SDL 2022 Annual Shareholder Meeting

2022 Annual Meeting Address 27 October 2022

Nelson Siva: In memoriam
Before starting on the meeting proper, I’d like to say a few words about SDL’s long-term CEO, Nelson
Siva, who passed away in November 2021. There’s an old adage in business, and it has a high degree
of truth, that “culture trumps strategy”. We were incredibly fortunate with Nelson to have someone
who was extremely good at both. He was the main architect of our successful technology platform
and international expansion strategies. He was also the driver and maintainer of our culture; he
fostered a positive, “can do” approach to interacting with our customers which saw SDL solving,
what in some cases, were extremely complex communications problems. He always had a smile on
his face, but he also demanded, and achieved, performance right across the organisation. Our
deepest condolences to Tracey and all Nelson’s family. He was a friend to many in the company, and
to many of our investors. He’s gone, but definitely not forgotten.

FY2022 Overview
Talking about Nelson is a segue into the biggest change for Solution Dynamics (“SDL” or “Company”)
during FY2022. That was the transition to Patrick Brand as the new CEO. While Pat had worked for
SDL running our international operations for several years, this transition was not without risk as
New Zealand’s border were closed at the time. Pat was unable to come here until around six
months after being appointed. However, the process was smooth and seamless and enormous
thanks to all SDL staff for their efforts during the change of CEO and also over what was a very
challenging year.
The second half of FY2022 saw a refreshed focus on new business activity, especially in New Zealand,
following staff changes and a restructure of the sales team. This began to have a positive effect late
in the financial year, although the benefits will flow progressively over FY2023. New business wins in
New Zealand have continued in early FY2023, and internationally the Company is targeting growth in
several key vertical markets.
International volumes were broadly up, with strong gains in the cybersecurity breach notice sector
partly offset by significant weakness in US mortgage-related communications as interest rates rose
significantly and depressed housing finance activity. Volumes in the UK rose as expected, up around
40% as that economy emerged from COVID constraints. The recent weakness in the British pound,
inflationary cost pressures and the general state of the UK economy are concerning but so far have
had a relatively minor impact.
Across all markets, the headwind from physical communications converting to digital continues. This
is being exacerbated by postal organisations globally introducing significant increases in postage
rates to offset the revenue erosion they are suffering from falling volumes. SDL expects this trend to

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continue, with ongoing sizeable increases in postage rates likely in the markets the Company
operates in, including New Zealand. SDL continues to focus on helping our customers better manage
their postage spend, reducing the reliance on print revenue and capturing more value from
software.
SDL’s COVID monitoring and safety policies have evolved, but are still aimed at ensuring the
Company’s staff remain safe. Although many staff have been infected, COVID has not affected
operations to date. The focus is to bring employees back to work in the office to support SDL’s
culture and improve collaboration, although the extent of back-to-office varies widely by function.
The hidden effect has been from an increase in the length of sales cycles due to the inability to travel
for much of the year, constraining meeting sales prospects face-to-face. Hopefully this issue is
largely over as travel and face-to-face sales meetings have resumed. Additionally, COVID remains a
factor in the shortage of skills across the technology sector, exacerbating staff cost pressures.
Supply chain disruptions, along with a weaker NZ dollar, are affecting the cost (and timely
availability) of paper and envelopes. For the most part these are pass-through costs (sometimes
with a lag) and SDL has some forward orders in place to mitigate the cost pressure.
International expansion in FY2022 mainly focused on fully implementing our solutions to large
enterprise clients and growing these clients with new applications. SDL’s platforms are deeply
integrated into our largest clients’ systems and increasingly essential to their businesses. Customer
demands have required investment in local country support, particularly in the US. This hiring is
being carefully scaled to the business opportunity. In FY2023, the new customer pipeline
internationally is growing in the cyber security breach notice space and SDL recently hired a
dedicated sales resource for the Global Charities market.
SDL closed the year with net cash on hand at $5.0 million, which is after repayment of customer
postage prepayments of around $1.25 million. The Directors intend to maintain a prudent approach
to balance sheet management and are conscious that a period of more difficult economic times may
provide acquisition opportunities, most likely aimed at delivering product or geographic expansion.
The Directors will proceed cautiously, conscious that any transaction must be value adding for
shareholders, with manageable financial and operational risks.

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FY2022 Financial Results
Despite a range of challenges in a disrupted and difficult year, SDL made further earnings and
operational progress, with a record net profit after tax of $2.56 million, up 26%, and record
dividends to shareholders totalling 13 cents per share (fully imputed).

Key result metrics ($figures are ’000) FY22 FY21 Growth Y/Y CAGR (5-yr)
Total Revenue 40,127 35,445 13.2% 15.0%
Digital Print & Outsourced 10,324 10,810 -4.5% -7.1%
Software & Technology 29,803 24,635 21.0% 42.5%

Gross Profit 13,941 13,491 3.3% 12.6%
Gross Margin 34.7% 38.1%
SG&A expenses 9,422 9,277 1.6% 10.8%

EBITDA
(a)
4,519 4,214 7.2% 16.7%
EBITDA Margin 11.3% 11.9%

Net Profit after Tax 2,563 2,034 26.0% 14.4%

Earnings per share (cents) 17.41 13.89 25.3% 13.3%
Dividends per share (cents) 13.00 11.00 18.2% 14.0%

(a) EBITDA (i.e. Earnings before Interest, Taxation, Depreciation, Amortisation and Impairment) is a non-GAAP earnings figure that
equity analysts tend to focus on for comparable company performance analysis. The Company considers that it is a useful
financial indicator because it avoids the distortions caused by the differences in amortisation and impairment policies.


The Company also delivered record revenue of $40.1 million, up 13.2%. This growth in revenue and
earnings was mainly from ongoing expansion of international business, predominantly in the US.
Software & Technology revenue grew 21% overall, but was up around 30% internationally, from a
combination of new customers and expansion of activity amongst existing customers. The New
Zealand business continued to feel pressure from the ongoing structural decline in print volumes
and pricing pressure, but it nevertheless remains sustainably profitable. As previously noted, a
refocus on New Zealand sales activity in the second half of FY2022 has delivered new business wins
and this momentum continues to build in FY2023.
Cost pressures, lower margins from a large New Zealand customer, along with change in revenue
mix (lower FX gains and grant income) partially offset the solid revenue growth and held Gross Profit
to a 3.3% gain on the prior year. SG&A costs were well controlled given inflationary pressures in
some parts of the business, rising 1.6% on the prior year. EBITDA grew 7.2% to $4.52 million.
The “quality” of SDL’s earnings improved in FY2022 versus the prior FY2021 result. FY2021 earnings
benefitted from two one-off items (realised foreign exchange gain and NZ Trade & Enterprise market

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development grant assistance) totalling $1.14 million pre-tax. Neither of these one-off gains
recurred in FY2022.
The long-term trends continue their positive trajectory, and SDL is extremely proud to have
delivered record revenue, profit, and dividends in FY22. Success never runs in a straight line and the
global macroeconomic environment is highly uncertain. Strong macroeconomic headwinds mean
the Company has its work cut out in FY2023, but the Board, CEO and all staff are aligned and focused
on continuing to deliver results.
Strategy
SDL’s strategy is to continue on the path of progressing our transformation from a New Zealand
organisation that does business internationally, into a global business. The 2018 acquisition of
Digital to Print (DTP) in the US was the foundational underpinning for our international growth
strategy. It has become clear that the Company’s differentiating value outside of New Zealand is in
enabling global customer communications on an on-demand basis, which unlocks significant cost
savings while improving client engagement.
To succeed as a relatively small business operating against some big competitors requires careful
selection of the segments and applications where we can win and make money. SDL’s global
technology and know-how enabled key wins with World Vision, Pitney Bowes and a major player in
the cybersecurity breach notice space. Future sales focus is on the global charities and cybersecurity
spaces where we can leveraging existing, large reference accounts, building expertise in global
postage management, and leading with software.
In New Zealand, the mail-house business and software businesses are complementary. Leading with
software and helping clients save money on postage is not just an international strategy but a key
differentiator in the New Zealand market. We are winning new business in New Zealand based on a
strong software capability, backed up by the Company’s traditional strength as a mail house. The
mail house market will continue to decline and consolidate, increasing supplier and business
continuity risks for all. SDL’s software business and strong financial position is uniquely positioned in
the NZ market as a supplier of choice. We are committed to providing our New Zealand customers
with the total omni-channel solution for print and digital communications.
Customer Communications on Demand
Technology is at the heart of what SDL do. This simple picture (see slide 12 of attached
presentation) is what the Company calls the Customer Communications on Demand cloud. It
represents the integration of SDL’s component software solutions and global distributed print
network to achieve the goal of reducing cost while improving client engagement. Customers are
looking for an end-to-end solution that operates seamlessly. We have made substantial progress
and are currently deploying key components of the “cloud” into the New Zealand market.

Case study: World Vision International
World Vision International (WVI) is a case study for a sense for the customer value SDL can provide.
WVI wanted to simplify the complexity of managing sponsor communications in 54 countries. By

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reducing complexity, we were able to make major savings in postage and printing cost. This also
freed up thousands of hours of time that was better spent on their mission.
Over time SDL was able to not only simplify, but substantially improve the quality of sponsor
communications, which leads to better sponsor engagement. The Company now manages
communications to 2.5 million sponsors, connecting them better with over 3 million children.
Moving forward SDL’s solutions will drive more digital engagement that is tightly integrated with the
print. SDL is proud of its strong partnership with World Vision and being able to assist their mission.

Strategy and FY2023 Outlook
While SDL has regained momentum quite strongly in the New Zealand market, that isn’t a strategy
capable of delivering “step change” growth. Having built a software communications platform, the
Company has genuine global opportunities to expand. However, SDL is a small organisation,
especially internationally, and needs to find leverage points, hence the strategy of utilising channel
partners into the small-to-medium sized business markets. The Company is direct selling into a small
number of key verticals such as global charities and cybersecurity breach notices where there is
domain knowledge from servicing existing customers.
Part of SDL’s transition to a global business is shifting some of the resources, especially technology
support, to be closer to customers. The Company must be able to provide real-time, in-market
customer response, and this is seeing the move to a “follow the sun” support model across multiple
time zones.
SDL is well ahead of budget for the first quarter of FY2023, although a sizeable portion of this upside
is one-off or timing related. The New Zealand side of the business is ahead of new business targets,
while North America is lagging. The Company has seen some foreign exchange headwinds and is
aware of postal organisations with significant price hikes planned for postage. Assuming these
various trends broadly continue, and existing customer volumes are as expected, then SDL’s revised
guidance for FY2023 is raised from around $2.5 million, to a range of $2.5 million to $2.8 million.
An additional key risk is that the rapid rise in global interest rates does not yet appear to be
finished. Central banks are urgently trying to get ahead of burgeoning inflation, leading to the real
prospect of synchronised global economic downturn, including a real probability of recession. While
some of the COVID pressures have eased, and it has become easier to meet customers and
prospects, supply chain delays and cost pressures have not yet meaningfully abated.
As in FY2022, the profit in FY2023 is expected to be biased towards a much stronger first half.

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Solution Dynamics Limited
Annual Shareholder Meeting, 27 October 2022
S O L U T I O N
D Y N A M I C S
1

S O L U T I O N
D Y N A M I C S
This presentation has been prepared by Solution Dynamics Limited (SDL) for informational purposes. This disclaimer applies to this document and
the verbal or written comments of any person presenting it. This presentation dated 27 October 2022 should be read in conjunction with, and
subject to, the explanations and views of future outlook on market conditions, earnings and activities given in the 2022 Annual Report (together
with management commentary) published on 25 August 2022.
In parts of this presentation, SDL has presented certain financial information exclusive of the impact of significant items. A number of non-GAAP
financial measures are used in this presentation which are used by management to assess the performance of the business and havebeen derived
from SDL’s financial statements for the 12 months ended 30 June 2022. You should not consider any of these statements in isolation from, or as a
substitute for the information provided in the financial statements for the 12 months ended 30 June 2022.
The information in this presentation has been prepared by SDL with due care and attention, however, neither SDL nor any of its directors,
employees, shareholders, nor any other person gives any representations or warranties (either express or implied) as to the accuracy or
completeness of the information and to the maximum extent permitted by law, no such person shall have any liability whatsoever to any person for
any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any informationsupplied in connection
with it.
This presentation may contain forward-looking statements, that is statements related to future, not past, events or other matters. Forward-looking
statements may include statements regarding our intent, belief or current expectations in connection with our future operating or financial
performance, or market conditions. Such forward-looking statements are based on current expectations, estimates and assumptionsand are subject
to a number of risks and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances.
There is no assurance that results contemplated in any of these projections and forward looking statements will be realised. Actual results may
differ materially from those projected. Except as required by law, or the NZX Listing Rules, no person is under any obligation to update this
presentation at any time after its release or to provide further information about SDL.
The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a recommendation.
I m p o r t a n t I n f o r m a t i o n a n d D i s c l a i m e r
2

S O L U T I O N
D Y N A M I C S
•Meeting open: Voting and Questions procedure
•Nelson Siva: in memoriam
•FY2022 overview
•FY2022 key result metrics and long term trends
•Business commentary and key trends
•Strategy and FY2023 Outlook
•Formal business of the meeting, including resolutions:
•to fix Auditor’s remuneration
•to re-elect Elmar Toime
•to re-elect Lee Eglinton
•to increase Directors’ fees
•General business and Questions
A g e n d a
3

S O L U T I O N
D Y N A M I C S
O n l i n e A t t e n d e e s : V o t i n g P r o c e s s
4
•Once the voting has beenopened, the
vote process will be accessible by
clicking on the ‘Vote’ tab.
•To vote simply select your voting
direction from the options shown on
the screen.
•Your vote has been cast when the tick
appears.
•To change your vote, select ‘Change
your Vote’.

S O L U T I O N
D Y N A M I C S
O n l i n e A t t e n d e e s : Q u e s t i o n s P r o c e s s
5
•If you have a question to submit during the
meeting, select the Q&A tab.
•Type your question and press ‘Send’. Your
question will be immediately submitted.
•You can submit a question at any time but it
may not be answered until the appropriate
point in the meeting. Similar questions will
be answered together.
•The Q&A tab may also be used for help.
Please submit your query or problem the
same way as typing a question.

S O L U T I O N
D Y N A M I C S
N e l s o n S i v a : i n m e m o r i a m
6
•SDL’s long-term CEO passed away in late 2021 after illness since early 2020
•Nelson established our platform for growth
•architect of the Company’s successful technology and international expansion
•developed and mentored the management team in place today
•could see the big picture and “sweat the detail”
•more importantly, he established SDL’s culture
•a positive, “can do” attitude with a strong customer service focus
•ability for SDL to tackle complex customer communication problems
•plus a friend to the staff, but a tough and demanding boss when needed
•deeply missed and SDL’s deepest condolences to his wife, Tracey, and family

S O L U T I O N
D Y N A M I C S
F Y 2 0 2 2 O v e r v i e w
7
•Key change in FY2022 was CEO transition from Nelson Siva to Patrick Brand (New York based)
•largely seamless transition, despite COVID travel constraints; big thanks to all staff for support to Pat
•FY2022 continued SDL’s trend of business and earnings momentum
•difficult domestic NZ market, with ongoing pricing and margin pressure...
•... but, strong NZ new business progress in H2 FY2022 is continuing and generating results into FY2023
•international growth continues: strong US expansion, UK recovering, but still partly COVID-affected
•International expansion driven by software platforms:
•driven by Digital Mail Centre (DMC) and Jupiter; focus on platform integration and interoperability
•better integration with internal IT systems of key customers to increase customer “stickiness”
•Cost structure growth slowed; future cost expansion now more new customer/activity driven
•Maintain a conservative balance sheet with a cautious approach to acquisitions
•more difficult macroeconomic environment may throw up acquisition opportunities

S O L U T I O N
D Y N A M I C S
F Y 2 0 2 2 O v e r v i e w : K e y r e s u l t m e t r i c s
8
Financial Metrics ($000)FY22FY21GrowthY/YFive-YrCAGR
TotalRevenue40,12735,44513.2%15.0%
Digital Print & Outsourced10,32410,810-4.5%-7.1%
Software & Technology29,80324,63521.0%42.5%
Gross Profit13,94113,4913.3%12.6%
Gross Margin34.7%38.1%
SG&A expenses9,4229,2771.6%10.8%
EBITDA
(a)
4,5194,2147.2%16.7%
EBITDA Margin11.3%11.9%
Net Profit after Tax2,5632,03426.0%14.4%
Earnings per share (cents)17.4113.8925.3%13.3%
Dividends per share (cents)13.0011.0018.2%14.0%
(a)EBITDA is a non-GAAP earnings figure that equity analysts tend to focus on for comparable company performance analysis. The Company considers that it is a useful financial indicator because it avoids the
distortions caused by the differences in amortisation and impairment policies.

S O L U T I O N
D Y N A M I C S
F Y 2 0 2 2 O v e r v i e w : L o n g t e r m t r e n d s
9
Revenue ($000)
EBITDA ($000) and EBITDA Margin (%)
Net Profit after Tax ($000)Dividends (cents per share, excl Imp Credits)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
Orange bar is Software & Technology
Blue bar is Print/Mailhouse
2.7%
5.3%
7.7%
8.5%
10.4%
10.4%
10.0%
9.2%
12.8%
11.9%
11.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
0
1,000
2,000
3,000
4,000
5,000
6,000
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
-1,000
-500
0
500
1,000
1,500
2,000
2,500
3,000
FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22

S O L U T I O N
D Y N A M I C S
S o f t w a r e & T e c h n o l o g y S t r a t e g y
10
•Leveraged entry into global communications with
DTP acquisition in 2018
•Strategy successfully secured World Vision, Pitney
Bowes and a major player in cybersecurity breach
notices
•Strategy focus refined:
•vertical markets: global charities, cybersecurity
•build expertise in global postage and logistics
•capture more value in software (versus print)
•better “in market” customer support
•leading with software in NZ, to complement print

S O L U T I O N
D Y N A M I C S
R e d u c e c o m m u n i c a t i o n s c o s t ; i m p r o v e e n g a g e m e n t
11
Create
Composer
Enhance
AutoProd
T ransform
Digital Mail Center
S DL
Cus to mer Co mmunications On
-
Demand Clo ud
Manage
Jupiter
Distribute
Global
Network
Ame r ica s Eu r o p e Asia Afr ica
Au str a la sia
Typical Client Benefits
•50%+ Int’l postage savings
•Faster delivery/eco-friendly
•Turnkey global solution
•Client engagement
•Centralized Print
•RegionalPrint
•Local Print
Digitally
Optimized
Print/Postage
PERSONALIZED
LOCALIZED
DIGITALIZED
OPTIMIZED
SECURE
COMPLIANT
•Email, SMS, Web Portal
•QR Codes, PURLs
•PDF, Video
Digital First

S O L U T I O N
D Y N A M I C S
W o r l d V i s i o n : I m p r o v i n g S p o n s o r e n g a g e m e n t
12
•Legacy model of managing, producing and delivering printed
communications to global Sponsors from 54 different locations
worldwide twice per annum
•World Vision has improved global sponsor communications
linking 2.5 million sponsors with 3 million children globally
using SDL’s technology and solutions
•Generated major cost savings and freed up thousands of hours
of time each year while improving client engagement
•Continuing to improve World Vision Sponsor engagement
through digitisation
•Our focus is to help other Global Charities capture similar
savings while improving sponsor engagement

S O L U T I O N
D Y N A M I C S
S t r a t e g y a n d F Y 2 0 2 3 O u t l o o k
13
•Key strategy is ongoing development of SDL’s international software & technology business
•sales model in the US is focused on channels
•direct sales aimed at key vertical markets such as global charities and cybersecurity breach notices
•Customer support moved to a “follow the sun” model (versus NZ-centric support)
•Key risk is global macroeconomic slowdown, but may throw up acquisition opportunities
•Upgrading FY2023 earnings guidance from around $2.5 million to a range of $2.5 to $2.8 million
•first quarter well ahead of budget (much of this is timing and one-offs)
•NZ operations running strongly on new business gains
•but some risks on new business growth expectations in H2, especially in North America
•guidance assumes no unusual business risks and no further COVID disruptions
•global macroeconomic picture remains challenging with rapidly rising interest rates
•FY2023 result is likely biased to a stronger first half (similar to prior year)

S O L U T I O N
D Y N A M I C S
F o r m a l B u s i n e s s o f t h e M e e t i n g : V o t i n g P r o c e d u r e
14
•Voting will be by way of poll and though proxy submission
•votes will be counted by Computershare and the results then released on NZX
•you must have logged on to this meeting using the details you received in the Notice of Meeting to be
eligible to vote
•How to vote reminder
•if you are eligible a ‘Vote’ tab will show on your screen; click on the tab icon to vote
•the resolutions will appear along with voting options
•simply select the voting direction from the options shown on the screen
•your vote has been cast when the tick appears
•you can change your vote any time until the meeting ends by selecting ‘Change your vote’.

S O L U T I O N
D Y N A M I C S
F o r m a l B u s i n e s s o f t h e M e e t i n g : R e s o l u t i o n s
15
•Resolution 1: Auditor remuneration
•That the Board be authorisedto fix the remuneration of the Company’s auditors for the FY2023 year
•Resolution 2: Re-election of Elmar Toime
•To re-elect Elmar Toimeas a director of Solution Dynamics Limited
•Resolution 3: Re-election of Lee Eglinton
•To re-elect Lee Eglinton as a director of Solution Dynamics Limited
•Resolution 4: Directors’ Fees
•To approve an increase in directors’ fees as outlined in the Notice of Meeting and benchmarked by an
independent Ernst & Young report
•Chair fee would increase from $60,000 to $80,000
•Director fee would increase from $40,000 to $50,000
•Fees last reviewed in 2019 and the proposed new rates will be held static for the next three years (subject to
no material change in circumstances)

S O L U T I O N
D Y N A M I C S
G e n e r a l b u s i n e s s a n d Q u e s t i o n s
16
•Any remaining general business or questions from shareholders?
•Meeting formally closes
Thank you for attending