33% revenue growth Q1 2019 and positive net profit

®
is a registered Trade Mark of Wellington Drive Technologies WT 9166

Wellington Drive Technologies Ltd
P: +64 9 477 4500 E: info@wdtl.com
21 Arrenway Drive, Rosedale, Auckland 0632
PO Box 302-533 North Harbour, Auckland 0751, New Zealand
www.wdtl.com
10 April 2019
Media Release
For immediate release

Wellington achieves 33% revenue growth and positive net profit in Q1 2019

Wellington Drive Technologies (Wellington), a leading provider of Internet of Things (IoT) solutions and
energy efficient motors to the retail food and beverage industry, today announced its unaudited trading
performance for the three months ended 31 March 2019 (Q1 2019).

Highlights:

• Revenue for Q1 2019 improved 33%, to $15.8m compared to $11.9m in Q1 last year.
• IoT revenue comprised $6.5m of the total (41%), with Wellington Connect SCS volume growing
99%. ECR motors comprised $8.2m (52%) with ECR2 motor volume growing 56%. Non-ECR2
motor volume declined 29%.
• Gross profit for Q1 2019 was $4.1m, a gross margin of 26.2%. This compared to Q1 2018 $2.8m
and 23.3%. The improvement was due to product mix (increased volume of higher margin
products) and unit cost reductions. The pressure from additional costs experienced last year
caused by global supply constraints for electronic components abated in the current quarter.
• Earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) was $1.1m
compared to $0.0m for Q1 2018. Earnings before interest and tax (EBIT) was a positive $0.5m
compared to a loss of $0.4m for Q1 2018.
• The pre-tax result was a profit of $0.2m compared to a $0.6m loss in Q1 2018.

CEO Greg Allen commented “We are pleased with our first quarter performance, which continues to
demonstrate the growing demand for the Wellington Connect IoT and ECR2 products. Some of the IoT
customers we won in 2018 are starting to purchase product, while growth in ECR2 motors was off-set
slightly by declines in the non-ECR2 motors. This was mainly due to decisions we made to not compete
at the lower end of the motor price point. Our new business development funnel is very active; however
due to the lead-time on hiring new growth-related skills we are prioritising existing customer growth
projects. We do expect the first half of the year to be stronger than 2018 in both revenue and margin, with
the second half still unclear and potentially weaker – hence we are maintaining previous guidance”.

WT 9166


2019 outlook
The result for Q1 2019 is consistent with previous guidance and our guidance for FY 2019 therefore
remains unchanged. The company’s total revenue in 2019 is expected to be flat to slightly up when
compared to 2018. The company’s business mix is changing and is increasingly targeted to its higher
margin IoT products. Accordingly, EBITDA
1
, Net Profit and operating cashflow are expected to be higher
in 2019 when compared to 2018.
About Wellington Drive Technologies:
Wellington is a leading provider of IoT solutions, cloud-based fleet management platforms, energy-
efficient electronic motors and connected refrigeration control solutions. It serves some of the world’s
leading food and beverage brands and refrigerator manufacturers and offers proximity-based marketing
for Smart Cities to the Australian market. Wellington’s services and products improve sales, decrease
costs and reduce energy consumption. Headquartered in Auckland with a global reach, Wellington is
listed on the New Zealand stock exchange under the ticker symbol NZ:WDT
For further information visit
www.wdtl.com


1
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. Wellington considers that it is a useful financial indicator
because it avoids the distortions caused by differences in amortisation and impairment policies
.


Contact:

Greg Allen Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone +1-778-238-6494 +64 27 587-0455