EROAD : FY23 Reconciliation of GAAP and Non-GAAP Measures

About this update from Eroad Limited

EROAD (NZX: ERD ASX: ERD) FY23 RECONCILIATION OF GAAP AND NON-GAAP MEASURES 2023 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION EBITDA is a non-GAAP measure representing Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA). EBITDA ($m) 31-Mar-2023 31-Mar-2022, restated Total comprehensive loss for the period (0.3) (9.9) Add back: Items that are or may be reclassified subsequent to profit or loss Income tax benefit Net financing costs Depreciation of property, plant and equipment Amortisation of intangible assets Amortisation of contract and customer acquisition assets Earnings before interest, taxation, depreciation, and amortisation (EBITDA) 2.7 (0.3) 2.1 0.8 (6.8) (3.2) (17.2) (10.4) (17.9) (11.0) (8.4) (6.8) 45.2 21.0 PAGE 2 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION Free cash flow is a non-GAAP measure representing operating cash flow and investingcash flow reported in the Statement of Cash Flows. For the purposes of this presentation, payments for the acquisition of Coretex have been excluded Free cash flow ($m) 31-Mar-2023 31-Mar-2022, restated Cash flows from operating activities Cash received from customers 165.2 109.4 Payments to suppliers and employees (128.9) (92.2) Payments for contract fulfilment assets (7.6) (5.7) Interest received 0.3 0.1 Interest paid (4.9) (2.9) Income taxes paid - (0.1) Net cash inflow from operating activities 24.1 8.6 Payments for investment in property, plant and equipment Payments for investment in intangible assets Payments for investment in contract fulfilment assets Payments for investment in costs to obtain contracts Payments for investment in subsidiary (including contingent consideration), net of cash acquired (27.5) (28.4) (28.2) (24.9) - - (2.9) (3.2) (8.5) (72.4) Net cash outflow from investing activities (67.1) (128.9) Deduct: Coretex acquisition payments (8.5) (72.4) Free cash flow (34.5) (47.9) PAGE 3 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION Free cash flow to the firm is a non-GAAP measure representing operating cash flow and investingcash flow net of interest paid and received. For the purposes of this presentation, payments for the acquisition of Coretex have been excluded Free cash flow to the firm ($m) 31-Mar-2023 31-Mar-2022, restated Cash flows from operating activities Cash received from customers 165.2 109.4 Payments to suppliers and employees (128.9) (92.2) Payments for contract fulfilment assets (7.6) (5.7) Interest received 0.3 0.1 Interest paid (4.9) (2.9) Income taxes paid - (0.1) Net cash inflow from operating activities 24.1 8.6 Payments for investment in property, plant and equipment Payments for investment in intangible assets Payments for investment in contract fulfilment assets Payments for investment in costs to obtain contracts Payments for investment in subsidiary (including contingent consideration), net of cash acquired (27.5) (28.4) (28.2) (24.9) - - (2.9) (3.2) (8.5) (72.4) Net cash outflow from investing activities (67.1) (128.9) Deduct: Interest received 0.3 0.1 Interest paid (4.9) (2.9) Coretex acquisition payments (8.5) (72.4) Free cash flow to the firm (29.9) (45.1) PAGE 4 RECONCILIATION OF NON-GAAP FINANCIAL INFORMATION • FY23 EBIT is normalized for; • a one-off acquisition accounting adjustment of $9.6m relating to the Coretex merger, and • non-recurring integration costs of $3.4m relating to the Coretex merger • FY22 EBIT is normalized for a Normalised EBIT ($m) 31-Mar-2023 31-Mar-2022, restated Revenue 174.9 114.9 Operating expenses (129.7) (93.9) Earnings before interest, taxation, depreciation and 45.2 21.0 amortisation (EBITDA) • one-off acquisition accounting adjustment of $1.3m relating to the Coretex merger, • non-recurring integration costs of $4.0m relating to the Coretex merger, Depreciation of property, plant, and equipment Amortisation of intangible assets Amortisation of contract and customer acquisition assets (17.2) (10.4) (17.9) (11.0) (8.4) (6.8) • non-recurring due diligence costs of $2.0m relating to the Coretex merger, and • non-recurring transaction costs of $1.6m relating to the Coretex merger. Earnings/(loss) before interest and taxation (EBIT) 1.7 (7.2) Deduct: Acquisition accounting revenue (9.6) (1.3) Add back: Integration costs 3.4 4.0 Due diligence costs - 2.0 Transaction costs - 1.6 Normalised EBIT (4.5) (0.9) PAGE 5

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