Disciplined execution delivers positive HY24 results
Disciplined execution delivers positive HY24 results
AUCKLAND, 29 November 2023: Transportation technology services company EROAD Limited
(NZX/ASX: ERD), with its purpose of ‘delivering intelligence you can trust, for a better world
tomorrow’, today released its financial results for the 6 months ended 30 September 2023.
All numbers are stated in New Zealand dollars (NZ$) and relate to the 6 months ended 30
September 2023 (H1 FY24), unless stated otherwise. Comparisons relate to the six months ended
30 September 2022 (H1 FY23)
Financial Highlights
1
• Revenue increased to $88.9m for H1 FY24 from reported revenue of $85.4m in H1 FY23
and normalized revenue of $78.4m in H1 FY23. This represents a 13% increase against
normalized revenue for the prior comparable period, taking account of the one-off
acquisition accounting adjustment of $7.0m in H1 FY23 relating to the Coretex merger.
Growth in revenue was delivered across all markets.
• EBIT reduced to a profit of $0.4m in H1 FY24 from a profit of $1.0m in H1 FY23.
Normalised
2
EBIT increased to $1.9m in H1 FY24 from $(3.4)m in H1 FY23.
• Annualised Monthly Recurring Revenue increased by $10.8m (6.8%), to $169.1m in H1
FY24 from $158.3m in H1 FY23, reflecting growth across all markets partially offset by an
FX loss of $4.4m.
• Free Cash Flow (to the firm) improved to an outflow of $0.2m in H1 FY24 from an outflow
of $21.7m in H1 FY23. This improvement is the result of growth in units, price increases, and
further cost savings. Following the capital raise, available liquidity (bank facility headroom
+ cash) was $59.4m.
1
EROAD has presented certain non-GAAP financial measures as part of its H1 FY24 results, which EROAD’s directors
and management believe provide useful information as they exclude any impacts of one-offs which can make it difficult
to compare and assess EROAD’s performance. The non-GAAP financial measures EROAD has used in this document
are Annualised Monthly Recurring Revenue (AMRR), EBIT, Normalised EBIT, Normalised Revenue and Free Cash Flow.
A detailed reconciliation of non-GAAP measures to EROAD’s reported financial information is included on EROAD’s
website (http://www.eroadglobal.com/global/investors/). General information about EROAD’s use of non-GAAP
financial information is included on page 2 of the H1 FY24 Investor Presentation.
2
Normalised for the recognition of one-off acquisition revenue, integration costs and costs associated with the 4G
hardware upgrade program.
Operational Highlights
• Asset Retention remains high at 94.2% in H1 FY24 (NZ 94%; AU 97%; NA 94%), compared
with 94.7% in H1 FY23.
• Key enterprise customer wins and expansions during the period Programmed in
Australia (+3k connections), renewed and expanded Boral (+1.3k connections) in Australia
and Kinetic (owner of NZ Bus +1k connections) in New Zealand, and expanded US Foods
(+600 connections) in North America. 59% of new enterprise units were expansions from
existing customers, demonstrating strong customer value from EROAD.
• FY24 guidance reconfirmed of revenue growth between 6 – 9% ($175m - $180m),
continued implementation of the cost-out program, and EBIT of $0 - $5m normalised for
the 4G hardware upgrade program.
• Accelerated product development using AI – EROAD is collaborating with Microsoft on
Generative AI product development to enhance customer experience and value. This is part
of EROAD's growth strategy, which has included an active search for strategic partnerships
in the high growth North American market and the building up of relevant in-market sales
capabilities and expertise.
• Cold-Chain partnership – EROAD has also commenced a partnership with Trane
Technologies to expand opportunities in the Cold-Chain market in conjunction with the
ThermoKing Refrigerated Trailer Units. This partnership helps EROAD to grow in the
refrigerated trailer market in NA which comprises over 400,000 trailers.
• EROAD expects to be free cash flow positive in the latter part of calendar 2024.
“Our results for the first half of FY24 demonstrate our ability to capitalise on strategic growth
combined with our consistent focus on robust financial management,” said Mark Heine, Chief
Executive Officer. “In March this year I outlined our focus was on repositioning EROAD’s business
model to simultaneously reduce cost, drive growth and generate cash. Six months on, we are
seeing delivery. We expect EROAD to start yielding positive free cash flow on a consistent basis in
the latter part of calendar year 2024. The trajectory to arrive at this involves many specific
milestones, and the Management team remains focused on these.”
EROAD Chair Susan Paterson said: “The half-year financial results show that EROAD is heading in
the right direction. This progress is founded on a solid platform of an established, profitable New
Zealand business segment balanced by a high-growth North America opportunity, a well-
resourced balance sheet following our recent capital raise, a sound long-term strategy, and
excellent positioning to the strong growth in business sustainability requirements. We have laid
the foundations for continued growth in New Zealand and Australia, and to target high-growth
opportunities in North America.”
ENDS
Authorised for release to the NZX and ASX by EROAD's Board of Directors.
Webinar details
EROAD’s Chief Executive Officer, Mark Heine, and Chief Financial Officer, Margaret Warrington,
will give a presentation and answer questions on the company's financial and operational
performance for H1 FY24 via a webinar commencing on Wednesday 29 November 2023 at
12:00pm NZT.
Register in advance for this webcast:
When: Wednesday 29 November Time: 12:00pm NZT
Topic: EROAD H1 FY24 Results Announcement
Link: https://www.eroad.co.nz/investor-presentation/
After registering, you will receive a confirmation email containing information about joining the
webinar. A replay of this conference call will be available once it has been uploaded to the
EROAD website under ‘presentations’ on https://www.eroadglobal.com/global/investors/
About EROAD
EROAD is a fully integrated technology, tolling and services provider, based in Auckland, New
Zealand. They design and manufacture in-vehicle hardware, operate secure payment and
merchant gateways and offer web-based value-added services. EROAD modernises road
charging and compliance for road transport by replacing paper-based systems with easy-to-use
electronic systems. They are the largest provider of road user charges (RUC) compliance in New
Zealand, and a leading provider of health and safety compliance and fleet management
solutions. EROAD is listed on the New Zealand Stock Exchange (NZX) and Australian Stock
Exchange (ASX) under the stock symbol of ERD. http://www.eroad.co.nz
For Media enquiries please contact:
Richard Llewellyn
richard@shanahan.nz
+64 275232362
For Investor enquires please contact:
Jason Kepecs
jason.kepecs@eroad.com
NZ contact: +64 21 990 474
AU contact: +61 477 711 136
---
1
EROAD (NZX: ERD ASX: ERD)
FinancialResults
For the 6 months ended 30 September 2023 (H1 FY24)
29 November 2023
2
Important Information
The information in this presentation is of a general nature and does not
constitute financial product advice, investment advice or any
recommendation. Nothing in this presentation constitutes legal,
financial, tax or other advice.
This presentation may contain projections or forward-looking statements
regarding a variety of items. Such projections or forward-looking
statements are based on current expectations, estimates and
assumptions and are subject to a number of risks, uncertainties and
assumptions.
All numbers relate to the 6 months ended 30 September 2023 (H1 FY24)
and comparisons relate to the 6 months ended 30 September 2022 (H1
FY23), unless otherwise stated. All dollar amounts are in NZD, unless
otherwise stated.
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,
EROAD or its subsidiaries, directors, employees, agents or advisers (to the
maximum extent permitted by law) do not give any warranty or
representation (express or implied) as to the accuracy, completeness or
reliability of the information contained in it or take any responsibility for
it. The information in this presentation has not been and will not be
independently verified or audited.
Non-GAAP Measures
EROAD has presented certain non-GAAP financial measures as part of its
H1 FY24 results, which EROAD’s directors and management believe
provide useful information as they exclude any impacts of one-offs which
can make it difficult to compare and assess EROAD’s performance. Non-
GAAP financial measures are not prepared in accordance with NZ IFRS
(New Zealand International Financial Reporting Standards) and are not
uniformly defined, therefore the non-GAAP financial measures reported
in this presentation may not be comparable with those that other
companies report and should not be viewed in isolation or considered as
a substitute for measures reported by EROAD in accordance with NZ
IFRS. Non-GAAP financial measures are not subject to audit or review.
The non-GAAP financial measures EROAD has used in this presentation
are identified and defined in the Glossary on page 41 of this presentation.
A detailed reconciliation of non-GAAP measures to EROAD’s reported
financial information is included on EROAD’s website
http://www.eroadglobal.com/global/investors/
3
Agenda
Result Overview
Operational Overview & Key Metrics
Geographic
Financial
4G Hardware UpgradeProgram
EROAD Strategy
Strategy
Partnerships
Region Collaboration
Market Opportunities
Outlook & Guidance
MARK HEINE, CEO
MARGARET WARRINGTON, CFO
4
01
H1 FY24
Result Overview
P AGE 4
5
HY Highlights
Revenue Up. Costs Down
Reported RevenueReported EBITFree Cash Flow
3
Cost Out (Annualised)
Future Contracted IncomeAsset RetentionAMRRNet Unit AddsNorth America
1.Normalised for $7.0m in HY23 for accounting adjustment related to contingent consideration 2. Normalised for 4G hardware upgrade costs of $1.5m 3. Free Cash Flow to the firm excludes financing costs
Normalised EBIT
$88.9m
+13.4% H1 FY23
of $78.4m
1
$0.4m
$1.0m H1 FY23
$1.9m
Normalised
2
vs
($3.4m) H1 FY23
$(0.2)m
FCF positive later half
calendar year 2024
$226.2m
+$10.5m on H1 FY23
94.2%
94.7% in H1 FY23
$169.1m
+6.8% H1 FY23
15,735
+11.7% H1 FY23
+100k
Unit milestone
reached
H1 FY24 FINANCIAL RESULTS
EXECUTING STRATEGIC PLAN
$8.5m
Further identified
following $10m FY23
5
6
H1 FY23H1 FY24
Normalised
Revenue Growth
Connection Growth
H2 FY22H1 FY23H2 FY23H1 FY24
208,697
217,519
227,149
242,884
+15,735
+9,630
+8,822
2,372
5,028
8,335
15,735
NA
53%
NZ
32%
AU
15%
Net New Connections
by Region
$78.4m
$88.9m
MILESTONE
100,000+
connections in North America
North America boosted by Sysco rollout and Enterprise expansions
~13% YoY normalised revenue growth
driven by 11.7% increase in connected
units and favourable foreign
exchange. North America accounted
for 53% of unit growth in H1 FY24 as
units from Sysco rollout are connected
7
CONSISTENT EXECUTION OF STRATEGY
STRONG FOUNDATIONS
•Launched decarbonisation tool in partnership with Energy
Efficiency & Conservation Authority (EECA) to help companies
reduce emissions
•Free emissions calculator developed with EECA available to
NZ transport industry to enable sustainability decisions
•EV State of Charge launched in NZ and NA
•New Zealand business generates strong positive free cash
flow, inclusive of growth capex.
•North American business is an investment in a high growth
opportunity in the largest addressable market
•Australian business builds on Trans-Tasman fleet benefits into
a market ready to capitalise on specialised product
development from North America
•Sysco install substantially completed
•8 Key enterprise account wins and renewals of 9,650
connections and growth within theseexisting customers of
4,478 connections
•On track $20m cost-out program resets the cost base
supporting profitable growth
•EROAD expects to be consistently free cash flow positive by
latter part of calendar 2024.
•Positive trajectory of cash flow being driven by new customer
wins, inflation indexation and cost control.
•Excluding one-time 4G upgrade program, EROAD would be
free cash flow positive today.
Intelligence empowering sustainability
Three complementary business units
Profitable growth at scale
Free Cash Flow positive focus
Strong interim results affirm our strategic direction
Positive Momentum
8
Sustainable,ProfitableGrowth
Price Uplift
6%
Australia &
New
Zealand
3%
North
America
Normalised
Cash burn
$0.9m / month
Down 79% from H1 FY23
Cost Out
$8.5m
Annualised
Savings
On track to meet $10m
(annualised) cost savings
targeted in FY24
Follows $10m of
annualised savings in
FY23
Capital
Liquidity
Financial Headroom
Capital raise completed
in September 2023,
providing financial
flexibility to execute to
plan
Liquidity of $59.4m
available via new bank
facility for headroom
and cash to execute
on strategy
Normalised
1
cash burn
reduced to
$0.9m/month H1 FY24
(from $4.1m in H1 FY23)
Implemented price
uplift in North America
of 3% and in Australia
and New Zealand of 6%
to better reflect
product value
$50m
Raised
$59.4m
Available
Operational
Overview
Delivering on Strategy
1 Normalisation excludes capital raised and draws and/or repayments of credit facilities.
9
14,128
2
Enterprise
Connections
Win, Retain
and Expand
Key Enterprise
Accounts
Strategic Priority:
•US Foods expanded (622)NA
•PLM (111) in NA
•Sysco supplied and expanded
(~1,400) NA
2,133
Expanded
2,800
Renewed
•Won Programmed
(3,000 for 5 years) in AU
3,000
Won
Net New Enterprise Logo
Onboard new accounts
and show value
Renew Contracts
Drive loyalty through benefits
to customer
Add-ons to Renewals
New products and solutions
increase contract value at
renewal
Increase Order Volume
Via customer fleet
expansion (organic)
Additional product adoption
Operational
Overview
Delivering on Strategy
11,128
From
Existing
customers
Value of
Enterprise
1
EROAD is Woolw orths' preferred supplier, presently w orking on renew ing 1,400 units, w ith 367 units already ordered
2
Year to date
*Connected unit numbers are rounded
6,195
Renewed and
Expanded
•Renewed (1,400)HatoHone
StJohnNZ
•Received confirmation (subject
to contract) of renewal (1,400)
Woolworths AU
1
•Renewed (1,950) and expanded
(1,000) Kinetic NZ
•Renewed(1,900)and
expanded(1,345) Boral inAU
10
GoalMetricFY22FY23H1 FY24
Strategy
FY26 Targets
SaaS
Quality
AMRR
$134.6m$153.7m$ 16 9 .1m*
Grow customer base in-line with
estimated market growth
3
11% -13% CAGR
Churn
7%5%6%Maintain historical churn rate
5% -7%
4
Average Lease Duration
Remaining (years)
1.41.31.4
Rebalance toward longer-dated
enterprise contracts
1.5 –2.0
5
InvestmentR&D as % of revenue
2 8 %2 3 %17%Focus on projects with near-term ROI
13% -15%
6
ReturnFree Cash Flow
1
Margin
-39%-18 %0%Improve cash efficiency and drive NA growth
9%+
7
1
A non-GAAP measure representing operating cash flow and investing cash flow reported in the Statement of Cash Flows (excluding net interest paid).
2
Based on delivery plan of Project Switch.
3
Targeted growth in-line with blended market growth in North America and ANZ.; ANZ fleet management unit market is estimated to grow at a 16% CAGR (2019-2024); North America private fleet telematics market is expected to grow by 11%
per year until 2030 (Sources: ACT Research, I.H.S., Berg, Expert interviews).
4
In-line with historical churn rates (based on FY20-22A range).
5
Assumes that average lease duration remaining (years) increases with weighting to longer dated enterprise contracts.
6
Decrease in R&D as % of revenue is driven by streamlining of activities towards projects with near-term ROI.
7
Driven by additional cash efficiencies and growth in North America. Includes effects from roll-off of the switch program, leverage (holding fixed costs as we grow) and the anticipated $20m cost-out.
*Annualised monthly recurring revenue includes negative FX impact of $4.4m in H1 FY24
Targeting Free Cash Flow
1
positive late calendar 2024, neutrality in FY25
2
Implementation of refreshed strategy provides pathway to sustainable, profitable growth
Focused execution delivers strong results against refreshed strategy
Key Metrics Trend
11
H1 FY24 New Zealand
CUSTOMER EXPANSION
346 customers expanded their
services by an additional 8,794
connections
CUSTOMER LOYALTY
Kinetic NZ (Go Bus Parent Co)
renewed (1,950) and expanded
(1,000) 5 year term
Hato Hone St John renewed
(1,400) 5 year term
PRICE UPLIFT
6% price lift implemented 1 July
2023
to reflect product value
4,350
Enterprise connections expanded
and renewed 1,000 are net-new
Strong cash generative market with a focus on multi-product
adoption
New Zealand
5,028
Net unit
adds
NZ$58.17
Monthly SaaS ARPU
NZ$28.7m
EBITDA
4.8%
14.8%
94%346
Asset Retention Rate
4G Hardware Upgrade
Programme slightly elevating
churn
Customers
addedservices
Continued
stable growth
bringing total
connected
unit count to
121,483. Up 4%
on FY23
H1 FY23H1 FY24
Gross Units AddedNet Units Added
8,213
8,559
5,3645,028
12
H1 FY24 North America
Solid growth with momentum building in enterprise focus
North America
8,335
Net unit
adds
NZ$60.23
Monthly SaaS ARPU
USD$36.85
NZ$15.9m
EBITDA
1.8%
25.2%
93.9%149
Asset Retention
Rate
Customers
added services
SYSCO 9,000+ UNIT UPDATE:
Sysco rollout substantially completed
Additional 1,400+ connections
supplied above initial contract
CUSTOMER LOYALTY
93% of new unit sales are to existing
customers
68% of those are enterprise
TEAM
Welcomed new VP Sales NA
Implemented new marketing
strategy
PRICE UPLIFT
3% price lift implemented 1 July 2023
to reflect product value
2,914
8,335
H1 FY23H1 FY24
Net Units AddedGross Units Added
12,936
7,344
MILESTONE
100,000+
connections in North America
Includes fleet resizes
forcustomers who
own their hardware
on evergreen
contracts (approx. -
1.7k units).
Churn is mostly SMB
and dealer network.
Approx 600 units lost
to business closure.
12
13
544
2,372
H1 FY23H1 FY24
Net Units AddedGross Units Added
H1 FY24 Australia
7,645
Enterprise connections won,
expanded or renewed.
4,345 are net new units
Solid growth with momentum building in enterprise focus
Australia
2,372
Net unit
adds
NZ$46.67
Monthly SaaS ARPU
AU$43.16
NZ$1.7m
EBITDA
2.7%
88.9%
97.4%88
Asset Retention
Rate
Customers
added services
Strong growth in units connected reflecting
momentum from focused sales efforts. Once
fully installed, the 4,345 booked new units for
HY deliver a 28% growth in overall Australian
unit count from FY23.
NEW ENTERPRISE
Programmed Australia
(3,000) 5 year term
CUSTOMER LOYALTY
Boral renewed (1,900)
and expanded (1,345)
Received confirmation (subject
to contract) of renewal (1,400)
Woolworths AU
1
PRICE UPLIFT
6% price lift implemented July
1 to reflect product value
1
EROAD is Woolw orths' preferred supplier, presently w orking
on renew ing 1400 units, w ith 444 units already ordered
2,614
1,136
13
14
HY24
Financials
Programmed Australia
A leading provider of Staffing, Facility
Management, Maintenance and Care services
3,000 units to use MyEROAD
15
H1 FY23H1 FY24
Normalised Operating Costs
2
1
Revenue normalised for $7.0m in H1 FY23 relating to accounting adjustment for contingent consideration
2
Operating costs normalised for 4G hardware upgrade costs of $0.5m in H1 FY24 and integration costs of $2.6m in H1 FY23
3
EBIT normalised for contingent consideration of $7.0m in H1 FY23, 4G hardware upgrade costs of $1.5 in H1 FY24, and integration costs of $2.6m in H1 FY23
Normalised Revenue
1
Identified $8.5m of annualised cost savings
in H1 FY24. On track to meet $10m
(annualised) of cost savings targeted in
FY24, following $10m of cost-out in FY23.
Revenue of $88.9m is up 13.4% on
normalisedH1 FY23 revenue
reflecting unit growth, price
increases and foreign exchange.
Normalised EBIT
3
Normalised EBIT of $1.9m is on
target to meet FY24 guidance
range ($0-5m)
$78.4m
$88.9m
$(3.4)m
$1.9m
H1 FY23H1 FY24
$62.0m
$62.8m
H1 FY23
H1 FY24
Financial results delivered above guidance, demonstrating our commitment to deliver on our promises
Revenue & EBIT
16
Cost to support & service
as a % of revenue
Customer acquisition cost
(CAC) per unit
Cost to acquire customers
as a % of revenue
Lower cost per unit in H1 FY24 reflects the
lag between the costs spent to acquire a
customer and the recognition of a new
unit added following installation.
Expansions from existing customers,
and measured sales and marketing
spend show positive trends in CAC.
The decline over the prior year reflects
savings from driving efficiencies and
the cost-out program.
11%
11%
8%
3%
2%
3%
H1 FY22H2 FY23H1 FY24
CAC ExpensedCAC Capitalised
$587
$690
$405
H1 FY22H2 FY23H1 FY24
6.4%
5.9%
5.9%
H1 FY22H2 FY23H1 FY24
Management focus on gaining efficiency across all cost measures
Operational Efficiency
17
NZ$m (approximate)
Operating cost as a % of normalised revenue
1
Maintaining operating costs at stable levels
Stable operating cost base reflecting cost out program
will allow EROAD to grow revenue and profitability
Operating costs have decreased versus the prior period
as a percentage of revenue following the $10m of cost-out
in FY23 and $8.5m of cost-out identified in H1 FY24.
1
Revenue normalised for $7.0m in HY23 relating to accounting adjustment for contingent consideration
H1 FY23H1 FY24
Cost-out program to deliver cost base for profitable growth
Operating Costs
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
18
R&D decreasing as % of revenue on strategic shift
•Total R&D spend of $14.7m
in H1 FY24, 17% of revenue.
•Compares to $20.5m 24%
in H1 FY23.
•Target R&D of $30m in
FY24 equates to 17% of the
mid-point of FY24 revenue
guidance ($175-180m).
•By holding R&D constant
we achieve leverage from
investment
NZ$m
10.513.214.411.19.6
2.8
5.2
6.1
5.6
5.1
28%
28%
24%
19%
17%
0%
5%
10%
15%
20%
25%
30%
0.0
5.0
10.0
15.0
20.0
25.0
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
R&D - CapitalisedR&D - ExpensedR&D % of revenue (RHS)
R&D % of revenue decreases as re-focusing initiatives drive ROI and speed to market
Research & Development
19
Free cash flow to the firm estimated to be consistently positive late calendar year 2024 based on current
forecasts, inflation indexation, achievable cost savings, and profile of 4G hardware upgrade program.
EROAD would be free cash flow positive today excluding the one-time 4G hardware upgradeprogram
Cash burn continued to decrease due to cost-out program and benefit of historical investment in inventory.
Acceleration of 4G hardware upgrade program is expected to elevate cash burn in the second half of FY24.
Positive free cash flow to the firm trajectory
Monthly cash burn continues to reduce
Cash flow continues to improve through execution
Cash Flow Trend
-14.6
-30.5
-21.7
-8.2
-0.2
H1 FY23H1 FY24
$4.1m
$0.9m
1
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
1
Normalised for capital raised during the period.
20
1
Under new refinanced facility agreement executed on 29 September 2023
2
NZX retail entitlement net proceeds which closed on 2 October 2023
Bank Facilities
Secured new 3-year $80m bank facility in
October in conjunction with capital raise.
Amortisation will reduce the facility limit to $60m
at end of the 3-year commitment
$80m
Bank Facility
Added NZ domestic bank (Kiwibank) in addition to
two existing lenders (ANZ, BNZ)
New facility provides added duration and flexibility,
with headroom to covenants
Net leverage ≤ 1.50x reducing to 1.25x by September 2025 and
1.00x by June 2026 Interest coverage ratio ≥ 4.00x
3
NZ bank
lenders
Provides company with total liquidity of $59m.
Interest costs are reduced by $1m per year
Sufficient liquidity to grow and achieve free cash
flow positive without the need for further capital
$59.4m
Total liquidity
Strong balance sheet for strategic execution
Liquidity
Sufficient liquidity to fund strategic plan (post-raise)
$16.8m
$27.5m
$15.1m$59.4m
21
NZ$mFY24FY25FY26
Expected investment
(Hardware + Program costs)
$11–$13m$8–$10m$5–$7m
One-off accelerated replacement program costs relate
specifically to the 3G Network shutdown
June, 2024
Telstra 3G Shut Off - AU
August, 2024
One NZ 3G Shut Off Starts
- NZ
Upgrades to ANZ network
•EROAD is accelerating the swap out of 2/3G devices
to 4G devices over a 2-3 year period
•We remain confident in our plan to upgrade all
devices in both markets by the retirement dates.
•Any New Zealand customers who do not update pre
3G shut down will maintain connectivity via the 2G
network
Unit replacement program progressing to plan, with 46% of all units in ANZ already 4G compatible
4G Hardware Upgrade Program ANZ
Active 4G
units in ANZ
46%
Units still
to replace
Rollout
progress
Key dates
2G back up connectivity
Late 2025
One NZ 2G Shut Off - NZ
22
P AGE 22
02
Strategy
Update
23
Turnaround the core
Future Growth
Approach
Corporate overhead reductionEfficiency in ANZ / Growth in NA
Growth in NA Verticals
Timing
FY23FY24~3-5 years
Headcount reduction
Overhead expense reduction
Asset tracking solution expanded
CoreHub Xtreme launched in NA
Dashcam enhancements
Value focus
and selected
achievements
Accelerated 3G replacement program
Ongoing cost-out for SaaS costs
Supplier negotiations
Customer self service portal launched
Reefer Predictive Maintenance launched
Pivoted and recruiting enterprise sales
team in NA
Established new marketing strategy in NA
CoreHub Xtreme launch planned in AU
Sustainability Module launched in ANZ
Annualised
savings
$10m completed$10m targeted
$8.5m identified year-to-date
WE ARE HERE
Growth in large enterprise customer base
Capitalise on sales and product
improvements made
Rationalisation of cost base
Economies of scale on development and
other functions
Optimising business operations underway, clearing the way for scaleable growth
Strategy Timeframe
24
Market Trend
Despite increasing pressure to reduce
environmental impact, sustainability
efforts across our markets are limited by:
•Lack of EV charging infrastructure
•Price and supply chain limitations
on EV fleets
•Limited range in current EVs
Immediate and meaningful emission
and footprint reductions within their
existing control include:
•Fuel usage
•Driver behaviour
•Vehicle performance
•Reduced product waste
EROAD core products already track,
measure and control leading indicators
for key areas of carbon emissions.
Layering carbon reduction targets into
existing efficiency and cost saving benefits
adds value to customers, and the planet.
•Idle controls
•Vehicle maintenance
•Routing – fuel usage, fresh delivery
•Optimised pre-cool for cold-chain
•Temperature control (food quality)
•Speed governors - fuel usage
Developed in conjunction with EECA
MyEROAD Sustainability Module is just
one step in making emissions reduction
as commonplace for our customers as
safety measures and cost improvements.
EROAD IntelligenceEROAD Better World
Positioned for emerging social and environmental trends
Sustainability
25
As communicated at March 2023 Investor Day
North American Strategic Partnership Update
To accelerate key product development and reduce
barriers for customer acquisition, two strategic
technology collaborators were identified, and
secured.
Discussions with additional technology partners in
North America are ongoing.
Strategic Partner Rationale
EROAD commenced
searching for partners in
North America to assist with:
•Go to market channels
•Technology partnerships
•Possible capital
Partnership Focus Areas
Large
Enterprise
Cold ChainConstruction
26
Technology: Microsoft
•Enables use of Generative AI to
accelerate development of
CoreTemp
•Expedites adoption of high-value
added predictive analytics software
•Applicable for existing Reefer
customers and prospects globally.
Reefer market in NA is 400,000+
trailers.
•The roadmap of AI enhancements
will help EROAD deliver at speed.
400,000+
Reefer Trailers in North America
Accelerating adoption through intelligence + accessibility
OEM: ThermoKing
•Partnered with Trane
Technologies for direct
integrations with their Thermo
King Transport Refrigerated Units.
•Allowing us to offer customers the
benefits of our monitoring
without the hard outlay of full
hardware, whilst still retaining our
margins.
•Testing currently planned with an
existing large enterprise customer
Strategic Collaborators: Technology
While the Microsoft collaboration will be
applied to CoreTemp as the first product,
the partnership spans the entire
customer roadmap globally.
Cold Chain
✓
Large Enterprise
✓
Cold Chain
✓
Large Enterprise
✓
Construction
✓
27
Shared innovations and solutions – three complementary markets
•Developed market
•Established business
serving top operators
•Free cash flow positive after
corporate and R&D allocations
•Stable market growth and opportunity
to expand into adjacent markets
•Shared product development for
economies of scale
•Sustainability features in NZ products
supportive of long-term North
American trends
•Workflow solutions in NA, such as
construction and refrigeration, support
launch of value-add products in
Australia and New Zealand
NORTH
AMERICA
AUSTRALIA
NEW ZEALAND
•Large established enterprise customers
•Solutions for several specialised verticals
•Free cash flow utilising after corporate and R&D allocations
•High growth market with opportunity to grow market share
•Growth opportunity
•Trans-Tasman fleet entry
•NA Product Compatibility:
•Harsh fluctuating climates
•Long distances
•Roots in mining and construction
Leveraging our strengths for growth
28
Strategic R&D allocations across retention and growth areas globally
•Ongoing maintenance
spend in platforms and
systems for existing
customers for retention.
•Targeted investment in
new offerings increases
value by opening new
customer opportunities
and expansion within
existing.
•Our R&D priorities vary
from period to period in
response to customer
and market needs.
R&D Investments for growth
58%
Total R&D investment
is for net new growth
Capex Breakdown
64%
New to EROAD
16%
Learnings &
Future
11%
Planned
enhancements
8%
Reliability,
availability,
serviceability
and scalability
Opex Breakdown
41%
Reliability,
availability,
serviceability
and scalability
40%
Quality/bugs
10%
Planned
enhancements
9%
Other
53%
6%
41%
41%
New Zealand
Includes new gen trailer
tracker, decarbonisation
tool and 4G swap out
6%
Australia
Includes features to
retain existing
enterprise customers
including AU fatigue
management tool
53%
North America
Includes expanding
capabilities to support
new enterprise
customers, and
supportenhancements
for US tax and fatigue
products
OpexCapex
Total
R&D
R&D by
Region
29
Significant growth achievable through market share gain in North America
Market Share
NEW ZEALAND
Value proposition
New Zealand’s leading transport
technology platform for compliance,
productivity, health & safety, logistics
and sustainability.
REVENUE
2
NZ$89.4m
TAM
3
NZ$0.1b
Trusted by:
Largest operator in NZ
9.3% CAGR
1
since Nov-21
Cash generative geography with
leading market position in
target verticals
AUSTRALIA
Value proposition
Trusted transport technology platform for
health & safety, cold chain and
construction assurance.
Trusted by:
#1 Integrated Construction
Material Co
16.6% CAGR
1
since Nov-21
Opportunity to leverage leading
New Zealand market position for
trans-Tasman fleets
REVENUE
2
NZ$11.2m
TAM
3
NZ$0.5b
NORTH AMERICA
12% CAGR
1
since Nov-21
Largest market with
significant long-term
growth prospects
REVENUE
2
NZ$77.2m
TAM
3
NZ$10.0b
Value proposition
Insights, workflow and productivity solutions help
enterprise customers manage complexity through
complete integration and vertical specialisation.
Trusted by:
Top 2 food shippers in North America
Opportunity to drive
revenue in North
America through
market share gains
from referenceable
customers such as
Sysco
1
Growthof contracted units since acquisition of Coretex
2
Revenue figures are first half FY24 annualised
3
Total addressable market, source: ACT Research, I.H.S, Berg, Expert interviews, Fleet manager interviews, reported financials
30
03
Outlook
& Guidance
31
FY24 Guidancereconfirmed
•Revenue growth of between 6 –9%
•Cost-out program to continue
•EBIT of $0m to $5m normalisedfor 4G hardware upgrade programme
Free Cash Flow neutral for FY25, positive in FY26
Implementation of refreshed strategy provides pathway to sustainable,
profitable growth.
EROAD expects to be consistently FCF positiveby latter part of calendar 2024
Outlook
Continued, consistent growth in New Zealand, with increased opportunity
with proposed government policies for eRUC.
Building on momentum gained in Australia and launching expanded product
suite beyond existing customers.
Growing with our existing customer base through expansions alongside
newly built enterprise sales and marketing team.
FY24 Guidance
Revenue$175m –$180m
Normalised EBIT$0m to $5m
R&D spend$30m
On track to delivering a path to sustainable, profitable growth
Outlook & Guidance
32
04
Appendix
33
Reported Revenue increased $3.5m primarily
due to unit growth of approximately 25,000
units since 30 Sep 2022. The prior year
included $7.0m ofaccounting adjustment
related to contingent consideration
Strength of the USD has resulted in increased
revenue of approximately $1.2m.
EBITDA increased $4.8m on the benefit of
cost reductions in the first half of this financial
year with operating expenses decreasing year
on year. This is in spite of additional costs
associated with the 4G hardware upgrade
program commencing of $1.5m.
D&A increased $5.4m on the additional unit
growth since 30 Sep 2022 as well as
accelerated depreciation on the units
impacted by the 4G hardware upgrade
program.
Interest increased $1.0m in line with
increased borrowing in the period as well as
movements in the interest rates.
NZ$mH1 FY24H1 FY23Change ($)
Revenue88.985.43.5
Operating expenses(63.3)(64.6)1.3
Earnings before interest, taxation, depreciation
and amortisation
25.620.84.8
Depreciation of property, plant and equipment(11.0)(8.0)(3.0)
Amortisation of intangible assets(9.3)(8.1)(1.2)
Amortisation of contract and customer aquisition
assets
(4.9)(3.7)(1.2)
Earnings/(loss) before interest and taxation0.41.0(0.6)
Net financing costs(4.7)(3.7)(1.0)
Profit/(loss) before tax(4.3)(2.7)(1.6)
Income tax benefit/(expense)3.13.3(0.2)
Profit(loss) after tax for the period attributable to
the shareholders
(1.2)0.6(1.8)
Items that are or may be reclassified subsequently to
profit or loss
2.75.0(2.3)
Total comprehensive income / (loss) for the period1.55.6(4.1)
Statement of Income
34
NZ$mH1 FY24H1 FY23Change ($)
Cash received from customers88.578.010.5
Payments to suppliers and employees(58.4)(64.4)6.0
Investment in contract fulfilment assets(5.6)(3.6)(2.0)
Net interest(3.8)(1.7)(2.1)
Income taxes paid0.00.00.0
Cash flows from operating activities20.78.312.4
Property, plant & equipment(12.8)(14.3)1.5
Investment in intangible assets(9.8)(16.1)6.3
Contract fulfilment and customer acquisition assets(2.1)(1.3)(0.8)
Cash flows from investing activities(24.7)(31.7)7.0
Bank loans(18.0)15.5(33.5)
Payment of lease liability(1.1)(1.2)0.1
Receipts in advance for equity issue5.10.05.1
Issue of equity29.20.029.2
Cost of raising capital(2.5)0.0(2.5)
Cash flows from financing activities12.714.3(1.6)
Net increase (decrease) in cash held8.7(9.1)17.8
Cash at the beginning of the financial period8.113.9(5.8)
Effects of exchange rate changes on cash0.0(0.4)0.4
Closing cash and cash equivalents16.84.412.4
Cash Flow Statement
Operating Cash Flowincreased $12.4m
primarily due to the unit growth, foreign
exchange impacts, and cost savings.
Investing Cash Flow decreased $7.0m
primarily due to lower integration activity
versus the prior year. Prior year included
spend to secure inventory during the global
supply chain crisis.
Financing Cash Flowdecreased $1.6m on
higher borrowings partially offset by new
capital raised. Partial proceeds from the
equity raise of $15m were received post-
balance date.
35
Balance Sheet
Cashincreased $8.7m following partial
proceeds received from the capital raise (final
$15m of proceeds were received post balance
date) and pay down ofdebt.
Property, plant and equipment increased
$3.6m due to the ongoing growth from new
hardware leasing and the 4G hardware
upgrade program.
Inventory balance at 30 September 2023 was
$27.2m.
Costs to acquire and contract fulfillment
costs increased $2.2m reflecting growth and
renewals.
Borrowingsdecreased by $18.1m since 31
March 2023 largely due to the equity raise
and the concurrent pay down of debt.
NZ$mH1 FY24FY23Change ($)
Cash16.88.18.7
Restricted bank accounts18.211.66.6
Costs to acquire and contract fulfilment costs8.27.60.6
Other36.534.42.1
Total current assets79.761.718.0
Property, plant and equipment81.477.83.6
Intangible assets242.6242.10.5
Costs to acquire and contract fulfillments costs8.05.82.2
Other18.415.43.0
Total non-current assets350.4341.19.3
Total assets430.1402.827.3
Payable to transport agencies18.311.96.4
Contract liabilities21.719.42.3
Borrowings52.570.6(18.1)
Other liabilities52.752.10.6
Total liabilities145.2154.0(8.8)
Net assets284.9248.836.1
36
NZ$Local $
NZ$mH1 FY23H1 FY24H1 FY23H1 FY24
North American ARPUNZ$57.25NZ$60.23US$36.18US$36.85
New Zealand ARPUNZ$55.50NZ$58.17NZ$55.50NZ$58.17
Australian ARPUNZ$46.51NZ$46.67A$42.02A$43.16
ARPU Trend
37
9,973
14,332
19,264
24,041
28,140
32,452
38,129
41,939
49,802
59,843
65,285
71,446
75,674
80,366
84,526
87,892
93,639
106,916
112,280
116,455
121,483
1,513
2,120
2,373
2,874
5,072
14,099
14,643
15,636
18,008
600
1,990
3,158
4,501
5,301
6,102
9,736
17,757
20,955
24,660
31,227
34,002
35,294
35,437
33,992
87,682
90,596
95,058
103,393
9,973
14,332
19,864
26,031
31,298
36,953
43,430
48,041
59,538
77,600
86,240
96,106
108,414
116,488
122,193
126,203
132,703
208,697
217,519
227,149
242,884
H1 FY14H2 FY14H1 FY15H2 FY15H1 FY16H2 FY16H1 FY17H2 FY17H1 FY18H2 FY18H1 FY19H2 FY19H1 FY20H2 FY20H1 FY21H2 FY21H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
North America
Australia
New Zealand
Unit Count
38
NEW ZEALAND
$21.9
NORTH AMERICA
$8.0m
AUSTRALIA
$0.2m
CORPORATE & DEVELOPMENT
$(30.8)m
H&A Assets - Hardware & Accessory Assets • CA Assets - Customer Acquisition Assets • CE EBITDA – Corporate and Elimination EBITDA • H&A under Construction - Hardware & Accessories +/_ Inventories
Inflows
Outflows
Total
Free Cash Flow to the Firm By Region
39
The best people
powered by
cutting edge
technologies
that deliver
value to our
customers.
Real intelligence
to drive change.
Intelligence
Earned trust
through the
validity of our
data, the way
it’s collected
and processed.
And trust in us,
to do what we
promise.
Trust
Always taking
the wider
environmental
context into view.
Solving
immediate
customer
problems while
thinking about
the impact to the
world around us.
Better World
We think
beyond today
and into the
future.
What we do now,
shapes the
people,
customers and
business we have
tomorrow.
Tomorrow
Knowing our
customers needs,
and meeting them
where they are
and can benefit.
Embracing
flexibility, humility,
and ruthless
dedication
Delivering
Delivering intelligence you can
trust for a better world tomorrow
OUR PURPOSE:
40
Compliance and assuranceProductivityHealth & Safety
•Driver behaviour
monitoring and feedback
•Electronic logbook
•Vehicle inspections
•Speed monitoring
•Incident detection, alerting
and replay
•RUC and fuel tax compliance
—Electronic, automated RUC
purchases and claims
—Fuel tax reporting and IRP1
registration
•Industry-specific solutions
—Cold chain assurance
—Construction assurance
—Waste and recycling assurance
•GPS tracking and
geofencing
•Fleet maintenance
•Fuel management and
idling reports
•Vehicle inspections
Dashcams
Iot hubs
Trackers and sensors
Sustainability
•Fuel management and
idling reports
•Fleet utilisation
•Decarbonisation
assessment & insights
1
2
Proprietary and 3
rd
party hardware
Powered by
2
EROAD provides a complete connected network that turns disparate customer data into action
Integrated solutions overview
41
ANNUALISED MONTHLY RECURRING
REVENUE (AMRR)
A non-GAAP measure representing monthly
Recurring Revenue for the last month of the
period, multiplied by 12. It provides a 12 month
forward view of revenue, assuming unit numbers,
pricing and foreign exchange remain unchanged
during the year.
ASSET RETENTION RATE
The number of Total Contracted Units at the
beginning of the 12 month period and retained as
Total Contracted Units at the end of the 12 month
period, as a percentage of Total Contracted Units at
the beginning of the 12 month period.
CHURN
The inverse of the asset retention rate.
COREHUB
EROAD’s next generation telematics hardware that
collects rich data, meets electronic logging device
certification.
COSTS TO ACQUIRE CUSTOMERS (CAC)
A non-GAAP measure of costs to acquire
customers. Total CAC represents all sales &
marketing related costs. CAC capitalised includes
incremental sales commissions for new sales,
upgrades and renewals which are capitalised and
amortised over the life of the contract. All other
CAC related costs are expensed when incurred and
included within CAC expensed.
COSTS TO SERVICE & SUPPORT (CTS)
A non-GAAP measure of costs to support and
service customers. Total CTS represents all customer
success and product support costs. These costs are
included in Administrative and other Operating
Expenses.
CY (CALENDAR YEAR)
12 months ended 31 December
EBITDA
A non-GAAP measure representing Earnings
before Interest, Taxation, Depreciation and
Amortisation (EBITDA). Refer Consolidated
Statement of Comprehensive Income in
Financial Statements.
EBITDA MARGIN
A non-GAAP measure representing EBITDA
divided by Revenue.
EHUBO, EHUBO2 and EHUBO 2.2
EROAD’s first and second generation
telematics hardware. EHUBO is a trade mark
registered in New Zealand, Australia and the
United States.
ELECTRONIC LOGGING DEVICE (ELD)
An electronic solution that synchronises with a
vehicle engine to automatically record driving time
and hours of service records
ENTERPRISE
A customer where the $AMRR is more than $100k
in NZD for the Financial year reported
FREE CASH FLOW
A non-GAAP measure representing operating cash
flow and investing cash flow reported in the
Statement of Cash Flows.
FREE CASH FLOW TO THE FIRM
A non-GAAP measure representing operating cash
flow and investing cash flow net of interest paid and
received. For the purposes of this presentation,
payments for the acquisition of Coretex have been
excluded.
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. Refer
Revenue Note2of the H1 HY24 Financial
Statements.
FY (FINANCIAL YEAR)
Financial year ended 31 March.
H1 (HALF ONE)
For the six months ended 30 September.
H2 (HALF TWO)
For the six months ended 31 March.
LEASE DURATION
Future contracted income as a proportion of
reported revenue.
MONTHLY SAAS AVERAGE REVENUE PER UNIT
(ARPU)
A non-GAAP measure that is calculated by dividing
the total SaaSrevenue for thehalfyear(asreported
in Note 2 of the H1 FY24 Financial Statements)
minus the contract liability discounting gain (as
reported in the H1 FY24 Reconciliation of Operating
Cash Flows)by the TCU balance at the end of each
month during the year.
NORMALISED EBITDA
Excludes one-off 4G hardware upgrade
programcosts ($1.5m). H1 FY23normalisations
include acquisition accounting revenue
($7.0m), and integration costs ($2.6m).
NORMALISED EBITDA MARGIN
Excludesone-offitems, consistent with the
definition provided for Normalised EBITDA
NORMALISED REVENUE
Excludes the one-off acquisition accounting revenue
in H1 FY23 ($7.0m).
ROAD USER CHARGES (RUC)
In New Zealand, RUC is applicable to Heavy Vehicles
and all vehicles powered by a fuel not taxed at source.
The charges are paid into a fund called the National
Land Transport Fund, which is controlled by NZTA,
and go towards the cost of repairing the roads.
SAAS
Software as a Service, a method of software delivery
in which software is accessed online via a
subscription rather than bought and installed on
individual computers.
SAAS REVENUE
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.
TOTAL CONTRACTED UNITS
Represents EROAD and Coretex branded units
subject to a customer contract both on Depot and
pending instalment and Coretex branded units
currently billed.
UNIT
A communication device fitted in-cab or on a
trailer. Where there is more than one unit fitted
in-cab or on a trailer, it is counted as one unit
(excluding Philips Connect).
360
A web-based platform that allows customers to
access data collected by CoreHub and the
associated reports.
Glossary
42
42
ASX & NZX: ERD
investors@eroad.com | eroadglobal.com/investors
EROAD acknowledges the Indigenous Nations, First Peoples, Tangata Whenua and
Custodians of the lands and waterways on which our offices reside in New Zealand,
Australia and the United States of America. We express gratitude and appreciation
to these peoples for sharing their culture and traditions and stewarding these
lands. We recognise and pay respect to their elders, past, present and emerging.
---
EROAD
2024 Interim Report
PAGE 2 PAGE 3
EROAD 2024 INTERIM REPORT
Contents
PAGE 4
LETTER FROM THE CHAIR
PAGE 6
LETTER FROM THE CHIEF EXECUTIVE OFFICER
PAGE 8
CASE STUDY
PAGE 10
FINANCIAL STATEMENTS
PAGE 17
NOTES TO FINANCIAL STATEMENTS
PAGE 38
INDEPENDENT REVIEW REPORT
PAGE 40
GLOSSARY
PAGE 43
DIRECTORY
Non-GAAP Measures
EROAD has used non-GAAP measures when
discussing financial performance in this document.
The directors and management believe that these
measures provide useful information as they
are used internally to evaluate performance of
business units, to establish operational goals and
to allocate resources. Non-GAAP measures are not
prepared in accordance with NZ IFRS (New Zealand
International Financial Reporting Standards) and
are not uniformly defined, therefore the non-GAAP
measures reported in this document may not be
comparable with those that other companies report
and should not be viewed in isolation or considered
as a substitute for measures reported by EROAD in
accordance with NZ IFRS.
The non-GAAP measures EROAD have used are,
Annualised Monthly Recurring Revenue (AMRR),
Costs to Acquire Customers (CAC), Costs to Service
& Support (CTS), EBITDA, Normalised EBITDA,
EBITDA margin, Normalised EBITDA margin,
Normalised Revenue, Free Cash Flow and Future
Contracted Income (FCI).
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
PAGE 4
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
PAGE 5
Having reached the midpoint of FY24, I am pleased to report
the first 6 months of our financial year demonstrate that EROAD is
achieving momentum towards our promise of sustainable profitable
growth. EROAD has delivered to plan, with increased revenue,
reduced costs, grown connections, launched new products, and
gained new enterprise customers. The organisational strategy
launched in March this year is translating into value for customers
and improved financial performance for EROAD.
Letter from the Chair
Susan Paterson
Chair
This progress is founded on a solid platform of an established,
profitable New Zealand business. This is balanced by a
high-growth North America opportunity and an emerging
Australian enterprise business. Additionally, we now have a
well-resourced balance sheet following our recent capital raise,
a sound long-term strategy, and excellent positioning to the
strong growth in business in accordance with sustainability
requirements. We are optimistic about the future. We have
laid the foundations for continued growth in New Zealand and
Australia, and to target high-growth opportunities in North
America and are focused on delivering our plan.
Leading with purpose and empowering
sustainability via intelligence
EROAD is committed to our purpose of delivering intelligence
our customers can trust, for a better world tomorrow. One
key pillar in fulfilling our purpose is through enabling our
customers to improve their operations, and in turn steer them
toward a more cost-effective and sustainable business across
both their direct operations, and environmental footprint.
Our founding products were focused on providing efficient
methods for fleet operators to pay their share of funding for
roads and infrastructure as well as to manage their health and
safety responsibilities. Through the merger with Coretex, that
product DNA expanded further to include assurance of the
load that our customers carry. Today, our products continue
to improve safety outcomes for customers, and importantly
for all road users, on a daily basis. While our integrated
solutions have always empowered operators to reduce
waste and emissions, as well as save fuel and capital, we
now have launched a product suite in New Zealand that
makes emissions reductions more visible and achievable
for businesses.
In September, EROAD, in collaboration with New Zealand’s
Energy Efficiency and Conservation Authority (EECA),
delivered two new sustainability solutions aimed at reducing
emissions across the transport sector: the Emissions
Calculator, available to the NZ public, and the Sustainability
Module, available to EROAD’s NZ customer base. Both tools
are powered by EROAD‘s AI technology and data from our
base of connected vehicles and assets, providing users with an
overview of their fleet‘s emissions profile and suggestions for
emissions reduction, along with the potential savings they can
make. We look forward to launching these products into our
other markets in the near future.
Delivering free cash flow positive
As well as reconfirming our full year guidance, based on
current forecasts, inflation indexation and achievable cost
savings, we estimate we will reach free cash flow positive
by the latter part of calendar year 2024. This is consistent
with our guidance of ending FY25 free cash flow neutral.
Importantly, we note EROAD would already be free cash
flow positive if we did not have to incur the additional and
accelerated costs of the one-off 4G upgrade programme in
ANZ as 3G networks are switched off.
Recapitalising our roadmap for growth
Our recent $50 million capital raise strengthened our
balance sheet and gives certainty to our stakeholders. Our
reduced debt and greater headroom give us more flexibility
and optionality to pursue the enterprise customer growth
opportunities we see. In the world of enterprise customers,
particularly those with substantial fleet sizes and extended
contract durations, a robust balance sheet is essential to
ensure financial stability throughout the entire contract
period. Additionally, this reinforces confidence amongst our
institutional investors that we have the resilience to weather
any economic challenges.
Board Renewal
Relentless execution needs the right team, and we continue to
build this at both the Board and Executive level to ensure we
have the right mix of skills, energy and experience.
In July 2023, following my role as Chair of the Finance Risk
and Audit Committee, I assumed the position of Board Chair.
We are delighted to welcome David Green to the Board, who
succeeded the long-standing director Tony Gibson. David
held senior executive roles at ANZ and Deutsche Bank, is the
Board Chair of BT Funds Management NZ and is also on the
Westpac NZ Board. We are actively conducting a search for an
additional director to complement the Board‘s existing skills.
Thank you for your continued support as we continue our
strategic programme to deliver sustainable growth and
shareholder value.
PAGE 6 PAGE 7
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
Letter from the Chief
Executive Officer
Delivering on our strategy
This positive financial outcome has been underpinned by
a rigorous focus on both the bottom and top lines, with
a 13% increase in normalised revenue1 and reduced cash
burn down from $4.1m per month in H1 FY23 to $0.9m per
month for H1 FY24. We have also identified a further $8.5m
in annualised costs to be removed from the business and
we are on track to remove $10m in annualised costs this
financial year on top of the $10m in annualised costs we
removed in FY23. Our free cash flow, excluding financing
costs, is currently ($0.2)m. Our management team is
focused on achieving free cash flow positive in the latter
part of calendar year 2024.
Disciplined execution
Since setting our new strategic direction earlier this year,
we have been committed to delivering it, and importantly
removing any effort and cost which does not serve it. We
remain confident we are on track to complete the 4G upgrade
programme (internally labelled “Sunrise”) in Australia and
New Zealand. Our accelerated plan will see us meet our
upgrade targets before the relevant sunset dates. The Sunrise
programme is projected to impact cash flow within the range
of $11m to $13m in FY24.
It‘s important to highlight that if we weren‘t undertaking
the Sunrise programme, we would be free cash flow
positive today.
Our second strategic priority is to grow in North America.
Operationally in H1 FY24 we have recruited and onboarded
a VP of Sales, implemented a market price uplift of 3% to
reflect the greater value provided to customers, and redrawn
our product roadmap to focus on this growth market. We are
now substantially through installing the 9,000+ vehicles in the
fleet of the Fortune 500 company Sysco and have already
expanded their penetration through supplying a subsequent
1,400 connections.
Compelling growth
EROAD remains a business with both a stable and profitable
base and a high growth future. But we recognise our
shareholders require a better understanding of our growth
paths to calculate the fair value of the business. EROAD is
essentially three complementary business units, in different
phases of the business cycle. New Zealand is the established
foundation of our business generating strong positive
free cash flow and continues to grow at a consistent rate,
Australia is capitalising on strong momentum with enterprise
opportunities and North America is the future growth engine.
The two key elements of our strategy, which is to turnaround
our core by reducing costs and optimising business
operations, and to position ourselves for high growth
opportunities in our North American market, is starting to
deliver. We have now reached the milestone of 100,000
connections in North America, establishing a credible foothold
and significant scale in a very large market that is an important
part of EROAD’s future. This market now represents over 40
percent of our connections, and expansion in North America is
pivotal to achieving enduring shareholder value.
To achieve this expansion, strategic partnerships in North
America are in development, with active discussions
underway. I am pleased to have recently announced our
technology collaboration with Microsoft, which allows us to
use AI to assist further development of CoreTemp globally and
expedite adoption by our Reefer customers and prospects.
The Reefer market is one of the largest single verticals in
transportation. In North America alone, it consists of over
400,000 trailers. CoreTemp, which is a high value-added
predictive analytics software, is just the first in a significant
roadmap of AI enhancements the Microsoft collaboration will
help us deliver to our markets at speed.
At the same time, our NZ business is profitable and continues
to perform well, with further growth being targeted. The NZ
business is very complementary to North America, funding
product development which benefits growth in all three
markets. Gaining scale now in the larger high growth market
of North America, on the back of our strong established
position in New Zealand and the conversion of enterprise
opportunities in Australia, are important elements of EROAD’s
long-term growth aspirations.
Building momentum
Across the business, I am pleased to report that we are
seeing a story of continued success with enterprise
customers. We have signed a 5-year 3000-unit deal with
Programmed, a significant provider of Staffing, Facility
Management, Maintenance and Care services for hundreds
of businesses and communities around Australia. We have
also renewed or expanded our existing partnerships with
7 enterprise customers in all markets, delivering 11,128
connections. Represented are Sysco (NA), PLM (NA),
US Foods (NA), Kinetic (NZ), Hato Hone St John (NZ),
Woolworths (AU, subject to completion of final contract)
and Boral (AU), all blue-chip organisations, at the forefront of
innovation in their industries.
We continue to see momentum from our Coretex integration
and our shift to targeting enterprise customers. This is a
story we are working hard to continue. We are confident
that if we continue to deliver results in line with or above
guidance, increased shareholder value will follow. Thank you
for your ongoing support.
Our results for the first half of FY24 demonstrate our ability to
capitalise on strategic growth combined with our disciplined focus
on robust financial management. In March this year, I outlined
our focus was on repositioning EROAD’s business model to
simultaneously reduce costs, drive growth and generate cash.
Six months on, we have encouraging results.
Mark Heine
Chief Executive Officer
1 Reported revenue for H1 FY24 is $88.9m, compared to $85.4m in H1 FY23. Normalised revenue for H1 FY23 is $78.4m,
taking account of the one-off acquisition accounting adjustment of $7.0m relating to the Coretex merger in H1 FY23.
PAGE 8 PAGE 9
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Case study
Open Country Dairy has grown significantly since they first
started using EROAD for RUC management in 2011. As New
Zealand’s second largest milk processor, the company’s fleet
has grown from 6 to 75 trucks and 270 professional drivers who
deliver and collect billions of litres of milk across New Zealand
every year.
National Fleet Manager, Brett Hamilton says the one goal that’s
never compromised at the company is sending their people
home unharmed.
In 2021, Brett and his team decided to upgrade the fleet to
EROAD Clarity Connected dashcams. The technology has
proven its worth on more than one occasion. As Brett states,
“Unfortunately, we have had some significant accidents. The
drivers themselves could never have reacted quick enough to
avoid these head on situations, and the dashcam footage was an
integral part of clearing them.”
Brett says the EROAD solution does more than any accident
investigation could, because it shows clip-by-clip in high
definition how the incident unfolded, “the clarity that the
dashcam provides, is tenfold what you would ever be able to
investigate”.
The protection afforded by the dashcam extends to the business
too. Without dashcam footage, the serious incidents they’ve
had could have taken hours of investigation, and there’d be
no guarantee, “it would have been our driver‘s word against
someone else,” says Brett. Should it have ended in court with
a judge or jury, “that could be hundreds of thousands, if not
millions of dollars.”
As well as easy access to valuable truck dashcam footage, the
team use EROAD’s full fleet management system day in, day
out to know where their vehicles are located, as well as manage
their RUC, fleet maintenance and much more. “Logistically we’re
always using EROAD,” says Brett “I don‘t know how you run a
transport company without it.”
PAGE 8
Road to Safety:
Open Country Dairy‘s
Investment in Truck Dashcams
for Driver Protection
PAGE 10 PAGE 11
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2023
30 Sep 202330 Sep 2022
UnauditedUnaudited
Notes$M's$M’s
Revenue288.985.4
Operating expenses(63.3)(64.6)
Earnings before interest, taxation, depreciation and
amortisation
25.620.8
Depreciation of property, plant and equipment4(11.0)(8.0)
Amortisation of intangible assets5(9.3)(8.1)
Amortisation of contract and customer acquisition assets(4.9)(3.7)
Earnings before interest and taxation0.41.0
Finance expense(4.9)(3.7)
Finance income0.2-
Net financing costs(4.7)(3.7)
Loss before tax(4.3)(2.7)
Income tax benefit /(expense)83.13.3
(Loss)/profit after tax for the period attributable to the
shareholders
(1.2)0.6
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss2.75.0
Total comprehensive income for the period1.55.6
(Loss)/earnings per share - Basic (cents) (1.14)0.50
(Loss)/earnings per share - Diluted (cents) (1.13)0.49
The above Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
Financial
Statements
PAGE 12 PAGE 13
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
Condensed Consolidated Statement of Financial Position
As at 30 September 2023
30 Sep 202331 Mar 2023
UnauditedAudited
Notes$M's$M’s
Current assets
Cash and cash equivalents316.88.1
Restricted bank accounts318.211.6
Trade and other receivables36.534.4
Contract fulfilment costs5.85.3
Costs to obtain contracts2.42.3
Total Current Assets79.761.7
Non-current assets
Property, plant and equipment481.477.8
Intangible assets5242.6242.1
Derivative financial asset-0.2
Contract fulfilment costs5.64.0
Costs to obtain contracts2.41.8
Deferred tax assets18.415.2
Total Non-Current Assets350.4341.1
Total Assets430.1402.8
Condensed Consolidated Statement of Financial Position (continued)
As at 30 September 2023
30 Sept 202331 March 2023
UnauditedAudited
Notes$M's$M’s
Current liabilities
Borrowings60.91.4
Trade payables and accruals24.923.0
Payables to transport agencies318.311.9
Contract liabilities9.67. 4
Lease liabilities1.41.7
Employee entitlements4.33.7
Total Current Liabilities59.449.1
Non-current liabilities
Borrowings651.669.2
Contract liabilities12.112.0
Lease liabilities5.35.8
Derivative financial liabilities0.3-
Deferred tax liabilities16.517.9
Total Non-Current Liabilities85.8104.9
Total Liabilities145.2154.0
Net Assets284.9248.8
Equity
Share Capital7337.9305.7
Share capital premium/discount(19.9)(19.9)
Other reserves1.7(1.0)
Accumulated losses(34.8)(36.0)
Total Shareholders' Equity284.9248.8
The above Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Chair,
29 November 2023
Chair of the Finance, Risk and Audit Committee,
29 November 2023
PAGE 14 PAGE 15
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
Condensed Consolidated Statement of Changes in Equity
For the six months ended 30 September 2023
Share
Capital
Share
Premium /
Discount
Accumulated
losses
Translation
Reserve
Hedging
Reserve
Total
$M’s$M’s$M’s$M’s$M’s$M’s
Balance as at 31 Mar 2022 (Audited)293.3(6.5)(35.4)(3.5)(0.2)247. 7
Profit after tax for the period--0.6--0.6
Other comprehensive income---5.0-5.0
Total comprehensive income--0.65.0-5.6
Transactions with owners of the Company
Equity settled share-based payments1.5-(1.5)---
Balance as at 30 Sep 2022 (Unaudited)294.8(6.5)(36.3)1.5(0.2)253.3
Balance as at 31 Mar 2023 (Audited)305.7(19.9)(36.0)(1.2)0.2248.8
Loss after tax for the period--(1.2)--(1.2)
Other comprehensive income---3.2(0.5)2.7
Total comprehensive income--(1.2)3.2(0.5)1.5
Transactions with owners of the Company
Equity settled share-based payments0.4-2.4--2.8
Share capital issued - net of costs26.7----26.7
Funds received in advance for shares 5.1----5.1
Balance as at 30 Sep 2023 (Unaudited)337.9(19.9)(34.8)2.0(0.3)284.9
The above Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Consolidated Statement of Cash Flows
For the six months ended 30 September 2023
30 Sep 2023 30 Sep 2022
UnauditedUnaudited
Notes$M’s$M’s
Cash flows from operating activities
Cash received from customers88.578.0
Payments to suppliers and employees(58.4)(64.4)
Payments for contract fulfilment assets(5.6)(3.6)
Interest received0.2-
Interest paid(4.0)(1.7)
Net cash inflow from operating activities20.78.3
Cash flows from investing activities
Payments for investment in property, plant & equipment4(12.8)(14.3)
Payments for investment in intangible assets5(9.8)(16.1)
Payments for investment in cost to obtain contracts(2.1)(1.3)
Net cash outflow from investing activities(24.7)(31.7)
Cash flows from financing activities
Receipts from bank loans2.024.5
Repayments of bank loans(20.0)(9.0)
Payment of lease liability(1.1)(1.2)
Receipts from issue of equity29.2-
Receipts in advance for equity raise5.1-
Payments for costs of raising equity(2.5)-
Net cash inflow from financing activities12.714.3
Net increase/(decrease) in cash held8.7(9.1)
Cash at the beginning of the financial period8.113.9
Effects of exchange rate changes on cash and cash equivalents-(0.4)
Closing cash and cash equivalents16.84.4
The above Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
PAGE 16 PAGE 17PAGE 16 PAGE 17
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Reconciliation of Operating Cash Flows with Reported Profit After Tax
For the six months ended 30 September 2023
30 Sep 2023 30 Sep 2022
UnauditedUnaudited
$M’s$M’s
Reconciliation of operating cash flows with reported profit
after tax
(Loss)/Profit after tax for the six month period attributable
to the shareholders
(1.2)0.6
Add/(less) non-cash items
Tax asset recognised(3.2)(3.3)
Depreciation and amortisation25.219.8
Other non-cash expenses3.41.0
Contingent consideration and revaluation-(6.3)
Unwinding of interest expense for discounted contract liabilities 0.5-
Contract liability discounting gain(0.9)(0.1)
25.011.1
Add/(less) movements in other working capital items
Increase in trade and other receivables(1.7)(6.3)
Increase in current tax payables0.1-
Increase in contract liabilities2.25.9
Increase in trade payables, interest payable and accruals1.90.6
Increase contract fulfilment cost(5.6)(3.6)
(3.1)(3.4)
Net cash from operating activities20.78.3
Notes to the Financial Statements
For the six months ended 30 September 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated interim financial statements presented for the six months ended 30 September 2023 are for EROAD Limited
(EROAD), and its subsidiaries (collectively referred to as the “Group”). The Group provides electronic on-board units and software
as a service to the transport industry.
EROAD Limited (the “Company”) is a company domiciled in New Zealand registered under the Companies Act 1993 and listed
on the New Zealand Stock Exchange (NZX) Main Board and Australian Stock Exchange (ASX). The Company is a FMC reporting
entity for the purposes of the Financial Markets Conduct Act 2013.
The consolidated interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in
New Zealand (NZ GAAP). NZ GAAP in this instance being New Zealand Equivalents to International Financial Reporting Standards
(NZ IFRS) as appropriate for profit-oriented entities. These consolidated interim financial statements also comply with the New
Zealand equivalent to International Accounting Standard 34: Interim Financial Reporting (NZ IAS 34), and International Accounting
Standard 34: Interim Financial Reporting (IAS 34) and are prepared in accordance with the Financial Markets Conduct Act 2013.
The consolidated interim financial statements for the six months ended 30 September 2023 are unaudited and have been
the subject of review by the auditor, pursuant to NZ SRE 2410 (Revised): Review of Financial Statements Performed by the
Independent Auditor of the Entity as issued by the External Reporting Board.
These consolidated interim financial statements have been prepared using the same accounting policies as, and should be read
in conjunction with the Group’s last annual consolidated financial statements as at and for the year ended 31 March 2023 (‘last
annual financial statements’). These consolidated interim financial statements do not include all of the information required for a
complete set of NZ IFRS financial statements. However, selected explanatory notes are included to explain events and transactions
that are significant to an understanding of changes in the Group’s financial position and performance since the last annual
financial statements.
These financial statements have been approved for issue by the Board of Directors on 29 November 2023.
(a) Going concern
As at balance the Group’s current assets exceeded its current liabilities by $20.3M (31 March 2023: $12.6M). The directors have
carefully considered the ability of the Group to continue to operate as a going concern for at least the next 12 months from the
date the financial statements are authorised for issue. It is the conclusion of the directors that the Group will continue to operate
as a going concern and the financial statements have been prepared on that basis.
In reaching their conclusion the directors have considered the following factors:
• Cash reserves as at 30 September 2023 of $16.8M and bank borrowing facility of $90.0M of which $37.5M was undrawn as at
30 September 2023 after including borrowing costs of $0.1M. This provides sufficient level of headroom to help support the
business for at least the next 12 months from the date of issuance of these financial statements;
• The Future Contracted Income of $226.2M provides certainty of forecast revenue;
• 29,749,556 Ordinary shares were issued at $0.70 NZD per share on 2 October 2023. In total $20.8M has been raised, of which
$5.1M was received in advance on 29 September 2023; and
• The directors have made due enquiry into the appropriateness of the assumptions underlying the budgetary forecasts.
(b) Basis of measurement
The financial statements are prepared on the historical cost basis, except for certain financial instruments carried at fair value.
(c) Presentation currency
The financial statements are presented in New Zealand dollars ($) which is the Group’s presentation currency, and all values are
rounded to million dollars to one decimal place ($M’s) except where stated. Items included in the financial statements of each
of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates
(the “functional currency”). The functional currency of the Company and its New Zealand subsidiaries is New Zealand dollars.
The functional currency of the Company’s Australian and North American subsidiaries are Australian dollars and United States
dollars respectively.
PAGE 18 PAGE 19PAGE 18 PAGE 19
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
(d) Standards or interpretations issued but not yet effective and relevant to the Group
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning on or
after a 1 April 2023.
The Group has not adopted, and currently does not anticipate adopting, any standards prior to their effective dates.
(e) Critical accounting estimates and judgements
In applying the Group’s accounting policies, management continually evaluates judgements, estimates and assumptions
based on experience and other factors, including expectations of future events that may have an impact on the Group. All
judgements, estimates and assumptions made are believed to be reasonable based on the most current set of circumstances
available to the Group. Actual results may differ from the judgements, estimates and assumptions.
The significant judgements, estimates and assumptions made by management in the preparation of these financial statements
are outlined within the financial statement notes to which they relate. These are :
• Taxation - recognition and utilisation of tax losses
• Intangible assets - assumptions used in the impairment tests; capitalisation of development costs
• Property, plant and equipment - determining residual values and useful lives
(f) Comparative information
As 31 March 2023, the statement of cash flow presentation has been amended to reclassify the contract fulfilment assets from
investing activities to operating activities cash flows. The impact of this reclassification on the comparative period is shown
below. The reclassification better reflects the Group’s operation.
30 Sep 2022
previously
reported
Reclass30 Sep 2022
Reclassified
$M’s$M’s$M’s
Cash flows from operating activities11.9(3.6)8.3
Cash flows from investing activities(35.3)3.6(31.7)
PERFORMANCE
This section focuses on the Group’s financial performance. This section includes the following notes:
NOTE 1 SEGMENT REPORTING
NOTE 2 REVENUE
NOTE 1 SEGMENT REPORTING
EROAD operating segments are based on geographic location for operating companies and corporate and development costs.
These operating segments equate to the Group’s strategic divisions and are reported in a manner consistent with the internal
reporting provided to the Chief Executive Officer (“CEO”). The CEO is considered to be the chief operating decision maker
(“CODM”).
The four segments/strategic divisions offer different services and are managed separately because they require different
technology, services and marketing strategies. For each strategic division, the CODM 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: Operating companies serving customers in Australia
• New Zealand: Operating companies serving customers in New Zealand
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be
allocated on a reasonable basis. Unallocated items comprise income tax, derivative financial instruments, finance income and
expenses.
Inter-segment pricing is determined on an arm’s length basis.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
PAGE 20 PAGE 21PAGE 20 PAGE 21
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Reportable segment information
Key information related to each reportable segment as provided to the CODM is set out below.
Corporate &
Development
North America New ZealandAustralia
30 Sep
2023
Unaudited
30 Sep
2022
Unaudited
30 Sep
2023
Unaudited
30 Sep
2022
Unaudited
30 Sep
2023
Unaudited
30 Sep
2022
Unaudited
30 Sep
2023
Unaudited
30 Sep
2022
Unaudited
$M's$M's$M's$M's$M's$M's$M's$M's
Revenue
Software as a Service (Saas)
revenue
--36.530.642.036.75.04.0
Hardware revenue0.1-1.82.6--0.40.1
Transaction fee revenue ----1.21.7--
Other revenue 126.726.20.31.01.51.80.20.2
Total revenue26.826.238.634.244.740.25.64.3
Earnings before interest,
taxation, depreciation &
amortisation
(20.7)(17.6)15.912.728.725.01.70.9
Total assets290.3275.899.4102.883.757. 816.616.1
Depreciation of property, plant
& equipment
(1.1)(1.0)(5.2)(3.4)(4.0)(3.4)(0.6)(0.3)
Amortisation of intangible assets(6.0)(4.7)(2.6)(2.8)(0.4)(0.4)(0.3)(0.4)
Amortisation of contract and
customer acquisition assets
--(1.5)(0.8)(3.1)(2.6)(0.4)(0.3)
1
Revenue from Corporate & Development Markets includes R&D Grant Income of $0.9m (30 September 2022: $0.8m and reassessment of contingent
consideration of $7m).
NOTE 1 SEGMENT REPORTING (CONTINUED)NOTE 1 SEGMENT REPORTING (CONTINUED)
Reconciliation of information on reportable segments
30 Sep 2023
Unaudited
30 Sep 2022
Unaudited
$M’s$M’s
Revenue
Total revenue for reportable segments115.7104.9
Elimination of inter-segment revenue(26.8)(19.5)
Consolidated Revenue88.985.4
EBITDA
Total EBITDA for reportable segments25.621.0
Elimination of inter-segment EBITDA-(0.2)
Consolidated EBITDA25.620.8
Depreciation
Total depreciation for reportable segments(10.9)(8.1)
Elimination of inter-segment depreciation(0.1)0.1
Consolidated Depreciation(11.0)(8.0)
Amortisation of intangible assets
Total amortisation for reportable segments(9.3)(8.3)
Elimination of inter-segment amortisation-0.2
Consolidated Amortisation(9.3)(8.1)
30 Sep 2023
Unaudited
31 Mar 2023
Audited
Total assets
$M’s$M’s
Total assets for reportable segments490.0462.6
Elimination of inter-segment balances(59.9)(59.8)
Consolidated Total Assets430.1402.8
PAGE 22 PAGE 23PAGE 22 PAGE 23
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Allocation of goodwill, property plant and equipment and other intangible assets
Included within Total Assets are Development Assets of $102.4M (31 March 2023: $100.4M) which for the purpose of the
segment note have been allocated to the Corporate & Development Market based on the ownership of intellectual property. The
amortisation for these assets are also presented in the Corporate & Development segment. The Group’s cash generating units
(CGUs) are North America, New Zealand and Australia. For impairment testing purposes management allocate the Development
Assets to the CGU based on the specific CGU that the Development Asset relates to, or if the Development Asset is developed for
use globally across all CGU’s, the asset is allocated to CGU’s based on the proportionate share of the Group’s Contracted Units.
Property plant and equipment and other finite intangible assets are also included and tested as part of impairment testing of
repective CGU’s.
Also included in the total assets is the intangible assets acquired through the acquisition of the Coretex subsidiaries and resulting
goodwill. The allocation of these to cash-generating units has been done based on valuation expert advice as part of acquisition
accounting during the period ended 31 March 2022.
The allocation of the Development Assets, goodwill and other intangibles to CGU’s within the following reportable segments for
the purpose of impairment testing was as follows:
Development AssetsGoodwillBrand
Customer
relationships
$M's$M's$M's$M's
30 Sep 2023 Unaudited
North America47. 588.82.119.9
New Zealand49.35.7-1.1
Australia5.613.6-3.3
102.4108.12.124.3
31 Mar 2023 Audited
North America46.388.82.420.7
New Zealand48.35.7-1.1
Australia5.813.6-3.5
100.4108.12.425.3
Geographic information
The geographic information below analyses the Group’s revenue and non-current assets by the Company’s country of domicile
and other countries. In presenting the following information revenue has been based on the geographic location of customers
and assets were based on the geographic location of the assets. These allocations are not aligned with the Group’s reportable
segments.
30 Sep 2023
Unaudited
30 Sep 2022
Unaudited
$M’s$M’s
Revenue
New Zealand44.747. 0
All foreign countries:
USA38.633.8
Australia5.64.4
Total revenue88.985.2
30 Sep 2023
Unaudited
31 Mar 2023
Audited
$M’s$M’s
Non-current assets
New Zealand236.4230.4
All foreign countries:
USA83.584.6
Australia12.110.7
Total non-current assets332.0325.7
Non-current assets exclude financial instruments and deferred tax assets.
30 Sep 2023
Unaudited
31 Mar 2023
Audited
$M’s$M’s
Reconciliation of geographical non-current assets
to total non-current assets
Geographical non-current assets332.0325.7
Deferred tax assets18.415.2
Derivative financial instruments-0.2
Total non-current assets350.4341.1
NOTE 1 SEGMENT REPORTING
(CONTINUED)NOTE 1 SEGMENT REPORTING (CONTINUED)
PAGE 24 PAGE 25PAGE 24 PAGE 25
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
NOTE 2 REVENUE
30 Sep 2023
Unaudited
Restated
30 Sep 2022
Unaudited
$M’s$M’s
Revenue from contracts with customers
Software as a service (Saas) revenue83.571.3
Hardware revenue (subscription basis)2.33.0
Other
Transaction fee revenue1.21.7
Other revenue and income1.08.6
Grant income0.90.8
Total Revenues88.985.4
Set out above is the disaggregation of the Group’s revenue. The disaggregation reflects the nature, amount, timing and uncertainty of
revenue and cash flows are affected by economic factors.
Revenue recognition
Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it
transfers control over a good or a service to a customer.
The Group provides electronic on-board units to its customers, which comprise the provision of hardware and the rendering of
services.
For the majority of the Group’s customers the supply of electronic on-board units (leased or purchased outright), installation
of the units and providing services are not distinct and have one single performance obligation (linked to the service
contract). Consequently, the Group does not recognise revenue separately for these goods and services but recognises this revenue
together as the provision of software as a service (SAAS) revenue.
Each of the Group’s main sources of revenue are described in detail below:
Software as a service revenue
Software as a service (SaaS) revenue represents revenue earned from customer contracts for the sale or rental of hardware,
installation services, training and support services and provision of software services.
As noted above, the Group has determined that for the majority of customers the supply and installation of units and the services
are not distinct and treated as one single performance obligation. That is, EROAD’s customers do not have the right to direct the
use of EROAD’s assets (such as the Ehubo, Corehub and TMU units) as EROAD continues to have the right and ability to change
how the asset operates during the customer’s contract period. These contracts are therefore accounted for as service contracts. 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 on a straight line basis over the contract period to reflect the fulfilment of the
performance obligations as they arise. There are no variable consideration terms within the contracts.
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.
A contract liability is recognised where consideration is received in advance of the completion of associated performance obligations.
The contract liability is 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. The majority of contracts are for 3 years and can be for a term of up to 5 years. As a result
there is a financing component which the group recognise as a finance cost when consideration is received in advance.
Hardware revenue (subscription)
Hardware revenue purchased with a subscription is recognized over the first month’s subscription. Hardware revenue reflects
hardware sales where a subscription must be separately purchased to utilise the hardware and obtain access to services. The
hardware together with the monthly subscription is considered a single performance obligation. A receivable is recognised by the
Group when the right to consideration becomes unconditional, as only the passage of time is required before payment is due.
The installation revenue associated with uncontracted hardware units is included in the hardware revenue line and recognised
when the installation is completed.
The services revenue associated with the uncontracted hardware units is included in the software as a service revenue line and is
recognised when the performance obligation is completed.
Transaction fees
Transaction fee revenue relates to the collection of Road User Charges (RUC) fees. The Group acts as an agent for transport
authorities in the market that is operates in. Where fees are collected on their behalf, the Group charges a commission. The
revenue recognised is the net amount of the commission fee earned by the Group.
Grant income
Government grants are recognised at fair value in the statement of comprehensive income over the same periods as the costs for
which the grants are intended to compensate. No unfulfilled conditions or contingencies exist related to the government grants.
Other revenue and income
Included in other income and revenue in 30 September 2022 is $7.0M related to the reassessment of contingent consideration
related to the acquisition of Coretex Limited.
Future contracted income
The Group reports the Non-GAAP measure, Future Contracted Income. The definition of Future Contracted Income includes all
future hardware and SaaS cash inflows relating to income under non-cancellable long-term agreements. The disclosure below
aligns with the Future Contracted Income reported by the Group.
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 2023 are
expected to be recognised by EROAD based on the time bands disclosed below.
30 Sep 2023
Unaudited
30 Sep 2022
Unaudited
$M’s$M’s
Software as a Service (SaaS) revenue
No later than one year93.998.9
Later than one year, no later than five years132.3116.8
Total price allocated to remaining performance obligations226.2215.7
NOTE 2 REVENUE
(CONTINUED)
PAGE 26 PAGE 27PAGE 26 PAGE 27
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
WORKING CAPITAL
This section provides information about the primary elements of the Group’s working capital. This section includes the
following note:
NOTE 3 CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND PAYABLES TO TRANSPORT AGENCIES
NOTE 3 CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND PAYABLES TO TRANSPORT AGENCIES
30 Sep 2023
Unaudited
31 Mar 2023
Audited
$M’s$M’s
Cash and cash equivalents16.88.1
Restricted bank accounts18.211.6
35.019.7
Cash and cash equivalents exclude restricted bank accounts. Restricted bank accounts are presented separately from cash and
cash equivalents on the face of the Statement of Financial Position and movements in restricted bank accounts are excluded from
the Statement of Cash Flows. The restricted bank accounts relate to Road Users tax collected from clients due for payment to the
appropriate government agency.
Payables to transport agencies(18.3)(11.9)
LONG-TERM ASSETS
This section provides information about the investment the Group has made in long-term assets to operate the business.
This section includes the following notes:
NOTE 4 PROPERTY, PLANT AND EQUIPMENT
NOTE 5 INTANGIBLE ASSETS
NOTE 4 PROPERTY, PLANT AND EQUIPMENT
Right of
use assets
Hardware
assets
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipment
ComputersTotal
$M’s$M's$M's$M's$M's$M's$M's$M's
Year ended 31 Mar 2023 (Audited)
Opening net book
amount
4.554.10.11.20.30.60.961.7
Additions3.131.40.10.70.10.20.636.2
Disposals-(7.9)-(0.6)(0.5)--(9.0)
Depreciation charge(1.9)(14.0)(0.1)(0.3)(0.1)(0.2)(0.6)(17.2)
Depreciation recovered-2.4-0.60.4--3.4
Effect of movement in
exchange rates
-2.7-----2.7
Closing net book
amount
5.768.70.11.60.20.60.977.8
Cost9.8106.10.83.10.82.04.9127.5
Accumulated
depreciation
(4.1)(37.4)(0.7)(1.5)(0.6)(1.4)(4.0)(49.7)
Net book amount5.768.70.11.60.20.60.977.8
PAGE 28 PAGE 29PAGE 28 PAGE 29
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Right of
use assets
Hardware
assets
Plant and
equipment
Leasehold
improvements
Motor
vehicles
Office
equipment
ComputersTotal
$M's$M’s$M’s$M’s$M’s$M’s$M’s$M’s
Six months ended 30 Sep 2023 (Unaudited)
Opening net book
amount
5.768.70.11.60.20.60.977.8
Additions-13.8----0.214.0
Disposals-(2.8)--(0.3)--(3.1)
Depreciation charge(0.9)(9.4)-(0.2)-(0.1)(0.4)(11.0)
Depreciation recovered0.11.7--0.3--2.1
Effect of movement in
exchange rates
0.11.5-----1.6
Closing net book
amount
5.073.50.11.40.20.50.781.4
At 30 Sep 2023
Cost9.3119.20.83.10.52.05.1140.0
Accumulated
depreciation
(4.3)(45.7)(0.7)(1.7)(0.3)(1.5)(4.4)(58.6)
Net book amount5.073.50.11.40.20.50.781.4
Included in the Hardware Assets is equipment under construction to be leased or sold of $27.2M (31 March 2023: $27.8M). Due to
the majority of the equipment under construction being ultimately sold under contract and forming part of hardware assets on
the Group‘s fixed asset register it has been accordingly classified under hardware assets.
Items of plant and equipment are stated at cost, less accumulated depreciation and impairment losses. Cost includes the purchase
consideration, and those costs directly attributable to bringing the asset to the location and condition necessary for its intended
use.Where an item of plant and equipment is disposed of, the gain or loss recognised in the statement of comprehensive income is
calculated as the difference between the net sales price and the carrying amount of the asset.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to restore the
underlying asset or the site on which it is located, less any lease incentives received.
Subsequent costs
The Group recognises in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an
item when that cost is incurred if it is probable that the future economic benefits embodied within the item will flow to the Group
and the cost of the item can be measured reliably. All other costs are recognised in the statement of comprehensive income as an
expense in the period they are incurred.
Impairment
Property plant and equipment is tested for impairment when there are indicators of impairment. It is not possible to identify sepa-
rately identifiable cash flows for property, plant and equipment as hardware assets are sold together with various SAAS services
as a package. Property plant and equipment is allocated to the Group‘s CGU‘s as described in note 1 for the purposes of impair-
ment testing.
Depreciation
Depreciation begins when the asset is in the location and condition necessary for it to be capable of operating in the manner
intended by management.
The following rates have been used on a straight line basis:
Leasehold improvements 3 to 9 years
Hardware assets 3 to 6 years
Plant and equipment 3 to 11 years
Computer/Office equipment 1 to 5 years
Motor vehicles 3 to 5 years
Right of use assets 3 to 9 years
The above rates reflect the estimated useful lives of the respected categories. Consideration was given to how long assets can be
deployed and any expected network changes. Leasehold improvements are depreciated over the contracted lease term.
NOTE 5 INTANGIBLE ASSETS
DevelopmentSoftwareGoodwillBrandCustomer
relationships
Patents,
trademarks and
other rights
Total
$M’s$M’s$M’s$M’s$M’s$M’s$M’s
Year ended 31 Mar 2023 (Audited)
Opening net book amount88.33.9108.13.128.0-231.4
Additions25.52.6---0.128.2
Disposals-------
Effect of movement in foreign
exchange rate
0.2---0.2-0.4
Amortisation charge(13.6)(0.7)-(0.7)(2.9)-(17.9)
Closing net book amount100.45.8108.12.425.30.1242.1
Cost154.612.1108.13.328.80.13 07. 0
Accumulated amortisation(54.2)(6.3)-(0.9)(3.5)-(64.9)
Net book amount100.45.8108.12.425.30.1242.1
Six months ended 30 Sep 2023 (Unaudited)
Opening net book amount100.45.8108.12.425.30.1242.1
Additions9.60.2----9.8
Disposals-------
Amortisation charge(7.6)(0.4)-(0.3)(1.0)-(9.3)
Restated closing net book amount102.45.6108.12.124.30.1242.6
Cost164.212.3108.13.328.80.1316.8
Accumulated amortisation(61.8)(6.7)-(1.2)(4.5)-(74.2)
Net book amount102.45.6108.12.124.30.1242.6
The useful lives of the Group’s Intangible Assets are assessed to be finite except for goodwill. Assets with finite lives are amortised
over their useful lives and tested for impairment whenever there are indications that the assets may be impaired.
NOTE 4 PROPERTY, PLANT AND EQUIPMENT
(CONTINUED)NOTE 4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
PAGE 30 PAGE 31PAGE 30 PAGE 31
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Research and Development
Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and understanding, is
recognised in the statement of comprehensive income when incurred.
Development activities involve a plan or design for the production of new or substantially improved products and processes.
Development expenditure is capitalised only if development costs can be measured reliably, the product or process is
technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient
resources to complete development and to use or sell the asset. The expenditure capitalised includes the cost of materials,
direct labour and overhead costs that are directly attributable to preparing the asset for its intended use. Other development
expenditure is recognised in the statement of comprehensive income when incurred. There is judgement involved in relation to
whether a project meets the capitalisation criteria, and whether the expenditure can be directly attributable to the respective
project.
Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.
Other intangible assets
Other intangible assets, including customer relationships, brand, patents and trademarks, that are acquired by the Group and
have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalised when it increases the future economic benefits embodied in the specific asset to
which relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in the
statement of comprehensive income when incurred.
Amortisation
Patents 10 to 20 years
Development Hardware & Platform 7 to 15 years
Development Products 5 to 10 years
Software 5 to 7 years
Customer relationships 15 years
Brand 5 years
Impairment
The acquisition of Coretex on 1 December 2021, meant goodwill was recognised for the excess between the fair value considera-
tion paid and the fair value of the net assets acquired. Net assets acquired included finite life intangibles assets such as customer
relationships, brands, software and development assets. The goodwill and finite life intangibles were then allocated to the cash
generating units of the business with the assistance of external specialists. When goodwill is acquired in a business combination,
under the accounting standards, NZ IAS 36 requires an impairment test to be completed annually (for cash-generating units
in which goodwill has been allocated) irrespective of whether there is any indication of impairment. An impairment test is also
required when there is an indicator of impairment identified each reporting period. Refer to note 1 for the allocation of goodwill,
property plant and equipment and other finite life intangible assets to cash generating units (CGUs). The CGU‘s are considered
the lowest level for which there are separately identifiable cashflows. Corporate costs attributable to the CGUs are allocated to the
respective CGUs as part of impairment testing. Unallocated corporate costs and assets are also tested for impairment using a top
down approach.
Impairment testing of CGU’s
Under the accounting standards one of the external sources of information that may indicate that an impairment exists is when
the carrying amount of the net assets of the entity exceeds the entity’s market capitalisation. At 30 September 2023 this is the
case for the EROAD Group. The share price of EROAD at 30 September 2023 being $0.68 equating to a market capitalisation of
$105.3 million compared to net assets of $279.1 million at the same date.
To complete the impairment testing management assessed the recoverable amount of each of the cash-generating units
(‘CGU’) of which goodwill, property plant and equipment and finite life intangible assets have been allocated by reference to
its value in use (‘VIU’) determined using a discounted cash flows model. The recoverable amounts of the CGU were estimated
based on the following significant assumptions:
Amount the VIU exceeds
the carrying value
Connected unit
CAGR
ARPU CAGRWACC
$M’s
New Zealand220.56.20%0.80%12.75%
North America48.717.60%(2.60)%12.75%
Australia3.525.00%(0.10)%12.75%
The inputs used for the growth in connected units and ARPU in the CGUs reflect past experience and the forecast performance
of the group.
-Terminal growth rate of 2.0% applied to 2029 and thereafter
Sensitivity analysis was undertaken which concluded that New Zealand results are not particularly sensitive to changes in the
underlying assumptions. Australia and North America are sensitive to the achievement of forecast unit growth, ARPU and
changes in the discount rate.
Results of the sensitivity analysis as follows:
Input required for the VIU to equate to the carrying value
Connected unit
CAGR
ARPU CAGRWACC
New ZealandNot sensitiveNot sensitiveNot sensitive
North America14.74%(5.09)%14.81%
Australia24.02%(0.84)%13.44%
The Group concluded that the recoverable amount of each of the CGU were higher than their respective carrying values and
therefore no impairment was considered necessary at 30 September 2023.
NOTE 5 INTANGIBLE ASSETS
(CONTINUED)NOTE 5 INTANGIBLE ASSETS (CONTINUED)
PAGE 32 PAGE 33PAGE 32 PAGE 33
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
DEBT AND EQUITY
This section outlines the Group’s capital structure and the related financing costs. This section includes the
following notes:
NOTE 6 BORROWINGS
NOTE 7 EQUITY
NOTE 6 BORROWINGS
30 Sep 2023
Unaudited
31 Mar 2023
Audited
$M’s$M’s
Current borrowings
Bank overdraft0.91.4
0.91.4
Non-current borrowings
Term Loans30.030.0
Revolving Credit Facility21.739.7
Capitalised borrowings cost(0.1)(0.5)
51.669.2
Terms and debt repayment schedule
30 Sep 2023
Unaudited
30 Sep 2023
Unaudited
31 Mar 2023
Audited
31 Mar 2023
Audited
Nominal
Interest
Year of
Maturity
Face
Value
$M’s
Carrying
amount
$M’s
Face
Value
$M’s
Carrying
amount
$M’s
Tem Loans7. 6 3 %202530.030.030.030.0
Capex facility/bank overdraft7. 6 3 %20250.90.91.41.4
Revolving credit facility7. 6 3 %202521.721.739.739.7
Capitalised borrowing costs-(0.1)-(0.5)
52.652.571.170.6
The above nominal interest rate represents the weighted average rate of the entire facility.
The Group has a syndicated debt facility with the Bank of New Zealand (BNZ) and the Australia and New Zealand Banking Group
(ANZ). At 30 September 2023, EROAD had the following facilities in place:
$30.0M (NZD) Term Loan Facility A – to refinance debt from the prior financial year. The Term Loan has a term of 36 months from
the March 2022 refinance date, with the facility having a maturity date in March 2025. The interest rate is variable with reference to
a base rate (BKBM bid rate) for the selected interest period plus a margin of 2.95%. EROAD may select an interest period of 1,2,3
or 6 months. This is an interest only term facility with full repayment on the termination date.
$55.0M (NZD) Revolving Credit Facility B – for general corporate purposes. The Revolving Credit Facility has a term of 36 months
from the March 2022 refinance date with a periodic roll over feature at the end of each interest period (90 days) that is subject
to continued compliance with the terms of the loan agreement, with the facility having a maturity date in March 2025. Funds
may be drawn in NZ Dollars, AU Dollars, or US Dollars. The interest rate is variable with reference to the base rate (BKBM bid rate
for NZ Dollar drawings, BBSY bid rate for AU Dollar drawings, and US Federal Open Market Committee short-term interest rate
target for US Dollar drawings) for the selected interest period plus a margin of 1.5%. EROAD may select an interest period of 1,2,3
or 6 months. In addition, a Commitment Fee of 1.45% per annum is payable on the committed balance of the facility quarterly in
arrears. The full outstanding balance is payable on the termination date.
$5.0M Capex /overdraft facility– for general working capital purposes. In the prior year this has been replaced by an overdraft
facility. This is an on demand facility with the interest rate to be agreed between the lender and borrower at the time of borrowing
plus a margin of 1.5%. In addition, a Commitment Fee of 1.45% per annum is payable on the committed balance of the facility
quarterly in arrears. The full outstanding balance is payable on the termination date.
EROAD’s operating covenants to support the above facilities include Interest Cover Ratio, Leverage Ratio and Obligor Assets to
Group Assets. EROAD was compliant with all covenants during the period and at 30 September 2023.
The security package for the Multi-Option Credit Facility Agreement includes an all obligations cross-guarantee granted by
EROAD Financial Services Limited, EROAD Australia Pty Limited, EROAD Inc, Coretex Limited, Imarda Pty Limited, Coretex
Australia Pty Limited, Coretex NZ Limited, and Coretex USA Inc in favour of the BNZ (in its capacity of Security Trustee for the
banking syndicate). in respect of the obligations of EROAD Limited, and a General Security Agreements granted by EROAD
Limited, EROAD Financial Services Limited, EROAD Inc, EROAD Australia Pty Limited, Coretex Limited, Imarda Pty Limited,
Coretex Australia Pty Limited, Coretex NZ Limited, and Coretex USA Inc in favour of the BNZ (in its capacity of Security Trustee for
the banking syndicate).
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as
part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
NOTE 6 BORROWINGS
(CONTINUED)
PAGE 34 PAGE 35PAGE 34 PAGE 35
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
Amended syndicated debt facility
On 29 September 2023, the Group amended its syndicated debt facility with the Bank of New Zealand (BNZ) and the Australia
and New Zealand Banking Group (ANZ) and added Kiwibank Limited (Kiwibank). The effective date of the amendment is 4
October 2023. EROAD put the following facilities in place:
$25.0M (NZD) Term Loan Facility A – to refinance debt from the prior facility. The Term Loan has a term of 36 months from 4
October 2023 refinance effective date, with the facility having a maturity date in October 2026. The interest rate is variable with
reference to a base rate (BKBM bid rate) for the selected interest period plus a margin of 3.75%. EROAD may select an interest
period of 1,2,3 or 6 months. On 31 December 2024, total facility commitments will reduce $1.25m on a quarterly basis until the
maturity of the facility. The full outstanding balance is payable on the termination date.
$50.0M (NZD) Revolving Credit Facility B – to refinanace debt from the prior facility and for general corporate purposes. The
Revolving Credit Facility has a term of 36 months from 4 October 2023 effective refinance date with a periodic roll over feature
at the end of each interest period (90 days) that is subject to continued compliance with the terms of the loan agreement, with
the facility having a maturity date in October 2026. Funds may be drawn in NZ Dollars, AU Dollars, or US Dollars. The interest
rate is variable with reference to the base rate (BKBM bid rate for NZ Dollar drawings, BBSY bid rate for AU Dollar drawings,
and US Federal Open Market Committee short-term interest rate target for US Dollar drawings) for the selected interest period
plus a margin of 2.25% where the company’s net leverage ratio is below 1.0x and 2.45% where the company’s net leverage ratio
is above 1.0x . EROAD may select an interest period of 1,2,3 or 6 months. In addition, a Commitment Fee of 2.25% per annum is
payable where the company’s net leverage ratio is below 1.0x, and 2.45% per annum is payable where the company’s net leverage
ratio is above 1.0x, is payable on the committed balance of the facility quarterly in arrears. On 31 December 2024, total facility
commitments will reduce $1.25m on a quarterly basis until the maturity of the facility. The full outstanding balance is payable on
the termination date.
$5.0M Multi-option working capital facility – for capital expenditure and general working capital purposes. This is an on demand
facility with the interest rate to be agreed between the lender and borrower at the time of borrowing plus a margin of 2.25%. In
addition, a Commitment Fee of 2.25% per annum is payable on the committed balance of the facility quarterly in arrears. The full
outstanding balance is payable on the termination date.
EROAD’s operating covenants to support the above facilities include Interest Cover Ratio, Leverage Ratio and Obligor Assets to
Group Assets. EROAD was compliant with covenants during the period and at 30 September 2023. Covenant compliance under
the new facility will be effective from December 2023 quarter end.
The security package for the Multi-Option Credit Facility Agreement includes an all obligations cross-guarantee granted by
EROAD Financial Services Limited, EROAD Australia Pty Limited, EROAD Inc, Coretex Limited, Imarda Pty Limited, Coretex
Australia Pty Limited, Coretex NZ Limited, and Coretex USA Inc in favour of the BNZ (in its capacity of Security Trustee for the
banking syndicate). in respect of the obligations of EROAD Limited, and a General Security Agreements granted by EROAD
Limited, EROAD Financial Services Limited, EROAD Inc, EROAD Australia Pty Limited, Coretex Limited, Imarda Pty Limited,
Coretex Australia Pty Limited, Coretex NZ Limited, and Coretex USA Inc in favour of the BNZ (in its capacity of Security Trustee for
the banking syndicate).
NOTE 7 EQUITY
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.
Number of
ordinary shares
Issue price
$
Issued Capital
$
31 Mar 2023 (Audited)112,628,412305.7
Shares issued to employees511,1340.790.4
Shares issued in September 2023 equity placement41,742,0720.7029.2
Costs of raising capital--(2.5)
332.8
Funds received in advance for shares issued in October 20235.1
30 Sep 2023 (Unaudited)154,881,618.0337.9
At 30 September 2023 there was 154,881,618 authorised and issued ordinary shares (31 March 2023: 112,628,412). 386,166
(31 March 2023: 386,166) shares are held in trust for employees in relation to the long-term incentive plan and are accounted for as
treasury stock.
29,749,556 Ordinary shares were issued at $0.70 NZD per share on 2 October 2023. In total $20.8M had been raised, of which
$5.1M was received in advance on 29 September 2023.
Share capital premium/discount
This account is for the difference between the issued share price and the trading share price (or fair value share price) on date
of issue and includes contigent consideration portion classified as equity related to the acquisition of Coretex.
30 Sep 2023
Unaudited
31 Mar 2023
Audited
$M’s$M’s
Opening balance 19.96.5
Contingent Shares issued-9.7
Contingent shares forfeited-3.7
19.919.9
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.
• Hedging reserve - the hedging reserve is used to record gains or losses on instruments used as cash flow hedges. The
amounts are recognised in profit and loss when the hedged transaction affects profit and loss.
• Retained earnings - includes all current and prior period retained profits and losses and share-based employee remuneration.
NOTE 6 BORROWINGS
(CONTINUED)
PAGE 36 PAGE 37PAGE 36 PAGE 37
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
OTHER
This section contains additional notes and disclosures that aid in understanding the Group‘s position and performance but do not
form part of the primary sections. This section includes the following notes:
NOTE 8 INCOME TAX EXPENSE
NOTE 9 RELATED PARTY TRANSACTIONS
NOTE 10 CAPITAL COMMITMENTS
NOTE 11 CONTINGENT LIABILITIES
NOTE 12 NET TANGIBLE ASSETS PER SHARE
NOTE 13 EVENTS SUBSEQUENT TO BALANCE DATE
NOTE 8 INCOME TAX EXPENSE
30 Sep 2023
Unaudited
30 Sep 2022
Unaudited
$M’s$M’s
(a) Reconciliation of effective tax rate
Loss before income tax(4.3)(2.7)
Income tax using the Company's domestic tax rate of 28% (1.2)(0.8)
Non-deductible expense/(non-assessable income)(0.3)(2.0)
Adjustment related to prior period(2.1)0.5
Utilisation of tax losses previously unrecognised and tax losses not recognised0.6(0.6)
Effect of different tax rates of subsidiaries operating overseas(0.1)(0.4)
Income tax expense/(benefit)(3.1)(3.3)
(b) Current tax expense
Current year0.1-
0.1-
(b) Deferred tax expense
Current year(1.1)(3.8)
Adjustments in respect of prior periods(2.1)0.5
(3.2)(3.3)
Income tax expense(3.1)(3.3)
At 30 September 2023 there were no imputation credits available to shareholders (31 March 2023: Nil)
Income tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the
extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the period, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous periods. Current tax
payable also includes any tax liability arising from the declaration of dividends.
NOTE 8 INCOME TAX EXPENSE
(CONTINUED)
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be
applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the
reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to
settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it
is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
NOTE 9 RELATED PARTY TRANSACTIONS
Related party transactions are consistent in nature with those reported in 31 March 2023.
NOTE 10 CAPITAL COMMITMENTS
(a) Capital commitments
As at 30 September 2023 the Group had confirmed purchase orders open with its third party manufacturer of hardware units
amounting to $11.2M (31 March 2023: $18.4M).
NOTE 11 CONTINGENT LIABILITIES
As at 30 September 2023 the Company had no contingent liabilities or assets (31 March 2023:$Nil).
NOTE 12 NET TANGIBLE ASSETS PER SHARE
30 Sep 2023
Unaudited
30 Sep 2022
Unaudited
31 Mar 2023
Audited
$M’s$M’s$M’s
Net assets (equity)284.9253.3248.8
Less Intangibles(242.6)(236.7)(242.1)
Total net tangible assets42.316.66.7
Net tangible assets per share ($)0.270.150.06
The non-GAAP measure above is disclosed for consistency with the information disclosed in EROAD’s results announced under
the NZX listing rules.
NOTE 13 EVENTS SUBSEQUENT TO BALANCE DATE
On 29 September 2023, the Group amended its syndicated debt facility with the Bank of New Zealand (BNZ) and the Australia
and New Zealand Banking Group (ANZ) and added Kiwibank Limited (Kiwibank). The effective date of the amendment is 4
October 2023. Please refer to note 6 for additional details.
29,749,556 Ordinary shares were issued at $0.70 NZD per share on 2 October 2023. In total $20.8M has been raised, of which
$5.1M was received in advance on 29 September 2023. Please refer to note 7 for additional details.
There were no further events occurring subsequent to balance date which require adjustment to or disclosure in the
financial statements.
PAGE 38 PAGE 39
FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDY
PAGE 38 PAGE 39
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private
English company limited by guarantee. All rights reserved.
Independent Review Report
To the shareholders of EROAD Limited
Report on the interim condensed consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
condensed consolidated financial statements on
pages 11 to 37 do not:
i. present fairly in all material respects the
Group’s financial position as at 30
September 2023 and its financial
performance and cash flows for the six
month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim condensed consolidated financial
statements which comprise:
— the condensed consolidated statement of
financial position as at 30 September 2023;
— the condensed consolidated statements of
comprehensive income, changes in equity and
cash flows for the six month period then ended;
and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed
by the Independent Auditor of the Entity (“NZ SRE 2410 (Revised)”). Our responsibilities are further described in
the Auditor’s Responsibilities for the review of the financial statements section of our report.
We are independent of, in accordance with the relevant ethical requirements in New Zealand relating to the audit
of the annual financial statements, and we have fulfilled our other ethical responsibilities in accordance with
these ethical requirements.
Our firm has also provided other services to the group in relation to taxation compliance and transfer pricing
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.
Responsibilities of the Directors for the interim
condensed consolidated financial statements
The Directors, on behalf of the group, are responsible for:
— the preparation and fair presentation of the interim condensed consolidated financial statements in
accordance with NZ IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of interim 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
interim condensed consolidated financial statements
Our responsibility is to express a conclusion on the interim condensed consolidated financial statements based
on our review. We conducted our review in accordance with NZ SRE 2410 (Revised) . NZ SRE 2410 (Revised)
requires us to conclude whether anything has come to our attention that causes us to believe that the interim
condensed consolidated financial statements are not prepared, in all material respects, in accordance with NZ
IAS 34 Interim Financial Reporting.
A review of interim condensed consolidated financial statements in accordance with NZ SRE 2410 (Revised)
Review of Financial Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410 (Revised)”)
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.
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) and consequently does not enable us to
obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these
interim condensed consolidated financial statements.
KPMG
Auckland
29 November 2023
PAGE 40
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
PAGE 41
ANNUALISED MONTHLY RECURRING REVENUE (AMRR)
A non-GAAP measure representing monthly Recurring
Revenue for the last month of the period, multiplied by 12. It
provides a 12 month forward view of revenue, assuming unit
numbers, pricing and foreign exchange remain unchanged
during the year.
ASSET RETENTION RATE
The number of Total Contracted Units at the beginning of
the 12 month period and retained as Total Contracted Units
at the end of the 12 month period, as a percentage of Total
Contracted Units at the beginning of the 12 month period.
CHURN
The inverse of the asset retention rate.
COREHUB
EROAD’s next generation telematics hardware that collects
rich data, meets electronic logging device certification.
COSTS TO ACQUIRE CUSTOMERS (CAC)
A non-GAAP measure of costs to acquire customers. Total
CAC represents all sales & marketing related costs. CAC
capitalised includes incremental sales commissions for
new sales, upgrades and renewals which are capitalised
and amortised over the life of the contract. All other CAC
related costs are expensed when incurred and included
within CAC expensed.
COSTS TO SERVICE & SUPPORT (CTS)
A non-GAAP measure of costs to support and service
customers. Total CTS represents all customer success
and product support costs. These costs are included in
Administrative and other Operating Expenses.
CY (CALENDAR YEAR)
12 months ended 31 December.
EBITDA
A non-GAAP measure representing Earnings before
Interest, Taxation, Depreciation and Amortisation (EBITDA).
Refer Consolidated Statement of Comprehensive Income in
Financial Statements.
EBITDA MARGIN
A non-GAAP measure representing EBITDA divided
by Revenue.
EHUBO, EHUBO2 and EHUBO 2.2
EROAD’s first and second generation telematics hardware.
EHUBO is a trade mark registered in New Zealand, Australia
and the United States.
ELECTRONIC LOGGIING DEVICE (ELD)
An electronic solution that synchronises with a vehicle
engine to automatically record driving time and hours of
service records
ENTERPRISE
A customer where the $AMRR is more than $100k in NZD
for the Financial year reported
FREE CASH FLOW
A non-GAAP measure representing operating cash flow and
investing cash flow reported in the Statement of Cash Flows.
FREE CASH FLOW TO THE FIRM
A non-GAAP measure representing operating cash flow
and investing cash flow net of interest paid and received.
For the purposes of this presentation, payments for the
acquisition of Coretex have been excluded.
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. Refer Revenue Note 2 of the
H1 FY24 Financial Statements.
FY (FINANCIAL YEAR)
Financial year ended 31 March.
H1 (HALF ONE)
For the six months ended 30 September.
H2 (HALF TWO)
For the six months ended 31 March.
LEASE DURATION
Future contracted income as a proportion of
reported revenue.
MONTHLY SAAS AVERAGE REVENUE PER UNIT (ARPU)
A non-GAAP measure that is calculated by dividing the
total SaaS revenue for the year reported in Note 2 of the
H1 FY24 Financial Statements, by the TCU balance at the
end of each month during the year.
NORMALISED EBITDA
Excludes one-off 4G hardware upgrade program costs
($1.5m). H1 FY23 normalisations include acquisition
accounting revenue ($7.0m), and integration costs ($2.6m).
NORMALISED EBITDA MARGIN
Excludes one-off items, consistent with the definition
provided for Normalised EBITDA.
NORMALISED REVENUE
Excludes the one-off acquisition accounting revenue in
H1 FY24 ($7.0m).
ROAD USER CHARGES (RUC)
In New Zealand, RUC is applicable to Heavy Vehicles and all
vehicles powered by a fuel not taxed at source. The charges
are paid into a fund called the National Land Transport
Fund, which is controlled by NZTA, and go towards the cost
of repairing the roads.
SAAS
Software as a Service, a method of software delivery in
which software is accessed online via a subscription rather
than bought and installed on individual computers.
SAAS REVENUE
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.
TOTAL CONTRACTED UNITS
Represents EROAD and Coretex branded units subject to a
customer contract both on Depot and pending instalment
and Coretex branded units currently billed.
UNIT
A communication device fitted in-cab or on a trailer. Where
there is more than one unit fitted in-cab or on a trailer, it is
counted as one unit (excluding Philips Connect).
360
A web-based platform that allows customers to access data
collected by CoreHub and the associated reports.
Glossary
EROAD 2024 INTERIM REPORT LETTER FROM THE CHAIR LETTER FROM THE CEO CASE STUDYFINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS INDEPENDENT REVIEW REPORT GLOSSARY DIRECTORY
PAGE 43PAGE 42
Directory
Registered Office
in New Zealand
Registered Office
in North America
Registered Office
in Australia
Level 3, 260 Oteha Valley Road,
Albany, Auckland, New Zealand
15110 Avenue of Science,
Suite 100, San Diego,
United States of America 92128
Level 36, Tower 2 Collins Square
727 Collins Street, Docklands,
VIC 3008, Australia
Investor Relations
and Sustainability
Enquires
Managing your
Shareholding Online
Share Register -
New Zealand
Address: EROAD Limited,
PO Box 305 394 Triton Plaza,
North Shore,
Auckland
Email: investors@eroad.com
Telephone: 0800 437 623
Changes in address and investment
portfolios can be viewed and updated
online:
www.computershare.co.nz/
investorcentre.
You will need your CSN and FIN
numbers to access this service.
Computershare Investments Services
Limited
Private Bag 92119, Victoria Street, West
Auckland 1142, New Zealand
Email: enquiry@computershare.co.nz
Telephone: +64 9 488 8777
Website: www.computershare.co.nz/
investorcentre
Legal Advisors Bankers
Chapman Tripp
Level 34 Commercial Bay
Auckland 1010
PO Box 2206, Auckland 1140
Telephone: +64 9 357 9000
ANZ
ASB
Bank of New Zealand
HSBC
Wells Fargo
---
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
Results for announcement to the market
Name of issuer EROAD Limited
Reporting Period 6 months to 30 September 2023
Previous Reporting Period 6 months to 30 September 2022
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$88,859 13%
Total Revenue $88,866 4%
Net profit/(loss) from
continuing operations
$249 108%
Total net profit/(loss) ($1,216) (318%)
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.26 $0.16
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For commentary on the result, please refer investor presentation
and interim report for the six-months ended 30 September 2023.
Authority for this announcement
Name of person authorised
to make this announcement
Margaret Warrington
Contact person for this
announcement
Margaret Warrington
Contact phone number (09) 927 4700
Contact email address
margaret.warrington@eroad.com
Date of release through MAP 29 November 2023
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.