Announcement

MKTUPDTE: WDT: Wellington Drive Technologies withdraws FY2020 guidance 01:35pm 
WDT
27/03/2020 13:35
MKTUPDTE
PRICE SENSITIVE
REL: 1335 HRS Wellington Drive Technologies Limited

MKTUPDTE: WDT: Wellington Drive Technologies withdraws FY2020 guidance

Wellington Drive Technologies (Wellington) today announced that due to the
increasing uncertainty surrounding COVID-19, its duration, the impact of
recent government directives and the business impact of those directives, it
is withdrawing previously disclosed financial guidance for the 2020 financial
year.

The financial guidance for 2020 which we provided on 16 March reflected the
information available to us at the time. Since then, mandatory shutdowns are
impacting Wellington's customers in several US states, a number of Latin
American countries, the United Kingdom and Europe. In some cases the duration
of the shutdowns is uncertain. As a result, Wellington is halting shipments
to customers in these areas, with disruption also expected in customer office
and administrative operations.

Furthermore, on 25 March the New Zealand government issued a four-week level
four lockdown. All of Wellington's Auckland staff have successfully moved to
home office working. Our day-to-day finance and supply chain operations can
be run effectively remotely; however, some product development activities
will be challenging due to access to equipment. Wellington's offshore offices
have also moved to work-from-home arrangements.

The government directed factory closures and remote office working are
expected to adversely impact Wellington's ability to deliver products to its
customers and impact timelines for the launch of planned new products.

The company has already implemented a range of measures to manage through the
impacted period; These include:
o implemented a hiring freeze for the balance of 2020
o border closures have meant the elimination of travel costs
o deferred $2m of capex spend
o suspended internal role changes and promotions
o seeking payment delays with its suppliers to match delayed receipts from
customers
o applying for New Zealand and Australian government COVID-19 financial
grants

Wellington's CEO Greg Allen commented; "We believe these government mandated
closures are necessary measures and we will do our part to support efforts to
contain COVID-19 and ensure the safety of our team members and stakeholders.
We are working on a number of actions to reduce costs and conserve cash and
our supply chain stands ready to deliver for customers once they come out of
their shutdowns. Our team has done exceptional work to date to manage through
this unprecedented
End CA:00350822 For:WDT Type:MKTUPDTE Time:2020-03-27 13:35:56

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