Wellington Investor Morning – CEO Presentation

Wellington Drive Technologies
Investor Morning
April 10, 2019

Safe harbourstatement
We will be makingsomeforward-looking statementstodayand
astheseare predictive in nature, they are subject to a number
of risks and uncertainties relating to the company, its
operations andthe markets in which it competes.Some
thingsare beyond the controlof the company and actual
results and conditions may differ materially from those
expressed or implied by such forward-looking-statements.

Team introductions
GregAllen
CEO
DavidHowell
CTO
HowardMilliner
CFO
Rohan Lean
IoT Solutions Architect
SteveHodgson
Senior VP -Commercial
Erick Layseca
VP -Latin America
Gerardo Gonzalez
VP -IoTBusiness
Development

1.What we do
2.Wellington’s journey
3.What is the opportunity?
4.IoT financial model
5.Proven execution
6.Product demo & Q&A
Agenda

What we do

Wellington Group
Three product groups –at different stages
1.
Wellington
ECR Motors
High growth, high margin
31% of revenue
45% of margin
Core
64% of revenue
51% of margin
Start-up /
Pre-commercial
2.
Wellington
Connect IoT
3.
Wellington
Smart Cities

The Wellington product platform
EC Motor Hardware
Improved cooler reliability and carbon footprint
Cloud Connected IoT Hardware
Improved Equipment Operating Performance
Actionable Insights
Measure and Manage business data to
improve asset management and sales
Consumer Engagement
Merchandising and measurement at point
of sale

SDKs & API’s
•Marketing
•Track
•Analytics
Operational
Infrastructure
•Connect cloud
•Marketing cloud
Apps
•Field
•Track
•Retailer
•Promotions
•Insight
Hardware
•SCS
•Click
•Q-Tag
•Monitor
•Network
•Beacon
Customer
Solutions
An IoT ecosystem
...delivering business value through four main features
Service &
Maintenance
Sales InsightsProximity Marketing
Asset Management
1.
2.
3.
4.

Wellington’s journey

Wellington’s journey
Entering the third stage

20 1420 1520 1620 1720 1820 19
Fcast
Motors (Legacy)Motors (New)IOT
Changing revenue & gross margin mix
Delivered through product innovation
43%
22%
35%
Revenue by product groupGross margin by product group
20 1420 1520 1620 1720 1820 19
Fcast
Legacy motorsNew motorsIOT
59%
24%
17%

What is the opportunity?

The macro opportunity

The market opportunity
1.
Beverage
cooler market
~10%
Current annual market
penetration
2018
2020
Research
2019
3.
Additional products
& services
iProximity service
Actionable Insights
New APPs
Platform Expansion
IoT ‘always on’ services
New digital Services
Stock Management
Payment Systems
+
+
+
2.
Adjacent
markets
Food Service
Food Quality
& Loss
Ambient Groceries
& Snacks
+

IoT product and services stack
IoTHardware
New Services
Stock Management, HACCP
Marketing Services
Interface (APIs + SDKs)
Apps
Beverage Brand -Cooler Manufacturer -Retailer
Infrastructure
Connect & Marketing Cloud
1.
IoT Platform
Bundle
3.
Digital
Services
2.
Data
Services
Future
Roadmap
Current
State

IoT financial model

Years
12345
Cash6060606060
Revenue106112118124130
Profit3642485460
Software/data: an example over 5 years...
Illustrative figures only, numbers are not actuals
+
5 year term
iProximity
services (IPX)
$4 x 5 years = $20
Wellington
Connect Data
Services
$2 x 5 years = $10
Controller
$100 sale price
30% margin
1. Assumptions
$70
$30
$10
$20
$100
Controller
Cost
$130
Controller
Margin
Data
IPX
2. Breakdown of sales3. Revenue recognition
Example
FY18
Cash
130
(70)
$60
Revenue
100
+2
+4
$106
Invoiced
$2.1m
Revenue
$0.6m
Profit
30
+2
+4
$36
Deferred
Revenue
$2.5m

Proven execution

Proven execution excellence
•East West partnership reduces COGS by up to 25%
•Added new customers across multiple markets
•Adding new services through acquisition
•No new equity since 2015 –debt funding
Gross MarginSelected strategic achievements
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.

A growth scenario
$17.8m
$58.8
20142018Legacy
Motors
New
Motors
IOT2023
Existing
market
Adjacent
Market
NZ$100m
+41m
+41m
Illustrative purposes only

Strategy execution

1
34
2
Growththrough beverage
coolers, adjacentmarkets
and new products
$100mrevenuetarget
delivered through a
fivepillarstrategy
Proven track record of
execution
Well-positioned to leverage
global IoT megatrend, with
600,000connecteddevices
shipped
Key takeaways

Product demo

Greg Allen
CEO Wellington Technologies
Email: greg.allen@wdtl.com
Telephone: +1-778-238-6494
Website: www.wdtl.com
@wellingtondrive
wellington-drive-technologies-ltd

Thank you