Wellington signals FY guidance towards the top end of range

®
is a registered Trade Mark of Wellington Drive Technologies WT 9680

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



26 August 2022

For immediate release

Wellington Drive signals FY guidance towards the top end of range

Wellington Drive Technologies, a leading provider of Internet of Things (IoT) solutions and energy-efficient
motors to the retail food and beverage industry, is releasing its half-year results for the six months ending
30 June 2022.

• H1 FY22 Revenue: $31.9 million, up 4.4% on H1 FY21
• H1 FY22 EBITDA: -$0.6 million, down from $1.8m in H1 FY21
• H1 FY22 Pre-tax result -$1.9 million, compared to +$0.6 million in H1 FY21
• Full-year guidance reconfirmed at EBITDA $3.5 – $4.5 million

Since the beginning of the financial year, the company has experienced ongoing supply issues due to global
electronic component shortages, resulting in increased input and shipping costs, and shipping constraints.

Despite this impact, the company achieved 4.4% revenue growth during the first half of FY22, compared to
the same period last year. The company has also made several decisions to protect itself from further
supply chain challenges and is reconfirming its full-year guidance.

H1 FY22 Business highlights include:
• Shipped 276,000 Connect™ SCS controllers, an 18% increase on H1 FY21, and shipped 18,000 of the
recently launched Connect™ Monitor, an innovative retrofittable battery-powered, multi-sensor
device
• Invoiced $2.8m for Cloud data connection and software development charges, a 102.3% increase
on the same time last year
• Secured a Net Promotor Score (NPS) of +40, outperforming the benchmark for New Zealand B2B
industrial companies of +25
• Developed a new brand, AoFrio, which will launch in Q4 2022, to better articulate the company’s
value to customers around the world.

Gottfried Pausch, Chairman of Wellington Drive says, “Given the supply constraints the Company faced, we
consider this a solid performance.

“Since the beginning of the financial year, demand has outstripped supply on almost all fronts, and we
deliberately decided to protect revenue and customer experience for the long term.

WT 9680

2

“This meant we incurred additional costs, for air freight and spot purchase of components. But our recent
industry-leading NPS of +40 demonstrates that the customer team has done an excellent job managing
these challenging times with customers.

“We’re firmly focused on growth for the long term, and whilst supply chain challenges have impacted our
bottom line during H1 FY22, we are on track for a strong second half – and an even stronger FY23,” says Mr
Pausch.

During the first half of FY22, the company incurred higher salary costs to retain key staff in the current
environment. Most engineering time was spent on component swap-out work at the expense of
capitalisable new product development. The company also incurred a cost premium of $0.6m due to spot
purchases of componentry.

Outlook
Wellington Drive CEO, Greg Balla says the team have a clear strategy to become a global hardware-
enabled, full-service SaaS company.

“In response to our H1 challenges, we have recalibrated many aspects of our business to set ourselves up
for a strong H2 FY22.

“We think we are through the worst of the supply chain challenges. Customer demand continues to be
strong, and the changes we have already made are starting to deliver results.

“During the second half of the year, we will benefit from our investment in redesigns of alternative
components to allow variations of the same products to be built. We have also increased the volume of
components on hand to ensure we can deliver against forecast demand in the back end of FY22,” says Mr
Balla.

During the final quarter of the year, the company will rebrand completely as AoFrio and deliver a marketing
program to articulate the value the company adds to customers around the world.

As a result of the outlook for H2 22 and H1 22 performance, the Board and executive team are pleased to
reconfirm guidance and expect annual EBITDA to fall within $3.5 – $4.5 million. Wellington Drive expects
three very large revenue months in the last quarter and, if successful, will be towards the top end of its
guidance.

Authorised by:
Board of Directors of Wellington Drive Technologies

WT 9680

3
About Wellington Drive Technologies:
Wellington is a leading provider of IoT solutions, cloud-based fleet management platforms, proximity
marketing solutions, 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 solutions for global food and beverage brands as well as Smart City projects in
the Australian market. Wellington’s products and services 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
Chief Executive Officer
Phone +64 21 938601

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Interim report 2022Wellington Drive Technologies Ltd
1
Interim report
2022

Interim report 2022Wellington Drive Technologies Ltd
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® is a registered Trade Mark of Wellington Drive Technologies Ltd
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.
Wellington by numbers
Letter from Chair and CEO

Financial performance
Business update
Summary
Rebrand
Financial statements
03.
04.
05.
07.
11.
12.
13.
Contents

Interim report 2022Wellington Drive Technologies Ltd
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H1 FY22 Revenue: $31.9 million, up 4.4% on H1 FY21
$ 31.9m
Revenue
Estimated 90 million bottle coolers in operation globally today. Wellington’s
current solution addresses a market opportunity of 30 million bottle coolers.
90m
Market opportunity
Net Promoter Score +40, beating the NZ industrial B2B benchmark of +25
+40
NPS
70% of new product development time was redirected to support existing
products, with component swaps required due to supply chain issues.
70%
New product development
H1 FY22 EBITDA: -$0.6 million, down from $1.8m in H1 FY21.
Full-year guidance: EBITDA $3.5 – $4.5 million
$ -0.6m
EBITDA
3

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Letter from
Chair and CEO
We are pleased to report that Wellington achieved $31.9 million in revenue
for the six months ending 30 June 2022 (H1 FY22), up 4.4% compared to the
same period last year (H1 FY21). Given the supply constraints the Company
faced, we consider this a solid performance.
Since the beginning of the financial year, we have experienced ongoing
supply issues, including electronic component shortages, increased input
costs, constraints on shipping and increased shipping costs.
Our focus is growth for the long term, and while supply chain challenges have
impacted our bottom line during H1 FY22, we are on track for a strong second
half – and expectations of an even stronger FY23.
Gottfried Pausch
Chairman
Chief Executive Officer
Greg Balla

Interim report 2022Wellington Drive Technologies Ltd
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Earnings before interest, tax, depreciation, and
amortisation (EBITDA) was a loss of $0.6m, compared to
a $1.8m surplus for the corresponding period last year,
before adjustment for non-recurring items.
Our business has been constrained by product
availability, and our team has worked hard to manage
supply, identify componentry swap-outs, and support our
customers as best as we could during these challenging
times.
We made the deliberate decision to support our
customer experience for the long term. This meant we
incurred additional costs for air freight and spot purchase
of components, all of which impacted gross profit.
We also incurred higher salary costs to hire and retain
key staff in the current environment, and most of our
engineering time was spent on component swap-out
work at the expense of capitalisable new product
development.
The pre-tax result was a loss of $1.9 million, compared
to a profit of $0.6 million for the comparable period.
US$ revenue was US$22.4 million, 1.8% lower than last
year. The decline in the NZ dollar since last year, relative
to the US dollar, meant Wellington’s NZ$ reported
revenues for the period show an increase.
Financial performance

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Reconfirming guidance
In response to our H1 challenges, we have recalibrated many aspects of
our business to set ourselves up for a strong H2 FY22.
We believe we are through the worst of the supply chain challenges.
Customer demand continues to be strong, and the changes we have
already made are starting to deliver results.
On the basis there are no material changes in circumstances, Wellington
is sufficiently funded, from a combination of cash-on-hand and existing
debt facilities, to enable it to meet guidance expectations.
The Board and executive team are pleased to reconfirm full year guidance.
We expect US$ invoiced revenue in the range of US$55 million to US$60
million, which represents YOY growth of 17% at the bottom end of the
range up to 27% at the top end. EBITDA earnings are expected to be
in the range $3.5 million to $4.5 million, which is significantly above that
recorded in FY21.

Trading results for H2 FY22 are expected to show a significant increase
over H1 FY22. US$ revenue is expected to be 46% above H1 FY22 at
the bottom of the range and 68% at the top end. EBITDA for H2 FY22 is
expected in the range $4.1 million to $5.1 million.
We expect three very large revenue months in the last quarter and if we
are successful, we would be towards the top end of our guidance.
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.
Operating expenses for the six months ending 30 June 2022 were $8.9
million, 30% higher than the comparable period last year, consistent with
our business plan.
As planned to support product development, staffing has increased from
85 in June 2021 to 98 in June 2022. In addition, team salaries have been
adjusted because of global labour market pressure.
The capitalisation of product development time was reduced by $0.7m
due to the time required to be spent on redesigns for component swap-
outs to mitigate supply chain shortages.
Operating expenses

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We have a clear strategy for our next growth phase –
we have transformed the business to become a global
hardware-enabled, full-service software as a service
(SaaS) company.
While we have had a challenging first half of this financial
year, this strategy has already started to deliver, and
we are on track to become a NZ$100 million revenue
company in 2023.
This strategy is our pathway to lifting recurring IoT
SaaS-driven revenue, expanding in existing markets and
exploring new export markets.
Business update

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Demand has outstripped supply on almost all fronts
during the first half of the financial year. Our team has
worked hard to navigate and offset supply chain issues
as best as possible.
Wherever possible, we prioritised protecting our
customer relationships during these challenging times.
We have invested in redesign using alternative
components to allow variations of the same products
to be built. We’ve also had to update our firmware and
software to support these different alternatives.
We have also invested strategically to increase the
volume of components we hold in inventory to ensure we
can deliver against forecast demand in the back end of
FY22.
We have now secured enough stock of our key
components to cover what we anticipate manufacturing
during the next 12 months.
Navigating the supply chain issues has negatively
impacted gross margin across the first six months. Gross
margin sat at 26.6% during H1 22, compared to 29.0%
last year.
The team had to source some electronic components on
the spot market due to regular suppliers being unable to
meet contracted quantities and delivery dates. The cost
premium of these spot purchases was $0.6m.
We have adjusted customer pricing to reflect increased
product and shipping costs, although many of these
pricing changes are only effective from the second half
of FY22.
Supply chain challenges
We’ve been acutely aware of the risk to client
relationships when, due to the global supply chain
shortages, we can’t supply them with what they need.
However, our recent industry-leading net promotor score
(NPS) demonstrates that our sales customer team has
done an excellent job managing these challenging times
with customers.
NPS is a widely used market research tool that captures
the likelihood that customers would recommend a
company.
In New Zealand, the benchmark for B2B industrial
companies is +25, and Wellington achieved a +40 score.
Alongside maintaining customer relationships, we have
also finalised a new brand for Wellington, which will
launch in the final quarter of this financial year.
After consulting with our team, clients, and shareholders,
we learned our New Zealand heritage is a powerful
global differentiator for us. We also learned that we’re
held in high regard for unearthing powerful customer
outcomes and insights through our software and
hardware.
During the final quarter of the year, we will rebrand
completely, and wrap around the launch a new wave of
customer communications to articulate the value we add
to companies around the world. Details of the new brand
can be found on page 12.
Maintaining customer relationships

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As we deliver our IoT vision, the team has been focussed
on moving customers from what we call base IoT
customers through to engaged IoT customers.
This shifts them from receiving standard reports through
to leveraging our consumer engagement, machine
learning and Artificial Intelligence (AI) solutions.
Moving customers up these levels translates into recurring
software and professional services fees, and is already
translating into growth.
Across the first half of the year, we shipped 276,000
Connect™ SCS controllers, an 19% increase on H1
FY21, and we shipped 18,000 of the recently launched
Connect™ Monitor, an innovative, retrofittable, battery-
powered, multi-sensor device.
The higher IoT hardware volumes have translated into
higher Cloud data connection revenue. We invoiced $2.8m
for Cloud data connection and software development
charges during the first half, a 102.3% increase.
This revenue is multi-year and is recognised in the
Income Statement spread across the duration of the
contract. On 30 June 2022, we held $9.0 million of
deferred revenue for recognition in subsequent periods.
In order to increase customer maturity levels, we have
developed a suite of new products. This includes
Connect™ Network Pro, which enables us to help
customers collect data from remote appliances and
communicate the data to the cloud, via cellular or
wifi networks, more efficiently and without human
involvement.
Additionally, the growth of products such as Connect
Monitor is significant – we are seeing encouraging signs
of adoption across the refrigeration market.
We have developed new features for IoT customers
that will deliver significant benefits over and above what
they’re already achieving. One example is preventative
maintenance alerts where, in the future, we’ll be able to
alert our customers to what equipment is going to break
down and for what reason.
Now that we have worked through redesign of products
for componentry swaps, we are able to accelerate
research and development of new products.
We are continuing to develop our strategy for entering
adjacent markets. We are progressing the rollout of
temperature monitoring in supermarket multi-door
displays, and we are exploring a food safety solution that
combines Connect Network Pro, Connect Monitor, apps
and cloud for the food service industry.
Growing IoT and innovation

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Sustainability
People and team
Wellington’s EC motors have saved 2.2TWh (Terawatt hours) of
energy to date, which equates to 4.5 years of the power generated
by the Huntly Power Station.
But our commitment to sustainability goes beyond what we enable
our customers. We are also focused on the impact that manufac-
turing and distributing our products has and are evaluating options
to reduce our carbon footprint. As a part of this, we are underway
with developing our Environmental, Social and Governance (ESG)
strategy and will share further updates in our annual report.
We shipped 492,000 motors during the six months to June 30,
2022. This was lower than the 685,000 motors shipped during the
corresponding period last year, as motor production was heavily
impacted by electronic component shortages.
We also received significant new customer enquiries from
companies wanting to diversify their supplier network. This has
created valuable sales opportunities as we start overcoming
supply chain issues.
Our range of commercial refrigeration fan motor accessories
sets the benchmark for efficiency, airflow, and quiet performance,
and we are currently investing in expanding our range of high-
performance fans.
Across the first half of the financial year, we’ve been delighted to
hire some incredible new people and grow talent internally.
Just after the end of H1, we were particularly pleased to hire Rami
Elbeltagi as Vice President of Engineering.
Hardware update

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Summary
Gottfried Pausch, Chairman
25 August 2022
Greg Balla, Chief Executive Officer
25 August 2022
As a business, we are in a strong position heading into H2 FY22.
We have reconfirmed our annual guidance of EBITDA of between
$3.5 and $4.5 million. As a result of operational improvements
such as product re-design and holding increased inventories, we
have built the platform for a strong H2.
On behalf of the whole Wellington Board and Executive team, we
would like to thank our people across the globe for their efforts.
Together, our future is firmly focused on meeting the needs of our
global customers to deliver commercial refrigeration intelligence
and a connected advantage.

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AO | MĀORI FOR WORLD
FRIO | SPANISH FOR COLD
As we develop into a hardware-enabled SaaS company,
we’re rebranding to showcase what we’ve evolved into.
In the final quarter of 2022, we will become AoFrio.
We see a future where hundreds of millions of AoFrio
connections drive powerful, purposeful outcomes for
customers.
We will make this happen by scaling new heights
for commercial refrigeration through sustainable
transformative technologies.
We're driven by an immense hunger to unearth powerful
customer outcomes and insights through constant technology
innovation.
Our future is now firmly focused on meeting the needs of
our global customers, shareholders and team to deliver
sustainable transformative technologies and a connected
advantage.
WELCOME TO OUR WORLD OF COLD, AOFRIO.

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Financial
Statements
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Financial Statements

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Financial Statements
Consolidated and Condensed Interim Statement of Comprehensive Income
Six months ended
Unaudited
Year ended
Audited
Note
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Revenue2.1,2.331,89230,56164,218
Cost of sales(23,397)(21,707)(46,345)
Gross profit8,4958,85417,873
Foreign exchange (losses) / gains(250)6374
Other income2.4324654
Operating expenses(8,924)(6,840)(15,052)
Gain / (loss) on remeasurement of contingent
consideration
5.168(293)(323)
Earnings before interest, taxation, depreciation,
amortisation and impairment
(579)1,8302,626
Depreciation3.5(283)(278)(578)
Amortisation3.6(908)(847)(2,015)
Impairment3.6--(393)
(Loss) / profit before interest and taxation(1,770)705(360)
Finance income4.2401211
Finance expenses4.2(136)(99)(207)
(Loss) / profit before income tax(1,866)618(556)
Income tax (expense) / credit 2.7(1)(7)5,981
(Loss) / profit for the period(1,867)6115,425
Other comprehensive income:
Items that may be reclassified subsequently
to the profit or loss:
Exchange differences on translating operations
886330117
Other comprehensive income for the period886330117
Total comprehensive income for the period(981)9415,542
(Loss) / profit for the period attributable to the Owners
of the Company
(1,867)6115,425
Total comprehensive income attributable to the
Owners of the Company
(981)9415,542
Basic earnings per share – cents2.6(0.43)0.141.26
Diluted earnings per share – cents2.6(0.43)0.141.23
The above Consolidated and Condensed Interim Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Interim report 2022Wellington Drive Technologies Ltd
15
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 2022
Balance at 1 January 2022135,555(111,467)(3,800)20,288
Comprehensive income:
Loss for the period-(1,867)-(1,867)
Other comprehensive income:
Exchange differences on translation of
foreign operations
--886886
Total comprehensive income-(1,867)886(981)
Share options compensation expensed--4747
Part paid shares repayment4.3(2)--(2)
Contributions of equity net of costs4.3253 -253
Balance at 30 June 2022135,806 (113,334) (2,867) 19,605
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 2021135,555(116,281)(3,618)15,656

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Consolidated and Condensed Interim Statement of Movements in Equity - continued
Note
Share
capital
$000s
Accumulated
losses
$000s
Other
reserves
$000s
Total
equity
$000s
Audited for year ended 31 December 2021
Balance at 1 January 2021135,555(116,892)(3,948)14,715
Comprehensive income:
Profit for year-5,425-5,425
Other comprehensive income:
Exchange differences on translation of foreign
operations
--117117
Total comprehensive income-5,4251175,542
Share options compensation expensed--3131
Balance at 31 December 2021$135,555(111,467)(3,800)20,288
The above Consolidated and Condensed Interim Statement of Movements in Equity should be read in conjunction with the accompanying notes.

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Consolidated and Condensed Interim Statement of Financial Position
UnauditedAudited
Note
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Current Assets
Cash and cash equivalents4,8396,1465,953
Trade and other receivables3.115,67714,71717,847
Inventories3.26,7034,7654,600
Total current assets27,21925,62828,400
Non-Current Assets
Property, plant and equipment3.51,8911,9141,724
Deferred tax asset6,051-6,051
Intangible assets3.613,27513,14412,619
Total non-current assets21,21715,05820,394
Total assets48,43640,68648,794
Current Liabilities
Trade and other payables3.317,17117,31519,167
Contract liability2.31,8741,2091,431
Provisions3.4225199205
Derivative financial instruments2741321
Borrowings4.11,0291,095731
Total current liabilities20,57319,83121,555
Non-Current Liabilities
Borrowings4.11,1581,0191,266
Contract liability2.37,1003,8875,362
Contingent consideration-293323
Total non-current liabilities8,2585,1996,951
Total liabilities28,83125,03028,506
Net assets19,60515,65620,288

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Consolidated and Condensed Interim Statement of Financial Position - continued
UnauditedAudited
Note
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Equity
Contributed equity4.3135,806135,555135,555
Accumulated losses(113,334)(116,281)(111,467)
Other reserves(2,867)(3,618)(3,800)
Total equity19,60515,65620,288
The above Consolidated and Condensed Interim Statement of Financial Position should be read in conjunction with the accompanying notes.

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Consolidated and Condensed Interim Cash Flow Statement
Six months ended
Unaudited
Year ended
Audited
Note
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Cash flows from operating activities
Receipts from customers exclusive of GST / VAT37,06425,44657,993
Payments to suppliers and employees exclusive of GST /
VAT
(37,506)(23,059)(54,861)
Foreign exchange (losses) / gains(250)6374
Other income324654
Interest paid(136)(98)(204)
Interest received 4.2401211
Taxation paid(97)(5)(31)
Net GST / VAT received303717911
Net cash (outflow) / inflow from operating activities(550)3,1223,947
Cash flows from investing activities
Payments for property, plant and equipment3.5(292)(48)(134)
Proceeds from disposals of property, plant and equipment25--
Payments for intangible assets 3.6(554)(1,289)(2,089)
Net cash outflow from investing activities(821)(1,337)(2,223)
Cash flows from financing activities
New loan and drawdowns4.14221,1542,071
Loan repayments4.1(189)(1,152)(1,902)
Principal payments for right-of-use assets 4.1(114)(178)(217)
Net cash inflow / (outflow) from financing activities119(176)(48)
Net (decrease) / increase in cash and cash equivalents(1,252)1,6091,676
Cash and cash equivalents at the beginning of the
financial period
5,9534,6104,610
Effect of exchange rate movements on cash138(73)(333)
Cash and cash equivalents at end of period4,8396,1465,953
The above Consolidated and Condensed Interim Cash Flow Statement should be read in conjunction with the accompanying notes.

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Notes to the Financial Statements

for the six months ended 30 June 2022
1. Basis of preparation
1.1 General Information
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 2021.
These consolidated and condensed financial statements have been approved for issue by the Board of Directors on 24
th
August
2022 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 1 – Classification of liabilities as Current and Non-Current – effective from 1 January 2023
• Amendments to NZ IAS 8 – Definition of Accounting Estimates – effective from 1 January 2023
Going concern assumption
The Group reported a loss for the six months ended 30 June 2022 year of $1,867,000 (2021: profit of $611,000) and operating
cash outflows of $550,000 (2021: Inflows of $3,122,000). Cash at 30 June 2022 was $4,839,000 (2021: $6,146,000) and net
cash (defined as cash balances net of borrowings) was $2,652,000 (2021: $4,032,000).
The Group has issued guidance for the year ended 31 December 2022. US$ invoiced revenue is expected in the range of
US$55 million to US$60 million and EBITDA is expected in the range $3.5 million to $4.5 million.
The Group remains subject to a higher than usual level of risk in the current global environment including unexpected cost
increases, factory closures or capacity reductions due to the COVID-19 virus, suppliers unable to supply some critical
components and other unanticipated disruptions to supply.

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21
The Group has managed through these disruptions in 2022 by:
• Increasing pricing to maintain gross margins.
• Actively sourcing alternate components.
• Redesigning products to utilise alternate components where required.
• Extending customer order lead times.
• Engaging with customers to delay deliveries and / or otherwise vary customer orders.
The Board expects these actions to continue to be required throughout 2022. Forecasts have been prepared which make
allowance for expected cost increases, product redesign and associated costs. These forecasts are most sensitive to revenue
declines due to customer demand and margin pressure, and delays in delivering products to customers due to the impact of
macroeconomic supply chain factors. The Board considers that there are actions that would be taken to ensure that the Group
would maintain adequate cash reserves.
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 from the date of approving the financial statements,
and they have assessed it is appropriate to continue to adopt the going concern basis 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.
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
Areas of judgement
• Deferred tax asset – recognition – note 2.7
• Development costs – capitalisation of expenses and testing – note 3.6

Interim report 2022Wellington Drive Technologies Ltd
22
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 2022 (six months)
Motors
$000s
IoT
$000s
Unallocated
$000s
Total
$000s
Revenue15,61916,273-31,892
Cost of goods sold13,7979,600-23,397
Gross profit1,8226,673-8,495
Gross profit %11.7%41.0%-26.6%
Foreign exchange losses--(250)(250)
Other income632332
Operating expenses(1,497)(3,346)(4,081)(8,924)
Gain on remeasurement of contingent consideration-68-68
EBITDA3313,398(4,308)(579)
Depreciation(161)(87)(35)(283)
Amortisation(167)(739)(2)(908)
Profit / (loss) before interest & taxation32,572(4,345)(1,770)
Finance income--4040
Finance expense--(136)(136)
Profit / (loss) before income tax32,572(4,441)(1,866)
Income tax expense--(1)(1)
Profit / (loss) for the period32,572(4,442)(1,867)

Interim report 2022Wellington Drive Technologies Ltd
23
Non-current assets
Property, plant and equipment5541191,2181,891
Deferred tax asset--6,0516,051
Goodwill-3,254-3,254
Intangible assets3,7756,1479910,021
Total non-current assets4,3299,5207,36821,217
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%
Foreign exchange gains--6363
Other income4251746
Operating expenses(1,157)(1,885)(3,798)(6,840)
Gain on remeasurement of contingent consideration-(293)-(293)
EBITDA2,0143,534(3,718)1,830
Depreciation(26)(92)(160)(278)
Amortisation(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 period1,8362,757(3,982)611
Non-current assets
Property, plant and equipment5821331,1991,914
Goodwill-3,138-3,138
Intangible assets3,9375,76230710,006
Total non-current assets4,5199,0331,50615,058

Interim report 2022Wellington Drive Technologies Ltd
24
December 2021 (12 months)
Motors
$000s
IoT
$000s
Unallocated
$000s
Total
$000s
Revenue38,98525,233-64,218
Cost of goods sold(31,875)(14,470)-(46,345)
Gross profit7,11010,763-17,873
Gross profit %18.2%42.7%27.8%
Foreign exchange gains--7474
Other income4361454
Operating expenses(2,539)(4,508)(8,005)(15,052)
Gain on remeasurement of contingent consideration-(323)-(323)
EBITDA4,5755,968(7,917)2,626
Depreciation(301)(192)(85)(578)
Amortisation(307)(1,669)(39)(2,015)
Impairment(393)--(393)
Profit / (loss) before interest & taxation3,5744,107(8,041)(360)
Finance income--1111
Finance expense--(207)(207)
Profit / (loss) before income tax3,5744,107(8,237)(556)
Income tax credit--5,9815,981
Profit / (loss) for the year3,5744,107(2,256)(5,425)
Non-current assets
Property, plant and equipment5061111,1071,724
Deferred tax asset--6,0516,051
Goodwill-3,127-3,127
Intangible assets3,5415,4944579,492
Total non-current assets4,0478,7327,61520,394

Interim report 2022Wellington Drive Technologies Ltd
25
(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 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Americas25,41625,11751,068
Asia / Pacific (APAC)3,0862,0794,950
Europe / Middle East / Africa (EMEA)3,3903,3658,200
Total31,89230,56164,218
Revenue is allocated above based on the country in which the customer is located. APAC revenue includes $597,000 (2021:
$589,000) from New Zealand customers.
Total non-current assets
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Americas32212,074
Asia / Pacific - mainly in New Zealand21,15914,97618,273
Europe / Middle East / Africa266147
Total21,21715,05820,394
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
3rd quarter due to customers in the northern hemisphere shutting down for summer holidays and increasing again in the 4th
quarter. This does not appear to be position this year due to supply constraints in the 1st half year pushing delaying revenue to
later in the year and current forecasts show a higher 2nd half year and a high 4th quarter.
Revenues and operating profits in the 4th and 1st 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 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Sales of goods revenue30,76429,97362,771
Services revenue1,1285881,447
Total31,89230,56164,218
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.

Interim report 2022Wellington Drive Technologies Ltd
26
(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 sales 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 Monitor 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. No explicit element of financing is deemed present.
The Group also provides software development services for customers. Revenue from these services is recognised when the
contracted development is completed according to the agreed scope of work.

Interim report 2022Wellington Drive Technologies Ltd
27
Six months endedYear ended
Contract liabilities
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Carrying amount at start of period6,7934,1964,196
Invoiced in the period2,7681,3683,860
Recognised in revenue(1,128)(588)(1,447)
Exchange adjustment541120184
Carrying amount at end of period8,9745,0966,793
Current portion1,8741,2091,431
Non-current portion7,1003,8875,362
8,9745,0966,793
2.4 Other income
Six months endedYear ended
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
COVID-19 government subsidies-1515
Other income323139
Total324654
2.5 Operating expenses include
Six months endedYear ended
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Wages and salaries and other short-term benefits6,0595,63211,300
Employer contributions to Kiwisaver and 401K plans231189385
Employee share option expenses47-31
Employee benefits6,3375,82111,716
Payments to contractors8936641,591
Capitalisation of labour and expenses to intangible assets(526)(1,253)(2,057)
The amount disclosed above for wages and salaries is stated before capitalisation of labour to intangible assets.

Interim report 2022Wellington Drive Technologies Ltd
28
Liability for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to
be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to
the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-
accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
Wages and salaries in 2021 included $1,109,000 for the reimbursement in the year of 2020 staff salary reductions which were
an important component of the Group’s COVID response.
The Group recognises a liability and an expense for bonuses and creates a provision where contractually obliged or where
there is past practice that has created a constructive obligation.
2.6 Earnings per share
Earnings per share (‘EPS’) is the amount of post-tax profit attributable to each share.
Basic EPS of a loss of 0.43 cents (June 2021 – profit of 0.14 cents) is calculated by dividing the loss attributable to equity
holders of the Company of $1,867,000 (June 2021 – profit of $611,000) by the weighted average number of ordinary shares in
issue during the period of 432,229,459 (June 2021 – 431,914,620).
Diluted EPS for the six months ended 30 June 2022 of a loss of 0.43 cents (June 2021 - profit of 0.14 cents) is calculated by
dividing the loss attributable to equity holders of the Company of 1,867,000 (June 2021 - profit of $611,000) 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 Income tax
The charge for the period can be reconciled to the result before tax as follows:
Six months endedYear ended
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Reported (loss) / profit before tax(1,866)618(556)
Tax at 28%(522)173(156)
Effect of different rates of subsidiaries in other jurisdictions(7)-(5)
Tax effect of non-deductible / non-assessable items(40)(14)(31)
Tax effect of losses incurred / (utilised) not recognised568(166)122
Initial recognition of deferred tax asset--6,051
Income tax (expense) / credit(1)(7)5,981
As it is probable that future taxable amounts will be available to utilise temporary differences and losses, a deferred tax asset
was recognised at 31 December 2021 for deductible temporary differences and for that portion of the unused tax losses
expected to be utilised in the forseeable future. No deferred tax asset has been recognised in respect of the remaining tax
losses to carry forward due to uncertainty as to forecast taxable income over a longer term. 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.

Interim report 2022Wellington Drive Technologies Ltd
29
3. Operating assets and liabilities
3.1 Trade and other receivables
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Trade receivables 14,28913,96016,498
Provision for loss allowance(47)(195)(90)
Net trade receivables14,24213,76516,408
Prepayments862507837
VAT / GST refunds due6055133
Income tax refund due310250214
Other receivables203140255
15,67714,71717,847
The Group applies the simplified approach permitted by NZ IFRS 9 which requires lifetime expected 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.
The Group takes out trade credit insurance to hedge against some of the credit risk. NZ IFRS 9 requires the Group to calculate
expected credit losses on trade receivables using a provision matrix. The Group has reviewed its credit loss experience over
the period from 2013 to 2021 and has determined that the probability weighted credit loss experience over that period 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 balance date has been calculated at 1.5% for customers
assessed as higher risk and 0.1% for all others (2021: 1.5% and 0.1% respectively).
3.2 Inventories
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Finished goods – at cost4,6273,9764,727
Work in progress – at cost-454-
Raw materials – at cost2,477721320
Less inventory provisions(401)(386)(447)
Total inventories6,7034,7654,600

Interim report 2022Wellington Drive Technologies Ltd
30
3.3 Trade and other payables
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Trade payables13,87713,88314,508
Employee entitlements1,3651,5441,791
VAT / GST payable310358353
Accrued expenses1,6191,5302,515
17,17117,31519,167
3.4 Provisions
Warranty provisions
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Carrying amount at start of period205315315
Additional provisions recognised562656
Amounts used(56)(149)(178)
Exchange adjustment20712
Carrying amount at end of period225199205
3.5 Plant and equipment
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Net book amount at start of period1,7242,0832,083
Additions29248134
Depreciation(283)(278)(578)
Disposals---
Exchange adjustment1586185
Net book amount at end of period1,8911,9141,724
Depreciation
Property9790167
Plant and equipment124132276
Office equipment, furniture & fittings6256135
283278578
Capital commitments
Capital commitments contracted at 30 June 2022 amounted to $136,260 (June 2021 $124,000)

Interim report 2022Wellington Drive Technologies Ltd
31
3.6 Intangible assets
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Net book amount at start of period12,61912,39712,397
Additions5541,2892,089
Amortisation(908)(847)(2,015)
Impairment--(393)
Exchange adjustment1,010305541
Net book amount at end of period13,27513,14412,619
Analysis of net book amount
Internally generated development assets9,4219,3279,085
Patents235218215
Goodwill3,2543,1383,127
Other365461192
13,27513,14412,619

Additions in the six months to 30 June 2022 include $526,000 (2021: $1,253,000) for internally generated development costs
and $28,000 (2021: $36,000) for patents, trademarks and software. Payments for intangible assets in the period amounting to
$554,000 (2021: $1,289,000) are included in the Consolidated and Condensed Interim Cash Flow Statement.
Internally generated development costs include $4,256,000 (2021: $3,289,000) 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 2022. The recoverable amount of the IoT CGU at 30 June 2022 has been determined based on a 5 year value in use
calculation using cash flow projections from forecasts for 2022 and 2023. The pre-tax discount rate applied to the cash flow
projections is 14% (2021: 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.

Interim report 2022Wellington Drive Technologies Ltd
32
4. Capital and financing costs
4.1 Borrowings
30 Jun 2022
$000
30 Jun 2021
$000s
31 Dec 2021
$000s
Current portion
Bank loan – BNZ trade finance13457675
Bank loan – Banco del Bajio402216213
Bank loan – SBA22115
Liabilities in respect of right-of-use assets233225232
Other Borrowings23877196
1,0291,095731
Non-Current portion
Liabilities in respect of right-of-use assets645878760
Bank loan – SBA31175284
Other Borrowings20266222
1,1581,0191,266
BNZ trade finance facility
The $2.5m trade finance facility has no term, is repayable on demand and is secured. 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.
Other bank loans
The Company’s US subsidiary borrowed US$198,100 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.
The Company’s Mexican subsidiary borrowed 5 million Mexican Pesos from the Banco del Bajio. The loan is repayable after
six months and interest is payable at 4% above the Tiee Rate.

Interim report 2022Wellington Drive Technologies Ltd
33
4.2 Finance income and expenses
Six months endedYear ended
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Finance income
Interest income401211
401211
Finance expense
Interest expense – Bank loans71427
Other interest expense12985180
13699207

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 2022
Shares
30 Jun 2021
Shares
30 Jun 2022
$000s
30 Jun 2021
$000s
Ordinary shares – fully paid433,488,816431,914,620135,806135,553
Ordinary shares – partly paid-421,980-2
Total shares on issue433,488,816432,336,600135,806135,555
(a) Ordinary shares – fully paid
30 Jun 2022
Shares
30 Jun 2021
Shares
30 Jun 2022
$000s
30 Jun 2021
$000s
Opening balance of ordinary shares on
issue
431,914,620431,914,620135,553135,553
New shares issued1,574,196-253-
Share issue costs----
Ordinary fully paid shares on issue at
period end
433,488,816431,914,620135,806135,553
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.

Interim report 2022Wellington Drive Technologies Ltd
34
(b) Ordinary shares – partly paid
Six months ended
30 Jun 2022
Shares
30 Jun 2021
Shares
30 Jun 2022
$000s
30 Jun 2021
$000s
Opening balance of ordinary shares on
issue
-421,98022
Repayment of part payment--(2)-
Ordinary fully paid shares on issue at
period end
-421,980-2

The part paid shares lapsed in the 2021 year and all payments received were refunded in March 2022.

Interim report 2022Wellington Drive Technologies Ltd
35
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.
The purchase consideration was:
$000s
Cash paid1,367
Contingent consideration2,327
Total purchase consideration3,694
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. The Company agreed to extend the period for the 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. 4,724,482 ordinary shares in the Company have been issued to 31 December 2021 in respect of the Connect
SCS targets. A further 1,574,196 shares were issued in April 2022 in respect of the extended and revised target. No further
contingent consideration is payable.
Contingent consideration
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Fair value at start of period323--
Remeasurement recognised in income statement(68)293323
Settlement during the period(255)--
-293323

Interim report 2022Wellington Drive Technologies Ltd
36
5.2 Related party transactions
(a) Directors
The names of persons who are Directors of the Company are on page 42.
(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.
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Salaries, fees and other short-term benefits1,4229141,776
Share based remuneration31-31
Directors’ remuneration119259561
Total1,5721,1732,368
(c) Employee share-based remuneration
In 2021, 12,930,000 options were issued to the Chief Executive Officer. 8,620,000 options (Tranche One) will vest on 1
October 2024 and 4,310,000 options (Tranche Two) will vest on 1 October 2025, if the CEO remains a full-time employee
on those dates. The exercise price of the Tranche One options is 9.1 cents and of the Tranche Two options is 11.5 cents.
The fair value of the employee services received in exchange for the grant of 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 options are exercised.
(d) East West Manufacturing LLC (East West), a substantial security holder in the Company until 22 December 2021, 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 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Purchases from East West23,20719,42819,865
Sales to East West145254459
Cash payments to East West23,83513,74226,036
Cash receipts from East West274128879
Trade receivable from East West at period end7717145
Trade payable to East West at period end12,9139,9704,285
Interest receipts from East West for early pay-
ments of the trade payable
34--
Interest payments to East West for extended
credit terms
--103

Interim report 2022Wellington Drive Technologies Ltd
37
5.3 Contingencies and commitments
There are no material contingent liabilities or assets (June 2020 - $nil).
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 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Right-of-use assets
Properties740834765
Plant and equipment123121
Office equipment, furniture and fittings475
756872791
Additions to right-of-use assets in the period
Plant and equipment---
Office equipment, furniture and fittings---
---
The Consolidated and Condensed Interim Statement of Comprehensive Income shows the following amounts related to leases
of right of use assets:
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Depreciation charge for right-of-use assets
Properties9988180
Plant and equipment9918
Office equipment, furniture and fittings223
11099201
Interest expense on lease liabilities313975
Expense relating to short-term leases (included in
operating expenses)
262142
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 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Total principal payments for right-of-use assets 114178217

Interim report 2022Wellington Drive Technologies Ltd
38
5.5 Financial instruments by category
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Assets per Statement of Financial Position
Financial assets measured at amortised cost
Trade and other receivables15,30714,41217,500
Cash and cash equivalents4,8396,1465,953
Derivatives used for hedging at fair value
Derivative financial instruments---
20,14620,55823,453
Liabilities per Statement of Financial Position at amortised cost
Trade and other payables17,17117,31519,167
Borrowings2,1872,1141,997
Liabilities at fair value
Contingent consideration-293323
Derivative financial instruments2741321
19,63219,73521,508

Fair value estimation
The only financial instruments carried at fair value at 30 June 2022 are derivatives comprising forward foreign exchange
contracts.
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.

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39
5.6 Maturity analysis
The amounts disclosed are the contractual undiscounted cash flows.
30 June 2022
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months17,11367911717,909
7 to 12 months-117116233
2 to 5 years-5136451,158
17,1131,30987819,300
30 June 2021
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months17,27082911018,209
7 to 12 months-41115156
2 to 5 years-1418781,019
17,2701,0111,10319,384
31 December 2021
Trade and
other payables
$000s
Borrowings
$000s
Lease
liabilities
$000s
Total
$000s
Less than 6 months19,04639411419,554
7 to 12 months-105118223
2 to 5 years-5067601,266
19,0461,00599221,043
Trade and other payables above exclude any liabilities for tax (including payroll taxes), statutory liabilities and
contract liabilities.

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40
5.7 Reconciliation of profit for the period to net cash inflow from operating activities
Six months ended
Unaudited
Year ended
Audited
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
(Loss) / profit after taxation for the period
Adjustments for:
(1,867)6115,425
Income tax (credit) / expense1-(5,981)
Depreciation, amortisation and impairment1,1911,1252,986
Share based payments47-31
Decrease in Inventory provision(46)(68)(7)
(Decrease) / Increase in loss allowance provision(43)38(67)
Increase / (decrease) in provision for warranty20(116)(110)
Change in fair value of contingent consideration(68)293323
Net foreign exchange differences(127)307(163)
Decrease / (increase) in trade and other receivables2,214(6,131)(9,206)
Increase in contract liabilities2,1819002,597
(Increase) / decrease in inventories(2,057)(1,280)(1,176)
(Decrease) / increase in trade and other payables(1,996)7,4439,295
Net cash (outflow) / inflow from operating activities(550)3,1223,947

5.8 Net Cash
30 Jun 2022
$000s
30 Jun 2021
$000s
31 Dec 2021
$000s
Cash and cash equivalents4,8396,1465,953
Borrowings – repayable within one year(1,029)(1,095)(731)
Borrowings – repayable after one year(1,158)(1,019)(1,266)
Net cash2,6524,0323,956
5.9 Events after reporting date
There are no events after reporting date requiring disclosure.

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41
Directory
Directors
Gottfried Pausch, Chairman
John McMahon, Independent Director
John Scott, Independent Director
Keith Oliver, Independent Director
Greg Allen, Director
Executive Team
Greg Balla, CEO
Howard Milliner, CFO & Company Sec
Laura Bocock, VP Product (Acting) & Head of Transformation
Angela Lewis, Chief People Officer
David Burden, Chief Customer Officer
Peter Barnes, Global Quality Leader & IT Director
Marc Tinsel, Executive Vice President Operations & VP
Engineering (Acting)
Danielle Scott, Executive Officer
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
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

Interim report 2022Wellington Drive Technologies Ltd
42
Interim report August 2022
www.wdtl.com
WT9430

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019


Results for announcement to the market
Name of issuer Wellington Drive Technologies Limited
Reporting Period 6 months to 30 June 2022
Previous Reporting Period 6 months to 30 June 2021
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$31,892 +4.4%
Total Revenue $31,892 +4.4%
Net profit/(loss) from
continuing operations
($1,867) n/a
Total net profit/(loss) ($1,867) n/a
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend will be paid
Imputed amount per Quoted
Equity Security
n/a
Record Date n/a
Dividend Payment Date n/a
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.018 $0.005
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
See announcement and attached Interim Report 2022
Authority for this announcement
Name of person

authorised
to make this announcement
Howard Milliner
Contact person for this
announcement
Howard Milliner
Contact phone number 0275870455
Contact email address Howard.milliner@wdtl.com
Date of release through MAP

26/08/2022

Audited financial statements accompany this announcement.