Announcement

MKTUPDTE: WDT: Wellington Drive Technologies withdraws FY2020 guidance 01:35p.m. 
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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