Wellington Drive 2018 Annual Shareholder Meeting Addresses

Wellington Drive | Annual Meeting - 30 May 2018
Wellington Drive Technologies
Annual Meeting
30 May 2018
“Get Connected”

There are statements in this document that are “forward-looking statements”. As these forward-looking statements are predictive in nature,
they are subject to a number of risks and uncertainties relating to Wellington, its operations, the markets in which it competes and other
factors (some of which are beyond the control of Wellington). As a result of the foregoing, actual results and conditions may differ materially
from those expressed or implied by such statements. In particular, Wellington’s operations and results are significantly influenced by the
extent to which energy efficient motor technology is promoted in Wellington’s key markets, competitor product development and demand
and pricing, fluctuations in key commodity prices or costs in the countries of Wellington’s suppliers, availability of key components, relative
exchange rates and profitability of customers, all of which can have a substantial impact on Wellington’s results of operations and financial
condition. Other risks include customer concentration risk and misuse of, and challenge to, Wellington’s intellectual property.
All references in this document to $ or “dollars” are references to New Zealand dollars unless otherwise stated.
EBITDA (i.e. Earnings before Interest, Taxation, Depreciation, Amortisation and Impairment) is a non-GAAP earnings figure that equity
analysts tend to focus on for comparable company performance analysis. The Company considers that it is a useful financial indicator
because it avoids the distortions caused by the differences in amortisation and impairment policies. EBITDA is calculated as the loss before
interest and taxation, less depreciation, amortisation and impairment.
Important Disclaimer
Wellington Drive | Annual Meeting - 30 May 2018

Chairman &
CEO Commentry
Wellington Drive | Annual Meeting - 30 May 2018

Video
Wellington Drive | Annual Meeting - 30 May 2018

Wellington Drive | Annual Meeting - 30 May 2018
The Wellington business is changing.

We now develop hardware platforms
complemented by software and digital services.

Wellington Drive | Annual Meeting - 30 May 2018
We have built a new
IoT business with US$10m+
of IoT sales in two years

New Products
contributed
US$15m
in sales
$538,000
positive EBITDA
IoT
Data revenues
US$0.7m
Revenue
increased
23%
Results
Wellington Drive | Annual Meeting - 30 May 2018

Wellington Drive | Annual Meeting - 30 May 2018
2014201520162017
5
0
15
20
25
30
35
10
New Product Growth
New products are already 48% of revenue
Legacy Products
New Products
USD
$15m
245% YOY
US$m

Wellington Drive | Annual Meeting - 30 May 2018
Consistent Growth
Revenue by Business
2014201520162017
US$m
5
0
15
20
25
30
35
10
IoT
AMV Motors & Accessories
EC Motors
IoT was
83%
of growth in
2017

Wellington Drive | Annual Meeting - 30 May 2018
Continued Growth
Gross margins continue to increase
2.5
0.0
7.5
10.0
12.5
15.0
5.0
2014201520162017
18%
3.2
5.3
8.5
10.3
21%
24%
24%
GM%
Gross Profit
3x
GM dollars
since 2014
NZ$m

Wellington Drive | Annual Meeting - 30 May 2018
Improving Earnings & Cashflow
Year over
Year
EBITDA
improvement
0
4
5
3
2
1
(1)
(2)
(3)
(4)
(5)
20142015201720162018
NZ$m
$2m
$4m
EBITDA Top end guidance
EBITDA Low end guidance

Wellington Drive | Annual Meeting - 30 May 2018
Productivity Growth
Revenue per employee
2014
100
0
300
400
500
600
700
200
201520162017
$k
NZD
$646k

Wellington Drive | Annual Meeting - 30 May 2018
Strategic Journey
Vision 2022
20172014/162013/142011/13
Beyond the Motor
IoT &
Data Services
Beyond the Motor
SCS & ECR2
Platforms
Supply Chain
Focus Operational
Excellence
Turnaround Focus
Restructuring &
Cost Reduction
2018
Launch
2022 Vision
2022 Growth Strategy

Wellington Drive | Annual Meeting - 30 May 2018
2017 Lessons Learned
Opportunity for Improvement
• Management of extended lead-times
• Software development capacity
• Under-invested in key growth regions
What went right
• ECR2 growth & SCS Connect growth
• iProximity partnership
• Demand for IoT solutions

Wellington Drive | Annual Meeting - 30 May 2018
COOLERS
Smarter Retail Solutions
Solutions Not Products

Retail Store
Consumer
App
Retail Partner

App
Sales Force
App
Service

App
Storekeeper
App
Wellington Drive | Annual Meeting - 30 May 2018
$+
Our Apps Drive Customer Adoption
Consumer App
Retail Partner App
SalesforceApp
Service App
Storekeeper App
Apps
TabletDesktopMobile

Our Smarter Cooler
Software
• User Apps
(retailer, consumer,
salesperson, technician)
• Cooler Optimisation
• iProximity -
(Proximity marketing)
• Asset Tracking
• Maintenance
Management
• HACCP Logging
• Sales performance
Wellington Drive | Annual Meeting - 30 May 2018
COOLERS

Wellington Drive | Annual Meeting - 30 May 2018
Our Apps Drive Consumer Engagement
Proximity Marketing
Influence
consumer’s
decision at POS
Retailers access
to information
Brand
Promotion
Increase
product sales
1. 2. 3. 4.

Wellington Drive | Annual Meeting - 30 May 2018
Our Business Model
Cash generative features
$
1.2.3.4.
Digital Services
• iProximity software and services
• Multi year contracts paid for
in advance as part of solution
bundle
Working Capital
• Accounts Payable back-to-back
with Accounts Receivable
• Where possible Customer
invoice factoring
• Inventory turning 8+ times
Outsourced Supply Chain
Hardware production managed by
specialists. Suppliers purchase
materials, hold stock, back-to-
back terms with customers
Data Services
• Wellington SCS data &
reporting
• Multi year contracts paid for
in advance as part of solution
bundle

Wellington Drive | Annual Meeting - 30 May 2018
2015201420162017
USD
$24.6m
USD
$31.2m
CAGR
2015-17
+22
%
CAGR
Revenue Expansion
Continued growth achieved
USD
$17.4m
USD
$14.8m

Wellington Drive | Annual Meeting - 30 May 2018
Retail 4.0Global
Refrigeration
63b by 2021
EC Motors
$48b by 2023
Beverage
Refrigeration
Global IoT
$157b 2016 to
$457b in 2021
Smart Cities
202m 2017 to
1.4b 2026
28%
CAGR
24%
CAGR
19%
CAGR
12%
CAGR
6-9%
CAGR
4%
CAGR
Revenue Growth Potential
Wellington is entering higher growth markets

Wellington Drive | Annual Meeting - 30 May 2018
Retail 4.0
Revenue Growth
Potential
Global
Refrigeration
EC MotorsBeverage
Refrigeration
Global IoTSmart Cities
A 15% growth rate could
translate into revenues
of $100m+ in 5 years
28%
CAGR
24%
CAGR
19%
CAGR
12%
CAGR
6-9%
CAGR
4%
CAGR
15%
CAGR
22%
CAGR
WDT Actual
2015-17

Wellington Drive | Annual Meeting - 30 May 2018
The Future
Of Retail
Source: IBM presentation - The New Retail Revolution: Connected Store

Wellington Drive | Annual Meeting - 30 May 2018
Our Vision
Deploys a low cost IoT ecosystem in
any retail environment delivering
information, intelligence and increased sales
Smarter retail
solutions

What’s Next?
Possible Adjacent Markets
Current Markets
Consumer Facing Refrigeration
Carbonated
Soft Drink
(CSD) bottle
cooler
Supermarket
Display

Cases
Refrigerated
Transport
Food
Service
Ambient
Groceries

& Snacks
Food Quality
& Loss
Beer
Coolers
Ice cream

and Dairy
Wellington Drive | Annual Meeting - 30 May 2018

Strategic Priorities
1. Complete the development of Wellington’s 2022 vision
2. Complete and leverage the iProximity acquisition to
support sales growth and end-market expansion
3. Develop market opportunities for Wellington’s IoT
solutions beyond the carbonated soft drink market
4. Commence new product developments for IoT
hardware, software and EC motors
5. Upgrade company-wide management information
system to enable growth strategy
Focus on new
markets & solutions
.....long term
profitable growth
Wellington Drive | Annual Meeting - 30 May 2018

Forward Perspective
H1 2018
• Positive EBITDA
• Continued growth of ECR2
and SCS
• Component shortages
impacting sales and cost
FY 2018
• Revenue growth of 20-30%
• EBITDA profit of $2-4m, net
profit targetted
• Complete & integrate
iProximity acquistion
• Component shortage issues
will last the year
2019
• Targetting revenue growth
of 20-30%
• Repayment of
Smartshares debt facility
• Investing in IoT and non
bottle cooler markets
• Growth in digital marketing
services
2018 Priority
.......IoT market
development
Wellington Drive | Annual Meeting - 30 May 2018

Thank you for your support
and attendance
“Get connected”
Wellington Drive | Annual Meeting - 30 May 2018

---

® is a registered Trade Mark of Wellington DriveTechnologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9049
21 Arrenway Drive, Rosedale, North Shore City 0632, New Zealand
PO Box 302-533, North Harbour, North Shore City 0751, New Zealand
Telephone: +64 9 477 0415 Facsimile: +64 9 479 5540
Email:info@wdtl.comWebsite:www.wdtl.com
Page1of26
Wellington Drive Technologies Limited
ANNUAL MEETING
30May2018
ADDRESSES TO THE MEETING

® is a registered Trade Mark of Wellington Drive Technologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9049
Page2of26
Notes:
® is a registered Trade Mark of Wellington Drive Technologies Ltd
There are statements in this document that are “forward-looking statements”. As these forward-looking statements are predictive in nature, they
are subject to a number of risks and uncertainties relating to Wellington, its operations, the markets in which it competes and other factors (some
of which are beyond the control of Wellington). As a result of the foregoing, actual results and conditions may differ materially from those
expressed orimplied by such statements. In particular, Wellington's operations and results are significantly influenced by the extent towhich
energy efficient motor technology is promoted in Wellington's key markets, competitor product development and demand and pricing, fluctuations
in key commodity prices or costs in the countries of Wellington's suppliers, availability of key components, relative exchange rates and profitability
of customers, all of which can have a substantial impact on Wellington's results of operations and financial condition. Other risks include customer
concentration risk and misuse of, and challenge to, Wellington's intellectual property.
All references in this document to $ or "dollars" are references to New Zealand dollars unless otherwisestated.
EBITDA (i.e. Earnings before Interest, Taxation, Depreciation, Amortisation and Impairment) is a non-GAAP earnings figure that equity analysts
tend to focus on for comparable company performance analysis. The Company considers that it is a useful financial indicator because it avoids
the distortions caused by the differences in amortisation and impairment policies. EBITDA is calculated as the loss before interest and taxation,
less depreciation, amortisation and impairment.

® is a registered Trade Mark of Wellington Drive Technologies Ltd in New Zealand
Wellington Drive Technologies LtdWT9049
Page3of26
Before I beginmy presentation, we have a short video to show you.
Our company was recently named as a finalist in the NZ Hi Tech Awards Innovative
Software category. The awards evening was held last week on 25
th
of May and while
we weren’t awarded as the winners of this category we were showcased alongside
other amazing tech companies like Dexibit (who won the software prize), Vensa
Health, Enatel Motive Power, Banquer, IBM and Invenco (who won the Company of
theYear).
Being a finalist and recognized alongside other premier New Zealand tech companies
is a great acknowledgement for our team and the progress we have made, and a
reward for all the hard work put into transforming the business over the last few
years. Of course, only a handful of years ago the words ‘software’ and ‘Wellington
Drive’ would not have been included in the same sentence.
https://www.youtube.com/watch?v=UwW1OpGaCjs

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Page4of26
Today, in addition to our motors, Wellington is a hardware-enabled software
company, developing hardware platforms such as SCS Connect and SCS Click,
complemented by software and digital services–tools that help our customers
improve their businesses.
Asa business,Wellingtonischangingrapidly and injust two years we have built
an IoT (Internet of Things) business within the company, which has contributed
over US$10 million of sales in just two years.

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Page5of26
After we have discussed our 2017 results, we will share our thinking on a
refreshed strategy, aimed at continued growth of the IoT and motor business.
We are helping our customers move towards a digital future so that they can
achieve greater energy efficiency, higher sales growth and their own digital
transformation goals.
Now let’s review how we performed in 2017.
In 2017 our revenue continued to grow at an impressive rate of 23%, which
equates to a 22% average growth rate since 2015. Our EBITDA performance
continued to improve, with a $234,000 increase compared to 2016.
IoT Data revenues increased by $500,000 to $700,000 demonstrating the
building annuity value in data revenues.
We also announced our new partnership with iProximity, which we will discuss
later in the presentation.

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Page6of26
The company surpassedUS$30 million of revenue for the first time, with this
continued growth driven by new products, namely the ECR2 motor, SCS
controllers & IoT data.
These new products contributedUS$15 milliondollars of revenue, which already
equates to 48% of total revenue. They had their first year in market only two
years ago and we expect the growth trend to continue in 2018.
Breaking that down further. Our SCS™ Connect volume grew 308% and ECR2
motor volume grew by 282%.TotalECmotorvolumesgrewby6%overall off a
much larger base.
Our revenuegrowthwasachieved with new business wins and with existing
bottle cooler customers. Importantly, we are also winning newsupermarketand
foodserviceOEMcustomers.

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Looking at how our business is now split between IoT and Motors, we can see
that the IoT business is rapidly developing into a larger part of our growth
strategy and, as a business, is growing at a significantly faster rate than motors.
This is consistent with external market growth data for the global IoT market.
Indeed 83% of growth came from the IoT segment.
IoT consists of SCS™Connect, SCS Clickand data services and the developing
proximity-based marketing solution sourced from iProximity. IoT contributed
US$7.9m dollars, up from US$2.4m in 2016, which represents 25% of total
revenues.
One of the cashflow benefits of the IoT data model is that we deliver multi-year
data agreements which are paid for upfront, which translated into US$713,000
of revenue during 2017.

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Page8of26
Moving to Gross Profit performance.
So how does our growth translate to improvement in margin contribution?
Gross Profit dollars have increased threefold since 2014 and surpassedNZ$10m
for the first time. Thisdemonstrates the increasing contribution from our new
products and services.
Gross Margin percentage was flat compared to 2016 at 24%, slightly lower than
expecteddueto some delays in accessing lower SCS hardware manufacturing
cost from our strategic partner East West inVietnam. This will be resolved by the
end of 2018 as we expect to be building close to 100% of SCS in the Vietnam
factory by the end of this year.

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Page9of26
On the bottom line, we improved EBITDA profit to $538,000-a $234,000
improvement on 2016.
The loss for the year was $1.98 million after charging $537,000 of financing costs
to preference shares settled in May 2017. This was a $498,000 improvement on
the loss recorded in 2016.
Our profit numbers were lower than our initial forecast due to third quarter
customer demand not meeting expected levels, coupled with late in the year
demand deferrals and a lower margin sales mix throughout the year.
The board also felt it was important to continue to invest in supporting the high
sales growth in the IoTbusiness. This was reflected in an increased spend on
headcount, which is important to enhance our talent base and grow capability.
Our strategy is to support higher growth rates, in the 20% to 30% range, by
investing in new skills, new solutions and new markets. We believe this will
enhance shareholder value versus a more defensive approach that focusses on
stabilising revenues and reducing operating costs to deliver profits.
We believe this investment approach will best expand profits over the medium
term and deliver superior positive operating cash flows.

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While we are investing in growth, we are taking a responsible productivity-based
approach to investing in our talent base. Our revenue growth of 20-30% delivers
a productivity improvement that can be seen in our revenue-per-employee
metric. This translates to revenue per employee doubling since 2014.
This metric includes the addition of 12 new peopleover that period. Our total
company headcount now stands at 67.

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We are proud of our growth and new business achievements in 2017. Our
journey into new markets and the acquisition of new customers is informing
how we should best adapt our growth plansgoing forward.
Before I hand over to Greg, I will introduce you to some of the work we are doing to
refresh our long-term growth strategy. This will lead us towards finalizing and
communicating what we are calling Vision 2022.
Over the past seven years the company’s strategy has transformed, from an
initial turnaround plan focused on refrigeration motors, to a focus on new
products beyond the motor. Those products allow us to enter new market
segments, such as supermarket display cases and IoT.
Our 2013‘Beyond the Motor’ vision has now been achieved. We are now selling
at scale to large food and beverage brands with both our ECR2 motor platform
and our IoT solutions.
Wellington is no longer just a commercial refrigeration motorcompany focused
only on bottle coolers. We are entering markets that are growing at close to 30%
with our IoT and digital solutions.
Thenextfiveyearswilllook quite different to the last five. We will continue to
invest in new technologies and enter new markets with even stronger growth
projections.
I will now hand over to Greg to talk more about 2017 performance and to give
you further detail and insights on our developing plans.

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Thanks Tony and welcome everyone
Before I continue with Tony’s theme of what is new in thebusiness and our
developing new growth vision, I will talk about lessons learned in 2017.
To highlight what we think are two of the most important lessons learned:
Firstly, within our hardware business we saw component lead-times pushing out well
beyond 12 months. In many cases we have had to place orders with suppliers well into
2019. This is a result of strong macro demand in the global electronics industry, which
caused the loss of some revenue in fourth quarter 2017 and into the first half of 2018.
In cooperation with our main electronics supplier East West, we have invested heavily
in additional raw material stocks and are adding supply chain staff in East West and
New Zealand to support increased workload. We have developed new relationships
with alternate component suppliers and are re-designing our hardware to use more
readily available components.
Secondly, in our IoT business, as well as in our sales regions, we are seeing several
compelling growth opportunities that we cannot readily address due to resource and
skill limitations. This will be addressed over time as we add new people to the team,
especially in software development, electronics design and IoT business development.

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In 2017 we added eight new people to the team, which helped us deliver on ambitious
growth targets. In 2018 we intend to add a further 14 people distributed across all our
required skill areas.
Our Vision 2022 will address these skill and capability gaps head-on, because if there is
a high return opportunity within our target market we never want to turn it away!
So how is our new vision for growth developing?
Our refreshed growth vision is underpinned by the development of abroad
rangeofbranded solutions,designed to servetheretailfoodandbeverage
markets. A broader range of solutions ultimately increases our ‘share of
revenue’ inside the retail point of sale equipment, whether it's a cooler, a food
display shelf or other equipment that sells or distributes product to the
consumer.

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We have an ‘APPs Centric’ approach. Our APPs provide the platform to deliver a
range of services to customers. We have developed these in house and they
include solutions like SCS™ Field, SCS™ SalesForce and SCS™ Report and the
newly developed SCS™ Retailer APP.
The new Retailer APP enables the store manager or retailer to measure, control
and improve the performance of in-store systems.
Through APPs, when combined with SCS Connect or other IoTconnectivity
solutions, we are gaining more share of value inside retail point of sale
equipment.

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Page15of26
An example of Wellington’s retail solution portfolio is our cooler fleet
management platform which we have brandedSmarter Coolers.
This platform delivers data and reporting services built around SCS.

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Page16of26
How does the new iProximity acquisition complement our existing SCS solution?
The iProximity platform, which is part of our Smarter Coolers solution, is built on
the Cloud, providing customers theability to engage directly with theconsumer,
manage large promotional campaigns, and deliver contentatthe‘pointofsale’in
frontofthecoolerorfooddispenser. The integrated solutionprovides a toolset
that helps food and retail brands deliver increased consumer sales.
During2017 our primary focus was marketing and promoting the new iPX™
platform offering.Early pilotsaleswereplannedtocommencein2018. And I can
tell you that we have received our first order in Q2 2018.
We are alreadyproving that this solution-based strategy works with the
previously mentioned strong growth rates in both SCS and EC motor platforms.

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Page17of26
Our operating model has been developed to improve cash generation. This gives
us significant growth leverage, and onceat scale will allow us to self-fund
organic growth.
The four main aspects of our operating model are:
Number 1-A digital service model for iPX consumer engagement, with software
and service on multi-year contracts paid for in advance.
Number 2–Apositive working capital structure with back-to-back terms and
high targets on inventory velocity.
Number 3-An outsourced supply chain where suppliers purchase and manage
materials.
Number 4-An IoT data reporting service with multi-year service agreements
paid for in advance.
An example of our increasing capital efficiency can be seen during 2017. Our
strong focus oninventorymanagement resulted in 8.5 inventory turns in 2017
compared to 7.8 in 2016.

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Page18of26
Overall, operating cash flow was a $1.3 millionimprovement on 2016 and we
expect that this model will continue this improvement trend and deliver positive
cash performance.
I will now turn to how we intend to benefit from IoT markets that will support
higher levels of growth over the next five years.
This slide shows our historical revenue growth.
We have been growing steadily with a 22% CAGR over the last three years. As
Tony mentioned, much of this growth was driven by new products and new
markets beyond our original bottle cooler based motorbusiness.
Our model of strategic partnerships supports these growth levels.
In addition to our existing and growing partnerships with East West USA on
sales, iProximity on digital marketing, and our distribution agreement with Axair
in the UK we are busy continuing to expand the sales channels for our solutions.
As an example, we recently opened three new channels in just the first quarter
of 2018:
Firstly, we signed a sales partnership agreement with a New York based
vision system developer calledCoolR Group.

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Page19of26
Secondly, we signed a sales agreement with a Toronto and India-based
refrigeration and HVAC technology distributor called Amtrac.
And thirdly, we signed a sales agreement with an Argentinian based
reseller of refrigeration motor and controllerproducts.
This slide shows how we are moving from mature low-growth markets to new
higher-growth markets.
Independent research shows us that our EC Motor and Commercial
Refrigeration markets are growing in a CAGR range of between 4% and 12% and
IoTis growing in the 24% to 30% CAGR range.
As you can see, the more attractive IoT markets on the right-hand side are
where our focus lies for new product and market development, so we expect
our revenue growth to remain strong.

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Page20of26
This slide shows a combination of our achieved three-year revenue growth rate
of 22%, coupled with projected five-year growth rates for our targeted market
segments.
You can see that with our achieved revenue growth of 22% and new markets
that offer 20%+ growth, there is the potential for a company CAGR of around
15% over coming years.
If this rate is achieved it would translate into a doubling of revenues in the next
five years.
There you have a very high-level view of our growth potential. We are all very
excited about the opportunity that these high growth markets present.

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Page21of26
I have borrowed this graphic from a recent IBM Smart Retail study.
A large part of our growth vision being achieved is our belief in Retail 4.0, the
transformation of retail from previously ‘dumb’ stores to stores that are already
becoming ‘smart’.
We already do many things for our customers to help them on their journey to
enable the connected store.
For example, with our solutions they can:
Measure door openings on coolers with our SCS Connect.
Improve sales data with our SCS IoT Data service.
And finally, using iProximity’s proximity marketing toolset, they can use
Bluetooth tags for shelf displays, read and manage shelf-based QR codes, and
enable digital signage for promotions

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Our technology is designed to connect people, places and things.
This technology works with refrigeration and non-refrigerated applications.
We recently demonstrated our consumer engagement solution at a Brazilian
supermarket technology show. Our global branded customer has given us
permission to use this photo for presentation purposes only.
It shows a consumer scanning a QR code on a point of sale shelf, using our
HolaLocal APP and receiving promotional information.
Our growth vision fully embraces the future of connected retail.
This is the new Wellington,this is our new business, and this is where a large
part of our future lies.

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The next five years will see us deliver further growth with ourSmarter Coolers
platform.
We also intend to explore new adjacent market opportunities for our solutions,
asyou see on the right-hand side of this slide.
We think interesting new markets are presenting themselves for the company,
including refrigerated transport, food service, food quality and loss, and ambient
groceries and snacks
These are just some of the possible adjacent markets we spend a lot of time
thinking about and are in the process of validating with existing and prospective
customers.

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Page24of26
I will finish off my review by giving you a quick update on our 2018 priorities and
how we are projecting outcomes for this year and next.
Our priorities this year are built around developing a refresh of our five-year
growth plan,continuing to deliver impressive salesperformance and enhancing
our management operatingsystemstodealwithhighgrowthrates.
We are also commencingthenext stageofWellington’sproductinnovation
program, across IoT, digital solutions and EC motors.
This focuswillensurethe futuresuccessof our product and solutions portfolioand ensure
fullleverageoftherecently announcedinvestmentiniProximity.

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Page25of26
During 2018 and beyond we will continue to focus on the higher market growth
rates available to us in IoT, combined with stablegrowthforECmotors.
First half 2018isexpectedtomodestly improvewithrevenue up around 10% and
EBITDA of around $1 million, similar to 2017.
There is some risk that first half EBITDA will only be in line with last year. This
risk is coming from continued electronics component shortages and potential
demand volatility at the end of the second quarter.
We are mitigating component shortages with additional inventory and product
re-designs to use alternate components.
However, we continue to expect a higher growth rate for 2H18 and the full year.
Last week we exercised ouroption to acquire iProximity. We are funding this
acquisition out of proceeds from cashflow and the MetaCapital loan.
As I mentioned earlier, we have received our first ever order for iProximity
software. This was an important verification that reinforced our decision to
complete the iProximity transaction.

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Wellington Drive Technologies LtdWT9049
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It is possible, depending on how demand eventuates in the third quarter, and
how large these new iProximity opportunities are, that we will have a funding
requirement later in the year. The board islooking at all options available to
fund growth, including a more optimistic outlook on the company’s ability to
obtain bank financing.
Our full year 2018 EBITDA guidance of between $2 million to $4 million remains
unchanged.If achieved, this should generate positive operating cash and a small
net profit.
Finally, as discussed earlier, Wellington is in the process of developing a new
growth vision.Vision 2022 will take EC Motors into markets beyond bottle
coolers, and establish our market leadership for IoT technology within the food
and beverage market.
Before closing I would liketo talkbrieflyaboutgovernance. It is my intention
thatthiswill be my last year as Chairman and as aDirectorafter 8 years of
challenging but fulfillingyears on theBoard.Over the coming months we will be
reviewing our Board structure and capability matrix,with a view to findingthe
best configuration andindividualsto deliver on our Vision 2022.
Thank you for your time today.