Appendix 1 – Preliminary Report 1H 2017 (unaudited)

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
PRELIMINARY INTERIM YEAR REPORT ANNOUNCEMENT (UNAUDITED)
Preliminary interim year report on consolidated results (including the results for the previous corresponding period) in accordance with Listing Rule 10.4.2.
This report has been prepared in a manner which complies with generally accepted accounting practice and gives a true and fair view of the matters to
The Listed Issuer does not have a formally constituted Audit Committee of the Board of Directors.
[PLEASE REFER TO ATTACHED NOTES WHEN COMPLETING THIS FORM]
1CONSOLIDATED STATEMENT OF FINANCIAL Current*Up/DownPrevious
PERFORMANCEhalf Year%half year
$NZ'000$NZ'000
1.1
(a)Trading Revenue
10,146 31.1%7,742
(b)Other Revenue
41 127.8%18
(c)Total Operating Revenue
10,187 31.3%7,760
1.2
937 16.5%804
(a)Less taxation on operating result
(233) (217)
1.3
704 19.9%587
(a)Extraordinary Items after Tax [detail in Item 3]
7 n/a8
(b)Unrealised net change in value of investment properties
- - -
1.4
711 19.5%595
(a)Net *Surplus (Deficit) attributable to minority interests
- -
1.5
711 19.5%595
2CurrentPrevious
half yearhalf year
$NZ'000$NZ'000
2.1
(a)Interest revenue included in Item 1.1(b)
(b)# Unusual items for separate disclosure (gain/loss) (detail - Item 3)
(c)Equity earnings (gain/loss) (detail - Item 16)
(d)Interest expense included in Item 1.2 (include all forms of interest, etc)2 ( 6)
(e)Leasing and renting expenses341 448
(f)Depreciation107 128
(g)Diminuton in the value of assets (other than depreciation)
- -
(h)Amortisation of goodwill
(i)Amortisation of other intangible assets32 5
(j)Impairment of goodwill
- -
(k)Impairment of other intangible assets
- -
Previous
Currentcorresponding
half Yearhalf Year
2.2$NZ'000$NZ'000
(a)# Interest costs excluded from Item 2.1(d) and capitalised
- -
(b)# Outlays (other than those arising from the acquisition of an existing
- -
business) capitalised in intangibles-
(c)Unrecognised differences between the carrying value and market value
- -
of publicly traded investments
#Items marked in this way need to be shown only there their inclusion as revenue
or exclusion from expenses has had a material effect on reported *surplus (deficit)
(Name of Listed Issuer)
(referred to in this report as the "interim year")
which the report relates and is based on unaudited financial statements.
*Consolidated Statement
NET *SURPLUS (DEFICIT) FOR THE PERIOD
OF THE LISTED ISSUER
Financial Performance
OPERATING REVENUE
OPERATING *SURPLUS (DEFICIT) BEFORE TAXATION
OPERATING *SURPLUS (DEFICIT) AFTER TAX
NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS
Consolidated Statement of
Financial Performance
*Consolidated Statement of
Financial Performance
DETAILS OF SPECIFIC RECEIPTS/OUTLAYS, REVENUES/
EXPENSES FOR REPORTING PERIOD
SUPPLEMENTARY ITEMS
INCLUDED IN CONSOLIDATED STATEMENT OF FINANCIAL
PERFORMANCE
Solution Dynamics Limited
For Half Year Ended 31 December 2016

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
3
OperatingOperating
RevenueSurplus
DETAILS AND COMMENTS$NZ'000$NZ'000
Discontinued Activities:
- -
(Disclose Operating Revenue and Operating Surplus)
- -
TOTAL DISCONTINUED ACTIVITIES
- -
Material Unusual (including Non Recurring) Items (included in 1.2)
- -
Description:
Exchange adjustment on international subsidiary
7 8
- -
TOTAL MATERIAL NON RECURRING ITEMS
Extraordinary Items (Ref. Item 1.3(a))
- -
Description:
TOTAL EXTRAORDINARY ITEMS
7 8

4CurrentPrevious
half yearhalf year
$NZ'000$NZ'000
4.1711 595
(a)*Net Surplus (Deficit) attributable to minority interest
- -
4.2OTHER RECOGNISED REVENUE AND EXPENSES
(a)*Increases (decreases) in revaluation reserves
- -
(b)Current Translation Differences
- -
(c)Minority interest in other recognised revenue and expenses
- -
4.3TOTAL RECOGNISED REVENUES AND EXPENSES711 595
4.4OTHER MOVEMENTS
(a)Contributions by Owners
(b)Distributions to Owners( 316) ( 211)
(c)Other (Employee Share Plan / Currency Translation Reserve)18 18
4.5EQUITY AT BEGINNING OF FULL YEAR2,980 2,529
4.6EQUITY AT END OF FULL YEAR3,393 2,931
5CurrentPrevious
Calculation of basic and fully diluted, EPS in accordance with IAS33: Earnings half yearhalf year
Per Share$NZ'000$NZ'000
(a)Basic EPS0.050$ 0.042$
(b)Diluted EPS0.048$ 0.040$
DISCONTINUED, UNUSUAL (INCLUDING NON RECURRING), AND
In Equity
STATEMENT OF MOVEMENTS IN EQUITY
*NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER
Earnings Per Security
Group - Current
EXTRAORDINARY ITEMS OF THE GROUP
half Year
Statement of Movements
EARNINGS PER SECURITY

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
6
(a)Name of subsidiary or group of subsidiariesn/a
(b)Percentage of ownership acquired-
(c)Contribution to consolidated net *Surplus (Deficit) (Item 1.4)$
(d)Date from which such contribution has been calculated-
-
7
(a)Name of subsidiary or group of subsidiariesn/a
(b)Contribution to consolidated net *Surplus (Deficit) (Item 1.4)$
(c)Date from which such contribution has been calculated
(d)Contribution to consolidated net *Surplus (Deficit) (Item 1.4) for the
previous corresponding full year
(e)Contribution to consolidated net *Surplus (Deficit) (Item 1.4) from sale
of subsidiary$
8
Information on the industry and geographical segments of the Listed Issuer is to be reported for the full year in accordance with the provisions of SSAP:23:
Financial Reporting for Segments. Because of the differing nature and extent of segments among Listed Issuers, no complete proforma is provided,
and the segment information should be completed separately and attached to this report. However, the following shows a suitable list of items for
presentation and indicates which amounts should agree with items included elsewhere in the full year report:
SEGMENTS
$NZ'000%$NZ'000%
* Software & Technology
2,424 24%2,038 26%
* Digital printing & Document Handling
3,398 33%3,088 40%
* Outsourced Services
4,365 43%2,634 34%
Total revenue [consolidated total equal to Item 1.1(c) above]
10,187 100%7,760 100%
−
Less cost of sales
6,348 62%4,411 57%
Gross margin3,839
38%
3,349
43%
−
Selling General & Administrations Overheads2,761
27%
2,418
31%
Earnings before interest, tax, depreciation & amortisation1,078
11%
931
12%
Less:
−
Restructuring
0%0%
−
Depreciation107
1%
128
2%
−
Amortisation32
0%
5
0%
−
Interest2
0%
(6)
0%
−
Tax233
2%
217
3%
Operating surplus (Deficit) after tax (Item 1.3)704
7%
587
8%
6-mths Dec '166-mths Dec '156-mths Dec '166-mths Dec '15
$NZ'000$NZ'000$NZ'000$NZ'000
* New Zealand
8,747 7,300 2,105 1,993
* Australia
183 254
* UK & Europe
1,257 206
−
Total revenue [consolidated total equal to Item 1.1(c) above]
10,187 7,760 2,105 1,993
MATERIAL DISPOSALS OF SUBSIDIARIES (See Note (VII) attached)
REPORTS FOR INDUSTRY AND GEOGRAPHICAL SEGMENTS
6-mths Dec '15
Non-current Assets
MATERIAL ACQUISITIONS OF SUBSIDIARIES (See Note (VII) attached):
Industry
Geographical Information
6-mths Dec '16
Revenue
Solution Dynamics offers clients a range of integrated document management solutions separated into three revenue streams; outsource services, software
& technology servicesand digital printing & document handling services. Specific elements of these service streams are as follows:
Software & Technology, Solution Dynamics owns the intellectual property in three products,;
Dejar, an Online digital archival and retrieval systemsold stand-alone under licence agreements and also as a hosted service in New Zealand and
Internationally.
Bremy, Digital asset management, workflow and multichannel publishing softwaresold as a licenced product and also as a hosted service in New
Zealand, Australia and the UK.
DejarMail, a secure web based application that takes small quantities of documents, normally uneconomic for mail-house processing, then prepares
and consolidates them for bulk postal delivery or email and subsequent archiving. This improves governance and brand managementand reduces
costs.
Composer, “On-Demand” Content creation software.
In addition to owning the intellectual property for the above products, Solution Dynamics provides programming, consulting and design services that help
clients to distribute marketing and essential communications by mail and electronically. The provision of these services is covered under this category.
Digital Printing & Document Handling Services, the printing of client’s information digitally using high speed laser printers and frequently followed by the
lodgement and distribution of those documents using a variety of machine and other processes.
Outsourced Services, not all components of Solution Dynamics’ solutions are produced internally. External elements such as post, freight, paperand
envelopes are sourced from external suppliers and included in this service stream. Solution Dynamics has long term arrangementswith a number of key
suppliers such as NZ Post for the provision of these services.
An overhead structure including sales, marketing and administration departments provides services for all of the above revenue streams.

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
At end ofAs shown inIf half yearly
currentlastas shown in last
9CURRENT ASSETS:
half YearAnnual Report half yearly report
$NZ'000$NZ'000$NZ'000
(a) Trade receivables & other current assets1,841 1,422 1,483
(b) Cash1,858 2,071 1,370
(c) Inventories149 109 124
(d)Prepayments120 76 101
TOTAL CURRENT ASSETS3,968 3,678 3,078
9.1NON-CURRENT ASSETS
(a) Trade receivables
- - -
(b) Investments
- - -
(c) Inventories
- - -
(d) Property, plant and equipment833 764 727
(e)Goodwill938 938 938
(f)Deferred Taxation Assets
76 85 68
(g)Other Intangible Assets258
278
260
(h)Other assets, non current
- - -
9.22,105 2,065 1,993
9.3TOTAL ASSETS6,073 5,743 5,071
9.4CURRENT LIABILITIES
(a)Finance facility
(b) Trade Creditors1,398 1,081 924
(c)Income in advance115 333 113
(d)Borrowings10 20
(e)Other non-financial liabilities312 357 277
(f)Employee benefit liabilities431 384 341
(g)Other liabilities, current424 598 465
TOTAL CURRENT LIABILITIES2,680 2,763 2,140
9.5NON-CURRENT LIABILITIES
(a)Accounts payable, non-current
(b)Secured loans- -
(c) Unsecured loans- - -
(d)Provisions, non-current- - -
(e)Deferred Taxation Liability, non-current- - -
(f)Other liabilities, non-current- - -
9.6- - -
9.7TOTAL LIABILITIES2,680 2,763 2,140
9.8NET ASSETS3,393 2,980 2,931
9.9SHAREHOLDERS' EQUITY
(a) Share capital (optional)5,169 5,169 5,169
(b) Reserves (optional) (i) Currency translation reserve7 (22)
(ii) Other reserves (Employee Share Plan)95 77 57
(c) Retained Surplus (accumulated Deficit) (optional)(1,878) (2,266) (2,273)
9.1O3,393 2,980 2,931
(a)Minority equity interests in subsidiaries
- - -
9.113,393 2,980 2,931
(a)Returns on Assets (%) (EBIT divided by Total Assets)15.46%24.88%15.74%
(b)Return on Equity (%) (Net Income divided by Shareholders'
Equity)22.31%36.89%21.79%
(c) Debt to Equity Ratio (%) (Total Liabilities divided by78.99%92.72%73.01%
Shareholders' Equity)
n/a4,877 4,527 3,873
(Note (VIII) attached has particular relevance for the preparation
TOTAL NON-CURRENT ASSETS
TOTAL NON-CURRENT LIABILITIES
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO MEMBERS
Consolidated Statement of Financial Position
OF THE LISTED ISSUER
TOTAL SHAREHOLDERS' EQUITY
TANGIBLE ASSETS

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
CurrentPrevious
10CASH FLOWS RELATING TO OPERATING ACTIVITIEShalf yearhalf year
$NZ'000$NZ'000
(a) Receipts from customers11,526 8,893
(b) Interest received
(c) Dividends received
- -
(d) Payments to suppliers and employees(10,495) (8,099)
(e) Interest paid
(f) Income taxes paid(118) (118)
(g) Other cash flows relating to operating activities41 18
NET OPERATING FLOWS954 694
(See Note (IX) attached )
11CASH FLOWS RELATING TO INVESTING ACTIVITIES
(a) Cash proceeds from sale of property, plant and equipment
- -
(b) Cash proceeds from sale of equity investments
- -
(c) Loans repaid by other entities
- -
(d) Cash paid for purchases of property, plant and equipment & software(190) (482)
(e) Interest paid - capitalised
- -
(f) Cash paid for purchases of equity investments - Bremy NZ & UK
- -
(g) Loans to other entities
- -
(h) Other cash flows relating to operating activities
- -
NET INVESTING CASH FLOWS(190) (482)
(See Note (IX) attached )
12CASH FLOWS RELATED TO FINANCING ACTIVITIES
(a) Cash proceeds from issue of shares, options, etc & interest income
- 9
(b) Borrowings
- -
(c) Repayment of borrowings(10) (10)
(d) Dividends paid
(316) (211)
(e) Other cash flows relating to financing activities - interest on financing(2) (3)
NET FINANCING CASH FLOWS(328) (215)
(See Note (IX) attached )
13NET INCREASE (DECREASE IN CASH HELD)
(a) Cash at beginning of full year1,422 1,373
(b) Exchange rate adjustments to Item 12.3(a) above
- -
(c) CASH AT END OF PERIOD1,858 1,370
14NON-CASH FINANCING AND INVESTING ACTIVITIES
and liabilities but did not involve cash flows:
`
15
CurrentPrevious
Bank, Petty Cash and NZAX Deposithalf Yearhalf Year
NZ$'000NZ$'000
Cash at the end of the full year as shown in the statement of cash flows is
1,858 1,370
- -
- -
Total = Cash at End of Period (Item 13(c) above)1,858 1,370
Consolidated Statement
For the purposes of the above Statement of cash flows, cash includes:
reconciled to the related items in the financial statements as follows:
Cash on hand and at bank
Deposits at call
of cashflows for half year
(See Note (IX) attached )
Provide details of financing and investing transactions which have had a material effect on group assets and
RECONCILIATION OF CASH
Bank overdraft (ANZ)
Other - NZAX Deposit

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
16
16.1
Equity Earnings
CurrentPrevious
half yearhalf year
$NZ'000$NZ'000
(a)OPERATING *SURPLUS (DEFICIT) BEFORE TAXn/an/a
(b)Less tax
(c)OPERATING *SURPLUS (DEFICIT) AFTER TAX
(i) Extraordinary items
(d)NET *SURPLUS (DEFICIT) AND EXTRAORDINARY ITEMS AFTER TAX
16.2
(a)The group has a material (from group's viewpoint) interest in the following corporations:
Percentage of ordinaryContribution to net
Name*surplus (deficit)
Full Year(Item 1.5)
Equity Accounted CurrentPreviousCurrentPrevious
AssociatesFull Yearhalf Yearhalf Yearhalf Year
NZ$'000NZ$'000
Equity Accounted in current year
n/an/an/an/a
Other Material Interests
Not Equity Accounted in current year
n/an/an/an/a
(b)Investments in AssociatesCurrentPrevious
half Yearhalf Year
$NZ'000$NZ'000
Carrying value of investments in associates beginning of full yearn/an/a
Share of changes in associates' post acquisition surpluses/and reserves:
- Retained surplus
- Reserves
Net goodwill amortisation and impairment adjustments in the period
Less Dividends received in the period
Equity carrying value of investments at the end of full year
Amount of goodwill included in carrying value at end of that full year
shares held at end of
EQUITY ACCOUNTED INVESTMENTS IN ASSOCIATES
Information attributable to the reporting group's share of investments in associates and other material interests
is to be disclosed by way of separate note below (refer FRS-38 Accounting for Investments in Associates).
GROUP SHARE OF RESULTS OF ASSOCIATES
MATERIAL INTERESTS IN CORPORATIONS NOT BEING SUBSIDIARIES

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
17
Number NumberPaid-Up Value
Category of Securities Issued Quoted(If not halfy paid)
PREFERENCE SHARES:
# (Description)n/an/a
Issued during current full year
ORDINARY SHARES:
14,059,8105,169,000$ 14,059,8105,169,000$
Issued during current full year
-$ 00
CONVERTIBLE NOTES
# (Description)n/an/a
Issued during current full year
OPTIONS:
IssuedQuotedExercise PriceExpiry Date
Issued during current full year
--$
--$
DEBENTURES - Totals only:$n/a
UNSECURED NOTES - Totals only:$n/a
OTHER SECURITIES$n/a
18
If no report in any section, state NIL. If insufficient space below, provide details in the form of notes to be attached
(a)Material factors affecting the revenues and expenses of the group for the current full year
Refer NZX release date 16 February 2017
(b)Significant trends or events since end of current full year
Refer NZX release date 16 February 2017
(c)Changes in accounting policies since last Annual Report and/or last Half Yearly to be disclosed
(d)Critical Accounting Policies - Management believes the following to be critical accounting policies. That is they
are both important to the portrayal of the Issuer's financial condition and results, as they require management to
make judgments and estimates about matters that they are inherently uncertain
ISSUED AND QUOTED SECURITIES AT END OF REPORTING PERIOD
# Description includes rate of dividend or interest and any redemption or conversion rights together with the prices and dates thereof.
COMMENTS BY DIRECTORS
to this report.
-Estimated Impairment of Goodwill and Intangible Assets
The test for impairment of goodwill and intangible assets is undertaken on an anual basis at financial year end. No
impairment test has been performed at Interim balance date.
-Useful lives of Property, Plant & Equipment
As described at 2.1 above, the Company reviews the estimated useful lives of property, plant and equipment at the end of
each annual reporting period. In assessing the useful lives of property, plant & equipment the Company makes reference
to tax rates and these are used where they approximate estimates of useful lives. The carrying amount as at 31 December
2016 was $833,000.
-Contingent Consideration in Respect to Business Combinations
Not applicable

Solution Dynamics Limited
Appendix 1 (Rule B1.4.1)
Preliminary Interim 2017 Report
(e)Management's discussion and analysis of financial condition, result and/or operations (optional) - this section
should contain forward looking statements that should outline where these involve risk and uncertainty
Refer NZX release date 16 February 2017
(f)Other comments
Refer NZX release date 16 February 2017
19
(a)Dividend Yield as at balance date (%) (Annual dividend per share divided by price per share
2.21%
(b)Tax Adjusted Dividend Yield as at balance date (%) (Annual net dividend per share divided by price per share)
2.21%
20
(a)
n/a
(b) Date - 28 October 2010n/aTime
n/a
(c) Approximate date of availability of Annual Report
16-Feb-17
(signed by) Authorised Officer of Listed Issuer
*Delete as required
DIVIDEND
ANNUAL MEETING (if full year report)
If this full year report was approved by resolution of the Board of Directors, please indicate date of meeting:
(date)