SDL 2026 Annual Shareholder Meeting

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com



Solution Dynamics Annual Shareholder Meeting 22 October 2026

FY2026 Overview
The Company had a demanding year in FY2026 following the late FY2025 significant
restructuring that saw a material reduction in costs, notably from lower staffing levels. This
did result in a number of operational challenges in the first half of FY2026, however, the
changes were well bedded down by the end of the first half.
I’d like to give particular thanks to all SDL’s staff, who stepped up through that challenging
period of change and helped ensure the Company remained profitable and provided
ongoing strong levels of customer service.
Additionally, SDL’s CEO, Patrick Brand, was unable to continue in the role due to family
health issues, with Susie Watts stepping into the CEO role from 1 January 2026. On behalf
of the Board I’d like to reiterate our thanks to Pat for his significant contributions in helping
steer SDL 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 loss in
FY2025, plus leading the development of the nGAGE product.
The Directors asked Pat to join the Board to assist with continuity of key offshore
relationships he holds, as well as provide strategic input and support to international
products and customer initiatives that are key to future growth prospects.
Susie Watts was recently confirmed from Acting to permanent CEO.
Susie notes Pat’s leadership has been foundational to growth of the Company’s
international business. Pat’s deep knowledge of the US market and his strong client
relationships remain an important asset to SDL to strategic execution.
Part of Susie’s career was in the IT and software sectors, helping grow technology
companies ranging from early-stage start-ups to global enterprises. She brings commercial
drive backed by strong governance expertise, to execute SDL’s strategy with discipline and
clear priorities, which will deliver sustainable growth and value for shareholders.
Susie acknowledges that SDL continues to face a range of challenges, particularly the
systemic decline of physical mail volumes. Challenge, however, also reveals the true
determination of an organisation. Since taking on the role, her absolute focus has been on
driving necessary changes across the Company to ensure SDL is actively engaged with all
clients to grow revenue and optimise margin, and also that the Company remains agile with
expense control at all times.
Susie emphaises how much the leadership team, and indeed all staff within our Company,
have risen to these challenges. Through their dedication and capability, they are delivering
a business that continues to evolve, and one that is leaner, sharper, and fundamentally
stronger. She particularly thanks the staff, Board and the Company’s customers for their
support and looks forward to improved performance.

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com


SDL’s core business showed resilience with revenue from our top ten customers rising 11%,
albeit the increase for New Zealand customers was the result of higher low-margin postage
rates. Digital revenue grew with US click volumes up 19%, supported by our strong
partnership with Pitney Bowes. New work has been secured from key local authority
accounts, and SDL is well placed with the new Council-owned water entities as they
establish their own billing systems. SDL is the leader in the local authority market, a
position that has and continues to be well earned by our local teams. The evolution of
customers’ demand sees for the first time in SDL’s history the volume of emails we send on
behalf of our customers outnumbering physical mail.
While expenses were aggressively reduced by24%, systems and processes were maintained
and enhanced.
Following the launch of nGAGE for the UK dental market earlier in 2026, the Company’s
ongoing digital innovation saw the recent launch of nGAGE Transact, our new bundled
offering for Australia and New Zealand. This solution bridges our past and our future –
combining two decades of trusted expertise in transactional communications such as
invoicing and billing, facilitated by nGAGE’s cutting-edge, AI-driven engagement technology.
This is the type of product innovation that will shape the business over the next two years.
SDL has a robust growth strategy, an exceptionally strong balance sheet, and teams that
have the detailed knowledge and experience required to succeed; we know how to execute
under pressure.
There are a couple of points to note about SDL’s FY2026 financials. The first is the effect on
profit from developing and launching nGAGE. This had a negative pre-tax earnings impact
of around $0.5 million for the part-year cost of UK staff, customer support, marketing and
travel, but excluding development costs by New Zealand-based staff. No costs were
capitalised, everything was expensed. nGAGE only launched mid second half and
consequently saw minimal revenue in FY2026.
The second is SDL’s balance sheet, particularly the net cash position that closed FY2026 at
$7.7 million, following the requirement to spend $1.3 million replacing end-of-life inserter
equipment. This cash position provides the Board the ability to consider a range of options
for growth, and we will consider all options, although at this point the focus is on buying
back shares. During FY2026, almost 0.5 million shares were acquired at an average price of
$0.60 per share. The Directors view this as not only assisting with trading liquidity on the
share market, but also as value accretive for all shareholders.

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com


FY2026 key result metrics
The numbers tell the story of how difficult the year was. The revenue and gross profit
reductions were too great to be offset from reducing SG&A costs, resulting in earnings that
fell 85%, noting prior comments that the development and launch of nGAGE had a negative
pre-tax effect of around $0.5 million.

Key result metrics ($figures are ’000) FY26 FY25 Growth Y/Y CAGR
(5-yr)
Total Revenue 34,145 41,324 -24.0% -2.4%
Digital Print & Outsourced 17,897 17,198 4.1% 10.6%
Software & Technology 13,158 24,126 -44.0% -11.3%

Gross Profit 8,636 14,286 -39.5% -8.5%
Gross Margin 27.5% 34.6%
SG&A expenses 7,503 9,840 -23.8% -4.2%

EBITDA
(a)
1,133 4,446 -74.5% -23.1%
EBITDA Margin 3.6% 10.8%

Net Profit after Tax 382 2,619 -85.4% -28.4%

Earnings per share (cents) 2.7 17.8 -84.9% -28.0%
Dividends per share (cents) 4.0 3.0 33.3% -18.3%

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

The dividend was increased to 4.0 cents per share, fully imputed, noting that the dividend
payout ratio in the prior year was well below the normal payout ratio as a result of caution
about the outlook for FY2026.

NZ Mailhouse
SDL’s domestic business saw revenue up around 4%, however mail lodgements declined
11%, meaning the revenue gain was from an increase in low-margin postage revenue. NZ
Post raised postage prices 15% at the start of FY2026 (a further 24% at the start of FY2027).
These ongoing levels of price rise are increasing focus on the cost of physical mail,
consequently, digitisation will continue although SDL sees most of its customers having a
rump of customers that continue to require physical communications.
The digital first sales approach is now being driven by nGAGE Transact which provides
improved functionality and usability for customers to self-manage and customise the
content in their communications.
FY2026 saw ongoing cost reductions from improvements in staffing levels and operational
efficiency. There are further gains to come over FY2027.

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com


The Councils’ market remains a source of growth, with both additional work from
outsourcing of what was in-house print, albeit this is tempered by ongoing digitisation, and
initial work for Council-owned water entities, although most of the newly-formed ones have
yet to formally implement ERP and billing systems. SDL is well-positioned given it is the
long-term supplier to New Zealand’s largest Council-owned water organisation.
AI usage and embedding continues to improve. It has matured in SDL’s software
development and is progressively being introduced across workflows such as customer
service although still in the early stages

Strategy: Dental marketing software
nGAGE integrates with the leading (estimated over 80% market share) dental practice
management software system in the UK. nGAGE utilises existing patient information, with
AI assistance, to create and send highly targeted marketing campaigns. SDL has a wide
range of campaign templates, along with an easy-to-use template builder allowing dental
practices to customise or create bespoke campaign templates.
nGAGE then integrates back with the practice management system to track the results of
campaigns and provide ROI (return on investment) analysis of campaign effectiveness.
See a brief video covering key nGAGE features at: video link
For nGAGE details and functionality see the dedicated website at: https://n-gage.ai

Strategy: Dental marketing software
The UK dental market has an estimated 12,000 practice sites. SDL estimates the leading
practice management software supplier has around 8,000 to 10,000 practice sites utilising
its software although most are currently using the older, on-prem software solution rather
than the cloud-based software solution that nGAGE integrates into. The on-prem solution is
expected to phase out over the coming years and practices will move to the cloud solution.
nGAGE operates a revenue share model with the software supplier.
Since starting to market and sell the product in Q2 2026, there are now around 170 sites
signed up for nGAGE with a strong pipeline. There are currently around 68 sites fully
onboarded with a number of customers running 2-3-month trials to prove up the ROI
metric, create appropriate marketing templates and ensure full integration with their
patient data.
The Company is in discussion with several corporate dental groups that own multiple (50 to
over 200) practice sites noting that these enterprise customers are expected to require
longer sales cycles.
SDL has reached agreement with the software supplier to begin marketing nGAGE to
customers in Australia and New Zealand. SDL in discussions with an initial practice for trial.
nGAGE is the first software solution SDL has provided that is not enterprise focused. It has
the ability to scale beyond a single customer problem/solution with the data architecture
designed to be utilised beyond the dental market. SDL is currently in contract negotiations
with two non-dental opportunities in New Zealand for nGAGE Transact.

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com



FY2027 Outlook
The mail volume structural headwind from significantly higher postage costs continues to
present challenges for physical volumes from existing customers. SDL is at least partly
offsetting this erosion through increasing market share, a combination of new customers
and increases in volumes from some existing customers outsourcing what was previously in-
house print. New customers in New Zealand are spread across the Council and new-water
entities, plus new opportunities with nGAGE Transact.
SDL is reviewing its New Zealand print equipment configuration and expects changes in 2H
that should lower the cost of mail production. Additionally, further staff restructuring in 1H
has lowered costs for customer service and production. A premises lease break point in
2027 should enable a sizeable drop in rent expense although this is unlikely to affect FY2027
earnings.
Technology operations continue to mature with most of SDL’s operations now in the Cloud
and a steady increase in AI adoption across the Company although there is further effort
required to mature SDL’s AI usage.
Internationally, Pitney Bowes volumes are continuing to increase and there are new market
segments Pitney Bowes is chasing that could further benefit SDL volumes. The main focus
for international revenue gains is the UK dental market with nGAGE. The UK dental pipeline
is strong, and SDL has a well-differentiated product that is seeing good market recognition.
The key nGAGE factor for the FY2027 outcome will be the pace of conversion, from timing
of customer onboarding along with the extent of trials that some customers, especially the
larger corporate groups of practices, are seeking.
While SDL’s share price remains modestly ahead of cash backing per share, the Directors
intend to continue with the share buyback. The buyback is capped under legislation at 5%
of outstanding shares on issue and a shareholder resolution later in the meeting, if passed,
will increase this buyback capacity to 20% of shares outstanding. The buyback remains
subject to no constraints such as trading blackout windows or holding material, non-public
information. The Directors reiterate that all options for shareholder value remain on the
table.
SDL is maintaining its FY2027 guidance range of $0.4 to $1.0 million. While underlying
trading is modestly behind budget for the first three months, the opportunity pipeline is
strong, so much will turn on conversion of pipeline and then timing around when new
business comes on and converts to revenue.
nGAGE dental in the UK is expected to continue building on its FY2026 success although
FY2027 will see a full year of UK costs so the negative effect on earnings is expected to be
similar to FY2026.
The Company believes, based on early feedback, that nGAGE has broader potential, both
with existing SDL New Zealand customers and in other vertical markets. Expanding the
opportunity pipeline for nGAGE is a priority over FY2027 although there is unlikely to be
other than modest revenue contribution (outside of the dental sector) and new vertical
market development may incur additional costs.

Postal Address
Solution Dynamics Limited
PO Box 301248, Albany
Auckland 0752, New Zealand

Physical Address
18 Canaveral Drive
Rosedale, Albany
Auckland 0632

Contact
Phone: +64 9 970 7700
Email: info@solutiondynamics.com
Web: www.solutiondynamics.com


SDL’s earnings guidance is reiterated, noting the usual risks and caveats apply with the
global geopolitical and macroeconomic environment, in particular, likely to provide ongoing
headwinds.

---

Solution Dynamics Limited
Annual ShareholderMeeting, 22October2026

This presentation has been prepared by Solution Dynamics Limited (SDL) for informational purposes. This disclaimer applies to this document and the verbal or
written comments of any person presenting it. This presentation dated 22 October 2026 should be read in conjunction with, and subject to, the explanations
and views of future outlook on market conditions, earnings and activities given in the FY2026 Annual Report (together with management commentary)
published on 27 August 2026.
In parts of this presentation, SDL has presented certain financial information exclusive of the impact of significant items. A number of non-GAAP financial
measures are used in this presentation which are used by management to assess the performance of the business and have been derived from SDL’s financial
statements for the 12 months ended 30 June 2026. You should not consider any of these statements in isolation from, or as a substitute for the information
provided in the financial statements for the 12 months ended 30 June 2026.
The information in this presentation has been prepared by SDL with due care and attention, however, neither SDL nor any of its directors, employees,
shareholders, nor any other person gives any representations or warranties (either express or implied) as to the accuracy or completeness of the information
and to the maximum extent permitted by law, no such person shall have any liability whatsoever to any person for any loss (including, without limitation, arising
from any fault or negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain forward-looking statements, that is statements related to future, not past, events or other matters. Forward-looking statements
may include statements regarding our intent, belief or current expectations in connection with our future operating or financialperformance, or market
conditions. Such forward-looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks and
uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances. There is no assurance that results
contemplated in any of these projections and forward-looking statements will be realised. Actual results may differ materially from those projected. Except as
required by law, or the NZX Listing Rules, no person is under any obligation to update this presentation at any time after its release or to provide further
information about SDL
.
The information in this presentation does not constitute financial product, legal, financial, investment, tax or any other advice or a recommendation.
2
I m p o r t a n t I n f o r m a t i o n a n d D i s c l a i m e r

•Meeting open: Voting and Questions procedures
•FY2026 review
•FY2026 key result metrics
•NZ Mailhouseoperations
•Strategy: Dental marketing software
•FY2027 Outlook
•Formal business of the meeting, including resolutions:
•to re-elect John McMahon
•to elect Patrick Brand
•to fix Auditor’s remuneration
•to authorisean increase in the size of the current share buyback programme
•General business and Questions
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A g e n d a

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O n l i n e v o t i n g p r o c e s s

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O n l i n e q u e s t i o n s p r o c e s s

•Difficult year following major customer RFP contract loss
•significant gross profit decline partly offset by material reduction in SG&A expense
•Leadership changes: Pat Brand resigning as CEO and joining Board, Susie Watts appointed CEO
•Revenue growth of 11% in top 10 customers (excl RFP customer)
•more gains in NZ Councils’ revenue
•SDL mail volumes declined further (-11%), exacerbated by ongoing material increases in postage from NZ Post
•international growth from Pitney Bowes which saw strong increase (+19%) in click volumes
•Successful developmentand launch of nGAGE into the UK dental market
•pre-tax earnings impact from UK staffing, marketing and launch costs, around $0.5 million
•NormalisedFY2026 cash on balance sheet around $7-8 million (approx50 to 55cps)
•FY2026 capex of $1.3 million to replace inserter equipment that was end of life
•bought back 0.49 million shares in FY2026 at average price of $0.60/share
•Board remains open toall options to improveshareholder returns; currently focused on share buyback
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F Y 2 0 2 6 r e v i e w

Five-Yr CAGRGrowthY/YFY25FY26Financial Metrics ($000)
-2.4%-24.0%41,32431,415TotalRevenue
10.6%4.1%17,19817,897Digital Print & Outsourced
-11.3%-44.0%24,12613,518Software & Technology
-8.5%-39.5%14,2868,636Gross Profit
34.6%27.5%Gross Margin
-4.2%-23.8%9,8407,503SG&A expenses
-23.1%-74.5%4,4461,133EBITDA
(a)
10.8%3.6%EBITDA Margin
-28.4%-85.4%2,619382Net Profit after Tax
-28.0%-84.9%17.82.7Earnings per share (cents)
-18.3%33.3%3.04.0Dividends per share (cents)
(a) EBITDA is a non-GAAP earnings figure that equity analysts tend to focus on for comparable company performance analysis. The Company considers that it is a useful financial indicator because it avoids the distortions
caused by the differences in amortisation and impairment policies.
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F Y 2 0 2 6 k e y r e s u l t m e t r i c s

•domestic services mail revenue up 4.1% but mail lodgementsdown 11%; all gain from higher postage
•NZ Post postage prices rose 15% at start of FY2026 (and a further 24% from start FY2027)
•expect further digitisation, albeit with a tail of customers still requiring print
•SDL’s email volumes now exceed print volumes
•domestic sales efforts lead with “Digital First” approach
•seeing early interest in utilisingnGAGEfunctionality across a range of existing and potential new customers
•cost out efforts from operational and staff efficiency improvements over FY2026
•additional gains to come from rationalisingprint equipment configuration and reducing premises footprint
•gained further Council customers, additional outsourcing work from some existing Council customers
and initial work for new Council-owned water entities
•AI internal usage across software life cycle seeing productivity gains, progressively building AI
functionality into nGAGE, and exploring AI assistance for customer service functionality
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N Z M a i l h o u s e

S t r a t e g y : D e n t a l m a r k e t i n g s o f t w a r e
•core nGAGEfunctionality for dental practices includes targeted marketing campaigns
•core, practice-customisedtemplates, or bespoke templates with AI-assisted patient selection
•integration with practice management software provides ROI tracking of campaign effectiveness
•video overview of nGAGE–video
•see dedicated nGAGEwebsite –website–for more detailed functionality
9

S t r a t e g y : D e n t a l m a r k e t i n g s o f t w a r e
•initial target is UK market aligned with a leading dental practice software supplier’s product
•TAM (total addressable market) circa 12k dental practices, SOM (serviceable obtainable market) circa
8-10k practices based on SDL’s estimated market share for the dental practice software supplier
•around 140 sites signed as at 30 June 2026 (40 onboarded); now around 170 signed up with
strong pipeline
•most new clients are running 2-3 months trials to prove out the marketing ROI for their practices
•nGAGEoperates a revenue share model with the dental practice software supplier
•sales discussions with larger dental practice group are underway but will be a longer sales cycle
•next regional market for nGAGEis Aust/NZ; SDL in discussions with an initial practice for trial
•SDL has historically delivered bespoke communications software solutions for complex problems
•nGAGEis the first scalable, customer-driven software solution for end users
•it is architected for use beyond the dental vertical market and SDL is currently looking to productisefor
other vertical markets
10

•Ongoing structural headwind for mail from higher postage charges in NZ is broadly being offset
by market share gains (new names plus further outsourcing from existing customers)
•structural challenges will continue to pressure mail volumes
•ongoing cost out activity from staffing and print equipment efficiencies; premises costs to reduce
•Technology efforts have now moved most of SDL’s operations to the Cloud, and AI usage is
steadily increasing albeit not yet mature
•Early success with Council-owned Water entities (for billing) should see revenue later in FY2027
•Focus on international growth
•seeing revenue growth from most larger US and UK customers with further opportunities at Pitney
Bowes
•continuing to build UK nGAGEdental pipeline and seeing solid conversion into sales
•have agreement with dental software supplier to market nGAGEin Australia and New Zealand
•early sales efforts taking nGAGEinto transactional communications for a range of non-dental clients is
seeing strong interest with two NZ opportunities currently at contract stage
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F Y 2 0 2 7 O u t l o o k

•SDL share price modestly above cash backing per share
•current cash backing per share around $0.50 to $0.55 and directors will continue with share buyback
•proposal for shareholders to authorisean increase to buyback capacity
•FY2027 guidance remains $0.4 to $1.0 million
•underlying trading is modestly behind budget year-to-date; strong pipeline should close the gap
subject to timing of conversion to revenue
•larger customers continue trend of migration to digital...
•... albeit there is a rump of NZ customers that continue to require physical communications
•nGAGEdental in UK will remain a constraint on FY2027 earnings, at a similar level to FY2026
•nGAGEhas strong potential in other regions for dental (Aust/NZ) and other vertical sectors but likely
only modest contribution in FY2027
•usual risk caveats apply to earnings guidance
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F Y 2 0 2 7 O u t l o o k

Questions?
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M e e t i n g q u e s t i o n s

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F o r m a l M e e t i n g b u s i n e s s : V o t i n g p r o c e d u r e

•Resolution 1: Re-election of John McMahon
•To re-elect John McMahon as a director of Solution Dynamics Limited
•Resolution 2: Election of Patrick Brand
•To elect Patrick Brand as a director of Solution Dynamics Limited
•Resolution 3: Auditor remuneration
•That the Board be authorisedto fix the remuneration of the Company’s auditors for the FY2027 year
•Resolution 4: Increase in size of the share buyback
•That the Company be authorized to increase the size of the share buyback from the statutory limit of
5%, up to 20% of the shares on issue as at 24 March 2026
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F o r m a l M e e t i n g b u s i n e s s : R e s o l u t i o n s

•Any remaining general business or questions?
•Meeting is now formally closed
Thank you for attending
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G e n e r a l B u s i n e s s a n d Q u e s t i o n s