FY2022 Result Update and FY2023 Guidance

FY22 Result Update and FY23 Guidance 21 July 2022

Solution Dynamics (SDL or Company) has previously provided guidance for FY2022 earnings
of around $2.3 million. Better than expected NZ trading in the second half plus order closures
late in June means the Company now forecasts FY2022 net profit after tax of around $2.5
million, subject to any audit adjustments. This will be a record profit result for SDL and an
increase of around 25% on FY2021 earnings.
The Company will report its FY2022 result on 25 August 2022.
Looking forward to FY2023, a number of positive and negative influences are expected to
affect earnings guidance. On the positive side, SDL is seeing strong new business activity in
NZ print and mail house, and assumes underlying growth will occur in several key accounts and
vertical markets internationally. On the negative side, the Company is subject to increasing
cost pressures, not all of which can be passed through to customers. Also, to further support
and accelerate international growth, the Company intends to invest in additional sales &
marketing expense, plus it is likely that further in-market developer, support and devops
personnel will be required in the northern hemisphere. SDL expects that the general global
trend of sizeable postage increases will persist and this will continue the push of certain types
of communications to digital channels. These cost and industry factors, coupled with
macroeconomic headwinds from central bank interest rate increases, provide an offset to the
Company’s expected new business gains.
The net effect of the above influences on FY2023 earnings is forecast to be broadly neutral
with SDL’s initial FY2023 guidance for net profit after tax to be around $2.5 million. The
Company cautions that significant volatility around this guidance is possible and some factors,
such as macroeconomic risks, are outside the Company’s control.

For further information please contact:

John McMahon Patrick Brand
Chair CEO
+64-(0)21-0914 0236 +1-203-550 0865