EROAD Limited

Good morning, guys. My name's John Scott. I'm the executive chair of eRoad. Welcome you to the eRoad financial results for the financial year 2026. With me, I have Ciara, our CFO, and Ryan, our chief transformation officer. So, we'll get into it. So, today we've got about 30 minutes of us talking and hopefully 15 minutes of you guys asking questions, and we'll try and get you back to your day in about 45 minutes. In a slightly unusual term, we'll start a financial report with an overview of all of the strategy. The reason we're doing this is because of just how much of this has actually hit our financials and it's important for you to understand. So I took over or joined the company in March and I took over as executive chair in October. Over the eight months, I've got to meet a lot of our customers and realise what just a wonderful little business we have here. We have unbelievable product markets. This in New Zealand, a really, really easy to understand value proposition. But the thing I've learned most of all is you have to talk about our business by country because the dynamics are completely different. You'll see there across the top, the revenue's been stable. We've undertaken a whole bunch of initiatives to get back to basics and I'll talk to them. We're clearly focused on that Australia, New Zealand region. We have this Back to Basics or customer-focused program around just restoring our key metrics. And there is a headline which a lot of people joined during the year for eROAD, which is the eRAC opportunity. And we just wanted to sort of signal that it's a significant opportunity but represents less than 5% of our objects. This is a new slide for us. It'll be the first time many of you have seen that. And it's in line with the narrative that each country is different and has a completely different dynamic. And again, you can see the trends there. New Zealand is obviously the biggest bulk of our revenue and it's sort of flat to modest growth. You can obviously see the American situation where we've gone from growth to declining over the three years and it's reduced the proportion of our sales. And then you can see the Australian business which is obviously experiencing really good double digit growth. So I'll pass over to Ciara to give you some flavour for that detail.

Hi everyone. I'm Ciara McGuigan as John said CFO. I've been with the group nearly nine months now. Thanks for joining us today. The results reflect a year of review and reset. Consequently, non-cash accounting adjustments of $152.9 million were made to the financial statements in the year. They're defined in some detail on page 35 towards the end of the presentation. Turning to the headline numbers for FY26. Normalised free cash flow margin is 7.4%. The free cash flow that underpins that calculation is 14.4 million New Zealand dollars when normalised for the impact of the 4G upgrade programme in New Zealand, which has now closed. Reported revenue was 195.2 million. Growth was muted by softer conditions in North America and previously disclosed customer non-renewals. ARR closed at 174.3 million. While lower year-on-year, The reduction was concentrated in North America, with ANZ continuing to perform strongly and deliver growth across higher value products and enterprise customers. Normalised EBIT was 2.9 million New Zealand dollars, lower year on year owing to investment in resources to improve platform stability, increase service levels and deliver on product enhancements. While the top line numbers are below where we want them to be, The year also included decisive action to reposition the business to strengthen operating discipline and focus investment where we see the strongest long-term returns. I'll hand you now to Ryan.

Thanks, Ciara. I'm Ryan Brosnahan. I'm the Chief Transformation Officer and I started with eRoad in October to help establish this transformation program. This represents it on this slide here. and we've got a clear and focused plan that we're executing against. The slide shows the key themes that we are executing against along with the key measures that we're using to both measure our progress against this work and to also prioritise the work and ensure we're optimising our allocation of capital. The first three pillars are all about getting fit to play. The first one, operational excellence. Ensure we stabilise our platforms and redesign and automate scalable processes and ensure we have real time dashboards available to manage the company and make optimal decisions. The second pillar is all about product competency. So uplifting any gaps in our product suite to meet our target markets. The third is around customer intimacy. which as John has already mentioned, were reorientated to a regional model to ensure we are making decisions close to our customers and also recognising the fact that our three countries are each quite different businesses that are at different stages of maturity. This pillar also includes improving customer onboarding and customer support. The final two pillars are important options on our future. The AI capability we are embedding across the business both creates operating leverage and also mitigates disadvantages of scale. While ERAC, which we'll talk more about later in the presentation, is a growth option that we are well positioned to execute on, given our history. These pillars are underpinned by enterprise-wide uplifts in leadership and capability, platform modernization, and data. These uplifts are critical to successfully executing the plan. And we're in the thick of this execution. As you can see on this slide, we started in July last year and are achieving solid progress towards objectives across all of these pillars.