SDI LIMITED — Remuneration Information 2015

Nov 15, 2015

==> picture [206 x 79] intentionally omitted <==

Supplementary information to 2015 Remuneration Report

The Board commissioned and received a comparative analytical review from an independent remuneration specialist of its executive salaries. These salaries were compared and benchmarked across 8 peer companies that were deemed to be an appropriate match for comparison.

Deloitte Private was initially engaged to commence these remuneration reports and they were managed by Deloitte Director, Michael Hyatt. Mr Hyatt is now an independent remuneration and human capital consultant and has performed the remuneration report for the last 2 years. Mr Hyatt has used the same principles and methodologies developed at Deloitte Private.

To determine the competitiveness of its remuneration and benefit programs, the Board, in consultation with its independent consultant, annually compares the level of compensation, market pay practices, and its relative performance to those of peer companies. The comparative group includes but is not limited to, global multinational companies, not necessarily in healthcare, that share similar characteristics with SDI and its organisational objectives of sustainable growth and returns to shareholders.

Therefore, the peer group was selected to strike the right balance between size, complexity, geographic spread, and management and operating structure, considering that SDI has no direct listed peers in Australia. As it pertains to appropriate healthcare peers, comparative companies included IDT, Mayne Pharma, Cogstate, Nanosonics, Medical Developments and Sigma.

The Board, working with its independent consultant, determined the selection criteria and then chose the companies used in this comparative analysis.

The results for the 2015 financial year was mixed across the board with the peer companies posting modest to large revenue increases and very mixed NPAT results (130% increase on previous year to a minus 109% change). Return on equity (ROE), which paints a clearer picture of overall results, shows SDI performing well within the peer group.

The Board has reviewed the detailed report received from the independent consultant and has concluded that the remuneration of its key executives is appropriate when considering the comparative data and complexity of the Company.

For further information please contact:

INSOR Investor Relations 0418 106 675

November 16, 2015

==> picture [580 x 23] intentionally omitted <==

==> picture [580 x 22] intentionally omitted <==

==> picture [667 x 493] intentionally omitted <==