Wellington Drive Technologies performs strongly in Q3-2021

®
is a registered Trademark of Wellington Drive Technologies WT 9593

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 October 2021

Market Announcement
For immediate release




Wellington Drive Technologies performs strongly in Q3-2021

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, is pleased to update
shareholders and the market generally on its latest trading results for the three months ended 30
September 2021 (Q3-2021).

• Revenue was $15.3m compared to $6.0m for the same period in 2020 (Q3-2020).
• US$ invoicing, which is a better indicator of activity, was US$11.1m compared to US$3.8m in Q3-
2020, a year-on-year gain of 190%.
• Gross Margin was 27.8% which is consistent with 2020 and constrained by significantly higher
freight and componentry charges.
• EBITDA was $0.8m, an increase of $0.9m compared to Q3-2020.
• Cash on 30 September was $6.3m and the Company had $2.4m available under its trade finance
facility.

This is a strong performance for the third quarter in a challenging environment. The company continued to
deal with the implications of the COVID outbreak and the global shortage of electronic components. Our
supply chain and regional sales team have done a fantastic job to mitigate, where possible, the impact.
These included a 5-week factory shutdown from our manufacturing source in Vietnam, the short supply and
price increases of microprocessors and other components.

For FY2021 to date, the Company achieved an EBITDA surplus of $2.65m and a pre-tax net profit of
$0.66m. This result includes a $0.20m expense arising from a change in fair value of the contingent
consideration payable for the acquisition of iProximity (last year a $0.74m gain) and a $0.38m expense for
the part repayment to staff of 2020 salary reductions. If these one-off charges are excluded, underlying
EBITDA for the nine months to 30 September 2021 was $3.22m, a $2.88m increase over the same period
last year and the underling pre-tax profit was $1.23m, a $3.44m increase.

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Financial metrics for the nine months ended 30 September 2021:

2021 2020 Change
Revenue
$45.9m $26.5m +72.9%
Wellington Connect IoT Revenue
$18.9m $9.2m +105.4%
ECR2 motor revenue
$19.6m $11.4m +71.9%
ECR legacy motor revenue
$6.5m $5.1m +27.4%
Gross profit
$13.1m $7.9m +65.9%
Gross margin %
28.6% 29.8% -1.2%
EBITDA reported
$2.65m $1.07m +146.8%
EBITDA before one-off items
$3.22m $0.34m +861.5%
EBIT reported
$0.80m -$1.13m +$1.94m
EBIT before one-off items
$1.38m -$1.88m +$3.26m
Profit before taxation
$0.66m -$1.47m +$2.13m
Profit before taxation and one-off items
$1.23m -$2.21 +$3.44m

Customer demand is buoyant. As noted, the Company is managing through a tight labour market, electronic
component shortages, increased input costs, constraints on shipping, increased shipping costs and reduced
capacity in the production line in Vietnam due to a COVID-19 restrictions on the labour force.

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 earnings to be in the range of NZ$3.5m to
NZ$4.5m before deduction of non-recurring charges. The Company’s revenue would have been higher than
that forecast but for the operating constraints outlined above.

CEO Greg Balla commented, “I really want to thank our team, and our partners, for this strong result. It has
been their absolute commitment to the customer that has allowed us to find innovative solutions to the many
supply challenges caused by COVID-19 and the global electronic component shortages. We are continuing
to see very strong demand for our products and our cloud connect IOT platform that brings the products to
life and provides the high value insights our customers need. Our new solutions Connect™ Monitor and
Connect™ Network (to be launched in November) significantly improve the ability of our customers to
leverage the platform, allowing customers to retrofit their existing fleet and gain insights in real time. It is an
exciting time for Wellington as we push for a record 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 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 (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

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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