Skellerup FY18 Presentation

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FY18 Results
16 August 2018
David Mair | CEO & Executive Director
Graham Leaming | CFO

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•Record NPAT of $27.3million due to a strong performance from both
Agri and Industrial divisions.
•Record EBIT for Agri division of $22.8 million.
‒Growth from international and domestic markets across all product ranges.
•Best EBIT since FY12 for the Industrial division of $20.8 million.
‒Continued trend of larger portion of earnings derived from more stable
industries with OEM customers. Still positioned to benefit from any iron ore
and oil and gas induced upswing.
‒Strong relationships with tapware customers in the US demonstrated by Gulf
US winning Moen’s partner of the year award.
‒Masport continues to win market share with superior systems solution.
•Capex down to normal levels of $5.4 million –Project Viking complete.
‒Sale of Woolston land complete.
•35% Investment in Sim Lim –Liquid Silicone Rubber (LSR).
‒Access to markets where odourless, tasteless, hypoallergenic, hygienic and
thermal stable material is required e.g. medical products.
‒Gulf US has experience with LSR products –Kohler rain panel manufactured
using LSR.
•Final dividend pay-out of 7.0 cents per share
Skellerup Key Points FY18
0
5
10
15
20
25
30
FY15FY16FY17FY18
NPAT (million)
Net Profit after Tax
0
10
20
30
40
50
FY15FY16FY17FY18
EBIT (millions)
EBIT by Segment
*
IndustrialAgri
*Excludes corporate and inter segment eliminations

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Skellerup Financial Highlights FY18
NZ$ MillionFY15FY16FY17FY18
Revenue203.0211.4210.3240.4
EBITDA38.436.840.447.2
Depreciation & amortisation(7.3)(7.5)(7.8)(7.4)
EBIT31.129.332.839.8
Finance costs(0.2)(0.4)(1.4)(1.9)
Tax expense(9.0)(8.4)(9.3)(10.6)
NPAT21.920.522.127.3
Earnings cents per share11.3810.6511.4714.15
Dividend cents per share9.09.09.511.0
Operating cash flow17.830.921.228.3
Cash net of debt0.8(26.9)(35.8)(30.7)
Capital &intangible expenditure20.438.912.65.4
•Revenue up $30.1 million
and 14% on pcp.
•EBIT up $7.0 million and 21%
on pcp.
•NPAT up $5.2 million and
23% on pcp.
•Dividend increased to 11.0
cents per share, 16%
increase on pcp.
•Operating cashflow up $7.1
million and 33% on pcp.
•Robust balance sheet –
decrease in net debt of $5.1
million.
•Capex substantially reduced
to normal levels following
completion of Wigram
facility.

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Skellerup FY18 Industrial Division
NZ$ MillionFY15FY16FY17FY18
Revenue123.0132.0131.2151.5
EBIT14.015.317.120.8
EBIT %11.411.613.113.7
Organic growth driving EBIT increase of 21% against pcp.
•Revenue measured in constant currency up 12%.
•Growth in water and flow control applications
‒Increased sales in ductile iron pipe gaskets, tapware and flow
control customers for Gulf US.
‒Lift in PVC pipe gaskets and valves sales in Australia.
•Sales growth in Vacuum Systems from product
development and the growing Oil and Gas market.
•Growth in Deks roofing products driven by strong
construction growth in Australia and US.
•Lift in sales into automotive applications.
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10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
FY17FY18
Industrial Revenue (millions)
Industrial Revenue Categorisation
Health
Electrical
Sports/Marine
Appliance
General
Extraction/Processing
Automotive/Machinery
Roofing
Water/Waste

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43%
25%
21%
6%
3%
2%
Agri Revenue by Region
NZNorth AmericaEurope/UKAustraliaAsiaOther
FY18
FY17
43%
28%
19%
6%
2%
2%
Skellerup FY18 Agri Division
Organic growth driving EBIT increase of 15% against pcp.
•Revenue measured in constant currency up 11%.
•Strong dairy market.
‒Growth with OEM customers in Europe and NZ for liners
and tubing.
‒Skellerup branded product sales strong internationally and
domestically.
•Footwear sales strong.
‒Growth with both traditional rural retailers and
hardware/safety channels.
‒Delivered first round of technical Firefighting Extreme boots
for UK contract.
NZ$ MillionFY15FY16FY17FY18
Revenue80.579.679.289.0
EBIT22.118.819.822.8
EBIT %27.423.624.925.6

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•Themes underlying our business strategy are unchanged.
‒Growing global demand for protein (safe food) and water driven by increasing populations, ageing infrastructure and stringent
environmental requirements.
‒Particularly focused on customers where our products are a small portion of the total cost but critical to our customers success.
•International markets continue to drive revenue growth.
‒~80% of our revenue generated from international markets in FY18.
‒Continue to support water customers in North America and Australia.
•Gulf and Deks group supplying polymer and elastomer products (including LSR).
•Vacuum Systems to continue to capitalise on superior solution we have for the transportation of water and liquid waste.
‒Continue Agri’s growth into the North America and Europe through Conewango and OEM customers.
‒Capitalise on growing international demand for marine foam.
•Grow domestic dairy and footwear sales through new products and channels.
•Operational excellence.
‒Appointed international specialist to drive future improvements with our manufacturing partners.
‒Mitigate commodity price increases by supplier development.
‒Continue to improve efficiencies at Wigram through mechanisation and process review.
•Capitalise on Sim Lim investment with sales and marketing drive from Skellerup.
•Global and domestic risks being carefully managed.
Skellerup FY19 Focus

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Skellerup FY18
NZ$ MillionFY15FY16FY17FY18
AgriEBIT22.118.819.822.8
Industrial EBIT14.015.317.120.8
Corporate EBIT(5.0)(4.8)(4.1)(3.9)
EBIT31.129.332.839.8
Finance costs(0.2)(0.4)(1.4)(1.9)
Tax expense(9.0)(8.4)(9.3)(10.6)
NPAT21.920.522.127.3
Reconciliation of Segment EBIT to Group NPAT

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This presentation contains not only a review of operations, but also some forward
looking statements about Skellerup Holdings Limited and the environment in which
the company operates. Because these statements are forward looking, Skellerup
Holdings Limited's actual results could differ materially.
Although management and directors may indicate and believe that the assumptions
underlying the forward looking statements are reasonable, any of the assumptions
could prove inaccurate or incorrect and, therefore, there can be no assurance that the
results contemplated in the forward looking statements will be realised.
Please read this presentation in the wider context of material previously published by
Skellerup Holdings Limited.
Skellerup Disclaimer