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Solution Dynamics LimitedAnnual Shareholder Meeting, 22 October 2026
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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 financial performance, 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
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•Meeting open: Voting and Questions procedures•FY2026 review•FY2026 key result metrics•NZ Mailhouse operations•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 authorise an increase in the size of the current share buyback programme•General business and Questions3 A g e n d a
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•Once the votinghas been opened, the resolutions and voting options will allow voting.•To vote, simply click on the Vote tab,and select your voting direction from the optionsshown on the screen.•Your vote has been cast when the tickappears.•To changeyour vote, select ‘Change your Vote’.4 O n l i n e v o t i n g p r o c e s s
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•If you have a questionto submit during the live meeting, please select the Q & A tab on the right half of your screenat anytime. Type your question into the field and press submit. Your question will be immediately submitted to the moderator .•You can submit a question at any time but it may not be answered until the appropriate point in the meeting. Similar questions will be answered together.•The Q & A tab can also be used for immediate help. If you need assistance, please submit your query in the same manner as typing a question and a Computershare representative will respond directly to you.5 O n l i n e q u e s t i o n s p r o c e s s
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•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 development and launch of nGAGE into the UK dental market•pre-tax earnings impact from UK staffing, marketing and launch costs, around $0.5 million•Normalised FY2026 cash on balance sheet around $7-8 million (approx 50 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 to all options to improve shareholder returns; currently focused on share buyback6 F Y 2 0 2 6 r e v i e w
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Five-Yr CAGRGrowth Y/YFY25FY26Financial Metrics ($000)-2.4%-24.0%41,32431,415Total Revenue10.6%4.1%17,19817,897Digital Print & Outsourced-11.3%-44.0%24,12613,518Software & Technology-8.5%-39.5%14,2868,636Gross Profit34.6%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.7 F Y 2 0 2 6 k e y r e s u l t m e t r i c s
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•domestic services mail revenue up 4.1% but mail lodgements down 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 utilising nGAGE functionality 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 rationalising print 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 functionality8 N Z M a i l h o u s e
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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 nGAGE functionality for dental practices includes targeted marketing campaigns•core, practice-customised templates, 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 nGAGE website –website– for more detailed functionality9
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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•nGAGE operates 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 nGAGE is Aust/NZ; SDL in discussions with an initial practice for trial•SDL has historically delivered bespoke communications software solutions for complex problems•nGAGE is 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 productise for other vertical markets10
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•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 nGAGE dental pipeline and seeing solid conversion into sales•have agreement with dental software supplier to market nGAGE in Australia and New Zealand•early sales efforts taking nGAGE into transactional communications for a range of non-dental clients is seeing strong interest with two NZ opportunities currently at contract stage11 F Y 2 0 2 7 O u t l o o k
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•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 authorise an 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•nGAGE dental in UK will remain a constraint on FY2027 earnings, at a similar level to FY2026•nGAGE has 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 guidance12 F Y 2 0 2 7 O u t l o o k
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Questions?13 M e e t i n g q u e s t i o n s
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•Voting will be by way of poll•votes will be counted by Computershare and the results then released on NZX•you must have logged on to this meeting using the details you received in the Notice of Meeting to be eligible to vote•How to vote reminder•if you are eligible a ‘Vote’ tab will show on your screen; click on the tab icon to vote•the resolutions will appear along with voting options•simply select the voting direction from the options shown on the screen•your vote has been cast when the tick appears•you can change your vote any time until the meeting ends by selecting ‘Change your vote’.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
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•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 authorised to 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 202615 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
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•Any remaining general business or questions?•Meeting is now formally closedThank you for attending16 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