SDL 1H FY2024 Financial Results & Interim Dividend

TRANSFORMING GLOBAL CUSTOMER COMMUNICATIONS www.solutiondynamics.com
INTERIM
REPORT
FOR THE SIX MONTHS
ENDED 31 DECEMBER 2023
Transforming Global
Customer Communications

FY2024 1H Highlights
For the six months ended 31 December 2023
• Net profit after tax grew 0.6% to a record
$2.47 million and EPS of 16.8 cents
• Revenue declined 2.5% (NZ gained,
International declined)
• EBITDA declined 2.7% to $4.00 million
• Cash flow from operations $2.34 million
and net cash at 31 December 2023 was
$8.29 million
• Interim dividend of 7.0 cents per share
(down 3.0 cents)
• SDL’s largest customer conducting an RFP
for its communications requirements
• Earnings outlook uncertain until largest
customer RFP outcome known

Table of Contents
Directors’ & Chief Executive Officer’s Report
Result Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Operational Commentary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Financial Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Balance Sheet, Liquidity and Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Largest Customer RFP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
FY 2024 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Consolidated Statements (unaudited)
Consolidated Statement of Profit or Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Consolidated Statement of Comprehensive Income . . . . . . . . . . . . . . . . . . . .13
Consolidated Statement of Changes In Equity . . . . . . . . . . . . . . . . . . . . . . . . .14
Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . .15
Consolidated Statement of Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Notes to the Condensed Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . .19
Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26

As in prior years, the first half of FY2024 reflects a high
concentration of large international customer jobs, along
with usual seasonal 1H FY2024 strength in the New Zealand
operations. In a difficult global environment, international activity
declined year-on-year largely from SDL moving away from lower
margin accounts that had become increasingly commoditised
and US mortgage market customers continuing to operate with
very low levels of communication volumes. Positively, gross
margin from international customers continued to expand,
helped by an increase in higher margin professional services
revenue. There were one-time unrecoverable costs of around
$0.2 million incurred on a significant project during 1H FY2024.
Encouragingly, NZ print and mail services continues to grow in
what is an extremely difficult market, thanks to a combination
of new accounts, selective price increases and cross-selling
additional services. The overall NZ print and mail house market
remains in structural decline so SDL is pleased to grow market
share in such a challenging market.
Cash flow from operations was $2.34 million (1H FY2023
$3.41million) with cash flow from trading declining 9.3% to
$2.80 million. Several large customer payments from
1H FY2024 billings were received in January.
Directors’ & Chief Executive
Officer’s Report
Result Overview
Solution Dynamics Limited (“SDL” or “Company”) generated
a 0.6% growth in unaudited net profit after tax of $2.47
million for the FY2024 half year (1H FY2023 $2.46 million).
This was a record half-year earnings result and represents
earnings per share of 16.8 cents.
2.5%
REVENUE
2.7%
EBITDA
0.6%
NET PROFIT
4 | Directors’ & Chief Executive Officer’s Report

Operational Commentary
Total revenue declined slightly, down 2.5% to $22.77
million. The international revenue decline of 7% was
not fully offset by strong growth of 8% in New Zealand.
NZ growth was driven by new customers, price increases
and obtaining additional work from existing customers,
especially in the Councils market. SDL is the undisputed
leader in the Councils communication market in NZ and
extended that lead in 1H FY2024. The growth in NZ sales is
due to improved sales performance and a focus on “digital
first” communications as part of a complete multi-channel
communications approach. Email volumes in New Zealand
were up around 8% year-on-year although print volumes
declined around 11%.
SDL upgraded a portion of its leased printing equipment
during 1H FY2024 at more favourable terms.
International revenue declined 7%, largely driven by the
continuing mortgage market slump in the US, less low margin
print work, and slightly lower volumes from SDL’s largest
customer.
The closing net cash position at 31 December
was $8.29 million (1H FY2023 $7.13 million)
although this includes $0.5 million of
customer prepaid postage. The cash position
(net of prepaid postage) represents clear cash
available to the Company of around 53 cents
per share. The Directors have declared a fully
imputed interim dividend of 7.0 cents per
share (1H FY2023 10.0 cents).
5 | Directors’ & Chief Executive Officer’s Report

International sales remain focused on target
vertical markets such as NGOs (e.g. charities)
typically doing business globally (cross border
mail requirements) or provide business process
outsourcing to global enterprises. SDL was pleased
to partner with EY (formerly Ernst and Young) as
a customer in early 2023 and 1H FY2024 revenue
reflected rollout in several international markets for
one of their marquee financial services clients. The
UK continued to see steady recovery in volumes
from previously COVID-affected customers.
More difficult global macroeconomic conditions
are resulting in tightening of marketing budgets,
particularly in the NGO space, making international
sales efforts slower and more difficult. SDL
implemented price rises in 1H FY2024, offsetting a
range of cost pressures.
SG&A (Selling, General and Administration) costs
rose 1.3% year-on-year, despite general wage
increases across the Company of around 4-5%.
Staffing costs globally increased because of
general inflationary pressure, although the labour
market does appear to be loosening. Some salary
savings accrued from unfilled roles or from the
consolidation of roles. SDL increased investments
in building an improved brand awareness, launching
a new website, attending tradeshows, and
expanding digital marketing activity in 1H FY2024.
As previously advised, during 1H FY2024 the
Company’s largest customer notified SDL that it
intended to run an RFP (Request for Proposal)
tender for the communications requirements that
SDL currently provides. While 1H FY2024 earnings
were unaffected by the RFP, producing the response
utilised significant internal resource in the period.
6 | Directors’ & Chief Executive Officer’s Report

Financial Performance
Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 2.7% to $4.00 million
(1H FY2023 $4.11 million) on total revenue that slightly declined by 2.5%.
Summary Financial Performance
(all figures $000’s)
1H FY241H FY23Yr-on-Yr
$ Change
Yr-on-Yr
% Change
Total Revenue22,76623,344-578-2 .5%
Cost of Goods Sold13,79014,322-532-3.7%
Gross Profit8,9769,022-46-0.5%
Gross Margin (%)39.4%38.6%
Selling, General & Admin Costs4,9754,911641.3%
EBITDA4,0014,111-110-2 .7%
EBITDA Margin (%)17.6%17.6%  
Depreciation449494-45-9.1%
Amortisation1855-37-67.3%
EBIT3,5343,562-28-0 .8%
Net Interest (received) / paid-532679n.m.
Net Profit before Tax3,5873,536511 .4%
Taxation1,1141,079353.2%
Net Profit after Tax2,4732,457160 . 6%
The EBITDA margin was flat at 17.6% with higher Gross Margin (39.4% up from 38.6% the prior year)
offset by slightly higher SG&A costs.
SDL’s taxation rate in 1H FY2024 was 31.1% versus 30.5% in the prior period.
7 | Directors’ & Chief Executive Officer’s Report

Revenue Analysis
(all figures $000’s)
1H FY241H FY23Yr-on-Yr
$ Change
Yr-on-Yr
% Change
Software & Technology16,26517,125-860-5.0%
Digital Print & Document Handling2,2412,308-67-2.9%
Outsourced Services4,2603,9113498.9%
Total Revenue22,76623,344-578-2 .5%
Total revenue was 2.5% below prior year. Software
and Technology revenue, which is largely in
International, declined 5% to $16.26 million due to
the US mortgage market decline, less low margin
print work as SDL focused on growing more
profitable customers with global requirements, and
growth in digital services in New Zealand. Digital
Print and Document Handling revenue, which is
all in New Zealand, declined 2.9% to $2.24 million
reflecting lower print volumes as customers
shifted to digital channels, somewhat offset by
price increases. Outsourced Services revenue,
which is all in New Zealand, grew 8.9% to $4.26
million reflecting digital channel volume growth
and postage rate increases. While total revenue
declined, gross profit was essentially flat to prior
year due to growth in higher margin clients.
8 | Directors’ & Chief Executive Officer’s Report

Balance Sheet, Liquidity and Debt
SDL closed the half year with net cash on hand of $8.29 million, versus $7.13 million in 1H FY2023
although the closing position includes $0.5 million of customer prepaid postage. A bank overdraft facility
of $0.2 million remains in place but is unused.
Capital expenditure was $0.1 million in 1H FY2024, largely a technology refresh of selected networking
and computer equipment, plus upgrading of SDL internal systems.
Selected Balance Sheet and Cashflow Figures
(all figures $000’s)
1H FY241H FY23Yr-on-Yr
$ Change
Yr-on-Yr
% Change
Net Cash on Hand (net of debt)8,2917,1291,16216.3%
Non-current Assets (excl right of use asset)1,6831,67760.4%
Right of Use Assets2,1973,032-835-27.5%
Net Other Liabilities (excl right of use asset)-350-991641-64.7%
Right of Use Assets Liabilities-2,242-3,079837-27.2%
Net Assets9,5797,7681,81123 .3%
Cashflow from Trading2,8073,092-285-9.2%
Movement in Working Capital-465314-779n.m.
Cash Inflow from Operations2,3423,406-1,064-31 .2%
Book value (net assets) increased 23.3% to $9.58 million, largely the result of solid first half earnings.
Cashflow from trading declined 9.3% to $2.81 million as a result of December timing for payment of
suppliers with related customer receipts not received until January 2024.
9 | Directors’ & Chief Executive Officer’s Report

Dividend
SDL has declared an interim dividend of 7.0 cents per share, a 30% reduction on the prior year, on largely
flat earnings per share of 16.8 cents.
Earnings and Dividend per Share1H FY241H FY23Yr-on-Yr
Change
Yr-on-Yr
% Change
Shares on Issue ($000’s)14,719.814,719.800.0%
Earnings per share (cents)16.8016.690.110.6%
Dividend per share (cents)7.0010.00-3.00-30.0%
Dividend proportion Imputed100.0%100.0%n.a.n.a.
Payout ratio (on NPAT)41.7%59.9%n.a.n.a.
The dividend is fully imputed, and the cash dividend
amount represents a payout ratio of 41.7% of earnings
per share. SDL’s payout ratio (covering dividends and
buybacks) is currently limited to a maximum 50% of
earnings under the terms of co-funding from New Zealand
Trade and Enterprise’s (NZTE) International Growth Fund
(IGF). IGF co-funding is supporting a range of SDL’s market
development activities in North America. The IGF provides
50:50 co-funding for eligible project costs up to a maximum
of $600,000 from NZTE over a three-year period. At the
conclusion of the IGF agreement, the Directors will review
SDL’s dividend policy.
While SDL has a strong net cash position, the Directors
continue to maintain a preference for financial flexibility
given the macroeconomic uncertainty and the Company’s
largest customer currently undertaking review of its
communication needs. The Company continues to review
possible acquisition opportunities and emphasises that
any transaction must add shareholder value.
OPERATIONS
$2.34 M
CASH FLOW
NET CASH
$8.29 M
AT 31 DEC 2023
INTERIM
DIVIDEND
7. 0 C
PER SHARE
10 | Directors’ & Chief Executive Officer’s Report

Largest Customer RFP
There has been no change to the status of the RFP
since SDL provided the last update to shareholders
in November 2023. However, the RFP process is
now taking longer than initially expected.
Strategy
Leveraging the acquisition of Digital-to-Print (DTP),
SDL has become a leader in global customer
communications delivered as a service, to marquee
global NGOs and enterprise customers such as World
Vision, Pitney Bowes and EY. In 2024 and beyond
we are leveraging our expertise and technology into
digital transformation of customer communications.
“Digital transformation” appeals to a broad and
growing market, enabling SDL to integrate its
New Zealand and International businesses.
This approach in New Zealand has been
instrumental in capturing new business and the
Company’s market share gains. Our international
approach is a work in progress. Global customer
communications as a service will remain an
important part of what we do. Aligning with
and enabling our customers’ “digital first”
communications strategy will increasingly be our
strategic focus for growth.
FY 2024 Outlook
The timing and outcome of the largest customer
RFP make providing FY2024 guidance more
difficult than usual. The Directors continue to defer
providing FY2024 earnings guidance until the
result of the RFP is known as this could materially
affect 4Q FY2024 results. The first half result for
FY2024 was unaffected aside from diversion of
significant SDL resource into producing information
for the RFP response. SDL’s largest customer is
very material to SDL’s earnings and every effort will
be undertaken to ensure the business is retained,
although this RFP process will inevitably carry very
significant earnings risk for the Company.
We expect that the second half of FY2024 should
see ongoing gains in New Zealand operations
(new business and 1H FY2024 price increases).
International activity is expected to exhibit normal
lower seasonality similar to prior years, aside from
any impact from the RFP.
While the Company has a solid sales pipeline
in New Zealand, the Company’s international
growth opportunities are primarily with existing
clients. Additional full year result risk factors
beyond the RFP include other contract renewals
and new business success coupled with global
macroeconomic concerns and foreign exchange
volatility.
11 | Directors’ & Chief Executive Officer’s Report

Consolidated Statements
Consolidated Statement of Profit or Loss (unaudited)
For the six months ended 31 December 2023
(NZ$000’s) 6 Months Ended
31 Dec 2023
6 Months Ended
31 Dec 2022
Year Ended 30
Jun 2023 Audited
Operating revenue22,43223,42540,443
Other income334(81)(58)
Total income22,76623,34440,385
Expenses
Employee costs5,4215,4119,921
Research & development--813
Directors’ fees & salaries144124268
Print & other outsource expenses3,7973,5506,730
Other expenses9,40310,14816,941
Total Expenses18,76519,23334,673
Earnings before interest, tax, depreciation
& amortisation (EBITDA)
4,0014,1115,712
Depreciation449494965
Amortisation of intangible assets (software)185585
Net Interest (income) / expense(53)2618
Profit before income tax3,5873,5364,644
Income tax1,1141,0791,219
Net profit after income tax2,4732,4573,425
CentsCentsCents
Basic earnings per share16.816.723.4
Diluted earnings per share16.116.022.8
12 | Consolidated Statements

Consolidated Statement of Comprehensive Income (unaudited)
For the six months ended 31 December 2023
(NZ$000’s) 6 Months Ended
31 Dec 2023
6 Months Ended
31 Dec 2022
Year Ended 30 Jun
2023 Audited
Net operating profit after income tax2,4732,4573,425
Exchange differences on translation of
foreign operations
(62)(50)(5)
Total comprehensive income for the year2,4112,4073,420
13 | Consolidated Statements

Consolidated Statement of Changes In Equity (unaudited)
For the six months ended 31 December 2023
(NZ$000’s) Share
Capital
Employee
Share Plan
Currency
Translation Reserve
Accumulated
Losses
Total
Equity
Balance 1 July 20225,57465(34)3095,914
Issue of shares to employees-36--36
Transactions with owners-36--36
Dividend---(589)(589)
Profit for the period after tax
Other comprehensive (loss)
income
-
-
-
-
-
(50)
2,457
-
2,457
(50)
Total comprehensive income--(50)1,8681,818
Balance 31 December 2022
(unaudited)
5,574101(84)2,1777,768
Issue of shares to employees-77--77
Exercise of employee options-----
Transactions with owners77--77
Dividend---(2,060)(2,060)
Profit for the year after tax---3,4253,425
Other comprehensive loss--(5)-(5)
Total comprehensive income--(5)1,6741,360
Balance 30 June 2023 (audited)5,574142(39)1,3657,351
Issue of shares to employees-39--39
Exercise of employee options
Dividend Paid
-
-
-
-
-
-
-
(222)
-
(222)
Transactions with owners-39-(222)(183)
Profit for the period after tax---2,4732,473
Other comprehensive loss--(62)-(62)
Total comprehensive income--(62)2,4732,411
Balance 31 December 2023
(unaudited)5,574181(101)3,9259,579
14 | Consolidated Statements

Consolidated Statement of Financial Position (unaudited)
As at 31 December 2023
(NZ$000’s)As at
31 Dec 2023
As at

31 Dec 2022
As at 30 Jun 2023
Audited
Current Assets
Cash and cash equivalents8,2917,1296,628
Trade & other receivables3,0432,7374,565
Inventories and work in progress1,188390179
Deferred tax benefit188207187
Prepayments314389311
Total Current Assets13,02410,85211,870
Current Liabilities
Trade creditors1,2611,2682,389
Other current liabilities2,8732,3122,707
Other non-financial liabilities7422152
Employee benefit liabilities8751,112872
Lease liability – current677677676
Total Current Liabilities5,7605,3916,796
Working Capital7,2645,4615,074
Non-Current Assets
Capital works in progress36234263
Property, plant & equipment314352339
Right of use assets2,1973,0322,188
Intangible assets27230-
Continued on the next page ...
15 | Consolidated Statements

(NZ$000’s)As at
31 Dec 2023
As at

31 Dec 2022
As at 30 Jun 2023
Audited
Goodwill1,0611,0611,061
Total Non-Current Assets3,8804,7093,851
Non-Current Liabilities
Lease liability1,5652,4021,574
1,5652,4021,574
Net Assets9,5797,7687,351
Equity
Share capital5,5745,5745,574
Employee share option plan181101142
Foreign currency translation reserve(101)(84)(39)
Accumulated profit3,9252,1771,674
Total Equity9,5797,7687,351
For and on behalf of the Board
______________________________________________ ______________________________________________
John McMahon – Director (Chair) Andy Preece – Director (Chair of Audit & Risk)
Date: 22 February 2024
Consolidated Statement of Financial Position (unaudited)
As at 31 December 2023
16 | Consolidated Statements

Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2023
(NZ$000’s) 6 Months to
31 Dec 2023
6 Months to

31 Dec 2022
Year to 30 Jun 2023

Audited
Cash Flow from Operating Activities
Cash was provided from:
Receipts from sales25,56626,01542,315
Other revenue334(91)(58)
25,90025,92442,257
Cash was applied to:
Payments to suppliers17,05316,45424,899
Payments to employees5,4915,02210,909
GST & Income Tax paid to Inland Revenue1,0141,0421,606
23,55822,51837,414
Net Cash Inflow from Operating Activities2,3423,4064,843
Cash Flow from Investing Activities
Cash was applied to:
Purchase of right-of-use assets381--
Purchase of property, plant & equipment &
capital works in progress
104240275
485240275
Net Cash from Investing Activities(485)(240)(275)
Cash Flow from Financing Activities
Cash was provided from:
Finance lease additions381--
381--
Continued on the next page ...
17 | Consolidated Statements

(NZ$000’s) 6 Months to
31 Dec 2023
6 Months to

31 Dec 2022
Year to 30 Jun 2023

Audited
Cash was applied to:
Payment of dividends2225892,060
Interest (received) / paid
Finance lease liabilities
(53)
405
26
430
18
871
5741,0452,949
Net Cash Outflow from Financing Activities(193)(1,045)(2,949)
Net change in cash and cash equivalents1,6632,1201,619
Add cash & cash equivalents held at
beginning of year
6,6285,0095,009
Finance Facility and Cash Balance at End of
Year
8,2917,1296,628
Reconciliation of net deficit after income tax for the year with net cash inflow from operating activities
Net surplus after income tax2,4732,4573,425
Interest (received) / expense(53)2618
Add non-cash items:
Depreciation & amortisation of assets4675491,050
Gain / (loss) on foreign exchange(63)91168
Bad and doubtful debts(1)(16)(15)
Other non-cash items(16)(15)94
Cash Flow from Trading2,8073,0924,740
Add movements in Working Capital(465)314103
Net Cash Inflow from Operating Activities2,3423,4064,843
Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2023
18 | Consolidated Statements

Notes to the Financial Statement (unaudited)
For the six months ended 31 December 2023
1 . Corporate Information
Principles of consolidation
The condensed unaudited interim financial statements
include the accounts of Solution Dynamics Limited
(SDL or Company) and its subsidiaries, Solution
Dynamics International Limited, Solution Dynamics
Incorporated and Déjar International Limited
(collectively the Group) for the six months ended
31 December 2023 were authorised for issue in
accordance with a resolution of directors on 22
February 2024.
These unaudited interim financial statements are
for the six months ended 31 December 2023 and
are presented in rounded thousands 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 (NZ IAS 34) and IAS 34
“Interim Financial Reporting” (IAS 34). 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 2023.
Solution Dynamics Limited is a public company
incorporated and domiciled in New Zealand and is
listed on the NZX. The registered office is located at
18 Canaveral Drive, Albany in Auckland.
Nature of Operations
The Group offers a range of integrated solutions
encompassing data management, electronic digital
printing, document distribution, web presentment
and archiving, fulfilment, traditional print services,
scanning, data entry and document management.
Accounting Framework
The preparation of the interim financial statements
have been prepared in compliance with generally
accepted accounting practice in New Zealand (NZ
GAAP), the requirements set out in Part 7 of the
Financial Markets Conduct Act 2013 as a reporting
entity, the Main Board Listing Rules of the NZX,
the Companies Act 1993, and other authoritative
pronouncements issued by the New Zealand
Accounting Standards Board (NZ ASB).
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 2023.
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.
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 2023.
19 | Notes to the Financial Statement (unaudited)

The consolidated financial statements have been
prepared under the assumption that the Group
operates as a going concern.
4 . Segment Information
The Group operates in one business segment, the
supply of customer communication solutions.
These include a range of integrated document
management products and services separated into
three streams; Software & technology, Outsource
Services and Digital Communications. Specific
elements of these streams are as follows:
• Software & Technology, Solution Dynamics owns
the intellectual property in five products;
• Déjar is an enterprise-scale, SaaS-hosted
document archiving and retrieval solution.
It captures documents such as invoices,
statements, and customer correspondence at
the time of printing and stores them in highly
efficient format as a permanent record for later
viewing, reissue, or analysis.
• Bremy is a SaaS-based Digital Asset
Management system that can repurpose high-
resolution assets across multiple publishing
channels, such as Email and the web. It can
dynamically optimize these assets by changing
file formats and sizes depending on the desired
output channel.
• Composer is a SaaS-based PDF document
composition solution. It is template-driven
and uses client data to manage and generate
customer communication. Composer is highly
scalable and capable of generating millions of
documents.
• Digital Mail Centre (DMC) is a SaaS-based
solution that allows users to generate ad-hoc
print, email, or SMS communication based on
pre-configured templates. Users manage and
create their own templates within the system
using template builders. They can even use the
production Composer templates SDL uses to
generate the cyclic communication.
• Jupiter is a Global Job Workflow application
that was acquired through the purchase of the
DigitalToPrint business. The application manages
and routes print jobs received from clients to
multiple global print suppliers simultaneously.
Jupiter monitors and reports all jobs globally
informing clients of the job.
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 & Output Services is solely New
Zealand revenue and includes the printing of
client’s information digitally using high speed
laser printers followed by output fulfilment,
lodgement and distribution of those documents
using a variety of machine and other processes.
• Outsourced Services, not all components of
Solution Dynamics’ services in New Zealand are
produced internally. External elements such as
domestic New Zealand 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.
An overhead structure including sales, marketing
and administration departments provides services
for all of the above revenue streams.
20 | Notes to the Financial Statement (unaudited)

(NZ$000’s)6 Months to
31 Dec 2023
6 Months to

31 Dec 2022
Year to
30 June 2023
Software & Technology16,26571%17,12573%28,42770%
Digital Printing &
Document Handling
Services
2,24110%2,30810%4,43011%
Outsourced services4,26019%3,91117%7,52819%
Total income22,766100%23,344100%40,385100%
Less cost of sales13,79061%14,32261%24,39960%
Gross margin8,97639%9,02239%15,98640%
Selling, general &
administration
4,97522%4,91121%10,27425%
Earnings before interest,
tax, depreciation &
amortisation
4,00118%4,11118%5,71214%
Depreciation4492%4942%9652%
Amortisation180%550%850%
Interest (received) / paid(53)0%260%180%
Income tax1,1145%1,0795%1,2193%
Operating Profit after
income tax
2,473 11%2,45711%3,4258%
21 | Notes to the Financial Statement (unaudited)

Notes to the Financial Statement (unaudited)
For the six months ended 31 December 2023
4 . Segment Information (continued)
Segment Assets
Assets are not segmented between service streams.
Information about major customers
Included in revenues for Solution Dynamics of $22.77 million (2022: $23.34 million) are service revenues of
$10.49 million (2022: $10.69 million) which arose from sales to the Company’s largest customer.
Included in revenues for the group of $22.77 million (2022: $23.34 million) are service revenues of $14.82
million (2022: $15.34 million) which arose from sales of the top five customers in the group.
Geographical Information
The Group has customers in New Zealand, Australia, United States of America, and Europe.
Revenue from external customersNon-current assets
(NZ$000’s)6 Months to

31 Dec 2023
6 Months to

31 Dec 2022
Year to

30 June 2023
As at

31 Dec 2023
As at

31 Dec 2022
As at

30 June 2023
New Zealand8,2097,44814,6683,8774,6993,845
Australia239260536---
United States
of America
12,67514,37522,214-31
Europe1,6431,2612,967375
Total22,76623,34440,3853,8804,7093,851
22 | Notes to the Financial Statement (unaudited)

5 . Cash & Cash Equivalents
(NZ$000’s) As at
31 Dec 2023
As at
31 Dec 2022
As at
30 Jun 2023
Cash and cash equivalents8,2917,1296,628
Total Finance Facility and Cash 8,2917,1296,628
Solution Dynamics has an overdraft facility in place with the ANZ Bank at an interest rate of
12.05% p.a. (2022: 10.6%). This facility is to support the operational requirements of the Group,
is interest only and is secured by first ranking security Agreement over the assets of the parent
Solution Dynamics Limited.
At period end, the ANZ Bank has imposed no financial covenants to secure the existing facilities.
The Group maintains a $200,000 overdraft facility that was unused at the reporting date (2022:
$200,000). The Group continues to hold a net cash position with no bank debt (2022: $Nil).
At the end of the reporting period the Bank provided commercial guarantees totalling $65,000
(2022: $65,000) to the Group’s suppliers.
23 | Notes to the Financial Statement (unaudited)

6 . Share Capital & Share-based Payments
Solution Dynamics Limited has 14,719,810 ordinary shares (2022: 14,719,810 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
Shares in NZ$000’s
As at
31 Dec 2023
As at

31 Dec 2022
As at

30 Jun 2023
Shares Issued and Fully Paid:
• Beginning of the period14,72014,72014,720
Shares Issued and Fully Paid14,72014,72014,720
Employee Share Option Plan:
• Beginning of the period593373373
• Granted-220220
Shares Authorised for Share-based Payments593593593
Total Shares Authorised at the end of the Period15,31315,31315,313
Options granted during the year were nil (2022: 220,000), the 2022 options were at a weighted average
exercise price of nil (2022: $2.25). Of the current option pool, 200,000 options are eligible to be exercised
from October 2023, 173,000 options eligible to be exercised in February 2025 and 220,000 options eligible
to be exercised in October 2025.
24 | Notes to the Financial Statement (unaudited)

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 2023 to 31
December 2023 were as follows:
Key management were paid $1,513,176 (as
employees of Solution Dynamics Limited) during the
period (2022: $1,183,702) and were owed $151,981,
including annual leave, (2022: $182,907)
• Salaries paid to directors are disclosed in the
Consolidated Statement of Profit or Loss.
8 . Events after the Balance Date
At the board meeting of 22 February 2024, the
directors resolved to pay a fully imputed interim
dividend of 7.0 cents per share, amounting to
$1,030,087 (2023: the directors approved the
payment of a fully imputed interim dividend of 10.0
cents per share, amounting to $1,471,981). There
were no other significant events after balance date.
25 | Notes to the Financial Statement (unaudited)

Directory
Directors
John McMahon – Non-independent Chair
Julian Beavis – Independent
Elmar Toime – Independent
Andy Preece – Independent
Lee Eglinton – Independent
Company Officers
Patrick Brand – CEO
Suzanne Watts – CFO & Company Secretary
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
Legal Representative
Stephen Layburn
Commercial Barrister
Level 3, 175 Queen 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 9707700
Solution Dynamics (International) Limited
Lancaster Court, 8 Barnes Wallis Road,
Fareham, PO15 5TU
Hampshire
UNITED KINGDOM
Tel +44 1489 668219
Solution Dynamics Incorporated
260 Madison Avenue, 8th floor
New York, New York 10016
UNITED STATES OF AMERICA
Tel: +1 (917) 319 5625
Déjar International Limited (non-trading)
18 Canaveral Drive
Albany
AUCKLAND
PO Box 301248
Albany
AUCKLAND 0752
26 | Directory

NEW ZEALAND ̵ UNITED KINGDOM ̵ UNITED STATES OF AMERICA
www.solutiondynamics.com

---

Distribution Notice





Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Section 1: Issuer information
Name of issuer Solution Dynamics Limited
Financial product name/description Ordinary Shares
NZX ticker code SDL
ISIN (If unknown, check on NZX
website)
NZSDLE0001S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 22/03/2024
Ex-Date (one business day before the
Record Date)
21/03/2024
Payment date (and allotment date for
DRP)
10/04/2024
Total monies associated with the
distribution
1

$1,030,386.70 (14,719,810 shares @ $0.07000000
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD$
Section 2: Distribution amounts per financial product
Gross distribution
2
$ 0.09722222
Gross taxable amount
3
$ 0.09722222
Total cash distribution
4
$ 0.07000000
Excluded amount (applicable to listed
PIEs)
$ n/a
Supplementary distribution amount $ n/a

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.

Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed

Fully imputed


If fully or partially imputed, please
state imputation rate as % applied
6

28%
Imputation tax credits per financial
product
$0.02722222
Resident Withholding Tax per
financial product
$0.00486111
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
n/a
Start date and end date for
determining market price for DRP
n/a n/a
Date strike price to be announced (if
not available at this time)
n/a
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
n/a
DRP strike price per financial product
n/a
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
n/a
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Suzanne Watts, Company Secretary
Contact person for this
announcement
Suzanne Watts, Company Secretary
Contact phone number +64 27 524 9103
Contact email address susiewa@solutiondynamics.com
Date of release through MAP

22/02/2024




5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.


6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)

Please do not amend or delete individual rows. As this template relates to prescribed content, changes to content
should only be made where it is clearly indicated that this is permitted, otherwise, if an Issuer considers a particular
element does not apply, mark the row as N/A, Any other changes to this prescribed form must first be approved by
NZX as required under NZX Listing Rule 3.26.1.

Results for announcement to the market
Name of issuer Solution Dynamics Limited
Reporting Period 6 months to December 2023
Previous Reporting Period 6 months to December 2022
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$22,766 -2.5%
Total Revenue $22,766 -2.5%
Net profit/(loss) from
continuing operations
$2,473 0.65%
Total net profit/(loss) $2,473 0.65%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.07000000
Imputed amount per Quoted
Equity Security
$ 0.02722222
Record Date 21/03/2024
Dividend Payment Date 10/04/2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.560197448 $0.453524229
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the Directors and Chief Executive Officers Report in the
attached Financial Statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Suzanne Watts, Company Secretary
Contact person for this
announcement
Suzanne Watts, Company Secretary
Contact phone number +64 27 5249103
Contact email address susiewa@solutiondynamics.com
Date of release through MAP

22/02/2024
Unaudited financial statements accompany this announcement.