Interim Report for the Period Ended 31 December 2016

Simplifying Business
For the six months ended 31 December 2016
Interim Report

HIGHLIGHTS FOR
SIX MONTHS TO
31 DECEMBER 2016
Net profit after tax lifts 20% to
$0.704 million
Software & technology
revenues grew 19% to

$2.4 million
EBITDA increased 16% to
$1.08 million
Cash flow from operations
increased by $0.260 million
to $0.954 million
Interim dividend of 3.5 cents per
share (up 0.5 cents)
Growth in DéjarMail
continues to accelerate
FY2017 net profit growth of
around 25% expected
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CONTENTS
Highlights for Six Months to 31 December 2016 . . . . . . . . . . . . . . .2
Chairman’s & Chief Executive Officer’s Report . . . . . . . . . . . . . . . .4
Condensed Consolidated Financial Statements
> Consolidated Statement of Income (Unaudited) . . . . . . . . . . . . . . . .10
> Consolidated Statement of Comprehensive Income (Unaudited) . . .11
> Consolidated Statement of Movements in Equity (Unaudited) . . . . .12
> Consolidated Statement of Financial Position (Unaudited) . . . . . . . .13
> Consolidated Cash Flow Statement (Unaudited) . . . . . . . . . . . . . . .14
> Notes to the Condensed Financial Statements (Unaudited) . . . . . . . .16
Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

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Result Overview
Solution Dynamics Limited (“SDL” or “Company”) produced an unaudited net profit after
tax of $0 .704 million for the half year . This represents 19 .9% year-on-year growth on an
after-tax basis and was modestly ahead of the Company’s budget for the period . The
underlying growth was mainly generated from Software & Technology gains and contained
no unusual items or material one-off software licensing revenue . Digital Print and Document
Handling revenues also showed pleasing growth . The Directors have declared an interim
dividend of 3 .5 cents per share, fully imputed, representing a payout ratio of 70% .
Operational Commentary
Operating revenue grew 31 .3% to $10 .19 million, however, much of this was from gains in
low margin postage revenue and subcontracted printing in the UK where SDL earns low
margins . The consequence of this changing revenue mix was a decline in the Company’s
gross margin percentage (although dollar gross margin continued to grow, increasing
14 .6% to $3 .839 million) .
Software & Technology revenues increased 18 .9% to $2 .42 million as the Company’s UK
revenues continue to build, although the overall growth rate was moderately constrained
by a small decline in development revenues versus the prior year and a reduced
requirement for Déjar archival services by one major customer which now stores its own
PDF documents (a trend we expect to see more broadly going forward) .
Revenue rose 10% year-on-year to $3 .40 million in the traditional digital print and
document handling services market, a market which otherwise remains in overall decline .
Growth is coming from a range of industry sectors including financial services, debt
collection, retail, freight and distribution, and charities . SDL’s web based, hybrid mail
software offering (DéjarMail) has been instrumental in the capture of most of the new
opportunities within our existing customers and securing a broadening range of new
customers . Achieiving overall digital print revenue growth was a positive result given the
company saw a major customer (the same one referred to above with reduced Déjar
requirements) also reducing the number of pages in its mailings (the number of mailings
remained the same but each mailing contained fewer pages) . Growth for SDL is expected
to continue to come from both new business wins and incremental business from existing
clients, offset by the ongoing industry trend of migrating volumes to electronic distribution .
However the electronic delivery of documents revenues grew in excess of 50% year on
year and incoming mail processing (i .e . scanning services) revenues grew in excess of
70% year on year .
High asset utilisation of SDL’s print imaging and document handling equipment coupled
with ongoing cost efficiency gains saw modest improvement in imaging gross margin . The
CHAIRMAN’S & CHIEF EXECUTIVE
OFFICER’S REPORT

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CHAIRMAN’S & CHIEF EXECUTIVE
OFFICER’S REPORT
first customer under the Fuji Xerox DMS agreement commenced trial printing late in
the first half and is expected to progressively move to full production volumes from
early in the second half of FY2017 .
The Company is seeing increasing interest in its software technology in the UK,
particularly DéjarMail . In addition to the reseller that is bundling it into its own
software for dental practices in the UK, mail resellers are also attracted to DéjarMail
as a means of capturing desktop mail volumes . The company has now signed up
two large mail resellers and is in discussions with other mail service providers in the
UK and Europe . The dental software provider is also working with SDL to bundle
Bremy (marketing communications solution) into its offering as a tool to allow dental
practices to more easily automate their marketing and run promotional campaigns .
Financial Performance
Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by
$147,000 (+15 . 8%) to $1 .08 million on sales volumes that rose 31 .3% .
Summary Financial Performance
Yr-on-Yr Yr-on-Yr
(all figures $000)
1H FY17 1H FY16 $ Change % Change
Total Revenue 10,187 7,760 2,427 31.3%
Cost of Goods Sold 6,348 4,411 1,937 43 .9%
Gross Margin 3,839 3,349 490 14.6%
Gross Margin (%) 37 .7% 43 .2%
Selling, General & Admin Costs 2,761 2,418 343 14 .2%
EBITDA 1,078 931 147 15.8%
EBITDA Margin (%) 10.6% 12.0%
Depreciation 107 128 -21 -16 .4%
Amortisation 32 5 27 540 .0%
EBIT 939 798 141 17.7%
Net Interest 2 -6 8 -133 .3%
Net Profit before Tax 937 804 133 16.5%
Taxation 233 217 16 7 .4%
Net Profit after Tax 704 587 117 19.9%

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CHAIRMAN’S & CHIEF EXECUTIVE OFFICER’S REPORT CONTINUED
The EBITDA result gain is partly the benefit of higher gross margin in both Digital
Print and Software & Technology . Underlying Selling, General & Admin (SG&A)
costs remain well managed; the SG&A increase is partly accruing for higher staff
incentive payments as a result of improved operating results, partly from higher
costs in relation to new business initiatives and partly from increasing resources
dedicated to support and revenue growth in the UK market . The UK market has
significant opportunity for SDL and the Company has invested in supporting
channels and new customers as well as adding additional direct sales resource .
SDL’s tax rate in 1H FY2017 was 24 .8% versus 27 .0% in the prior period . This
lower tax rate partly represents an adjustment for FY2016 taxation but is mainly the
effect of the Company working through the balance of its UK tax losses .
Revenue Analysis
Yr-on-Yr Yr-on-Yr
(all figures $000)
1H FY17 1H FY16 $ Change % Change
Software & Technology 2,424 2,038 386 18 .9%
Digital Print & Document Handling 3,398 3,088 310 10 .0%
Outsourced Services 4,365 2,634 1,731 65 .7%
Total Revenue 10,187 7,760 2,427 31.3%
The 18 .9% growth rate for Software & Technology revenue streams in the first half
was on target and our ongoing sales efforts in the UK market are likely to ensure
Software & Technology has a number of years of solid revenue growth ahead .
Several significant new opportunities have been identified, mainly for the DéjarMail
solution in the UK, Poland, Sweden and Ireland . However, the Company is overly
reliant on direct sales efforts and a small number of key customers in the UK; SDL’s
small size and geographic distance from what is presently our most important
growth market presents ongoing difficulties . The Board is presently addressing this
by increasing staff numbers in the UK and would also particularly like to commend
SDL's New Zealand-based staff for their additional efforts in servicing an increasing
number of out-of-time-zone clients .
SDL is seeing strong market share gains in terms of volume of lodged mail with NZ
Post and we expect this trend to continue . New digital print business wins should
begin to generate modest revenue growth during the second half although this is
partly dependent on the timing of when the print work handover occurs .

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CHAIRMAN’S & CHIEF EXECUTIVE OFFICER’S REPORT CONTINUED
Balance Sheet, Liquidity and Debt
SDL closed the half year with net cash on hand of $1 .858 million . A bank overdraft
facility of $0 .2 million remains in placed but is presently unused . The Company’s
balance sheet remains very strong with half year net cash on hand (i .e .cash less
interest bearing debt) of $1 .858 million . Moderate capital expenditure was incurred
in the half on upgrading some of SDL’s internal IT systems, but in general, capital
expenditure requirements appear modest in the near term .
Selected Balance Sheet and Cashflow Figures
Yr-on-Yr Yr-on-Yr
(all figures $000)
1H FY17 1H FY16 $ Change % Change
Net Cash on Hand (net of debt) 1,858 1,350 508 37 .6%
Non-current Assets 2,105 1,993 112 5 .6%
Net Other Liabilities -570 -412 -158 38 .3%
Net Assets 3,393 2,931 462 15.8%
Cashflow from Trading 893 743 150 20 .2%
Movement in Working Capital 61 -49 110 -224 .5%
Cash Inflow from Operations 954 694 260 37.5%
Book value (net assets) has increased by 15 .8% to $3 .393 million . Working capital
continues to be well managed . SDL made capital expenditure additions during
the half of $190,000, the majority of which, as noted above, was for IT system
upgrades .
In reviewing the above cash flow and working capital figures, a degree of
seasonality should be noted . Historically, sales and earnings are higher in 1H
compared to 2H and accordingly the movement in working capital is negative in
1H, and positive in 2H . With SDL’s software revenues increasing, the extent of this
seasonality is beginning to reduce .
We reiterate the Company’s cautious approach to acquisitions and strong
preference for organic growth . The directors are conscious of the risks involved in
acquisitions . In addition to being careful not to overpay, acquisitions would typically
either need to be “bolt ons” where removal of duplicated costs means the effective
acquisition multiple is very low, or product extensions where the acquisition fills a
gap in SDL’s software portfolio plus SDL has the opportunity to sell its software into
the acquired company’s customer base .

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In early 2014 SDL commenced an Employee Share Option Plan (“ESOP”) . That ESOP
has issued options over 580,000 shares and 500,000 of these options mature in
March 2017 (the remaining 80,000 mature in March 2018) . The holders of the 500,000
options then have 18 months to exercise and convert them into shares should they
elect to do so .
Dividend
SDL is declaring an interim dividend of 3 .5 cents per share, an increase of 0 .5 cents
per share or 16 .7% on the prior year .
Earnings and Dividend per Share
Yr-on-Yr Yr-on-Yr

1H FY17 1H FY16 Change % Change
Earnings per share (cents) 5 .01 4 .18 0 .83 19 .9%
Dividend per share (cents) 3 .5 3 .0 0 .5 16 .7%
Dividend proportion Imputed 100 .0% 100 .0% n .a . n .a .
Payout ratio 69 .9% 71 .9% n .a . n .a .
The dividend is fully imputed and the amount represents a payout ratio of 70% of
earnings per share . An arrangement with NZ Trade and Enterprise in relation to
helping fund UK market development requires the Company to cap the dividend
payout ratio at less than 75% for the duration of the agreement .
CHAIRMAN’S & CHIEF EXECUTIVE OFFICER’S REPORT CONTINUED

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CHAIRMAN’S & CHIEF EXECUTIVE OFFICER’S REPORT CONTINUED
FY 2017 Outlook
The interim result was very slightly ahead of budget and in line with SDL’s earnings
outlook issued on 20 December 2016, which also noted a number of factors
affecting growth . The Company reiterates its forecast of around 25% growth in
earnings for the full financial year, albeit with some contingency that the timing and
ramp up rate of several new customers proceeds as expected during 2H FY2017 .
Recent software wins in the UK and a new print client in Australia, coupled with
the ongoing rollout of SDL’s software technology by existing and recently won
UK clients, should ensure that, subject to the usual risk caveats, earnings growth
continues in FY2018 .
John McMahon Nelson Siva
Chairman Director & Chief Executive Officer
+61-410-411 806 +64-21-415027

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CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
(NZ$ in thousands, except per share amounts)
Operating revenue 10,110 7,710 16,185
Grant income 41 18 76
Property rental 36 32 61
Total income 10,187 7,760 16,322
Operating expenses:
Employee costs 2,547 2,275 4,539
Rental and operating lease expenses 341 448 739
Research & development 140 153 330
Directors fees & salaries 303 291 605
Print & other outsource expenses 3,548 2,369 4,112
Other operating expenses 2,230 1,293 4,302
Total Operating Expenses 9,109 6,829 14,627
Earnings before interest, tax, depreciation
& amortisation (EBITDA) 1,078 931 1,695
Depreciation 107 128 252
Amortisation of intangible assets (software) 32 5 14
Net Interest (income)/expense 2 (6) (10)
Operating profit before income tax 937 804 1,439
Income tax 233 217 423
Net operating profit after income tax 704 587 1,016

Cents Cents Cents
Basic earnings per share 5 .0 4 .2 7 .2
Diluted earnings per share 4 .8 4 .0 6 .9
6 MONTHS
ENDED
31 DEC
2016
6 MONTHS
ENDED
31 DEC
2015
AUDITED
YEAR ENDED
30 JUN
2016

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CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
(NZ$ in thousands, except per share amounts)
Net operating profit after income tax 704 587 1,016
Exchange differences on translation of
foreign operations 7 8 30
Total comprehensive income for the period,
net of tax 7 8 30
Total comprehensive income for the year 711 595 1,046
6 MONTHS
ENDED
31 DEC
2016
6 MONTHS
ENDED
31 DEC
2015
AUDITED
YEAR ENDED
30 JUN
2016

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(NZ$ in thousands)
CONSOLIDATED STATEMENT OF
MOVEMENTS IN EQUITY (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Balance 1 July 2015 5,169 39 (30) (2,649) 2,529
Accrual of shares - 18 - - 18
Dividend - - - (211) (211)
Transactions with owners - 18 - (211) (193)
Profit for the period after tax - - - 587 587
Other comprehensive income - - 8 - 8
Balance 31 December 2015 5,169 57 (22) (2,273) 2,931

Accrual of shares - 20 - - 20
Dividend - - - (422) (422)
Transactions with owners - 20 - (422) (402)
Profit for the period after tax - - - 429 429
Other comprehensive income - - 22 - 22
Balance 30 June 2016 (Audited) 5,169 77 - (2,266) 2,980

Accrual of shares - 18 - 18
Dividend - - - (316) (316)
Transactions with owners - 18 - (316) (298)
Profit for the period after tax - - 704 704
Other comprehensive income - - 7 - 7
Balance 31 December 2016 5,169 95 7 (1,878) 3,393
SHARE
CAPITAL
EMPLOYEE

SHARE
PLAN
CURRENCY

TRANSLATION
RESERVE
ACCUM-

ULATED
LOSSES
TOTAL
EQUITY

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CONSOLIDATED STATEMENT OF
FINANCIAL POSITION (UNAUDITED)
AS AT 31 DECEMBER 2016
Current Assets
Cash and bank balances 1,858 1,370 1,422
Trade & other receivables 1,841 1,483 2,071
Inventories and work in progress 149 124 109
Prepayments 120 101 76
Total Current Assets 3,968 3,078 3,678
Current Liabilities
Trade creditors 1,398 924 1,081
Other current liabilities 539 578 931
Other non-financial liabilities 312 277 357
Employee benefit Liabilities 431 341 384
Borrowings - 20 10
Total Current Liabilities 2,680 2,140 2,763
Working Capital 1,288 938 915
Non-Current Assets
Deferred tax asset 76 68 85
Capital works in progress 152 246 62
Property, plant & equipment 681 727 702
Intangible assets 258 14 278
Goodwill 938 938 938
Total Non-Current Assets 2,105 1,993 2,065
Net Assets 3,393 2,931 2,980
Equity
Share capital 5,169 5,169 5,169
Employee share option plan 95 57 77
Foreign currency translation reserve 7 (22) -
Retained (deficit) earnings (1,878) (2,273) (2,266)
Total Equity 3,393 2,931 2,980
For and on behalf of the Board who approved these financial statements for issue .
John McMahon – Director (Chairman) Nelson Siva – Director
Date: 16 February 2017
AS AT
31 DEC
2016
AS AT
31 DEC
2015
AUDITED
AS AT
30 JUN
2016
(NZ$ in thousands)

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6 MONTHS
TO 31 DEC
2015
AUDITED
YEAR TO
30 JUN
2016
CONSOLIDATED CASH FLOW STATEMENT
(UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Cash Flow from Operating Activities
Cash was provided from:
Cash receipts from customers 11,526 8,893 18,283
Other income 41 18 76
11,567 8,911 18,359
Cash was applied to:
Payments to suppliers 6,783 5,065 10,444
Payments to employees 3,192 2,706 5,605
GST paid to IRD 638 446 948
10,613 8,217 16,997
Net Cash Inflow from Operating Activities 954 694 1,362
Cash Flow from Investing Activities
Cash was applied to:
Purchase of property, plant & equipment & software 178 482 390
Purchase of software 12 - 280
190 482 670
Net Cash (Outflow) from Investing Activities (190) (482) (670)
Cash Flow from Financing Activities
Cash was provided from:
Interest received - 9 15
- 9 15
Cash was applied to:
Dividend 316 211 633
Interest paid 2 3 5
Repayments for term loan & finance lease
liabilities secured on equipment 10 10 20
328 224 658
Net Cash (Outflow) from Financing Activities (328) (215) (643)
Net change in cash and cash equivalents 436 (3) 49
Add cash & cash equivalents held
at beginning of year 1,422 1,373 1,373
Finance Facility and Cash Balance at End of Year 1,858 1,370 1,422
(NZ$ in thousands)
6 MONTHS
TO 31 DEC
2016

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6 MONTHS
TO 31 DEC
2015
AUDITED
YEAR TO
30 JUN
2016
CONSOLIDATED CASH FLOW STATEMENT
CONTINUED (UNAUDITED)
FOR THE SIX MONTHS ENDED 31 DECEMBER 2016
Reconciliation of net deficit after income tax
for the year with net cash inflow/ (outflow)
from operating activities
Net (deficit)/surplus after income tax 704 587 1,016
Interest expense (reclassified as financing activity) 2 3 5
Interest income (reclassified as financing activity) - (9) (15)
Add non-cash items:
Depreciation & amortisation of assets 139 133 266
(Gain) / Loss on foreign exchange 14 6 68
Other non-cash items 34 23 54
Cash Flow from Trading 893 743 1,394
Add movements in Working Capital 61 (49) (32)
Net Cash Inflow from Operating Activities 954 694 1,362
(NZ$ in thousands)
6 MONTHS
TO 31 DEC
2016

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NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
For the six months ended 31 December 2016
1. GENERAL INFORMATION AND BASIS OF PREPARATION
The condensed interim consolidated financial statements (the interim financial statements)
are for the six months ended 31 December 2016 and are presented in NZ$, which is the
functional currency of the parent company . They have been prepared in accordance with
New Zealand generally accepted accounting practice and comply with New Zealand
Equivalent to International Accounting Standard 34 (NZIAS34) and IAS 34 “Interim
Financial Reporting” (IAS34) . They do not include all of the information required in annual
financial statements in accordance with IFRS’s, and should be read in conjunction with the
consolidated financial statements for the year ended 30 June 2016 .
Solution Dynamics Limited is the Group’s ultimate parent company . It is a limited liability
public company registered under the Companies Act 1993 and is listed with the New
Zealand Stock Exchange on the NZAX . The Company is an FMC Reporting Entity under
the Financial Markets Conduct Act 2013 . The address of its registered office and principal
place of business is 18 Canaveral Drive, Auckland, New Zealand .
The Group comprises Solution Dynamics Limited and its wholly owned subsidiaries
Solution Dynamics (International) Limited, based in the United Kingdom and Déjar
International Limited . Déjar International Limited is non-trading .
The interim financial statements for the six months ended 31 December 2016 and the
related comparative interim period, are unaudited . Due to seasonal variability financial
information from the audited financial statements for the immediate preceding financial
year ending 30 June 2016 have also been included .
The unaudited interim financial statements for the Group for the six months ended
31 December 2016 were authorised for issue in accordance with a resolution of
Directors on 16 February 2017 .
2. SIGNIFICANT ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with the
accounting policies adopted in the Group’s most recent annual financial statements for
the year ended 30 June 2016 .
3. ESTIMATES
When preparing the interim financial statements, management undertakes a number of
judgements, estimates and assumptions about recognition and measurement of assets,
liabilities, income and expenses . The actual results may differ from the judgements,
estimates and assumptions made by management, and will seldom equal the estimated
results .

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NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
For the six months ended 31 December 2016
The judgements, estimates and assumptions applied in the interim financial
statements, including the key sources of estimation uncertainty were the same as
those applied in the Group’s last annual financial statements for the year ended
30 June 2016 . The only exception is the estimate of the provision for income taxes
which is determined in the interim financial statements using the estimated average
annual effective income tax rate applied to the pre-tax income of the interim period .
4. SEGMENT INFORMATION
The Group supplies customer communication solutions . These include a range of
integrated document management products and services separated into three streams;
software & technology services, digital printing & document handling services and
outsourced services . Specific elements of these streams are as follows:
• Software & Technology, Solution Dynamics owns the intellectual property in four
products;
»Déjar, an online digital archival and retrieval system sold stand-alone under
licence agreements and also as a hosted service in New Zealand and
Internationally .
»Bremy, Digital asset management, workflow and multichannel publishing
software sold as a licenced product and also as a hosted service in New
Zealand, Australia and the UK .
»DéjarMail, 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 management and
substantially 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 followed by the lodgement and
distribution of those documents using a variety of machine and other processes .

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NOTES TO THE CONDENSED INTERIM FINANCIAL
STATEMENTS CONTINUED
(UNAUDITED)
For the six months ended 31 December 2016
4. SEGMENT INFORMATION (CONTINUED)
• Outsourced Services, not all components of Solution Dynamics’ solutions
are produced internally . External elements such as post, freight, paper and
envelopes are sourced from external suppliers and included in this service
stream . Solution Dynamics has long term arrangements with a number of
key suppliers such as NZ Post for the provision of these services .
Selling, general and administration costs are not allocated to the revenue
streams in the Group reporting and hence there are no segment profit or loss
amounts reported to management .
There are no reconciling items in this note due to the management information
provided to the Chief Operating Decision Maker being compiled using the
same standards and accounting policies as those used to prepare the financial
statements .

6 months to 6 months to Year to
(NZ$ in thousands) December 2016 December 2015 June 2016
Software & Technology 2,424 24% 2,038 26% 4,448 27%
Digital Printing & Document
Handling Services 3,398 33% 3,088 40% 6,120 38%
Outsourced services 4,365 43% 2,634 34% 5,754 35%
Total income 10,187 100% 7,760 100% 16,322 100%
Less cost of sales 6,348 63% 4,411 57% 9,239 57%
Gross margin 3,839 37% 3,349 43% 7,083 43%
Selling, general &
administration 2,761 27% 2,418 31% 5,388 33%
Earnings before interest,
tax, depreciation &
amortisation 1,078 10% 931 12% 1,695 10%
Depreciation 107 1% 128 2% 252 1%
Amortisation 32 0% 5 0% 14 0%
Interest 2 0% (6) 0% (10) 0%
Income tax 233 2% 217 3% 423 3%
Operating Profit
after income tax 704 7% 587 7% 1,016 6%

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NOTES TO THE CONDENSED INTERIM FINANCIAL
STATEMENTS CONTINUED
(UNAUDITED)
For the six months ended 31 December 2016
Segment Assets
Assets are not segmented between service streams
Information about Major Customers
Included in revenues for Solution Dynamics of $10 .187 million (2015: $7 .760 million)
are services revenues of $0 .981 million (2015: $0 .884 million) which arose from
sales to the Company’s largest customer .
Geographical Information
The Group has customers in New Zealand, Australia and Europe .
Revenue from external customers Non-current assets
6 months 6 months Year to As at As at As at
to 31 Dec to 31 Dec 30 June 31 Dec 31 Dec 30 June
(NZ$ in thousands) 2016 2015 2016 2016 2015 2016
New Zealand 8,747 7,300 14,427 2,105 1,993 2,065
Australia 183 254 467 - - -
Europe 1,257 206 1,428 - - -
Total 10,187 7,760 16,322 2,105 1,993 2,065
5. FINANCE FACILITY
As at As at As at
31 Dec 31 Dec 30 Jun
(NZ$ in thousands) 2016 2015 2016
Cash on hand 1,858 1,370 1,422
Total Facility 1,858 1,370 1,422
Solution Dynamics has a finance facility in place with the ANZ Bank . This facility
is to support the operational requirements of the Group and includes an overdraft
facility of $200,000 that is unused at the reporting date . The Group now holds a
net cash position with no bank debt (2015: $Nil) . The facilities are secured by a first
ranking debenture over the assets of the Group .
The ANZ facility, as is normal banking practice, imposes a number of covenants,
including an interest cover covenant (calculated on a rolling 12-month period) and
a receivables cover covenant (calculated as a ratio of receivables + stock divided
by bank debt) . The Company has been in compliance with all financial covenants
though the period .

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6. SHARE CAPITAL & SHARE-BASED PAYMENTS
Solution Dynamics Limited has 14,059,810 ordinary shares (2015: 14,059,810
ordinary shares) each fully paid .
The Group operates equity-settled, share-based compensation plans, under
which employees provide services in exchange for non-transferable options .
The value of the employee services rendered for the grant of non-transferable
options is recognised as an expense over the vesting period, and the amount
is determined by reference to the fair value of the options granted .
Number of Shares As at As at As at
31 Dec 31 Dec 30 Jun
(
Shares in $000’s) 2016 2015 2016
Shares Issued and Fully Paid:
- Beginning of the Period 14,060 14,060 14,060
- Share Issue - - -
Shares Issued and Fully Paid 14,060 14,060 14,060
Employee Share Option Plan:
- Beginning of the Period 580 580 580
- Options issued - - -
- Options forfeited - - -
Shares Authorised for Share-based Payments 580 580 580
Total Shares Authorised at the end of the Period 14,640 14,640 14,640
The 580,000 options issued (2015: 580,000) were at a weighted average
exercise price of $0 .42 (2015: $0 .42) .
NOTES TO THE CONDENSED INTERIM FINANCIAL
STATEMENTS CONTINUED
(UNAUDITED)
For the six months ended 31 December 2016

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7. RELATED PARTIES
Transactions between related parties include payments to shareholders,
directors and their companies and senior executives, also being shareholders .
Related party transactions from 1 July 2016 to 31 December 2016 were as
follows:
• Key management were paid $551,975 (as employees of Solution
Dynamics Limited) during the period (2015: $498,979) and were owed
$113,060, including annual leave, at 31 December 2016 (2015: $47,365) .
• Salaries paid to directors are disclosed in the Consolidated Statement of
Comprehensive Income .
8. EVENTS AFTER THE BALANCE DATE
At the board meeting of 16 February 2017, the directors resolved to pay an
interim dividend of 3 .5 cents per share fully imputed (2015: 3 .0 cents per
share) . There were no other significant events after balance date .
9. COMMITMENTS & CONTINGENCIES
At 31 December 2016 there were no commitments and contingencies
(2015: $Nil) .
NOTES TO THE CONDENSED INTERIM FINANCIAL
STATEMENTS CONTINUED
(UNAUDITED)
For the six months ended 31 December 2016

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COMPANY DIRECTORY
Directors
John McMahon - Chairman
Michael Jean Smith
(retired 3 Nov 2016)
Julian Beavis
Elmar Toime
Indrajit Nelson Sivasubramaniam
(Nelson Siva)
– Chief Executive Officer
Auditors
Grant Thornton New Zealand Audit
Partnership
Grant Thornton House
152 Fanshawe Street
AUCKLAND
Bankers
ANZ National Bank Limited
9-11 Corinthian Drive
Albany
AUCKLAND 0632
Solicitors
Russell McVeagh
Vero Centre, 48 Shortland Street
AUCKLAND
Share Registry
Computershare Investor Services
Level 2, 159 Hurstmere Rd
Takapuna
AUCKLAND
Private Bag 92119
Auckland Mail Centre
AUCKLAND 1142
Registered Office and address
for service
18 Canaveral Drive
Albany
AUCKLAND
PO Box 301248
Albany
AUCKLAND 0752
Tel +64 9 970 7700
Solution Dynamics
(International) Limited
C/- Liz Butterworth & Associates
7 Clarendon Road
Borehamwood
Herts WD6 1BD
UNITED KINGDOM
Tel +44 (20) 8953-2835
Déjar International Limited
18 Canaveral Drive
Albany
AUCKLAND
PO Box 301248
Albany
AUCKLAND 0752

COMPANY DIRECTORY
Stock Exchange
The Company’s shares trade on the
New Zealand Stock Exchange
Alternative Market (NZAX) .
NZAX Trading Code: SDL
SOLUTION DYNAMICS
ON THE WEB
www.solutiondynamics.com
www.dejar.com
www.bremy.com