Ann: Introduction to Buddy Technologies for 2021, page-2

Buddy Announces H2 FY2021 Revenue + Earnings Guidance
SUMMARY
● Buddy announces expected results for H2 FY2021
○ Revenue in the range of A$24 million to A$28 million
○ Positive adjusted EBITDA for the half
● Results for H2 FY2021 are anticipated to more than double the (unaudited) revenues
for the prior corresponding period (H2 FY2020 - A$10.8 million)
● The revenue and EBITDA guidance for H2 FY2021 are derived from manufacturing
orders placed, contracted and paid for (in part or in full) and do not include any
expected orders not yet placed.
9 February 2021 - Adelaide, Australia
Buddy Technologies Limited (“Company”) (ASX:BUD), a leader in IoT and cloud-based solutions
for making spaces smarter, is pleased to announce revenue and earnings before interest,
taxation, depreciation and amortisation (“EBITDA”) guidance for the second half (“H2”) of
financial year 2021 (“FY2021”).
Following the completion of a major refinancing of the Company’s finance facilities and vendor
debt (refer to the ASX announcements dated 21 October 2020 and 6 January 2021), as well as
the placement, acceptance and payment (partial, full or contracted) for a significant volume of
product to be manufactured and sold to customers prior to the end of the financial year ended
30 June 2021, the Company is now in a position to guide the market on revenue and EBITDA
expectations for the June half of CY2021 (H2 FY2021).
The Company expects H2 FY2021 revenue to be in the range A$24 million to A$28 million and
expects positive H2 FY2021 adjusted EBITDA. This guidance assumes:
• Product margins similar to H1 FY2021
• Cash-based operating expenses (selling, R&D and administrative costs) similar to H1
FY2021
• AUD-USD exchange rate of 0.7500
• Only placed and accepted manufacturing purchase orders and expected delivery
dates have been included in this guidance (ie: does not forecast future orders yet to
be placed).
A range has been provided in respect to the revenue guidance on account of a proportion of
orders for inventory being due for delivery to the Company in proximity to the end of the
financial year and that may – within the ordinary course of business – become accounts
receivable in late FY2021 or early FY2022.
The Company is not yet in a position to provide specific EBITDA guidance at this point, given
the transitional nature of this half-year in respect to transitioning from a single manufacturer
supplying the Company’s global product needs, to at least two (and likely more)
manufacturers, and the anticipated significant impact that additional manufacturers have on
improving margins across the business. The Company will seek to provide specific EBITDA
guidance as soon as possible.
“With our recent progress in restructuring our finance facilities and debt, achieving cost downs
across our product range and the elimination of all restrictions on our ability to manufacture
product as and when necessary, we are thrilled to be in a position to provide financial guidance
to the market for the first time in our Company’s history”, said David McLauchlan, CEO of
Buddy Technologies Limited. “We have more product currently being manufactured ready for
sale than at any time prior, and if achieved, these results would more than double our yearago results for the prior corresponding period. With these two quarters historically being our
quieter period of the year, it would demonstrate the remarkable market opportunity before
this Company as the world shifts to smarter spaces, and smarter light”.