FY2019 trading update and FY2020 Guidance

®
is a registered Trade Mark of Wellington Drive Technologies WT 9307

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
23 December 2019

Market Announcement

FY2019 trading update and FY2020 Guidance

Wellington Drive Technologies (“Wellington”) confirms previously announced 2019 guidance. FY2019
revenue is expected to be around NZ$61m (FY2018 NZ$58.8m) subject to the usual revenue recognition
timing risks around shipping orders in late December. FY2019 EBITDA is expected to be within the
previous guidance range of NZ$3.5 to NZ$4.0m, again subject to late month order volatility. This guidance
excludes any fair value adjustment gain on the iProximity deferred consideration (estimated to be around
$0.4m) and is subject to any audit adjustments.

Wellington has reviewed its preliminary forecasts for 2020 and advises that early indications suggest
potential for revenue growth of around 15% and EBITDA around $4.5m. While the Company has some
visibility of first quarter orders, this guidance is subject to potentially significant volatility (both upside and
downside).

2020 forecasts are dependent on the final result for FY2019, several new product and new customer
introductions planned during 2020, a NZD/USD exchange rate of 0.65c and broader global trade and
macroeconomic conditions. For the new product launches specifically, there are risks around ensuring
completion of product development on schedule, dependencies on spend decisions that the board may
make around outsourcing of IoT product development to accelerate revenue, and the timing of customer
onboarding and product adoption meeting Wellington’s expectations.

Wellington CEO, Greg Allen commented “We are pleased that we can confirm our recently upgraded
guidance for 2019, a year of customer demand volatility and declining legacy EC motor volumes. Early
visibility of 2020 suggests the company can continue its track record of revenue growth and margin
expansion with the targeted launch of a new ECR Motor, a new Connect SCS product and the onboarding
of a major new IoT customer relationship. Our 2020 plans include continued and significant investment in
supporting new IoT customers; adding new skills to strengthen IoT product development, increasing sales
and marketing capability in North America and Europe and strengthening customer technical support.
Wellington’s board and management would like to wish its shareholders, customers, suppliers, staff
members and families the best for the holidays and a safe and successful New Year.”

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

WT 9307

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







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