Erdene Resource Development Corporation.

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EROAD ANNUAL REPORT 2021

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54%

REDUCTION IN SPEEDING FREQUENCY  
BY EROAD CUSTOMERS SINCE 2015

640 

CUSTOMERS  
RENEWED THEIR EROAD PLAN 
(13,821 CONTRACTED UNITS)

>99.99% 

INDUSTRY LEADING  
SERVICE UPTIME

REVENUE

13%

reflecting growth  
in all regions

CONTRACTED UNIT GROWTH 

8%

despite challenging  
macro-economic conditions

FY21: $91.6m • FY20: $81.2m 

FY21: 126,203 • FY20: 116,488

EBITDA

13%

reflecting growth in units and 
ARPU and increased spend on 
accelerating growth strategies

FY21: $30.7m • FY20: $27.1m

MONTHLY SAAS AVERAGE REVENUE 
PER UNIT (ARPU) STABLE AT

$

58.30

reflecting additional SaaS products 
sold offset by FX movements

FY20: $58.38

ANNUALISED MONTHLY 
RECURRING REVENUE (AMRR) 

ASSET RETENTION RATE  
STABLE AT 

$

88.4m

reflecting additional  
contracted unit sales

94.9%

reflecting quality of service 
and product offering  

FY20: $84.0m

FY20: 95.2%

1 $51m raised (net of $2m transaction costs) via capital raise

1,054

‘EROAD CLARITY’ DASHCAMS 
SOLD IN MARCH 2021

83% 

EROADER’S RECOMMEND EROAD  
AS A GREAT PLACE TO WORK

$53m1

CAPITAL RAISE  
IN CONJUNCTION WITH ASX LISTING  
TO ACCELERATE GROWTH STRATEGIES

EROAD ANNUAL REPORT 2021EROAD ANNUAL REPORT 2021

EROAD ANNUAL REPORT 2021

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CONTENTS
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Contents

5-8

ABOUT EROAD

9-17

LEYTTER FROM  
CHAIR AND CEO

19-22

OUR STAKEHOLDERS

23-26

SAFER ROADS

27-40

SUSTAINABLE ROADS

41-46

CUSTOMER

47-48

DATA

49-50

GLOBAL TRENDS

51-62

OUR MARKETS

63-66

THE NUMBERS

67-78

OUR TEAM

79-113

FINANCIAL STATEMENTS

114-117

AUDITORS REPORT

119-138

139-144

CORPORATE GOVERNANCE 

REGULATORY DISCLOSURES

145-155

GRI INDEX

157-158

GLOSSARY

NON-GAAP MEASURES

EROAD has used non-GAAP measures when discussing 
financial performance in this report. 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 Adjusted 
EBITDA, Annualised Monthly Recurring Revenue (AMRR), 
Costs to Acquire Customers (CAC), Costs to Service & 
Support (CTS), EBITDA, EBITDA margin, Free Cash Flow and 
Future Contracted Income (FCI). The definitions of these 

can be found on pages 157-158 of this Annual Report. All 
numbers relate to the twelve months ended 31 March 2021 
(FY21) and comparisons relate to the twelve months ended 
31 March 2020 (FY20), unless stated otherwise. All dollar 
amounts are in NZD.

This report covers the financial year ended 31 March 2021 
and is dated 28 May 2021. The report has been approved 
by the Board and is signed on behalf of EROAD Limited by 
Graham Stuart, Chairman and Steven Newman, Managing 
Director and Chief Executive Officer

Graham Stuart 
Chairman  

Steven Newman 
Chief Executive Officer

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EROAD ANNUAL REPORT 2021

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ABOUT EROAD

EROAD is a hardware enabled 
SaaS company that pioneered 
Regulatory Telematics

Purpose is  
SAFER AND MORE 
SUSTAINABLE ROADS 

Provides  
REGULATORY 
COMPLIANCE 
AND TELEMATICS 
SOFTWARE  
to heavy and light vehicle 
fleets in New Zealand, 
North America and 
Australia

Develops  
TECHNOLOGY 
SOLUTIONS  
to manage vehicle fleets, 
support regulatory 
compliance, improve 
driver safety and reduce 
costs of operating a fleet 
of vehicles and assets

CLARITY DASHCAM

EHUBO2

IN-VEHICLE HARDWARE

SAAS PRODUCTS

126,203

CONTRACTED UNITS

94.9% 

ASSET RETENTION RATE

$58.30 

MONTHLY SAAS ARPU

‘MyEROAD’

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ABOUT EROAD

Growth through providing  
our customers additional  
products and services 

Increases  
addressable market 

Improved  
Monthly SaaS Average 
Revenue per Unit 

Retention  
Tool 

EROAD CLARITY 
DASHCAM 

EROAD GO

EROAD DAY  
LOGBOOK 

MyEROAD FLEET 
MAINTENANCE 

EROAD INSPECT  

EROAD WHERE   

Dual facing dashcam. 
Integration of dashcam  
while Ehubo data and  
other key driver and  
vehicle statistics supports 
advanced driver coaching 
and accident exoneration in 
MyEROAD Replay

A workflow application  
that connects with  
the transport  
management system 

Simplifies fatigue 
management by enabling 
drivers to capture work  
and rest hours via a smart 
phone or tablet

Simplifies vehicle 
maintenance with  
automated service schedule 
based on time lapsed, 
distance travelled or engine 
hours, plus a full service 
history archive 

Makes vehicle inspections 
easy, capturing defects 
with your mobile 
device, and providing 
transparent and traceable 
inspection information

Affordable  
Asset Tracking 

1,054

SOLD IN MARCH  
(86 WHICH WERE  
NEW EROAD CUSTOMERS) 

OPENS UP 
ADDRESSABLE  
MARKET
LONG SALES LEAD-IN TIMES 

6,407

DRIVERS SUBSCRIPTIONS 
(515 WHICH ARE  
STANDALONE) 

5,647

10,490

IN-CAB SERVICE ALERTS

DRIVERS SUBSCRIPTIONS

5,818

PRE-TRIP COMMS 

OVER 306

CUSTOMERS 

5,060

SOLD TO  

OVER 164 

CUSTOMERS  

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LETTER FROM THE CHAIR AND CEO
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Letter from  
the Chair and CEO 

We are pleased to report our financial 
results for the year ended 31 March 2021 
(FY21). In a year that presented challenging 
macro-economic conditions we continued to 
grow across all of our markets. In addition, 
we accelerated our growth strategies to  
take better advantage of opportunities that 
have emerged from the challenges of the 
last twelve months. EROAD is now stronger  
than ever before, better positioned to 
capture the increasing growth opportunities 
in telematics.

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LETTER FROM THE CHAIR AND CEO
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Continuing to grow  
in challenging  
macro-economic 
conditions   

or beginning soon. There are also further pilots for Clarity 
Dashcam with existing and new customers.

In Australia, despite restrictive lockdown in the first half of 
the year, we added 754 contracted units in the year with 
the majority of the units being added in H2. This growth 
predominately came from new small-to-medium size 
customers in Freight & Road Transport, Construction & Civil 
Engineering, Services & Trades. During the year, we were 
focused on securing some large enterprise opportunities 
within our Australian pipeline. We announced at the 
beginning of April that we had signed our largest Australian 
enterprise customer, Ventia. This contract alone, almost 
doubles the size of our Australian presence and we are still 
working on a short to medium term enterprise sales pipeline 
of some 15-20,000 connected vehicles.

In the year ended 31 March 2021, a total of $21.3m (FY20: 
$15.6m) was invested in research and development, 
representing some 23% of revenue. As we have previously 
signalled, we see substantial and increased future growth 
opportunities in the markets we operate in. As such we have 
accelerated our research and development spend during 
FY21 and it is anticipated this will grow to some 24-27% of 
revenue in FY22 to be able to appropriately capitalise on this 
growth opportunity. 

Revenue increased year on year by 13% to $91.6m and 
Earnings Before Interest, Tax, Depreciation and Amortisation 
(EBITDA) grew by 13% to $30.7m. Our Annualised Monthly 
Recurring Revenue metric (AMRR), which provides a forward 
view of sustainable revenue, increased from $84.0m at 31 
March 2020 to $88.4m as at 31 March 2021.

Reflecting the quality of EROAD’s service and product 
offering, in a year that brought with it a significant amount 
of uncertainty for our customers, EROAD’s Asset Retention 
Rate remained stable at 94.9% (FY20: 95.2%). In addition  
640 customers renewed their plan (13,821 contracted units).

In New Zealand, we grew by 7,526 contracted units. This 
growth reflects further extension into fleets of existing 
customers, as well as new customers in Construction & Civil 
Engineering, Freight & Road Transport, Services & Trades. 
During Q3, we secured a large Enterprise customer, Toll New 
Zealand. EROAD is to supply Toll New Zealand with almost 
1,000 units and EROAD SaaS products, across their heavy 
vehicle, light vehicle and trailer fleet. 

North America, has been the most challenging of our markets 
during COVID-19 due to the impacts of lengthy lockdowns, 
wild fires, civil unrest and politics. New sales were significantly 
challenged, with customers working from home and focused 
on maintaining their businesses as opposed to looking at 
making changes. While we did grow in North America, adding 
1,425 units during the year representing growth of 4%, it was 
significantly less than the prior year. We are encouraged by 
signs that the North America economy has started to open up 
again, bolstered by the increase in government support and 
rollout of vaccination programme with workers beginning to 
return to their workplaces across the region. Reflecting this, 
EROAD currently has two enterprise customer prospects in 
pilot for its Ehubo delivered services (approx. 1,500 units) 
as well as a solid mix of mid-market pilots either launched 

REVENUE

+13%

FY18

FY19

FY20

FY21

EBITDA

+13%

FY18

FY19

FY20

FY21

100

80

60

40

20

 -

35

30

25

20

15

10

5

 -

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LETTER FROM THE CHAIR AND CEO
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‘EROAD DAY LOGBOOK’

6,407

Subscriptions sold  
since launch in Q1 FY21

‘EROAD CLARITY DASHCAM’

1,054

Subscriptions sold  
in March 2021

Accelerating Growth Strategies
During the year, EROAD accelerated its growth strategies – 
extending the platform further and launching new products. 
This will enable us to grow contracted units and Average 
Revenue Per Unit (ARPU) and retain customers. It also leaves 
us very well positioned to capture the significant and growing 
opportunity with Enterprise customers in North America and 
Australia now that uncertainty is beginning to recede. We are 
starting to see results already and we expect this to continue. 
Following the launch of Clarity Dashcam in October 2020, 
EROAD began marketing, selling and dispatching this product 
in March 2021. 

As expected, high demand was seen in North America as our 
customers looked for safety solutions to deal with challenges 
associated with increased insurance premiums. For the month 
of March 2021, EROAD sold a total of 1,054 EROAD Clarity 
Dashcams and we expect this run-rate to continue for the 
Group as North America continues to return to normality after 
restrictive COVID-19 lock downs and further momentum is 
built within the New Zealand and Australian markets 

Our EROAD Day Logbook product has seen great success 
with some 6,407 drivers now using the product, including 515 
subscriptions to customers who do not currently have EROAD 
hardware installed.

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LETTER FROM THE CHAIR AND CEO
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Improving our 
sustainability reporting 

Ensuring we have the  
right team in place 

At EROAD we are committed to sustainable business practices 
that recognise the role our business plays in providing 
positive outcomes for the communities we operate in and the 
environment we share. 

Last year we committed to taking this one step further by 
moving towards reporting against a recognised sustainability 
reporting framework. We are pleased to report that we have 
made good progress during the past 12 months, including 
completing a materiality assessment which will provide 
the foundation for driving future improvements in our 
sustainability efforts.

As you will notice, we have aligned our disclosure in this 
annual report around what matters most to our stakeholders 
as well as reporting against Global Reporting Initiative (GRI) 
requirements. Additionally, following our ASX listing EROAD 
is committed to moving towards best practice reporting in 
Executive Remuneration disclosure over time. 

During the year, EROAD has continued to add capability 
and talent to its team to support its growth ambitions in 
North America and Australia, alongside the increased focus 
on winning Enterprise customers. As part of this, we were 
pleased to appoint Casey Ellis to the role of President, of 
North America. This has enabled Norm Ellis, who previously 
held that role, to move into a newly created role of Executive 
General Manager, Enterprise in March 2021.  Norm will lead 
and buildout EROAD’s global capability in Enterprise sales. 
In November, EROAD also appointed Tim Hogan as its Chief 
Technology Officer. Tim has held leadership roles of major 
global companies including Warner Bros and Tivo. He brings 
extensive experience in the technology sector to the team.

Around the Board table, we also need the right skills and 
capabilities for EROAD. Following the external review in 2019 
as part of our succession plan Michael Bushby and Candace 
Kinser stepped down from the Board in 2020.  We thank them 
for their leadership and guidance given to EROAD, including 
our IPO in 2014, and entering into the North America and 
Australian markets. Following their retirements, we have 
identified a vacancy which we will look to fill during FY22.  
When filling this vacancy the missing skill sets from the Board 
and the diversity of the Board will both be considered. 

Creating shareholder value  

Throughout the challenges of FY21, we continued to 
focus on creating shareholder value. During a year of an 
unprecedented uncertainty, our business model and customer 
value proposition ensured that we weathered the storm. Our 
Board, management and over 300 EROAD’ers stepped up 
and navigated the new reality – working differently and an 
increased focus on managing our cost base.  We recognised 
that this was the time to be bold and prepare to take best 
advantage of growth opportunities when conditions improved. 
For EROAD this meant increasing and accelerating its 
investment in its platform and productivity. The ASX listing 
and simultaneous $53m capital raise in September 2020 
ensured we had the upfront funding to be able to begin this 
acceleration. We achieved what we set out to do. EROAD is 
now stronger than ever and ready to grow – and grow quickly. 
Our share price increase of over 120% over FY21 is a vote of 
confidence that our shareholders also believe we have the 
right strategy in place and we are delivering against that.

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LETTER FROM THE CHAIR AND CEO
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Significant and growing  
growth opportunities  

EROAD operates in the global telematics industry, which 
is estimated to grow to US$750b by 2030.2 As countries 
around the world look to solve their transportation problems 
and as companies look to solve their operational problems - 
the demand for telematics and our products grows.

Our customers are going through a digital transformation 
and therefore are looking for solutions that give visibility, 
data and insights to manage their fleets more productively, 
track and manage mobile and remote assets as well as help 
with their ESG reporting requirements.

As governments look to solve transportation problems, 
regulatory telematics solutions in particular are forecast to be  
a significant growth driver forcing telematics adoption over 
the next 5+ years. Declining transportation revenues (as cars 
become more fuel efficient and EV uptake increases) and 
continued growth in road congestion will accelerate moves 
to road pricing globally. EROAD is focused on world leading 
regulatory telematics solutions is therefore well positioned to 
take advantage of this trend.

EROAD’s cash flow, combined with the recent $53m capital 
raise and banking facilities puts the company in a strong 
position to pursue strategic growth opportunities. EROAD 
continues to consider inorganic growth opportunities that 
will provide customer base and product capabilities to 
differentiate EROAD further.

FY22 Outlook 

We reiterate the FY22 guidance provided  November last 
year at the time of the H1 FY21 financial results release. It is 
anticipated that the percentage revenue growth in FY22 will 
strengthen from that delivered in FY21, but not be at the level 
experienced in FY20.  

 In New Zealand, we expect to add a similar number of units 
to that seen prior to FY21 (~9,000 p.a). New Zealand Ehubo 
sales will be complemented with Clarity Dashcam sales. In 
North America, we expect increased unit growth in FY22, 
supported by Clarity Dashcam sales, as economy returns to 
pre-COVID conditions. In Australia, growth during the next 2 
years will come predominantly from an Enterprise pipeline 
of 15-20,000 vehicles.  As EROAD continues to accelerate 
new product delivery for future growth in FY23 and FY24,we 
anticipates spending 24-27% of revenue on R&D during 
FY22. However, we anticipate that EBITDA margin will be 
maintained for FY22 will improve at the  
end of FY22. 

Thank you for your continued support of EROAD  
and we look forward to seeing you at the ASM.

Graham Stuart 
Chairman  

Steven Newman 
Chief Executive Officer

2 Source McKinsey & Company (2018). Relates to global telematics plus the monetary value of the global ecosystem developing around 
monetizing vehicle data—including consumer vehicles.

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OUR STAKEHOLDERS
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Our stakeholders    

ENGAGING WITH OUR STAKEHOLDERS IS CRITICAL 
TO THE SUCCESS OF EROAD. 

Customers 

In New Zealand and Australia, we win customers through 
a combination of face to face interaction and effective 
marketing material. Once a customer is committed to EROAD, 
one of our certified technicians arrange installations. For our 
enterprise customers, this is project managed and coordinated 
through our Enterprise Support Team. To service customer 
needs we have a variety of touch points: Customer Success 
(help desk, tech support, onboarding), Telephone Account 
Management, and Key Account Management personnel 
for our larger customers. Key issues for New Zealand and 
Australia customers in FY21 was environmental consciousness, 
health and safety for their staff, and increased profitability in a 
post-COVID market.

In North America, we win customers through solution based 
consultation through team selling and demo deployment.  
Once a customer is committed to EROAD we provide step-
by-step instruction for all required installations steps. Our 
onboarding team assists with pulse checks during the install 
process.  Regular outreach to Customers ensures they are 
informed on best practice and new products and services 
EROAD can provide. For larger fleets, an annual business 
review is provided.  The key issue for North America customers 
in FY21 was the impact of COVID-19. 

Policy Makers, Industry Regulators 
and Associations

EROAD works alongside regulators and policy makers to 
advance and refine regulatory laws and rules that are practical, 
business friendly, met policy and regulatory outcomes and are 
future proofed. By providing a bridge between the industry 
and the regulations, EROAD enables industry-accepted high-
quality solutions to be delivered to the market that, in turn, 
deliver safer and more sustainable roads.  

In New Zealand, EROAD engages with the Ministry of 
Transport sharing our experiences and providing insights to 
support regulatory change. EROAD engages regularly with the 
New Zealand Transport Agency/Waka Kotahi to help trouble-
shoot various matters arising, and this supports a collegial and 
constructive quarterly RUC performance meeting with them, 
and the ability to have free and frank discussions on more 
strategic issues. Key industry associations that EROAD works 
with is the Bus and Coach Association, Civil Contractors New 
Zealand, Intelligent Transport Systems New Zealand, New 
Zealand Trucking Association, Road Transport Association, 
Road Transport Forum, WasterMINZ. The key policy area 
EROAD focused on in FY21 with regulators and associations 
was New Zealand’s future revenue system and on how to 
make RUC less burdensome for light electric vehicle owners 
once the current RUC exemption expires.

In North America, EROAD is deeply involved in research on 
future transportation funding, engagement including with 
the Federal Highway Administration, the American Trucking 
Association, the Mileage Based User Fee Alliance, the Eastern 
Transportation Coalition, federal and state governments.  

Key industry associations that EROAD works with are 
American Trucking Association, Colorado Trucking 
Association, Commercial Vehicle Safety Alliance, Florida 
Trucking Association, Florida Trucking Association, Georgia 
Trucking Association, Indiana Motor Trucking Association, 
Louisiana Trucking Association, Mileage Based User Fee 
Alliance, National Private Truck Council, New York Trucking 
Association, Nevada Trucking Association North American 
Transportation Services Association, North Carolina Trucking 
Association, Oklahoma Trucking Association , Ohio Trucking 
Association, Oregon Trucking Association, Pennsylvania 
Trucking Association, South Carolina Trucking Association, 
Tennessee Trucking Association, Texas Trucking Association, 
Truckload Carriers Association, Utah Trucking Association, 
Washington Trucking Association, Wisconsin Motor Carriers 
Association, Women in Trucking, Wyoming Trucking 
Association.  The key policy area EROAD focused on in FY21 

was to continue to input to future sustainable transportation 
funding research in North America and globally.

In Australia, EROAD attends the Transport Certification 
Australia (TCA) online quarterly Telematics Industry Group 
meetings. This is supplemented with targeted discussions 
with TCA, the Australian Tax Office and the National Heavy 
Vehicle Regulator on matters relating to current or proposed 
equipment and service standards. Key industry associations 
that EROAD works with are Australian Furniture Removers 
Association, Australian Trucking Association, Civil Contractors 
Federation New South Wales, Civil Contractors Federation 
Queensland, Civil Contractors Federation Victoria, Queensland 
Trucking Association.  The key policy area EROAD focused 
on in FY21 with regulators and the industry was to input into 
on-road heavy vehicle RUC trials, and the review of the Heavy 
Vehicle National Law (HVNL).

EROAD also has deep relationship with the International 
Road Federation (Global) and International Bridge Tunnel and 
Turnpike Association. 

Investors

EROAD has a formal Investor Relations programme which 
focuses on providing communication in a balanced, clear 
and transparent way. The communication is ongoing through 
financial reporting, quarterly financial updates, Annual 
Shareholders Meeting (ASM), Management and Governance 
roadshows.  In April 2020, EROAD was announced as the 
finalist for the INFINZ Emerging Leaders Best Investor 
Relations award. 

Key issues on the minds during the FY21 year included the 
impact of COVID-19 on the growth of EROAD. 

EROAD Team

EROAD is always looking at how to enhance the employee 
experience. We check in with our people monthly through an 
employee survey. We also regularly communicate with our 
global team through weekly email updates, intranet articles 
and the monthly all staff meeting. We meet with senior leaders 
across the business each month to enable discussion on key 
topics. We have a vibrant social scene that helps our teams 
connect on a more personal level. FY21 saw an increase in 
digital and virtual communication as we adapted to lockdown 
restrictions in all regions and an overall increase in people 
working remotely. 

Key issues in FY21 were how to look after our people’s physical 
and mental wellbeing through the pandemic as well as 
attracting and retaining talent to successfully grow our business.

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OUR STAKEHOLDERS

What Really Matters  
to our stakeholders

During FY21 we completed a materiality assessment which will provide the 
foundation for driving future improvements in our sustainability efforts. EROAD’s 
materiality assessment process has enabled us to identify and prioritise the 
Environmental, Social and Governance issues that are of most importance to the 
business and its stakeholders so our improvement efforts can be impactful.

Materiality Assessment Process

The process we used to develop our materiality matrix 
included several rounds of engagement throughout the 
company and with a broad group of external stakeholders. 

As a first step, we held a series of internal workshop meetings 
to uncover material Environmental, Social and Governance 
factors relevant to EROAD’s business. Our discussions were 
informed by:

•  The internationally recognised Global Reporting Initiative (GRI) 
Sustainability Reporting Standards which were developed to 
help companies report in a consistent and transparent way; 

•  The 17 Sustainable Development Goals (SDGs) developed by 
the United Nations in 2015 which governments around the 
world have signed up to, including in the countries in which we 
operate; and

•  EROAD’s risk management framework which sets out the 

company’s key risk areas and tolerances. 

The process was then extended to wider group of internal 
stakeholders including Board members and team members 
from across the business who were asked to rank the factors 
based on what they believed should be most important to 
EROAD. The results were used to provide an indication of the 
overall relative importance of the material factors. 

The next step was to expand the process to include feedback 
from EROAD’s key stakeholders, including customers, 
investors (institutional and retail), regulators, industry bodies, 
branches of local and national government, partners and 
suppliers. Stakeholders were asked to assess the importance 
of each material factor and also the impact of that factor on 
them as a stakeholder in EROAD’s business.

Pleasingly, the material factors we identified through this 
process were strongly aligned with EROAD’s purpose and 
values.

Next steps

Having developed and validated our materiality matrix, we 
have aligned the disclosure in this Annual report to align with 
what matters most to our stakeholders. 

Going forward, we will look to report against the GRI standards 
and as a first step, you will find a reference index based on 
the GRI standards on pages 145 to 155 of this report. EROAD 
will now begun to put in place measurement process and 
to capture information on our performance. From there we 
will be creating meaningful goals to focus our improvement 
efforts and bring about meaningful change. We look forward 
to sharing our progress with you in future reports. 

10

9

8

7

6

MATERIALITY MATRIX 

Customer Safety 
Outcomes 

Safer communities

Contribution to public 
policy

Data integrity/reliability

Customer relationships

Sustainable financial  
returns

Data privacy & 
security

Ethical business practices

Talent acquisition & 
retention

Training & 
development

Carbon emissions

Environmental impact/
Natural resources

Responsible use of 
materials

Occupational H&S

Diversity & equality

6

7

8

9

10

OUR ENVIRONMENT

OUR PEOPLE

OUR COMMERCIAL APPROACH

OUR COMMUNITIES

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SAFER ROADS
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Safer Roads   

EROAD contributes to safer roads through the delivery of 
products and services to transport operators and drivers, 
and the road network insights we provide to road controlling 
authorities and the wider transportation industry. 

SAFE ROAD USE

Drivers are trained and 
behave in a safe way

FREQUENCY OF SPEEDING  
BY EROAD CUSTOMERS SINCE 2015

25%

20%

15%

10%

-

m
k
0
0
1

r
e
p
s
t
n
e
v
e
g
n
d
e
e
p
S

i

54%

2016

2018

2020

SEVERITY OF SPEEDING  
BY EROAD CUSTOMERS SINCE 2019

SPEEDING FREQUENCY BY PRODUCT COMBINATIONS 12%

HEAVY

LIGHT

33.76

18.14

15.27

5.32

No Driver Login
No Posted Speed

Driver Login
Posted Speed

No Driver Login
No Posted Speed

Driver Login
Posted Speed

SAFE ROADS AND ROADSIDES

SAFE SPEEDS

Ensuring the road design is 
appropriate for the users

EROAD’s Road Network Insights team 
provide insights and analytics to Road 
Controlling Authorities and the wider 
transportation industry to improve the 
understanding of vehicle activity and 
driver behaviours on the road network 
and as a result influence and improve 
decisions around road lifecycle 
management. 

That speed limits are set 
appropriate for the road  
and conditions

EROAD provides anonymised and 
aggregated insights into travel 
times and patterns across road 
networks.

EROAD’s product highlights 
the speed limit to drivers so 
they are always aware of their 
environment.  

A safe 
Road System
increasingly free 
of death and 
serious injury1

SAFE VEHICLES

Vehicles that are fit for 
purpose and safe to drive

Through EROAD’s Inspect App 
and in-cab inspections, Drivers 
have conducted over 1.8 million 
inspections. 3.3% of these 
inspections identified  unsafe-
to-drive trips which enabled the 
customer to take the appropriate 
action.

“The Inspect App is excellent, we use it 
for pre and post-trip inspections. Our 
drivers love it, they can upload photos 
and communicate any issues they can 
see coming. We can then act quickly to 
isolate a vehicle or adjust maintenance 
dates when required.”

Ben Field, General Manager 
Busfleet Australia

1 Graphic based on New Zealand’s Safe Systems approach to combatting road deaths and serious injury

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Eyes on the road

Clarity dashcam works alongside EROAD’s Ehubo product and is designed to 
help improve safety, enabling driver coaching and incident prevention, and in 
cases where an accident has happened, proof of facts. 

We expect to see strong demand for this product as our customers look to 
improve safety and reduce their insurance premiums from demonstrating their 
vehicle safety.

Research has shown that experienced drivers have an established set of habits 
while driving and the opportunity to amend some of these habits can lead to 
safer driving behavior. 

Video provides a visual coaching opportunity for the driver to see, understand, 
and improve. Video provides an understanding of root cause, and with 
that information companies can make quality operating decisions in a very 
efficient manner. Professional drivers are only at fault in catastrophic accidents 
~20% of the time. Enabling our customers to exonerate their drivers with video 
provides a strong return on investment. The long term benefit is the reduction 
of claims dollars for customers using video by 50 – 80%.

54% 

of vehicles showed a decline 
in speeding frequency after 
installing Clarity dashcam

1,054 

sold in March 2021

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SECTION TITLE

Leaderboard  
Changing the way businesses 
and the industry operates

In New Zealand, EROAD’s Leaderboard 
has become a well-known benchmark for 
drivers, in providing companies visibility 
on their performance in managing health 
and safety associated with driving.

EROAD Leaderboard allows a customer 
to benchmark its drivers against industry 
benchmarks, ranking them on key driver 
metrics. The customer can use the insights 
provided by Leaderboard to support 
driver training and reward programmes, 
helping it improve driver retention and 
meet its duty of care obligations.

This gamification aspect of the product 
has driven a safety culture through 
customer fleets, with feedback from 
customers that friendly competition 
has helped change the mindsets of 
their drivers, proving that positive 
reinforcement often works better 
disciplinary action.

Smart Environmental Ltd doubled their 5 
star drivers over FY21, due to an initiative 
which saw the introduction of a star rating 
to driver KPI’s. Cardinal Logistics Limited 
began internally displaying monthly 
leaderboard results and rewarding those 
top drivers. Through this they obtained a 
61% drop in speeding events.

“ Driver behaviour has improved markedly 
since we have been using Eroad in our fleet, 
overspeeds and other adverse driving behaviours 
have reduced and in general we are seeing 
better performance from our trucks and drivers 
which has also made a positive impact on our 
fleet downtime. The Leaderboard is referenced 
to reward good driving behaviour and this has 
created a friendly rivalry to improve driver ratings 
resulting in safer practices, better operators and 
an improvement on the bottom line”

Murray Pharaoh, National Fleet Manager,  
Smart Environmental Ltd.

“The EROAD Leaderboard allows us to visibly 
show drivers how we are accurately tracking 
Speeding events of our fleet.  Speeding is not 
only a safety risk but also negatively impacts 
Asset Damages.  These reports create awareness 
amongst the drivers that we are using data that is 
real and live to manage their weekly bonus paid 
out if certain criteria’s are met with Speeding 
being the most import aspect”

Leonard Griessel, National Transport Manager,  
Cardinal Logistics Limited

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SUSTAINABLE ROADS

Helping our customers run their 
businesses more productively 

With over 126,000 connected vehicles, 
checking in every few seconds, EROAD 
can offer a significant amount of insight 
on how effectively our customers’ 
businesses are operating.

EROAD’s new suite of premium data 
products, EROAD Analyst, was made 
available in March 2021. Representing the 
first stage of EROAD’s data strategy, these 
products focus on improving customer 
access to data, by providing connection 
to an always up-to-date data set accessed 
through a modern visualisation and 
analytics platform.

This approach automates much of the 
work required by customers to derive 
intelligence from their data. Customers are 
able to customise their own dashboards 
based on specific requirements, including 
safety and utilisation metrics, detecting 
ensuring accurate time keeping by cross-
referencing logbook data with vehicle 
use, and informing more profit-focused 

business decisions by combining EROAD 
data with financials in route and vehicle 
level profit & loss reporting.

Through its team of professional data 
engineers, visualisation experts and 
data scientists, EROAD will continue to 
enhance this platform to build on the level 
of insights offered to its customers.

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SUSTAINABLE ROADS

“In economics, things take longer 
to happen than you think they will, 
and then they happen faster than you 
thought they could” 

Rudiger Dornbusch

The Future of 
Transportation 
Funding

In 2010, EROAD and New Zealand led the world by introducing an electronic 
means of managing Road User Charges. By taking advantage of GNSS-based 
digital technologies, New Zealand’s original distance-based charging scheme 
was able to leap forward with simpler, more accurate, and faster processes. 

In the 11 years since EROAD introduced eRUC, EROAD has become responsible 
for a third of all RUC transactions and 80% of all Heavy Transport ERUC. At 
the same time, the real cost of operating the RUC system is estimated to have 
reduced also by a third. The technology EROAD uses to deliver these benefits 
has unlocked both additional maintenance, fuel and insurance cost savings for 
fleets, and social benefits for the wider public from safer driving and roads, 
resulting in avoided harm. 

Despite the success of the New Zealand RUC model, the world has been slow 
to pick up on the approach. However, momentum has been quietly building. 
The world is entering a period where real progress to wider-spread use of 
RUC is occurring and will continue to occur. Just in EROAD’s key markets, New 
Zealand is continuing to look at both congestion pricing and the future of the 
revenue system once fuel taxes become inadequate and even less fair, the 
United States is pressing on with both State-level RUC-like reforms and multi-
state trials, and Australia is exploring State-level distance charges for electric 
vehicles and national-level RUC for heavy vehicles.  

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SUSTAINABLE ROADS
SECTION TITLE

EROAD is the bridge between 
the transport industry and the 
regulators 
EROAD works alongside regulators and industry experts to 
find solutions that are sensible and future proof. By being 
the bridge between the industry and the regulations, EROAD 
enables industry-accepted high-quality solutions to be 
delivered to the market that, in turn, deliver safer and more 
sustainable roads.  

For example EROAD has been the Technology and Research 
Partner to the Eastern Transportation Coalitions commercial 
vehicle RUC projects. The  1st Multi State RUC Truck Pilot in 
the US (2018/19) and the 1st National RUC Truck Pilot in the 
US (2020/21).  These projects are being supported by the 
American Trucking Association and other industry bodies. 
EROAD is widely recognised as a thought leader in this 
space with members of its Global Market Development team 
appointed to the roles of Chair of RUC Committee and RUC 
Academy instructors in the International Road Federation, in 
addition to a Member of the Advisory Council for the Mileage 
Based User Fee Alliance. 

Electric vehicles pay no fuel taxes. High efficiency vehicles may 
pay only 20%-30% the tax of an equivalent petrol or diesel 
using vehicle. In this environment, distance-based charging is 
a practical way of ensuring roads get paid for fairly. 

EVs are not the only option being considered for 
decarbonising transport. Hydrogen is well suited to the 
heavy-duty logistics, road, rail, marine and ultimately aviation 
applications, while electricity is a more suitable option for 
light duty vehicles. Many governments recognise this, and are 
working to ensure hydrogen is not over-looked as a possible 
alternative.

Managing and pricing congestion, 
pollution and other indirect costs 
A major challenge for road tax reform is that people have 
often been allowed to forget that roads need ongoing 
investment to keep them running – that there are ongoing 
direct costs that must be met.  At the same time, there are also 
important indirect costs that are getting harder and harder to 
ignore – urban congestion from excessive demand, poor urban 
amenity due to busy roads and increased fumes, particulates 
and noise from heavy traffic. 

There is growing interest in going beyond just fair charges to 
recover direct costs and pricing roads to better reflect these 
‘externalities’ and optimize road use. Whereas, a few short 
years ago, traditional tolling systems were seen as a way of 
pricing high demand corridors, experts recognise that these 
problems need network-wide solutions that tolling cannot 
deliver, but eRUC systems can. 

There is more to this than just fairly charging and pricing the 
right uses at the right places and the right times. A good eRUC 
system also provides the data and insights needed to better 
manage both the network, the processes of change, and the 
setting of appropriate, fair and effective prices. 

Behind this change is the drive  
to reduce the carbon footprint  
of land transport
Nations are now approaching the de-carbonisation of land 
transport with real urgency. Whereas fuel taxes have long 
been the principal source of revenue for road building 
and maintenance, they are on a downward trend - at an 
increasingly rapid rate and will soon prove inadequate. And 
where countries have failed to maintain the real value of their 
fuel taxes i.e., the United States, they already are. 

New highly efficient internal combustion engines, fully electric 
vehicles, and alternatively fueled vehicles all contribute to 
less fuel tax revenue from land transport. Regulators and 
manufacturers are working together to accelerate their uptake: 

•  By the end of 2020, more than 20 countries had announced 
bans on the sales of conventional cars or mandated all new 
sales to be ‘Zero Emission Vehicles’

•  Eighteen of the world’s top-20 vehicle manufacturers – 

responsible for 90% of new car registrations in 2020 – have 
publicly stated plans to electrify their range of vehicles and 
ramp-up production 

•  Truck makers such as Daimler, MAN, Renault, Scania and Volvo 

have indicated they see an all-electric future, broadening 
range of available zero-emission heavy-duty trucks

•  EV’s are not the only option being considered for 

decarbonising transport. Hydrogen is well suited to the 
heavy duty logistics, road, rail, marine and ultimately aviation 
applications, where electricity is a more suitable option for 
light duty vehicles. Many governments recognise this and are 
working to ensure hydrogen is not over-looked as a possible 
alternative, in particular green hydrogen

These declarations are reflected in real change, visible now: 

•  There were 10 million electric cars on the world’s roads at the 

end of 2020, following a decade of rapid growth 

•  Electric car registrations increased by 41% in 2020, despite the 
pandemic-related worldwide downturn in car sales in which 
global car sales dropped 16% 

•  Electric bus and electric heavy-duty truck registrations 

increased in 2020 in China, Europe and North America, the 
global electric bus stock reaching 600,000 and the electric 
HDT stock 31,000. 

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SUSTAINABLE ROADS

The Environment  
we operate in 

EROAD recognises the need to operate sustainability and protect the 
environment in which our customers operate. One of the problems 
Governments, regulators and our customers alike are trying to solve, is the 
impact of transportation on the level of Greenhouse Gas Emissions (GHG).  
EROAD’s products look to help customers improve their on-road productivity 
and help with fuel efficiency (reduce fuel usage and idling) which can in turn 
help customers reduce their GHG emissions. 

68%

FLEET IDLING

48%

OVERSPEEDS

37%

FUEL TRANSACTIONS

CASE STUDY
HOW REDUCED IDLING HELPED TIL FREIGHT 
IMPROVE ITS FUEL EFFICIENCY

TIL Freight is a New Zealand provider of transport and 
logistics services, including general freight, containerised 
goods, and heavy haulage. At the start of 2020, Divisional 
CEO of Transport, Dallas Vince was brought in to streamline 
operations across its 21 branches and look for efficiency gains.

EROAD’s idle reports which identify instances where fuel 
has been wasted through excessive or unnecessary idling 
or a poorly tuned vehicle highlighted that most idling was 
happening in their container group. TIL’s fleet includes two 
types of container vehicles: skeleton trailers, where the 
container is lifted on using a forklift or combi-lifter, and 
swinglift trailers, which have movable lifting arms that make a 
forklift unnecessary. Until the late 2000s, most swinglifts relied 
on the vehicle to power them, requiring the driver to leave the 
ignition on. Now, nearly all have their own auxiliary motor, but 
drivers who had worked for TIL since those days were still in 
the habit of leaving their trucks idling, and the EROAD data 
showed that. While compliance dictates one-on-one driver 
management regarding overspeeds, the topic of idling hadn’t 
been discussed with drivers before.

With the help of all the container division managers, EROAD 
developed an inclusive consultation process and reviewed 
TIL’s standard operating procedures, which contained nothing 
specific about idling. From there came the idea of hosting an 
informal Toolbox Talk, with a one-pager explaining the cost of 
idling to the business. TIL then put the EROAD Leaderboard 
up on the breakroom TV. TIL Christchurch saw an across-the-
board improvement: Between July and September 2020, fleet 
idling dropped by more than 68 percent and overspeeds by 48 
percent. Many of the container division’s double-shifted units 
went from 10 to 15 hours of idling per week to fewer than five.

Using EROAD’s advanced analytics, EROAD compiled fuel 
efficiency data to establish a benchmark and identify which 
trucks were performing poorly and the possible reasons why.  
That data told the TIL team to look at three things: “One, is it 
driver behaviour that’s leading to poor fuel efficiency? Two, is 
it the wrong truck for that job? Or three, is that the truck is old 
and needs to go?”

EROAD gives you a broader understanding of the effects of 
idling and speeds on different elements of fleet management.

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SUSTAINABLE ROADS

Working towards increased 
Electric Vehicles 

EROAD has partnered with FUSO and several early adoptor customers including 
Mainfreight, Bidfood, Toll, Owens Transport and Vector OnGas, to provide data, 
analytics and insights around heavy EV usage as part of the Round 9 EECA Low 
Emissions Contestable Fund. The study involves a one-year e-truck trial with 5 
FUSO eCanter trucks and chargers in the proposed Auckland Transport Queen 
Street Valley Zero Emissions Area (ZEA).  This will give EROAD the opportunity 
to gain deeper insights into FUSO’s eCanter truck, deliver value to end customers 
through assisting with addressing barriers to EV adoption, and informing future 
policy development around low emissions zones for urban freight

In EROAD’s own New Zealand fleet we have 9 Hybrids and 3 Electric Vehicle (2 
more waiting on delivery).  We will be replacing a further 8 vehicles this year with 
at a minimum hybrids but potentially another few EV’s. EROAD’s total fleet is 33. 

EROAD and its suppliers 
impact on the environment 

Suppliers of EROAD’s location mapping systems are likewise 
committed to corporate responsibility. Operating in a 
predominantly office-based environment, EROAD’s chosen 
mapping supplier does not operate any production plants 
of factories. Employees are encouraged to participate in 
environmental awareness campaigns and volunteer during 
key days of action. Environmental impacts of the business 
are tracked, and metrics to reduce the carbon footprint are 
identified.  Solutions to decrease environmental impact 
are constantly sought, including through green building 
certifications.  As location technologies are now a critical 
aspect of our global infrastructure, EROAD’s mapping 
suppliers offered significant support during the COVID-19 
crisis. They willingly partnered with global businesses to 
support the collection of location data whilst ensuring the 
protection of individual privacy rights. The company’s Give 
Back program lead to the packing of 522,072 meals across 12 
cities around the world.

EROAD is proud to be partnering with likeminded 
organisations in our pursuit of sustainability across our 
business processes. We are looking to use our Supplier 
Sustainability Questionnaire to screen new suppliers using 
environmental and social criteria. This insight will assist us in 
our endeavour to take action against negative environmental 
and social impacts.

EROAD’s direct impact on the environment is through the 
offices we operate in, the use of data centres to power our 
platforms, and the business-related travel we undertake.

EROAD has engaged Green Gorilla for a 360-degree waste 
solution in our global headquarters. Green Gorilla has 
successfully braved uncharted territory to maximise recovery, 
reuse and recycling, to promote a cleaner, greener New 
Zealand. We are also diligent in our recycling efforts in both 
our Australian and American offices. Going forward, EROAD is 
looking to measure key environmental initiatives so that we can 
continue to find ways to reduce our impact on the environment. 
We know that together, we can make a difference.

EROAD recently conducted a Supplier Sustainability 
Questionnaire to assess the sustainability initiatives 
undertaken by our key suppliers. The Questionnaire 
encompassed 5 main questions under the following headings: 
Values, Environment, Social, Governance and Community.   
Our suppliers are focussed on ensuring ethical business 
practices, and for the most part, can clearly identify their 
environmental impacts and respond to these  accordingly. 
Our suppliers are committed to reducing their environmental 
impact by making their operations more efficient, using 
low-carbon energy sources, and are either ensuring that 
their goals are monitored and measured, or are working 
towards achieving this. Supplier Questionnaire responses 
included references to Codes of Conduct, Corporate Social 
Responsibility Policies, Human Rights Statements/Policies, 
Modern Slavery Statements, and Slavery and Human 
Trafficking Statements.  

Manufacturers of EROAD’s EHUBO device have not wavered 
in their commitment to sustainability by continuously aligning 
themselves with the UN Sustainability Development Goals. On 
the environmental front, ambient air monitoring is conducted 
periodically by a 3rd party laboratory to measure mitigation 
efforts relating to the use of hazardous chemicals in the 
line process.  Our EHUBO manufacturers are committed 
to principles of good corporate governance and are in full 
compliance with the Code of Corporate Governance for 
publicly listed Companies set forth by the Securities and 
Exchange Commission. Manufacturers are also committed to 
upholding human rights and employee safety as specified in 
their Code of Conduct. Their community engagement in 2020 
included programs to aid and support employees in need of 
financial aid amidst the pandemic, fundraising for employees 
affected by typhoons, free meals, and various other employee 
engagement activities. 

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SUSTAINABLE ROADS

EROAD’s  
Supply chain 

COVID19 has had a major impact on supply chains globally, 
with some key issues in raw material supply, but Eroad has 
been able to maintain supply through this time including into 
the NZ based Global Service Centre (GSC) and has manged 
well in FY21.

Eroad was designated an essential service by the NZ 
government during COVID19 and our shipments globally out 
of warehouses and the GSC remained running, with strict 
COVID H&S protocols, through all NZ lockdown periods and 
extended US disruption.

Where possible we refurbish product in our NZ based service 
centre to increase lifetime and decrease waste. During FY21 
year we have refurbished over 11,000 units (FY20 9,500). 
EROAD Where tags can be returned to source for recycling at 
end of life.

This year we have expanded our partners to help with more 
secure recycling programs of older product now approaching 
end of life. 

Looking at the coming year, we are forecasting the extended 
impact on global supply chains from COVID will continue 
through all of FY22 on items such as silicon for memory 
devices, and crystals for modems as globally raw material 
have been depleted. We have gone into FY22 holding higher 
levels of stock of raw material both at supplier and in our 
warehouses to help smooth supply.

REFURBISHED OVER

11,000

UNITS

(FY20: 9,500 units)

RECLAIMED 

>10%

LISOCI2 BATTERIES,  
PCB BOARDS  
AND LEAD ACID BATTERIES

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CUSTOMER

Customer 
Relationships 

94.9ASSET  

RETENTION RATE

%

640CUSTOMERS RENEWED  

THEIR EROAD PLAN 

(13,821 contracted units)

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CUSTOMER

Customer Relationships 

Our customers are important to us and 
EROAD differentiates itself by working 
in partnership with them over time. By 
investing time into our customers we 
ensure that they are making the most of 
their EROAD products to maximise their 
return on investment and achieve their 
business outcomes.  It also ensures that 
we know how to best meet their needs 
going forward. Happy customers that 
make a good return on investment will 
remain loyal and grow their relationship 
with EROAD over time.  

North America Customer 
Satisfaction Survey July 2020

OVER 

OVER 

OVER 

80% 

of responses  
were Satisfied or  
Very Satisfied  
with EROAD

70% 

of responses  
were Satisfied or  
Very Satisfied  
with EROAD solutions 
and the impact  
on their businesses  

65% 

of responses  
were Satisfied or  
Very Satisfied  
with EROAD’s  
responsiveness  
to support issues  
and support  
chat feature

Ensuring the voices of our 
Enterprise customers are heard 
In the past year, EROAD has focused on ensure that it’s 
products and services meet the needs and volumes of larger 
fleet sizes. Alongside this investment, EROAD has invested in 
customer service to ensure it too meets the needs of Medium 
and Large Enterprise customers.  

Customer Success Managers provide a “voice of the customer” 
to identify and highlight key customer business needs to all 
internal EROAD stakeholders. This ensures that all customer 
outcomes, in particular for enterprise customers, are met all 
while providing a superior customer experience.

To achieve this, the CSM will have the following engagement 
channels: 

•  Weekly meeting to review all Product Support Cases & track 

progress on all open projects & Integrations

•  Regular and ongoing reviews of Customer adoption to 

ensure Best Practices are employed and that EROAD solutions 
are utilized to ensure maximum efficiency and satisfaction

•  Annual Business reviews highly customized with specific data 
points and benchmarks to document continued ROI provided 
by EROAD solutions

•  Enterprise Customers work in close partnership with EROAD 
Product team, including participation in Product Alphas & 
Betas, to ensure Enterprise workflow needs are met

•  A twice yearly NPS (Net Promoter Score) that measures 

customer loyalty and allows for EROAD Customer Success to 
proactively follow up with customers.

EXAMPLE OF A LARGE CUSTOMER’S EROAD JOURNEY 

A COMPELLING ROI CASE 

2013

2014 – 2016

2017

2018 – 2020

NOW

Customer saw value 
in eRUC and off-road 
solutions

Selected as  
preferred supplier

Connected ~200 Ehubo1 
units and  TUBOs (trailer 
tracking solution) across 
one regional division

Expanded across regional 
divisions, increasing the 
number of Ehubo1 units 
connected

Introduced Driver ID, Fuel 
Card integration and reporting 
Elocate onto construction 
assets 

Won RFP on providing full 
solution nationwide 

Heavy Vehicles upgraded Driver 
ID, Safe Driver and Posted Speed

Light Vehicles started to be 
connected following launch of 
Ehubo2 on Driver ID, Safe Driver 
and Posted Speed 

Assets upgraded to Driver ID, 
Fuel on box and Idle alert. 

Sub-contractors of customers 
were mandated to have EROAD 
fitted for transparency 

Upgraded majority Ehubo1 
units to Ehubo2 

Etrack wired replacing 
Elocate where waterproof 
unit required 

~4k connected units 

‘EROAD Where’ and ‘Logbook’ 
trial underway 

RUC SAVINGS OF
$
~

24.67

FUEL SAVINGS OF APPROX.

PER MONTH PER 
HEAVY VEHICLE 

$
~

114,000

REDUCTION IN OVERSPEED EVENTS 

PER 100KM SINCE EROAD 
INSTALLATION OF EHUBO2

92%

~

SAVING

6

~

FTE WITH  
ERUC

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CUSTOMER

Supporting our customers 
during COVID-19 

Supporting our customers has been a priority for EROAD throughout the 
ongoing COVID-19 global crisis.  

During the various restrictive lockdowns across New Zealand, North America 
and Australia EROAD continued to operate effectively to service and support 
the supply chain and activities of transport and essential service providers 
that were fully operational throughout. EROAD’s products and services also 
supported organisations protect their staff and customers against the spread of 
COVID-19 with products and services that allowed for paperless operations. 

chasing better 
resolution

A dedicated EROAD COVID-19 response team was formed 
in March 2020 and financial support provided in the form of 
deferred payment to some of our more adversely impacted 
customers as they worked through the uncertain journey.  
The aim was to relieve pressure for over 198 of our customers 
and provide them with the all-important support with 
cash-flow whilst vehicle utilisation was down and their usual 
revenue streams were affected on a short term basis. For 
instance, in New Zealand some customers opted to defer 
25-50% of their monthly payments in April and May 2020 
(to be paid back over a period 12 months). We are extremely 
proud to see a number of these customers begin to recover; 
including Lifesaving Victoria who were offered financial relief 
almost a year ago; and are now looking to eventually grow 
their fleet and further their relationship with EROAD.

Our Tourism sector customers have been some of the most 
severely impacted by COVID-19. To accommodate for the 
effect of this, EROAD offered 100% Financial Relief for a period 
of 3-6 months for our six Tourism customers. 

In North America, EROAD has maintained a strong relationship 
with the Oregon Trucking Association since first entering the 
market. In April 2020, as the COVID began, EROAD worked 
with Oregon Trucking Association to get their “Feed The 
Truckers” initiative off the ground. This initiative was joined 
by many other trucking and trucking-adjacent businesses 
throughout the state and continued until the end of June. 
The EROAD marketing team helped coordinate the project in 
its early stage and many EROADers manned the first several 
events to distribute food to truckers along major highways in 
the Portland metro area. At its Annual Safety Conference in 
November, Oregon Trucking Association named EROAD its 
2020 “Allied Member of the Year”.

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DATA

Protecting the Data 
so our customers can 
operate with confidence 

The resilience and integrity of the data EROAD collects and uses 
in its platform and for reporting is fundamental to our success.  
EROAD collects data on the identity of vehicles, assets and 
drivers; asset and driver location; driver behavior; compliance 
with land transport and health and safety laws including 
worktime/fatigue, road safety and road user taxes  
and regulations. A breach of confidentiality, loss of data or 
technology disruption can lead to significant financial loss  
and/or reputational damage for our customers. It is critical that 
we maintain resilient and robust platforms and continually invest 
in privacy and security.  

The key risks around EROAD’s data include unauthorized access, failure to protect personal 
or confidential information, Malware, Distributed denial of service and fraud attacks. To 
ensure that our data is protected from these risks, EROAD has invested in a number of 
activities over time including: 

•  establishing a cross functional cybersecurity cohort from the operations, IT, engineering and 
legal team focused on IT risks including availability and continuity risks, security, change 
management, data integrity and outsourcing 

•  partnering with global leading and resilient technology partners including AWS, Here Maps 

and Vodafone

• 

• 

implementing a 24/7 security operations centre and security incident and events management 
service (SOC / SIEM) with a leading New Zealand information security company 

increasing training for staff on the importance of strong IT and cybersecurity and privacy 
practices

•  annual penetration testing of external and internal servers and applications

• 

increased insurance limits where remedial assistance may be needed.

Data risks and prevention mechanisms are reviewed monthly by the Board and Management 
team, with continuous improvement and best practice as the benchmark. During this 
financial year EROAD is focused on:  

• 

implementing the leading global National Institute of Science & Technology (NIST) framework 
for cybersecurity and privacy

•  updating its business continuity plan, including for cyber security events

•  simplifying and strengthening its policies for IT and cybersecurity.  

100.oo%

AUSTRALIA AND NEW ZEALAND 
FY21 UPTIME 

99.99%

NORTH AMERICA 
FY21 UPTIME 

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GLOBAL TRENDS

The Global Telematics 
industry poised for 
significant growth  

THE GLOBAL TELEMATICS INDUSTRY IS 
ESTIMATED TO GROW TO US$750B BY 20302

Digital Transformation of the 
Transportation industry
•  Transportation and logistics companies face significant 

change and increasingly require telematics solutions that give 
actionable insights and predictive analytics to manage their 
operations, vehicles, assets, and drivers in a  safe, compliant 
and efficient manner.

•  As the cost to track reduces, companies want to track and 
manage all their mobile and  remote assets, beyond trucks, 
trailers and cars.

•  Customers’ need their telematics solutions to be  

deeply integrated with other back office systems such,  
logistic management, HR, ERPs and finance systems in  
order to share data in order to better understand and  
operate their businesses.

Acceleration towards road pricing
•  Declining transportation fuel taxes due to increasing fuel 
efficient and adoption of electric vehicles together with 
increased road congestion will see an acceleration towards 
road use based charging. 

•  New Zealand continues to look at both congestion pricing and 
road usage charging options for all road vehicles as the current 
fuel taxes arrangements for petrol vehicles is forecasted to 
become inadequate and even less fair.

•  North America is pressing on with both State-level RUC-like 

reforms and multi-state pilots

•  Australia is exploring State-level distance charges for electric 

vehicles and national-level RUC for heavy vehicles. 

2 Source McKinsey & Company (2018). Relates to global telematics plus the monetary value of the global ecosystem developing around 
monetizing vehicle data—including consumer vehicles

Health & Safety focus continues to 
increase 
•  The use of Video telematics improves Health and Safety 

outcomes in one of the most dangerous workplaces, the cab 
of the vehicle (truck or car). Harsh braking and cornering 
recorded videos allow drivers to be coached and additional 
training put in place.

• 

In North America, many insurers required video telematics in 
all vehicles in order for  operators to get acceptable premiums.

•  Further regulatory change is expected over next 5 years with 
Electronic Logbooks in NZ and AU to improve driver fatigue 
management.

Regulatory Telematics
•  Government supported/mandated regulatory telematics 

solutions (for road funding, Health & Safety on the road, Driver 
Fatigue and Vehicle maintenance) are forecasted to be a 
significant growth driver forcing telematics adoption over the 
next five plus years.

Post COVID-19 Trends
•  Need to significantly improve supply visibility and 

transparency.

• 

Increased pressure to go digital and contactless, removing 
paper, human contact and manual processes.

•  Governments and corporate transportation customers are 

demanding:

•  The transportation industry reduces its emission footprint 
and adopt cleaner technologies such as non ICE (internal 
Combustion Engine) powered vehicles.

• 

Improved ESG reporting against a sustainability  
improvement plan. 

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OUR MARKETS
SECTION TITLE

The Market Leader  
in New Zealand

$

CONTRACTED UNITS 

9%

(FY21: 87,892; 
FY20: 80,366) 

ANZ ASSET RETENTION RATE 

95.8%

EBITDA 

(FY20: 96.1%) 

11% (FY21: $38.8m;  

FY20: $34.9m)

NZ MONTHLY SAAS ARPU 

(FY20: $55.78) 

56.18
6,407

EROAD LOG DAY SUBSCRIPTIONS  
SOLD IN FY21

1,391

CONTRACTED UNITS UPGRADED  
FROM EHUBO1 TO EHUBO2

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OUR MARKETS

New Zealand 

TODAY

87,892 

CONTRACTED UNITS 

45%3

ENTERPRISE 
CUSTOMERS

In December 2020 EROAD secured a large New Zealand Enterprise customer, 
Toll New Zealand. The NZ business, which delivers freight forwarding, end-to-
end transport services and comprehensive logistics solutions to customers has 
chosen EROAD as their regulatory partner in New Zealand. 

EROAD is to supply almost 1,000 units across their heavy vehicle, light 
vehicle and trailer fleet. Toll New Zealand are also utilising several EROAD 
SaaS (Software as a Service) services, including Inspect, Logbook and the 
Maintenance module. For the past three months, EROAD has positioned an 
implementation consultant on site at Toll New Zealand to work to ensure 
the roll out across 20 different regions around New Zealand is as efficient 
and smooth as possible and that Toll New Zealand’s return on investment in 
EROAD’s products is maximised.  

CONSTRUCTION & 
CIVIL ENGINEERING

FREIGHT & ROAD 
TRANSPORT

AGRICULTURE/
FORESTRY

32%
16%
10%
42% OTHER

STRATEGIC PRIORITIES 

FY22 FOCUS

EROAD is the market leader in New Zealand, however there 
are still significant growth opportunities with Health and 
Safety remaining the main driver of telematics adoption. 

In FY22, EROAD expects to add a similar number of 
contracted units to that seen prior to FY21 ~9,000 p.a. 

•  Grow connected units to 100,000 over the next 18 months

•  Extend product offering in Civil Engineering,  Government 
fleets, Health & Safety, Electric vehicles, carbon footprint 
reduction initiatives and ESG reporting

• 

Increase APRU by selling additional SaaS and mobile services 
to existing customers

•  Extend the range of telematics solutions beyond trucks and 
commercial light vehicles into off road vehicles and small 
assets

•  Leverage EROAD’s customer ecosystem to create new value

3 Enterprise customers is defined as fleet sizes of over 150 for New Zealand

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OUR MARKETS
SECTION TITLE

Established in 
North America

CONTRACTED UNITS 

4%

despite challenging  
macro-economic  
conditions  
(FY21: 35,437;  
FY20: 34,002) 

NA ASSET RETENTION RATE 

92.8%

(FY20: 95.2%) 

EBITDA 

33%

(FY21: $10.0m; 
FY20: 7.5m)

NA MONTHLY SAAS ARPU4 

US$

(FY20: US$41.94) 

42.95m
# 1

ELECTRONIC LOGGING DEVICE (ELD) RATING 
IMPROVED FROM #2 TO #1 ON ELD RATINGS5

1,020

‘EROAD CLARITY’ DASHCAMS SOLD IN MARCH 

4 In NZ$ ARPU fell from NZ$65.73 to NZ$65.03 reflecting FX movements 

5 ELD ratings supplies ratings of 33 of the top tier ELD solutions out of 313 that supply a solution that is self certified with the FMCSA

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OUR MARKETS

Earning the Top Spot at ELD Ratings
Since 2018, the EROAD ELD has been ranked well on 
ELD Ratings, a well-known technology review site in the 
United States. Fuelled by positive customer remarks about 
dependability, accuracy, and high levels of customer service, 
EROAD achieved the #2 rank in 2018. In June 2020, with 
the launch of our new “Smart Short Haul” feature, EROAD 
garnered new positive feedback from users. The Smart Short 
Haul feature helps drivers who are close to exceeding allowed 
hours or miles in a shift to operate under the proper ruleset,  

so they avoid compliance fines and being placed out-of-
service during roadside inspections. In the office, Smart 
Short Haul streamlines processes for time sheets and logs, 
reducing back-office work and human errors and yielding 
data that helps our customers better understand compliance 
trends. In September, following a new review by ELD Ratings 
editorial team,  EROAD was awarded the #1 ranking. In 
March 2021, ELD Ratings was acquired by FreightWaves and 
renamed FreightWaves Ratings. The site now offers reviews 
of dashcams as well as ELDs.   

North America

TODAY

35,437  

CONTRACTED UNITS 

30% 

6

ENTERPRISE 
CUSTOMERS

47%
24%
8%
21%

FREIGHT & ROAD 
TRANSPORT

CONSTRUCTION & 
CIVIL ENGINEERING

SERVICES & TRADE

OTHER

STRATEGIC PRIORITIES 

FY22 FOCUS

•  Grow connected units to 50,000 over the next 18 months

•  Extend product offering in the freight, road transportation 

fleets and the areas of health & safety

•  Extend the range of telematics solutions beyond trucks into 
trailers and associated light duty vehicles and large assets

•  Pursue Enterprise opportunities

•  Grow monthly run rate business in small to medium  

sized fleets

•  Support National Road User Charging pilot for heavy vehicles

While North America has been servery impacted in FY21 with 
COVID-19, wildfires, civil unrest and a challenging year of politics 
this market is EROAD’s largest growth opportunity.

Following almost 100% adoption of telematics in interstate 
vehicles over 10,000 pounds, following the Federal 2017-19 
ELD mandate it is expected many Small to Medium Businesses 
will upgrade to more than an ELD only solution when their 
36-month contracts are renewed. In addition to this it is expected 
a significant number of vehicles to upgrade following AT&T & 3G 
network shutdown in Feb 2022. Dash Cams will be a significant 
growth driver in this region as many insurers requiring video 
telematics operators to get acceptable premiums.

In FY22, EROAD expects increased unit growth, supported by 
Clarity Dashcam sales, as the economy starts to open up again 
after COVID-19. Currently there are two enterprise customer 
prospects in pilot for its Ehubo delivered services (approx. 1,500 
units) as well as a solid mix of mid-market pilots either launched 
or beginning soon. There are also further pilots for Clarity 
dashcam with existing and new customers.

6 Enterprise customers is defined as fleet sizes of over 500 for North America

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OUR MARKETS
SECTION TITLE

Building Brand  
in Australia 

CONTRACTED UNITS 

36%

in small to medium customer segment  
across range of industries   
(FY21: 2,874; FY20: 2,120) 

EBITDA 

(0.9)m

reflecting growth in small to medium customers 
offset by investment in building brand  
(FY20: $(1.3)m) 

LARGEST ENTEPRISE CUSTOMER SIGNED

Ventia

AU$

MONTHLY SAAS ARPU7

33.16

(FY20: AU$35.86)

7 In NZ$ ARPU fell from $37.28 to $35.50 reflecting FX movements 

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OUR MARKETS

Australia

TODAY

2,874   

CONTRACTED UNITS 

32%8

ENTERPRISE 
CUSTOMERS

EROAD entered the Australian market in 2018 and has been 
building its brand on the back of regulatory reform which has 
provided a significant low-cost growth option. This agreement 
will almost double EROAD’s presence in the Australian market.

Ventia’s Group Chief Executive Officer, Dean Banks said 
“Safety and health above all else is our number one priority 
at Ventia. We are delighted to enter this strategic partnership 
with EROAD, which will enhance our ability to improve safety 
for our people, our clients and the communities we operate in.”

In April 2021 EROAD signed its largest Australian enterprise 
customer, Ventia. Ventia, an existing New Zealand customer 
for a number of years, has chosen to come on board as 
an Australian enterprise customer as well as significantly 
increasing the size of its New Zealand fleet utilising EROAD 
services.

Ventia is one of the largest essential services providers in 
Australia and New Zealand, specialising in the long-term 
operation, maintenance, and management of critical public 
and private assets and infrastructure for corporate and 
government clients across a broad range of sectors.

Ventia has entered into a five-year agreement for a monthly 
subscription of EROAD’s SaaS products and intends to install 
approximately 2,500 Ehubo 2 devices in their Australian fleet 
with a further 1,500 in their New Zealand fleet. It is anticipated 
that these Ehubo units will be installed throughout the 2021 
calendar year.

FREIGHT & ROAD 
TRANSPORT

44% SERVICES & TRADE
16%
15%
25% OTHER

CONSTRUCTION & 
CIVIL ENGINEERING

STRATEGIC PRIORITIES 

FY22 FOCUS

•  Grow number connected units to 10,000 over the next 18 

months

•  Extend product offering in the Civil Engineering,  Government 
fleets, areas of driver fatigue, health & safety and vehicle 
service & maintenance

•  Establish AU based leadership team to support Enterprise and 

market development activities

•  Pursue Enterprise opportunities

•  Grow monthly run rate business in small to medium sized 

fleets

• 

Increase EROAD’s Brand awareness using targeted digital 
marketing

•  Support National Road User Charging pilots and transport 

regulatory development using telematics technology

8 Enterprise customers is defined as fleet sizes of over 150 for Australia

Australia remains a large growth opportunity for EROAD 
following the expansion of the Chain of Responsibility 
obligations in October 2018. Video telematics is seen as 
an important added service to improve Health and Safety 
outcomes. We expect further significant regulatory change over 
next 5 years with Electronic Work Diary (EWD), National eRUC 
pilot and from the review of the Heavy Vehicle National Law.

Increasingly, enterprise businesses operating across Australia 
and New Zealand see it as one market, requiring one solution. 
EROAD has 300 NZ Customers that have Trans-Tasman Fleets 
for EROAD to target. The short-medium term enterprise 
pipeline is approximately 15-20k connected vehicles.

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THE NUMBERS

The Numbers   

Revenue 
Group Revenue increased 13% from $81.2m to $91.6m 
reflecting growth in New Zealand and North America. New 
Zealand Revenue increased by 12% to $58.8m from $53.4m in 
the comparable period. The New Zealand business ended the 
year with 87,892 contracted units, adding 7,526 contracted 
units, to achieve an annual growth rate of 9% through both 
expansion into existing customer fleets and new customers. 
North America has been the most servery impacted of our 
markets from the challenging marco-economic conditions, and 
as such we only saw Revenue increase by $4.8m to $30.6m. 
During the year, North America only added 1,435 contracted 
units. Revenue in H1 FY21 also benefited from the forgiveness 
of a COVID19 government support loan in North America of 
$USD1.0m (NZD revenue increase of $1.6m). During the year 
the Australian business added 754 contracted units, reflecting 
growth in the small-to-medium business segment, to deliver 
growth of 36%. Australian Revenue increased slightly from 
$0.7m to $1.4m.

Operating Expenses 
Operating expenditure increased 13% by $6.8 million in 
line with revenue reflecting accelerated R&D operating 
expenditure and ongoing spend on company-wide initiatives 
to deliver further longer-term improvements in operating 
leverage. Operating expenditure also included a non-recurring 
increase in the doubtful debt provision of $1.5m,  relating 
to the impact of COVID-19, and a one-off  adjustment for 
superannuation costs in North America  of $1.1m.

EBITDA 
EBITDA grew $3.6m or 13% to $30.7m. In New Zealand 
continued growth into existing customer fleets, attracting new 
customers and continued high asset retention resulted in a 11% 
increase in EBITDA $38.8m. 

North American EBITDA result of $10.0m is 33%  ahead of 
the same time last year as a result of ongoing market growth 
and Recognition of the government loan forgiveness as grant 
income ($1.5m) offset to an extent by a one-off adjustment 
for superannuation costs ($1.1m) and an increased doubtful 
debt provision. ($0.4m).  Excluding these items, EBITDA for 
the second half of the year grew 59% on H1 FY21 and 30% on 
FY20. Continuing revenue growth (up 100% from FY20) and 
reduced spending as a result of COVID-19 (for example less 
marketing investment) has produced the improved EBITDA  
result of $(0.9)m for Australia.    

Depreciation & Amortisation 
Total Depreciation & Amortisation of $26.3m increased by 
$3.7m on the previous year. This increase reflects the growing 
customer base (and  related assets), the increase in our R&D 
programme and significant investment in new generation and  
business systems during FY20. 

Profit before tax 
Profit before tax increased from $1.4m in the prior year to 
$1.9m. This represents the Revenue and EBITDA growth and 
partly offset by higher depreciation and amortisation. 

Investing in new innovatitive product 
development  
As signalled, EROAD sees significant growth opportunity 
and during FY21 accelerated it investment in research and 
development during the year in order to be in a position 
to capitalise on these once uncertainty receded across the 
markets. In the year to 31 March 2021, a total of $21.3m was 
invested in research and development, of which $13.1m was 
capitalised and $8.2m of previously capitalised research 
and development was expensed/amortised. Inline with our 
expectations, the total amount invested in research and 
development represented 23% of revenue. 

Balance sheet 
Cash increased by $53.7m as a result of the placement during 
September and the free cash positive result for FY21 of $5.3m. 
Property, Plant and Equipment reduced as depreciation of 
hardware assets exceeded the value of new hardware assets 
capitalised from growth in the period. The decrease in other 
assets within current assets category is as a result of the 
combination of increase in our doubtful debt provision by an 
additional ($1.5m) in FY21 reflecting uncertainty due to the 
current economic conditions and also provision of ($1.0m) for 
inventory.

Contract Fulfilment and Customer Acquisition Assets decreased 
by $1.8m due to subdued growth during the 12 months as a 
result of COVID-19 lockdowns. Intangibles increase relates to 
the ongoing capitalisation of R&D development. Borrowings 
from long term bank loans have reduced due to scheduled 
repayments in September and March.

Free Cash Flow 
Operating cashflows benefit from a higher revenue $92m versus 
$81m and hence increased customer receipts. Investing cash out 
flows fell from $35.9 m to $22.8 m reflecting the investment in 
business systems and processes in H1 FY20 and the lower spend 
on hardware units due to lower growth in H2 FY21. Financing 
cash flows grew as result of $42m raised via placement and a 
further $11m was raised via share purchase plan.

EROAD’s track record  

FINANCIAL PERFORAMNCE TRENDS 

INCOME STATEMENT  

Revenue  

Ebitda  

Ebitda margin  

Profit/(loss) before profit  

Total comprehensive profit/(loss) after tax  

FY21

FY20

FY19

FY18

$91.6m

$30.7m

34%

$1.9m 

$1.5m

$81.2m

$27.1m

33%

$1.4m

$61.4m

$15.6m

25%

$43.8m

$10.5m

24%

$(5.1)m

$(5.9)m

$(0.3)m

$(6.0)m 

$(3.7)m 

BALANCE SHEET 

Total Current Assets 

Total Non-Current Assets 

Total Liabilities 

CASH FLOW 

$81.3

$90.7m

$67.4

$34.0m

$91.8m

$74.5m

$43.9m

$79.3m

$71.9m

$46.6m

$64.5m

$54.4m

Net cash inflow from operating activities 

$28.1m

$23.1m

$14.3m

$5.2m

Net cash outflow from investing activities 

$(22.8)

$(35.9)m

$(27.3)m

$(23.8)m

Free cash flow 

$5.3m 

$(12.8)m

$(13.0)m

$(18.6)m

FINANCIAL PERFORMANCE METRICS 

Annualised Monthly Recurring Revenue 

Future contracted income  

R&D as a % of Revenue  

Monthly Saas Average Revenue Per Unit 

Asset retention rate 

Cost to acquire customers as a % of revenue 

OPERATING METRICS  

Total contracted units 

MYEROAD CLARITY 

EROAD Day Logbook (driver subscriptions)

Inspect 

EROAD Where 

Etrack Wired 

$88.4m

$141.9m

23%

$58.30

94.9%

13%

$84.0m

$134.4m

19%

$58.4

95.2%

20%

$66.5m

$117.4m

22%

$55.1

94.4%

22%

n/a

$100.5m

22%

$54.3

95.8%

24%

126,203

116,488

96,390

77,600

1,054

6,655

10,490

6,450 

2,474

n/a

n/a

6,995

n/a 

1,336

n/a

n/a

3,509

n/a

n/a

n/a

n/a

1,909

n/a 

n/a

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THE NUMBERS

The Financial Metrics  
we measure ourselves by

LEADING GROWTH INDICATORS

ANNUALISED MONTHLY RECURRING REVENUE ($M)

100.0

 80.0

 60.0

 40.0

 20.0

 -

88.4

86.0

66.5

FY19

FY20

FY21

FUTURE CONTRACTED INCOME ($M)

RESEARCH AND DEVELOPMENT AS % OF REVENUE

MONTHLY SAAS AVERAGE REVENUE PER UNIT ($)

ENTERPRISE VALUE FROM 
EXISTING CUSTOMER BASE

 150.0

 125.0

 100.0

75.0

 50.0

 25.0

 -

141.9  

134.4 

117.4 

100.5 

FY18

FY19

FY20

FY21

30

25

20

15

10

5

-

22

12

10

22

14

8

19

12

7

23

14

9

FY18

FY19

FY20

FY21

R&D Expensed

R&D Capitalised

Total R&D

70

60

50

40

 30

 20

 10

 -

54.32 

55.08

58.38

58.30

FY18

FY19

FY20

FY21

AMRR increase reflects growth in recurring revenues  
from new units and SaaS ARPU, partly offset by an FX  
impact of $4.5m in FY21.

FCI increased with new incremental contracted units  
added and renewals, partially offset by recognition of  
revenues for new and existing contracts. 

Exchange rate negative impact for FY21 was $9.3m

R&D as % of Revenue As previously signaled, expect to 
spend 24-27% as investment for growth accelerates over 
FY22.  

Monthly SaaS ARPU has remained stable over past 12 months. 
- Plan and hardware upgrades and addition of EROAD Where  
- Stronger USD vs NZD reduced ARPU growth ($0.65) from FY20 

PROFITABILITY

COST TO ACQUIRE CUSTOMERS AS % OF REVENUE

COST TO SERVICE AND SUPPORT AS % OF REVENUE

COST TO AQUIRE PER UNIT

ASSET RETENTION RATE (%)

100

95.8

94.4

95.2

94.9

25

20

15

10

5

-

24

18

6

22

17

5

20

15

4

FY18

FY19

FY20

13

11

2

FY21

6

5

4

3

2

1

-

5.0

4.6

4.6

4.7

FY18

FY19

FY20

FY21

CAC Expensed

CAC Capitalised

Total CAC

CTS

$1,400

$1,200

$1,000

$800

$600

$400

$200

$0

$1,236  

$791 

FY20

FY21

80

60

40

20

-

FY18

FY19

FY20

FY21

CAC as a % of revenue would be expected to trend  
downwards over  time as revenue grows, reductions  
will be partly offset by investment in  CAC ahead of 
revenues in Australia.

CTS has remained within 4-5% of revenue range. 
CTS will improve over time as scale and leverage increases.

The cost to acquire per unit has increased year on year 
reflecting  the lower number of units added.  

Asset Retention Rate has remained stable and continues to 
be a focus  through renewal programmes in key markets.

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OUR TEAM

Our Team

83% 

EROADER’S RECOMMEND EROAD  
AS A GREAT PLACE TO WORK 
(FY2O: 89%)

83% 

EROADERS FEEL THAT EROAD IS AN  
INCLUSIVE WORKPLACE WHERE  
THEY CAN BE THEMSELVES 
(FY2O: 89%)

We lead  
with Safety 

We always put the safety and 
wellbeing of EROADers first, and through our 
products we provide the tools for our customers  
to create safer workplaces too. 

We operate  
with Trust 

We recognise the impact our behaviours and 
actions may have on others. You can rely on us 
to do what we say we’ll do. 

We act  
with Integrity 

We get things done the “right” way, with ethics, 
integrity, and positive intention that builds 
relationships. 

We perform  
as one Team 

We work together to achieve our goals.  

We celebrate 
Innovation  

We learn and adapt quickly. We embrace new ideas 
and concepts and we make time to innovate. 

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OUR TEAM

EROAD Awards 

Recognition is peer-led through the quarterly EROAD Awards 
program and online rewards platform, Bonusly. 

In FY21 the team introduced a new giving component to the 
EROAD Awards. Q1 and Q3 individual award winners got to 
donate to a charity of their choice. Q2 and Q4 winners got to 
buy gear for the office (or a gift for remote teams) to add to 
the EROAD experience. 

211

NOMINATIONS FOR EROAD AWARDS

29,515

BONUSLY RECOGNITION MESSAGES

$3,000

DONATED TO THE RED CROSS  
THROUGH EROAD AWARDS PROGRAM

$1,833

DONATIONS TO CHARITIES 
THROUGH BONUSLY REWARDS

Looking after people 
through a global pandemic 

Throughout the COVID-19 pandemic, EROAD’s priority has been 
keeping staff safe and supporting its customers. The EROAD 
team, like all organisations, were thrown into a new way of 
working. EROAD staff adapted quickly and have proved resilient 
through the challenges.

During the early days of the pandemic, over 140 EROADers 
took up a subsidised work-from-home equipment offer to help 
them work comfortably from home. All staff were also provided 
a work-from-home guide with tips which included how to work 
with kids at home and looking after your mental health. 

The North America team have been in lockdown for over a year. 
In that time they’ve also endured wild fires, civil unrest and a 
challenging year of politics. EROAD worked hard to look after 
the team with mental health talks, a Christmas gift delivered to 
their homes, virtual social events and Uber Eats vouchers. 

After a challenging year EROAD gave every employee an 
additional 3 days of paid leave over the end of year break so 
that everyone had an opportunity to take a minimum of 8 
consecutive days off work.

A ‘new normal’ 
EROAD adapted well to remote working during the pandemic 
and lockdowns in all regions. As New Zealand returned to a 
‘new normal’ the teams came back with a fresh perspective 
and working from home has become common for team 
members. With North America still mostly working from 
home, and the Australian team being remote, EROAD has 
adopted a ‘remote first’ approach to meetings, making sure to 
create an inclusive and engaging experience for all.

Working From Home Survey results  
(June 2020) 

81% of employees wanted to move to a mix of 
remote and in-office work.

41% wanted to have the flexibility to work remotely 

when they need to

90% felt they did their best work when working 

remotely

80% felt that communication across all levels of the 

company was more effective

‘Connect’ Hackathon 

52

EROADERS

24

HOURS

11

IDEAS

EROAD’s annual Hackathon is a 24 
hour innovation event that brings together 
people from across the organisation to develop 
prototype solutions for real business and customer 
problems. The Connect Hackathon in December 
2020 was one of the best yet, with the highest ever 
attendance from around the business.  The teams had 
some great ideas and EROAD’s interns also got to take 
part, helping build a number of the solutions. A huge 
‘One team’ effort. 

EROAD ANNUAL REPORT 2021MENU

EROAD ANNUAL REPORT 2021
EROAD ANNUAL REPORT 2021

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OUR TEAM

Creating energised and  
capable teams

EROAD is focused on attracting, retaining and motivating 
talent. To achieve their significant growth aspirations, EROAD 
is investing heavily in adding capability, as well as providing 
further training and development opportunities for its people.

Adding capability  
During the second half of the year, leveraging its rising 
employment brand, EROAD secured several high-profile, 
experienced talent in North America and Australia.  

Casey Ellis was appointed to the role of President, North 
America. Casey has held significant senior leadership positions 
in the Transport and Logistics sector in North America. 

Norm Ellis, who previously held the role of President, North 
America, was appointed to the newly created role of Executive 
General Manager, Enterprise, where he will lead and build out 
the company’s global capability in Enterprise sales. 

Tim Hogan was appointed as Chief Technology Officer. Tim 
has extensive experience in the technology sector and has 
held key leadership roles at major global companies.

Konrad Stempniak was appointed as General Manager, 
Australia. Konrad is an accomplished senior leader, who has 
held significant roles, most recently at Kennards Hire, across 
strategic operations, technical sales and new ventures. 

To deliver market leading products, EROAD made several 
other key in-market hires in North America. 

Jim Angel joined from Trimble as VP, Video Telematics 

Todd Wazny brings significant market experience in his role as 
VP, Strategic Partnerships and Solutions NA. 

There has also been significant internal promotions. Andrew 
Davies was promoted to General Manager for the New 
Zealand business. EROAD’s Global Operations team will play 
an increasingly significant role as we grow. To reflect this, Matt 
Dalton was promoted from EVP Global Operations to Chief 
Operating Officer.

Product development is at the forefront of EROAD’s 
growth strategy, and over FY20 the Product and Engineering 
Team was reorganised to reflect the increased focus on 
Enterprise opportunities, improve accountability and 
enhance agile practice. This brought new talent onto the team 
and provided development opportunities for over 20 existing 
team members, lifting engagement and retention outcomes. In 
addition, a Director of Quality role was created to build 
out the Quality Assurance practice and lift organisational 
quality outcomes.  

Training and Development is key to keeping our team 
energised. EROAD is committed to attracting, retaining and 
motivating top talent. The team have focused on leadership 
development, career development and enhancing digital 
training options: 

Leadership Development

•  New management 101 training program for new managers 

•  Leadership Boost sessions during lockdown helped 

leaders refresh some of the training they’d been through 
before 

•  Continued to roll out the EROAD Leadership Program which 
started in 2019, taking leaders on a bespoke journey with 
psychometric testing, one-on-one coaching and face-to-face 
workshops. 

Career development

•  Career Pathways launched for Engineering to support people 

in developing and growing with the company. 

•  Career Pathways are being developed for customer facing 

teams 

Digital training 

•  Online annual compliance training modules replaced in-person 

sessions 

Attracting and welcoming  
new talent 

EROAD’s growth plans have led to a significant surge in 
hiring across key strategic areas of the business. The focus in 
FY21 was to improve how we attract and welcome new talent 
to the team.

•  Open Day  

To build employment brand, EROAD held it’s Inaugural Open 
Day in February. Sharing the EROAD story and demonstrating 
why it has a highly desirable culture, characterised by inclusivity, 
learning and high performance to some 60 attendees.  

•  Welcome Day  

Made ‘welcome to eroad’ session fully virtual. Sessions allow 
new starters to meet the executive and now focus on building 
connections rather than providing lots of information. The new 
approach has received extremely positive feedback on all sides 
and particularly from remote team members.

•  Onboarding  

A new digital approach saw EROAD move their onboarding to 
a Learning Management System to guide new starters in their 
first weeks. This has simplified and made the onboarding 
process easier and more engaging.

• 

Intern Program  
The program attracted over 300 applicants in FY21. 
The 8 interns who joined had an incredible experience. EROAD 
prides itself on providing a rich experience for interns, giving 
them hands on experience of our products. 

•  Scholarship  

$5,000 scholarship awarded to a Software Engineering student 
at The University of Auckland in 2020. 

 
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OUR TEAM

Diversity, 
inclusion and 
belonging 

EROAD encourages and values the 
unique experiences, skills and background 
of its people. It continually strives to 
create an inclusive, collaborative and 
open space where people feel safe 
and empowered to think differently to 
create new ideas. Helping bravely solve 
customers’ complex problems.  

WISH Committee 
The WISH (Wellbeing, Inclusion, Social & Health & Safety) 
committee is a group of volunteers from across EROAD. The 
committee organise events and activities throughout the year, 
providing opportunities for the team to connect, celebrate and 
have some fun. Closely tied to EROAD’s values, the committee 
brings people together as one team.  

At it’s core, the committee is focused on creating a culture of 
inclusion and a sense of belonging. EROAD is extremely proud 
of it’s diverse team, and the activities organised by the WISH 
committee create an opportunity to celebrate that diversity. 
Yoga, boxing fitness, walkathon competition, hackathon, 
culture day, mental health talks, international women’s day – 
these are just some of the events organised by the committee 
and reflect the range of passions and backgrounds at EROAD. 

In 2020, the committee worked hard to make sure remote 
teams, and particularly the North American and Australian 
teams, felt included. They made their events virtual, provided 
Uber Eats vouchers for remote workers and created online 
competitions and prize draws.  

Culture Day is an annual EROAD event. It’s an opportunity to celebrate what makes EROADers unique and 
to learn more about one other. Due to lockdown restrictions, the annual celebration went virtual this year.

EROAD is proud of its diversity. It hires and promotes people 
based on talent, not ethnicity or gender. The team and 
managers represent a mix of males and females of all ages, 
from over 30 countries around the world and this contributes 
to the inclusive culture EROAD has built. 

EROAD compares favourably to both the transport and 
technology sectors for female representation at both 
non-manager and manager levels. EROAD is committed 
to encouraging and supporting female leaders. Flexible 
work arrangements, parental leave and leadership 
development opportunities are just some of the ways that 
EROAD supports its female employees. 

Female Percentage 
of our Team

38%

FEMALE

EROAD

People Leaders Diversity 

35%

FEMALE

EROAD

IT 
SECTOR

24%

FEMALE

EROADers come  
from over 

30

DIFFERENT  
COUNTRIES

Age Split

4%

18-24

33%

25-34

32%

35-44

20%

45-54

11%

55-64

0%

65+

EROAD ANNUAL REPORT 2021SECTION TITLEMENU

EROAD ANNUAL REPORT 2021

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OUR TEAM

Senior Leadership Team 

STEVEN NEWMAN 
Executive Director/CEO 

Steven has been the CEO and member of the EROAD Board since 2007. EROAD is Steven’s third 
start up. Navman his previous start up, he grew into four business units, operating across 40 
countries with global sales in excess of $500m.

ALEX BALL 
Chief Financial Officer 

Alex’s career has spanned five countries, delivering a broad range of commercial, financial 
and governance capabilities gained across corporate management, board directorship and 
professional services. Alex joined EROAD in January 2019, with his previous roles including 
CFO at Transpower, TelstraClear, and Vector. He also has a background in engineering. His 
qualifications include BEng (Hons), ACGI, FCA (ICAEW), CA (CAANZ), SA Fin, MInstD (NZ) 
and AF IMNZ.

MATT DALTON 
Chief Operating Officer 

Matt is responsible for the global operations of EROAD, focusing on execution of strategy. With 
a strong technical delivery background, prior roles include CTO and Director of Professional 
Services along with a solid engineering foundation. Matt has global delivery experience across 
multi region teams and customers; working throughout NZ, Australia, USA and UK. Graduated 
from University of Auckland with a BCom.

CASEY ELLIS 
President, North America 

Casey joined EROAD in March 2021. He brings over 15 years of experience in the transportation 
industry, holding multiple senior leadership positions. His previous roles include COO at 
UniGroup Inc., a $1.7 billion transportation company, where he designed and implemented 
strategic marketing and technology initiatives to transform the company to an agile, customer 
focused organization. Most recently, as President and COO at Armstrong Relocation, Casey 
modernized and diversified their service offering, in a rapidly evolving marketplace to 
successfully capture additional share of a robust growth market. 

NORM ELLIS 
Executive General Manager, Enterprise 

Norm has nearly 40 years experience in both transport and telematics. Norm joined EROAD in 
2017, after being the COO at ID Systems, Inc., a producer of wireless asset management systems 
for the transport sector. Prior to that he led sales, services and marketing for Qualcomm/
Omnitracs in the US and Canada for nearly 17 years. He is a graduate of the Executive 
Leadership programs from both Stanford Business School and University of Virginia Darden 
School of Business and he holds a BA in Economics and Business Management.

MARK HEINE
EVP General Counsel and Company Secretary 

As General Counsel and Company Secretary, Mark works with the team on all aspects of 
company and product legal compliance and data privacy. His legal and risk experience 
encompasses IP, technology, privacy, disputes, mergers & acquisitions, corporate governance 
as well as competition and consumer law. Mark joined EROAD in 2015 after a legal career 
working at Bell Gully, as a Barrister in Auckland and Allens in Sydney. He graduated from Otago 
University with an LLB / BA.

MIKE SWEET 
Chief People Officer 

Mike joined EROAD in January 2019 to develop our people and culture. His global HR work 
experience includes NZ, Australia, the UK and the USA. He’s worked in global bluechip 
companies and successfully scaled start-ups. Mike’s most recent role was General Manager HR 
at Spark. He holds a BA BCA, MHRINZ, GPHR, and PHR-CA.

SARAH THOMPSON 
Chief Product Officer 

Sarah joined EROAD in March 2019 to oversee our product research and development. She brings 
a wealth of experience to this global role that includes creating and executing product strategy 
across a range software companies, delivering to health and large insurance organisations 
globally. Sarah joined from a similar role at Orion Health. She holds a B(Des) and has attended the 
Executive Leadership Development program at Stanford Business School. 

TONY WARWOOD 
Executive General Manager, ANZ Business 

Tony leads our New Zealand and Australian business. Tony joined EROAD with our first 
customers back in 2009. A qualified mechanic, he brings first-hand experience of the challenges 
our customers face, given his foundational career included being a heavy vehicle mechanic and 
fleet manager

TIM HOGAN 
Chief Technology Officer 

Tim joined EROAD in December 2020 to lead our technology function. He has extensive 
experience in the technology sector and has held key leadership roles at major global 
companies including Warner Bros. and TiVo. He has previously launched and localised 
technology services in 11 markets around the world.

BILLY MILLER 
GM, Ventures & Insights 

Billy joined EROAD in September 2020 and is leading EROAD’s Ventures & Insights business, 
driving the growth of the business through innovation, partnerships and data. Billy has held 
a number of senior leadership roles in New Zealand and UK, across Government, Financial 
Services and Transport.  He was responsible for leading the digital, data & analytics strategy 
at Australasia’s leading insurance company. Growing their online platform by over 200% in 18 
months to become the leading way that customers interact with the company.

NINA ELTER
SVP, Global Market Development 

Nina’s career spans more than 20 years working in the technology, trucking, tolling and fuel card 
sectors across Europe, the Americas and Australasia.

At EROAD, Nina leads the team responsible for finding and evaluating new opportunities on 
the global landscape that enable safer and sustainable roads for all. Nina is the secretary of the 
MBUFA Advisory Committee, member of the Eastern Transportation Coalition’s MBUF steering 
committee and an active member of several other transportation associations and committees. 
She is a member of the board of the International Road Federation (IRF global) and Chairs the 
IRF committee on Road User Charging.

SECTION TITLEEROAD ANNUAL REPORT 2021MENU

EROAD ANNUAL REPORT 2021

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OUR TEAM

EROAD Board

GRAHAM STUART

BARRY EINSIG

TONY GIBSON

SUSAN PATERSON

STEVEN NEWMAN

Chairman, Independent Director, Auckland

Independent Director, Pennsylvania 

Independent Director, Auckland 

Independent Director, Auckland

Executive Director / CEO, Auckland

Appointed: January 2018, Chairman from 
August 2018

Board Committees: Finance, Risk and Au-
dit, Remuneration, Talent and Nomination 

Graham was previously CEO of Sealord 
Group, CFO then Director of Strategy & 
Growth at Fonterra and has had extensive 
business experience in South East Asia, Eu-
rope, the UK and Latin America.

Appointed: January 2020

Appointed: October 2009

Appointed:  March 2019

Appointed:  October 2007 

Board Committees: Remuneration, Talent 
and Nomination 

Located in Pennsylvania, Barry brings 
considerable transport knowledge of the 
North American market as well as global 
automated and connected vehicle expertise. 
He is currently a principal at CAVita, has 
held other directorships within the trans-
port industry and has advised Singapore’s 
Ministry of Transportation on their Highly 
Automated Vehicle Program. In addition, Mr 
Einsig has reviewed work undertaken by the 
Transportation Research Board and created 
patent-approved technology used in Public 
Safety Networks.

Board Committees: Remuneration, 
Talent and Nomination (Chairman) and 
Finance, Risk and Audit Committee

Tony is the Chief Executive of Ports of 
Auckland and one of New Zealand’s 
most experienced transport profes-
sionals. He has worked in various senior 
management roles in Africa, Asia and 
Europe. In 2008 the Minister of Trans-
port appointed him to the Road User 
Review Group. Tony joined the Board in 
October 2009.

Board Committees: Finance, Risk and Audit 
(Chair) and Remuneration, Talent and Nom-
ination Committee

Susan is an appointed Officer of New Zealand 
Order of Merit (services to governance) and 
currently chairs Steel and Tube Holdings and 
IT consultancy Theta Systems and is a mem-
ber of the boards of the Electricity Authority, 
RBNZ, Arvida Group, Goodman New Zealand 
and Les Mills Holdings.

Board Committees: Nil 
Steven has been EROAD’s Chief Executive 
and a member of the EROAD Board since 
2007. He co-founded Navman where his 
COO and CEO roles provided the opportu-
nity for him to establish Navman as a lead-
ing international brand delivering annual 
sales in excess of NZ $500m

To view Board Committee Charters and Corporate Governance Policies please visit  https://www.eroadglobal.com/global/investors/

EROAD ANNUAL REPORT 2021MENU

< P. 79

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Financial 
Statements

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021 

Notes

3

4

14

16

7

8

9

Revenue

Operating expenses

Earnings before interest, taxation, depreciation  
and amortisation 

Depreciation of property, plant and equipment

Amortisation of intangible assets

Amortisation of contract and customer  
acquisition assets

Earnings before interest and taxation

Finance income

Finance expense

Net financing costs

Profit before tax 

Income tax benefit/(expense)

Profit after tax for the period attributable  
to the shareholders

OTHER COMPREHENSIVE INCOME

Foreign currency translation differences for foreign 
operations

Total comprehensive profit /(loss) for the period

Profit per share - basic (cents) 

Profit per share - diluted (cents) 

 2021 

$M's

 91.6 

(60.9)

 30.7 

(9.6)

(9.9)

(6.8)

4.4

0.2

(2.7)

(2.5)

1.9

0.1

2.0

(0.5)

1.5

2.71

2.71

 2020 

$M’s

81.2

(54.1)

27.1

(8.6)

(7.5)

 (6.5)

4.5

0.0

(3.1)

(3.1)

1.4

(0.4)

1.0

(1.3)

(0.3)

1.55

1.53

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes. 

FINANCIAL STATEMENTSEROAD ANNUAL REPORT 2021 
 
 
 
 
 
MENU

< P. 81

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
AS AT 31 MARCH 2021

CURRENT ASSETS

Cash and cash equivalents

Restricted bank accounts

Trade and other receivables

Contract fulfilment costs

Costs to obtain contracts

Total Current Assets

NON-CURRENT ASSETS

Property, plant and equipment

Intangible assets

Contract fulfilment costs

Costs to obtain contracts

Deferred tax assets

Total Non-Current Assets

Notes

12

12

13

7

7

14

16

7

7

10

 2021 

$M's

 57.1 

 10.5 

 8.2 

 3.0 

 2.5 

 81.3 

 34.7 

 45.3 

 2.4 

 1.0 

7.3

 90.7 

 2020

$M’s

 3.4 

 14.0 

 10.7 

 3.2 

 2.7 

 34.0 

 37.4 

 42.1 

 2.7 

 2.1 

 7.5 

 91.8 

CURRENT LIABILITIES

Borrowings

Trade payables and accruals

Payables to transport agencies

Contract liabilities

Lease liabilities

Employee entitlements

Total Current Liabilities

NON-CURRENT LIABILITIES

Borrowings

Contract liabilities

Lease liabilities

Deferred tax liabilities

Total Non-Current Liabilities

TOTAL LIABILITIES

TOTAL ASSETS

 172.0

 125.8 

NET ASSETS

EQUITY

Share capital

Translation reserve

Retained Earnings

TOTAL SHAREHOLDERS' EQUITY

Notes

 2021 

$M's

 2020

$M’s

18

17

12

19

15

18

19

15

10

11

 6.4 

 7.8 

 10.5 

 3.9 

 1.0 

 2.3 

 31.9 

 28.6 

 2.7 

 4.2 

-

35.5

67.4

 104.6 

 131.7 

 (3.4)

 (23.7)

 104.6 

 2.2 

 8.2 

 13.9 

 3.6 

 1.0 

 1.8 

 30.7 

 33.6 

 4.6 

 5.3 

 0.3 

 43.8 

 74.5 

 51.3 

 80.7 

 (2.9)

 (26.5)

 51.3 

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 

Chairman, 28 May 2021

Chair of the Finance, Risk and Audit Committee,, 28 May 2021

FINANCIAL STATEMENTSEROAD ANNUAL REPORT 2021 
MENU

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021

Share  
Capital 

$M’s

Retained 
Earnings 

Translation 
Reserve

$M’s

$M’s

Total

$M’s

Notes

Balance at 31 March 2020

 80.7 

 (26.5)

 (2.9)

 51.3 

Profit after tax for the period

Other comprehensive income

Total comprehensive income for the 
period, net of tax

Equity settled share-based payments

 -   

 -   

 -   

 -   

Share capital issued

11

 51.0 

 2.0

 -   

2.0

 -   

 (0.5)

 (0.5)

Balance at 31 March 2021

 131.7 

 (23.7)

 (3.4)

 104.6 

Balance at 31 March 2019

 80.6 

 (27.7)

 (1.6)

 51.3 

Profit after tax for the period

Other comprehensive income

Total comprehensive loss for the 
period, net of tax

Equity settled share-based payments

Share capital issued

11

 -   

 -   

 -   

 0.1 

 -   

 1.0 

 -   

 1.0 

 -   

 (1.3)

 (1.3)

 1.0 

 (1.3)

 (0.3)

 0.2 

 -   

 0.3 

 -   

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers

Payments to suppliers and employees

Interest paid

Net cash inflow from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for investment in property, plant & equipment

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts from bank loans

Repayments of bank loans

Payment of lease liability

Receipts from issue of equity

Payments for costs of raising equity

Net cash inflow from financing activities

Notes

14

16

7

7

18

18

15

 2021 

$M’s

92.3

(61.7)

(2.5)

 28.1

(4.7)

(13.1)

(3.5)

(1.5)

 (22.8)

1.7

(2.5)

(1.6)

52.9

(2.1)

 48.4 

 2020

$M’s

79.2

(53.4)

(2.7)

 23.1 

(11.6)

(16.5)

(4.4)

(3.4)

 (35.9)

17.7

(16.5)

(1.1)

-

-

 0.1 

Net increase/(decrease) in cash held

 53.7 

 (12.7)

Cash at beginning of the financial period

Closing cash and cash equivalents 

12

 3.4 

57.1

 16.1 

 3.4 

2.0

 (0.5)

1.5

Payments for investment in intangible assets

 0.8 

 -   

 -   

 -   

0.8

 51.0 

Payments for investment in contract fulfilment assets

Payments for investment in customer acquisition assets

Net cash outflow from investing activities

Balance at 31 March 2020

 80.7 

 (26.5)

 (2.9)

 51.3 

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 

FINANCIAL STATEMENTSEROAD ANNUAL REPORT 2021 
 
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RECONCILIATION OF OPERATING CASH FLOWS WITH REPORTED  
PROFIT AFTER TAX
FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021

Profit after tax for the year attributable to the 
shareholders

Notes

ADD/(LESS) NON-CASH ITEMS

Tax asset recognised

Depreciation and amortisation

Other non-cash expenses/(income)

Movements in other working capital items

Decrease/(increase) in trade and other receivables

Increase/(decrease) in contract liabilities

Increase/(decrease) in trade payables, interest 
payable and accruals

Net cash from operating activities

 2021 

$M’s

2.0

(0.1)

26.3

(1.1)

25.1

2.4

(1.6)

 0.2 

1.0

28.1

 2020

$M’s

1.0

-

22.5

(1.0)

21.5

(0.2)

(1.8)

2.6

0.6

23.1

NOTE 1 REPORTING ENTITY AND STATUTORY BASE

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 and the financial statements have been prepared in accordance with 
the requirements of that Act and the Financial Reporting Act 2013. The consolidated financial statements comprise EROAD Limited 
and its subsidiaries (the “Group”). The Group provides electronic on-board units and software as a service to the transport industry. 

The financial statements of the Group for the year ended 31 March 2021 were authorised for issue in accordance with resolution of 
the directors on 28 May 2021. 

The accounting policies below have been applied consistently to all periods presented in these financial statements.

NOTE 2 BASIS OF ACCOUNTING

(a) Basis of preparation
The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ 
GAAP). The Group is a for-profit entity for the purposes of complying with NZ GAAP. The financial statements comply with New 
Zealand equivalents to International Financial Reporting Standards (NZ IFRS) for Tier 1 entities, other New Zealand accounting 
standards, and authoritative notices that are applicable to entities that apply NZ IFRS. The financial statements also comply with 
International Financial Reporting Standards.

(b) Changes in accounting policies 
The accounting policies and disclosures adopted are consistent with those of the previous year. Where applicable, certain 
comparatives have been reclassified to comply with the accounting presentation adopted in the current year. 

(c) Going concern  
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 31 March 2021 of $57.1M and bank borrowing facility of $57.5M of which $21.9M was undrawn as at 31 March 
2021 after including borrowing costs of $0.6M. This provides sufficient level  of liquidity to help support the business for at least 
the next 12 months;                                                                                                                                          

 - The Future Contracted Income of $141.9M provides a degree of certainty of forecast revenue; and                                                       

 - The directors have made due enquiry into the appropriateness of the assumptions underlying the budgetary forecasts.  

(d) Basis of measurement

The financial statements are prepared on the historical cost basis, except for certain financial instruments carried at fair value.

(e) 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 EROAD Limited is New Zealand dollars, EROAD Inc is US dollars and EROAD Pty 
Limited is Australian dollars.

(f) 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  
1 April 2021. The Group does not expect any of these to have a significant impact on the Group’s consolidated financial statements.  
The Group has not adopted, and currently does not anticipate adopting, any standards prior to their effective dates.

(g) 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, 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
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NOTE 2 BASIS OF ACCOUNTING (CONTINUED)

NOTE 3 REVENUE

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 :                                                                                           

 - Recognition of deferred tax assets (refer to Note 10)
 - Impairment testing – key assumptions underlying recoverable amounts, including recoverability of development costs  

(refer to Note 16)

 - The estimated useful life of hardware assets (refer Note 14)
 - Assessment of recoverability of trade receivables (refer Note 13)
 - Defining the point at which development activity meets capitalised criteria (refer Note 16)

Impact of COVID-19 
On 11 March 2020 the World Health Organisation declared a global pandemic as a result of the outbreak and spread of COVID-19.  
Following this, in each of EROAD’s markets of New Zealand, the United States and Australia, lockdowns of varying severity were 
introduced.  These lockdowns continued in these markets from late March and while some lockdown restrictions have eased in each 
of the markets, a range of preventive measures still remain such that each of the markets has yet to return to the level of economic 
trading conditions prevalent prior to the COVID-19 crisis.  

Following the lockdowns being initiated EROAD was designated an essential service in each of its three markets and remained 
operational under its business continuity plan.  Despite this designation, EROAD still experienced a reduction in customer demand 
for new or replacement units and services, aside from those customers who themselves were designated as essential services.  
Accordingly, each of EROAD’s markets were impacted differently due to the differences in lockdown conditions, as well as the 
differing proportion of essential services customers in its total customer base. 

An assessment of the impact of COVID-19 on the EROAD statement of financial position is set out below, based on information 
available at the time of preparing these financial statements:

Doubtful debts - COVID-19 Provisions 
EROAD has performed an assessment of estimated credit losses not yet identified but driven by the increase in credit default risk 
for its customers and provided for these based on a risk weighting. The criteria for the risk weightings includes:

•  whether the customer is an essential service;

Revenue from contracts with customers

Software as a Service (SaaS) revenue

Other   

Transaction fee revenue 

Grant revenue

Other revenue

Total Revenues

2021

$M’s

 85.0 

2.6

2.6

1.4

91.6

2020

$M’s

 76.3 

 2.4 

 0.9 

 1.6 

 81.2 

Set out above is the disaggregation of the Group’s revenue from contracts with customers. The disaggregation reflects the nature, 
amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Specifically, software as a service 
(SaaS) revenue represents revenue earned from customer contracts for the sale or rental of hardware, installation services and 
provision of software services. Transaction fee revenue relates to the collection of Road User Charges (RUC) fees. 

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 31 March are expected to be 
recognised by EROAD based on the time bands disclosed below. 

Software as a Service (SaaS) revenue

No later than one year

Later than one year, no later than five years

2021

$M’s

 72.3 

 69.6 

 141.9 

2020

$M’s

 64.1 

 70.4 

 134.5 

•  which industry the customer belongs to, given EROAD’s vehicular movement data has been analysed to assess the impact of 

Total price allocated to remaining performance obligations

COVID-19 lockdown by industry to determine the correlated impact on customers’ revenue generating activity; and

•  EROAD’s understanding and experience with the customer.  

EROAD has recorded additional estimated credit loss provisions to account for the estimated financial impact of any future defaults 
which is based on: 

 - which industry the customer belongs to, and the impact of COVID-19 on that industry (using both payment analysis and the 

vehicular movement data that has been analysed to gain a view on the impact of COVID-19 on the customers’ revenue generating 
activity);

 - EROAD’s understanding and experience with the customer; and

 - Ensuring EROAD has recorded sufficient credit loss provisions to account for the estimated financial impact of any future defaults

The Group has recorded the following expected credit loss in the 31 March 2021 financial results which includes consideration of the 
impact of COVID-19: 

Area

Recognition in Statement of Comprehensive Income

Amount ($M)

Doubtful Debts

Operating Expenses

1.5

Government Grants - COVID-19 
On 25 March 2020, the US Government approved Coronavirus Aid, Relief, and Economic Security Act (CARES) to provide 
assistance to individuals, families and businesses affected by COVID-19. This included provision of loans under the Paycheck 
Protection Programme which can qualify for forgiveness subject to fulfilment of certain conditions. EROAD received funding under 
this programme during the reported period and has met the conditions for forgiveness. As a result, as at 31 March 2021, EROAD has 
recognised government grant revenue of $1.6m. 

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 above aligns with the 
Future Contracted Income reported by the Group.

Software as a service revenue 
The Group has determined EROAD’s customers do not have the right to direct the use of EROAD’s asset (Ehubo) 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.

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. As a result there is a financing component which the Group 
recognises as a finance cost when consideration is received in advance.

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. 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 3 REVENUE (CONTINUED)

NOTE 5 SEGMENTAL NOTE (CONTINUED)

Reportable segment information
Information related to each reportable segment is set out below. Segment result represents Earnings before Interest, Taxation, 
Depreciation & Amortisation (EBITDA), which is the measure reported to the chief operating decision maker. 

Corporate & 
Development

North America

 New Zealand

Australia 

2021

$M’s

2020

$M’s

2021

$M’s

2020

$M’s

2021

$M’s

2020

$M’s

2021

$M’s

2020

$M’s

0.3

 -   

 24.8

 25.1 

 -   

 -   

 17.7 

 17.7 

 27.2 

 24.8 

 56.5 

 50.8 

 -   

 3.4 

 -   

 1.0 

 2.6 

 0.7 

 2.4 

 0.2 

 30.6 

 25.8 

 59.8 

 53.4

 1.1 

 -   

 0.3 

 1.4 

 0.7 

 -   

 0.0 

 0.7 

Revenue

Software as a Service 
(SaaS) revenue

Transaction fee revenue 

Other revenue ₁

Earnings before interest, 

taxation, depreciation & 

 (17.5)

 (14.0)

 10.0 

 7.5 

 38.8 

 34.9 

 (0.9)

 (1.3)

amortisation

Total assets

Depreciation of 

property, plant & 

equipment

Amortisation of 
intangible assets

Amortisation of contract 
and customer acquisition 
assets

 103.9

 79.3 

 27.1 

 23.1 

 39.7 

 42.3 

 3.0 

 2.7 

 (1.1)

 (1.1)

 (4.7)

 (4.2)

 (4.8)

 (4.7)

 (0.1)

 (0.1)

 (9.9)

 (7.5)

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 (1.8)

 (1.8)

 (4.9)

 (4.6)

 (0.1)

 (0.1)

₁ Revenue from Corporate & Development Markets includes R&D and Covid Grant Income of $2.6M (2020: $1.4M).

As a result, the installation service is considered as part of the single performance obligation; referred to as Software as a Service 
(SaaS) revenue, which includes the software service and hardware sale or rental for which the customer simultaneously receives 
and consumes the benefit of the service. Where installation revenue is received in advance of satisfying the performance 
obligation a contract liability is recognised. The contract liability 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 recognises as a 
finance cost when consideration is received in advance.

Transaction fees 
The Group acts as an agent for transport authorities in the market that it 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.

NOTE 4 EXPENSES

Notes

6

Personnel expenses - net of capitalised employee 
remuneration

Administrative and other operating expenses

SaaS platform costs

Directors fees

Auditor's remuneration - KPMG

Other assurance services - KPMG

Tax compliance and advisory services - KPMG

Total operating expenses

2021

$M’s

 29.7 

 20.5

 9.8 

 0.4 

 0.3 

 0.1 

 0.2

60.9

2020

$M’s

 26.3 

 18.3 

 8.6 

 0.4 

 0.2 

 0.1 

 0.2 

54.1

Other assurance services includes half year review, NZTA reasonable assurance and Callaghan grant review. 
During the year the costs expensed for Research and Development was $8.2M (2020: $6.0M). 

NOTE 5 SEGMENTAL NOTE

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 . 

The Group has four segments as described below, which are the Group’s strategic divisions. The strategic divisions offer different 
services and are managed separately because they require different technology, services and marketing strategies. For each 
strategic division, the Group’s CEO (the chief operating decision maker) reviews internal management reports. The following 
summary describes the operations in each of the Group’s segments.

EROAD reports selected financial information segmented by geographic location for operating companies and corporate and 
development costs.

•  Corporate & Development:  Corporate head office costs and R&D activities for development of new and existing products 

and services

•  North America: Operating companies serving customers in North America
•  Australia: Operating companies serving customers in Australia 
•  New Zealand: Operating companies serving customers in New Zealand

Inter-segment pricing is determined on an arm’s length basis.

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NOTE 5 SEGMENTAL NOTE (CONTINUED)

NOTE 5 SEGMENTAL NOTE (CONTINUED)

Reconciliation of information on reportable segments

REVENUE

Total revenue for reportable segments

Elimination of inter-segment revenue

Consolidated Revenue

EBITDA

Total EBITDA for reportable segments

Elimination of inter-segment EBITDA

Consolidated EBITDA

DEPRECIATION

Total depreciation for reportable segments

Elimination of inter-segment depreciation

Consolidated Depreciation

TOTAL ASSETS

Total assets for reportable segments

Elimination of inter-segment balances

Consolidated Total Assets

2021

$M’s

 116.9 

 (25.3)

 91.6 

 30.4 

 0.3 

 30.7 

 (10.7)

 1.1 

 (9.6)

 173.7 

 (1.7)

 172.0 

2020

$M’s

 97.6 

 (16.4)

 81.2 

 27.0 

 -   

 27.0 

 (10.0)

 1.5 

 (8.5)

 147.4 

 (21.9)

 125.5 

Allocation of Development Assets 
Included within Total Assets are Development Assets of $36.9M (2020: $32.7m) 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. For impairment testing purposes management 
allocate the Development Assets to the cash generating units (CGUs) 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. At 31 March 2021 there was $28.5M (2020: $22.4M) of global Development 
Assets that have been allocated across CGU’s based on the contracted units. The allocation of the Development Asset to CGU’s 
within the following reportable segments for the purpose of impairment testing was as follows:

North America

New Zealand 

Australia

2021

$M’s

 13.9 

 21.6 

 1.4 

 36.9 

2020

$M’s

 14.0 

 17.2 

 1.5 

 32.7 

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 segment revenue has been based on the geographic location of 
customers and segment assets were based on the geographic location of the assets.

REVENUE

New Zealand

All foreign countries:

  USA

  Australia

Total revenue

NON-CURRENT ASSETS

New Zealand

All foreign countries:

  USA

  Australia

Total non-current assets

Non-current assets exclude financial instruments and deferred tax assets.

NOTE 6 PERSONNEL EXPENSES

Salaries and wages - excluding capitalised commission costs

Annual leave 

Performance bonus

Share-based payments

Salaries and wages capitalised to development and software assets

2021

$M’s

 61.2 

 29.3 

 1.1 

 91.6 

 70.9

 12.5 

 1.0 

 83.4 

2021

$M’s

 34.8 

 0.6 

 1.1 

 0.9 

 (7.7)

 29.7 

2020

$M’s

 54.7 

 25.8 

 0.7 

 81.2 

70.9

 17.2 

 0.9 

 89.0 

2020

$M’s

 30.7 

 0.4 

 0.7 

 0.3 

 (5.8)

 26.3 

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NOTE 7 CONTRACT FULFILMENT AND COSTS TO OBTAIN CONTRACTS

NOTE 9 INCOME TAX EXPENSE

Capitalised contract fulfilment costs
The Group capitalises incremental costs of fulfilling customer contracts, typically distribution and installation costs. Contract 
fulfilment costs are amortised evenly over the period of the contract. The majority of contracts are for 3 years and can be for a term 
of up to 5 years.

Capitalised contract acquisition costs
The Group has applied a policy of capitalising only costs that are incremental in obtaining contracts with customers, typically sales 
commissions. Contract acquisition costs are amortised evenly over the period of the contract. The majority of contracts are for 3 
years and can be for a term of up to 5 years.

The following table provides information about contract fulfilment and costs to obtain contracts with customers:

CONTRACT FULFILMENT

COSTS TO OBTAIN CONTRACTS

Opening net book value

Additions

Amortisation

Closing Net Book Value

Current 

Non-current

2021

$M’s

 5.9 

 3.4 

 (3.9)

 5.4 

 3.0 

 2.4 

2020

$M’s

 5.1 

 4.4 

 (3.6)

 5.9 

 3.2 

 2.7 

NOTE 8 FINANCE INCOME & FINANCE EXPENSES

FINANCE INCOME

Foreign exchange gains

FINANCE EXPENSES

Interest expense

Interest expense - lease liabilities

Interest expense - contract liabilities

Foreign exchange losses

Net financing costs

2021

$M’s

 4.8 

 1.6 

 (2.9)

 3.5 

 2.5 

 1.0 

2021

$M’s

 0.2 

 0.2 

(2.2)

 (0.3)

 (0.2)

 -   

 (2.7)

 (2.5)

2020

$M’s

 4.3 

 3.4 

 (2.9)

 4.8 

 2.7 

 2.1 

2020

$M’s

 -   

 0.0 

 (2.0)

 (0.4)

 (0.4)

 (0.3)

 (3.1)

 (3.1)

(a) Reconciliation of effective tax rate

Profit before income tax

Income tax using the Company's domestic tax rate of 28% 

Non-deductible expense

Utilisation of tax losses previously unrecognised

Effect of different tax rates

Income tax benefit/(expense)

(b) Current tax expense

Current year

(c) Deferred tax expense

Current year

Total

2021

$M’s

1.9

(0.5)

-

0.5

0.1

 0.1   

 -   

 -   

0.1

 0.1   

2020

$M’s

1.4

(0.4)

-

-

-

 (0.4)

-

-

 (0.4)

 (0.4)

At 31 March 2021 there were no imputation credits available to shareholders (2020: 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.

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. 

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NOTE 10 DEFERRED TAX ASSETS

NOTE 10 DEFERRED TAX ASSETS (CONTINUED)

RECOGNISED DEFERRED TAX ASSETS 

Deferred tax assets are attributable to the following:

Tax loss carry forward

Property, plant and equipment 

Intangibles

Provisions, accruals and other liabilities

Equity-settled share-based payments

Trade and other receivables, including contract assets

Lease liability

Total deferred tax asset

2021

$M’s

 10.5

0.6

 (5.9)

1.1

 0.4 

(0.7)

1.3

7.3

2020

$M’s

 9.2 

0.2

 (4.0)

 1.0 

 0.3 

 (1.0)

1.5

 7.2 

As at 31 March 2021 the Group has tax losses of $48.7m (2020: $46.5m) that are available indefinitely for offsetting against future 
taxable profits of the entity in which they arose, subject to meeting relevant tax rules. $11.2m (2020: $13.5m) of tax losses in North 
America are unrecognised due to lack of certainty of recovery. 

NOTE 11 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.

2020

Shares issued to employees

Shares issued in September 2020 equity placement

Shares issued in October 2020 equity placement

Costs of raising capital

Number of  
ordinary shares

Issue price 
$

Issued Capital 
$

68,278,772

 22,848 

 5,000 

 10,769,231 

 2,820,489 

-

81,896,340

$3.73

$5.02

$3.90

$3.90

-

80.7

 0.1 

 -   

 42.0 

 11.0 

 (2.1)

 131.7 

The movement in temporary differences has been recognised in profit or loss. Deferred tax assets have been recognised at a rates 
between 21% to 30% at which they are expected to be realised. 

2021

Movement in temporary differences during the year:

Tax loss carry forward

Property, plant and equipment

Intangibles

Provisions, accruals and other liabilities

Equity-settled share-based payments

Trade and other receivables, including contract assets

Lease liability

Total

BALANCE  
2020

Recognised  
in  profit  
or loss

Currency 
Translation

BALANCE  
2021

$M's

 9.2 

0.2

$M's

1.3

 0.1 

 (4.0)

 (1.9)

1.0

 0.3 

 (1.0)

1.5

 7.2 

 0.1

 0.1 

0.3

(0.2)

 (0.2)

$M's

 -   

 0.3 

 -   

 -   

 -   

 -   

-

 0.3 

$M's

10.5

0.6

 (5.9)

1.1

 0.4 

 (0.7)

1.3

7.3

The New Zealand tax group consists of EROAD Limited, EROAD New Zealand Limited and EROAD Financial Services Limited. 
Losses incurred within this group are transferred within the group with no compensation being recognised. Deferred tax assets 
have been recognised in respect of these items as based on the expected profitability of the New Zealand Tax group as it is 
considered that future taxable profit will be available for utilisation against the carried forward losses.           

Determining the extent to which losses will be utilised requires judgement. The group has forecast expected utilisation of tax losses. 
Key assumptions included total contracted units, revenue and expense forecasts in line with group budget and three-year forecast 
supported by a robust strategic and business planning process.  

The result of the forecasting indicate that there will be sufficient profitability within the New Zealand tax group to utilise the existing 
tax losses. Losses incurred in recent years have primarily been the result of a large investment creating the North American market. 
Whilst the business is growing in Australia, the group considers this can be achieved at a lower cost than the entry into North 
America, by leveraging our New Zealand expertise and cost and customer base. The group expect to be able to report 
significant improvements in profitability over the next three years as the business reaches a sufficiently large subscriber base 
to self-fund operating and corporate costs. Due to the cumulative subscription nature of our business model as well as certain 
operating expenses that do not scale at the same rate of unit and revenue growth, the business is expected to be able to achieve its 
forecast growth in profitability.

On 22 September 2020 EROAD issued additional 10,769,231 shares at a price of $3.90 each. A further 2,820,489 shares were 
issued on 9 October 2020 also at a price of $3.90 each. 

At 31 March 2021 there was 81,896,340 authorised and issued ordinary shares (2020: 68,278,772). 732,741 (2020: 874,557) shares are held 
in trust for employees in relation to the long-term incentive plan and are accounted for as treasury stock. 

The calculation of both basic and diluted loss per share at 31 March 2021 was based on the profit attributable to ordinary shareholders of 
$2.0M (2020: $1.0M). The weighted number of ordinary shares on 31 March 2021 was 74,366,384 (2020: 67,318,877) for basic earnings per 
share and also 74,366,384 for diluted earnings per share (2020: 68,069,248).

Other components of equity include: 

•  Translation reserve - comprises foreign currency translation differences arising from the translation of financial statements of the 

Group’s foreign subsidiaries into New Zealand dollars.

•  Retained earnings - includes all current and prior period retained profits and share-based employee remuneration. 

NOTE 12 CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND PAYABLES TO TRANSPORT AGENCIES

Cash and cash equivalents

Restricted bank accounts

2021

$M’s

 57.1 

 10.5 

 67.6 

2020

$M’s

 3.4 

 14.0 

 17.4 

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 relevant government agency.

Payables to transport agencies

 (10.5)

 (13.9)

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 13 TRADE AND OTHER RECEIVABLES

NOTE 14 PROPERTY, PLANT AND EQUIPMENT 

Trade receivables

Expected credit losses

Prepayments and other receivables 

2021

$M’s

 8.0 

 (2.6)

 5.4 

 2.8 

 8.2 

2020

$M’s

 8.6 

 (1.1)

 7.5 

 3.2 

 10.7 

In addition to the movement in the expected credit losses, the Group has written off $0.9M (2020: $0.5M) of bad debts to the statement 
of comprehensive income. 

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or 
loss. The Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead 
recognises a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on 
its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. Due to the 
short term nature of these debtors, their carrying value is assumed to approximate fair value.

(a) Credit risk 
In relation to trade receivables, it is the Group’s policy that all customers who wish to trade on terms are subject to credit verification on an 
ongoing basis with the intention of minimising bad debts. The nature of the Group’s trade receivables is represented by regular turnover of 
product and billing of customers based on the Group’s contractual payment terms. In North America, the Group requires that customers 
under a certain fleet size to purchase the hardware with an upfront payment regardless of credit verification. To measure the expected 
credit losses, trade receivables have been grouped based on customer industry risk characteristics and the days past due. The expected 
loss rates are based on recent payment profiles, historical customer behaviour, age of debt and individual customer circumstances.  

The aging of the Group’s Trade receivables at the reporting date was as follows: 

Right of 
Use Assets

Hardware 
Assets

Plant and 
equipment

Leasehold 
improvements

Motor 
vehicles

Office 

equipment Computers

$M's

$M's

$M's

$M's

$M's

$M's

$M's

Total

$M's

2021

Opening net book 
amount

 5.1 

 29.5 

 0.2 

 1.7 

 0.3 

 0.3 

 0.3 

 37.4 

Additions

-

Depreciation charge

(0.9)

4.4

(7.8)

-

-

-

-

-

(0.4)

-

-

0.2

(0.1)

-

-

0.2

(0.2)

-

-

0.3

5.1

(0.2)

(9.6)

-

-

2.1

 (0.3)

-

2.1

(0.1)

(0.2)

 4.1 

 28.0 

 0.2 

 1.3 

 0.4 

 0.3 

 0.4 

 34.7 

6.8

51.3

0.7

2.9

1.3

(2.7)

(23.3)

(0.5)

(1.6)

(0.9)

1.4

(1.1)

3.4

67.8

(3.0)

(33.1)

Net book amount

 4.1 

 28.0 

 0.2 

 1.3 

 0.4 

 0.3 

 0.4 

 34.7 

Right of 
Use Assets

Hardware 
Assets

Plant and 
equipment

Leasehold 
improvements

Motor 
vehicles

Office 

equipment Computers

$M's

$M's

$M's

$M's

$M's

$M's

$M's

Total

$M's

Depreciation 
recovered

Effect of movement 
in exchange rates

Closing net book 
amount

Cost

Accumulated 
depreciation

Not past due

Past due 1-30 days

Past due 31-60 days

Past due over 61 days

Gross

Allowance for 
doubtful debts

2021

$M’s

 3.1 

 2.3 

 0.5 

 2.1

 8.0 

2021

$M’s

( 0.2) 

 (0.4) 

 (0.2) 

 (1.8 )

 (2.6) 

Gross

2020

$M’s

 3.8 

 3.0 

 0.6 

 1.2 

 8.6 

Allowance for 
doubtful debts

2020

Opening net book 
amount 

 6.0 

 25.0 

 0.2 

 1.7 

 0.4 

 0.3 

 0.3 

 33.9 

2020

$M’s

 -   

 -   

 (0.1)

 (1.0)

 (1.1)

Additions

 -   

 10.8 

Depreciation charge

 (1.0)

 (6.7)

 0.1 

 (0.1)

 -   

 -   

 0.2 

 0.7 

 0.3 

 0.1 

 (0.3)

 (0.2)

 0.1 

 (0.1)

 0.2 

 11.6 

 (0.2)

 (8.6)

 -   

 -   

 1.7 

 2.9 

 -   

 -   

 -   

 -   

 0.7 

 0.0 

 0.0 

 (0.2)

 0.3 

 0.3 

 0.3 

 37.4 

 1.1 

 1.2 

 3.1 

 67.3 

 -   

 0.7 

 0.1 

 (0.3)

 5.1 

 29.5 

 7.1 

 51.2 

 (2.0)

 (21.7)

 (0.5)

 (1.2)

 (0.8)

 (0.9)

 (2.8)

 (29.9)

Depreciation 
recovered

Effect of movement 
in exchange rates

Closing net book 
amount

Cost

Accumulated 
depreciation

Net book amount

 5.1 

 29.5 

 0.2 

 1.7 

 0.3 

 0.3 

 0.3 

 37.4 

Included in the Hardware Assets is equipment under construction to be leased of $6.8M (2020: $7.7M). 

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.  

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 14 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) 

NOTE 15 LEASES AS A LESSEE (CONTINUED)

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.

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 

Hardware assets 

Plant and equipment 

Computer/Office equipment 

Motor vehicles 

Right of use assets 

3 to 9 years  

3 to 6 years  

3 to 11 years  

1 to 3 years   

3 to 5 years 

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. 

Impairment
Each reporting period, an assessment is performed in order to determine if there are any indicators of impairment. Refer to intangibles 
(Note 16) for further details.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, 
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental 
borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. 

Lease payments included in the measurement of the lease liability comprise the following: 

 - fixed payments, including in-substance fixed payments;

 - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement 

date;

 - amounts expected to be payable under a residual guarantee;

 - the exercise priced under a purchase option that the Group is reasonably certain to exercise;

 - lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option; and 

 - penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. 

The lease liability is measured at amortised cost using the effective interest rate method. It is remeasured when there is a change 
in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount 
expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a 
purchase, extension or termination option. 

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-
use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. 

NOTE 16 INTANGIBLE ASSETS

NOTE 15 LEASES AS A LESSEE

Lease Liabilities 

Maturity analysis - contractual undiscounted cash flows

Less than one year

One to five years

More than five years

Total undiscounted lease liabilities

Lease liabilities included in the statement of financial position

Current 

Non-current

Amounts recognised in Statement of Comprehensive Income  

Interest expense on lease liabilities

Depreciation of right of use assets

Amounts recognised in Statement of Cash Flows 

Total cash outflow for leases

2021

$M’s

 1.3 

 4.2 

 0.8 

 6.3 

 5.2 

 1.0 

 4.2 

2021

$M’s

 0.3 

0.9

2021

$M’s

 (1.6)

2020

$M’s

 1.4 

 4.9 

 1.6 

 7.9 

 6.3 

 1.0 

 5.3 

2020

$M’s

 0.4 

1.0

2020

$M’s

 (1.1) 

2021

Opening net book amount

Additions

Disposals

Amortisation charge

Closing net book amount

Cost

Accumulated amortisation

Net book amount

2020

Opening net book amount

Additions

Disposals

Amortisation charge

Closing net book amount

Cost

Accumulated amortisation

Net book amount

Development

Software

$M's

$M's

 32.7 

 12.2 

 -   

 (8.0)

 36.9 

 68.2 

 (31.3)

 36.9 

 9.4 

 0.9 

 -   

 (1.9)

 8.4 

 14.7 

 (6.3)

 8.4 

Development

Software

$M's

$M's

 29.8 

 9.6 

 -   

 (6.7)

 32.7 

 55.9 

 (23.2)

 32.7 

 3.3 

 6.9 

 -   

 (0.9)

 9.3 

 13.9 

 (4.5)

 9.4 

Total

$M's

 42.1 

 13.1 

 -   

 (9.9)

 45.3 

 82.9 

 (37.6)

 45.3 

Total

$M's

 33.1 

 16.5 

 -   

 (7.5)

 42.1 

 69.8 

 (27.7)

 42.1 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 16 INTANGIBLE ASSETS (CONTINUED)

NOTE 17 TRADE PAYABLES AND ACCRUALS

The useful lives of the Group’s Intangible Assets are assessed to be finite. Assets with finite lives are amortised over their useful lives 
and tested for impairment whenever there are indications that the assets may be impaired. Where an indicator of impairment exists 
the Group makes a formal assessment of the recoverable amount. Where the carrying value of an asset exceeds its recoverable 
amount, the asset is considered impaired and is written down to its recoverable amount. The recoverable amount is the greater of 
fair value less costs to dispose of the assets and its value in use. For the purposes of assessing impairment, assets are grouped at 
the lowest levels for which there are separately identifiable cash flows (cash-generating units).

Recoverability of development costs 
As a result of COVID-19 and the ongoing lock downs in North America and the recent unstable political environment, this 
segment has been trading behind forecast. Management consider these factors to be an indicator of impairment and therefore 
formal assessment of impairment was performed for the North American cash generating unit (CGU).

For impairment testing purposes the corporate Development & Software Assets are allocated to the CGUs based on the specific 
CGU that the asset relates to, or if the 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. The recoverable amount of the CGU that these corporate assets 
relate to was estimated based on the present value of future cash flows expected to be derived from the CGU (value in use).

Discount and terminal growth rate assumptions are outlined below. Other key assumptions for the impairment review included 
contracted unit growth and related revenue and expense forecasts in line with Group’s budget and three-year forecast. 

Sensitivity analysis was performed by increasing the discount rate to 18% and lowering the terminal growth rate to 1% at base 
case forecast cash flows. The results of both sensitivity scenarios still resulted in headroom between the recoverable amount 
of the CGU and its carrying value. The Group concluded that the recoverable amount of the CGU to be higher than its carrying 
value and therefore no impairment was considered necessary.

Discount Rate

Terminal Growth Rate

Allocated Corporate  
Development & Software Assets

Trade creditors

Sundry accruals

NOTE 18 BORROWINGS

Current borrowings

Term loans – current portion

Capital Expenditure facility

Capitalised borrowing costs

Non-current borrowings

Term loans 

North America

12%

1.5%

$M’s

 16.3 

Terms and debt repayment schedule

2021

$M’s

 4.2 

 3.6 

7.8

2021

$M’s

 5.0 

 2.0 

 (0.6)

6.4

 28.6 

28.6

2020

$M’s

 4.1 

 4.1 

8.2

2020

$M’s

 2.5 

 -   

 (0.3)

2.2

 33.6 

33.6

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 research and development 
expenditure is recognised in the statement of comprehensive income when incurred.

Capitalised development expenditure is measured at cost less accumulated amortisation and accumulated impairment losses.

Other intangible assets
Other intangibles assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated 
amortisation and accumulated impairment losses.

Subsequent expenditure
Subsequent expenditure is only capitalised when it increases the future economic benefits embodied in the specific asset to 
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in the 
statement of comprehensive income when incurred.

Amortisation
Amortisation is recognised in the statement of comprehensive income on a straight line basis over the estimated useful life of 
intangible asset. The estimated useful lives for the current and comparative periods are as follows:

Development Hardware & Platform 

7 to 15 years 

Development Products 

5 to 10 years 

Software                                          

5 to 7 years 

Term loans

Capital Expenditure facility

Capitalised borrowing costs

Nominal  
Interest

Year of 
Maturity

3.90%

3.90%

 -   

2023

2023

2023

2021

Face  
Value 
$M’s

 33.6 

 2.0 

 -   

 35.6 

2021

Carrying  
amount 
$M’s

 33.6 

 2.0 

 (0.6)

 35.0 

2020

Face  
Value 
$M’s

 36.1 

 -   

 -   

 36.1 

2020

Carrying  
amount 
$M’s

 36.1 

 -   

 (0.3)

 35.8 

Current financial year 
The Group has a syndicated debt facility with the Bank of New Zealand (BNZ) and China Construction Bank (CCB).  At 31 March 2021, 
EROAD had the following facilities in place:

$15.5M (NZD) Term Loan Facility A – to refinance existing debt. The Term Loan has a term of 36 months from the March 2020 refinance 
date, with the facility having a maturity date in March 2023. The interest rate is variable with reference the to base rate (BKBM bid rate) 
for the selected interest period plus a margin of 3.5%. EROAD may select an interest period of 1,2,3 or 6 months.  Principal payments of 
$1.25m are to be made quarterly commencing from December 2020 with the full outstanding balance payable on termination date.

$18.1M (NZD) Term Loan Facility B  – used to refinance existing debt and general corporate purposes. The Term Loan has a term of 36 
months from the March 2020 refinance date, with the facility having a maturity date in March 2023. The interest rate is variable with 
reference the to base rate (BKBM bid rate) for the selected interest period plus a margin of 3.5%. EROAD may select an interest period 
of 1,2,3 or 6 months.  This is an interest only term facility full repayment on the termination date.      

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 18 BORROWINGS (CONTINUED)

$25m Capital Expenditure Facility – to fund growth capital expenditure requirements. The Capital Expenditure Facility has a  
36 month term from the March 2020 refinance date, with the facility having a maturity date in March 2023. Drawings can be made 
on the facility in NZD or USD. The loan is a current liability as it has a roll over feature at the end of each interest period. The interest 
rate is variable with reference the to base rate (BKBM bid rate for NZD drawings and US LIBOR for USD drawings) for the selected 
interest period plus a margin of 3.5%. EROAD may select an interest period of 1,2,3 or 6 months. Interest payments are made on the 
last day of the determined interest period. In addition, a Commitment Fee of 45% of the per annum margin (1.58%) is payable on 
the undrawn balance of the facility quarterly in arrears. The full outstanding balance is payable on termination date.

$5.0m Overdraft Facilities – for general working capital purposes. This is an on demand facility with the interest rate based on the 
Market Connect Overdraft Prime Rate plus a margin of 1.5%.  

EROAD’s operating covenants to support the above facilities include Debt Service Cover Ratio, Interest Cover Ratio, Leverage Ratio and 
Obligor Assets to Group Assets. EROAD was compliant with all covenants during the period and at 31 March 2021.

The security package for the Multi-Option Credit Facility Agreement includes an all obligations cross-guarantee granted by EROAD 
Australia Pty Limited and EROAD 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 Inc and EROAD Australia 
Pty Limited in favour of the BNZ (in its capacity of Security Trustee for the banking syndicate).

NOTE 19 CONTRACT LIABILITIES

The Group enters into contracts with customers for the provision of software services over a contracted period. As stated in the 
accounting policies, this revenue is recognised over time as the customer simultaneously receives and consumes the benefit of the 
service. The Group has determined that the benefit of the services provided is consumed evenly over the period of the contract, 
and thus the performance obligations are satisfied evenly over the period. Where the Group receives a portion of the transaction 
price of a contract in advance, this is recognised as a contract liability and released over the contract period as the Group satisfies its 
performance obligations. 

Opening balance 

Amounts deferred during the period

Amount recognised in the statement of comprehensive income

Current 

Non-current

2021

$M’s

 8.2 

 4.1 

 (5.7)

 6.6 

 3.9 

 2.7 

2020

$M’s

 10.0 

 4.4 

 (6.2)

 8.2 

 3.6 

 4.6 

NOTE 20 FINANCIAL RISK MANAGEMENT

As a result of the Group’s operations and sources of finance, it is exposed to credit risk, liquidity risk and market risks which include 
foreign currency risk, commodity price risk and interest rate risk. These risks are described below.  The principles under which these 
risks are managed are set out in policy documents approved by the Board. The policy documents identify the risks and set out the 
Group’s objectives, policies and processes to measure, manage and report the risks. The policies are reviewed periodically to reflect 
changes in financial markets and the Group’s business.  

Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities are initially 
recognised when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade 
receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at 
fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a 
significant financing component is initially measured at the transaction price.

During the year, the Group entered into interest rate swaps. These swaps were entered into in order for the Group to manage its risk 
associated with interest rate fluctuations.  The interest rate swaps qualify for cash flow hedge accounting.

NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)

Classification and subsequent measurement

Financial assets
On initial recognition, a financial asset is classified as measured at amortised cost.

Financial assets - subsequent measurement and gains and losses
Financial assets at amortised cost. These assets are subsequently measured at amortised cost using the effective interest method. The 
amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in 
profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Financial liabilities 
Under the interest rate swap agreements the Group has a right to receive interest at variable rates and to pay interest at fixed rates for 
its New Zealand dollar denominated loans. Interest rate swaps are initially recognised at fair value on the date a contract is entered into 
and are subsequently measured at fair value on each reporting date. The fair values of the interest rate swaps are determined based on 
cash flows discounted to present value using current market interest rates.

Where a derivative financial instrument is designated as a hedge of the variability in cash flows of liabilities the effective part of any 
gain or loss is recognised directly in the cash flow hedge reserve within equity and the ineffective part is recognised immediately in 
the income statement. The effective portion is reclassified to the income statement when the underlying cash flows affect the income 
statement.

The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the 
reference interest rates, tenors, repricing dates and maturities and the notional amounts.

In these hedging relationships, the main sources of ineffectiveness are:

 - changes in counterparty credit risk and cross currency basis spreads which are not reflected in the change in the fair value of the 

hedged item; and 

 - differences in repricing dates between the cross currency interest rate swaps and the borrowings. 

Derecognition

Financial assets
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it 
transfers the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of 
ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks 
and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains 
either all or substantially all of the risks and rewards of the transferred asset. In theses cases, the transferred assets are not 
derecognised.

Financial liabilities
The Group derecognises a financial liability when the contractual obligations are discharged or cancelled, or expire. The Group 
also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially 
different, in which case a new financial liability based on the modified terms is recognised at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid 
(including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
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NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)

The Group holds the following financial assets and liabilities at amortised cost: 

FINANCIAL ASSETS

Cash and cash equivalents

Restricted bank account

Trade receivables

FINANCIAL LIABILITIES

Borrowings

Employee Entitlements

Lease liabilities

Trade and other payables

Payables to transport agencies

2021

2020

Amortised 
Cost 

$M’s

 57.1 

 10.5 

 8.0 

 75.6 

-

-

-

-

-

-

Other 
amortised 
cost 
$M’s

-

-

-

 -   

 35.0

 2.3 

 5.2 

 7.8 

 10.5 

 60.8

Amortised 
Cost 

$M’s

 3.4 

 14.0 

 8.6 

 26.0 

-

-

-

-

-

 -   

Other 
amortised 
cost 
$M’s

-

-

-

-

 35.8 

 1.8 

 6.3 

 8.2 

 13.9 

 66.0 

The Group’s financial assets and liabilities are disclosed in sections (b), (c) and (e) below. 

(a) Credit risk 
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual 
obligations, and it arises principally from the Group’s trade receivables from customers in the normal course of business. 

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The creditworthiness of 
a customer or counterparty is determined by a number of qualitative and quantitative factors. Qualitative factors include external 
credit ratings (where available), payment history and strategic importance of customer or counterparty. Quantitative factors include 
transaction size, net assets of customer or counterparty, and ratio analysis on liquidity, cash flow and profitability. 

The carrying amount of the Group’s financial assets represents the maximum credit exposure as summarised above.

Refer to Note 13 for an aging profile for the Group’s trade receivables at reporting date. 

(b) Liquidity risk 
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when they become due and payable. 
The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its 
liabilities when they become due and payable, under both normal and stressed conditions, without incurring unacceptable losses or 
risking damage to the Group’s reputation.  

The Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 90 days, including the 
servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, 
such as natural disasters. 

NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)

Maturities of financial liabilities 
The following table details the Group’s contractual maturities of financial liabilities, including estimated interest payments and 
excluding the impact of netting agreements, as at the reporting date. Refer to Note 18 for the maturity profiles of the Group’s 
borrowings. 

2021

NON-DERIVATIVE FINANCIAL LIABILITIES

Borrowings

Employee Entitlements

Trade and other payables

Payable to transport agencies

1 year or less

1 to 5 years Over 5 years

Total 
contractual 
cash flows

Carrying 
amount of 
liabilities

$M's

$M's

$M's

$M’s

$M’s

 8.8 

 2.3 

 7.8 

 10.5 

29.4

30.4

-

-

-

 30.4 

-

-

-

-

 -   

 39.2

 2.3 

 7.8 

 10.5 

59.8

 35.6 

 2.3 

 7.8 

 10.5 

56.2

The Group entered into an interest rate swap agreement as at 31 March 2021. Due to the inception date being the same as year end 
date the carrying amount of the derivative is nil. The swap has a maturity date of March 2023 to align with the Group’s borrowing 
facility. The contractual cash flows under this agreement is $0.0m therefore not included in the above table.

1 year or less

1 to 5 years Over 5 years

Total 
contractual 
cash flows

Carrying 
amount of 
liabilities

$M's

$M's

$M's

$M’s

$M’s

2020

NON-DERIVATIVE FINANCIAL LIABILITIES

Borrowings

Employee Entitlements

Trade and other payables

Payable to transport agencies

 2.5 

 1.8 

 8.2 

 13.9 

26.4

 33.3 

 -   

 -   

 -   

 33.3 

 -   

 -   

 -   

 -   

 -   

 35.8 

 1.8 

 8.2 

 13.9 

59.7

 35.8 

 1.8 

 8.2 

 13.9 

59.7

(c) Market risk 
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates and interest rates, will affect the 
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control 
market risk exposures within acceptable parameters, while optimising the return on risk. 

Foreign currency risk 
The Group is exposed to currency risk on sales transactions that are denominated in a currency other than the respective 
functional currencies of Group entities, primarily the US Dollar (USD) and Australian Dollar (AUD). The Group is also exposed 
to currency risk on expense transactions that are denominated in a currency other than the respective functional currencies of 
Group entities, primarily the US Dollar (USD), Australian Dollar (AUD) and Euro (EUR). The Group, may on occasion, enter into 
forward exchange contracts to hedge the exposure to foreign currency fluctuations on sales receipts. 

The Group reports in New Zealand dollars. Movements in foreign currency exchange rates affect reported financial results, 
financial position and cash flows. Where practical, the Group attempts to reduce this risk by matching revenues and 
expenditures, as well as assets and liabilities, by country and by currency. 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)

NOTE 20 FINANCIAL RISK MANAGEMENT (CONTINUED)

Foreign exchange rates applied against the New Zealand Dollar, at 31 March are as follows:

Summarised sensitivity analysis 
The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to foreign currency risk. 

AUD 1

USD 1

2021

$M’s

0.92

0.70

2020

$M’s

0.97

0.60

The Group’s exposure to foreign currency risk at the reporting date was as follows (all amounts are denominated in New Zealand 
dollars):

2021

Cash and cash equivalents

Trade receivables

Lease liabilities

2020

Cash and cash equivalents

Trade receivables

Lease liabilities

AUD

$M’s

 0.1 

 0.2 

 -   

AUD

$M’s

 0.1 

 0.1

 0.1 

USD

$M’s

 12.1 

 2.2 

 0.4 

USD

$M’s

 1.2 

 3.0

 3.0 

Interest rate risk 
At 31 March 2021, the Group had interest rate swap agreements in place with a total notional principal amount of $10.0M. The 
Group applies a hedge ratio of 1:1. These agreements effectively change the Group’s interest exposure on the principal covered 
by the interest rate swaps from a floating rate to fixed rates. The maturity of the interest rate swap is 36 months and has a 
weighted average interest rate of 0.5%.  

There was no hedge ineffectiveness recognised in profit or loss during the year.

There are no comparatives as the Group did not engage in interest rate swaps in 2020.

-10%

+10%

-100bps

+100bps

Profit

Equity

Profit

Equity

Profit

Equity

Profit

Equity

$M's

$M's

$M's

$M’s

$M’s

$M’s

$M's

$M’s

2021

Cash and cash equivalents

 (0.9)

 (0.9)

Trade receivables

 (0.2)

 (0.2)

Lease liabilities

 -   

 -   

Total increase/ (decrease)

 (1.1)

 (1.1)

 0.9 

 0.2 

 -   

 1.1 

 0.9 

 0.2 

 -   

 (0.6)

 (0.6)

 0.6 

 0.6 

-

0.1

-

0.1

-

(0.1)

 0.5

-

(0.1)

 0.5

 1.1 

 (0.5) 

 (0.5) 

-10%

+10%

-100bps

+100bps

Profit

Equity

Profit

Equity

Profit

Equity

Profit

Equity

$M's

$M's

$M's

$M’s

$M’s

$M’s

$M's

$M’s

2020

Cash and cash equivalents

 (0.1)

 (0.1)

Trade receivables

 (0.2)

 (0.2)

Lease liabilities

 -   

 -   

Total increase/ (decrease)

 (0.3)

 (0.3)

 0.1 

 0.2 

 -   

 0.3 

 0.1 

 0.2 

 -   

 0.3 

 (0.0)

 (0.0)

 0.0 

 0.0 

 -   

 0.4 

 0.4 

 -   

 -   

 -   

 0.4 

 (0.4)

 (0.4)

 0.4 

 (0.4)

 (0.4)

(d) Capital management 
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain 
future development of the business. The Board monitors the return on capital employed, which the Group defines as reported 
EBIT (Earnings Before Interest and Tax) divided by capital employed. 

(e) Fair value measurement 
The carrying amounts of the Groups financial assets and liabilities approximate their fair value due to their short maturity periods 
or fixed rate nature, with the exception of interest rate swap derivatives. All of the Group’s derivatives are in designated hedge 
relationships and are measured and recognised at fair value. All derivatives are level 2 valuations based on accepted valuation 
methodologies. Interest rate derivatives are calculated by discounting the future principal and interest cash flows at current 
market interest rates that are available for similar financial instruments. 

Level 1   Quoted prices (unadjusted) in active markets for identical assets or liabilities. 

Level 2  

Inputs that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)    
other than quoted prices included within level 1. 

Level 3  

Inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

The estimated fair value measurements for the derivative instruments compared to their carrying values in the balance sheet are nil 
as the inception date was 31 March 2021. There are no comparatives as the Group did not engage in interest rate swaps in 2020.

NOTE 21 SHARE BASED PAYMENTS

At 31 March 2021, the Group had the following share-based payment arrangements.

FY20 Performance Share Rights 
Under the FY20 Long Term Incentive (LTI) plan, 770,474 performance share rights (PSRs) were issued (for nil consideration) to 
participants which convert to shares (for nil consideration) if targets are met. PSRs do not entitle the holder to receive dividends 
or other distributions, or vote in respect of EROAD Limited ordinary shares, although under the terms of the plan an additional 
number of shares will be issued on conversion of fully vested PSRs to reflect dividends paid to EROAD Limited shares prior 
to exercise. On becoming exercisable, each PSR entitles the holder to one fully paid ordinary EROAD Limited share, subject 
to adjustment in accordance with the plan rules and the performance hurdles, ranking equally with all other EROAD Limited 
ordinary shares.  

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 21 SHARE BASED PAYMENTS (CONTINUED)

NOTE 21 SHARE BASED PAYMENTS (CONTINUED)

For the FY20 LTI plan, the award is linked to growth in EROAD’s total contracted units (TCUs) between 1 April 2019 and 31 March 
2022. Participants bear the tax liability of the LTI plan. The Board retains discretion over the final outcome of PSR payments, to 
allow appropriate adjustments where unanticipated circumstances may impact performance over the measurement period. 

EROAD LTI Plan (equity-settled) 
Eligible employees were invited to purchase EROAD shares under the EROAD LTI plan. Under the terms of the scheme the 
purchase of the shares is funded by a loan granted to the eligible employees by EROAD Limited. At the end of the vesting period 
the employee will be paid a net bonus in relation to the shares that vest to the employee, equal to the amount of their loan 
outstanding to the Company, enabling the loan to be repaid.

Shares issued under the scheme are held in trust for the employees during a 3 year restrictive period. If the employee ceases to 
be an employee during the restrictive period the Trustees will repurchase the employees shares at the original issue price. 

The eligible employees must meet certain performance conditions during each year of the restrictive period, as determined by 
the remuneration committee and approved by the board. 50% of the scheme shares initially granted will be forfeited for each 
year the participant fails to achieve their performance conditions. Additionally the employee’s shares will also be forfeited if the 
enterprise value of the Company has not doubled by the end of the restrictive period. 

Employee’s shares that are forfeited due to failure to meet market and non-market performance conditions will be repurchased 
by the Trustee at the original grant date price. 

The EROAD LTI Plan has been accounted for as grant of shares to employees in accordance with NZ IFRS 2. The key terms and 
conditions relating to the grants under this Scheme are disclosed in the table below.

EROAD US President Incentive Scheme 
The US President was invited to purchase EROAD shares under the EROAD US President Incentive Scheme. Under the terms of 
the scheme the purchase of the shares is funded by a loan granted to the employee by EROAD Limited. At the end of the vesting 
period the employee will be paid a net bonus in relation to the shares that vest to the employee, equal to the amount of their 
loan outstanding to the Company, enabling the loan to be repaid.

Shares issued under the scheme are held in trust for the employee during a 3 year restrictive period. If the employee ceases to 
be an employee during the restrictive period the Trustees will repurchase the employees shares at the original issue price. 

Key operational measures and targets for the North American business are outlined in the employees grant letter, these include 
Total Contract Units, Average Revenue Per Unit, Customer Acquisition Cost Payback Period, and Renewal Rate targets. Each 
operational measure has a percentage weighting for each of the three-year periods, with the performance for each year being 
calculated based on the percentage of target achieved multiplied by the percentage weighting for each operational measures. 
The total percentage of shares to vest at the end of the restrictive period is calculated based on the average percentage 
performance over the three years. If the total average performance is less than 60% then all shares granted under the scheme 
will be forfeited. 

Employee’s shares that are forfeited due to failure to meet the non-market performance conditions will be repurchased by the 
Trustee at the original grant date price. 

The EROAD US President Incentive Scheme has been accounted for as grant of shares to employees in accordance with NZ IFRS 2. 
The key terms and conditions relating to the grants under this Scheme are disclosed in the table below.

EROAD’s LTI Plan II (equity-settled)   
Eligible employees were invited to purchase EROAD shares under the EROAD LTI plan. Under the terms of the scheme the 
purchase of the shares is funded by a loan granted to the eligible employees by EROAD Limited. At the end of the vesting period 
the employee will be paid a net bonus in relation to the shares that vest to the employee, equal to the amount of their loan 
outstanding to the Company, enabling the loan to be repaid.

Shares issued under the scheme are held in trust for the employees during a 3 year restrictive period. If the employee ceases to 
be an employee during the restrictive period the Trustees will repurchase the employees shares at the original issue price. For 
the shares to vest the Company’s Total Shareholder Return (TSR) must exceed the median TSR of the NZX50 Group over the 
Relevant Assessment Period, with a progressive vesting scale for performance between 50th and 75th percentiles, and 100% 
vesting if company performance is equal to or above the 75th percentile of the NZX50 Group.

Employee’s shares that are forfeited due to failure to meet market and non-market performance conditions will be repurchased 
by the Trustee at the original grant date price. 

The EROAD LTI Plan has been accounted for as grant of shares to employees in accordance with NZ IFRS 2. The key terms and 
conditions relating to the grants under this Scheme are disclosed in the table below.

EROAD LTI Plans  

Grant date/employees 
entitled

Shares granted to key 
management personnel

Shares granted 

Vesting conditions

Vesting 
period

APR-17

SEP-18

•  3 years service from grant date
•  Company’s Total Shareholder Return (TSR) must exceed the 

median TSR of the NZX50 Group over  
the Relevant Assessment Period (1 April 2017 to 1 April 2021).
•  progressive vesting scale for performance between 50th and 
75th percentiles, and 100% vesting if company performance is 
equal to or above the 75th percentile of the NZX50 Group.

2.5 years

•  3 years service from grant date
•  Company’s Total Shareholder Return (TSR) must exceed the 

median TSR of the NZX50 Group over the Relevant Assessment 
Period (1 April 2018 to 1 April 2021).

2.5 years

•  progressive vesting scale for performance between 50th and 
75th percentiles, and 100% vesting if company performance is 
equal to or above the 75th percentile of the NZX50 Group.

•  3 years service from grant date
•  Meet minimum targets for key operational metrics: Total 

Contracted Units, Average Revenue per Unit, Cost of Customer 
Acquisition Payback and Renewal Rates.

•  Each years performance is measured on a weighted calculation 

of percentage achieved vs. target for operational metrics. 
•  The percentage of shares to vest is calculated based on the 
average of each years weighted percentage achieved. If the 
vested amount is less than 60% all shares will be forfeited. 
•  This scheme is not presented as vested as it requires Board 

approval.

3 years

EROAD LTI Plan II (FY18)

 -   

 197,890 

EROAD LTI Plan II (FY19)

 -   

 85,276 

EROAD US President  
Incentive Scheme

490,000 

 -   

Shares granted to other 
employees

EROAD LTI Plan II (FY18)

 -   

 87,995 

Period (1 April 2017 to 1 April 2021).

2.5 years

•  3 years service from grant date

•  Company’s Total Shareholder Return (TSR) must exceed the 

median TSR of the NZX50 Group over the Relevant Assessment 

•  progressive vesting scale for performance between 50th and 

75th percentiles, and 100% vesting if company performance is 

equal to or above the 75th percentile of the NZX50 Group.

•  3 years service from grant date

•  Company’s Total Shareholder Return (TSR) must exceed the 

median TSR of the NZX50 Group over the Relevant Assessment 

EROAD LTI Plan II (FY19)

 -   

 25,977 

Period (1 April 2018 to 1 April 2021).

2.5 years

•  progressive vesting scale for performance between 50th and 

75th percentiles, and 100% vesting if company performance is 

equal to or above the 75th percentile of the NZX50 Group.

490,000   397,138 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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NOTE 21 SHARE BASED PAYMENTS (CONTINUED)

EROAD Performance Share Rights  

NOTE 21 SHARE BASED PAYMENTS (CONTINUED)

EROAD Performance Share Rights  

Grant date/employees 
entitled

Shares granted 

Vesting conditions

Vesting 
period

APR-17

SEP-18

OCT-19

Performance Shares 
Rights granted to key 
management personnel

FY20 Performance  
Share Rights

 -   

-

 374,238 

•  2.4 years service from grant date
•  The award is linked to growth in EROAD’s total 
contracted units (TCUs) between 1 April 2019 
and 31 March 2022.  Participants bear the tax 
liability of the PSR plan. The Board retains 
discretion over the final outcome of PSR 
payments, to allow appropriate adjustments 
where unanticipated circumstances may 
impact performance over the measurement 
period.

Performance Shares 
Rights granted to other 
employees

FY20 Performance  
Share Rights

 -   

-

•  2.4 years service from grant date
•  The award is linked to growth in EROAD’s total 
contracted units (TCUs) between 1 April 2019 
and 31 March 2022.  Participants bear the tax 
liability of the PSR plan.  The Board retains 
discretion over the final outcome of PSR 
payments, to allow appropriate adjustments 
where unanticipated circumstances may 
impact performance over the measurement 
period. 

2.4 years

-

-

 396,236

 770,474

Measurement of fair value    
The fair value of the shares issued under the EROAD LTI plans during the year ended 31 March 2021 was determined with 
reference to the Company’s share price on the NZX at grant date. A discount was applied to the fair value of the shares issued 
under the EROAD LTI scheme to reflect the non-vesting market conditions.   

The number of shares granted and forfeited during the period were as follows:

Outstanding at 1 April 

Granted during the period

Forfeited during the period

Vested during the period

Outstanding at 31 March 

2021

770,474

-

(174,288)

-

596,186

2020

-

770,474

-

-

770,474

During the year-ended 31 March 2021 an amount of $0.9M (2020: $0.3M) was recognised as an expense within the statement of 
comprehensive income in relation to share-based payments for all share plans.

2.4 years

NOTE 22 RELATED PARTY TRANSACTIONS

The subsidiaries of the Company are:   

Company 

Country of Incorporation 

     Interest % 

Principal activity 

EROAD Financial Services Ltd 

New Zealand 

EROAD LTI Trustee Limited   

New Zealand 

EROAD (Australia) Pty Limited 

Australia  

     100 

     100 

     100 

Financing activities within group 

LTI Scheme Trustee 

Transport Technology & SaaS 

EROAD Inc 

United States of America 

     100 

Transport Technology & SaaS 

Key management personnel compensation comprised:

Short-term employee benefits

Share-based payments

2021

$M’s

 3.0 

 0.8 

 3.8 

2020

$M’s

 2.8 

 0.2 

 3.0 

(a) Loans to key management personnel 
There have been no loans to management personnel. 

(b) Other transactions with key management personnel 
There were no other transactions with key management personnel during the period. From time to time, key management 
personnel of the Group may purchase goods from the Group.  

(c) Remuneration of Non-executive Directors 

EROAD LTI Plans  

Outstanding at 1 April 

Granted during the period

Forfeited during the period

Vested during the period

Outstanding at 31 March 

2021

874,557

-

(141,816)

-

732,741

2020

972,487

-

(24,903)

(73,027)

874,557

Michael Bushby (Resigned 1 July 2020)

Anthony Gibson

Candace Kinser (resigned 24 July 2020)

Graham Stuart (Chair)

Susan Paterson

Barry Einsig

2021

$M’s

0.01

0.06

0.02

0.12

0.08

0.13

0.42

2020

$M’s

0.06

0.06

0.06

0.11

0.09

0.04

0.42

No additional fees were paid to any Directors for consultancy work provided to the Company (2020: None paid). 

EROAD ANNUAL REPORT 2021NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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AUDITORS REPORT

NOTE 21 SHARE BASED PAYMENTS (CONTINUED)

(d) Remuneration of Executive director 

Salary and bonus

Share-based payments

2021

$M’s

 0.9 

 0.1 

 1.0 

NOTE 23 CAPITAL COMMITMENTS 

As at 31 March 2021 the Group had confirmed purchase orders open with its third party manufacturer of hardware units 
amounting to $5.1M (2020: $1.2M). 

NOTE 24 CONTINGENT LIABILITIES 

At 31 March 2021 there were no contingent liabilities (2020: nil)

NOTE 25 NET TANGIBLE ASSETS PER SHARE 

Net assets (equity)

Less intangibles

Total net tangible assets 

Net tangible assets per share ($)

2021

$M’s

 104.6

(45.3)

59.3

2021

$

 0.72 

2020

$M’s

 0.8 

 0.1 

 0.9 

2020

$M’s

51.3

(42.1)

 9.2 

2020

$

 0.13 

The non-GAAP measure above is disclosed for consistency with the information disclosed in EROAD’s results announced under 
the NZX listing rules.

NOTE 26 EVENTS SUBSEQUENT TO BALANCE DATE 

There are no other events subsequent to balance date which have not already been taken up in the accounts (2020: Nil).

Independent Auditor’s Report 

To the shareholders of EROAD Limited 

Report on the audit of the consolidated financial statements 

Opinion 

In our opinion, the accompanying consolidated 
financial statements of EROAD Limited 
(the ’Company’) and its subsidiaries (the 'Group') on 
pages 80 to 113: 

i.  present fairly in all material respects the Group’s 
financial position as at 31 March 2021 and its 
financial performance and cash flows for the 
year ended on that date; and 

ii.  comply with New Zealand Equivalents to 

International Financial Reporting Standards and 
International Financial Reporting Standards. 

We have audited the accompanying consolidated 
financial statements which comprise: 

—  the consolidated statement of financial position 

as at 31 March 2021; 

—  the consolidated statements of comprehensive 
income, changes in equity and cash flows for 
the year then ended; and 

—  notes, including a summary of significant 
accounting policies and other explanatory 
information. 

Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We 
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of 
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the 
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for 
Accountants’ International Code of Ethics for Professional Accountants (including International Independence 
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these 
requirements and the IESBA Code.  

Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the 
consolidated financial statements section of our report. 

Our firm has also provided other services to the Group in relation to other assurance services and non-audit 
services relating to tax compliance and tax advisory. 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 auditor of the Group. The firm has 
no other relationship with, or interest in, the Group. 

Materiality 

The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the 
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually 
and on the consolidated financial statements as a whole. The materiality for the consolidated financial 
statements as a whole was set at $0.9m determined with reference to a benchmark of Group revenue. We 
chose the benchmark because, in our view, this is a key measure of the Group’s performance.  

© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member 
firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 

EROAD ANNUAL REPORT 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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AUDITORS REPORT

Key audit matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit 
of the consolidated financial statements in the current period. We summarise below those matters and our key 
audit procedures to address those matters in order that the shareholders as a body may better understand the 
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely 
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not 
express discrete opinions on separate elements of the consolidated financial statements. 

The key audit matter 

How the matter was addressed in our audit 

Revenue recognition  

Refer to Note 3 of the consolidated financial 
statements.  

We assessed the judgement in revenue recognition by 
performing the following procedures: 

The Group’s contracts are accounted for as 
a service contract and the associated 
revenues recognised over the contract 
term.   

We focused on this area because the 
accounting determination of whether or not 
the contract contains a lease is a significant 
judgement and the outcome has a 
significant impact on the recognition of 
profit and loss and the financial position. 

Furthermore, judgement is also required 
when assessing the recoverability of this 
revenue and associated debtor balances in 
light of the economic conditions from 
COVID-19. 

—  Assessing whether the Group’s customer contract 
terms and conditions meet the definition of service 
contracts to be recognised over time;  

—  Reviewing any changes or new contractual terms and 
conditions entered into with new customers during 
the period to identify any potential impact on 
performance obligations required to satisfy the 
contract;  

—  Selecting a sample of customer contracts to compare 
the revenue recognised to the contractual period;  

—  Checking a sample of customer invoices immediately 
prior to and after year end to ensure revenue is 
recognised in the correct period; and  

—  Challenging management’s assumptions used to 
determine the recoverability of revenue and 
associated debtor balances particularly in context of 
ongoing uncertainty relating to COVID-19.  

We did not identify any matters that indicated that the 
reported revenue is materially misstated. 

Development asset capitalisation and impairment  

Refer to Note 16 to the consolidated 
financial statements. 

We assessed the judgements related to capitalised 
expenditure by performing the following procedures: 

The Group has reported a development 
asset of $36.9m (2020: $32.7m). The 
establishment of the development asset 
requires significant judgement as to 
whether a project meets the capitalisation 
criteria, and which expenditure is directly 
attributable to the development of such 
projects.   

In assessing whether a project meets the 
capitalisation criteria we consider its 
technical and economic feasibility, intention 
and ability to develop, use or sell the asset.  

—  Understanding the nature and background of the 

activities that are capitalised through inquiry of key 
personnel;  

—  Selecting a sample of projects ensuring they meet the 

capitalisation criteria; 

—  Challenging whether costs capitalised during the year 

were directly attributable to development projects; and  

—  Selecting a sample of timesheets and recalculating the 
amount of internal costs capitalised based on the 
hours which staff spent developing the asset.  

The key audit matter 

How the matter was addressed in our audit 

We assessed management’s impairment testing of the 
development asset by performing the following procedures: 

—  Challenging management’s assessment of the 

impairment indicators by CGU including consideration 
of the Group’s market capitalisation; 

—  For the North American CGU that had indicators of 
impairment, we obtained supporting value in use 
model and assessed the methodology and key 
assumptions made including:  

-  Comparing the market strategy inherent in the 
impairment test with management discussions 
and minutes of Board meetings;  

-  Using our corporate finance specialists to 

challenge the reasonableness of the weighted 
average cost of capital and long-term growth rates;  

-  Challenging management’s future cash flow 
forecasts. This included comparing previous 
forecasts to actual results and other relevant 
supporting documentation to evidence the 
feasibility of the forecasts and to assess the 
reliability of historical forecasting; and  

-  Challenging management’s forecasts by 

performing sensitivity analysis over the forecast 
unit sales growth, ARPU, discount rate, and 
expenses considering also the ongoing threat of 
COVID-19 impacts.  

We did not identify any factors that were materially 
inconsistent with management’s overall conclusions.  

Roles of employees and the nature of 
overhead costs are considered in assessing 
whether they are directly attributable to a 
qualifying project.  Projects that do not 
continue to meet the capitalisation criteria 
are written off.   

Additionally, the development asset is 
assessed for impairment where indicators 
exist.  Development assets are allocated to 
three cash generating units (‘CGU’s’) 
representing the three core markets the 
Company develops its products for (New 
Zealand, Australia and North America).  The 
Directors have assessed whether any 
impairment indicators exist for the 
development asset that has been allocated 
to each of these CGU’s by considering 
actual and forecast performance, economic 
and technological factors, and market 
capitalisation among other factors.   

Based on this assessment, management 
determined the development asset 
allocated to the North American CGU 
demonstrated indicators of impairment, and 
as a result performed an impairment test 
using a Discounted Cash Flow (‘DCF’) value-
in-use model. In performing this 
assessment, assumptions are made in 
respect of future economic and market 
conditions, such as forecast unit sales 
growth, forecast average revenue per unit 
(‘ARPU’), and the impact of projects in 
development on forecast cashflows, 
including considering the ongoing 
uncertainty relating to the impacts of 
COVID-19.  Additionally, management 
determined a terminal growth rate and 
discount rate which reflect an assessment 
of the time value of money and the risks 
specific to the North American business. 

We focused on these areas due to the 
quantum of the development costs 
capitalised and judgement involved.  

Other information 

The Directors, on behalf of the Group, are responsible for the other information included in the entity’s Annual 
Report. Other information includes the Chairman’s and Chief Executive’s report, disclosures relating to corporate 
governance and other statutory disclosures. Our opinion on the consolidated financial statements does not cover 
any other information and we do not express any form of assurance conclusion thereon.  

EROAD ANNUAL REPORT 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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In connection with our audit of the consolidated financial statements our responsibility is to read the other 
information and, in doing so, consider whether the other information is materially inconsistent with the 
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially 
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this 
other information, we are required to report that fact. We have nothing to report in this regard.  

Use of this independent auditor’s report 

This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been 
undertaken so that we might state to the shareholders those matters we are required to state to them in the 
independent auditor’s 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 audit work, this independent 
auditor’s report, or any of the opinions we have formed.   

Responsibilities of the Directors for the consolidated financial statements 

The Directors, on behalf of the Company, are responsible for: 

—  the preparation and fair presentation of the consolidated financial statements in accordance with generally 
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial 
Reporting Standards) and International Financial Reporting Standards; 

—  implementing necessary internal control to enable the preparation of a consolidated set of 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 audit of the consolidated financial statements 

Our objective is: 

—  to obtain reasonable assurance about whether the consolidated financial statements as a whole are free 

from material misstatement, whether due to fraud or error; and 

—  to issue an independent auditor’s report that includes our opinion. 

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance 
with ISAs NZ will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, 
they could reasonably be expected to influence the economic decisions of users taken on the basis of these 
consolidated financial statements. 

A further description of our responsibilities for the audit of these consolidated financial statements is located at 
the External Reporting Board (XRB) website at: 

http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/ 

This description forms part of our independent auditor’s report. 

The engagement partner on the audit resulting in this independent auditor's report is Aaron Woolsey.  

For and on behalf of 

KPMG  
Auckland 

28 May 2021 

EROAD ANNUAL REPORT 2021 
 
 
 
 
 
 
 
 
 
 
 
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EROAD ANNUAL REPORT 2021

< P. 119

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CORPORATE GOVERNANCE

Corporate 
Governance 
Report 

The Board of EROAD Limited (EROAD, the Company) is committed to fulfilling 
our corporate governance obligations and responsibilities in the best interests 
of the company and our stakeholders by ensuring that the Company adheres 
to best practice governance principles and maintains the highest ethical 
standards. The Board regularly reviews and assesses EROAD’s governance 
framework and processes to ensure that they are consistent with best practice.

This statement provides an overview of the EROAD’s governance framework and processes. It is structured to follow 
the NZX Corporate Governance Code (NZX Code) and discloses the Company’s practices for each of the NZX Code’s 
eight governance principles.

The Board’s view is that, as at 31 March 2021, EROAD’s governance practices were in compliance with the NZX Code’s 
recommendations. The Company also complies with the corporate governance requirements of the NZX Main Board 
Listing Rules (NZX Listing Rules) and with our obligations as a foreign-exempt issuer on the ASX (ASX Listing Rules). 

EROAD’s corporate governance policies, practices and procedures can be found on our website at  
http://www.eroadglobal.com/global/investors/. The Investor website page is used in this statement as a reference to 
the website page where the Company’s set of governance documents are located.

This Corporate Governance Statement was approved by the Board on 27 May 2021.

EROAD’S PRINCIPAL ACTIVITIES
The Company creates and delivers end to end road user charges and compliance products, telematics and asset 
tracking devices, dashcam devices, and supplies Software as a Service end-to-end products for:

(a) transportation taxes, including road user charging, fuel and vehicle registration;

(b) record keeping and compliance for fleets, mobile assets (vehicles) and drivers (including fatigue);

(c) commercial services used to improve fleet efficiency and operational and safety outcomes;

(d) micro asset tracking.

There were no significant changes to EROAD’s principal activities during the financial year.

PRINCIPLE 1: CODE OF ETHICAL BEHAVIOUR
EROAD’s purpose is safer and more sustainable roads. EROAD’s values are key to achieving this purpose. The values 
are:

•  Lead with SAFETY; 

•  Operate with TRUST;

•  Act with INTEGRITY;

•  Perform as one TEAM;

•  Celebrate INNOVATION.

EROAD’s values reflect our commitment to delivering the best outcomes for EROAD, our team, our customers, 
shareholders and wider stakeholders. 

The Company’s Code of Ethics provides guidance on the behaviours that will enable the directors, employees, 
independent contractors and advisers of EROAD and our related companies (“EROADers”) to align their conduct, 
actions and decisions with EROAD’s purpose and values.

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Broadly, the behaviours will lead to all EROADers enjoying an open, transparent, positive and high-performing culture 
with the following attributes: full commitment across the Company to the success of EROAD’s future; constructive 
relationships being developed and maintained in an open, professional and respectful manner; good career 
development and opportunities being provided within EROAD; consultation on matters concerning EROADers and the 
business; and everyone incorporating EROAD’s values into their work to collectively achieve EROAD’s purpose. The 
Code of Ethics also addresses, amongst other things, confidentiality; conflicts of interest and corporate opportunities; 
receipt of gifts and personal benefits; expected conduct; whistleblowing; corruption; reporting concerns regarding 
breaches of the code, other policies and the law. All EROADers are made aware of EROAD’s key policies and receive 
training on these via our online training platform. Whilst there is no formal assessment for corruption per se, EROAD 
has a range of Codes and Policies that discourage corrupt behaviours by employees. 

Several other policies and documents are regarded as being important in ensuring high ethical standards are 
maintained. The Market Disclosure Policy sets out the Company’s commitment to the promotion of investor 
confidence by ensuring that the trading of EROAD shares takes place in an efficient, competitive and informed 
market. The Securities Trading Policy clearly sets out for directors and employees of EROAD when they may buy or 
sell the Company’s shares, and the approvals that are required prior to trading. The underlying principle of the Policy 
is that EROAD is committed to ensuring our directors, officers, employees and advisers do not trade EROAD shares 
while in possession of inside information. An Interests Register is kept, in accordance with the requirements of the 
Companies Act 1993 and the Financial Markets Conduct Act 2013, to ensure all relevant transactions and matters 
involving the directors are recorded. The Related Party Transactions Policy governs any related party proposed or 
actual related party transactions. The Whistleblower supplements the Code of Ethics’ provisions regarding reporting 
concerns by providing a clear pathway for resolving issues that may have arisen. EROADers can raise any critical 
concerns with their manager or with any member of the executive team and any major concerns will be passed up 
to the board where appropriate. Additionally, EROAD has an independent whistleblower email for EROADers to use. 
This is managed by EY Australia. The Board and management will review any critical concerns and will work with the 
appropriate EROADers to swiftly resolve any critical concerns. 

EROAD’s Code of Ethics, Market Disclosure, Securities Trading and Whistleblower policies can be found at the Investor 
website page.

PRINCIPLE 2: BOARD COMPOSITION AND PERFORMANCE
Responsibilities of the Board and Executive Management
The business and affairs of EROAD are managed under the direction of the Board of Directors. GRI 102-18aThe role 
of the Board is to approve the purpose, values and strategic direction of the Group, to guide and monitor EROAD’s 
management in accordance with the purpose, values and strategic plans, and to oversee good governance practice. 
The Board Charter sets out internal Board procedures and defines the Board’s specific roles and responsibilities that 
include, amongst other things:

•  appointment of a Chair;

• 

in consultation with the Chief Executive Officer (CEO), providing strategic direction and approving EROAD’s strategies 
and objectives;

•  advancing major strategies for achieving EROAD’s objectives;

•  setting a risk appetite for the management of risks;

•  determining the overall policy framework within which the business of EROAD is conducted; and

•  monitoring management’s performance with respect to these matters.

The Board has a statutory obligation to reserve responsibility for certain matters and these are set out in the Charter. 
The Board also deals with issues relating to the appointment or removal of the CEO, ensuring adequate resources 
are available to management to run the business, overseeing director appointments and reappointments, approving 
financial and business plans, and considering matters that are outside delegated authority levels. The Board uses 
Committees to address certain issues that require detailed consideration by members of the Board who have specialist 
knowledge and experience. 

Management of the day-to-day operations and responsibilities of EROAD together with delivery of the strategic 
direction and goals is delegated to the executive management team under the leadership of the CEO. The Board 
holds management accountable for the performance of our delegated functions. In doing so the Board constructively 
challenges management’s proposals and decisions and seeks to instil a culture of accountability throughout the 
Group. This is achieved by monitoring management’s performance by receiving reports and plans, maintaining an 
active programme of engagement with senior management and through the Board’s annual work programme. 

If circumstances arise where a director needs to obtain independent advice, that director is, as a matter of practice, 
able to seek such advice at the expense of EROAD. 

Board Composition
EROAD is committed to ensuring that the composition of the Board includes directors who collectively bring an 
appropriate mix of skills, commitment, experience, expertise and diversity (including gender diversity) to Board 
decision-making. As at 31 March 2021 EROAD had five directors, four of whom are non-executive directors. Steven 
Newman, the CEO, is the only executive director. 

A brief biography of each Board member, including experience, length of service, expertise, role and the term of 
office is set out in the “Board of Directors” section of this report. Disclosure on director shareholdings and other 
directorships is included on page 141 of this report. 

The Board does not have a tenure policy, but it is of the view that the profile, represented by the length of service of 
each of our directors, is appropriately balanced such that Board succession and renewal planning is managed over 
the medium to longer term. 

Director nomination, appointment, retirement and re-election
The Board is responsible for appointing Directors and has established a Remuneration, Talent and Nominations 
Committee (“RTNC”) to assist it with the selection, appointment, and reappointment of Directors to the Board. The 
Committee also has oversight of EROAD’s overall human resources strategy. The Committee’s specific responsibilities 
are set out in our Charter, which is available at the Investor website page.

The Appointment and Selection of New Directors Policy sets out the criteria and process that the Committee will 
follow during the process of selecting and appointing new directors as and when a vacancy arises and in considering 
whether to recommend the reappointment of existing directors. The Appointment and Selection of New Directors 
Policy can be viewed at https://www.eroadglobal.com/global/investors/ Where a candidate is recommended by the 
RTNC, the Board will assess that candidate against a range of criteria including background, experience, professional 
qualifications, personal qualities, the potential for the candidate’s skills to augment the existing Board (board skill 
matrix) and the candidate’s availability to commit to the Board’s activities. 

EROAD is also particularly committed to ensuring that gender and cultural diversity is represented in the company.  
Levels of gender diversity across EROAD’s workforce are higher than the IT industry average. That said, we 
are conscious of the under representation of women in our current board composition.  We are in the process 
of completing a board refresh for the skills and experience we consider we require to provide the appropriate 
governance for the company as it moves through its next phase of growth. As part of this process we are considering 
the need for an additional director with a certain skillset, and are committed to identifying suitable female candidates 
with this skillset through a rigorous, comprehensive search process. In line with the NZX Code recommendations, 
checks are made for any material adverse information before a candidate is recommended to the Board. Where 
appropriate, external consultants are engaged to assist in searching for candidates.

Director period of appointment as at 31 March

0-3 years

3-9 years

9 years +

Number of directors

2

1

2

Last year, Barry Einsig stood for election following his appointment to the Board. This year, Graham Stuart will stand 
for re-election. The Board includes in the Notice of Meeting for annual meetings all material information that is 
considered relevant to a decision on whether to elect or re-elect a director.

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All new and reappointed directors enter into a written agreement with EROAD, which sets out the terms of their 
appointment. New directors also complete a comprehensive induction programme that enables them to meet with the 
Chairman, the Finance, Audit and Risk Committee (“FRAC”) Chairwoman and senior management to gain insight into 
EROAD’s values and culture, our business operations, key risks and regulatory and legal framework. The program also 
includes site visits. Each director’s induction program is tailored based on the director’s existing skills, knowledge, and 
experience. 

All directors are expected to maintain the skills required to discharge their obligations to the company. On an 
ongoing basis, directors are provided with papers, presentations and briefings on matters which may affect EROAD’s 
business or operations to assist the directors regarding understanding key developments in the industry in which 
EROAD operates. The board considers that Barry Einsig, Steven Newman and Tony Gibson all have industry specific 
experience. Directors are also encouraged to undertake continuing education and training relevant to the discharge of 
their obligations as directors of the company.  We are always working to broaden the expertise, skillset, and knowledge 
of the board with a view to increase gender representation and broaden the geographic location of directors. 

Independence of Directors 
The factors that are considered by the Board when assessing the independence of our directors are set out in the 
Board Charter. The guidance provided in the NZX Code is also considered alongside the ASX Corporate Governance 
Principles and Recommendations. As set out in the Board Charter, factors that may impact a director’s independence 
include:

1.  Being currently, or within the last three years, employed in an executive role by EROAD, any of our subsidiaries, and there 

has not been a period of at least three years between ceasing such employment and serving on the Board;

2.  Currently, or within the last twelve months, holding a senior role in a provider of material professional services to EROAD or 

any of our subsidiaries;

3.  Having a current, or within the last three years, material business relationship (e.g. as a supplier or customer) with EROAD or 

any of our subsidiaries;

4.  Being a substantial product holder of EROAD, or a senior manager of, or person otherwise associated with, a substantial 

product holder of EROAD;

5.  Having a current, or within the last three years, material contractual relationship with EROAD or any of our subsidiaries, other 

than as a director; 

6.  Having close family ties with anyone in the categories listed above; or

7.  Having been a director of EROAD for a length of time that may compromise independence. 

In each case, the materiality of the interest, position, association or relationship needs to be assessed to determine 
whether it might interfere, or might reasonably be seen to interfere, with the director’s capacity to bring an 
independent judgment to bear on issues before the Board, to act in the best interests of EROAD, and to represent the 
interests of our financial product holders generally. The Board reviews the independence of each Director considering 
interests that each director is required to disclose in relation to the factors set out above. 

Based on these factors, EROAD considers that, as at 31 March 2021, Graham Stuart, Anthony Gibson, Susan Paterson 
and Barry Einsig were independent directors.

Board Performance
Performance evaluations for the Board, the Board’s committees, individual directors, and executives are undertaken 
regularly.

The Board Charter requires the Board to undertake a regular performance evaluation of itself that:

•  compares the performance of the Board with the requirements of our Charter;

•  reviews the performance of the Board’s committees and individual directors; and

•  makes improvements to the Board Charter where considered appropriate.

The Board is currently in the process of appointing an external consultant to assist with a review of the Boards’s 
performance and composition. 

Company Secretary
Mark Heine maintains his role as the Company Secretary. He is accountable to the Board, through the Chairman, on 
all matters to do with the proper functioning of the Board. Mr Heine has regular discussions with the Chairman to 
manage the flow of information between EROAD’s Board, our committees, and senior executives. He is responsible 
for all aspects of legal compliance at EROAD together with the Company’s relationship with regulators and 
evaluating new regulatory opportunities in New Zealand.

Mr Heine’s remuneration includes the same STI and LTI plan explained on page 132. EROAD has not been party to 
any legal actions for FY21 and Mr Heine is not aware of any pending actions regarding anti-competitive behaviour 
and violations of anti-trust and monopoly legislation. EROAD has not identified any non-compliance with any laws 
and/or regulations, nor has the Company been subject to any significant fines or non-monetary sanctions for non-
compliance with any laws and/or regulations in the social and economic area. 

Diversity and Inclusion
EROAD and our Board are committed to a workplace culture that promotes and values diversity and inclusion. 
The Company pursues a broad programme of diversity by recognising, valuing, and considering our employees’ 
different backgrounds, knowledge, skills, needs and experiences.

The Board recognises that diversity and inclusion lead to a better experience at work for EROAD’s employees, 
makes teams stronger, leads to greater creativity and performance, contributes to a more meaningful relationship 
with customers and stakeholders, and, ultimately, increases value to shareholders. When there is a variety of 
thinking styles, backgrounds, experiences, perspectives and abilities, employees are more able to understand 
customers’ needs and to respond effectively to them, thus best equipping EROAD for future growth.

EROAD encourages diversity and inclusion by:

•  having a robust recruitment process in place to attract capable, motivated, engaged, creative and diverse candidates; 

and

• 

fostering a culture and environment of inclusion through various initiatives, policies, and development opportunities.

To deliver on our strategy, EROAD has designed a scalable and diverse organisation with the right skillset to grow 
and mature the Company’s operations in new markets and geographies. We explain this in more detail in the “Our 
Team” section of this report.

The Board has adopted a Diversity and Inclusion Policy in accordance with the NZX Code and the ASX Corporate 
Governance Principles and Recommendations. The policy is available at the Investor website page. To ensure 
continued focus and prioritisation, the policy requires the Board to set, review and report on measurable 
objectives for achieving and promoting diversity across EROAD’s business. Implementation of actions to achieve 
the objectives is the responsibility of the CEO. Progress has been made in FY21 in achieving the objectives. One of 
the achievements is that the percentage of female employees exceeds the percentage of female employees in the 
technology sector generally. EROAD employees also cover a broad age range (currently 18 through to 64 years) 
and come from over 28 different countries. 

Further, EROAD has maintained the following key goals regarding Diversity & Inclusion:

•  Culture & Values
To deliver appropriate internal policies and programs supporting and promoting diversity and inclusion that are 
adopted at each level of EROAD’s business.

EROAD delivers a diverse range of cultural celebrations and social events, with a broad range of people on relevant 
committees. This includes events such as: Cultural Day, Matariki Day, 4th July, Diwali, and International Women’s Day. 
Diversity and Inclusion also plays a role in talent planning designed to enable all employees the opportunity for career 
advancement. Further, EROAD undertakes regular review of employee remuneration and their approach to this, 
ensuring pay equity. 

Inclusion

• 
To ensure a culture which promotes values and inclusion. This means key discussions are not limited to small groups 
and involve a wide selection of people to promote diversity of thought.

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EROAD creates a safe environment which actively encourages EROADers to share their opinions. Leadership role 
modelling, regular cultural awareness and celebration opportunities, toastmasters and wellness programmes are some 
of the mechanisms EROAD supports for staff participation. Everyone has the freedom and opportunity to voice their 
opinions. Diverse groups contribute to business strategy and planning activity, and inter-departmental social and work 
project interactions connect people. Frameworks and managerial education are provided to promote inclusion such as 
flexible workplace practices. 

•  Leadership and People Development
A significant emphasis is given to developing our leaders and people across EROAD. A Leadership Program was 
launched in 2019 to ensure a consistent leadership approach is applied across all teams, as well as giving a wide range 
of employees, new opportunities to develop as leaders. 

Our commitment to improving leadership gender balance is evidenced by the higher proportion of female 
participation in the leadership program than the proportion of females at EROAD. This means there is a great pipeline 
of future leaders. EROAD’s “Lean-In Circle” provides a safe environment for employees to help each other develop. 
EROAD is moving to an annual review of diversity of all promotions to further strengthen our equal opportunities 
philosophy. 

•  Recruitment
Our goal is to ensure that our recruitment campaigns generate a diverse pool of talent with value on experiential 
and cognitive diversity and that all hiring decisions are based on merit. 

To achieve this EROAD: continues to advertise and promote on a broad range of recruitment advertising channels;; 
applies a diversity and inclusion lens to recruitment to maximise the appeal to a diverse candidate pool; and we 
have a scholarship which has a preference for Maori or Pasifika candidates. 

•  Communication
EROAD’s expectations around diversity and inclusion are communicated often and clearly, with a top down 
approach. Training for leaders and education for all employees on holding effective meetings is a core programme. 
Diversity initiatives such as cultural events and flexible working are widely promoted. EROAD’s careers site supports 
recruitment diversity. Inclusiveness is promoted at all levels. The value of diversity in EROAD’s labour sourcing is 
communicated to the talent acquisition team and external agencies.

Gender balance
The table below shows the respective number of men and women on the Board, in executive management positions 
(as “Officers”) and across the whole organisation, including both full time and part time employees, as at 31 March 
2020 and 31 March 2021. Almost 39% of EROAD staff are female, which is above average in our industry, and almost 
one third of EROAD female employees are in leadership roles.

Board

Officers

Other employees

2020

2021

Women

2 (29%)

2 (20%)

Men

5 (71%)

8 (80)

Women

1 (20%)

Men

4 (80%)

2 (22.2%)

7 (77.7%)

111 (38%)

178 (62%)

137 (38%)

226 (62%)

“Officers” are the CEO and senior executives reporting directly to the CEO.

PRINCIPLE 3: BOARD COMMITTEES
The Board has established a Finance, Risk and Audit Committee and a Remuneration, Talent and Nomination Committee. 
These Board committees support the Board by working with management and advisers on relevant issues at a 
suitably detailed level. Recommendations are reported to the Board. The committees’ charters set out their objectives, 
procedures, composition, and responsibilities. Copies of these charters are available at the Investor website page. 

All directors have a standing invitation to attend committee meetings where there is no conflict of interest.

Finance, Risk and Audit Committee (FRAC)
The Finance, Risk and Audit Committee assists the Board in fulfilling our oversight responsibilities relating to EROAD’s 
risk management and internal control framework, the integrity of our financial reporting and the auditing processes and 
activities. Four meetings of the Finance, Risk and Audit Committee were held during the year ended 31 March 2021.

Under the Finance, Risk and Audit Committee Charter, the Committee must be comprised of non-executive directors, 
all of whom must be independent. Further, the Chair of the Committee must be an independent director and cannot be 
the Chairman of the Board. 

Employees only attend the Finance, Risk and Audit Committee meetings at the invitation of the Committee. In the year 
ended 31 March 2021, the CEO, the Chief Financial Officer (CFO) and General Counsel were invited to attend each of the 
four meetings of the Finance, Risk and Audit Committee.

The current members of the Finance, Risk and Audit Committee are Susan Paterson (Chair), Anthony Gibson and 
Graham Stuart. All members of the Finance, Risk and Audit Committee are independent non-executive directors. 

Qualifications and Experience of Committee members

Susan Paterson: Susan has held a number of roles where she was accountable for the financial performance of entities. 
She has spent the last 25 years either chairing or contributing to Audit Committees within both government and private 
company arenas. Susan regularly attends training courses on financial matters and best practice in Audit and Assurance. 
Susan holds an MBA from London Business School (focused on finance and strategy) and is a Chartered Fellow of the 
Institute of Directors. In 2015 Susan was appointed as an Officer of the New Zealand Order of Merit in recognition of her 
service to corporate governance. 

Tony Gibson: Tony has extensive governance and international executive experience.  Tony has been the CEO of Ports 
of Auckland Limited for 11 years and prior to this role was Managing Director of Maersk Line New Zealand, Director 
of Maersk Logistics and Managing Director of P&O Nedlloyd for New Zealand and the Pacific Islands and held senior 
management roles in Europe, Asia and Africa.  Tony has also been the chair of North Tugz, Nexus Logistics and Conlixx.  
In addition, Tony brings extensive transportation and logistic expertise to the Board, including being appointed by the 
Government in 2009 as a member on the Independent Review of the NZ Road User Charging System.

Graham Stuart: Graham has over 30 years of governance experience. In addition to his extensive service on company 
boards, Graham has had a highly successful executive career split between CEO and CFO roles. Graham has held roles 
that were highly strategic in nature, within dynamic environments and in high growth businesses. Graham has a strong 
professional background in accounting and finance as well as experience in technology and leadership. Graham is a 
qualified Chartered Accountant and holds a Master of Science (Management) and a Bachelor of Commerce (First Class 
Honours). 

The Chairperson of the Committee reported to the Board on the Committee’s proceedings following each meeting. 

The Committee undertook a review of our objectives and activities and invited comments from all members of the 
Board. Recommendations were made to the Board regarding changes to the Committee’s duties, responsibilities and 
scope of activities.

Remuneration, Talent and Nomination Committee (RTNC)
The Remuneration, Talent and Nomination Committee oversees, amongst other things, the remuneration and benefits 
policies; the CEO’s performance review and performance objectives; remuneration of EROAD’s executives; succession 
planning and associated management development for the CEO and the executive team; and the effectiveness of 
the Diversity and Inclusion Policy. It also oversees the director appointment process when a vacancy arises and the 
reappointment of sitting directors. 

The current members of the Remuneration, Talent and Nomination Committee are Anthony Gibson (Chair), Graham 
Stuart, Susan Paterson, and Barry Einsig. 

Barry Einsig is currently a principal at CAVita, where he provides consulting services to cities, governments and 
companies on Smart Cities, transport mobility and connected/automated vehicle systems. His extensive global 
experience in the transport industry, coupled with his network of industry colleagues, is of real value to the Board in 
their recruitment and succession planning. With an executive level background in large publicly traded companies, Barry 
supports the RTNC’s focus on remuneration and organisational matters.

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Candance Kinser and Michael Bushby were members of the Committee until their resignation on 24 July 2020 and 1 July 
2020 respectively.

All current members of the Remuneration, Talent and Nomination Committee are independent directors. Steven Newman 
attended the two Remuneration, Talent and Nomination Committee meetings at the invitation of the Committee. 

The Chairperson of the Committee reported to the Board on the Committee’s proceedings following each meeting. 

The Committee undertook a review of our objectives and activities and invited comments from all members of the Board. 
Recommendations were made to the Board regarding changes to the Committee’s duties, responsibilities and scope of 
activities.

Board Processes
The Board held eight meetings during the year ended 31 March 2021. In addition to the eight scheduled Board 
meetings, the Board had eight additional meetings concerning COVID-19 and the capital raise.

Board

Finance, Risk and  
Audit Committee

Remuneration,  
Talent and  
Nomination Committee

Eligible to 
attend

Attended

Eligible to 
attend

Attended

Eligible to 
attend

Attended

Graham Stuart

Anthony Gibson

Susan Paterson 

Steven Newman 

Barry Einsig

Michael Bushby*

Candace Kinser **

8

8

8

8

8

3

3

8

8

8

8

8

3

2

4

4

4

4

0

2

2

2

4

4

4

1

2

1

2

2

2

2

2

1

1

2

2

2

2

2

1

0

* Michael Bushby left the Board on 1 July 2020 and attended 3 Board meetings.

** Candace Kinser left the Board on 24 July 2020 and attended 2 Board meetings. 

All Board members are entitled to attend any committee meeting where there is no conflict of interest.

Takeover protocol
The Board has a formal written protocol that sets out the procedure to be followed in the event that a takeover offer is 
received by EROAD.

PRINCIPLE 4 – REPORTING & DISCLOSURE
Making timely and balanced disclosure
EROAD is committed to promoting shareholder confidence through open, timely and accurate market communication. 
The Company has procedures in place to ensure compliance with our disclosure obligations under the NZX Listing 
Rules and the ASX Listing Rules. The Board has a Disclosure Committee that comprises the CEO, CFO and one 
Independent Director. This Committee is responsible for administering EROAD’s compliance with our Market 
Disclosure Policy, including our NZX and ASX continuous disclosure obligations, and can approve the release of 
documents to both the NZX and ASX Market Announcements Platform. 

EROAD’s Finance, Risk and Audit Committee Charter oversees the quality and integrity of external financial reporting 
including the accuracy, completeness, balance and timeliness of financial statements. It reviews interim and annual 
financial statements and makes recommendations to the Board concerning accounting policies, areas of judgement, 
compliance with financial reporting standards, NZX, ASX and legal requirements, and the results of the external audit. 
All matters required to be addressed and for which the Committee has responsibility were addressed during the 
period under review. 

All interim and full-year financial statements are prepared in accordance with relevant financial standards.

Non-financial reporting
Safety, communities and environment are at the heart of EROAD’s culture. Our philosophy and achievements are 
outlined in the pages 23-28 and 35-38 this report.

EROAD is committed to an awareness of environmental, economic, and social sustainability factors. EROAD’s 
General Counsel and CFO have responsibility for economic, environmental, and social topics. The General Counsel 
and CFO inform the Board of any material factors that come to light and keep the board up to date with current 
market trends and processes in this space. The Directors are committed to progressing ESG matters and consider 
these at every board meeting.  Members of the Executive Team report directly to the Board on these as and when 
they see fit. The Board also takes advice from the FRAC Committee, General Counsel, Risk & Compliance Manager, 
the Global Market Development Team and the Road Network Insights Team. GRI The Board receives reports on a 
series of performance measures that are considered key indicators of EROAD’s performance in areas across all the 
business units. Recommendations based on the performance measures are incorporated into agreed actions to 
mitigate the identified risks. The Board delegates to management who follow EROAD’s Health and Safety Policy, 
Delegation of Authority, Roles & Responsibility Matrix, Treasury Policy, Risk Appetite Statement, Code of Ethics 
and Code of Conduct. As part of the board review process, an independent third party is appointed to review the 
board performance every two years. Self-assessments are undertaken by the board biennially alternatively to the 
independent evaluation. EROAD reports on our sustainability efforts on an annual basis in our Annual Report. Further 
information is available in the Risk section of this statement. 

As noted in the Remuneration section, up to 60% of the Short-Term Incentive scheme targets are based on the 
achievement of strategic (non-financial) program targets from the annual plan.

EROAD is looking forward to providing further reporting on sustainability factors in our FY22 Annual Report. 
EROAD’s commitment to health and safety, diversity and community benefits are outlined in further detail in the 
Economic and Social Responsibility section of this report. 

PRINCIPLE 5 – REMUNERATION
Directors’ Remuneration
The Remuneration, Talent and Nomination Committee is responsible for establishing and monitoring remuneration 
policies and guidelines for directors which enable EROAD to attract, motivate and retain the high calibre of 
directors who will contribute to the successful governing of EROAD and create value for shareholders. External 
independent remuneration consultants at PWC are involved in determining remuneration for EROAD’s directors. 
Further, EROAD has committed to introducing theAustralian Say On Pay Vote for its remuneration report in FY22. 

When determining the fees for directors and Chairs of the Board and our committees, the Board considers 
the median director fee levels for comparable listed companies in New Zealand. In FY21, the total of fees paid 
to directors was less than the aggregate fee pool of $500,000 per annum approved at EROAD’s 2018 annual 
meeting. Under the company Remuneration Policy, no retirement payments are made to directors or executive 
employees for their service.

Current non-executive directors’ remuneration is as follows:

•  NZ$110,000 for the Chair of the Board,

•  NZ$55,000 for non-executive directors,

•  NZ$25,000 for the Chair of the Finance, Risk and Audit Committee, and

•  NZ$8,000 for the Chair of the Remuneration, Nomination and Talent Committee.

Non-executive directors received the following directors’ fees from EROAD in the year ended 31 March 2021.  All 
fees are in NZD unless otherwise indicated:

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Base fee 

Fee for Finance, 
Risk and Audit 
Committee

Fee for Remuneration, 
Nomination and Talent 
Committee

Total remuneration  
received for FY21

Graham Stuart

$110,000 
(Chairman) 

Michael Bushby**

$18,425

Barry Einsig

$96,000 (USD)

Anthony Gibson

Susan Paterson

$55,000

$54,996

$24,999.96 (Chair)

$118,574.92 (includes $8,575 for 
additional work undertaken as 
part of our ASX Listing and Capital 
Raise in September 2020)*

$0

$0

$0

$0

$0

$7,880 (Chair)

$18,425

$96,000(USD)

$62,880

$0

$0

$88,570.96 (includes $8,575 for 
additional work undertaken as 
part of our ASX Listing and Capital 
Raise in September 2020)*  

$16,894.72

Candace Kinser***

$16,894.72

*EROAD’s Remuneration Policy allows for additional payments to be made to directors for specific projects they are involved in. 
**Michael Bushby received remuneration until his retirement on 1 July 2020.

***Candace Kinser received remuneration until her retirement on 24 July 2020.
Directors do not take a portion of their remuneration under a share plan. Ownership of EROAD shares by Directors 
is encouraged rather than being a requirement. When Directors are acquiring shares they are encouraged to buy on-
market. Their ownership interests are disclosed in the “Directors’ Shareholdings” section of this report. 

Non-executive directors are entitled to be reimbursed for reasonable costs directly associated with attending the 
Board meetings.

Steven Newman, in his capacity as an executive director, does not receive remuneration as a director of EROAD.

No director of any EROAD subsidiary receives or retains any remuneration or other benefits in their capacity as a 
director of that subsidiary.

EROAD’s policies prohibit any equity hedging of shares under LTI plans.

Executive Remuneration
The Remuneration, Talent and Nomination Committee is responsible for reviewing the remuneration of EROAD’s senior 
employees in consultation with EROAD’s CEO. The Board is responsible for approving remuneration of the senior employees 
on the recommendation of the Committee.

EROAD has committed to introducing the Australian Say On Pay Vote in FY22. 

EROAD’s remuneration policy for members of the executive team and other senior staff, including the CEO, provides the 
opportunity for them to receive, where performance merits, a total remuneration package made up of three components:

Fixed Remuneration

Short-term Incentives (STIs)

Long-term Incentives (LTIs)

Market pay based on role and effectiveness

6 monthly plan. 

3 year plan.

To drive key outcomes linked 
to annual strategy.

Ensuring company grown 
strategy is set and delivered. 

Encourages and rewards right 
behaviours near-term.

Encouraging long-term value 
adding actions and retention. 

Fixed Remuneration
Fixed remuneration consists of base salary and benefits. EROAD’s policy is to set fixed remuneration in line with external 
market trends, the intrinsic value of a job and internal relativities. Fixed remuneration is reviewed, but not necessarily 
increased, annually. Any remuneration increases for the executive team must be approved by the Board. In conducting 
reviews, EROAD considers individual performance of each executive.

Short-term Incentives
Short-term incentives (STIs) are at-risk payments designed to motivate and reward for performance, typically in that 
financial year. The target value of an STI payment is set annually, usually as a percentage of the executive’s base salary. 
It creates alignment between shareholder value creation and employee reward. Participation in EROAD’s STI plan is by 
invitation only, subject to CEO approval. Invitations to participate will generally be extended to executives and other senior 
leaders in key roles each year.  Employees who are invited to participate during an STI period will be eligible to receive a pro-
rated amount of the STI bonus, provided that they are part of the program for at least 3 months. To be eligible for payment, 
an employee must be employed by EROAD as of the last day of the STI period and not be subject to any disciplinary 
proceedings. 

For the year ended 31 March 2021, the STI amount payable is based on group performance against shared team goals. 

•  40% = performance against financial metrics;

•  60% = achievement of strategic program targets from the annual plan.

Team target achievement                                                Pay-out

<75%

75%

75% - 100%

100%

≥ 100%

No pay out

50%

Linear up to 100% (E.g. 80% = 60% pay-out, 90% = 
80% pay-out etc)

100%

Achievement rate capped at 150% pay-out (E.g. 120% 
= 120% pay-out, 200% = 150% pay-out)

An essential component of the STI is strong leadership, led with behaviour that aligns with EROAD’s values. This includes 
behaviour and leadership which is ethical, and not to the detriment of customers, other employees or EROAD. In a situation 
where it is deemed that the achievement of objectives has not been aligned with the culture and values of EROAD, or an 
executive is not leading their teams as required by EROAD, their leadership and values multiplier will be less than 100%. The 
STI payment is at the discretion of the Board. Entitlement is not guaranteed even where performance criteria has been met.

Long-term Incentives
The purpose of the long-term incentive (LTI) plan is to attract, motivate, retain and reward executive employees who 
can influence the performance and strategic direction of EROAD.  

•  FY20 LTI plan 

Under the FY20 LTI plan, performance share rights (PSR’s) have been issued (for nil consideration) to participants which 
convert to shares (for nil consideration) if targets are met. For FY20, the award is linked to growth in EROAD’s total 
contracted units (TCUs) between 1 April 2019 and 31 March 2022.  Participants bear the tax liability of the LTI scheme.  As 
with the STI payments, the Board retains discretion over the final outcome of LTI payments, to allow appropriate 
adjustments where unanticipated circumstances may impact performance over the measurement period. 

EROAD ANNUAL REPORT 2021MENU

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CORPORATE GOVERNANCE

CEO Remuneration
The CEO’s remuneration is made up of three components: fixed remuneration, STI and LTI as follows: 

Description

Performance measures

Performance hurdles and shares vested

Fixed  
Remuneration

Performance Based  
Remuneration

Chief Executive

Salary

STI*

Total Cash 
Remuneration

LTI**

LTI Plan 
Status

Total  
Remuneration

Total

Total 
Remuneration 
Paid

Steven Newman 
FY17 

Steven Newman 
FY18 

Steven Newman 
FY19 

$551,499 

$89,525 

$641,024 

- 

Plan ended 

$619,403 

$619,403 

$555,859 

$116,760 

$672,619 

$150,000** 

$567,120 

- 

$567,120 

$181,478.40 

Vesting 
determined 
end of  
May 2021

Vesting 
determined 
end of  
May 2021

$822,619 

$672,619 

$748,598.40 

$567,120 

Steven Newman 
FY20 

$590,000 

$96,288 

$686,288 

$354,000 

Under the FY20 LTI 
plan, PSRs to the 
value of $354,000 
were granted to Mr. 
Newman under a 
three-year plan. This 
plan does not vest 
until 1 April 2022 
and the amount of 
PSRs granted was in 
a three-year block. 
Previous LTI plans 
had shares granted 
in one-year blocks 
to be earned over a 
three year period. This 
is why the FY20 LTI 
PSR granted amount 
is higher that for the 
previous years. The 
amount to be vested 
may be lower than 
this amount. 

In progress 
$0 vested

$1,040,288 

$686,288 

Steven Newman 
FY21 

$603,043.77 

$133,901.60 

$736,945.37 

- 

In progress 
$0 vested 

$736,945.37 

$736,945.37 

*Performance under the STI plan is assessed following the end of each financial year and payment is based on the performance achieved.  E.g. the FY19 STI 
payment was based on performance in FY19 and was paid out in FY20.    

**The LTI shares were granted during FY19 under both the FY18 LTI plan to the value of $150,000 and the FY19 LTI Plan to the value of $181,478.40. The 
amount to be vested may be lower than these amounts.  

***Effective 1 June 2019, salary was increased to $590,000. 

****Under the FY20 LTI plan, performance share rights to the value of $354,000 were granted to Mr Newman under a three-year plan.  This plan does not vest 
until 1 April 2022. The amount to be vested may be lower than this amount. 

STI

Set at 32% of at-risk pay. Based 
on a combination of financial 
and non-financial performance 
measures. 

40% = performance against financial metrics. EROAD weighting considers EROAD’s 

60% = achievement of strategic program 
targets from the annual plan.

performance against the metrics of EBITDA, the 
ratio of gross margin to sales and the ratio of 
working capital to sales.

Individual performance considers performance 
under the CEO’s objectives and key results for 
the year. Each objective has a specific target and 
stretch level of performance, as described under 
the “Short-term Incentives” section above. 

LTI

Conditional awards of shares 
under the long term incentive 
scheme.

For the FY20 LTI plan, which vests on 1 
April 2022, the award is linked to growth 
in EROAD’s total contracted units (TCUs) 
between 1 April 2019 and 31 March 2022. 

For the FY20 LTI plan, performance share 
rights (PSRs) have been issued (for nil 
consideration) to participants which convert to 
shares (for nil consideration) if targets are met. 

The graphs on page 133 shows the CEO’s remuneration for the last five years compared against EROAD’s revenue, 
EBITDA and Total Contracted Unit Growth. 

CFO Remuneration
The CEO’s remuneration is made up of three components: fixed remuneration, STI and LTI as follows: 

Fixed  
Remuneration

Performance Based  
Remuneration

CFO

Salary

STI*

Total Cash 
Remuneration

LTI**

LTI Plan 
Status

Total  
Remuneration

Total

Total 
Remuneration 
Paid

Alex Ball FY20 

$391,875.50 

$49,725.00 

$441.600.50

 $292,000**

Alex Ball FY21 

$398,508.87 

$78,617.88 

$477,126.75

 -

In progress 
$0 vested 

In progress 
$0 vested 

$734,100.50 

$441,800.50 

$477,126.75 

$477,126.75 

*Performance under the STI plan is assessed following the end of each financial year and payment is based on the performance 
achieved.  E.g. the FY20 STI payment was based on performance in FY20 and was paid out in FY21.   

** As with the CEO, the CFO’s LTI is a 3 year plan which does not vest until April 2022. 

EROAD ANNUAL REPORT 2021MENU

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CORPORATE GOVERNANCE

Employee Remuneration
EROAD and our subsidiaries have employees in New Zealand, the United States and Australia. Our pay levels reflect 
the different market rates in each country and region. The overseas remuneration amounts are converted into 
New Zealand dollars. Of the 147 employees, not being directors of EROAD and our subsidiaries, noted in the 
table below who received remuneration and other benefits that exceed NZ$100,000 in value, 28 (19%) are employed 
by EROAD in the United States of America, 6 (4%) in Australia and 113 (76%) in New Zealand.

NZ$

100,001 – 110,000 

110,001 – 120,000 

120,001 – 130,000 

130,001 – 140,000 

140,001 – 150,000 

150,001 – 160,000 

160,001 – 170,000 

170,001 – 180,000 

180,001 – 190,000 

190,001 – 200,000 

200,001 – 210,000 

210,001 – 220,000 

220,001 – 230,000 

240,001 – 250,000 

250,001 – 260,000 

260,001 - 270,000 

270,001 - 280,000 

280,001  -290,000 

290,001 - 300,00 

300,001 - 310,000 

390,001  -400,000 

470,001 - 480,000 

550,001 - 560,000 

580,001 - 590,000 

TOTAL 

Total

23 

23 

25 

17 

7 

10 

9 

6 

1 

3 

2 

1 

2 

1 

2 

1 

1 

3 

4 

1 

2

1 

1 

1 

147 

CEO Remuneration graphs

Revenue ($m)

EBITDA ($m)

CEO Salary (‘000)

Total Remuneration 
Earned (‘000)

e
g
n
a
h
c
%

e
g
n
a
h
c
%

e
g
n
a
h
c
%

e
g
n
a
h
c
%

100%

80%

60%

40%

20%

-

100%

80%

60%

40%

20%

-

6%

5%

4%

3%

2%

1%

-

100%

80%

60%

40%

20%

0%

-20%

100

80

60

40

20

-

35

30

25

20

15

10

5

-

610

600

590

580

570

560

550

540

530

520

800

700

600

500

400

300

200

100

0

m
$

m
$

)
0
0
0
(
$

)
0
0
0
(
$

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

2017

2018

2019

2020

2021

Revenue % change

Revenue $m

EBITDA % change

EBITDA $m

CEO Salary % change

CEO Salary $k

Total Remuneration 
Earned % change

Total Remuneration 
Earned $k

EROAD ANNUAL REPORT 2021 
 
 
 
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CORPORATE GOVERNANCE

PRINCIPLE 6 - RISK MANAGEMENT
Risk Management Framework
EROAD is committed to the identification, monitoring and management of material financial and non-
financial risks associated with our business activities. The Board ultimately has responsibility for internal 
compliance and control. It recognises that a sound culture is fundamental to an effective risk management 
framework. The Company’s purpose, values and Code of Ethics are important contributors to instilling effective risk 
management and awareness, and to support appropriate behaviours and judgements about risk taking within the 
parameters. EROAD’s risk management framework provides for the oversight and management of financial and non- 
financial material business risks, as well as related internal systems. The framework is designed to: 

•  optimise the return to, and protect the interests of, stakeholders; 

•  safeguard EROAD’s assets and maintain our reputation; 

• 

improve EROAD’s operating performance; and 

•  support EROAD’s strategic objectives. 

EROAD’s Risk Management Policy is available at the Investor website page.  

EROAD’s risk management strategy enhances strategic planning and prioritization, as well as assisting in the achievement 
of key objectives. The strategy also strengthens EROAD’s ability to be agile when responding to challenges that may 
be faced.  The risk management framework requires senior executives and the wider leadership team to review risks 
against the risk limits and triggers in the risk appetite statement (Risk Appetite) and to update the Risk Register on a 
periodic basis. The register identifies all known risks, including those that are key to EROAD’s strategy and business 
priorities. The Risk Register records risks by impact, probability, and trending, and records the controls for those risks. Risk 
mitigation for high-risk projects must be addressed from inception and be 
supervised by the appropriate executive team members. The executive team reviews the Risk Register in 
setting EROAD’s strategy and budgets. 

The Finance, Risk and Audit Committee undertakes quarterly reviews of the Risk Appetite, the Risk Register and other 
relevant aspects of the risk management framework. In addition, a review is undertaken, with the external auditors and 
management, of the policies and procedures in relation to material business risks.  

The Finance, Risk and Audit Committee, in conjunction with management, reports to the Board on 
the effectiveness of EROAD’s management of our material business risks and whether the risk 
management framework is operating effectively in all material respects. 

Risk Appetite 
In FY21, EROAD appointed Ross Liston as the company Risk and Compliance Manager. Mr Liston has begun a 
review of our risk management framework against our Risk Appetite. EROAD’s risk appetite has been set by the 
Board alongside the executive team to provide guidance to EROADers, contractors, and suppliers. EROAD’s risk 
appetite sets out the amount and type of risk that EROAD is willing to accept to meet our strategic objectives 
and create value for our customers and stakeholders. EROAD is a strategically focused and risk aware, but not 
risk-averse organisation.  Risks are taken in alignment with EROAD’s purpose and in accordance with EROAD’s 
values. EROAD has no appetite for risks that do not align with these.  

EROAD has five key risk categories and adopts a different risk appetite for each identifiable risk within these 
categories. The five risk categories are: 

•  Growth & Strategy 

•  Financial 

•  Expectations 

•  People 

•  Regulatory & Governance 

EROAD remains committed to innovation and has a high-risk appetite for this, alongside learning and knowledge, 
growth and partnerships, and acquisitions.  

A summary of EROAD’s risk appetite is set out below. 

RISK APPETITE 
LEVEL

GROWTH AND 
STRATEGY

FINANCIAL

CUSTOMER 
EXPECTATIONS

PEOPLE

REGULATORY AND 
GOVERNANCE

Very high

High

Medium

Low

Very low

•  Strategic risk
•  Partnerships 

•  Growth 

constraints

and acquisitions

•  Innovation

•  Capability
•  Learning / 
knowledge

•  Strategic 
execution

•  Working capital
•  Cost of Capital
•  Shareholder 

liquidity

•  Supply chain 
and inventory

•  Customer 

interactions

•  Product 
delivery

•  Regulatory 
environment

•  Key roles, single 
point of failure

•  IT and cyber 

security
•  Quality and 
resilience

•  Privacy

•  Governance risk

No appetite

•  Banking 

covenants

•  Product 

compliance

•  Health and 

•  Illegal & Unethical 

Safety

•  Purpose and 

values

Behaviour

In managing the Company’s business risks, the Board approves and monitors policy and procedures in areas such as 
treasury management, financial performance, taxation and delegated authorities. 

Insurance
EROAD has insurance policies in place covering areas where risk to our assets and business can be insured at a 
reasonable cost. 

Health, Safety and Wellbeing Risk Management
The Board considers ensuring safety and wellbeing at EROAD to be one of our core roles. Our specific responsibilities are set 
out in the Board Charter. The Board is committed to ensuring that safety and wellbeing is a top priority for EROAD and is 
embedded into every aspect of EROAD’s business. EROAD’s Safety and Wellbeing Policy is a management policy that 
providesfor the oversight and management of health and safety risks on behalf of the Board.  

EROAD’s Safety and Wellbeing Management System Framework outlines safety and wellbeing activities 
at EROAD and articulates safety and wellbeing responsibilities for the Board, the executive team and the 
people performing work for EROAD. The framework requires objectives and key results to be established 
and incorporated into business planning processes to enable the Safety and Wellbeing Policy’s intent and related 
strategies and procedures to be achieved. The framework also requires the safety and wellbeing strategy to 
be reviewed regularly to ensure alignment with EROAD’s values, the overall business strategy and 
the safety and wellbeing vision.  

Members of the Board are regularly provided with a safety and wellbeing report summarising EROAD’s risk profile and 
management actions, the current safety and wellbeing focus, lead and lag indicators and updates 
from the Safety and Wellbeing staff committee.  In the year ended 31 March 2021, there have been no notifiable events to 
report to WorkSafe NZ. 

EROAD ANNUAL REPORT 2021 
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EROAD ANNUAL REPORT 2021

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CORPORATE GOVERNANCE
SECTION TITLE

PRINCIPLE 7 – AUDITORS
Oversight of the Company’s external audit arrangements to safeguard the integrity of financial reporting is the 
responsibility of the Finance, Risk and Audit Committee. The External Auditor Independence Policy ensure that audit 
independence is maintained, both in fact and appearance. It covers: 

•  The selection and appointment process for the external auditor; 

•  Rotation of external audit partners; 

•  Policy to ensure external auditors’ independence; 

•  Provision of non-audit services; and 

•  Reporting to the Finance, Risk and Audit Committee. 

The policy is available at the Investor website page.  

The role of the external auditor is to audit the financial statements of the Company in accordance with applicable 
auditing standards in New Zealand and to report on their findings to the Board and shareholders of the Company.  

EROAD’s external auditors attend the annual shareholder’s meeting to answer questions from shareholders in relation 
to audits. 

KPMG is EROAD’s external auditor and has audited the company accounts since 2009. The company rotates the lead 
audit partner at least once every five years. The most recent rotation occurred during FY21.

EROAD does not have an internal audit function.  The Finance, Risk & Audit Committee pays particular attention 
to matters raised by the company’s auditor. It also requires the Executive Team to report periodically on areas 
identified as most sensitive to risk together with recommendations for improvements and changes to internal 
controls. Through the steps outlined under the Risk Management section, the Board ensures EROAD is reviewing, 
evaluating and continually improving the effectiveness of our risk management framework.  

PRINCIPLE 8 – SHAREHOLDER RIGHTS AND INTERESTS
EROAD recognises the importance of providing our shareholders and the broader investment community with 
access to up-to-date high-quality information to enable them to: monitor the Company’s performance; participate 
in decisions required to be put to owners; and provide avenues for two-way communication between 
the company, the Board and shareholders. The Shareholder Communication Policy sets out how EROAD 
engages with shareholders and other stakeholders to provide them with written communications, electronic 
communications and access to the Board, management and auditors. It is one of the corporate governance policies 
included at the Investor website page. 

EROAD’s website is an important information portal and is kept up to date 
with relevant information, including copies of shareholder reports, presentations and market 
announcements. Releases and reports are published to the website once they have been provided to and publicly 
released by NZX. The website also contains Board and management profiles together with information on EROAD’s 
history, awards and a rich library of product information.  

Shareholders can easily communicate with EROAD, including by way of email to the address investors@eroad.com. 
EROAD’s major communications with shareholders during the financial year include our annual and half-year results, 
annual report and the annual meeting of shareholders. The annual report is available in electronic and hard-copy 
formats. Shareholders have the option to receive communications from EROAD electronically. 

Shareholders have the right to vote on major decisions as required by the NZX Listing Rules.  

The Notice of Meeting is sent to shareholders and published on EROAD’s website at least 20 
working days prior to the annual shareholders’ meeting each year. 

Capital Raise September 2020 
In respect of the capital raise in September 2020, EROAD undertook a placement with a share purchase plan for 
a maximum of $50,000 of new shares per shareholder. EROAD proceeded with a placement and SPP instead of 
a pro-rata raise in order to increase liquidity, broaden our investor base and allow EROAD to accelerate its growth 
strategies as it heads towards 250,000 connected vehicles. Since announcing the placement and SPP, EROAD’s share 
price has increased from $4.29 to mid $5 – a 25% increase. 

SECTION TITLEEROAD ANNUAL REPORT 2021MENU

EROAD ANNUAL REPORT 2021

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REGULATORY DISCLOSURES

Regulatory 
disclosures 

DIRECTORS
The persons who held office as directors of EROAD Limited at any time during the year ended 31 March 2021,  
are as follows:

Graham Stuart 

Chairman, Non-Executive, Independent

Steven Newman  Chief Executive Officer 

Anthony Gibson  Non-Executive, Independent

Susan Paterson   Non-Executive, Independent

Barry Einsig  

Non-Executive, Independent

Michael Bushby*  Non-Executive, Independent 

Candace Kinser**  Non-Executive, Independent

*Michael Bushby left the board on 1 July 2020  

**Candace Kinser left the board on 24 July 2020 

SUBSIDIARY COMPANY DIRECTORS
The persons who held office as directors of subsidiary companies at 31 March 2021 are as follows: 

EROAD Financial Services Limited (New Zealand) 
Anthony Gibson

EROAD (Australia) Pty Limited (Australia) 
David Worth, Steven Newman  

EROAD Inc. (USA) 
Mark Heine, Alex Ball 

EROAD LTI Trustee Limited (New Zealand) 
Anthony Gibson

INTERESTS REGISTER
In accordance with Section 140(2) of the Companies Act, the directors named below have made a general disclosure 
of interest by a general notice disclosed to the Board and entered in the Company’s interests register. General notices 
given by directors which remain current as at 31 March 2021 are as follows:  

Graham Stuart 

•  Director, Tower Limited
•  Director and Shareholder, Leroy Holdings Limited
•  Director, Vinpro Limited
•  Director, Northwest Healthcare Properties Management 

Limited

•  Director, Metro Performance Glass Limited

Anthony Gibson
•  Chief Executive Officer, Ports of Auckland Limited
•  Chair, North Tugz Limited
•  Director, AMG Consulting Limited
•  Director, Seafuels Limited
•  Director, Waikato Freight Hub Limited
•  Director, Marsden Maritime Holdings Limited
•  Chair, Nexus Logistics Limited
•  Chair, Conlixx Limited

Steven Newman
•  Director, NMC Trustees Limited

Susan Paterson
•  Director, Goodman (NZ) Limited and associated 

companies 

•  Director, Arvida Group Limited
•  Director, Les Mills Holdings Limited
•  Director (Chair), Steel & Tube Holdings Limited
•  Director and shareholder , Theta Systems Limited 
•  Board member, Electricity Authority 
•  Director, Reserve Bank of New Zealand

Barry Einsig
•  Senior Manager, Econolite
•  Principal, CAVita LLC

The following details included in the Company’s interests register as at 31 March 2020 have been removed as at 31 March 2021: 

•  Graham Stuart is no longer a Director of Tower Insurance Limited and Tower Financial Services Group Limited.  
•  Susan Paterson is no longer a Director of Sky Network Television Limited.  

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REGULATORY DISCLOSURES

SHARE DEALINGS BY DIRECTORS 
In accordance with Section 148(2) of the Companies Act, the Board has received disclosures from the directors 
named below of acquisitions or dispositions of relevant interests in the company between 1 April 2020 and 31 
March 2021, and details of those dealings were entered in the company’s interests register. The particulars of such 
disclosures are: 

Steven Newman and NMC Trustees Limited 

• 

1) Steven Newman sold 1,437,945 ordinary shares at $3.90 per share on 23 September 2020. 

Susan Paterson 

• 

1) Acquired 12,820 ordinary shares at $3.90 per share on 25 September 2020. 

Graham Stuart  

• 

1) Acquired 12,820 ordinary shares at $3.90 per share on 12 October 2020. 

Anthony Gibson  

• 

1) Acquired 12,820 ordinary shares at $3.90 per share on 13 October 2020. 

USE OF COMPANY INFORMATION
There were no notices from directors of the Company requesting to use Company information received in their 
capacity as directors that would not otherwise have been available to them. 

DIRECTORS’ AND OFFICERS’ INSURANCE AND INDEMNITY
EROAD has arranged, as provided for under the Company’s constitution, policies of directors’ and officers’ liability 
insurance which, with a Deed of Indemnity entered into with all directors, ensures that generally directors will incur 
no monetary loss as a result of actions undertaken by them as directors. Certain actions are specifically excluded, for 
example, the incurring of penalties and fines that may be imposed in respect of breaches of the law. 

DIRECTORS’ RELEVANT INTERESTS
The following directors held relevant interests in the following ordinary shares in the Company as at 31 March 2021: 

Name

Steven Newman

Graham Stuart

Anthony Gibson

Susan Paterson  

Barry Einsig 

Ordinary shares

12,941,513*  

52,820 

580,819  

12,820 

-

Shareholder Information

DISTRIBUTION OF SHAREHOLDERS AND HOLDINGS

Holding Range 

1 to 999 

1,000 to 4,999 

5,000 to 9,999 

10,000 to 49,999 

50,000 to 99,999 

100,000 and over 

Total 

Number 
of holders

558 

980 

346 

313 

38 

46 

2,281 

%

24.46 

42.96 

15.17 

13.72 

1.67 

2.02 

100 

Number of 
ordinary shares

231,891 

2,267544 

2,316,564 

6,354869 

2,616.677 

68,108,795 

81,896,340 

%

0.28 

2.77 

2.83 

7.76 

3.2 

83.16 

100 

The details set out above were as at 31 March 2021. 

The Company only has one class of shares on issue, ordinary shares, and these shares are quoted on the NZX Main 
Board. 

SUBSTANTIAL PRODUCT HOLDERS
According to notices given under the Financial Markets Conduct Act 2013, the substantial product holders in ordinary 
shares (being the only class of quoted voting products) of the Company and their relevant interests according to the 
substantial product holder file as at 31 March 2021, were as follows:

Substantial product holder

National Nominees Ltd 
ACF Australian Ethical Investment

Date of Notice

Number of shares

11/08/2020 

5,420,710 

Steven Newman (includes NMC Trustees Limited’s relevant interest)

23/09/2020 

13,067,936 

Colonial First State Investment Limited

 25/09/2020

5,350,209

Allianz SE

 28/09/2020

4,008,293

*Steven Newman also has 120,000 performance share rights granted under the FY20 LTI Plan which vest on achievement of sales 
thresholds based on increase in total contracted units for the period 1 April 2020 to 31 March 2022.

Mitsubishi UFJ Financial Group Inc.

29/09/2020 

5,400,060

On 23 September 2020 Steven Newman, who has a relevant interest in the shares held by NMC Trustees Limited, gave 
ongoing disclosure of the sale of 1,437,945 ordinary shares at a share price of $3.90 per share. 

The total number of ordinary shares (being the only class of quoted voting products) on issue in the Company as at 31 
March 2021 was 81,896,340. 

EROAD ANNUAL REPORT 2021MENU

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REGULATORY DISCLOSURES

PRINCIPAL SHAREHOLDERS
The names and holdings of the twenty largest registered shareholders in the Company as at 31 March 2021 were: 

Other Information

Holder Name

NMC Trustees

National Nominees Limited – NZCSD

FNZ Custodians Limited

Citicorp Nominees Pty Limited

HSBC Custody Nominees (Australia) Limited

JP Morgan Nominees Australia Limited

National Nominees Limited

BNP Paribas Nominees (NZ) Limited – NZCSD

HSBC Nominees (New Zealand) Limited – NZCSD

BNP Baribas Noms Pty Ltd

BNP Paribas Nominees (NZ) Limited – NZCSD

John Grant Sinclair

Accident Compensation Corporation – NZCSD

BNP Parisbas Nominees (NZ) Limited

David Murray Jarrett & Julie Patricia Jarrett & DHT  (2017) 7 Limited

Bruce Alan Lister

Anthony Gibson

MMC Limited – NZCSD

Andrew Bowker 

Paul Geoffrey Hewlett & Catherine Patricia Carter & Hoffman Trustees Limited

Shares

12,941,513

8,074,271

6,605,431

5,455,909

5,374,320

4,845,490

3,394,217

2,561,134

1,670,944

1,397,348

1,-092,113

947,861

910,502

798,470

782,834

755,516 

580,819

565,502

560,006

557,069

%

15.8

9.85

8.06

6.66

6.56

5.91

4.14

3.12

2.04

1.7

1.33

1.15

1.11

0.97

0.95

0.92

0.7

0.69

0.68

0.68

NZX WAIVERS
EROAD’s placement and share purchase plan announced to the market on 17 September 2020 were made pursuant to 
NZX Listing Rule 4.5.1 (as modified by a class waiver granted by NZX Regulation on 19 March 2020).

DISCIPLINARY ACTION TAKEN BY THE NZX 
The NZX has not taken any disciplinary action against the company during the year ended 31 March 2021. 

AUDITOR’S FEES
KPMG has continued to act as auditor of EROAD and our subsidiaries. The amount payable by EROAD and our  
subsidiaries to KPMG as audit fees during the year ended 31 March 2021 was $0.4m. The amount of fees payable to 
KPMG for non-audit work during the year ended 31 March 2021 was $0.2m. Note 4 in the Financial Statements  section 
of this Annual Report includes a detailed breakdown of auditor’s fees for audit and non-audit work.

DONATIONS
EROAD and our subsidiaries made donations totaling $11,031 during the year ended 31 March 2021.  
EROAD does not make donations to any political party.

CREDIT RATING
EROAD does not currently have a credit rating.

EROAD ANNUAL REPORT 2021 
MENU

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GRI INDEX

Global Reporting Initiative (GRI) Index 

102-13

Membership of  
associations

-

GRI Dis-
closure 
Reference

GRI Description

Page  
Reference

Notes / information where data not supplied in main 
body

GENERAL DISCLOSURES 

102-1

102-2 

102-3

102-4

102-5

102-6

102-7

102-8

102-9

102-10

102-11

Name of Organiza-
tion

4

Activities, Brands, 
products and ser-
vices

5 - 8

Location of Head-
quarters 

Location of opera-
tions

Ownership and legal 
form

162

162

86

EROAD Limited.

Disclosed in ‘EROAD is a hardware enabled SaaS company that pi-
oneered Regulatory Telematics’ and ‘Growth through providing our 
customers additional products and services’ Section.

Albany, Auckland, New Zealand. Disclosed in ‘Directory’ Section. 

New Zealand, Australia, North America. Disclosed in ‘Directory’ 
Section.

Limited company incorporated under the NZ Companies Act. 
Owned by shareholders trading on the NZX and the ASX. 

Markets served

11, 51 - 62

New Zealand, Australia, North America. 

Scale of the organi-
zation

-

363.

Information on em-
ployees and other 
workers

Supply chain

Significant changes 
to the organization 
and its supply chain

67 – 76, 124 – 
125, 134

Disclosed in ‘Our Team’ Section.

39

39

Disclosed in ‘EROAD’s Supply Chain’ Section.

Disclosed in ‘EROAD’s Supply Chain’ Section.

Precautionary princi-
ple or approach

135, 136

The level of risk EROAD is willing to take on is captured in its Risk 
Appetite Statements (RAS).  Key business risks, and associated 
limits (included in the RAS) are identified, reviewed and agreed 
by the Executive and the Board on an annual basis. Performance 
against these risk limits is monitored continuously and reported to 
the Executive and Board on a monthly basis.

EROAD adapts its risk universe to factor in emerging risks such 
climate change, geo-politics, etc. 

102-12

External initiatives

-

None.

New Zealand
Bus and Coach Association
Civil Contractors New Zealand
Intelligent Transport Systems New Zealand
New Zealand Trucking Association
Road Transport Association 
Road Transport Forum
WasterMINZ

Australia
Australian Furniture Removers Association
Australian Trucking Association
Civil Contractors Federation New South Wales
Civil Contractors Federation Queensland
Civil Contractors Federation Victoria
Queensland Trucking Association
Roads Australia (in progress)

United States of America 
American Trucking Association
Colorado Trucking Association
Commercial Vehicle Safety Association
Florida Trucking Association
Georgia Trucking Association
Indiana Motor Trucking Association
Louisiana Trucking Association
Mileage Based User Fee Alliance
National Private Truck Council
New York Trucking Association
North American Transportation Services Association
North Carolina Trucking Association
Oklahoma Trucking Association 
Ohio Trucking Association
Oregon Trucking Association
Pennsylvania Trucking Association
South Carolina Trucking Association
Tennessee Trucking Association
Texas Trucking Association
Truckload Carriers Association
Utah Trucking Association
Washington Trucking Association
Wisconsin Motor Carriers Association
Women in Trucking
Wyoming Trucking Association

Global
International Bridge Tunnel and Turnpike Association 
International Road Federation (Global)

STRATEGY

102-14

102-15

Statement from se-
nior decision maker

Key impacts, risks 
and opportunities

9 - 17

9 - 17

Disclosed in ‘Chair and CEO Letter’.

Disclosed in ‘Chair and CEO Letter’ and ‘Protecting the Data so our 
customers can operate with confidence’ Section. 

EROAD ANNUAL REPORT 2021MENU

< P. 147

P. 148 >

GRI INDEX

ETHICS AND INTEGRITY

102-16

102-17

Values, principles, 
standards, and 
norms of behaviour

73, 120

Mechanisms for 
advice and concerns 
about ethics

121

GOVERNANCE 

102-18

Governance struc-
ture 

128

102-19

Delegating authority 

128

EROAD is a values lead organization. Our values are: We Lead with 
Safety, We Celebrate Innovation, We Perform as One Team, We Act 
with Integrity and We Operate with Trust.

EROAD’s Code of Ethics sets our ethical expectations for ERAODers 
and our suppliers. EROAD’s Whistleblowing Policy is available on 
our intranet site for all employees to access. In the first instance, em-
ployees should raise concerns with their line manager. If that is not 
appropriate, then they can report it to the Chief People Officer or 
the EVP General Counsel. Concerns may also be escalated directly 
to the Chair of FRAC or to the external EY Whistleblower email. 

Disclosed in ‘Corporate Governance’ Section – The Board on advice 
from FRAC, General Counsel, Risk and Compliance Manager, Global 
Market Development Team, Road Network Insights Team.

Disclosed in ‘Corporate Governance’ Section – Board delegates to 
management teams.

102-31

102-32

102-33

102-34

102-35

102-36

102-37

Review of economic, 
environmental, and 
social topics

Highest governance 
body’s role in sus-
tainability reporting 

Communicating 
critical concerns

Nature and total 
number of critical 
concerns 

Remuneration 
policies

Process for deter-
mining remuneration

Stakeholders’’ 
involvement in 
remuneration

128

128

121

121

Disclosed in ‘Corporate Governance’ Section – at every Board meet-
ing.

Disclosed in ‘Corporate Governance’ Section – annual reporting in 
the Annual Report. 

Disclosed in ‘Corporate Governance’ Section – report at every Board 
meeting. 

Disclosed in ‘Corporate Governance’ Section 

128 - 134

Disclosed in ‘Corporate Governance’ Section – Remuneration Policy. 

128 - 134

Disclosed in ‘Corporate Governance’ Section. 

128 - 134

Disclosed in ‘Corporate Governance’ Section.

128

Disclosed in ‘Corporate Governance Section’ – the General Counsel 
and CFO are responsible for ESG.

STAKEHOLDER ENGAGEMENT

Executive-level 
responsibility for 
economic, environ-
mental, and social 
topics

Consulting stake-
holders on econom-
ic, environmental 
and social topics

Composition of the 
highest governance 
body and its com-
mittees

102-20

102-21

102-22

102-23

102-24

Chair of the highest 
governance body

77

Nominating and 
selecting the highest 
governance body

122 - 123

102-25

Conflicts of interest

125, 127

102-26

102-27

102-28

102-29

102-30

Role of the highest 
governance body 
in setting purpose, 
values and strategy

Collective knowl-
edge of the highest 
governance body

Evaluating the 
highest governance 
body’s performance

Identifying and 
managing economic, 
environmental, and 
social impacts

Effectiveness of 
risk management 
process

121

128

128

128

135

21 - 22

EROAD recently conducted a Materiality Matrix to engage with 
stakeholders on material ESG factors.

77 – 78, 121 - 127 Disclosed in ‘Corporate Governance’ Section.

Disclosed in’ Corporate Governance’ Section.

Disclosed in ‘Corporate Governance’ Section – Director Nomination 
Policy.

Disclosed in ‘Corporate Governance’ Section – Board Charter, Code 
of Ethics, Related party Transaction Policy.

Disclosed in ‘Corporate Governance’ Section – Board and manage-
ment regularly review EROAD’s purpose and update this where 
applicable.

Disclosed in ‘Corporate Governance’ Section – Board kept up to date 
on current market trends and processes.

Disclosed in ‘Corporate Governance’ Section – independent third 
party reviews the Board’s performance biennially.

Disclosed in ‘Corporate Governance’ Section – EROAD’s Board is 
proactive in progressing ESG matters.

Disclosed in ‘Corporate Governance’ Section – Board reviews the risk 
management processes and considers advice from FRAC.

102-40

102-41

102-42

102-43

102-44

List of stakeholder 
groups

19 - 20

Disclosed in ‘Our Stakeholders’ Section.

Collective bargaining 
agreements

-

None

Identifying and se-
lecting stakeholders

Approach to stake-
holder engagement

Key topics and con-
cerns raised

19 – 20, 38

Disclosed in ‘Our Stakeholders’ Section.

21 - 22

21 - 22

Disclosed in ‘What Really Matters to our Stakeholders’ Section. 

Disclosed in ‘What Really Matters to our Stakeholders’ Section.

REPORTING PRACTICE

102-45

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-55

102-56

Entities included in 
the consolidated 
financial statements

86, 112

EROAD Limited and the associated group entities. 

Restatements of 
information

-

Changes in reporting -

Reporting period

80

Date of most recent 
report

Reporting cycle

Contact point for 
questions regarding 
the report

Claims of reporting 
in accordance with 
the GRI Standards

9

9

-

-

None.

None.

FY21

01/04/2020 – 31/03/2021.

31 March 2021

01/04/2020 – 31/03/2021.

CFO – Alex Ball.

Annually.

This index shows EROAD’s commitment to reporting against the GRI 
Reporting Standards.

GRI content index

145 - 155

Yes.

External assurance

-

External assurance has not been sought for EROAD’s GRI Reporting 
in FY21.

EROAD ANNUAL REPORT 2021MENU

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P. 150 >

GRI INDEX

MANAGEMENT APPROACH

103-1

103-2

103-3

Explanation of the 
material topic and its 
Boundary

The management 
approach and its 
components

Evaluation of the 
management ap-
proach

ECONOMIC PERFORMANCE

201-1

201-2

201-3

201-4

Direct economic 
value generated and 
distributed

Financial implica-
tions and other 
risks and opportu-
nities due to climate 
change

Defined benefit plan 
obligations and oth-
er retirement plans

-

-

Financial assistance 
received from gov-
ernment

63

MARKET PRESENCE

202-2

Proportion of senior 
management hired 
from the local com-
munity

-

ANTI-CORRUPTION 

205-1

205-2

205-3

Operations assessed 
for risks relating to 
corruption

Communication and 
training about an-
ti-corruption policies 
and procedures

121

121

Confirmed incidents 
of corruption and 
actions taken

-

21 - 22

Disclosed in ‘Materiality Matrix’ Section.

21 - 22

Disclosed in ‘Materiality Matrix’ Section

-

Addressed throughout. 

79 - 113

Refer to financial statements.

EROAD is currently piloting our telematic solution in electric heavy 
vehicles. EROAD sees opportunities presented by climate change as 
positive for our financial position

Disclosed in ‘Corporate Governance’ Section. Remuneration for US 
based employees, EROAD has a 401k Plan in place which staff may 
opt in to. 

In FY21, EROAD received grants for COVID relief NZD$1.5m (from 
the US Government) and from Callaghan R&D grant of NZD$1.0m

The percentages below show the percentage of senior management 
at significant locations of operation that were hired from the local 
community
US: 100%
NZ:75%
AU:100%
Senior management includes all executive team members, as well 
as those managers who report directly to an executive member. 
EROAD’s definition of ‘local’ is within the country. EROAD’s defi-
nition for ‘significant locations of operation’ are the three markets 
we operate in - New Zealand, Australia and the United States of 
America

No formal assessment per se, but EROAD has a range of Codes 
and Policies to discourage corrupt behaviours such as the Code of 
Ethics. 

Disclosed in ‘Corporate Governance’ Section. 

None.

ANTI-COMPETITIVE BEHAVIOUR

206-1

TAX

207-1

207-2

207-3

207-4

MATERIALS 

302-2

302-3

ENERGY

302-1

Legal actions for 
anti-competitive 
behaviour, anti-trust, 
and monopoly 
practices

Approach to tax

Tax governance, 
control, and risk 
management

Stakeholder engage-
ment and manage-
ment of concerns 
related to tax

Country-by-country 
reporting

Recycled input ma-
terials used

Reclaimed products 
and their packaging 
materials

Energy consumption 
within the organi-
zation

BIODIVERSITY

304-1

304-2

304-3

304-4

Operational sites 
owned, leased, man-
aged in, or adjacent 
to, protected areas 
and areas of high 
biodiversity value 
outside protected 
areas. 

Significant impacts 
of activities, prod-
ucts, and services on 
biodiversity

Habitats protected 
or restored

IUCN Red List 
species and national 
conversation list 
species with habitats 
in areas affected by 
operations

-

-

-

-

-

-

-

-

-

-

-

-

None.

EROAD takes a conservative position in regard to tax to ensure we 
meet all our obligations in each of the jurisdictions we operate in.

EROAD has external advisors to support us with our tax governance 
and risk management. Any changes in our approach to tax would 
require sign off by the Board of Directors. The taxation calculations 
included in the financial statements are subject to audit review.

As noted above, EROAD has external advisors globally who prepare 
our tax returns and transfer pricing documentation, they act as our 
agent with Inland Revenue and would manage any concerns arising.

Tax is reported at a group level. Individual tax returns are prepared 
for each tax jurisdiction within which we operate.

We do not use recycled electronic components in our products due 
to the potential for early life failure.

When EROAD refurbishes its main product, approximately 70% of 
the product by value is reused, with the remaining 30% replaced 
with new components.

14,737 kWh for NZ HQ, Penrose and Chch. 

None.

None.

None.

None.

EROAD ANNUAL REPORT 2021MENU

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GRI INDEX

ENVIRONMENTAL COMPLIANCE

307-1

Non-compliance 
with environmental 
laws and regulations

None.

SUPPLIER ENVIRONMENTAL ASSESSMENT

308-1

308-2

New suppliers that 
were screened 
using environmental 
criteria

Negative environ-
mental impacts in 
the supply chain and 
actions taken

38

EMPLOYMENT

401-1

401-2

-

-

New employee 
hires and employee 
turnover

Benefits provided to 
full-time employees 
that are not provid-
ed to temporary or 
part-time employees

Any significant new suppliers we audit and this includes their envi-
ronmental practices.

No negative impacts identified. If major breach to EROAD policies, 
we would cease the arrangement. Our policy is to work with suppli-
ers where possible to remedy any negative environmental impacts. 

Total employees hired was 86, which is a hiring rate of 25.7%. Turn-
over was 49 people, which was 14.6% of the employee population.

Benefit / Eligi-
bility 

US 
Em-
ploy-
ees 

Health insurance 

Yes 

Health insurance 
discount 

Life insurance 

Dental insurance 

Parental leave 

N/A 

Yes 

Yes 

Yes 

Aus-
tralia 
Em-
ploy-
ees 

N/A 

N/A 

N/A 

N/A 

Yes 

New Zealand 
Employees 

N/A 

Yes 

N/A 

N/A 

Yes (except Fixed 
Term) 

Employee Assis-
tance Program 

Bonusly reward & 
recognition 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

EROAD Awards 

Yes 

Gym membership  Yes 

Volunteer Day 

Flexible Working 

Annual Leave/
PTO 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Yes 

Retailer discounts  N/A 

N/A 

Yes 

401-3

Parental leave

-

Yes (except fixed term employees in NZ).

LABOR/MANAGEMENT RELATIONS

402-1

Minimum notice 
periods regarding 
operational changes 

-

OCCUPATIONAL HEALTH AND SAFETY 

403-1

Occupational health 
and safety manage-
ment system

136

No collective agreements. 

EROAD maintains and implements a corporate Health, Safety and 
Wellness (HSW) Management System which fulfils the key require-
ments of the current ISO 45001 standard. We have a common HSW 
Policy for the company and corporate standards and procedures in 
areas where EROAD wants to set standards. Local EROAD offices 
implement supplementary HSW system requirements as determined 
by local regulatory and legal requirements. 
EROAD regularly assesses hazards and analyses risks across its 
operations, and implements and maintains the controls necessary to 
prevent, monitor and mitigate the risk to be within the organisation’s 
risk appetite. Risk management practices are reviewed when new in-
formation becomes available; e.g., new legal requirements, changes 
to processes, and incident investigations. 
It is the responsibility of all employees to ensure that all incidents 
are reported in order to ensure timely investigation and corrective 
action. Incidents are investigated using root cause analysis, and 
lessons learned communicated as required.

Hazard identifica-
tion, risk assess-
ment, and incident 
investigation 

-

Addressed above under 403-1.

403-2

403-3

403-4

Occupational health 
services

136

136

Worker participa-
tion, consultation, 
and communication 
on occupational 
health and safety

403-5

Worker training on 
occupational health 
and safety 

-

403-6

Promotion of worker 
health

73

EROADers are encouraged to take reasonable care of their well-
being. Accordingly, as deemed appropriate they can engage their 
manager, a People & Capability team member and/or the Employee 
Assistance Programme (EAP) for assistance with work-related ill 
health.

In accordance with regulatory requirements, EROAD encourages 
worker engagement, participation and representation in occupation-
al health and safety management.  Managers across the organisa-
tion address health, safety and wellness matters specific to their 
respective areas as well as pan-organisational issues (such as risks 
associated with working from home).  
In addition, the HSW Committee meet regularly to address pertinent 
HSW matters. This committee has representatives from all EROAD 
locations across the globe, from Executive level to remote sales 
personnel.  
EROAD provides training and self-service resources to support man-
agers’ and employees’ awareness levels about HSW and its applica-
tion in the various locations work is conducted.

HSW training is provided as part of the induction for all employees. 
Furthermore, topical, function-specific and location-based HSW is-
sues are addressed through other training initiatives and awareness 
campaigns. Our training includes ‘classroom’ and online training 
in-house, external service-providers and self-learning resources.

Employee wellness is promoted and overseen by EROAD’s Wellness, 
Inclusion, Social and Health & Safety (WISH) Committee. WISH 
caters for global and local needs, addressing a wide range of issues 
such as fitness, nutrition, and mental health.

EROAD has processes in place to record and investigate occupa-
tional illnesses to determine the root causes and develop prevention 
strategies.

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GRI INDEX

403-7

403-8

Prevention and 
mitigation of oc-
cupational health 
and safety impacts 
directly linked by 
business relation-
ships

Workers covered 
by an occupational 
health and safety 
management system

-

-

403-9

Work-related injuries

-

The scope of the HSW Management systems includes situations 
where EROAD is in control of product installation. This includes 
working with risk identification and mitigation in order to prevent 
any incidents of work-related injuries or occupational illnesses. 
Accordingly, EROAD’s installer network receive comprehensive 
instruction on HSW requirements relating to the work they perform. 
All incidents that arise are investigated to determine how work prac-
tices can be improved to remove/reduce HSW risks.

Addressed under 403-1.

Work-related injuries and illness data is regularly reported to the 
EROAD Board. There have been no high severity incidents and 
illnesses over the past year. 

We are working with our employees to encourage reporting of low 
severity incidents.

TRAINING AND EDUCATION

404-2

404-3

Programs for up-
grading employee 
skills and transition 
assistance programs

Percentage of 
employees receiving 
regular performance 
and career develop-
ment reviews

DIVERSITY AND EQUAL OPPORTUNITY 

Support provided as needed.

100%.

405-1

Diversity of gover-
nance bodies and 
employees

NON-DISCRIMINATION 

124 125

Disclosed in ‘Corporate Governance’ Section.

406-1

Incidents of discrim-
ination and correc-
tive actions taken 

-

None.

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

407-1

-

Operations and 
suppliers in which 
the right to freedom 
of association and 
collective bargaining 
may be at risk 

RIGHTS OF INDIGENOUS PEOPLES

411-1

Incidents of vio-
lations involved 
rights of indigenous 
peoples 

EROAD audits suppliers and ensures that operations and suppliers 
have the right to freedom of association and collective bargaining. 
This information is requested as part of the audit process. 

None.

HUMAN RIGHTS ASSESSMENT

412-1

412-2

Operations that 
have been subject 
to human rights 
reviews or impact 
assessments

Employee training 
on human rights pol-
icies or procedures

LOCAL COMMUNITIES

413-2

Operations with sig-
nificant actual and 
potential negative 
impacts on local 
communities 

-

-

-

SUPPLIER SOCIAL ASSESSMENT 

414-1

414-2

New suppliers that 
were screened using 
social criteria 

Negative social im-
pacts in the supply 
chain and actions 
taken 

38

38

PUBLIC POLICY 

None.

EROAD’s employment contract stipulates adherence to EROAD’s 
Code of Conduct. The Code makes employees aware that EROAD 
will not tolerate any form of discrimination, harassment or bullying 
in the workplace. This includes direct and indirect discrimination in 
relation to sex, marital status, religious belief, ethical belief, colour, 
race, ethnic or national origins, disability, age, political opinion, em-
ployment status, family status and/or sexual orientation.

No negative impacts identified on local communities.

Any significant new suppliers we audit and this includes their social 
practices.

No negative impacts identified. If major breach to EROAD policies, 
we would cease the arrangement. Our policy is to work with suppli-
ers where possible to remedy any negative social impacts.

415-1

Political Contribu-
tions 

144

None.

CUSTOMER HEALTH AND SAFETY 

416-1

416-2

-

-

Assessment of the 
health and safety 
impacts of product 
and service cate-
gories

Incidents of 
non-compliance 
concerning the 
health and safety 
impacts of products 
and services 

All EROAD products are risk assessed for potential health and 
safety impacts to customers; spanning distribution, installation, use, 
maintenance and removal. This risk assessment process begins at 
concept stage and is reassessed through subsequent product devel-
opment phases up to a post launch retrospective.  

Where relevant our product guides highlight HSW requirements our 
customers should be aware of.

None.

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MARKETING AND LABELING

417-3

Incidents of 
non-compliance 
concerning market-
ing communications 

EROAD has identified one incident of non-compliance concerning 
marketing communications. This incident was in relation to an image 
published on EROAD’s New Zealand website that was taken by a 
drone flying close to the Auckland Harbour Bridge. EROAD was 
contacted by the Civil Aviation Authority of New Zealand (CAA) to 
advise and following immediate investigation it was identified that 
the drone operator had breached the following Civil Aviation Rules: 

• 

• 

101.205 (Aerodromes): operated a remotely piloted aircraft (RPA) 
within 4km of an uncontrolled aerodrome (Mechanic Bay, Auckland 
Harbour and Auckland Hospital)  

101.207 (Airspace): operated an RPA without seeking permission to 
launch the drone above the highway. 

No further action was taken by the CCA and EROAD promptly re-
moved the image from the website and educated the employees in-
volved to ensure that a similar incident does not occur in the future.

SOCIOECONOMIC COMPLIANCE 

419-1

Non-compliance 
with laws and regu-
lations in the social 
and economic area

None.

EROAD ANNUAL REPORT 2021MENU

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GLOSSARY

Glossary

ANNUALISED MONTHLY RECURRING 
REVENUE (AMRR) 
Annualised monthly recurring revenues (AMRR) is 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. 

AUDITOR 
KPMG

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.

COMPANIES ACT 
Companies Act 1993

COMPANY 
EROAD Limited

COSTS TO ACQUIRE CUSTOMERS (CAC) 
Costs to Acquire Customers (CAC) is non-GAAP measure of 
costs to acquire customers. Total CAC represents all costs 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) 
Is 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 reported in Note 
4 Expenses of the Financial Statements.

CUSTOMER RETENTION RATE 
Asset Retention Rate excluding contraction in existing customer 
Total Contracted Units when customer remained with EROAD.

EBITDA 
Is a non-GAAP measure representing Earnings before Interest, 
Taxation, Depreciation and Amortisation (EBITDA). Refer 
Condensed Consolidated Statement of Comprehensive Income 
in Financial Statements.

EBITDA MARGIN 
Is a non-GAAP measure representing EBITDA divided by 
Revenue.

EHUBO1 AND EHUBO2 (GEN1 AND GEN2)  
EROAD’s first and second generation electronic distance 
recorder which replaces mechanical hubodometers. Ehubo is a 
trade mark registered in New Zealand, 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.

FREE CASH FLOW 
Is a non-GAAP measure representing operating cash flow and 
investing cash flow reported in the Statement of Cash Flows.

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 3 of Financial Statements. 

FY 
Financial year ended 31 March

GROUP 
EROAD Limited and its subsidiaries

HARDWARE ASSETS
Any physical asset required to be fitted into or onto a 
customer’s vehicle or asset in order to facilitate the provision of 
EROAD’s SaaS services. These include Ehubo units, accessories 
and hardware assets under construction. 

HEAVY VEHICLE 
A truck, or a truck and trailer, weighing over:3.5 tonnes in New 
Zealand (required to pay RUC); 12 tonnes in Oregon (required to 
pay for WMT), for non WMT purposes means Class 3+, 10,000 
pounds or greater; or 4.5 tonnes in Australia.

INTERNATIONAL FUEL TAX AGREEMENT 
(IFTA)   
A cooperative agreement between all states (excluding Alaska 
and Hawaii) of the United States, and the Canadian provinces, 
designed to make it simpler for inter-jurisdictional carriers to 
report and pay fuel excise taxes, requiring only one fuel licence to 
operate across multiple jurisdictions.

INTERNATIONAL REGISTRATION PLAN (IRP) 
An agreement between all states (excluding Alaska, Hawaii 
and Washington D.C.) of the United States, and the Canadian 
provinces, for the registration of inter-jurisdictional vehicles. 
Registration fees are paid to a fleet’s base jurisdiction, which 
then distributes them to other jurisdictions based on the miles 
travelled in each member jurisdiction. Refer Revenue Note 3 in 
the Financial Statements.

LISTING RULES 
The listing rules applying to the NZX Main Board as amended 
from time to time.

MONTHLY SAAS AVERAGE REVENUE PER 
UNIT (ARPU) 
Is a non-GAAP measure that is calculated by dividing the 
total SaaS revenue for the year reported in Note 3 of the FY21 
Financial Statements, by the TCU balance at the end of each 
month during the year.

RECURRING REVENUE 
The Software as a Service (SaaS) revenues EROAD recognises 
on a recurring monthly basis in accordance with the groups 
revenue recognition policy. 

ROAD USER CHARGES (RUC) 
Charges payable under the New Zealand Road User Charges Act 
2012 in respect of the distance travelled by a RUC vehicle on a 
road. In New Zealand, RUC is payable for heavy vehicles and all 
vehicles powered by a fuel not taxed at source. The charges go 
towards the cost of repairing roads.

NZ GAAP OR GAAP 
New Zealand Generally Accepted Accounting Practice.

NZ IAS  
NZ equivalent of International Accounting Standards that 
prescribe the basis for presentation of general purpose financial 
statements.

NZ IFRS 
New Zealand equivalents to International Financial Reporting 
Standards.

NZX 
NZX Limited.

NZX MAIN BOARD 
The main board equity security market, operated by NZX.

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.

TOTAL CONTRACTED UNITS
Represents total units subject to a customer contract and 
includes both Units on Depot and Units pending instalment.

UNIT 
A unit is either an EROAD Ehubo, Tubo or Etrack wired device.

EROAD ANNUAL REPORT 2021 
 
 
 
 
 
 
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EROAD ANNUAL REPORT 2021

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Information  
for shareholders

Managing your shareholding online
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.  

Alternatively, enquiries may be addressed to the Share register. 

Computershare Investments Services Limited 
Private Bag 92119, 
Victoria Street West Auckland 1142, 
New Zealand 

Investor Information
Our investor centre www.eroadglobal.com/global/investors is a good source 
of information about what’s happening at EROAD.  Here you will find investor 
communications, information about our latest operating and financial results and news.  

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

7618 SW Mohawk Street 
Tualatin, OR 97062 
USA

Level 36, Tower 2 
Collins Square 
727 Collins Street 
Docklands, VIC 3008 
Australia

INVESTOR RELATIONS 
AND SUSTAINABILITY  
ENQUIRES 

Address: EROAD Limited,
PO Box 305 394
Triton Plaza
North Shore, Auckland

Email: investors@eroad.com 
Telephone: 0800 437 623 

MANAGING YOUR  
SHAREHOLDING ONLINE

SHARE REGISTER - 
NEW ZEALAND 

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 

Bank of New Zealand

China Construction Bank

National Australian Bank 

Wells Fargo

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