Wellington Drive maintains revenue growth in Q1 2022

®
is a registered Trademark of Wellington Drive Technologies WTWT9661

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
21 April 2022

Market Announcement
For immediate release




Wellington Drive Technologies maintains revenue growth in
Q1-2022

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 provide its
trading results for the three months ended 31 March 2022 (Q1-2022).

• Revenue was $18.4m compared to $14.6m for the same period in 2021 (Q1-2021), a 25.8%
increase.
• Gross Margin was 25.3% (28.6% in Q1-2021).
• EBITDA was $0.3m ($1.0m in Q1-2021).
• Cash at 31 March 2022 was $3.8m and the Company also had $2.4m available under its trade
finance facility.

Since Q4-2021, the Company has been managing through very challenging supply issues, including
electronic component shortages, increased input costs, constraints on shipping and increased shipping
costs.

Component suppliers were unable to supply the quantities required by Wellington to meet its customer
demand, despite confirmed orders in place within lead-times. While the Company purchased components
on the spot market at a significant premium and had redirected its Auckland based engineering team away
from new product development activities to focus on validating alternate components to be used in our
existing products, we were unable to supply all customer orders.

EBITDA for Q1-2022 was also impacted by significant component cost increases, premiums paid for spot
market purchases amounting to $0.4m and a lower level of capitalised development time of $0.3m ($0.7m in
Q1-2021).

To address product cost increases, Wellington has already adjusted customer pricing and further pricing
changes are under consideration.

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We believe we have resolved the component supply situation for our Connect SCS product range and are
now in the final stages of testing and certifying alternate components for our ECR2 motor range.
Unfortunately, production will continue to be impacted in Q2-2022 as new components will not become
available until H2-2022 and existing component supply means production is likely to be well short of what we
require to meet customer demand.

Accordingly, we are adjusting our full year 2022 guidance. We expect US$ invoiced revenue in the range of
US$55m to US$60m (previous guidance was around US$60m) which represents YOY growth of 17% at the
bottom of that range. EBITDA earnings are expected to be in the range NZ$3.5m to NZ$4.5m (previous
guidance in the range of NZ$4.5m to NZ$5.5m) which is still significantly above that recorded in FY2021.

The Company’s revenue would likely have been higher than that forecast but for the operating constraints
outlined above.

CEO Greg Balla commented “Demand continues to be strong from existing customers for new build
refrigeration units and is also increasing in the much larger retrofit market with one major customer
committing to retrofit their entire fleet and several others are progressing well down the path. Our new
products Connect Monitor and Connect Network Pro are also giving us access into new geographies and we
are going through product validation with some of the largest Brands in Europe and the USA. I would like to
thank our team for the immense effort they have put in to support our customers through the major global
supply chain disruptions in Q1-2022”.
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
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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