Wellington Drive Technologies achieves a first half profit

®
is a registered Trademark of Wellington Drive Technologies WT 9578

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
25 August 2021

Market Announcement
For immediate release


Wellington Drive Technologies achieves a first half profit

Wellington Drive Technologies (Wellington and the Company), a leading provider of Internet of Things (IoT)
solutions and energy efficient motors to the retail food and beverage industry, today released its unaudited
financial statements for the six months ended 30 June 2021. The Company’s Interim Report, with
management discussion and analysis, can be found on the NZX website, under the Ticker NZX:WDT at
https://www.nzx.com/instruments/wdt.

The result for months ended 30 June 2021 (H1-2021) is in line with the Company’s announcement on 26
July 2021.
• Revenue was $30.6m, a 49.2% increase.
• EBITDA (adjusted) improved by $2.0m.
• The net profit was $0.62m.
• Cash at bank at 30 June was $6.1m.

US$ invoicing, which is a better indicator of activity, was US$22.8m, an increase of 70.5% over H1-2020.

The Company achieved an EBITDA
1
surplus of $1.83m, compared to $1.14m last year, and a net profit of
$0.62m, a $1.40m improvement on the same period last year. This result includes a $0.3m expense arising
from a change in fair value of the contingent consideration payable for the acquisition of iPX and $0.4m for
the agreed part repayment to staff of 2020 salary reductions. If these one-off charges are excluded,
underlying EBITDA for H1-2021 was $2.5m, a $2.0m increase over the same period last year and the
underling profit was $1.3m, a $2.7m increase.

Customer demand is buoyant. As reported previously, the Company is managing several operating
constraints including a tight IT labour market, supply shortages of some electronic components, increased
component costs, constraints on shipping, increased shipping costs and more recently, the closure of the
production line in Vietnam due to a COVID-19 closure. It is pleasing to now advise that production in
Vietnam has recommenced following a temporary Government imposed COVID-19 closure. It will take a few
weeks for production to be back to normal levels. Notwithstanding these ongoing challenges, the Company
is maintaining its full year 2021 guidance of US$ invoicing in the range of US$45m to US$50m and EBITDA
1

earnings to be in the range of NZ$3.5m to NZ$4.5m before deduction of non-recurring charges.

CEO Greg Balla commented, “It is great to see the strong results, as our team is doing an excellent job
managing the impact of COVID-19, while launching exciting new solutions to the global market. Connect™
Monitor, launched in March, and Connect™ Network, will be launched in November, allowing our customers
to connect their existing refrigeration fleet to Wellington’s Cloud and leveraging the data and analytics to

WT 9578

make better decisions on the utilisation and operational efficiency of the refrigeration units and their support
services. This is significant for our customers as having the whole fleet connected, not just new units,
increases the already significant impact of these solutions 10 fold.”
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

Greg Balla Howard Milliner
Chief Executive Officer Chief Financial Officer
Phone + 64 21 938 601 +64 27 587 0455

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Wellington Drive Technologies Limited
Results for announcement to the market
Reporting Period6 months to June 2021
Previous Reporting Period12 months to December 2020
Amount (000s)Percentage change
Revenue from ordinary
activities
30,561 NZD+49.2%
Profit (loss) from ordinary
activities after tax attributable to
security holders
611 NZD+177.6%
Net profit (loss) attributable to
security holders
611 NZD+177.6%
No dividends declared
30 Jun 202030 Jun 2021
Net tangible assets per security
-0.002 NZD0.006 NZD
Comments
Full commentary is provided in the Interim Report provided with this announcement
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E: info@wdtl.com www.wdtl.com WT9430
Interim report
June 2021

Interim report 2021
Wellington Drive Technologies Ltd
1.
2.
10.
11.

12.
14.
15.
36.

Business highlights
Report of the Chairman and CEO
Consolidated and Condensed Interim Statement of
Comprehensive Income
Consolidated and Condensed Interim Statement of
Movements in Equity
Consolidated and Condensed Interim Statement of
Financial Position
Consolidated and Condensed Interim Cash Flow Statement
Notes to the Interim Consolidated Financial Statements
Directory
Contents
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).
All references in this document to $ or “dollars” are references to New Zealand dollars unless otherwise stated.
References to the Company are to Wellington Drive Technologies Limited
Wellington’s financial year end is 31 December.

1
Interim report 2021Wellington Drive Technologies Ltd
Business highlights

Report of the Chairman and CEO
Wellington Drive Technologies (Wellington or Company) recovered strongly in
the six months to 30 June 2021 (H1-2021) as customer demand returned to
pre-COVID levels. Revenue increased 49.2% compared to 2020, which was
significantly affected by COVID-19. Invoicing in US$ terms increased 70.5%,
with the difference in growth largely explained by the stronger NZ$ this year.
We wish to acknowledge the achievements of the Wellington team who have
managed the buoyant sales demand alongside pandemic related issues,
component shortages and shipping constraints. At all times, our team have
been focussed on keeping our customers operational by working closely with
strategic suppliers and sourcing alternative components where available and
adjusting customer pricing where possible.
Metric - $m - Six months20212020Change
Revenue$30.6m$20.5m+49.2%
Wellington Connect™ IoT revenue$12.8m$8.0m+59.7%
ECR
®
2 motor revenue$12.8m$7.6m+68.0%
ECR legacy motor revenue$4.6m$4.2m+11.0%
Gross profit$8.9m$6.2m+42.5%
Gross margin %29.0%30.3%-1.3%
Operating expenses net of other income-$6.7m-$5.7m -17.8%
Loss / (gain) on remeasurement of contingent consideration-$0.3m$0.6m-$0.9m
EBITDA
1
$1.83m $1.14m+61.1%
EBIT$0.71m -$0.55m+$1.25m
Profit (loss)$0.61m-$0.79m+$1.40m
Operating cash flows$3.12m$0.72m +332.4%
The result for H1-2021 includes the following costs, which are not considered normal operating costs.
• 2021 is the final year for the achievement of performance targets related to the acquisition of iProximity Pty Limited (iPX) in
2018. If forecast Connect™ SCS unit volumes are achieved, Wellington will be required to issue shares to the vendors of iPX.
The fair value of this contingent consideration is estimated at $0.293m and has been recognised as an expense in H1-2021.
In H1-2020, a gain on remeasurement of $0.638m was recognised.
• The Board recognises the salary reductions agreed to by staff last year to mitigate the impact of COVID-19 and is committed
to repaying staff, in whole or in part, if the Company can afford to do so out of profits. The improved trading performance has
enabled the Company to commit to repay 30% of the amount of those reductions. No commitment has been given as to the
remaining 70% and further payments are at the Board’s discretion. $0.380m has been recognised as an expense in H1-2021.
Interim report 2021Wellington Drive Technologies Ltd
2

Interim report 2021Wellington Drive Technologies Ltd
If reported earnings are adjusted to exclude these items, then adjusted earnings are shown below.
20212020Change
EBITDA
As reported$1.83m$1.14m+61.1%
Adjustments set out above$0.67m-$0.64m
Adjusted$2.50m$0.50m+$2.00m
Profit / (loss)
As reported$0.61m-$0.79m+$1.40m
Adjustments set out above$0.67m-$0.64m
Adjusted$1.28m-$1.43m+$2.71m

Revenue
Revenue for the first half was $30.6m, a 49.2% increase compared to the same period last year. As previously reported, Q1-2021
revenue was $14.6m compared to $15.4m in 2020. Q2-2021 revenue was $16.0m compared to $5.1m in 2020 which was the
quarter most significantly impacted by COVID-19.
US$ invoicing, inclusive of deferred service revenue to be recognised in subsequent periods, increased from US$13.4m in H1-2020
to US$22.8m in 2021.
3

Interim report 2021Wellington Drive Technologies Ltd
Wellington’s ECR 2 motor and IoT core products represent 80.9% of first half US$ invoicing compared to 74.0% for the same period
last year.

Wellington Connect IoT
Revenue from Connect IoT products and services, including Connect SCS hardware, data services and iProximity software was
$12.8m compared to $8.0m last year. Invoicing of IoT data services increased 67.0% from $0.8m to $1.4m.
$0.6m of data contract revenue was recognised in H1-2021. Data services are multi-year contracts and revenue is recognised
progressively over the term of the contract, typically from five to ten years. The amount of unrecognised IoT data services revenue
held on the balance sheet on 30 June 2021 was $5.1m.
Wellington ECR motors
Wellington shipped 685,000 ECR motors in H1-2021, an increase of 63.2%. Around 68.3% of these motors were the high
performing ECR 2 motor. Wellington has continued to grow revenue for its ECF™ 2 Fanpack product, a high-performance fan
assembly specifically designed for supermarket applications, with 42,000 units shipped in H1-2021, a 67.6% increase over 2020.
Sales regions
All regions recorded strong revenue growth in H1-2021. USA/Canada increased 84%, Asia/Pacific increased 52%, Europe
increased 58% and Latin America increased 72%.
4

Interim report 2021Wellington Drive Technologies Ltd
Gross margin and gross profit changes
Gross profit increased by $2.7m to $8.9m from the same period last year and gross margin declined slightly from 30.3% to 29.0%
due to increased manufacturing costs driven by commodity price changes and component cost increases. The increase in gross
profit was largely due to increased volumes of higher gross margin products. As has been reported widely, there are product cost
increases being driven by commodity price increases (copper), and due to demand pressures and supply constraints on electronic
components. Shipping costs have also increased significantly. Cost pressures and supply constraints are expected to continue into
H2-2021. Where possible, Wellington is adjusting selling prices to customers to recover these increased costs.
IoT solutions contributed 64.2% of gross profit with ECR 2 motors at 26.0% and legacy EC motors at 8.2%.
5

Interim report 2021Wellington Drive Technologies Ltd
Operating costs
Operating costs for the period amounted to $6.8m, compared to $6.3m for the
same period in 2020. Net operating costs after deducting other income was
$6.7m compared to $5.7m for 2020.
Staff salaries in H1-2020 were reduced for the period from May to December
2020 and were restored in full on 1 January 2021. The Company has now
agreed to reimburse staff for approximately 30% of their 2020 salary reduction.
The cost recognised in the Income Statement for H1-2021 was $0.4m and will
be paid in September.
Headcount at 30 June 2021 has reduced from 88 at December 2020 to 83 at
June 2021. Recruitment of IT and specialist engineering skilled staff in New
Zealand is proving challenging due to competition for these skills and salaries
for critical staff in certain areas, especially IT, required adjustment to manage staff retention. The Company is looking to recruit
offshore for in-market staff, especially for customer facing roles to support our growth strategy.
Profit performance
EBITDA
1
for the first half was $1.8m compared to $1.1m for the same period in 2020. This includes a $0.3m expense arising from
a change in fair value of the contingent consideration payable for the acquisition of iPX and $0.4m for the agreed part repayment to
staff of 2020 salary reductions. If these one-off charges are excluded, underlying EBITDA for H1-2021 was $2.5m, a $2.0m
increase over the same period in 2020. EBIT was $1.4m, a $2.6m increase and the profit was $1.3m, a $2.6m increase.
Working capital
Operating cash inflows for the six months amounted to $3.1m. Investing cash outflows amounted to $1.3m, meaning a net cash
inflow before financing activities of $1.8m (2020 cash outflow of $1.0m). The amounts owing by customers and to suppliers
have increased reflecting increased trading activity. Trade and other receivables increased $6.1m, and trade and other payables
increased by $7.4m compared to 31 December 2020.
Cash at 30 June 2021 was $6.1m compared to $4.6m at 31 December 2020. The amount owing under the $2.5m bank trade
finance facility at 30 June 2021 was $0.6m, compared to $0.6m on 31 December 2020.
6

Interim report 2021Wellington Drive Technologies Ltd
Product development and Marketing
Connect Monitor
Connect™ Monitor launched in March 2021, with production for the complete feature
set commencing in late second quarter. Connect Monitor links existing field refrigeration
equipment to the Wellington Connect™ Cloud through a simple retrofit process.
Although most customers have been including our connected controllers in new build
or upgraded equipment, this currently represents less than 20% of their entire fleet.
Customers can now cost-effectively retrofit their remaining fleet with Connect Monitor.
Fleet managers have access to Connect Monitor’s advanced features, including
cutting-edge technical diagnostics and have raised equipment manufacturers’ interest as
a solution for the frozen and foodservice sectors.
Pre-launch marketing activity commenced in 2020, and strong sales have exhausted the planned production ramp-up while
supporting the onboarding of new customers.

SCS 400 – the cooler controller
Wellington’s flagship product, the Connect™ SCS 600 intelligent controller, was
conceived as a full-featured solution to connect refrigeration equipment fleets to
the cloud. As a result, there was a strategic opportunity to partner with Imbera
(refer to media release here) to develop the SCS 400 series, a lower-cost
controller architecture focusing on strengthening the return-on-investment (ROI)
for our joint customers.
SCS 400 was released in January 2021, and demand has increased.
Connect Network
Wellington is planning to release Connect™ Network in the fourth quarter of
2021. Connect Network represents an expansive addition to the Connect IoT
ecosystem, enabling always-on data collection and real-time alerts for the
equipment fleet.
Connect Network is an always-on cellular and Wi-Fi enabled hub for all
Wellington Connect IoT devices. It is compatible with all current and future
Connect IoT devices, including Connect SCS, Connect™ Click and Connect
Monitor, and forms part of the Connect IoT ecosystem.
Connect Network joins the Company’s existing suite of data acquisition tools
that includes several Company apps and software kits for customer apps. As a result, our customers can balance data acquisition
cost and data priority by utilising field-collected and always-on data acquisition solutions.
The Connect Network solution addresses further expansion challenges for customers that have no direct contact with field
equipment (indirect distribution) or have high-end requirements driven by premium products or markets.

Reframing and reinforcing Wellington media presence
The Company’s program managers have been working closely with customers to help them understand the
value of the insights from connected refrigeration. Based on these learnings, the Company is publishing
customer case studies concentrating on the ROI, leading to an overall refresh of our IoT collateral with ROI
at the core.
Governance
Greg Allen finished as Group CEO on 31 March 2021 but continues as a Director. Greg Balla was appointed Group CEO and
commenced on 9 August 2021. Gottfried Pausch assumed the Interim CEO role from March 2021 and relinquished this when Greg
Balla commenced.
7

Interim report 2021Wellington Drive Technologies Ltd
2021 outlook
Guidance for 2021 is unchanged from the increase in outlook provided on 28 June 2021.
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 forecasting US$ invoicing in the range of US$45m
to US$50m, subject to component supply chain risks.
Wellington expects EBITDA earnings to be in the range of NZ$3.5m to NZ$4.5m before deduction of non-recurring charges.
The H1-2021 result includes $0.7m for the fair value change on iPX contingent consideration and 2020 staff salary sacrifice part
repayment. Assuming the repayment in full of remaining 2020 staff salary sacrifice in H2-2021 (which remains at the discretion of
the Board) the EBITDA earnings range after non-recurring charges is expected to be in the range of $2.0m to $3.0m.
This forecast remains subject to the higher than usual level of risk that prevails in the current global environment, in particular
for unexpected cost increases and unanticipated disruptions to supply. Suppliers are reporting an inability to supply some critical
electronic components, despite confirmed purchase orders. Wellington’s supply chain team has done well so far this year to secure
components, especially with the significant unforecast increase in customer demand, and will continue to work to avoid supply
disruption over the forecast period. We do not want to disappoint customers.
The forecast assumes a NZ$/US$ exchange rate of US$0.70 for the second half of FY2021.
Wellington’s cash outlook also looks 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.
Note 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. The Company considers that it is a useful financial indicator because it
avoids the distortions caused by the differences in amortisation and impairment policies.
8

Financial
Statements
Interim report 2021Wellington Drive Technologies Ltd
9

Interim report 2021Wellington Drive Technologies Ltd
Financial Statements
Consolidated and Condensed Interim Statement of Comprehensive Income
Six months ended
Unaudited
Year ended
Audited
Note
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Revenue2.1,2.330,56120,48436,880
Cost of sales(21,707)(14,270)(26,332)
Gross profit8,8546,21410,548
Other income2.41096231,156
Operating expenses(6,840)(6,339)(11,530)
(Loss) / gain on remeasurement of contingent
consideration
5.1(293)6381,016
Earnings before interest, taxation, depreciation,
amortisation and impairment
1,8301,1361,190
Depreciation3.5(278)(328)(641)
Amortisation3.6(847)(901)(1,686)
Impairment3.6-(456)(456)
Profit / (loss) / before interest and taxation705(549)(1,593)
Finance income4.21267
Finance expenses4.2(99)(228)(389)
Profit / (loss) before income tax618(771)(1,975)
Income tax expense(7)(16)(179)
Profit / (loss) for the period611(787)(2,154)
Other comprehensive income:
Items that may be reclassified subsequently
to the profit or loss:
Exchange differences on translating operations
330(121)(1,565)
Other comprehensive loss for the period330(121)(1,565)
Total comprehensive income for the period$941($908)$3,719
Profit / (loss) for the period attributable to the Owners of
the Company
611($787)(2,154)
Total comprehensive income attributable to the
Owners of the Company
941($908)(3,719)
Basic earnings per share – cents2.60.14(0.24)(0.50)
Diluted earnings per share – cents2.60.14(0.24)(0.50)
The above Consolidated and Condensed Interim Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
10

Interim report 2021Wellington Drive Technologies Ltd
Consolidated and Condensed Interim Statement of Movements in Equity
Note
Share
capital
$000s
Accumulated
losses
$000s
Other
reserves
$000s
Total
equity
$000s
Unaudited for the six months ended 30 June 2021
Balance at 1 January 2021135,555(116,892)(3,948)14,715
Comprehensive income:
Income for the period-611-611
Other comprehensive income:
Exchange differences on translation of
foreign operations
--330330
Total comprehensive income-611330941
Contributions of equity net of costs4.3----
Balance at 30 June 2021$135,555($116,281)($3,618)$15,656
Unaudited for the six months ended 30 June 2020
Balance at 1 January 2020130,228(114,738)(2,383)13,107
Comprehensive income:
Loss for the period-(787)-(787)
Other comprehensive income:
Exchange differences on translation of
foreign operations
--(121)(121)
Total comprehensive income-(787)(121)(908)
Contributions of equity net of costs4.354--54
Balance at 30 June 2020$130,282($115,525)($2,504)$12,253
Audited for year ended 31 December 2020
Balance at 1 January 2020130,228(114,738)(2,383)13,107
Comprehensive income:
Loss for year-(2,154)-(2,154)
Other comprehensive income:
Exchange differences on translation of foreign
operations
--(1,565)(1,565)
Total comprehensive income-(2,154)(1,565)(3,719)
Contributions of equity net of costs5,327--5,327
Balance at 31 December 2020$135,555($116,892)($3,948)$14,715
The above Consolidated and Condensed Interim Statement of Movements in Equity should be read in conjunction with the accompanying notes.
11

Interim report 2021Wellington Drive Technologies Ltd
Consolidated and Condensed Interim Statement of Financial Position
UnauditedAudited
Note
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Current Assets
Cash and cash equivalents6,1463,0624,610
Trade and other receivables3.114,7179,9338,624
Derivative financial instruments-64-
Inventories3.24,7654,8283,417
Total current assets25,62817,88716,651
Non-Current Assets
Property, plant and equipment3.51,9142,5242,083
Intangible assets3.613,14412,82112,397
Total non-current assets15,05815,34514,480
Total assets40,68633,23231,131
Current Liabilities
Trade and other payables3.317,31511,7759,872
Contract liability2.31,2091,1401,044
Provisions3.4199432315
Derivative financial instruments13--
Borrowings4.11,0952,332863
Total current liabilities19,83115,67912,094
Non-Current Liabilities
Borrowings4.11,0191,2301,170
Contract liability2.33,8873,6923,152
Contingent consideration293378-
Total non-current liabilities5,1995,3004,322
Total liabilities25,03020,97916,416
Net assets$15,656$12,253$14,715
12

Interim report 2021Wellington Drive Technologies Ltd
Consolidated and Condensed Interim Statement of Financial Position - continued
UnauditedAudited
Note
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Equity
Contributed equity4.3135,555130,282135,555
Accumulated losses(116,281)(115,525)(116,892)
Other reserves(3,618)(2,504)(3,948)
Total equity$15,656$12,253$14,715
The above Consolidated and Condensed Interim Statement of Financial Position should be read in conjunction with the accompanying notes.
13

Interim report 2021Wellington Drive Technologies Ltd
Consolidated and Condensed Interim Cash Flow Statement
Six months ended
Unaudited
Year ended
Audited
Note
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Cash flows from operating activities
Receipts from customers exclusive of GST/VAT25,44624,73141,531
Payments to suppliers and employees exclusive of GST/
VAT
(23,059)(24,840)(42,606)
Other income1096231,156
Interest paid(98)(216)(404)
Interest received 4.21267
Taxation (paid) / received(5)7113
Net GST / VAT received717347643
Net cash inflow from operating activities3,122722340
Cash flows from investing activities
Payments for property, plant and equipment3.5(48)(64)(210)
Proceeds from disposals of property, plant and equipment-41-
Payments for intangible assets 3.6(1,289)(1,694)(3,153)
Net cash outflow from investing activities(1,337)(1,717)(3,363)
Cash flows from financing activities
Cash proceeds from ordinary shares4.3-545,327
New loan and drawdowns4.11,1544,5097,240
Loan repayments4.1(1,152)(3,965)(7,950)
Finance lease borrowing4.1--27
Finance lease repayments 4.1(178)(144)(262)
Net cash (outflow) / inflow from financing activities(176)4544,382
Net increase / (decrease) in cash and cash equivalents1,609(541)1,359
Cash and cash equivalents at the beginning of the
financial period
4,6103,4593,459
Effect of exchange rate movements on cash(73)144(208)
Cash and cash equivalents at end of period$6,146$3,062$4,610
The above Consolidated and Condensed Interim Cash Flow Statement should be read in conjunction with the accompanying notes.
14

Interim report 2021Wellington Drive Technologies Ltd
Notes to the Interim Financial Statements
for the six months ended 30 June 2021
1. Basis of preparation
1.1 General Information
Wellington Drive Technologies Limited (the “Company”) and its subsidiaries (together the “Group”) develop Internet of Things
(IoT) solutions and manufacture, market and sell energy saving, electronically commutated (EC) motors, connected controllers
and fans for worldwide use.
The Company is a limited liability incorporated and domiciled in New Zealand. The address of its registered office is 21
Arrenway Drive, Rosedale, Auckland 0632 New Zealand. The Company is registered under the Companies Act 1993 and is an
FMC reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The financial statements have been prepared in
accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
These interim financial statements do not include all the notes and disclosures set out in the annual report. As a result, this
report should be read in conjunction with the annual financial statements for the year ended 31 December 2020.
These consolidated and condensed financial statements have been approved for issue by the Board of Directors on 25 August
2021 and have not been audited.
1.2 Summary of Significant Accounting Policies
Basis of preparation
These consolidated and condensed financial statements of the Group have been prepared in accordance with generally
accepted accounting practice in New Zealand. The Group is a for-profit entity for the purposes of financial reporting. These
consolidated and condensed financial statements comply with New Zealand International Accounting Standard 34: Interim
Financial Reporting.
All significant accounting policies have been consistently applied to all the years presented, unless otherwise stated.
Entities reporting
The financial statements are for the consolidated group which is the economic entity comprising of Wellington Drive
Technologies Limited and its subsidiaries.
Historical cost convention
These financial statements have been prepared under the historical cost convention except for derivative financial information
and contingent consideration which is measured at fair value.
New standards, amendments and interpretations not yet adopted
The following accounting standards, amendments and interpretations are mandatory for future periods and are unlikely to have
a material impact on the financial statements prepared by the Company:
• Amendments to IAS 37 - Onerous contracts – Cost of Fulfilling a Contract – effective from 1 January 2022
• Amendments to IAS 16 - Property, Plant and Equipment – effective from 1 January 2022
• Amendments to IAS 1 - Classification of liabilities as Current and Non-Current – effective from 1 January 2023
Going concern assumption
The Group reported a profit for the six months ended 30 June 2021 of $611,000 (2020: loss of $787,000) and positive operating
cash flows of $3.1m (2020: $0.7m). Cash at 30 June 2021 was $6.1m (2020: $3.1m) and bank loans had been reduced to
$0.9m at 30 June 2021 from $2.1m last year.
The Group remains subject to higher than usual level of risk in the current global environment, in particular for unexpected cost
increases and unanticipated disruptions to supply. COVID-19 cases recently resulted in our supplier having temporarily closed
down its Vietnam production facility for a short period. Suppliers are also reporting an inability to supply some critical electronic
components, despite confirmed purchase orders.
15

Interim report 2021Wellington Drive Technologies Ltd
The Group has managed through these disruptions and expects to continue to do so. The directors have, at the time of
approving the financial statements, a reasonable expectation that the Group have adequate resources to continue in
operational existence for the foreseeable future and they continue to adopt the going concern basis of accounting in preparing
the financial statements.
Critical accounting estimates
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. COVID-19 clearly had an impact
on the business operations in the last financial year. Whilst COVID-19 is still having an impact on the Group’s operations, as
seen in the recent temporary closure of our production facility in Vietnam, the challenge this year has been caused by the
resurgence of demand and the constraints caused by electronic component shortages and reduced shipping capacity and
cost increases.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed in the following notes to
the financial statements:
Area of estimation
• Going concern – forecasts – note 1.2
• Probability of contingent consideration targets being achieved – note 5.1
Areas of judgement
• Deferred tax asset – recognition – note 2.7
• Development costs and goodwill impairment – note 3.6
16

Interim report 2021Wellington Drive Technologies Ltd
2. Results for the period
2.1 Segment information
An operating segment is a component of an entity that engages in business activities from which it earns revenues and
incurs expenses, whose operating results are regularly reviewed by the chief operating decision maker and for which discrete
financial information is available.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Chief Executive Officer supported by the management team who report directly to
the CEO.
(a) Reportable segments
The Group is now organised on a global basis into two operating divisions – Motors and IoT. These divisions offer different
products and services and are managed separately because they require different technology and marketing strategies.
The Group’s chief executive officer reviews the financial performance of each division at least monthly. Each division is a
reportable segment.
There are varying levels of integration between the segments. There are engineering and sales staff that support both
segments as well as shared logistical and quality management services.
Information related to each reportable segment is set out below:
June 2021 (six months)
Motors
$000s
IoT
$000s
Unallocated
$000s
Total
$000s
Revenue17,80212,759-30,561
Cost of goods sold(14,635)(7,072)-(21,707)
Gross profit3,1675,687-8,854
Gross profit %17.8%44.6%29.0%
Other income42580109
Operating expenses(1,157)(1,885)(3,798)(6,840)
Loss on remeasurement of contingent consideration-(293)-(293)
EBITDA2,0143,534(3,718)1,830
Depreciation(26)(92)(160)(278)
Amortisation and impairment(152)(685)(10)(847)
Profit / (loss) before interest & taxation1,8362,757(3,888)705
Finance income--1212
Finance expense--(99)(99)
Profit / (loss) before income tax1,8362,757(3,975)618
Income tax expense--(7)(7)
Profit / (loss) for the period$1,836$2,757($3,982)$611
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Interim report 2021Wellington Drive Technologies Ltd
Non-current assets
Property, plant and equipment5821331,1991,914
Goodwill-3,138-3,138
Intangible assets3,9375,76230710,006
Total non-current assets$4,519$9,033$1,506$15,058
June 2020 (six months)
Motors
$000s
IoT
$000s
Unallocated
$000s
Total
$000s
Revenue12,4967,988-20,484
Cost of goods sold(9,805)(4,465)-(14,270)
Gross profit2,6913,523-6,214
Gross profit %21.5%44.1%30.3%
Other income218238167623
Operating expenses(1,251)(1,656)(3,432)(6,339)
Gain on remeasurement of contingent consideration-638-638
EBITDA1,6582,743(3,265)1,136
Depreciation(120)(30)(178)(328)
Amortisation and impairment(235)(1,113)(9)(1,357)
Profit / (loss) before interest & taxation1,3031,600(3,452)(549)
Finance income--66
Finance expense--(228)(228)
Profit / (loss) before income tax1,3031,600(3,674)(771)
Income tax expense--(16)(16)
Profit / (loss) for the period$1,303$1,600($3,690)($787)
Non-current assets
Property, plant and equipment7751831,5662,524
Goodwill-3,154-3,154
Intangible assets4,4505,0541639,667
Total non-current assets$5,225$8,391$1,729$15,345

18

December 2020 (full year)
Motors
$000s
IoT
$000s
Unallocated
$000s
Total
$000s
Revenue24,41812,462-36,880
Cost of goods sold(19,275)(7,057)-(26,332)
Gross profit5,1435,405-10,548
Gross profit %21.1%43.4%28.6%
Other income2885563121,156
Operating expenses(2,449)(3,085)(5,996)(11,530)
Gain on remeasurement of contingent consideration-1,016-1,016
EBITDA2,9823,892(5,684)1,190
Depreciation(322)(235)(84)(641)
Amortisation and impairment(408)(1,724)(10)(2,142)
Profit / (loss) before interest & taxation2,2521,933(5,778)1,593
Finance income--77
Finance expense--(389)(389)
Profit / (loss) before income tax2,2521,933(6,160)(1,975)
Income tax expense--(179)(179)
Profit / (loss) for the period$2,252$1,933($6,339)($2,154)
Non-current assets
Property, plant and equipment6361501,2972,083
Goodwill-3,139-3,139
Intangible assets3,8185,1522889,258
Total non-current assets$4,454$8,441$1,585$14,480

Interim report 2021Wellington Drive Technologies Ltd
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Interim report 2021Wellington Drive Technologies Ltd
(b) Geographical segments
The Group operates in three main geographical areas, although it is managed on a global basis.
Six months endedYear ended
Revenue from external customers by geographic areas
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Americas25,11716,37928,735
Asia / Pacific2,0791,7013,518
Europe / Middle East / Africa3,3652,4044,627
Total$30,561$20,484$36,880
Revenue is allocated above based on the country in which the customer is located. APAC revenue includes $589,000 (2020:
$114,000) from New Zealand customers.
Total non-current assets
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Americas212626
Asia / Pacific - mainly in New Zealand14,97615,24214,379
Europe / Middle East / Africa617775
Total$15,058$15,345$14,480
Total non-current assets are allocated based on where the assets are located.
2.2 Seasonality of operations
Revenues and operating profits are generally expected to be higher in the first six months of a calendar year, lower in the third
quarter due to customers in the northern hemisphere shutting down for summer holidays and increasing again in the fourth
quarter. This does not appear to be the case this year with current forecasts showing a higher second half year and a high third
quarter. It is not clear if this year is benefitting from delayed 2020 demand.
Revenues and operating profits in the fourth and first quarters of a calendar year can be impacted by the timing of the China
New Year and Vietnam Tet holidays.
2.3 Revenue
Six months endedYear ended
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Sales of goods revenue29,97319,88235,678
Services revenue5886021,202
Total$30,561$20,484$36,880
Revenue is measured at the fair value of the consideration received or receivable for the sale of goods and services, excluding
GST / VAT, rebates and discounts and after eliminating sales within the Group. The Group disaggregates revenues from
contracts by geographical regions.
20

Interim report 2021Wellington Drive Technologies Ltd
(a) Sale of Goods
The Group manufactures and sells a range of energy efficient motors and IoT hardware to the food and beverage market.
Sales are recognised when control has transferred to the buyer which is usually when delivery of the goods to the buyer
pursuant to the Incoterms that apply is fulfilled, and there is no unfulfilled obligation that could affect the customer’s acceptance
of the products. Delivery occurs when the products have been delivered in accordance with the pre-agreed Incoterms between
the Group and the buyer, the risks of obsolescence and loss have been transferred to the buyer, and either the buyer has
accepted the products in accordance with the sales arrangement, the acceptance provisions have lapsed, or the Group has
objective evidence that all criteria for acceptance and performance obligations under the contract with the customer have
been satisfied.
Some of the sale of goods are subject to CIF (Cost, Insurance and Freight) Incoterms. The Group considers these freight
and insurance services to be a distinct service. For these sales, the total sales price is allocated to the separate performance
obligations, being the product and the insurance and freight costs. Further, the Group considers itself an agent only in the
provision of the freight services. Revenue for the CIF element is recognised only to the extent of the margin for providing the
agent services. However, there are limited sales under CIF terms and the impact on revenue is estimated to be minor.
The Group has in-market distributors in China and Brazil to supply goods to buyers in those markets who require local delivery.
These distributors transact as agents. The Group is the principal in these transactions. Sales of product are recognised when
these distributors deliver the product to buyers at which point control passes to the buyer.
Products may be sold with retrospective volume rebates based on aggregate sales over a 12-month period. Revenue from
these sales is recognised based on the price specified in the contract, net of the estimated volume rebates. Accumulated
experience and customer knowledge are used to determine the rebate amounts using the expected value method and revenue
is only recognised to the extent that it is highly probable significant reversals will not occur. The liability to pay volume rebates
is recognised (included in trade and other payables) in respect of sales made until the end of the reporting period.
No element of financing is deemed present as the sales are made with a credit term of 30 - 120 days which is consistent with
market practice. A receivable is recognised when the goods are delivered as this is the point of time that the consideration is
unconditional because only the passage of time is required before the payment is due.
(b) Sale of services
Associated with the supply of IoT hardware, the Group supplies a range of data, and reporting services, all installed on every
Connect SCS and Connect Click sold and are distinct services from the sale of goods. Revenue from the provision of such
services is recognised when services are rendered to the buyer. Contracts typically cover a period from hardware supply
of anywhere from 1 to 10 years, dependent on customer requirements. Contracts specify the price for the provision of the
services. Revenue from such contracts is recognised on a straight-line basis over the contract term because the customer
receives and uses the benefits simultaneously. As set out in note 2.3(a), no explicit element of financing is deemed present.
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Interim report 2021Wellington Drive Technologies Ltd
Six months endedYear ended
Contract liabilities
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Carrying amount at start of period4,1964,4184,418
Invoiced in the period1,3688191,310
Recognised in revenue(588)(602)(1,202)
Exchange adjustment120 197(330)
Carrying amount at end of period$5,096$4,832$4,196
Current portion1,2091,1401,044
Non-current portion3,8873,6923,152
$5,096$4,832$4,196
2.4 Other income
Six months endedYear ended
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Net foreign exchange gains63(8)18
COVID-19 government subsidies156261,090
Other income31548
Total$109$623$1,156
2.5 Operating expenses include
Six months endedYear ended
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Wages and salaries and other short-term benefits5,6325,2859,807
Employer contributions to Kiwisaver and 401K plans189170324
Employee benefits$5,821$5,455$10,131
Capitalisation of labour and expenses to intangible assets($1,253)($1,670)($3,099)
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Interim report 2021Wellington Drive Technologies Ltd
2.6 Earnings per share
Earnings per share (‘EPS’) is the amount of post-tax profit attributable to each share.
Basic EPS of a profit of 0.14 cents (June 2020 – loss of 0.24 cents) is calculated by dividing the profit attributable to equity
holders of the Company of $611,000 (June 2020 – loss of $787,000) by the weighted average number of ordinary shares in
issue during the period of 431,914,620 (June 2020 – 322,799,268).
Diluted EPS for the six months ended 30 June 2021 of a profit of 0.14 cents (June 2020 - deficit of 0.24 cents) is calculated by
dividing the profit attributable to equity holders of the Company of $611,000 (June 2020: - loss of $787,000) by the weighted
average number of shares in issue adjusted to reflect any commitments the Group has to issue shares in future that would
decrease EPS. The weighted average number of ordinary shares is compared with the number of shares that would have been
issued assuming the exercise of share options.
2.7 Unrecognised deferred tax balances
The Group has not recognised income tax losses and temporary differences as a future income tax benefit due to the
uncertainty of their recoverability in the foreseeable future. This is due to uncertainty as to where revenues will be recorded,
as customers determine which warehouse and therefore which legal entity shall supply them. Losses available to be carried
forward are subject to the shareholder continuity requirements of the New Zealand Income Tax Act 1994 and the countries in
which the losses have arisen. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to
offset and they relate to the same tax authority. The unrecognised net deferred tax asset in the audited financial statements for
the year ended 31 December 2020 was $29,550,000, determined using the New Zealand corporate tax rate of 28%.
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Interim report 2021Wellington Drive Technologies Ltd
3. Operating assets and liabilities
3.1 Trade and other receivables
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Trade receivables 13,9609,4767,695
Provision for loss allowance(195)(257)(157)
Net trade receivables13,7659,2197,538
Prepayments507314462
VAT/GST refunds due55(3)113
Income tax refund due250357253
Other receivables14046258
$14,717$9,933$8,624
The Group applies the simplified approach permitted by NZ IFRS 9 which requires expected lifetime credit losses to be
recognised from initial recognition of the trade receivable. Trade receivables are written off when there is no reasonable
expectation of recovery.
NZ IFRS 9 requires the Group to calculate expected credit losses on trade receivables using a provision matrix. The Group
has previously determined that the probability weighted credit loss experience over the period from 2013 to 2020 was
approximately 0.1% of revenue. Consideration has been given to market environmental factors to determine whether future
conditions will impact. The provision for expected credit loss at 30 June 2021 has been calculated at 1.5% (2020: 1.5%) for
customers assessed as higher risk and 0.1% for all others (2020: 0.1%).
3.2 Inventories
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Finished goods – at cost3,9764,0672,833
Work in progress – at cost454700383
Raw materials – at cost721526655
Less inventory provisions(386)(465)(454)
Total inventories$4,765$4,828$3,417
3.3 Trade and other payables
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2019
$000s
Trade payables13,8838,9517,375
Employee entitlements1,5441,5831,620
VAT/GST payable358--
Accrued expenses1,5301,241877
$17,315$11,775$9,872
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Interim report 2021Wellington Drive Technologies Ltd
3.4 Provisions
Warranty provisions
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Carrying amount at start of period315468468
Additional provisions recognised262112
Amounts used(149)(83)(148)
Exchange adjustment726(17)
Carrying amount at end of period$199$432$315
3.5 Plant and equipment
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Net book amount at start of period2,0832,6582,658
Additions4864210
Depreciation(278)(328)(641)
Disposals-(41)-
Exchange adjustment61171(144)
Net book amount at end of period$1,914$2,524$2,083
Depreciation
Property90103200
Plant and equipment132163316
Office equipment, furniture & fittings5662125
$278$328$641
Capital commitments
Capital commitments contracted at 30 June 2021 amounted to $124,000 (June 2020 $104,000)
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Interim report 2021Wellington Drive Technologies Ltd
3.6 Intangible assets
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Net book amount at start of period12,39712,14712,147
Additions1,2891,6943,153
Amortisation(847)(901)(1,686)
Impairment-(456)(456)
Exchange adjustment305337(761)
Net book amount at end of period$13,144$12,821$12,397
Analysis of net book amount
Internally generated development assets9,3279,1998,854
Patents218267217
Goodwill3,1383,1543,139
Other461201187
$13,144$12,821$12,397

Additions in the six months to 30 June 2021 include $1,253,000 (2020: $1,670,000) for internally generated development costs
and $36,000 (2020: $24,000) for patents, trademarks and software. Payments for intangible assets in the period amounting to
$1,289,000 (2020: $1,694,000) are included in the Consolidated and Condensed Interim Cash Flow Statement.
Internally generated development costs include $3,289,000 (2020: $2,981,000) for projects underway and not complete at
balance date. This cost is not yet being amortised.
Goodwill and intangible assets with indefinite lives
Goodwill acquired through business combinations with indefinite lives has been allocated to the IoT Cash Generating Unit
(CGU) which is also an operating and reportable segment for impairment testing. The Group performed an impairment test
at 30 June 2021. The recoverable amount of the IoT CGU at 30 June 2021 has been determined based on a 5 year value in
use calculation using cash flow projections from forecasts for 2021, 2022 and 2023. The pre-tax discount rate applied to the
cash flow projections is 14% (2020: 14%) and cash flows beyond 2023 using a 5% growth rate. The calculation of value in use
is most sensitive to assumptions on gross margins, completion and launch of new products and retaining volumes to current
customer and growth rates used to extrapolate cash flows beyond the forecast period. Gross margins are based on current
pricing and product costs. As a result of this analysis, management did not identify an impairment for this CGU.
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Interim report 2021Wellington Drive Technologies Ltd
4. Capital and financing costs
4.1 Borrowings
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Current portion
Loan facility – BNZ Trade Finance5762,065572
Loan facility – Banco del Bajio216--
Bank term loan1--
Liabilities in respect of right-of-use assets225198217
Other Borrowings776974
$1,095$2,332$863
Non-Current portion
Liabilities in respect of right-of-use assets8781,084992
Bank term loan76-73
Other Borrowings65146105
$1,019$1,230$1,170
Loan facility – BNZ Trade Finance
The Company has a $2.5m trade finance facility. The bank holds a security interest over financed trade receivables. The facility
has no term and is repayable on demand. The Company can finance invoices to certain customers over a maximum term of
120 days. Interest is payable on repayment at a 3% margin above bank base lending rate.
Loan facility – Banco del Bajio
The Company’s Mexican subsidiary borrowed 3m Pesos from its bank. The facility is for a 4 year term and each drawdown is
repayable after 180 days. The interest rate on the loan is the Mexican Overnight TIIE Funding Rate plus 5%.
Bank term loan
The Company’s US subsidiary borrowed US$52,100 under the Small Business Act. The SBA loan has monthly repayments
over a 30-year term with repayments commencing in July 2021. Interest is payable at 3.75% pa.
Other borrowings
Comprises equipment finance and lease liabilities in respect of “right-of-use” assets.
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Interim report 2021Wellington Drive Technologies Ltd
4.2 Finance income and expenses
Six months endedYear ended
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Finance income
Interest income1267
$12$6$7
Finance expense
Interest expense - Bank trade finance facility145387
Other interest expense85175302
$99$228$389

4.3 Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
30 Jun 2021
Shares
30 Jun 2020
Shares
30 Jun 2021
$000s
30 Jun 2020
$000s
Ordinary shares – fully paid (a)431,914,620323,936,592135,553130,257
Ordinary shares – partly paid (b)421,9804,869,802225
US employee share options (c)-769,725--
Employee share options (d)12,930,000---
Total shares and options on issue445,266,600329,576,119$135,555$130,282
(a) Ordinary shares – fully paid
30 Jun 2021
Shares
30 Jun 2020
Shares
30 Jun 2021
$000s
30 Jun 2020
$000s
Opening balance of ordinary shares
on issue
431,914,620322,707,005135,553130,202
Part paid shares and US employee
options exercised
-1,229,587-69
Share issue costs---(14)
Ordinary fully paid shares on issue
at period end
431,914,620323,936,592$135,553$130,257
All ordinary shares are authorised and have no par value. Ordinary shares entitle the holder to participate in dividends and the
proceeds on winding up of the Company in proportion to the number of and amounts paid on shares held.
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Interim report 2021Wellington Drive Technologies Ltd
(b) Ordinary shares – partly paid
Six months ended
30 Jun 2021
Shares
30 Jun 2020
Shares
30 Jun 2021
$000s
30 Jun 2020
$000s
Partly paid shares on issue at start
of period
421,9805,810,742226
Exercised-(940,940)-(1)
Ordinary part paid shares on issue at
period end
421,9804,869,802$2$25


(c) US employee share options (numbers)
30 Jun 202130 Jun 2020
Options outstanding at start of period-1,058,372
Exercised-(288,647)
Outstanding at end of period-769,725
(d) Employee share options (numbers)
30 Jun 202130 Jun 2020
Options outstanding at start of period--
Issued12,930,000-
Outstanding at end of period12,930,000-
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Interim report 2021Wellington Drive Technologies Ltd
5. Other information
5.1 Acquisition of iProximity Limited
On 2 July 2018 the Company acquired 100% of the issued share capital of iProximity Pty Limited, an Australian based
innovative proximity marketing solutions and consumer intelligence company. The consideration for the acquisition comprised
up-front payments of AU$1,250,000 and cash and share-based earn out targets as follows:
• A$500,000 based on meeting specified EBIT targets (for iProximity’s existing business) for the 2018 and 2019
financial years.
• The issue of fully paid ordinary shares in the Company in tranches based on meeting specified EBIT targets for the period
ending 31 December 2020 (9,448,964 shares) and based on Wellington’s Connect SCS System controller unit sales for
the same period (9,448,964 shares). Due to the impact of COVID-19, the Company agreed to extend the period for the
Connect SCS target to be achieved to 31 December 2021 and increased the number of units required to be sold for the
remaining shares to be issued.
The purchase consideration was:
$000s
Cash paid1,367
Contingent consideration2,327
Total purchase consideration$3,694
EBIT targets were not achieved so the A$500,000 cash consideration was not payable and the 9,448,964 fully paid ordinary
shares were not required to be issued in respect of those targets. 4,724,482 ordinary shares in the Company have been issued
to 31 December 2020 in respect of the Connect SCS targets. A further 4,724,482 shares will be issued should the revised
Connect SCS targets be achieved in 2021.
At 31 December 2020, the Group did not expect Connect SCS targets to be achieved and no contingent consideration was
recognised as a liability at that date. Customer demand has rebounded in 2021. Should the Group’s current forecasts for
the 2021 financial year for sales of Connect SCS be achieved, the Company will be required to issue a further 3,149,654
shares. The fair value of the share-based contingent consideration was determined to be $293,000 at 30 June 2021 based
on the Company’s share price of $0.093 and has been recognised as a fair value expense in the Condensed Statement of
Comprehensive Income. At 30 June 2020 the contingent consideration was determined based on 4,724,482 shares and an
$0.08 share price.
Contingent consideration
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Fair value at start of period-1,0161,016
Remeasurement recognised in income statement293(638)(1,016)
$293$378-
5.2 Related party transactions
(a) Directors
The names of persons who are Directors of the Company are on page 36.
(b) Key management personnel and compensation
Key management personnel compensation is set out below. Key management personnel comprises the Directors, the Chief
Executive Officer (CEO) and all the senior executives that report directly to the CEO.
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Interim report 2021Wellington Drive Technologies Ltd
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Salaries, fees and other short-term benefits9147381,351
Directors’ remuneration25994168
Total$1,173$832$1,519
(c) Employee share-based remuneration
Equity settled, share based compensation is provided to employees via the Wellington Partly Paid Share Scheme and
Wellington Employees Share Option Plan. The fair value of the employee services received in exchange for the grant
of part paid shares or options are recognised as an expense over the vesting period. The proceeds received net of any
directly attributable transaction costs are credited to share capital when the partly paid share proceeds are received, or
options are exercised.
(d) East West Manufacturing LLC (East West), a substantial security holder in the Company, supplies goods and services to
the Company from its manufacturing facility in Vietnam and purchases product for distribution in the USA. All pricing is on
an arms-length basis.
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Purchases from East West19,42812,25419,865
Sales to East West254364459
Cash payments to East West13,74215,36326,036
Cash receipts from East West128671879
Trade receivable from East West at period end17115945
Trade payable to East West at period end9,9707,5274,285
Interest payments to East West for extended
credit terms
-44103
5.3 Contingencies and commitments
There are no material contingent liabilities or assets (June 2020 - $nil).
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Interim report 2021Wellington Drive Technologies Ltd
5.4 Leases
The Consolidated and Condensed Interim Statement of Financial Position shows the following amounts related to leases of
right-of-use assets:
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Right-of-use assets
Properties8341,100893
Plant and equipment312040
Office equipment, furniture and fittings7118
$872$1,131$941
Additions to right-of-use assets in the period
Plant and equipment--27
Office equipment, furniture and fittings---
$ -$ -$27
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2021
$000s
Depreciation charge for right-of-use assets
Properties8896170
Plant and equipment939
Office equipment, furniture and fittings223
$99$101$182
Interest expense on lease liabilities$39$44$86
Expense relating to short-term leases (included in
operating expenses)
$21$3$37
The Consolidated and Condensed Interim Cash Flow Statement shows the following amounts related to leases of right-of-use
assets:
Six months endedYear ended
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Cash outflow for right-of-use leases$107$95$193
Lease repayments for leases previously
classified as finance leases under NZ IAS 17
$71$49$69
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Interim report 2021Wellington Drive Technologies Ltd
5.5 Financial instruments by category
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Assets per Statement of Financial Position
Financial assets measured at amortised cost
Trade and other receivables14,4129,5798,258
Cash and cash equivalents6,1463,0624,610
Derivatives used for hedging at fair value
Derivative financial instruments-64-
$20,558$12,705$12,868
Liabilities per Statement of Financial Position at amortised cost
Trade and other payables17,31511,7759,872
Borrowings2,1143,5622,033
Liabilities per Statement of Financial Position at fair value
Contingent consideration293378-
Derivative financial instruments13--
$19,735$15,715$11,905

Fair value estimation
The only financial instruments carried at fair value are derivatives comprising forward foreign exchange contracts and
contingent consideration.
The forward exchange contract has been classified as Level 2.
The different levels have been defined as follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices) (Level 2)
• Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs) (Level 3)
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date,
with the resulting value discounted back to present value. The fair value of contingent consideration in respect of the acquisition
of iProximity Pty Limited is determined using the estimated number of shares that are to be issued to the vendors pursuant to
the purchase agreement (as amended) and the Company’s share price at balance date. The probability adjusted number of
shares and the Company share price at 30 June 2021 and 30 June 2020 are set out in note 5.1.
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Interim report 2021Wellington Drive Technologies Ltd
5.6 Maturity analysis
The amounts disclosed are the contractual undiscounted cash flows.
30 June 2021
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months17,27079213918,201
7 to 12 months--144144
2 to 5 years--962962
$17,270$792$1,245$19,307
30 June 2020
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months11,4322,06513313,630
7 to 12 months--137137
2 to 5 years--1,2271,227
$11,432$2,065$1,497$14,994
31 December 2020
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months9,78557214310,500
7 to 12 months--148148
2 to 5 years-731,0971,170
$9,785$645$1,388$11,818
Trade and other payables above exclude any liabilities for tax (including payroll taxes), statutory liabilities and
contract liabilities.
34

Interim report 2021Wellington Drive Technologies Ltd
5.7 Reconciliation of profit for the period to net cash inflow from operating activities
Six months ended
Unaudited
Year ended
Audited
30 Jun 2021
$000s
30 Jun 2020
$000s
31 Dec 2020
$000s
Profit / (loss) after taxation for the period
Adjustments for:
611(787)(2,154)
Depreciation, amortisation and impairment1,1251,6852,783
Decrease in Inventory provision(68)(71)(82)
Increase in loss allowance provision381087
(Decrease) in provision for warranty(116)(36)(153)
Change in fair value of contingent consideration293(638)(1,016)
Net foreign exchange differences307(680)(478)
(Increase) / decrease in trade and other receivables(6,131)4,7516,160
Increase / (decrease) in contract liabilities900414(222)
(Increase) / decrease in inventories(1,280)391,461
Increase / (decrease) in trade and other payables7,443(4,063)(5,966)
Net cash inflow from operating activities$3,122$722$340

5.8 Events after reporting date
There are no events after reporting date requiring disclosure.
35

Interim report 2021Wellington Drive Technologies Ltd
Directory
Directors
Gottfried Pausch, Chairman
John McMahon
John Scott
Keith Oliver
Greg Allen
Executive Team
Greg Balla, Chief Executive Officer
Howard Milliner, Chief Financial Officer and Company Secretary
David Howell, Chief Technical Officer
Marc Tinsel, Vice President, Supply Chain,
Operations and GM Engineering
Beatriz Mibach, Global Head of Products
David Burden, Vice President, Group Marketing
and IoT Products
Peter Barnes, Global Quality Leader
Phone
Ph: 64 09 477 4500
Internet
Website: www.wdtl.com
Email: info@wdtl.com
Address and Registered Office
21 Arrenway Drive
Rosedale, Auckland 0632, New Zealand
PO Box 302-533, North Harbour,
Auckland 0751, New Zealand
Auditor
Auditor
Deloitte Limited
80 Queen Street, Auckland 1010, New Zealand
Banker
Bank of New Zealand
Share Registry
Computershare Investor Services Ltd,
Private Bag 92119, Auckland 1142,
New Zealand
36

Interim report 2020Wellington Drive Technologies Ltd
Interim report 2020Wellington Drive Technologies Ltd
Proven global industry leadership
Wellington’s Connect IoT platform is currently deployed across 24 countries and growing.
24
With over one million Connect SCS controllers sold, Wellington is improving visibility,
reliability, and serviceability of refrigeration and frozen fleets.
1.2 million
Over two million ECR 2 motors have saved an estimated 2.2GWh of energy, while protecting
food quality and improving the lifespan of equipment.
2.3 million
ECR 2 motors specifically designed to last 10 years in tough environments have a proven
99.97% reliability.
99.97%
Who we are
Wellington is one of the world’s leading suppliers of cloud-based IoT fleet management platforms. By leveraging our hardware,
software, and support services, we enable our customers to lower their operating costs, increase revenue, and drive new levels of
efficiency and profitability.
Using unique consumer engagement technologies, we enable our customers to influence their consumers at the point of decision to
build brand loyalty and take market share in a crowded space.
Wellington office

Interim report June 2021
www.wdtl.com
WT9430