Solution Dynamics Limited · NZX:SDL

Solution Dynamics — Shareholder Meeting (November 2009)

35 slides from Solution Dynamics's shareholder meeting presentation, Nov 10, 2009

1. Slide 1: Annual Shareholders Meeting 10 November 2009

   Annual Shareholders Meeting 10 November 2009

2. Slide 2: Annual Shareholders Meeting 2009 - Chairman

   Annual Shareholders Meeting 2009 Maurice Kidd Chairman

3. Slide 3: Agenda

   Agenda ƒ Chairman’s Report ƒ CEO’s Report ƒ Business – Resolutions ƒ General Business

4. Slide 4: Performance Highlights

   Performance Highlights ƒ We did not meet our earnings expectations ƒ Financial performance flat ƒ Loss of NHF ƒ First half costs higher ƒ Economic environment

5. Slide 5: EBITDA

   -- SOLUTION EBITDA DYNAMICS EBITDA 800 + ii) 600 Son 513 373 NZ$(000)'s Ps 5 2006 2007 2008 2009

6. Slide 6: Net Deficit

   Net Deficit Net (deficit) 0 2005 2006 2007 2008 2009 -100 -200 -300 -253 -238 NZ$(000)'s -400 -500 -536 -600 -610 -700 -800 -736 ƒ Deficit is little changed ƒ Had forecast profit for 2009 year

7. Slide 7: Cash

   Cash Operating cash 1000 806 800 600 414 400 299 ($000's) 200 0 -200 2005 2006 2007 2008 2009 -400 -119 -600 -800 -672 ƒ Operating cash $925,00 lower at -$119,000 ƒ Trading -$162,000 ƒ Trade & sundry creditors - $741,000 ƒ Net movement of total cash -$106,000 ƒ Debt to equity improved from 367% ’08

8. Slide 8: Bank Covenant Compliance

   Cash - Finance Facility Bank Covenant Compliance 2.5 2.3 1.9 2.0 1.5 EBITA/Interest 0.9 0.9 1.0 0.7 0.6 0.5 0.2 0.0 Mar-08 Mar-09 Jun-07 Sep-07 Dec-07 Jun-08 Sep-08 Dec-08 Jun-09 Sep-09 -0.5 -1.0 -0.5 -0.2 -1.5 -1.3 Interest cover Covenant ƒ Non compliance with interest cover covenant at year end ƒ

9. Slide 9: Outlook & Strategy

   Outlook & Strategy ƒ Outlook is positive ƒ Strategy unchanged ƒ Both Comit and Dejar are technology businesses ƒ Increase recurring revenues in Comit and Dejar businesses ƒ Maintain focus on operational efficiencies

10. Slide 10: Board changes

    % sOLUTION Governance DYNAMICS =" Board changes

11. Slide 11: Annual Shareholders Meeting 2009 - CEO

    Annual Shareholders Meeting 2009 Nelson Siva Chief Executive Officer

12. Slide 12: Outline

    Outline ƒ Strategy Update ƒ Comit ƒ Dejar ƒ What we achieved ƒ Operational Overview ƒ Comit ƒ Dejar ƒ Outlook

13. Slide 13: Strategy Update - Structure

    Strategy Update - Structure • Multi channel • Personalised communications • Digital archive • Data Services systems • Customised document management • SaaS solution • Print Procurement & management • Digital asset management • Electronic delivery

14. Slide 14: Strategy Update – Transforming Communications

    Strategy Update – Transforming Communications Client Data Entry Create Digital Print Digitise Process Response Processing Multi channel distribution Client’s Customers

15. Slide 15: Strategy Update – DOCCM

    Strategy Update – DOCCM (Document Output For Customer Communication Management)

16. Slide 16: Customer Testimonials

    Customer Testimonials Annemarie Jensen (ACP/Netlink)

17. Slide 17: What we achieved

    What we achieved ƒ Return to profit r ƒ Grow market share a ƒ Niche products and services ƒ Colour imaging a ƒ E-delivery a ƒ Dejar Development a ƒ Sale of Data Entry business a

18. Slide 18: Sale of Data Entry Business

    Sale of Data Entry Business ƒ Sale finalised July 2009 ƒ Transaction effective Oct ’09 ƒ Payment by cash and earnout ƒ Expected total proceeds over 18-mths $370,000 ƒ Continue to operate from premises ƒ Close relationship ƒ Strengthen data entry & scanning solutions

19. Slide 19: Business Development - Comit

    Business Development - Comit Comit Sales & Profit - 1/2 yearly Jan '07 thru Jun '09 5,000 4,876 4,811 700 652 4,471 600 4,500 578 4,317 Earnings $(000)'s 500 Sales $(000)'s 4,039 561 4,000 400 348 3,500 300 200 3,000 154 100 2,500 0 Jan-Jun'07 Jul-Dec'07 Jan-Jun'08 Jul-Dec'08 Jan-Jun'09 Sales Earnin

20. Slide 20: Business Development – Comit Sales

    Business Development – Comit Sales Comit Sales Analysis 9,500 9,000 8,500 8,000 (000's) 7,500 7,000 6,500 6,000 5,500 5,000 2006 2007 2008 2009 Service Revenue Print, post & other ƒ Direct marketing activity depressed ƒ NZ Post report 7% decline in volumes ƒ BUT – High value add service sales holdin

21. Slide 21: Gross profit & Overhead Cost

    Gross profit & Overhead Cost Comit - Overhead Analysis 2,200 2,150 2,100 ($000's) 2,050 2,000 1,950 Apr-Sept'08 Apr-Sept'09 ƒ Efficiencies driving improved gross profit ƒ Further improvements expected ƒ Lower costs ƒ 15% reduction in staff # ƒ Savings on property, $14k/mth Oct’09 on

22. Slide 22: Business Development – Comit: Recent Implementations

    Business Development – Comit New Accounts Recent Implementations ƒ NZ Breast Cancer Foundation ƒ Diners Club International ƒ Manukau City Council ƒ Manukau Water ƒ Netlink (ACP) ƒ APN ƒ Craigs (ABN Amro)

23. Slide 23: Comit - New Products

    Comit - New Products Colour Production 2,500 2,000 1,500 (ooo's) 1,000 500 0 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 ƒ New Products - Colour ƒ Colour sales grow 87% on ’08 year ƒ Production equipment replaced Jan ‘09 ƒ Growth continuing ƒ New Products – e-delivery ƒ Technology

24. Slide 24: Comit - Outlook

    Comit - Outlook ƒ Prospect base is strong ƒ Market volumes still depressed by economic conditions ƒ Outlook positive

25. Slide 25: Customer Testimonials

    Customer Testimonials Tim Bond (Computershare (NZ)

26. Slide 26: Business Development - Dejar

    Business Development - Dejar 1,000 Dejar Income Statement 500 Large licence 900 810 419 400 sale $480,000 800 to Australian Earnings $(000)'s Sales $(000)'s 700 622 300 600 500 157 424 200 Post 406 400 100 306 62 300 0 (14) 168 (45) 200 (100) 100 (142) 0 (200) Jul-Dec'06Jan-Jun'07Jul-Dec'07Jan-Jun'0

27. Slide 27: Business Development – Dejar Sales Mix

    Business Development – Dejar Sales Mix Dejar Sales Analysis 800 700 600 500 ($000's) 400 300 200 100 0 Jan-Jun'07 Jul-Dec'07 Jan-Jun'08 Jul-Dec'08 Jan-Jun'09 Dejar recurring Dejar licence Linear (Dejar recurring) ƒ Recurring maintenance & hosting sales increase 62% to $597,000

28. Slide 28: Business Development – Dejar Outlook

    Business Development – Dejar Outlook ƒ New Customers in Asia and Australia ƒ New channel for UK ƒ PrintSoft performance weak ƒ Expanding functionality ƒ E-delivery ƒ Scanning ƒ On line composition ƒ Looking for complimentary partners ƒ Outlook positive

29. Slide 29: Customer Testimonials

    Customer Testimonials Glen Sutherland (APN)

30. Slide 30: Thank You

    Thank You ƒ Maurice Kidd ƒ Mike Hutcheson

31. Slide 31: Annual Shareholders Meeting 2009 Business

    Annual Shareholders Meeting 2009 Business

32. Slide 32: Annual Report

    Annual Report ƒ That the Annual Report of SOLUTION DYNAMICS LIMITED for the financial year ended 3O June 2009 be received.

33. Slide 33: Election Of Directors

    Election Of Directors ƒ To re-elect MIKE SMITH as a Director of Solution Dynamics Limited.

34. Slide 34: Appointment of Auditors

    Appointment of Auditors ƒ That Grant Thornton be appointed auditor of the Company for the ensuing year and that the Board of the Company be authorised to fix the auditor’s remuneration for the ensuing year.

35. Slide 35: General Business

    General Business ƒ General Business

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