SDL H1 FY2026 Financial Results and Interim Dividend

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For the six months ended
31 December 2025
INTERIM
REPORT

FY2026 1H Highlights
For the six months ended 31 December 2025
• Net profit after tax declined 91% to $0.21 million
and EPS of 1.5 cents
• Revenue declined 34.5%
• EBITDA declined 81% to $0.69 million
• Cash flow from operations -$0.77 million and net
cash at 31 December 2025 was $8.36 million
(about 57 cents per share)
• Interim dividend of 2.0 cents per share (fully
imputed)
• Successful development and launch of nGAGE for
UK dental market
• FY2026 earnings guidance maintained at $0.1 to
$0.6 million

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 and Capital Management ........................................8
Governance and Management ...........................................9
nGAGE ...............................................................9
Strategy .............................................................10
FY 2026 Outlook ......................................................10
Consolidated Interim Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
(unaudited) ..........................................................14
Consolidated Statement of Changes In Equity (unaudited) ..................15
Consolidated Statement of Financial Position (unaudited) ...................16
Consolidated Statement of Cash Flow (unaudited) .........................18
Notes to the Financial Statement (unaudited)
1. Corporate Information ...............................................20
2. Significant Accounting Policies .......................................21
3. Estimates ..........................................................21
4. Segment Information ................................................24
5. Cash & Cash Equivalents .............................................24
6. Short-term Deposits .................................................25
7. Share Capital & Share-based Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
8. Related Parties .....................................................27
9. Events after the Balance Date .........................................27
Company Directory ....................................................28

4 Directors’ & Chief Executive Officer’s Report
Directors’ & Chief Executive
Officer’s Report
Result Overview
Solution Dynamics Limited (“SDL” or “Company”) produced an unaudited net profit after tax of $0.21
million for the FY2026 half year (1H FY2025 $2.34 million), down 90.9%. This represents undiluted
earnings per share of 1.46 cents. The key factor is a 34.5% drop in revenue, the result of minimal
business this year from what was the Company’s largest customer last year. Other factors affecting
first half earnings included some one-off revenue and one-off customer remediation costs although
these broadly netted out.
As usual, the first half of the financial year reflects a seasonal higher activity of customer jobs in the
New Zealand operations. First half earnings were also affected by the costs associated with SDL’s
development of its new nGAGE product for the UK and ultimately the global dental communications
market (all nGAGE costs are expensed, there is no capitalisation).
In the NZ print and mail house market, SDL’s print volume grew 1% although mail lodgements
declined 5%. This continues to be a reasonable result given the NZ market remains in structural
decline. The cumulative effect from several years of significant postage cost increase by NZ Post is
clearly affecting some of SDL’s customer behaviour. During the half year, several customers noted
they were looking to become more efficient with their communications programmes and improve
their usage of digital channels.
Cash flow from operations was -$0.77 million (1H FY2025 $5.19 million) with cash flow from trading
declining to $0.65 million. The closing net cash position at 31 December was $8.36 million (1H
FY2025 $12.41 million) with the decline resulting from working capital changes and payment for a
new mail inserter (circa $1.5 million) late in the half. Favourable working capital timing in the prior
period overstated the FY2025 underlying cash position – the FY2025 Annual Report released in
August 2025 noted the then underlying cash position was around $9-10 million.
The key activity in the first half was the successful development of nGAGE, with the MVP (minimum
viable product) built in approximately four months and showcased at a UK dental conference in
November 2025.
The Directors have declared an interim FY2026 dividend of 2.0 cents per share (1H FY2025 nil).

Solution Dynamics | 2025-26 Interim Report 5
Operational Commentary
Operating revenue declined 34.5% to $17.09 million. The fall was entirely from international revenue;
growth in New Zealand revenue was around 20%. While part of the New Zealand growth was
from increased pricing, the majority was from the pass through of higher NZ Post postage rates
(Outsourced Services revenue rose 36.9% to $8.18 million), which are very low margin and have
minimal effect on earnings.
SDL has maintained its leading market share for Council communications in NZ. The split out of
water infrastructure from Councils is creating sales opportunities; the Company already has New
Zealand’s largest Council-owned water utility as a customer. NZ sales efforts continue to focus on
“digital first” communications as part of a complete multi-channel communications approach. Email
volumes in New Zealand were 2.5% ahead of the prior year, reinforcing the migration to digital.
Internationally, we are seeing strong growth from Pitney Bowes (click-based SaaS revenue) and
gains from a legacy dental communications product (will be replaced by nGAGE).
SG&A (Selling, General and Administration) costs declined 26.6% year-on-year, following the
significant restructuring in late-2024/early-2025, partly offset by inflation-related rises in general
costs, plus modest increases in wage and salary costs.

6 Directors’ & Chief Executive Officer’s Report
Financial Performance
Earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 81.4% to $0.69
million (1H HY2025 $3.72 million) on sales revenue that fell 34.5%.
Summary Financial Performance
Yr-on-YrYr-on-Yr
(all figures $000)1H FY261H FY25$ Change% Change
Total Revenue17,09226,091-8,999-34.5%
Cost of Goods Sold12,50617,065-4,559-26.7%
Gross Profit4,5869,026-4,440-49.2%
Gross Margin (%)26.8%34.6%
Selling, General & Admin Costs3,8965,311-1,415-26.6%
EBITDA6903,715-3,025-81.4%
EBITDA Margin (%)4.0%14.2%
Depreciation456424327.5%
Amortisation3027311.1%
EBIT2043,264-3,060-93.8%
Net Interest Paid/(Rec’d)-63-62-11.6%
Net Profit before Tax2673,326-3,059-92.0%
Taxation53983-930-94.6%
Net Profit after Tax2142,343-2,129-90.9%
The EBITDA margin declined from 14.2% to 4.0% with the lower Gross Margin (26.8% from 34.6% the
prior year), the result of operating leverage on lower revenue as well as the increase in low margin
postage revenue in New Zealand.
SDL’s taxation rate in 1H FY2026 was 19.9% versus 29.6% in the prior period, with the lower rate the
result of R&D tax credits.
Revenue Analysis
Yr-on-YrYr-on-Yr
(all figures $000)1H FY261H FY25$ Change% Change
Software & Technology6,76817,671-10,903-61.7%
Digital Print & Document Handling2,1432,442-299-12.2%
Outsourced Services8,1815,9782,20336.9%
Total Revenue17,09226,091-8,999-34.5%

Solution Dynamics | 2025-26 Interim Report 7
Total revenue was down 34.5% on the prior year. Software and Technology revenue, which is mostly
in International, fell 61.7% to $6.77 million, the result of receiving only minimal revenue from the
prior year largest customer. Digital Print and Document Handling revenue, which is all in New
Zealand, declined 12.2% to $2.14 million reflecting flattish print volumes but lower mail lodgements
and a negative change in customer mix (more lower margin customer volumes). Outsourced
Services revenue, which is all in New Zealand, grew 36.9% to $8.18 million largely reflecting the
increase in postage rates by NZ Post.
Balance Sheet, Liquidity and Debt
SDL closed the half year with net cash on hand of $8.36 million, versus $12.41 million in 1H FY2025.
A bank overdraft facility of $0.2 million remains in place but is unused. Note the prior year cash
position unduly benefitted from working capital timing of receivables and payables.
Capital expenditure for the half year was around $1.5 million (negligible capex in 1H in the
prior financial year). SDL needed to upgrade mail inserter equipment (one new machine, one
refurbishment) after the supplier EOL’d (end of life) the current equipment (this was an industry-wide
issue). The cost of the new inserter equipment and the refurbishment accounted for almost all of
the capex for the half year.
Selected Balance Sheet and Cashflow
Figures
Yr-on-YrYr-on-Yr
(all figures $000)1H FY261H FY25$ Change% Change
Net Cash on Hand (net of debt)8,35512,405-4,050-32.6%
Non-current Assets (excl Right of Use)2,8551,675 1,180 70.4%
Right of Use Assets1,3961,431-35-2.4%
Net Other Liabilities (excl Lease Liabilities)-62-2,803 2,741 -97.8%
Lease Liabilities-1,417-1,45639-2.7%
Net Assets11,12711,252-125-1.1%
Cashflow from Trading6502,982-2,332-78.2%
Movement in Working Capital-1,416 2,206 -3,622n.m.%
Cash Inflow from Operations-7665,188-5,954n.m.%
Book value (net assets) decreased 1.1% to $11.13 million.

8 Directors’ & Chief Executive Officer’s Report
Dividend and Capital Management
Earnings per share was 90.8% lower at 1.5 cents.
The Directors have declared an interim dividend of 2.0 cents per share (fully imputed). Following
the requirement to upgrade inserter equipment, there are minimal near-term capital expenditure
requirements. SDL’s payout ratio (covering dividends and buybacks) is no longer constrained by the
co-funding from New Zealand Trade and Enterprise’s (NZTE) International Growth Fund (IGF). As
a result, the Directors intend to fully pay out earnings as dividends and, subject to no acquisition
activity, continue to utilise excess cash in buying back stock. SDL is sensitive to the price it pays in
buying back stock to ensure any stock re-purchases are value accretive to the Company.
During the half, SDL bought back 38.3k shares. For much of the period, the Company was holding
potentially material inside information and was unable to undertake any on-market share buyback
activity.
Earnings and Dividend per Share
Yr-on-YrYr-on-Yr
1H FY261H FY25Change% Change
Shares on Issue (000)14,681.514,719.8-38.3-0.3%
Earnings per share (cents)1.4615.92-14.46-90.8%
Dividend per share (cents)2.00.02.0n.a.
Dividend proportion Imputed100.0%n.a.n.a.n.a.
Payout ratio (on NPAT)137.2%n.a.n.a.n.a.
While SDL has a strong net cash position, the Directors continue to maintain a preference for
financial flexibility. The Company continues to review possible acquisition opportunities and
emphasises that any transaction must add shareholder value.

Solution Dynamics | 2025-26 Interim Report 9
Governance and Management
SDL’s CEO, Pat Brand, stepped down from the CEO role at end December 2025 due to ongoing family
medical issues.
Pat made a significant contribution in steering the Company through COVID, and continuing Nelson
Siva’s legacy of transitioning SDL from a print/mail house towards an increasingly software-oriented
organisation. Pat played an instrumental role in re-aligning the cost structure post the major
customer RFP process in late 2024, plus leading the development of the nGAGE product.
Pat has key customer relationships and market knowledge in the US. From 1 January 2026 he
joined SDL’s Board of Directors with a particular emphasis on providing strategic input and support
to international product and customer initiatives internationally that are critical to the Company’s
growth prospects.
SDL’s CFO, Susie Watts, assumed the role of Acting CEO from 1 January 2026 with executive
support continuing from Board Chair John McMahon and other directors as needed.
nGAGE
nGAGE is SDL’s AI driven growth platform for dental groups. It connects natively to Dentally, a dental
practice management software package, to automate targeted patient communications that aims
to improve dental chair utilisation, reactivate lapsed patients, reduce no shows, and cross sell
treatments – while providing analytics about the return on each marketing campaign.
Development commenced in early August 2025, with the MVP delivered in time for successful
demonstration at the November UK dental conference that generated strong interest. Following
this, one prospect committed to serving as the pilot customer, enabling nGAGE to be trialled
across several of its practice sites from mid December. The pilot progressed successfully, with the
customer going live in February 2026, and nGAGE is now set for a phased rollout across all 18 of the
customer’s dental sites.
nGAGE leverages rich dental patient data to drive measurable practice growth and strengthen
ongoing patient engagement and retention. As a material upgrade on SDL’s prior dental solution,
nGAGE delivers essential marketing capabilities that core practice management systems do
not provide. It is tightly integrated with Dentally patient information, enabling precise, targeted
campaigns powered by built in AI. The AI engine supports campaign creation, patient analysis, cross
sell identification, operational queries, and continuous performance feedback.
AI supports nGAGE across multiple dimensions, including analysing patient data to recommend
targeted campaigns for specific treatments and lapsed patients, resolving operational and support
queries, providing campaign performance insights, identifying cross sell opportunities, and
monitoring key practice metrics.
For further product details, refer to https://solutiondynamics.com/ngage-ai

10 Directors’ & Chief Executive Officer’s Report
The data architecture underlying nGAGE means it can be utilised in vertical markets aside from
dental, although the UK dental market is where SDL’s initial sales focus will be applied over 2026.
Importantly, this is the first software solution SDL has provided that is not enterprise focused. It is
an “out of the box” solution with the ability to scale beyond a single customer.
Strategy
SDL’s strategy remains a “Digital First” approach to customer communications software and
services, along with seeking further efficiency gains in New Zealand operations to maintain
commercial viability in a declining market.
The near-term focus for FY2026 and into FY2027 is:
1. Improving operational efficiency, building on the earlier restructuring, and increasing internal
work flow automation.
2. Sales efforts locally aimed at building on SDL’s strong position in the Councils’ sector by
targeting the water spin-off entities from Councils, along with sales efforts into Australian
Councils in conjunction with an Australian print partner.
3. nGAGE is SDL’s first product with AI designed and built in from day one. It leverages AI to
improve our customers’ ability to deliver targeted and effective marketing campaigns. The
crucial near-term international sales efforts are with nGAGE in the UK, to prove out the extent of
customer demand and sales pipeline conversion rates. nGAGE has broader application beyond
the UK dental market; in addition to dental markets in other countries, its architecture allows it
to deliver communications solutions to a range of verticals.
FY 2026 Outlook
Trading conditions are mixed. International performance remains robust, with strong activity from
existing customers in the US and UK.
The New Zealand market, however, is facing growing pressure as significant increases in postage
rates continue to be implemented by NZ Post – standard retail mail postage price rose 26% at
the end of FY2025, on top of a 15% increase the prior year. These increases are driving customers
toward digital channels at an accelerated pace. This faster than expected transition is compressing
gross margins, as digital communications generate lower margins than traditional print. Everything
that can digitise, will digitise, especially transactional mail. The effect on marketing-related
communications seems less pronounced given the “digital overload” into mobile phones and email
inboxes. This trend may result in SDL continuing to gain market share, especially in traditional print-
heavy customers who require an omni-channel solution but want to progressively move towards
digital. However, this will also mean ongoing pressure on earnings from New Zealand operations.
Opportunities with Australian councils, in New Zealand from the externalisation of Council water
infrastructure and billing, along with the UK launch of nGAGE are expected to support future growth
although these are unlikely to be meaningful contributors to FY2026 results.

Solution Dynamics | 2025-26 Interim Report 11
nGAGE is likely to have a short term earnings drag through 2026 as customer uptake builds,
reflecting continued investment in scaling the platform.
nGAGE has already secured its first corporate dental group customer and this converted from trial
phase to full onboarding as a customer in early 2H. A second corporate group with more than 40
practice sites has also now signed up for phased rollout across its network. As previously noted, the
opportunity pipeline for nGAGE is substantial, although the conversion rate and time from pipeline
to customer is variable at this early stage. While nGAGE will incur additional (unbudgeted) costs
over the second half of FY2026, the Company views it as a meaningful long term value driver, with
strong revenue and earnings potential. To accelerate this opportunity, the Company is investing in
continued product development, market launch and commercial scale up – beginning in the UK and
likely to progress into the US and Australia/NZ.
While SDL’s second half of the financial year is typically seasonally weaker than the first, a modest
profit is expected in 2H FY2026. SDL is maintaining its guidance range for an FY2026 profit in the
range of $0.1 million to $0.6 million.
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 given SDL’s operations in the US and UK.

Consolidated Interim
Financial Statements

14 Consolidated Interim Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
(unaudited)
For the six months ended 31 December 2025
6 Months Ended
31 Dec 2025
$000
6 Months Ended
31 Dec 2024
$000
Year Ended
30 Jun 2025
Audited
$000
Revenue from contracts with customers17,01825,94540,919
Other income74146405
Total Revenue and Income17,09226,09141,324
Changes in inventories of finished goods and
work in progress
4,00814,02120,766
Raw materials and consumables used8,4813,0476,272
Employee benefit expenses2,1383,5816,935
Other expenses1,7751,7272,905
Earnings before Interest, Tax, Depreciation
& Amortisation (EBITDA)6903,7154,446
Depreciation456424861
Amortisation302760
Finance Costs455294
Finance Income(108)(114)(217)
Net Finance costs/(income)(63)(62)(123)
Profit before Income Tax2673,3263,648
Income Tax539831,029
Net Profit after Income Tax2142,3432,619
Other Comprehensive Income
Items that may be reclassified subsequently
to profit and loss:
Exchange gain/(loss) on translation of
foreign operations
5523986
Other Comprehensive Gain/(Loss) Net of Tax5523986
Total Comprehensive Income for the Year2692,5822,705
Earnings per Share – Net Profit after TaxCentsCentsCents
Basic earnings per share1.515.917.8
Diluted earnings per share1.415.317.8
The accompanying notes form an integral part of these consolidated interim financial statements.

Solution Dynamics | 2025-26 Interim Report 15
Consolidated Statement of Changes In Equity (unaudited)
For the six months ended 31 December 2025
Share
Capital
$000
Employee
Share Option
Plan
$000
Foreign
Currency
Translation
Reserve
$000
Accumulated
Profit
$000
Total
Equity
$000
Balance 1 July 2024 5,574 166 21 3,241 9,002
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 loss --239-239
Total Comprehensive Income--2392,3432,582
Balance 31 December 20245,5742022605,21611,252
Balance 1 July 2024 5,574 166 21 3,241 9,002
Lapse of share options to
employees
-(14)--(14)
Share Buybacks(9)---(9)
Dividends paid---(368)(368)
Transactions with Owners(9)(14)-(368)(391)
Profit for the period after tax---2,6192,619
Other comprehensive income--86-86
Total Comprehensive Income--862,6192,705
Balance 30 June 2025 (audited) 5,565 152 107 5,492 11,316
Share Buybacks(17)---(17)
Dividends paid---(441)(441)
Transactions with Owners(17)--(441)(458)
Profit for the period after tax---214214
Other comprehensive income--55-55
Total Comprehensive Income--55214 269
Balance 31 December 2025
(unaudited)5,548 152 162 5,265 11,127
The accompanying notes form an integral part of these consolidated interim financial statements.

16 Consolidated Interim Financial Statements
Consolidated Statement of Financial Position (unaudited)
As at 31 December 2025
As at
31 Dec 2025
$000
As at
31 Dec 2024
$000
As at
30 Jun 2025
Audited
$000
Current Assets
Cash and cash equivalents5,3559,4056,693
Short-term cash deposits3,0003,0004,500
Trade & other receivables3,2752,6593,754
Inventories499506329
Prepayments357294578
Total Current Assets12,48615,86415,854
Current Liabilities
Trade and other payables2,8314,3474,101
Provision for taxation63798682
Deferred contract revenue338186407
Lease liability735735735
Employee benefit liabilities705734693
Total Current Liabilities4,6726,8006,618
Working Capital7,8149,0649,236
Non-Current Assets
Property, plant & equipment1,459220220
Right of use assets1,3961,4311,354
Goodwill & intangible assets1,1511,2291,181
Deferred tax benefit245226245
Total Non-Current Assets4,2513,1063,000
Continued on the next page ...
The accompanying notes form an integral part of these consolidated interim financial statements.

Solution Dynamics | 2025-26 Interim Report 17
Consolidated Statement of Financial Position (unaudited)
As at 31 December 2025
As at
31 Dec 2025
$000
As at
31 Dec 2024
$000
As at
30 Jun 2025
Audited
$000
Non-Current Liabilities
Lease liability682721652
Long-term Employee benefit
liabilities
256197268
Total Non-Current Liabilities 938 918920
Net Assets11,12711,25211,316
Equity
Share Capital5,5485,5745,565
Employee share option plan152202152
Foreign currency translation
reserve
162260107
Accumulated profit5,2655,2165,492
Total Equity11,12711,25211,316
For and on behalf of the Board who approved these financial statements for issue on 26 February 2026.
For and on behalf of the Board
John McMahon – Director (Chair)
Date: 26 February 2026
Andy Preece – Director
(Chair of Audit & Risk)
The accompanying notes form an integral part of these consolidated interim financial statements.

18 Consolidated Interim Financial Statements
Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2025
6 Months to
31 Dec 2025
$000
6 Months to
31 Dec 2024
$000
Year to
30 Jun 2025
Audited
$000
Cash Flow from Operating Activities
Cash was provided from:
Receipts from customers19,82629,04344,911
Other income74146405
19,90029,18945,316
Cash was applied to:
Payments to suppliers19,13422,69539,989
Income tax paid672983628
GST and VAT paid/(received)860323406
20,66624,00141,023
Net Cash Inflow/(Outflow) from
Operating Activities
(766)5,1884,293
Cash Flow from Investing Activities
Cash was applied to:
Transfer to short-term cash deposits3,000 3,000 4,500
Purchase of property, plant & equipment
& capital works in progress
1,3091865
4,3093,0184,565
Cash was provided from:
Interest received108114217
Transfer from short-term cash deposits4,500 3,000 3,000
4,6083,1143,217
Net Cash Inflow/(Outflow) from
Investing Activities
299 96 (1,348)
Continued on the next page ...
The accompanying notes form an integral part of these consolidated interim financial statements.

Solution Dynamics | 2025-26 Interim Report 19
Consolidated Statement of Cash Flow (unaudited)
For the six months ended 31 December 2025
6 Months to
31 Dec 2025
$000
6 Months to
31 Dec 2024
$000
Year to
30 Jun 2025
Audited
$000
Cash Flow from Financing Activities
Cash was applied to:
Payment of dividends441368368
Share buy backs17-9
Interest Paid455294
Lease liability payments368409731
8718291202
Net Cash Outflow from Financing
Activities
(871)(829)(1,202)
Net Change in Cash and Cash
Equivalents
(1,338)4,4551,743
Add cash & cash equivalents held
at beginning of year
6,6934,9504,950
Cash and Cash Equivalents at End
of Year5,3559,4056,693
Reconciliation of net surplus after income tax for the year with net cash inflow from operating
activities
Net surplus after income tax2142,3432,619
Interest expense (reclassified as
financing activities)
45 52 94
Interest (income) (reclassified as
financing activities)
(108)(114)(217)
Add non-cash items:
Depreciation & Amortisation of
assets
486451921
Gain/(loss) on foreign exchange15 (25)(191)
Other non-cash items(2)275275
Cash Flow from Trading6502,9823,501
Add movements in Working Capital(1,416)2,206792
Net Cash Inflow from Operating
Activities
(766)5,1884,293
The accompanying notes form an integral part of these consolidated interim financial statements.

20 Consolidated Interim Financial Statements
Notes to the Financial Statement (unaudited)
For the six months ended 31 December 2025
1. Corporate Information
Basis of Preparation
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 2025 were authorised for issue in accordance
with a resolution of directors on 26 February 2026.
These unaudited interim financial statements are for the six months ended 31 December 2025
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 2025. The same accounting policies and
methods of computation are followed in the interim financial statements as compared with the
most recent annual financial statements for the year ended 30 June 2025.
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
20252024
Solution Dynamics
International Limited
United Kingdom100%100%
Solution Dynamics
Incorporated
United States of America 100%100%
Déjar International Limited New Zealand100%100%
Solution Dynamics
Australia Pty Ltd Australia100%n.a
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.

Solution Dynamics | 2025-26 Interim Report 21
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 and to align with the annual financial statements, the Group has
made a number of reclassifications to the interim Financial Statements in the current period.
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 2025.
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
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.

22 Consolidated Interim Financial Statements
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.

Solution Dynamics | 2025-26 Interim Report 23
An overhead structure including sales, marketing and administration departments provides services
for all of the above revenue streams.
Revenue from contracts with customers
2025 1HDigital Printing &
Document Services
Outsourced
Services
Digital Software
& Technology
Total
Revenue recognised
over time
2,1437,6946,29316,130
Revenue recognised at
a point in time
- 487401888
Total2,1438,1816,69417,018
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
Other income
6 Months Ended
31 Dec 2025
6 Months Ended
31 Dec 2024
Year Ended 30 Jun
2025 Audited
Government grant income67121214
Other Income725191
Total Other Income74146405
3.2 Other Estimates
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.

24 Consolidated Interim Financial Statements
4. Segment Information
Segment Assets
Assets are not segmented between service streams.
Information about major customers
Included in revenue from customer contracts of $17.02 million (2024: $25.95 million) are service
revenues of $3.29 million (2024: $12.03 million) which arose from sales to the Company’s largest
customer.
Included in revenue from customer contracts of $17.02 million (2024: $25.95 million) are service
revenues of $7.92 million (2024: $16.83 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
2025
6 Months
to 31 Dec
2024
Year to
30 June
2025
As at
31 Dec
2025
As at
31 Dec
2024
As at
30 June
2025
New Zealand11,6929,75419,7774,2443,0962,994
Australia571551 1,155 ---
United States
of America
2,09713,55615,467222
Europe2,6582,0844,520584
Total17,01825,94540,9194,2513,1063,000
5. Cash & Cash Equivalents
As at
31 Dec
2025
As at
31 Dec
2024
As at
30 June
2025 Audited
Cash at bank5,3559,4056,693
Total Cash and Cash Equivalents5,3559,4056,693
Interest rates on cash and cash equivalents:
Cash at bank 0.90% - 1.60% (2024: 2.50% - 4.80%)

Solution Dynamics | 2025-26 Interim Report 25
Solution Dynamics has a $200,000 overdraft facility in place with the ANZ Bank at an interest rate
of 7.85% p.a. (2024: 14.35%). This facility, which was unused as at 31 December 2025, 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
2025
As at
31 Dec
2024
As at
30 June
2025 Audited
Short-term deposits (less than 6 months maturity)3,0003,0004,500
Total Short-Term Deposits3,0003,0004,500
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 3.31% – 4.18% (2024: 4.04% - 5.91%).
As at 31 December 2025 the ANZ Bank has imposed no financial covenants to secure the existing
facilities. The Group holds a net cash position with no bank debt (2024: $Nil).
As at 31 December 2025 SDL provided commercial guarantees totaling $64,500 (2024: $64,500)
to the Group’s suppliers.
7. Share Capital & Share-based Payments
The Company had 14,681,492 (2024: 14,719,810) ordinary shares on issue at 31 December 2025. 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.

26 Consolidated Interim Financial Statements
Solution Dynamics Limited offers an equity settled employee share option plan. The general
principles of the scheme are:
• 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 2025
As at
31 Dec 2024
As at
30 Jun 2025
Shares Issued and Fully Paid:
• Balance at the beginning of the period14,70614,72014,720
• Share Buyback(25)-(14)
Total Shares Authorised at the end of the Period14,68114,72014,706
31 Dec 2025
Number of Options
31 Dec 2024
Number of Options
Outstanding options at the beginning of the
period
333593
Granted--
Outstanding options at the end of the period333593
Percentage of total ordinary shares2.27%3.90%
Grant DateOptions
Issued
Share Price
at Grant Date
Exercise
Price
Options ExpireOption Value
$
February 2022172,796$2.90$2.90August 2026$29,994
October 2022160,000$2.25$2.25October 2027$49,502
Options granted during the period were nil (2024: nil). Share options were approved for 160,000
shares for two key members in 2022 (with an exercise price of $2.25), both remain as employees at
31 December 2025 bringing the total of share options to 332,796.

Solution Dynamics | 2025-26 Interim Report 27
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 2025 to 31 December 2025 were as follows:
Key management were paid $1,289,273 (as employees of Solution Dynamics Limited) during the
period (2024: $1,243,648) and were owed $276,311 including annual leave, (2024: $185,714).
9. Events after the Balance Date
The directors approved the payment of a fully imputed interim dividend of 2.0 cents per share,
amounting to $293,630 (2024: There were no significant events after balance date).

28 Company Directory
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
Patrick Brand – Appointed 1st January 2026
Company Officers
Patrick Brand
CEO (Stepped down 31 December 2025)
Suzanne Watts
CFO & Company Secretary
Acting CEO (Appointed 1 January 2026)
Auditors
Baker Tilly Staples Rodway Auckland
Level 12, 23-29 Albert 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

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

---

Distribution Notice

Updated as 26 February 2026
Restricted



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 24/03/2026
Ex-Date (one business day before the
Record Date)
23/03/2026
Payment date (and allotment date for
DRP)
13/04/2025
Total monies associated with the
distribution
1

$293,629.84 (14,681,492 shares @$0.02000000/share)
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.02777778
Gross taxable amount
3
$0.02777778
Total cash distribution
4
$ 0.02000000
Excluded amount (applicable to listed
PIEs)
$ n/a
Supplementary distribution amount $ n/a
Section 3: Imputation credits and Resident Withholding Tax
5


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.
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.

Restricted
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
$ 0.00777778
Resident Withholding Tax per
financial product
$ 0.00138889
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 5249103
Contact email address susiewa@solutiondynamics.com
Date of release through MAP

26/02/2026








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 31 December 2025
Previous Reporting Period 6 months to 31 December 2024
Currency New Zealand Dollar
Amount (000s) Percentage change
Revenue from continuing
operations
$17,092 -34.5%
Total Revenue $17,092 -34.5%
Net profit/(loss) from
continuing operations
$214 -90.9%
Total net profit/(loss) $214 -90.9%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.02000000
Imputed amount per Quoted
Equity Security
$0.00777778
Record Date 24/03/2026
Dividend Payment Date 13/04/2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$ 0.679494972 $ 0.680919115
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the Management Analysis and Commentary Report in
the attached Financial Statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Susie Watts, Company Secretary
Contact person for this
announcement
Susie Watts
Contact phone number +64 9 5249103
Contact email address Susiewa@solutiondynamics.com

Date of release through MAP 26 February 2026

Audited financial statements accompany this announcement.