EROAD strengthening focus on ANZ opportunities

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EROAD strengthening focus on ANZ opportunities
AUCKLAND, 17 October 2025: EROAD today announced actions to enhance its focus on
capturing the significant emerging opportunity in electronic road user charging (eRUC),
including:

• a strategic change in focus towards ANZ opportunities;
• changes to Governance and Management; and
• an update to FY26 Guidance and timing for EROAD 2026 Investor Day.

Strategic change in focus towards ANZ opportunities
EROAD was founded on road user charging and is the market leader in New Zealand’s
eRUC system. With governments in both New Zealand and Australia moving toward usage-
based and time-of-use charging, EROAD is uniquely positioned to lead.
In the near-term, EROAD plans to prioritise new growth investment to ANZ to move quickly
and capture this opportunity. This focus is further supported by increasing enterprise
momentum in ANZ.
North America remains an important market for EROAD, however due to a variety of
market conditions elongating enterprise sales cycles, growth activity in the region has not
delivered within expected timeframes. North American resources will remain focused on
delivering for our customers and partners, deepening relationships, and exploring further
growth opportunities in cold-chain.
Mark Heine said, “I am incredibly excited by the opportunities ahead at EROAD, as we
focus on what matters most to our customers and our growth. Building on EROAD’s legacy
and credibility in eRUC is particularly energising. As the world continues to trend towards
more fuel-efficient vehicles, the need to fund global infrastructure sustainably and more
equitably creates significant opportunity for EROAD. We see the 4.6m vehicles in New
Zealand as the perfect place to start.”

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Changes to Governance and Management
To support the opportunity, and streamline strategic execution, the Board has made
changes to governance and management. John Scott has been appointed as Executive
Chair of the Board of Directors, effective immediately
1
. The Board has determined that
after a period of no longer than nine months, John Scott will revert to non-executive Chair
of the Board of Directors.
John Scott, based in Auckland, New Zealand, was appointed to the Board in February 2025
as an independent director. This followed the Board’s search for a director with deep
technology experience, to capitalise on the opportunities in the rapidly evolving telematics
sector globally.
John has held senior executive and CEO roles across several New Zealand technology
companies, most recently as CEO of Invenco. He has a strong background in product
innovation, scaling global businesses and driving strategic change. As Executive Chair,
John brings a wide network of technology peers, practical product insight and commercial
discipline. This appointment further equips EROAD’s capability to execute at this key
strategic juncture. John also serves as Chair of two other technology companies.
John Scott said, “Since joining the Board I’ve seen first-hand the scope of opportunities that
EROAD is focused on. EROAD is a company solving real problems for some of the largest
and most complex fleets. The potential to take that further is enormous. Stepping into the
role of Executive Chair means that I can support management at this crucial time, as we
move at pace for this exciting opportunity ahead.”
Former Chair Susan Paterson, who served as Chair since 2023, steps back into her role as
Director, and will Chair the People and Culture Committee.
“Susan oversaw the execution of a disciplined strategy to turn around EROAD and return it
to profitability. The strong balance sheet and positive free cash flow that has been built
leaves EROAD in a solid position to execute on new opportunities. The Board and I thank
Susan for her role as Chair and look forward to her continued service on the Board,” noted
John Scott.
Together with John’s appointment as Executive Chair, Mark Heine will serve as Chief
Executive Officer. David Kenneson steps down from his role as Co-CEO effective 31
October 2025, to spend time with family and pursue the next chapter in his career. David
expressed his gratitude to the EROAD team, Board, and Co-CEO, Mark Heine, for their
partnership and shared commitment to strengthening the business. "It has been a privilege
to serve alongside such a talented and dedicated team," said David. "Together, we've

1
Appendix A provides further information on remuneration associated with the Executive Chair
position

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achieved significant milestones, positioning EROAD for continued growth and success. I
will always be proud of what we accomplished and wish the company every success in the
future."
The Board thanks David for his contributions during his tenure and wishes him well in his
future endeavours.

Update to FY26 Guidance
The North American telematics market remains challenging due to a combination of
competitive dynamics and economic conditions. EROAD is committed to maintaining and
growing our existing customer relationships and continuing to win new customers where
returns on investment are appropriate.
Prioritisation of new growth investment to the significant eRUC opportunity in ANZ,
combined with a large legacy North American transport customer not renewing their
contract in February 2026, is expected to lead to a slower growth rate in our business this
year.
EROAD now expects:
FY2026 Guidance Current Previous
Revenue $197m - $203m > $205m
Annualised Recurring Revenue
(ARR)
$175m - $183m > $188m
Free Cash Flow Margin
2
5% - 8% 8% - 10%

As a consequence of the challenging US market that led to a change in guidance and
consistent with the strategic change in focus, EROAD expects to record an impairment to
carrying value of intangible assets relating to the North American region of up to $150m.

Investor Day Update
EROAD updates the market that its previously announced Investor Day will be held in
March 2026 to provide insights into the emerging eRUC opportunity and share further
details of its strategic plan to capture this opportunity.

2
Normalised for the 4G hardware upgrade program

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EROAD is well positioned to support the New Zealand Government’s recently announced
plans to transition all 4.6 million vehicles to eRUC, a distance and weight-based system to
replace fuel excise duties. EROAD currently collects approximately $1 billion in RUC from
commercial vehicle operators on the New Zealand Government’s behalf each year. This
initiative builds on EROAD’s core capabilities and provides governments with alternatives
to fund maintenance and development of transport infrastructure.

ENDS
Authorised for release to the NZX and ASX by EROAD’s Board of Directors.

For Investor enquiries please contact:
Jason Kepecs
jason.kepecs@eroad.com
NZ contact: +64 21 990 474
AU contact: +61 47 7711 136
For Media enquiries please contact:
Richard Llewellyn
richard@shanahan.nz
+64 27 523 2362

About EROAD

EROAD (NZX/ASX: ERD) is a hardware-enabled SaaS company delivering safety,
compliance, sustainability and efficiency solutions for complex vehicles fleets.

Its connected platform is used by commercial and government operators across New
Zealand, Australia and North America to manage vehicles, assets and drivers with greater
visibility and control. EROAD supports demanding, highly regulated fleet operations,
including those moving food, concrete and aggregates, enabling them to operate smarter,
safer and more sustainably.

EROAD’s platform is built on a foundation of regulatory expertise, having delivered the
world’s first GPS-based road user charging system in New Zealand, where it remains the
market leader today.
www.eroad.co.nz

TEL +64 9 927 4700 PO Box 305 394
FAX +64 9 927 4701 Triton Plaza, North Shore 0757 Page 5
FREE 0800 4 EROAD Auckland, New Zealand eroad.co.nz
Appendix A
As Chair, John Scott will receive an annual fee of $106,250 for his role as a Director of the
Company and an additional $106,250 for his role as Chair of the Board.
For his work in a temporary executive capacity, in addition to his role as Chair, John Scott
has also entered into a separate consultancy agreement with EROAD for a weekly rate of
$7,913 (excluding GST) for an engagement period of up to 9 months, in-line with prevailing
market rates for similar advisory work.
It is intended that in the near term, the Directors of EROAD will apply 50% of the fees to be
paid to them in their capacity as Directors of EROAD, and any additional consultancy fees
to be paid to Directors, to acquire shares in EROAD on market under a fixed share trading
plan, reinforcing their belief in the company and the opportunities ahead.
Details of the remuneration of the CEO, Executive Chair and other directors will be
included in the next remuneration report to be released alongside EROAD’s FY26 Annual
Report.