Slide 1: Solution Dynamics FY2017 Result
SOLUTION DYNAMICS FY2017 RESULT optimised customer communications
Slide 2: Business Overview
BUSINESS OVERVIEW • print and mailhouse is around 75% of revenue • laser digital imaging, enveloping, flowwrap, ancillary mail functions • circa 25 million mail lodgments annually with NZ Post • high revenue growth in low margin Outsourced Services; email erosion • software technology assists SDL ga
Slide 3: FY2017 Result: Summary Financial Performance
FY2017 RESULT Summary Financial Performance FY17 Growth FY16 Growth FY15 (all figures $000) Y/Y (%) Y/Y (%) Total revenue 19,991 22.5% 16,322 24.4% 13,117 Cost of Goods Sold 12,274 32.8% 9,239 26.2% 7,323 Gross Margin 7,717 9.0% 7,083 22.2% 5,794 Gross Margin (%) 38.6% -11.0% 43.4% -1.8% 44.2% Selli
Slide 4: Software and Technology
SOFTWARE AND TECHNOLOGY • SDL software and technology remains a multi-year secular growth story • UK dental • invoices/statements penetration rising, but more slowly than expected • Bremy promotional activity; early stage and should grow strongly • UK vets started during FY2017; strong growth expect
Slide 5: Capital Structure
CAPITAL STRUCTURE • NZAX listed, 14.1 million shares on issue • market cap circa $32 million, with net cash on hand around $2 million • note off balance sheet financial leverage: all print equipment is leased • 580k ESOP options outstanding and mostly now exercisable • dividend policy: pay out 70-75
Slide 6: Strategy and Growth Options
STRATEGY AND GROWTH OPTIONS • ongoing local print/mailhouse growth • DéjarMail opportunities drive local print/mail volume • excess print capacity and highly competitive; volumes switching to email • software and technology growth • DéjarMail is a sizeable and secular growth opportunity • increased
Slide 7: Outlook
OUTLOOK • FY2018 earnings growth forecast around 15% • growth constraints: • volume decline and loss of archival from one large client • additional support and sales costs in UK/Europe added in FY2017 H2 • ongoing switch to digital distribution a constant headwind for print volumes • growth areas: •
Slide 8: Solution Dynamics
SOLUTION DYNAMICS optimised customer communications