Quarterly Operational Update

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Market Release

Quarterly Operational Update
24 January 2022

Transportation technology services company EROAD (ASX/NZX: ERD), with its purpose of safer
and more sustainable roads, today released its quarterly update for the three months ended
31 December 2021. Key points include:

• Total contracted unit growth of 70,736 units (+53.3%), reflecting the Coretex
acquisition, as well as strong organic growth in New Zealand and Australia;
• Coretex acquisition completed successfully, and integration is on track with initial key
focus on building sales momentum in North America market;
• Significant Enterprise opportunities in North America, with pilots underway across
several customer verticals representing over 23,000 units; and
• Increased growth in New Zealand due to rollout of previously won enterprise fleets.

EROAD’s Key Operating Metrics as at 31 December 2021 are as follows:

Total at 30
September
2021
EROAD
added
in
quarter
Coretex
acquired
at 30
November
2021
Coretex
added in
December
2021
Total at 31
December
2021
Total
added
this
quarter

Contracted
units*
132,703 3,837 66,157 742 203,439 70,736
New Zealand 93,639 3,557 7,637 (29) 104,804 11,165
North America 33,992 (574) 50,628 671 84,717 50,725
Australia 5,072 854 7,892 100 13,918 8,846

Clarity Dashcam 4,141

5,247 1,106
New Zealand 780

976 196
North America 3,299

4,149 850
Australia 62

122 60

Phillips Connect 666 1,019 353
*Total Contracted units is a non-GAAP measure used by EROAD which represents the total units subject to a customer contract and includes
both units connected to EROAD’s platforms and units pending instalment. A unit represents a hardware solution installed in a vehicle or
trailer providing telematics solutions. Following the launch of Clarity Solo and the completion of the Coretex acquisition, the definition of a
unit now includes Clarity Solo units and Coretex units.

EROAD grew by 70,736 units in the three months ended 31 December, ending the quarter at
203,439 units reflecting the acquisition of Coretex and strong organic growth in New
Zealand and Australia. The acquisition of Coretex was successfully completed on the 30

Page 2 eroad.co.nz
November 2021. Integration is on track with initial focus on building sales in the North
America market.

In New Zealand, contracted growth was 11,165 units for the quarter. This reflects the 7,637
units acquired at 30 November, the continued roll out of several Enterprise fleets won in Q2
FY22, a new bus fleet won and largely installed in the quarter, as well as ongoing small and
medium size customer run-rate growth.

The acquisition of Coretex has significantly improved EROAD’s North America market position
and growth potential. Over the quarter, North America units increased by 50,725 reflecting
the 50,628 Coretex units brought on at 30 November 2021 and gross organic sales of 2,091
(including an Enterprise customer win of approximately 500 units), offset by churn from
customers using EROAD branded products. The customer churn included the loss of a
c.650 unit Enterprise customer, which ended its agreement with EROAD after both parties
were unable to reach mutually agreeable renewal terms, as well as ongoing impacts of driver
shortages, broader macro-economic concerns and continued fleet reduction. Coretex
delivered a further 671 net units in December, and also has signed contracts across the
construction, mixed fleet and refrigeration segments for approximately 2,600 additional units
which commence roll out in Q4 FY22. The North American business currently has five
Enterprise customer pipeline opportunities at the pilot stage relating to potential
opportunities totalling over 23,000 units.

Following the launch of EROAD Clarity Solo Dashcam at the American Trucking Association
MC&E show in Nashville Tennessee in late October 2021, EROAD has sold 116 units across all
markets, with the majority sold in North America. This product, (which significantly increases
the addressable market for dashcams), has no in-cab requirement for a pre-installed Ehubo
and, so as a standalone device, is included in the contracted unit numbers.

Australia grew by 8,846 units over the quarter reflecting both the Coretex acquisition (7,892
units added at 30 November 2021) and the roll out of Enterprise customer Ventia. EROAD
has now dispatched approximately 97% of the Ventia Australian units, and roll-out is expected
to complete this quarter. Operating conditions have become more challenging since
December with the Omicron COVID-19 wave impacting EROAD staff and customers. There
are three ongoing Enterprise customer pipeline opportunities at the pilot stage due to
conclude in Q4 FY22 relating to opportunities for approximately 1,400 units and c. 13,000
microtags.

Ends

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

For Investor enquires please contact:
Anna Bonney
Investor Relations
+64 21844155
anna@merlinconsulting.co.nz
For Media enquiries please contact:
Courtney Ayre
ANZ Marketing Director
+61438763521
courtney.ayre@eroad.com