Announcement
GENERAL: ERD: EROAD's win signals market leadership
02:10pm
ERD
01/07/2019 14:10
GENERAL
NOT PRICE SENSITIVE
REL: 1410 HRS EROAD Limited
GENERAL: ERD: EROAD's win signals market leadership
1 July 2019
EROAD has been chosen Best Large Business (Services) in the Air New Zealand
Cargo Export NZ 2019 Awards. This annual award ceremony was held in Auckland
late last week and recognizes success by net return to the New Zealand
economy.
This accolade comes just a few weeks after EROAD installed its 100,000th
unit, taking less time to reach six figure unit sales than other global
telematics industry giants like Teletrac Navman or PeopleNet.
This is a clear indication of EROAD's capability of remaining a significant
player within a global industry anticipated to be worth US$750 billion by
2030, according to a report by McKinsey and Company. This report identified
the willingness of governments to mandate regulatory telematics services
because of the potential to increase road safety, improve driving behavior
and align insurance premiums with actual need.
Although many commercial vehicle operators have been early to recognize the
improved fuel economy, efficient regulatory compliance and more effective
management of vehicle fleets delivered through telematics, the report also
outlines the low penetration of telematic services within each country.
While the total addressable market is sizeable, this is not an industry where
many providers survive. Few companies can self-fund the R&D investment to
maximise advancements in technology and survive the rigors of scalability. It
is also an industry where New Zealand is overly represented. Navman, Telogis,
EROAD, International Telematics Holdings Limited/Imarda (now merged forming
Coretex) are all successful global telematic companies originating from these
remote southern isles.
For many years Navman was the technology poster child grown by Steven Newman
and Sir Peter Maire into four business units (Marine Electronics, Telematics,
Navigation and Precision GPS Systems), developing more than 400 products -
many of which were world firsts. Starved of funding for future growth led to
Navman selling to Brunswick. Telogis joined forces with US-based companies
before being acquired. International Telematics Holdings Limited (ITHL)
merged with Imarda to form Coretex. EROAD (led by Steven Newman) solved this
problem by becoming listed on NZX providing access to capital for fund future
growth.
EROAD's business model has been disruptive from the start, pioneering
regulatory telematics. Entering new markets on the back of transportation
regulatory reform, simultaneously delivering benefits to transport
businesses. The company implemented the world's first GPS based nationwide
Road User Charging system; North America's first independently verified
Electronic Logging Device; collaborated with Australasia's largest general
insurer on an award-winning insurance waiver program. Then achieving six
figure unit sales earlier than the industry norm and shortly after announcing
financial year results that included a healthy 40% increase in revenue, 48%
increase in EBITDA and an increase of 24% in total contracted units.
In addition to the learnings carried forward from Navman days, the company
has been investing in scalable systems and processes to ensure it is well
positioned for future growth. This includes strategic initiatives that
consider inorganic expansion through acquisition, whilst maintaining focus on
customer and regulatory requirements.
The judging panel for the ExportNZ awards acknowledged the solid historic
export revenue growth performance of EROAD, adding that the company had a
great business model, with a sustainable innovation machine and committed
development team.
As well as receiving the award for Best Large Business, EROAD was also a
finalist in the Innovation Category. The judging panel noted EROAD's robust
development approach and the benefits achieved from an aligned and committed
team commenting "We were able to clearly see that systematic innovation was
an ingrained method of work for EROAD, with all staff given the scope,
support and environment to succeed."
"Receiving this acknowledgement is just awesome and a reflection of our
talented staff and strengthened leadership team. Together, they've enabled us
to maintain double digit growth while making the changes required to deliver
a scalable business" said Steven Newman, CEO EROAD.
EROAD now operates across three markets - New Zealand, North America and
Australia, under an expansion plan carefully executed alongside regulatory
reform. The company's technology platform, originally built for regulatory
compliance, delivers bank-grade security, accuracy and reliability. While the
company has expanded into fleet management and other commercial telematic
services, this unique and secure foundation remains valued by customers,
evermore so in this age of data privacy and cyber-security.
The future for global telematics is expansive and one does not need to look
far to find examples where Kiwis disrupt and then lead an industry.
ENDS
End CA:00336963 For:ERD Type:GENERAL Time:2019-07-01 14:10:31
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