Wellington Drive announces 40% increase revenue

10th May 2016

For Immediate Release

Wellington Drive announces 40% increase in 1st quarter revenue and an EBITDA profit

First Quarter 2016 Highlights:

• Strong revenue growth with revenue increasing by 40% to NZD$9.2m (or in US Dollar terms 26% to USD$6.2m)

• Continued growth in our EC motor business with volumes increasing 24% year over year

• Several thousand SCS Connect controller units shipped to a global beverage customer under the multi-year agreement that was noted in the Company’s annual report

• New ECR2 motor continues to win new customers

• Continued supply chain cost reduction improving gross margin to 22.8%

• EBIT1 loss for Q1 of $381k impacted by non-cash amortisation charges and foreign currency revaluations of the Mandatory Convertible Preference Shares (MCPS)

• An adjusted EBITDA3 profit of $92k. This unaudited result for Q1 2016 was an improvement on the $231k loss on this basis for the same period last year

First Quarter 2016 Financial Summary:

Trading result:

Regional Revenue Growth:

Note 1 - EBIT is Earnings before Interest and Taxation

Note 2 - Depreciation and amortisation charges increased this year as the Company commenced amortising capitalised development costs for the new ECR2 motor and the SCS Connect controller from 1 January 2016, that being the date development of the products was completed and the products became available for sale.

Note 3 - EBITDA is Earnings before Interest, Taxation, Depreciation, Amortisation and Impairment. Wellington has always reported the EBITDA result because this is the profit performance measure that avoids the distortions caused by differences in amortisation and impairment policies. In the 2016 year we have isolated the effects on EBITDA of the revaluation of MCPS for NZD/USD exchange rate movements which is “non cash” and does not arise from the company’s business activities.

The business is gaining clear momentum, especially with SCS adoption. Further details and a first half and full year outlook will be provided at Wellington’s Annual Shareholders Meeting on 31st May 2016.

ENDS

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