has chosen to upgrade to EROAD’s advanced
second generation of hardware at the renewal of their contract.
• TIL’s fleet has been equipped with the latest hardware, enabling
it to provide its drivers, fleet managers and customers with better
support throughout the logistics supply chain.
• Renewal and upgrade agreement covers TIL’s fleet of 2,000 vehicles
and heavy trailers.
“Looking after our people as well as our
customers is at the heart of how we operate.
EROAD’s second-generation driver support,
vehicle monitoring and other health and safety
services are an important part of this.”
Alan Pearson
CEO TIL Logistics
AUSTRALIA & NEW ZEALAND
03

17
fi fl
North America
04

18
04
NORTH AMERICA
NA: Key achievements
and initiatives
+36%
Growth in NA (last six
months annualised)
+115% 12 month
growth on Sep-17
20k
Units milestone
reached
#3
Ranked ELD out of 26
by ELDratings.com
STRENGTHENED
LOCAL MANAGEMENT
Strengthened local
management team to
drive further growth

19
Execution
• Tightly focussed geo-vertical approach to
execution.
• Near term product releases dictated by
geographic and vertical focus.
• Leveraging EROAD’s accuracy, ease of use
and reliability.
• FNZC NA Review: Following FNZC’s NA Review
we determined that working with adjacent
businesses offers the most opportunity to
accelerate our growth strategy.
• Potential acquisition: Actively pursued target
which didn’t eventuate following detailed due
diligence. Operating expenses detailed on slide 9.
• Ongoing: EROAD will continue to consider
inorganic opportunities to broaden its NA
customer base and/or obtain innovative and
complementary product offerings.
Fleet Size
Affects sales methodology,
product needs, operational
costs and financial risk
Vertical
Affects marketing
spend and
product needs
Location
Affects sales
placement,
marketing spend
and product needs
04
NORTH AMERICA
EROAD is executing on a tight geo-vertical focus following its NA Strategic Refresh

20
One Platform
EROAD’s point of differentiation is regulatory telematics
and commercial services on a single platform
REGULATORY
+
COMMERCIAL
Monitoring, Reporting
& Assurance of ELD,
hours of service and
health and safety
Real-time Geospatial
Oversight, Analytics &
Services
Speed management
(including harsh
braking)
Fleet Management &
Optimization
Easy, Accurate and Fair
Tax & Charging
Integration &
Communication
04
NORTH AMERICA

21
North America market update
Telematics landscape continues to evolve post ELD deadline
PRE DEADLINEDEADLINE (DEC 17)POST DEADLINE
UPCOMING
(NEXT 3 YEARS)
• Late adopters
• Price key rather
than value
• Compliance
focused users
• Focused on being
compliant by
deadline
• Final rule
compliance date:
Dec-17 (excluding
AOBRDs)
• Enforcement
deadline: Apr-18
(excluding AOBRDs)
• Return to value focus
• Buyers’ remorse
• In cab vs tablet
functionality,
complexity,
compliance
• Value selling over
price and simple
compliance
• Intra-state adoption
• AOBRD users
transition to ELD
by Dec-19
• Canada
• Mexico
• Fleets wanting to
leverage telematics
beyond ELD
• State and federal
regulators looking at
telematics solutions
in the electronic
road charging space
04
NORTH AMERICA

22
05
EROAD
Performance

01
EROAD
23
PERFORMANCE
05
1Q16
28,975
1Q17
39,848
1Q18
52,452
1Q19
81,772
2Q16
31,298
2Q17
43,430
2Q18
59,538
2Q19
86,240
3Q16
34,514
3Q17
45,657
3Q18
69,391
4Q16
36,953
4Q17
48,041
4Q18
77,600
• Units growth for ANZ of 5,442 units in 1H19, compared to growth of 7,863 units in 1H18.
• Units growth for NA of 3,198 units in 1H19, compared to growth of 3,634 units in 1H18.
• ANZ sales in 1H19 were lower given the absence of the large enterprise deals that occurred in 1H18.
ANZ enterprise deals will increase in 2H19, due to the completion of enterprise deals at the end of 1H19.
• NA sales moderated from 1H18, which was boosted by pre-ELD deadline activity
ANZ North America Total
Growth in unit sales
Sales growth moderated with less large enterprise deals in
ANZ and following ELD deadline activity in NA
75,000
50,000
100,000
25,000
TOTAL CONTRACTED UNITS

01
EROAD
24
PERFORMANCE
05
Retention rate remains
high at 98%
Higher % of sold units compared to
previous years driven by US sales
(partly due to credit policy requiring
smaller fleets to purchase)
Note: no longer have finance leases
HIGH CUSTOMER
RETENTION RATE
RENTAL VERSUS SALES
(NEW SALES HY19)
Revenue dynamics
Sold
14%
Rented
86%

01
EROAD
25
PERFORMANCE
05
FCI GREW TO $115M
(+40% FROM 30 SEPT 17)
Growth over the last 12 months was driven
by record volume growth in 2H18, coupled
with a high number of renewals over the last 6
months (1H19).
Future Contracted Income is a non-
GAAP measure which represents
contracted Software as a Service (SaaS)
income to be recognised as revenue in
future periods. Note that this definition
has changed from the previous period
in order to align with the change in
adoption of NZ IFRS 15 and NZ IFRS 16.
0
20
40
60
80
100
120
FUTURE CONTRACTED INCOME
Sep 17*
82.0m
Mar 18*
100.5m
Sep 18
115.1m
Future Contracted Income (NZ$M)
* Periods have been restated to align with current period presentation.

01
EROAD
26
PERFORMANCE
05
Strong unit sales growth resulting in improved revenue, EBITDA and net profit for 1H19
($000’s)1H191H18Movement
ANZ13.510.13.4
North America(0.4)(2.3)1.9
Corporate & Development(7.0)(0.8)(6.2)
Elimination of inter-segment EBITDA0.1(3.6)3.7
EBITDA6.23.42.8
EBITDA MARGIN22%17%4%
ANZ
• Over 5,000 units renewed in 6 months
• Continued penetration into light vehicle
fleets
• Australian re-launch validated and has
commenced in 1H19
North America
• Reduced losses on back of FY18 unit and
revenue growth
• Tight focus on key geographies and
verticals where EROAD has competitive
advantage
Corporate
• Increased operating expenses as EROAD
executes on strategic initiatives signalled
in FY18 equity raise
• R&D spend increases, driven by both a)
maintaining higher number of products
and b) executing on next key initiatives
• Significantly lower intercompany sales
and intersegment EBITDA as a result of
outsourced manufacturing
1H19 EBITDA (NZ$M)

01
EROAD
27
PERFORMANCE
05
Research & Development expenditure
0
3
6
9
12
15
RESEARCH AND DEVELOPMENT
CAPITALISED AND EXPENSED
FY15
8.3m
FY17
12.7m
1H18
4.8m
FY16
11.5m
FY18
11.3m
1H19
6.0m
NZ$ MILLIONS
Investment in product development & maintenance increased during the half
R&D Capitalised
R&D Expensed

28
Research and Development
Investment in product development increased during the half
KEY RELEASES
ONGOING INVESTMENT
FUTURE AREAS OF FOCUS
• Fringe Benefit Tax solution for
Australia.
• Launch of ETrack Wired in NZ,
a discreet tracker for powered
assets.
• Proof of Service launched in
NZ providing a link between
auxiliary input activity and GPS
location.
• OBDII (On-board diagnostics
2) connection for ELD to
enable compliance for mixed
fleets (small/large commercial
vehicles).
• Investment in platform
scalability and maintenance for
future growth.
• Continued development of
rulesets and enhancements
to support NA market.
• Continued development of
features to support Australian
re-launch.
• Upgrading Ehubo2 to enable
compatibility with 4G networks.
• Continued expansion of
connected hardware portfolio.
• Next-generation in-cab
experience and supporting
technology selection.
• Next-generation SaaS platform
for the most intuitive experience.
05
PERFORMANCE

29
EROAD
Outlook
06

30
FY19 Outlook
06
OUTLOOK
• A solid pipeline from new and existing enterprise customers is
expected to provide continued growth in NZ, including large
customers already contracted but yet to be delivered.
• Australia ramp-up of sales capability: investment will run
ahead of revenue in the near to medium term (but lower level
investment than for a new market entry). Expect to make a
small number of sales in 2H19.
• Overall regulatory telematics in AU and NA continues to
develop positively, creating opportunities in the 3 year
timeframe.
• Scalable platform for growth is now established in the US and
we have the people, products and increasingly the ability to
win target customers.
EROAD expects steady growth in NZ to continue
through the second half of the year.

31
Opportunities by market
06
OUTLOOK
New Zealand
• Continued growth driven by:
• Continued focus on health and safety
• Strong expansion in light vehicle fleets
• Customers upgrading from Gen 1 to Gen 2 in vehicle hardware
Australia
• Market re-launch underway
• Growth in trans-Tasman fleet adoption
• Regulatory requirements such as chain of responsibility driving adoption
in Australia
USA
• ELD, WMT and IFTA have opened new opportunities
• Strong leadership team now established with US locals
• Change in mindset from ELD compliance to value-added solutions
• WMT pilot programs e.g. I-95
Market Summary

32
06
OUTLOOK
Next chapter
AccountabilityChain of Responsibility
Human Interface
Health & Safety and
Driver fatigue Management
Vehicle Fitness
Inspect, Maintenance Monitoring,
MOT Compliance
Road Tax Suite
for Fuel and Mileage
Infrastructure Funding
GLOBAL TRANSPORTATIONEROAD
ChallengesSolutions

33
EROAD
Q & A
07

34
EROAD
Appendices
08

35
08
APPENDICES
Statement of Income (NZ$M)
PERIOD END1H191H18Movement
Continuing Operations
Revenue28.519.68.9
Expenses(22.3)(16.2)(6.1)
Earnings before interest, taxation, depreciation and amortisation 6.23.42.8
Depreciation of Property, Plant & Equipment(3.1)(2.4)(0.7)
Amortisation of Intangible Assets(3.1)(2.7)(0.4)
Amortisation of Contract and Customer Acquisition Assets(2.3)(1.7)(0.6)
Earnings before interest and taxation(2.3)(3.4)1.1
Finance Income0.00.00.0
Finance Expense(1.3)(0.8)(0.5)
Net Financing Costs(1.3)(0.8)(0.5)
Profit/(loss) before tax(3.6)(4.2)0.6
Income tax (expense) benefit0.20.3(0.1)
Profit/(loss) from continuing operations(3.4)(3.9)0.5
Profit/(loss) after tax for the year attributable to the shareholders(3.4)(3.9)0.5
Other comprehensive income(0.5)(0.1)(0.4)
Total comprehensive income/(loss) for the year(3.9)(4.0)0.1

36
08
APPENDICES
Balance Sheet (NZ$M)
PERIOD END1H191H18Movement
Cash22.30.821.5
Restricted Bank Account11.510.21.3
Other16.511.74.8
Total Current Assets50.322.727.6
Property, plant and equipment27.120.56.6
Intangible assets30.630.30.3
Costs to acquire and Contract Costs4.43.01.4
Other7.14.42.7
Total Non-Current Assets69.258.211.0
TOTAL ASSETS119.580.938.6
Payables to NZTA & ODOT11.410.21.2
Contract liabilities6.44.81.6
Borrowings33.217.216.0
Other liabilities13.912.31.6
Total Liabilities64.944.520.4
NET ASSETS54.636.418.2

37
08
APPENDICES
Cash Flows (NZ$M)
PERIOD END1H191H18Movement
Cash flows from operating activities
Other operating cash flows8.31.56.8
Interest paid(1.3)(0.8)(0.5)
Net cash inflow from operating activities7.00.76.3
Cash flows from investing activities
Property, Plant and Equipment (including hardware assets)(6.4)(5.0)(1.4)
Intangible Assets(3.7)(4.2)0.5
Contract and Customer Acquisition Assets(3.5)(2.3)(1.2)
Net cash outflow from investing activities(13.6)(11.5)(2.1)
Cash flows from financing activities
Bank loans6.810.1(3.3)
Other financings cash flows0.2(0.3)0.5
Net cash outflow from financing activities7.09.8(2.8)
Net increase/(decrease) in cash held0.4(1.0)1.4
Cash at beginning of the financial period21.90.921.0
Closing cash and cash equivalents (net of overdrafts)22.3(0.1)22.4

38
Areas of strategic growth
08
APPENDICES
Insights and Predictions
Collecting and
providing data feeds
Customer Solutions
Telematics and
Tax Software
Connected Devices
Truck and Trailer
Hardware
TODAYFUTURE
Develop
insights
capabilities
Build
out SaaS
features and
Integrations
Partner to
meet market
needs

39
Large total addressable market
(TAM)
08
APPENDICES
NEW ZEALAND
AUSTRALIA
USA
ELD
2.9m
Light Commercial
Vehicles
700k
Heavy Vehicles
306k Vehicles
Oregon WMT
Prospect
Eastern USA (I-95)
3.0m Vehicles
ELDs HOS Interstate Only
2.9m Vehicles
IFTA & IRP Services
Hours of Service
USA, Canada, Mexico
and Intrastate
500k
Light Commercial
Vehicles
120k Heavy Vehicles
CURRENT OPERATIONSPOTENTIAL OPERATIONS

40
Glossary
08
GLOSSARY
1. Automatic On Board Recording Device (AOBRD)
AOBRDs are electronic devices that can be used to
automatically record drivers’ hours of service.
2. Depot
EROAD’s web-based platform that allows customers to
manage (and pay) their RUC, WMT and fleet management
services.
3. Electronic Logging Device (ELD)
An electronic solution that synchronises with a vehicle engine
to automatically record driving time and hours of service
records.
4. Ehubo1 and Ehubo2 (GEN1 and GEN2)
EROAD’s first and second generation electronic distance
recorder which replaces mechanical hubodometers.
Ehubo is a trade mark registered in New Zealand.
5. Driver Vehicle Inspection Report (DVIR)
A report created by a driver identifying defects and safety
risks to a commercial vehicle.
6. Heavy Vehicle
A truck, or a truck and trailer, weighing over:3.5 tonnes in
New Zealand (required to pay RUC); 12 tonnes in Oregon
(required to pay WMT); or 4.5 tonnes in Australia.
7. International Fuel Tax Agreement (IFTA)
A cooperative agreement between all states (excluding
Alaska and Hawaii) of the United States, and the Canadian
provinces, designed to make it simpler for inter-jurisdictional
carriers to report and pay fuel excise taxes, requiring only
one fuel licence to operate across multiple jurisdictions.
8. International Registration Plan (IRP)
An agreement between all states (excluding Alaska, Hawaii
and Washington D.C.) of the United States, and the Canadian
provinces, for the registration of inter-jurisdictional vehicles.
Registration fees are paid to a fleet’s base jurisdiction, which
then distributes them to other jurisdictions based on the
miles travelled in each member jurisdiction.
9. Units on Depot
The number of EROAD devices installed in vehicles and
subject to a service contract with a customer.

41
Glossary
08
GLOSSARY
10. Units Pending Installation
The number of EROAD devices subject to a service contract
with a customer but pending Installation.
11. Total Contracted Units (TCU)
TCU is made up of Units on Depot plus Units Pending
Installation.
12. Future Contracted income (FCI)
A non-GAAP measure which represents contracted Software
as a Service (SaaS) income to be recognised as revenue in
future periods. Note that this definition has changed from the
previous period in order to align with the change in adoption
of NZ IFRS 15 and NZ IFRS 16.
13. Recurring Revenue
The revenue EROAD expects to receive in future months from
existing Total Contracted Units from monthly charging of
services, monthly hardware rentals and current monthly rates
of transaction fees.
14. 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, as a percentage of Units on Depot at the
beginning of the 12 month period.
15. Road User Charges (RUC)
Charges payable under the New Zealand Road User Charges
Act 2012 in respect of the distance travelled by a RUC
vehicle on a road. In New Zealand, RUC is payable for heavy
vehicles and all vehicles powered by a fuel not taxed at
source. The charges go towards the cost of repairing roads.
16. Weight-Mile Tax (WMT)
A mileage-based tax imposed on Heavy Vehicles according
to a combination of the number of axles and/or combined
weight of the vehicle and the number of miles driven in
Oregon, USA.
17. EBITDA Margin
Earnings before Interest, Taxation, Depreciation and
Amortisation (EBITDA) divided by revenue.

42
fi fl
Thank you
Steven Newman
CEO - EROAD
steven.newman@eroad.com