Wellington trading and guidance update

®
is a registered Trade Mark of Wellington Drive Technologies WT 9611

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



15 December 2021

Market Announcement
For immediate release
Wellington trading and guidance update


FY2021 update
Wellington Drive Technologies Limited (Wellington) advises that revenue for FY2021 is expected to be
approximately US$47m and EBITDA before unusual one-off items is expected to be approximately
NZ$3.9m. Both revenue and EBITDA are within the Company’s previously announced guidance range and
remain subject to supply chain and component/parts availability risks. One-off costs will be incurred including
remaining repayment of the 2020 staff salary sacrifice and the final earnout on the iProximity acquisition.

The FY2021 revenue, noted above, will be a record result for Wellington even though it has been
significantly constrained by component shortages and factory production capacity constraints; earnings have
been affected by escalating costs for components and freight. While these factors are expected to continue
into FY2022, Wellington is redesigning several key products to allow component substitution and our
manufacturer is adding capacity to its factory in Vietnam. These factors should progressively assist
Wellington over FY2022 to meet strong customer demand.

Wellington expects to close the year with net cash around NZ$5m.


FY2022 outlook
After doubling revenue in FY2021, revenue is expected to continue growing strongly in FY2022, with the
Company forecasting growth of approximately 25% to around US$60m. The additional gross profit from this
growth is being reinvested back into expansion of engineering and sales staff and infrastructure as
Wellington broadens its product and geographic spread. This step change in organisational capability is
required to support the strong customer demand the Company is seeing for its ECR motors, and particularly
its IoT (Internet of Things) solutions where adoption is still at an early stage and there is significant
opportunity.

WT 9611


2
In 2019, Wellington presented its Vision 2023 objective of NZ$100m of revenue by FY2023. Assuming that
the supply chain issues are resolved during FY2022 and the strong customer demand for our current product
range continues, the team still views this target as achievable.

CEO comment
Wellington’s CEO, Greg Balla commented “We are pleased with our FY2021 performance, especially with
the degree to which customer demand has returned and our IoT products are continuing to gain momentum.
I would like to give special thanks to our team who have continued to perform at a high level, supporting
customers, despite ongoing pressures from COVID. Our FY2022 revenue outlook is strong and we are
taking action to mitigate, where possible, the impact of component shortages and supply chain challenges.
Wellington needs to further invest in engineering and sales capability, to ensure we provide a scalable IoT
platform to allow for at least 10 million connected coolers world-wide in our next phase of growth.

We now have over 1.5 million devices connected to the Wellington IoT cloud and customers are beginning to
leverage the data and insights to drive significant operational performance improvements. The increased
customer return-on-investment (ROI) is accelerating the demand for connected devices. Wellington’s new
products, Connect™ Monitor and Connect™ Network, are expanding the regions and markets we can
access, and we are very positive about our business outlook.





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


Contact

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