Leadership and Quarterly Operational Update

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Market Release

Leadership and Quarterly Operational Update

13 April 2022
Transportation technology services company EROAD (ASX/NZX: ERD), with its purpose of safer
and more sustainable roads, today released a leadership and quarterly update for the three
months ended 31 March 2022. Key points include:
• Chief Executive Officer search well advanced with an appointment expected in the
next few months;
• EROAD grew by 5,258 units (annualized growth of 10.3%) during the fourth quarter of
FY22 reflecting growth in all markets, in particular North America and New Zealand;
• Strong Enterprise pipeline in North America, with eight pilots underway representing
close to 26,000 units; and
• Coretex integration is on track with sales activities for the Coretex 360 platform and
Corehub hardware solutions underway in North America.

Leadership Update
As announced on Friday, Mark Heine, EROAD’s General Counsel and Company Secretary, has
been appointed as Acting Chief Executive Officer while the EROAD Board concludes the final
stages of the process to appoint a new Chief Executive Officer. The Board restarted the search
process last year which had been paused due to COVID travel restrictions and while the
Coretex acquisition was being negotiated. This process is expected to complete within the
next few months.
Graham Stuart, Chairman of EROAD said:
“Mark has been with EROAD since 2015 and has worked closely with the Board and Steven on
a day-to-day basis during this time as a member of EROAD’s Executive Team. He brings a deep
understanding of all aspects of the business in addition to strong leadership attributes. Mark
came to EROAD from positions at top New Zealand and overseas legal practices including Bell
Gully in Auckland and Allens in Sydney.”
Supporting Mark Heine in his role, EROAD confirms today that Margaret Delany will be
appointed Acting Chief Financial Officer, following the departure of the current Chief Financial
Officer Alex Ball. His resignation was announced in February and Margaret will take over this
role on Alex’s departure in May. Margaret joined EROAD in September 2020 as Group Financial
Controller following more than 15 years’ experience in senior finance, commercial and
leadership roles. Margaret was most recently Head of Finance at Summerset Group. The Chief
Financial Officer search will be progressed following the appointment of a Chief Executive
Officer.

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EROAD’s Chair Graham Stuart said:
“EROAD’s leadership team are extremely capable and remain energized, with a clear strategy
and direction as the company focuses on the integration of Coretex and builds growth
momentum. We are confident that the appointments of Mark and Margaret will ensure that
we continue the excellent progress achieved to date.”
“With the recent appointments of Selwyn Pellett (former founder and CEO of Coretex) and
Sara Gifford to the Board, we have the right capability and capacity to support the
management team as EROAD enters its next phase of growth. We are well advanced in our
search for a new Chief Executive Officer with technology and customer experience credentials.
EROAD remains well positioned for growth with a strong balance sheet, solid operational
performance and with the Coretex integration progressing to plan.”

Steven Newman founder, former Chief Executive Officer and Board member said:

“It has been a great privilege to lead and grow EROAD for 14 years from pre-revenue to annual
recurring revenues of greater than $100 million. Providing world class transportation
telematics solutions to more than 200,000 connected vehicles used daily by over 8,000
customers across New Zealand, North America and Australia.”

“EROAD is well set up for an incredible future having recently acquired Coretex, another great
Kiwi company. The EROAD team is over 650 strong, and together this incredibly talented team
is capable of driving the company forward to accelerate EROAD’s rate of growth and emerge
into a major player in global transportation telematics.”

“I wish the new Chief Executive who is expected to be announced in the coming months the
very best and will support their transition into the role. Colette and I remain committed and
confident significant shareholders.”


Quarterly Operational Update
EROAD’s Key Operating Metrics as at 31 March 2022 are as follows:


Total at 31
December
2021
Total at
31 March 2022
Total added
this
quarter
Contracted units*
203,439 208,697 5,258
New Zealand 104,804 106,916 2,112
North America 84,717 87,682 2,965
Australia 13,918 14,099 181
Clarity Dashcam 5,247 6,594 1,347
New Zealand 976 1,631 655
North America 4,149 4,846 697
Australia 122 117 (5)
Phillips Connect 1,019 1,554 535
*Total Contracted units is a non-GAAP measure used by EROAD which represents the total units subject to a customer contract and includes
both units connected to EROAD’s platforms and units pending instalment. A unit represents a hardware solution installed in a vehicle or
trailer providing telematics solutions. Following the launch of Clarity Solo and the completion of the Coretex acquisition, the definition of a
unit now includes Clarity Solo units and Coretex units

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EROAD grew by 5,258 units in the three months ended 31 March, ending the quarter at 208,697
units reflecting growth in all markets, particularly in North America and New Zealand. The
integration of the Coretex business remains on track with sales activities for the Coretex 360
platform and Corehub hardware solutions underway in North America as EROAD’s next generation
product platform. EROAD is confident that the advantages of the transaction identified through
due diligence remain as evidenced by the quality of the North American enterprise sales pipeline
that the company anticipated at the time of the acquisition.


New Zealand continues to grow strongly from EROAD’s core customer offering, with 2,112 units
added in the quarter from both new and existing customers across all segments in the market.
During the quarter, EROAD’s largest New Zealand Enterprise customer, Downer New Zealand
Limited renewed its contract for 5,500 assets installed with EROAD telematics devices with EROAD’s
Safe Driver product in addition to future subscriptions for EROAD Analyst, EROAD inspect and In-
cab pre-Trip Comms and service alerts. In addition, there are currently five pilots underway
relating to opportunities totaling around 2,700 units.


EROAD is well positioned to build further momentum in the North American market as a result of
its improved product market fit and market position following the acquisition of Coretex. North
America units increased by 2,965 in the quarter, principally reflecting increased sales of the Coretex
products to new and existing customers. The upgrade of customers from 3G to 4G hardware as
signaled in prior operational updates is nearing completion, with 94% of our EROAD legacy
customers and 88% of our Coretex legacy customers now on 4G hardware. The North American
business continues to have a strong pipeline of Enterprise opportunities and currently has eight
Enterprise customer pipeline opportunities at the pilot stage relating to potential opportunities
totaling close to 26,000 units.


Net growth in Australia was 181 units over the quarter (including the sale of 32 EROAD Solo
Cameras) reflecting the substantively complete rollout of the Ventia Australia contract. Australia
remains a substantial growth opportunity for EROAD in the medium term and sales focus will be on
EROAD Clarity Solo cameras and EROAD Where tags sales in H1 FY23, with further growth
momentum indicated following the launch of the fully integrated Coretex and EROAD platform
towards the end of 2022. There are five ongoing Enterprise customer opportunities at the pilot
stage relating to opportunities for approximately 2,000 units and c. 10,000 microtags.


Ends
Authorised for release to the NZX and ASX by the Chairman and Acting CEO of EROAD.

Conference call details
EROAD’s Acting Chief Executive Officer, Mark Heine, Chairman, Graham Stuart, and Chief
Financial Officer, Alex Ball, will discuss this leadership and operating update via a teleconference
commencing at 11.00am NZDT.

Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_UX7np0S9TbKLmBzfZGuWNw

For Investor enquires please contact:
Anna Bonney
Investor Relations
anna@merlinconsulting.co.nz
For Media enquiries please contact:
Hamish Haldane
ANZ Marketing Director
hamish.haldane@eroad.com