SDL 1H FY2025 Financial Results

INTERIM
REPORT
For the six months
ended 31 December 2024
Transforming
Global Customer
Communications

FY2025 1H Highlights
For the six months ended 31 December 2024
• Net profit after tax declined 5.2% to $2.34 million
and EPS of 15.9 cents
• Revenue increased 14.6%
• EBITDA declined 7.1% to $3.71 million
• Cash flow from operations $5.19 million and net
cash at 31 December 2024 was $12.41 million
• Cash flow and net cash benefitted from timing
issues and normalised net cash position nearer
$10–$11 million
• No interim dividend given uncertain outlook as
SDL’s largest customer is now in a multi-vendor
position
• FY2025 earnings outlook remains unclear but
should achieve improved visibility over 2025

TABLE OF CONTENTS
DIRECTORS’ & CHIEF EXECUTIVE OFFICER’S REPORT
Result Overview .........................................................4
Operational Commentary .................................................5
Financial Performance ...................................................6
Balance Sheet, Liquidity and Debt ..........................................7
Dividend ...............................................................8
Strategy ...............................................................9
FY 2025 Outlook ........................................................9
Consolidated Interim Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
(unaudited). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Consolidated Statement of Changes In Equity (unaudited) ....................12
Consolidated Statement of Financial Position (unaudited) ....................13
Consolidated Statement of Cash Flow (unaudited) ..........................15
Notes to the Financial Statement (unaudited)
1. Corporate Information ................................................17
2. Significant Accounting Policies .........................................18
3. Estimates ...........................................................18
4. Segment Information .................................................21
5. Cash & Cash Equivalents ..............................................21
6. Short-term Deposits ..................................................22
7. Share Capital & Share-based Payments ..................................22
8. Related Parties ......................................................24
9. Events after the Balance Date ..........................................24
Company Directory .....................................................25

DIRECTORS’ & CHIEF
EXECUTIVE OFFICER’S
REPORT
Result Overview
Solution Dynamics Limited (“SDL” or “Company”) produced a 5.2% decline in
unaudited net profit after tax of $2.34 million for the FY2025 half year (1H FY2024
$2.47 million). This represents undiluted earnings per share of 15.9 cents.
As usual, the first half of FY2025 reflects a high concentration of large
international customer jobs, along with usual seasonal 1H strength in the New
Zealand operations. The global environment generally remains difficult. In
particular, North American longer-term interest rates remained high, preventing
recovery in US mortgage market communications activity.
First half earnings included a number of one-off items relating to restructuring
following the outcome of the request for proposal (RFP) from SDL’s largest
customer. Restructuring provisions were around $0.2 million and partly offset by
some incentive and accrual write-backs.
In the NZ print and mail house market, SDL continued to gain share, growing mail
lodgements 1%. This is a strong result, relatively speaking, given the NZ market
remains in structural decline.
Cash flow from operations was $5.19 million (1H FY2024 $2.34 million) with
cash flow from trading improving 6.2% to $2.98 million. Notably, a large customer
receipt from 1H billings was received in December with associated costs not
paid until January. This inflated the combined closing cash and short-term cash
deposits position at 31 December to $12.41 million (1H FY2024 $8.29 million).
Adjusting for this timing difference, the underlying cash position was nearer
$10–$11 million (and was $11.4 million at end January 2025).
The most significant factor during 1H was SDL’s largest customer advising it
would shift from a single supplier (SDL) model to a multi-vendor (SDL and one
other) model. SDL has been advised that it will remain a supplier to the customer
and that the customer now expects to tender its communications programme
services (software/professional services and print/logistics) on a project by
project basis. SDL was advised that the RFP decision was based on commercial
factors not on operational performance.
The contestable nature of future work means it will take some time to understand
the full impact on revenue and margins, although it has the potential to be severe.
4 DIRECTORS’ & CHIEF EXECUTIVE OFFICER’S REPORT

As a result of this decision, the Company promptly moved forward
with a comprehensive restructure, affecting both New Zealand
and international operations, removing a material level of costs.
Additionally, from 1 January 2025 the Directors will reduce Board fees
to the level prior to the last fee increase in 2022 while the Chair will
reduce fees entirely.
In view of the near-term uncertainty, the Directors have deferred any
possible FY2025 dividend (1H FY2024 7.0 cents) until the end of the
financial year.
Operational Commentary
Operating revenue rose 14.6% to $26.09 million. International revenue
increased 8.6% although much of that was one large print/logistics
job that fell into early 1H rather than late FY2024. Revenue growth in
New Zealand was solid, with core printing and document handling up
9.0%, from a combination of market shares gains and selected price
adjustments. While Outsourced Services rose 40.3% to $5.98 million
this was mainly the result of greater postage volumes and the impact
of NZ Post’s price rises – both of these are very low margin revenue so
there was only modest earnings gain.
The success in growing NZ was driven by a combination of new
customers, price adjustments and obtaining additional work from
existing customers, an ongoing feature of SDL’s efforts, particularly
in the Councils market. SDL remains the undisputed leader for
Council communications in NZ. NZ sales efforts remain focused on
“digital first” communications as part of a complete multi-channel
communications approach. This was reflected in email volumes in
New Zealand increasing around 15% year-on-year with print volumes
rising around 3%.
Internationally, in addition to the positive effect from timing of one
large job, growth occurred across a range of clients although the
ongoing mortgage market slump in the US means there has been no
recovery in mortgage-related communications as yet.
During 1H, SDL integrated a small North American marketing agency –
GRI Marketing – into its operations. This transaction is expected to be
largely cash flow neutral, and adds both marketing and enterprise sales
capability, along with several brand name clients.
SG&A (Selling, General and Administration) costs rose 6.8% year-on-
year, largely from inflation-related rises in general costs, plus increases
in salary costs.
Solution Dynamics | 2024-25 Interim Report 5

Financial Performance
Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 7.1% to $3.72
million (1H FY2024 $4.00 million) on sales revenue that rose 14.6%.
Summary Financial PerformanceYr-on-YrYr-on-Yr
(all figures $000)1H FY251H FY24$ Change% Change
Total Revenue26,09122,7663,32514.6%
Cost of Goods Sold17,06513,7903,27523.7%
Gross Profit9,0268,976500.6%
Gross Margin (%)34.6%39.4%
Selling, General & Admin Costs5,3114,9753366.8%
EBITDA3,7154,001-286-7.1%
EBITDA Margin (%)14.2%17.6%
Depreciation424449-25-5.6%
Amortisation2718950.0%
EBIT3,2643,534-270-7.6%
Net Interest Paid/(Rec’d)-62-53917.0%
Net Profit before Tax3,3263,587-261-7.3%
Taxation9831,114-131-11.8%
Net Profit after Tax2,3432,473-130-5.2%
The EBITDA margin declined from 17.6% to 14.2% with the lower Gross Margin (34.6% from 39.4%
the prior year) mainly the result of the increase in low margin postage revenue in New Zealand.
SDL’s taxation rate in 1H FY2025 was 29.6% versus 31.1% in the prior period.
Revenue AnalysisYr-on-YrYr-on-Yr
(all figures $000)1H FY251H FY24$ Change% Change
Software & Technology17,67116,2651,4068.6%
Digital Print & Document Handling2,4422,2412019.0%
Outsourced Services5,9784,2601,71840.3%
Total Revenue26,09122,7663,32514.6%
6 DIRECTORS’ & CHIEF EXECUTIVE OFFICER’S REPORT

Total revenue was up 14.6% on the prior year. Software and Technology revenue, which is mostly
in International, rose 8.6% to $17.67 million with one larger job falling into early 1H rather than late
FY2024. Digital Print and Document Handling revenue, which is all in New Zealand, rose 9.0% to
$2.44 million reflecting improved print volumes from market shares gains, plus price increases.
Outsourced Services revenue, which is all in New Zealand, grew 40.3% to $5.98 million reflecting
increases in both postage rates and low-margin postage volumes.
Balance Sheet, Liquidity and Debt
SDL closed the half year with net cash on hand of $12.41 million, versus $8.29 million in 1H
FY2024. As previously noted, the cash position is overstated because of working capital timing
over year end, with underlying closing cash nearer $10–$11 million (cash at end January was
$11.4 million). A bank overdraft facility of $0.2 million remains in place but is unused.
Capital expenditure was negligible for the half year, largely for minor items of computer
equipment.
Selected Balance Sheet and Cashflow
FiguresYr-on-YrYr-on-Yr
(all figures $000)1H FY251H FY24$ Change% Change
Net Cash on Hand (net of debt)12,4058,2914,11449.6%
Non-current Assets (excl Right of Use)1,6751,871-196-10.5%
Right of Use Assets1,4312,197-766-34.9%
Net Other Liabilities (excl Right of Use)-2,803-538-2,265421.0%
Right of Use Liabilities-1,456-2,242786-35.1%
Net Assets11,2529,5791,67317.5%
Cashflow from Trading2,9822,8071756.2%
Movement in Working Capital2,206-4652,671-574.4%
Cash Inflow from Operations5,1882,3422,846121.5%
Book value (net assets) increased 17.5% to $11.25 million, predominantly from solid first half
earnings.
Solution Dynamics | 2024-25 Interim Report 7

Dividend
Earnings per share was 5.2% lower at 15.9 cents.
With near-term earnings uncertainty, the Directors have deferred consideration of
a dividend until end of FY2025.
Earnings and Dividend per ShareYr-on-YrYr-on-Yr
1H FY251H FY24Change% Change
Shares on Issue (000)14,719.814,719.8-0.0%
Earnings per share (cents)15.9216.80-0.88-5.2%
Dividend per share (cents)n.a.7.00-7.00-100.0%
Dividend proportion Imputedn.a.100.0%n.a.n.a.
Payout ratio (on NPAT)n.a.41.7%n.a.n.a.
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.
The Directors will review both SDL’s dividend and capital management policy prior
to the conclusion of the IGF agreement in late 2025.
While SDL has a strong net cash position, the Directors continue to maintain
a preference for financial flexibility given the macroeconomic uncertainty and
unclear effect of the Company’s largest customer now operating a multi-vendor
model. The Company continues to review possible acquisition opportunities and
emphasises that any transaction must add shareholder value.
8 DIRECTORS’ & CHIEF EXECUTIVE OFFICER’S REPORT

Strategy
SDL’s strategy is to lead with “Digital First” customer communications
software and services, reducing our reliance on mail outsourcing.
It now seems likely that AI will emerge as both a threat and an
opportunity in this industry. SDL’s response is twofold. First is
integrating “best of breed” AI into our products and second, driving
operational efficiency, particularly in mail-related functions.
The three key areas of near-term focus in 2025 are:
1. Streamline operational efficiency, with a well-executed business
restructuring and increased automation, plus elimination of certain
lower margin work.
2. Leverage AI to modernise and enhance SDL’s digital marketing
software value. Build out SDL’s GenComm AI capabilities and
complete several proof-of-concept projects this calendar year.
3. Drive international sales, leveraging the recent integration of GRI
Marketing, investment in software sales and support talent, with
both geographic and targeted vertical market focus.
We can be sure that both new and traditional competitors will also be
leading with AI, so a business-as-usual strategy that ignores it, risks
being left behind by more agile competitors.
FY 2025 Outlook
With SDL’s largest customer having moved to a multi-vendor model,
the extent to which the Company retains a portion of revenue and
margin is more unclear than it has been in recent years. This makes
forecasting particularly difficult as a wide range of outcomes are
possible.
Noting that SDL’s second half of the financial year is typically
seasonally much weaker than the first it seems likely that 2H FY2025
will incur a loss. That said, the Company is not currently in a position to
provide a full year FY2025 forecast.
While there are ongoing gains in New Zealand operations (new
business and 1H price increases), and SG&A cost savings that will be
partially realised, the loss of gross profit from our largest customer
is likely to outpace those gains. As well, the usual risk factors apply
to second half expectations and include other contract renewals, the
extent of new business success, along with global macroeconomic
concerns and continued foreign exchange volatility.
Solution Dynamics | 2024-25 Interim Report 9

CONSOLIDATED
INTERIM
FINANCIAL
STATEMENTS

Consolidated Statement of Profit or Loss and Other Comprehensive Income (unaudited)
For the six months ended 31 December 2024
6 Months Ended
31 Dec 2024
6 Months Ended
31 Dec 2023
Year Ended
30 Jun 2024
Audited
Revenue from contracts with customers25,94522,43238,252
Other income146334416
Total Revenue and Income26,09122,76638,668
Cost of Sales17,06513,79023,824
Selling, General & Administration5,3114,97510,009
Earnings before Interest, Tax, Depreciation
& Amortisation (EBITDA)3,7154,0014,835
Depreciation424449851
Amortisation271854
Net Finance Income(62)(53)(125)
Profit before Income Tax3,3263,5874,055
Income Tax9831,1141,236
Net Profit after Income Tax2,3432,4732,819
Other Comprehensive Income
Items that may be reclassified subsequently
to profit and loss:
Exchange gain/(loss) on translation of
foreign operations
239(62)60
Other Comprehensive Gain/(Loss) Net of Tax239(62)60
Total Comprehensive Income for the Year2,5822,4112,879
Earnings per Share – Net Profit after TaxCentsCentsCents
Basic earnings per share15.916.819.2
Diluted earnings per share15.316.119.2
11 Consolidated Interim Financial Statements

Consolidated Statement of Changes In Equity (unaudited)
For the six months ended 31 December 2024
Share
Capital
Employee
Share Option
Plan
Foreign
Currency
Translation
Reserve
Accumulated
Profit
Total
Equity
Balance 1 July 20235,574142(39)1,6747,351
Issue of share options to
employees
-39- - 39
Dividends 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 20235,574181(101)3,9259,579
Issue of share options to
employees
- 24- - 24
Dividends paid -- - (1,252)(1,252)
Transactions with Owners-24-(1,252)(1,228)
Profit for the period after tax -- - 2,8192,819
Other comprehensive income - -60- 60
Total Comprehensive Income--602,8192,879
Balance 30 June 2024 (audited)5,574166213,2419,002
Issue of share options to
employees
- 36- - 36
Dividends paid - -- (368)(368)
Transactions with Owners-36-(368)(332)
Profit for the period after tax --- 2,3432,343
Other comprehensive income- - 239- 239
Total Comprehensive Income--2392,3432,582
Balance 31 December 2024
(unaudited)5,5742022605,21611,252
Solution Dynamics | 2024-25 Interim Report 12

Consolidated Statement of Financial Position (unaudited)
As at 31 December 2024
As at
31 Dec
2024
As at
31 Dec
2023
As at
30 Jun 2024
Audited
Current Assets
Cash and cash equivalents9,4054,7914,950
Short-term cash deposits3,0003,5003,000
Trade & other receivables2,6593,1053,861
Inventories5061,188271
Prepayments294314470
Total Current Assets15,86412,89812,552
Current Liabilities
Trade and other payables4,3472,9893,923
Provision for taxation798761281
Deferred contract revenue186520216
Lease liability735677735
Employee benefit liabilities931875855
Total Current Liabilities6,9975,8226,010
Working Capital8,8677,0766,542
Non-Current Assets
Property, plant & equipment220350278
Right of use assets1,4312,1971,795
Goodwill & intangible assets1,2291,3331,241
Deferred tax benefit226188226
Total Non-Current Assets3,1064,0683,540

13 Consolidated Interim Financial Statements

Consolidated Statement of Financial Position (unaudited)
As at 31 December 2024
As at
31 Dec
2024
As at
31 Dec
2023
As at
30 Jun 2024
Audited
Non-Current Liabilities
Lease liability7211,5651,080
Total Non-Current Liabilities7211,5651,080
Net Assets11,2529,5799,002
Equity
Share Capital5,5745,5745,574
Employee share option plan202181166
Foreign currency translation
reserve
260(101)21
Accumulated profit5,2163,9253,241
Total Equity11,2529,5799,002
For and on behalf of the Board who approved these financial statements for issue on 27 February
2025.
For and on behalf of the Board
John McMahon – Director (Chair)
Date: 27 February 2025
Andy Preece – Director
(Chair of Audit & Risk)
The accompanying notes on pages 17–24 form part of the Consolidated Financial Statements.
Solution Dynamics | 2024-25 Interim Report 14

Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2024
6 Months to
31 Dec 2024
6 Months to
31 Dec 2023
Year to
30 Jun 2024
Audited
Cash Flow from Operating Activities
Cash was provided from:
Receipts from customers29,04325,56641,565
Other income146334416
29,18925,90041,981
Cash was applied to:
Payments to suppliers16,62817,05326,210
Payments to employees6,0675,49110,957
Income tax paid9831,1141,236
GST and VAT paid/(received)323(100)223
24,00123,55838,626
Net Cash Inflow from Operating
Activities
5,1882,3423,355
Cash Flow from Investing Activities
Cash was applied to:
Transfer to short-term cash deposits3,000- 3,000
Purchase of property, plant & equipment
& capital works in progress
1810564
Purchase of software & intangible
assets
- -17
3,0181053,081
Cash was provided from:   
Transfer from short-term cash deposits3,000- - 
3,000--
Net Cash Outflows from Investing
Activities
(18)(105)(3,081)
Continued on the next page ...
15 Consolidated Interim Financial Statements

Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2024
6 Months to
31 Dec 2024
6 Months to
31 Dec 2023
Year to
30 Jun 2024
Audited
Cash Flow from Financing
Activities
Cash was applied to:
Payment of dividends3682221,252
Interest paid11098125
Interest received(172)(151)(250)
Lease liability payments409405825
7155741,952
Net Cash Outflow from Financing
Activities
(715)(574)(1,952)
Net Change in Cash and Cash
Equivalents
4,4551,663(1,678)
Add cash & cash equivalents held
at beginning of year
4,9506,6286,628
Cash and Cash Equivalents at End
of Year9,4058,2914,950
Reconciliation of net surplus after income tax for the year with net cash inflow from operating
activities
Net surplus after income tax2,3432,4732,819
Interest (received)/expense(62)(53)(125)
Add non-cash items:
Depreciation & Amortisation of
assets
451467904
Gain/(loss) on foreign exchange(25)(63)(217)
Bad debts-(1)-
Other non-cash items275(16)48
Cash Flow from Trading2,9822,8073,429
Add movements in Working Capital2,206(465)(74)
Net Cash Inflow from Operating
Activities
5,1882,3423,355
Solution Dynamics | 2024-25 Interim Report 16

Notes to the Financial Statement (unaudited)
For the six months ended 31 December 2024
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. The condensed unaudited interim financial
statements for the six months ended 31 December 2024 were authorised for issue in accordance
with a resolution of directors on 27 February 2025.
These unaudited interim financial statements are for the six months ended 31 December 2024
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’s generally accepted
accounting practices 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 International
Financial Reporting Standards (IFRS) and should be read in conjunction with the consolidated
financial statements for the year ended 30 June 2024.
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.
Details on subsidiaries is provided below:
Proportion of Ownership Interests (%)
Entity nameCountry of Incorporation and
Primary Place of Business
20242023
Solution Dynamics
International Limited
United Kingdom100%100%
Solution Dynamics
Incorporated
United States of America 100%100%
Déjar International Limited New Zealand100%100%
Nature of Operations
The Group offers a range of integrated solutions encompassing data management, electronic
digital printing, document distribution, web presentation and archiving, fulfilment, traditional print
services, scanning, data entry and document management.
17 Consolidated Interim Financial Statements

Accounting Framework
The parent company, Solution Dynamics Limited, is a profit-oriented entity, domiciled in New
Zealand, registered under the companies Act 1993 and listed on the New Zealand Stock
Exchange. Solution Dynamics Limited is an FMC Reporting Entity under the Financial Markets
Conducts Act 2013 and the Financial Reporting Act 2013.
The interim financial statements have been prepared in accordance with Generally Accepted
Practice in New Zealand (NZ GAAP) and other authoritative pronouncements issued by the New
Zealand Accounting Standards Board (NZ ASB).
2. Significant Accounting Policies
Re-presentations
To Improve disclosure effectiveness, the Group has made a number of reclassifications to the
interim Financial Statements in the current year.
The previously separate Consolidated Statement of Profit or Loss and Consolidated Statement
of Comprehensive Income have combined into the Consolidated Statement of Profit or Loss and
Other Comprehensive Income.
The simplifications have also resulted in a number of segregation and amendments where line
items are not material and affected comparatives have been re-presented for consistency. These
re-presentations have not had an impact on the Profit after tax or Total Comprehensive Income in
the Statement of Profit or Loss and Other Comprehensive Income, Net Assets in the Statement of
Financial Position, or the Net increase/ (decrease) in cash presented in the statement of Cash Flows.
3. Estimates
When preparing the interim financial statements, management undertakes several 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 2024.
The consolidated financial statements have been prepared under the assumption that the Group
operates as a going concern.
3.1 Revenue, Income, and Segment Reporting
Accounting policy
Revenue is recognised when control of a product or service, or a distinct performance obligation is
transferred to the customer. Where multiple products or services are sold in a single arrangement,
revenue is recognised for each distinct good or service.
Solution Dynamics | 2024-25 Interim Report 18

Digital Printing & Document Services revenue
Service revenue is earned from providing mail house operations, high-volume postal business and
ancillary document handling operations such as automated envelope inserting and flow-wrap.
The lodgement and distribution of these documents is managed using a variety of machines and
processes.
Alongside our services, we offer Digital Mail Centre (DMC) enabling customers/users to generate
print, email, or SMS communications from pre-configured templates. Customer/users manage
and create their own templates using template builders within the system.
Revenue is recognised over time using the output method as the relevant services are completed
and delivered to the customer.
Outsourced Services revenue
Outsourced services revenue is earned on combined functions or components such as postage,
third party offset printing, freight, paper and envelopes. These are integrated into the above
service offerings. Long-term arrangements have been established with key suppliers such as NZ
Post, for the provision of these services.
For performance obligations involving the delivery of goods (e.g., paper, envelopes), revenue is
recognised at the point in time when control is transferred to the customer, usually upon receipt of
the goods.
For services where the customer benefits from the service as it is performed, revenue is
recognised over time via the output method. The measure of progress toward satisfying these
performance obligations is determined based on the extent of services delivered or consumed by
the customer during the period.
Digital Software & Technology revenue
Software platforms are leveraged to onboard customers, facilitate the sending and tracking
of documentation through physical and digital channels and manage archiving and retrieval
processes using a SaaS model (software as a service arrangement). Revenue earned from the
platform can be structured as a monthly subscription or charged on a per-document basis.
Revenue earned is recognised over-time via the output method as customers simultaneously and
continuously derive the benefit from their subscription rights or at a point in time on a per- document
basis as the performance obligation is met instantly with a customer self-generated digital print.
Segment Reporting
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, Digital Printing & Document Handling Services and
Outsourced revenue.
An overhead structure including sales, marketing and administration departments provides
services for all of the above revenue streams.
19 Consolidated Interim Financial Statements

There are no reconciling items in this note due to the management information provided to the
Chief Operating Decision Maker, the CEO Patrick Brand, being compiled using the same standards
and accounting policies as those used to prepare the financial statements.
Revenue from contracts with customers
2024 1HDigital Printing &
Document Services
Outsourced
Services
Digital Software
& Technology
Total
Revenue recognised
over time
2,4425,53817,00924,989
Revenue recognised at
a point in time
-440516956
Total2,4425,97817,52525,945
2023 1HDigital Printing &
Document Services
Outsourced
Services
Digital Software
& Technology
Total
Revenue recognised
over time
2,2413,74915,23821,228
Revenue recognised at
a point in time
-5116931,204
Total2,2414,26015,93122,432
Other income
6 Months Ended
31 Dec 2024
6 Months Ended
31 Dec 2023
Year Ended
30 Jun 2024 Audited
Government grant income121105199
Other Income25229217
Total Other Income146334416
3.2 Other Estimates
Restructuring Costs
Following the event of SDL’s largest customer advising it would shift from a single supplier model
to a multi-vendor model, SDL’s Consolidated Interim Financial Statements, for the period ended
31 December 2024, contains a current estimated restructuring cost of $0.2m.
Seasonality
Communications volumes are typically seasonally stronger in the July to December period
meaning that SDL’s interim result is typically stronger than its second half financial performance.
Solution Dynamics | 2024-25 Interim Report 20

4. Segment Information
Segment Assets
Assets are not segmented between service streams.
Information about major customers
Included in revenue from customer contracts for Solution Dynamics of $25.95 million (2023:
$22.43 million) are service revenues of $12.03 million (2023: $10.49 million) which arose from
sales to the Company’s largest customer.
Included in revenue from customer contracts for the group of $25.95 million (2023: $22.43
million) are service revenues of $16.83 million (2023: $14.82 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
6 Months
to 31 Dec
2024
6 Months
to 31 Dec
2023
Year to
30 June
2024
As at
31 Dec
2024
As at
31 Dec
2023
As at
30 June
2024
New Zealand9,7547,87515,2883,0964,0653,529
Australia5512391333- - - 
United States
of America
13,55612,67518,3602- - 
Europe2,0841,6433,2718311
Total25,94522,43238,2523,1064,0683,540
5. Cash & Cash Equivalents
As at
31 Dec
2024
As at
31 Dec
2023
Cash at bank9,4054,950
Total Cash and Cash Equivalents9,4054,950
Interest rates on cash and cash equivalents:
Cash at bank 2.50% - 4.80% (2024: 3.65% - 4.80%)
21 Consolidated Interim Financial Statements

Solution Dynamics has a $200,000 overdraft facility in place with the ANZ Bank at an interest
rate of 14.35% p.a. (2024: 15.70%). This facility, which was unused as at 31 December 2024, is to
support the operational requirements of the Group. The facility is interest only and is secured by
first ranking debenture over the assets of the Group.
6. Short-term Deposits
As at
31 Dec
2024
As at
31 Dec
2023
Short-term deposits (less than 6 months maturity)3,0003,000
Total Short-Term Deposits3,0003,000
Funds in short-term deposits are accessible following a 30-day notice period, subject to approval
by the counterparty.
Interest rates on short-term deposits:
Short-term deposits 4.04% – 5.91% (2024: 5.50% - 6.19%)
As at 31 December 2024 the ANZ Bank has imposed no financial covenants to secure the existing
facilities. The Group holds a net cash position with no bank debt (2023: $Nil).
As at 31 December 2024 SDL provided commercial guarantees totaling $64,500 (2023: $64,500)
to the Group’s suppliers.
7. Share Capital & Share-based Payments
The Company had 14,719,810 (2024: 14,719,810) ordinary shares on issue at 31 December 2024.
All ordinary shares ranked equally with one vote attached to each fully paid ordinary share and
share equally in dividends and surplus on winding up.
Equity-settled share-based payments to employees are measured at the fair value of the equity
instruments at the grant date.
The fair value determined at the grant date of the equity settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity
instruments that will eventually vest. On each reporting date, the Group revises its estimate of the
number of equity instruments expected to vest.
The impact of the revision of the original estimates, if any, is recognised in the Consolidated
Statement of Profit or Loss over the remaining period, with a corresponding adjustment to the
equity-settled employee benefits reserve.
Solution Dynamics Limited offers an equity settled employee share option plan. The general
principles of the scheme are:
Solution Dynamics | 2024-25 Interim Report 22

• The maximum aggregate number of share options to be granted pursuant to the plan is 5% of
the total number of shares on issue at any one time.
• Options of no more than 1% of the total number of SDL’s shares on issue can be granted to an
individual staff member (the directors made an exception to this limit for the US-based CEO
Patrick Brand)
• The exercise price will be determined by the Board based on the market price at the time of
issue.
• The options may be exercised by the participant (in whole or part) after three years from the
date that they are granted. The key employees have 18-months from the date of eligibility and
must be employed by SDL at the date the option is exercised.
Number of Shares As at
31 Dec 2024
As at
31 Dec 2023
As at
30 Jun 2024
Shares Issued and Fully Paid:
• Beginning of the period
14,72014,72014,720
Shares Issued and Fully Paid14,72014,72014,720
Employee Share Option Plan:
• Beginning of the period
593593593
• Granted---
Shares Authorised for Share-based Payments593593593
Total Shares Authorised at the end of the Period15,31315,31315,313
31 Dec 2024
Number of Shares
31 Dec 2023
Number of Shares
Unvested shares at 1 July593593
Granted--
Unvested shares at 31 December593593
Percentage of total ordinary shares3.90%3.90%
Grant DateOptions
Issued
Share Price
at Grant Date
Exercise
Price
Options ExpireOption Value
$
March 2021200,000$2.60$2.60September
2025
$114,625
February 2023172,796$2.90$2.90August 2026$29,994
October 2023220,000$2.25$2.25October 2027$68,066
Options granted during the year were nil (2023: nil). Share options were approved for 220,000
shares for three key members in October 2023 (with an exercise price of $2.25), all three remain
as employees at 30 December 2024 bringing the total of share options to 592,796.
23 Consolidated Interim Financial Statements

8. 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 2024 to 31 December 2024 were as follows:
Key management were paid $1,243,648 (as employees of Solution Dynamics Limited) during the
period (2023: $1,513,176) and were owed $185,714 including annual leave, (2023: $151,981).
Salaries paid to directors are disclosed in the Consolidated Statement of Profit or Loss and
Other Comprehensive Income.
9. Events after the Balance Date
There were no significant events after balance date. (2023: the directors approved the payment
of a fully imputed interim dividend of 7.0 cents per share, amounting to $1,030,387).
Solution Dynamics | 2024-25 Interim Report 24

COMPANY
DIRECTORY
Nature of Business
Data management, electronic digital printing,
document distribution, web presentment and
archiving, fulfilment, print services, scanning,
data entry and document management.
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 Limited
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
25 Company Directory

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

---

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 2024
Previous Reporting Period 6 months to December 2023
Currency
Amount (000s) Percentage change
Revenue from continuing
operations
$26,091 14.6%
Total Revenue $26,091 14.6%
Net profit/(loss) from
continuing operations
$2,343 -5.2%
Total net profit/(loss) $2,343 -5.2%
Interim/Final Dividend
Amount per Quoted Equity
Security
No dividend declared or proposed
Imputed amount per Quoted
Equity Security
n/a
Record Date n/a
Dividend Payment Date n/a
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.680919115

$0.560197448
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

27/02/2025
Unaudited financial statements accompany this announcement.