SDL 2025 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


2025 Annual Shareholder Meeting Address 20 November 2025

FY2025 Overview
Last financial year saw SDL navigate macroeconomic and postal market challenges along
with the adverse outcome from the Company’s largest customer’s RFP resulting in it moving
to a multi-vendor model that required a material cost restructuring in the second half.
The Company produced its third highest ever net profit result of $2.6 million with the effect
of the RFP and subsequent restructuring having an earnings impact in H2. My thanks to all
SDL’s staff for their efforts and contributions in FY2025, especially during a difficult
restructuring process.
Excluding the major customer, revenue growth was solid across the remainder of SDL’s top
ten accounts. While there is additional work coming in from Councils, much of the revenue
gain in New Zealand was from higher postage rate charges which are very low-margin, pass-
through cost to SDL’s customers. The Company also implemented a broad-based price
increase for FY2025. Revenue outside of New Zealand is increasingly high-margin,
volume(click)-based SaaS, along with professional services that are private labelled for
enterprise partners like Pitney Bowes to resell to their global clients. SDL has seen
continued growth in customer usage, driving revenue and improved margins as volumes
have increased.
Global charities have been a key market for SDL over the past five years. Significant funding
cuts in the US and UK from mid-2025 have driven global cutbacks in marketing to existing
donors. SDL pivoted resources and focus away from this sector in early 2H 2025 and
redirected investment into marketing communications software in the dental practice
management software sector.
Key accounts in North America and the UK showed solid revenue growth, with international
revenue modestly assisted by the addition of a small marketing services group in the US.
While general inflationary cost pressure remains, the labour market is soft and wage
pressure is minimal. General costs in the second half of FY20125 declined 10% and overall
Selling, General & Administration costs will annualise to a much lower run rate in FY2026.
The Company’s financial position remains strong with normalised cash position of around
$9-10 million or 61 to 68 cents per share. The Board has adopted a conservative balance
sheet position following the major customer RFP, but is nevertheless acutely aware of the
current low level of the share price. Note that the share buyback is only permitted to
operate outside of usual “blackout” trading windows and also when the Directors are not
holding any material, non-public information. For part of the current year, SDL was in
negotiations to acquire a business, which did not eventuate, but prevented the buyback
from operating while the potential transaction was in progress.
SDL’s International Growth Fund co-funding grant from NZ Trade & Enterprise from late H1
FY2023 continued to operate during FY2025. It reimbursed 50% of US market development
costs to a maximum of $0.6 million. The three years term expired earlier in November 2025
and consequently, the constraint that capped SDL’s distributions (dividends and any capital
returns) at 50% no longer applies.

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


To regain earnings momentum, SDL is investing in new product development, additional
customer support, and sales resource. The Board has examined acquisitions, including
submitting an NBIO for one opportunity that ultimately did not progress.
All options for improving shareholder value remain on the table. In the near term, the
Company intends to continue to buy back shares subject to both market conditions and
trading window or material, non-public information constraints.

FY2025 Financial Results
Despite difficult conditions and restructuring following the major customer RFP, SDL
generated its third highest ever net profit after tax of $2.6 million, down 7.1% on FY2024,
with dividends to shareholders totalling 3.0 cents per share (fully imputed).

Key result metrics ($figures are ’000) FY25 FY24 Growth Y/Y
CAGR
(5-yr)
Total Revenue 42,324 38,668 6.9% 4.0%
Digital Print & Outsourced 17,198 13,591 26.5% 7.4%
Software & Technology 24,126 25,077 -3.8% 1.9%

Gross Profit 14,286 14,844 -3.8% 1.2%
Gross Margin 34.6% 38.4%
SG&A expenses 9,840 10,009 -1.7% 1.6%

EBITDA
(a)
4,446 4,835 -8.0% 0.4%
EBITDA Margin 10.8% 12.5%

Net Profit after Tax 2,619 2,819 -7.1% 7.0%

Earnings per share (cents) 17.8 19.2 -7.0% 6.9%
Dividends per share (cents) 3.0 9.5 -68.4% -19.7%

(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 Company’s revenue increased 6.9% to $42.3 million, partly the result of postage prices
increasing but also aided by a general price rise at the start of the financial year. SDL
continued to gain market share, albeit in a declining local print and mail market.
Outside of the addition of a North American marketing agency, there was little new business
from international operations, although existing customers are showing strong growth.
While SG&A expenses declined 1.7% year-on-year, the H2-on-H2 decline was 10% and the
underlying H2 decline was larger but masked by restructuring costs.
The restructuring process was a difficult exercise, caused disruption to operational
efficiency and had an impact on culture.

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


Strategy: Digital First
SDL operates in the enterprise customer communications space managing the entire
lifecycle from data and assets, through composition and personalization, through delivery
and response. The main goal for most clients is digital transformation and to improve the
customer experience (CX). Improving the efficiency and effectiveness of printed
communications, SDL’s legacy mailhouse business, remains vital but is a declining market
where we continue to gain market share.
Many of SDL’s competitors offer fully digital-only or primarily printed communications
services. However, most enterprise customers still require a solution that encompasses
both digital and print. Having a complete, integrated offering, and leading with digital,
provides differentiation and has enabled us to grow in a declining market.
While our strategy remains “digital first” the market opportunity is moving upstream to
managing and leveraging data and AI. This diagram is a simplified workflow depiction. Data
and assets that feed into content creation can emanate from multiple sources and often
require manipulation or validation before use. Content can be personalised as customers
require, and omni-channel output can then be delivered across physical and digital
channels.


While SDL leads with digital transformation value and our digital volumes exceed our
printed volumes, most of the Company’s revenue in FY2025 was from printed
communications. The shift from print to digital continues to evolve, but at the same time,
digital distribution is becoming more complex and, in some cases, less effective. For
example, digital deliverability and open rates have become a key area of focus, due to spam
filters and other filtering from internet service providers. SDL has recently partnered with a
leading-edge digital delivery provider to deploy a best-in-class digital deliverability solution.
SDL began enabling AI capabilities with the launch of GenComm AI in 2024. GenComm
makes it easier to create highly personalized communications including language translation
at scale, provide analytics, insights, and recommended actions that lead to greater business
impact. Many of these capabilities are being leveraged and enhanced in our new nGAGE
product for the dental market.

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


Dental Communications
Our annual report noted that SDL had existing vertical market software that provided
marketing functionality for dentists, in conjunction with a leading on-premise dental
software practice management package. The vendor of that package, Henry Schein, is
phasing out the on-premise solution, replacing it with a cloud-based solution.
SDL hired an executive with expertise in the dental market and has now built an initial MVP
(minimum viable product) offering with significantly greater functionality and ease-of-use
for campaign marketing than the Company’s prior product. SDL’s product is branded
nGAGE.
nGAGE leverages dental patient data to drive dental practice growth. nGAGE makes it easy
to acquire new patients, cross sell to existing patients, and improve patient engagement. It
is a material upgrade on SDL’s prior product and provides essential marketing functionality
that the core dental management software lacks. In addition to campaign management,
built in AI assists with a range of marketing and analysis and SDL’s data architecture allows
assessment of marketing ROI. The MVP is now in beta pilot testing with several practices in
the UK and expected to fully launch with version 1 during H2 FY2026.
Initial demonstrations at UK trade shows have seen significant interest and a corporate
dental group has already purchased a software licence for all its practices.
For more details, refer to https://solutiondynamics.com/ngage-ai/
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 and has the ability to scale beyond a single customer problem/solution.
nGAGE bridges the gap between dental practice management and analytics by creating
effective marketing campaigns to optimise practice financial outcomes. This covers a range
of activity from new patient acquisition, to ensuring existing patients understand their
treatment options through to monitoring the practice’s brand and reputation. nGAGE is
tightly integrated with Dentally patient information, which it uses – in conjunction with AI –
to run targeted marketing campaigns.
AI assists in a variety of ways, including patient analysis to suggest campaigns for specific
treatments or lapsed patients, answering operational and support issues, campaign
monitoring and feedback, cross-sell opportunities, as well as monitoring practice statistics.
Additionally, the linkage back to Dentally information, provides the ability to track ROI
(return on investment) effectiveness.

FY2026 Outlook
The current financial year has been affected by SDL’s CEO, Pat Brand, having a serious family
medical issue to manage that means he is unable to travel and is operating on reduced
hours, predominantly focused on international operations. SDL’s Chair is providing part-
time executive support to the New Zealand operations and the situation remains under
regular review. Pat and SDL leadership team aligned on the Dental PMS strategy and nGAGE

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


development as well as hired our UK based leader; the team is executing well to plan with
his continued oversight.
International activity from existing customers remains strong in the US and UK and this
trend is expected to continue into FY2027. The acquisition of a marketing services agency
has provided several significant new clients, the most notable being The Hartford in the US,
a leading insurance provider. SDL now has an “in-house” marketing agency that enhances
our marketing capabilities and agility and adds marketing creative services to our
communications services offering.
Opportunities with Australian councils and the launch of nGAGE are expected to support
revenue growth although neither is expected to be a meaningful contributor to FY2026.
nGAGE in particular will act as a drag on earnings for at least the next twelve months. As
previously noted, nGAGE has already signed its first corporate dental group customer while
still in beta pilot phase.
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. 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 will likely 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 margins.
SDL is receiving inbound interest in communications relating to NZ Councils’ needs to begin
water billing. The Company is well-positioned to capture a strong share of this market, but
it will be some time before Councils move from the current planning phase into
implementation.
The Directors note that SDL’s share price remains around the top end of estimated cash
backing per share, effectively subscribing no value to SDL’s business operations. The Board
will continue to buy back shares at around current prices, subject to no constraints such as
trading blackout windows or holding material, non-public information. All options for
shareholder value remain on the table.
The Company continues to mature its technology operations and now holds accreditations
for SOC2 and HIPAA, along with ISO27001. SOC (Systems and Organisation Controls) 2 is a
technology security framework that customers are increasingly requiring as evidence of
protection against data and security vulnerabilities. HIPAA (Health Insurance Portability and
Accountability Act) set standards for safeguarding patients’ “Protected Health Information”
and ensuring the confidentiality, integrity, and availability of PHI created, maintained,
processed, transmitted, or received electronically. HIPAA certification is essential for
handling health information. SDL is progressively moving mailhouse technology
(applications and infrastructure) to the Cloud and this project is now 62% complete. This
move will provide more consistent and robust service levels to customers.
SDL is maintaining its FY2026 guidance range of $0.1 to $0.6 million. Underlying trading is
current ahead of budget and suggests an outcome towards the top end of guidance.

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


However, there is clear and increasing pressure on domestic mail volumes as a result of
several years of significant postage rate increases and this will likely place further pressure
on SDL’s margins.
While nGAGE will incur additional (unbudgeted) costs over the second half of FY2026, the
Company believes the product has strong revenue and earnings upside potential and is
investing in both development, product launch and sales activity, which will commence in
the UK but is expected to then expand into the US and Australia/NZ.
The usual risks and caveats apply to SDL’s guidance.

---

Solution Dynamics Limited
Annual ShareholderMeeting, 20November2025

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 20 November 2025 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 FY2025 Annual Report (together with management commentary)
published on 28 August 2025.
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 2025. 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 2025.
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
•FY2025 overview
•FY2025 key result metrics
•Business strategy:
•Digital first
•Dental vertical market
•FY2026 Outlook
•Formal business of the meeting, including resolutions:
•to re-elect Lee Eglinton
•to re-elect Elmar Toime
•to fix Auditor’s remuneration
•General business and Questions
3
A g e n d a

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4
O n l i n e v o t i n g p r o c e s s

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5
O n l i n e q u e s t i o n s p r o c e s s

•Thirdhighest ever net profit after tax in FY2025
•market conditions tough; restructuring costs incurred post major customer moving tomulti-vendor sourcing
•minimal H2 revenue from major customer following RFP
•Revenue growth of 21% in top 10 customers (excluding major customer affected by RFP)
•further gains in NZ Councils market (outsourcing more)
•NZ revenue gains partly a function of higher (very low margin) postage charges, plus SDL increased prices
•international growth from key accounts in both US and UK
•addition of marketing services group late in H1
•Cost control aided by soft labourmarket
•restructured and upgraded systems to boost efficiency and productivity; H2 SG&A down 10% year-on-year
•NormalisedFY2025 cash on balance sheet $9-10 million (61-68cps)
•buying back shares subject to share price and open buyback windows
•Board open toall options to improveshareholder returns; currently focused on share buyback
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F Y 2 0 2 5 o v e r v i e w

Financial Metrics ($000)FY25FY24GrowthY/YFive-Yr CAGR
TotalRevenue41,32438,6686.9%4.0%
Digital Print & Outsourced17,19813,59126.5%7.4%
Software & Technology24,12625,077-3.8%1.9%
Gross Profit14,28614,844-3.8%1.2%
Gross Margin34.6%38.4%
SG&A expenses9,84010,009-1.7%1.6%
EBITDA
(a)
4,4464,835-8.0%0.4%
EBITDA Margin10.8%12.5%
Net Profit after Tax2,6192,819-7.1%7.0%
Earnings per share (cents)17.819.2-7.0%6.9%
Dividends per share (cents)3.09.5-68.4%-19.7%
(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.
7
F Y 2 0 2 5 k e y r e s u l t m e t r i c s

•SDL’s NZ sales focus continues to lead with “Digital First” approach
•increasing NZ postage rate pressure is driving clients to quicker digital adoption
•Unifying communications software products into SDL’s Digital Mail Centre (DMC) platform
•ongoing integration into API connectivity into SDL’s customers’ tech systems
•SDL provides an omni-channel (including print) cloud solution; many competitors are digital only
•AI functionality (egtranslation, work flow, content suggestions) is progressively being added to SDL’s
workflow and product solutions
8
S t r a t e g y: D i g i t a l F i r s t

S t r a t e g y : D e n t a l s o f t w a r e
•SDL has an existing relationship with the major software vendor, Henry Schein, to UK dental
practices
•SDL supplies functionality to run dental marketing campaigns
•Henry Schein has a new (Cloud) product to supersede its existing dental practice software
•SDL’s MVP allows dental practices to run key marketing/reminder (email/SMS/print) campaigns
•version one of the product is expected to launch in early 2026
•the MVP was demo’dat a recent UK dental conference and has already signed pilot customers
•product is branded “nGAGE” –see https://solutiondynamics.com/ngage-ai/
•nGAGEsoftware architecture integrates with dental software data
•nGAGEdata model architected for portability from initial (dental) sector to other vertical B2C
markets
•SDL has historically provided bespoke software solutions for complex communications problems
•this is the first non-enterprise, scalable, customer-driven software solution for end users
9

nGAGE
Turning Patient Data Into Practice Growth
New Patient
Acquisition
NHS > Private sequences
Referral incentive programs
New patient welcome sequences
Existing
Patient Growth
Exam > Hygiene campaigns
Lapsed Patient campaigns
Cross-sell whitening, aligners, etc.
Reputation &
Brand
Automated review requests
Patient satisfaction surveys
Birthday & milestone messaging
Automatically create targeted campaigns that increase treatment acceptance
and drive measurable ROI, freeing team to focus on delivering patient care!
New partnership signed with Henry Shein One enables SDL to tightly integrate
with their Dentally cloud Dental Practice Management System
Triggered, Proven Campaignsusing real time patient data and subject matter expertise
Clear ROI-Track exactly which patients booked and refine campaigns automatically

•Governance change as CEO reduces hours due to family medical issue with Chair stepping into
part-time Executive Director role to assist with NZ operations
•Stronger structural head winds as higher postage charges bite into customers’ communications
budgets is accelerating moves to digital
•opportunity for SDL to continue gaining market share but will keep margins under pressure
•Further NZ growth will come from the Councils requiring communications for Water assets
billing, although this is unlikely until FY2027
•Focus on international growth
•revenue momentum with largest US and UK customers expected to continue
•added a small marketing services business in North America
•commencing sales activity into Australian Councils in conjunction with an Australian print partner
•launch of nGAGEproduct for UK dental software market in early 2026
11
F Y 2 0 2 6 O u t l o o k

•SDL share price remains near cash backing per share
•buyback limited by “inside” information
•Maturing technology operations with SOC 2, HIPAA and ISO 27001 accreditation, with project to move
mailhouse workflows to the Cloud now 62% complete
•FY2026 guidance remains $0.1 to $0.6 million
•underlying trading is currently ahead of budget
•solid activity from larger customers although lower levels of ad hoc work...
•... and increased postage cost sensitivity as postal rates rose again on 1 July (standard mail retail +26%)
•wide range of FY26 earnings outcomes possible, noting likely H2 expenses for the UK launch of nGAGE
•nGAGEhas strong potential (both in dental and other vertical markets) but will remain an earnings
drag over 2026
•usual risk caveats apply to SDL earnings guidance
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F Y 2 0 2 6 O u t l o o k

Questions?
13
M e e t i n g q u e s t i o n s

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14
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 Lee Eglinton
•To re-elect Lee Eglinton as a director of Solution Dynamics Limited
•Resolution 2: Re-election of Elmar Toime
•To re-elect Elmar Toimeas 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 FY2026 year
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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

•Any remaining general business or questions?
•Meeting is now formally closed
Thank you for attending
16
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