Wellington raises 2021 guidance

®
is a registered Trade Mark of Wellington Drive Technologies WT 9561

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



28 June 2021

Market Announcement
For immediate release
Wellington raises 2021 guidance


Wellington Drive Technologies (“Wellington”) is pleased to provide updated guidance for FY2021.

Wellington is experiencing strong customer demand reflecting both new customer wins over the last 18
months, initial revenue from recent new product launches and a strengthening global economy. Wellington is
now forecasting US$ revenue in the range of US$45m to US$50m, up from the previous range of US$41m to
US$46m, and subject to component supply chain risks.

Before deducting non-recurring charges (see below), Wellington expects underlying EBITDA earnings to be
in the range of NZ$3.5m to NZ$4.5m, up from the previous range of NZ$2.5m to NZ$3m.

The non-recurring charges are as follows.
• The forecast includes increased Connect™ SCS controller volumes. Should these forecast volumes
be achieved, the issue of further shares to the vendors of the iProximity business will be triggered
pursuant to performance targets agreed for that acquisition. The fair value of that contingent
consideration is forecast to impact the year and the H1 EBITDA result by approximately
NZ$300,000.
• The Board committed to staff in 2020 that if profits are available it would seek to compensate them
for their 2020 COVID salary sacrifice reductions. Any compensation would be at the discretion of the
Board, which has now agreed a special payment to staff in September of approximately $400,000,
being around one third of the amount sacrificed. Only staff employed at the time the payment is
made will be eligible. This charge will be recognised in the H1 EBITDA.
• Subject to trading performance for the year, the Board may, at its discretion, make further special
payments in December 2021 and March 2022 to staff employed at these dates in recognition of their
salary sacrifice.

The recognition of the iProximity contingent consideration and September special payment will have an
impact of approximately NZ$0.7m against the underlying full year EBITDA and pre-tax result, reducing
underlying EBITDA guidance above to an EBITDA range of NZ$2.8m to NZ$3.7m. At the bottom end of this
range, the company would record a modest pre-tax profit.

WT 9561

2
This forecast remains subject to the higher than usual level of risk that prevails in the current global
environment, in particular for unexpected cost increases and unanticipated disruptions to supply. Suppliers
are reporting an inability to supply some critical electronic components, despite confirmed purchase orders.
Wellington’s supply chain team has done well so far this year to secure components, especially with the
significant unforecast increase in customer demand, and will continue to work to avoid supply disruption over
the forecast period. We do not want to disappoint customers.

The forecast assumes a NZ$/US$ exchange rate of US$0.70 for the second half of FY2021.

Q2 2021 revenue is forecast to be consistent with previous guidance of around US$12m, compared to
US$2.9m in Q2 2020, which was the quarter most significantly impacted by COVID-19.

Wellington’s cash outlook is also looking strong. While month end net cash can fluctuate due to customer
mix and timing as well as inventory levels, Wellington is currently forecasting to finish 2021 with net cash of
around NZ$5m with a further NZ$1.9m of undrawn bank facility.



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

EBITDA
1
(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

Gottfried Pausch Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone +64 21 258-4054 +64 27 587-0455