Skellerup FY20 NPAT equals prior year record result

SKELLERUP ANNUAL REPORT 2020
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ANNUAL REPORT 2020

Contents
Business Review
Highlights 2020 3
Chair’s Review 4
CEO’s Review 6
Financial Commentary 10
Our Business Strengths 14
What we do – Industrial 16
What we do – Agri 18
Our Brands 20
Strategic Acquisitions 22
Customer Driven Product
Development 24
Our People 26
Environment 29
Board of Directors 30
Corporate Governance 32
Independent Auditor’s Report 40
Directors’ Responsibility
Statement 43
Income Statement 44
Statement of
Comprehensive Income 45
Balance Sheet 46
Statement of Changes in Equity 47
Cash Flow Statement 48
Notes to the Financial Statements 49
Financial Statements
Directors’ Disclosures,
Remuneration and Shareholding 79
Corporate Directory 83
Shareholder Information

Highlights 2020
Revenue
$
251.4m
Increased by $5.6m
2%
FY20FY18FY19
NPAT
$
2 9.1m
In line with PCP
FY20FY18FY19
Decreased by $0.1c
Earnings per share
14.9c
1%
FY20FY18FY19
Dividend
$
13.0
cps
FY20FY18FY19
Increased by $19.1m
Operating
cash flow
$
48.0m
66%
Increased by 2
Global team
798
0.3%
No change

SKELLERUP ANNUAL REPORT 2020
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Chair’s
Review
FY20 has seen the resilience
of our business model and
strategy tested. Unprecedented
events like COVID-19 provide
a real-time stress test.
The durability of our business supplying
many essential products for customers
across the world, resulted in an audited net
profit after tax (NPAT) of $29.1 million, in
line with the record result achieved in the
prior year. Operating cash flow of $48.0
million was a record, 66 per cent above
the prior year. This cash flow has funded
shareholder dividends, capital expenditure,
the acquisition of Silclear (in November
2019) and a reduction in net debt to $28.5
million at the end of FY20. With net debt just
10 per cent of our total assets, our balance
sheet is in a very strong position to support
continued prudent growth in the business.
Reflecting on the recent disruption we have
all faced and the impact this may continue
to have, it is the strength of our business,
and the adaptability and commitment of our
leaders, that has allowed us to continue to
meet the needs of customers and deliver a
very good result for our shareholders.
Shareholders will understand that with
the advent of COVID-19 a safe working
environment for our staff across the world
was our immediate priority. Our businesses
in China and Italy were the first to be
impacted. Our teams were quick to learn
from each other and adapt to new ways of
working. This collaboration and agility ensured
we could continue to operate effectively,
minimise the disruption to our customers and
minimise the impact for shareholders.
The quality of our customer base, combined
with the essential nature of many of our
products for the food, water, infrastructure
and healthcare sectors, enabled us to sustain
activities and provide continuity for our team
across the world. We continued to work
throughout the lockdown periods of many
geographies to ensure global markets could
obtain the essential goods and services our
products underpin, including water, milk and
milk products, critical medical devices and
safety equipment.
We maintain a disciplined focus on capital
allocation to ensure we fund future growth
projects with excellent commercial
prospects. We were pleased to acquire the
Silclear business in November 2019 and will
continue to look for acquisition opportunities
that open new markets or products with
the potential to deliver profitable growth.
We take a prudent approach and carefully
assess acquisitions to ensure they fit with
our organic growth strategy and then
work quickly to acquire and realise the
opportunities they present.
Our Board have continued to stay close to
our team, business partners and customers,
working relentlessly to ensure thorough
oversight, visibility and strong governance.
The skills, experience and commitment of our
Board have enabled us to respond decisively
to the market disruption and volatility that
all businesses have faced within the current
environment. Our Directors have a wealth of
commercial and governance experience well
matched to our business needs across the
diverse geographic and market segments in
which we operate. During FY20, we appointed
an external adviser to assist with the
identification of a potential additional director

SKELLERUP ANNUAL REPORT 2020
5
to provide Board succession and continuity.
The process was then delayed due to potential
appointees being unable to undertake due
diligence due to COVID-19 restrictions, but the
process has now resumed.
Board meetings took on a new virtual
approach that allowed us to connect frequently
and align with the rapidly evolving changes
happening around the globe. In recent years
our Board members visited many of our sites,
both in New Zealand and abroad. We gained a
good understanding of the local environments
we are operating in as we made changes to
protect our people, partners and customers.
It is our intention to continue these visits, once
it becomes safe to undertake travel again.
As a result of Skellerup’s resilience, robust
earnings, excellent cash flow and low debt,
the Directors are pleased to announce a
final dividend imputed to 50 per cent of 7.5
cents per share (cps), bringing the total
FY20 dividend payout to 13.0 cps. The final
dividend, imputation rate and total pay-out
are unchanged on the prior year. The final
dividend will be paid on 16 October 2020
with a record date of 2 October 2020.
I am proud of our team’s achievements
around the world and on behalf of the
Board thank them for their contribution to
delivering another successful result. We
have uncertain global conditions ahead
however Skellerup is in robust shape and
well placed to invest and grow sustainable
earnings and shareholder returns.
Elizabeth (Liz) Coutts
Chair and Director
It is the strength of
our business, and
the adaptability and
commitment of our leaders,
that has allowed us to
continue to meet the needs
of customers and deliver
a very good result for
our shareholders.

SKELLERUP ANNUAL REPORT 2020
6
CEO’s
Review
In a challenging environment,
Skellerup has continued
to perform well and has
delivered a strong result.
Prior to the COVID-19 outbreak, Skellerup
was on track to achieve another record
result. Our FY20 net profit after tax (NPAT)
of $29.1 million is in line with last year’s
record result. This outcome proves the
strength of our strategy and business plans.
Our people were able to respond quickly
to the shocks and issues that impacted our
supply chains and customers. This has
meant we have minimised the impact of
the ongoing disruption on our business.
Our team – fast and decisive action
in a rapidly changing environment
As an international business, Skellerup’s
response to the COVID-19 pandemic began
first in China in January 2020 and quickly
reached all operations. Our leaders and
teams were fast to react, implementing new
ways of working including maintaining
safe physical distancing. We prioritised
the health and safety of our people while
changing our operational layouts and shift
patterns. While this impacted capacity and
increased costs initially, we are now close
to previous productivity levels. Many of the
changes implemented remain as the new
norm for how we work going forward.
Most of our operations were able to continue
functioning during the lockdown periods,
as we supplied essential components and
products and supported customers who
were also deemed essential. While we
experienced varying degrees of disruption
depending on the product and location,
our team were able to overcome these
challenges. Our leaders across the business
are used to responding to market issues and
shocks. They identified the supply chain
risks early and acted swiftly. I thank all of
our team for their resilience, adaptability
and commitment during this difficult period.
Technical customer solutions
Skellerup is a technical solutions company.
Our focus is on staying close to our
customers. This means understanding
their challenges so that we can respond with
new approaches and innovative products
that make a difference. A large part of
our customer base is Original Equipment
Manufacturers (OEM). We design and
develop essential components and products
that form part of a customer’s final product.
Our components may only comprise
one part of the final product, but they are
usually critical to its overall function and
performance. We have remained close to our
customers throughout the global disruptions,
implementing new processes to ensure we
continue to meet changing needs.

SKELLERUP ANNUAL REPORT 2020
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We succeed when our customers succeed.
We work with customers to identify
their underlying requirements for new
products. We then rapidly develop and
deliver prototype samples. Providing these
prototypes within a very short timeframe
enables quick modifications and confirmation
of ‘proof of concept’. Our solutions must
not only meet the requirements of our
customers but also often comply with food
and water safety regulations, which differ
in each market. We are known for our in-
depth knowledge of materials and tooling.
Our customers commit by funding part of
the development costs and we commit to
delivering the final product quickly.
This customer-centric approach, together
with our world-leading expertise, lowers
the risks associated with new product
development and ensures our research
and development costs are well controlled.
Agri Division
The strength and resilience of our Agri
business is seen in the record result,
delivering Earnings Before Interest and Tax
(EBIT) of $25.4 million. Growth in sales of
essential dairy rubberware products into the
USA and a strong contribution from Silclear,
our silicone rubber products business
acquired on 1 November 2019 were the key
contributors to the excellent FY20 result.
Skellerup is the second-largest
manufacturer of dairy rubberware in
the world. While our biggest growth
opportunities come from international
markets, New Zealand remains a key
market. Our products are essential to the
continued global supply of milk and milk
products, playing a vital role in protecting
milk quality and animal health. This was
and is evident throughout the unfolding
COVID-19 disruption.
Demand remained strong throughout the
various lockdown periods, and our facilities
in New Zealand and the United Kingdom
have continued to deliver food-grade
consumable products to our customers
globally. At our largest facility, in Christchurch,
New Zealand, we overcame the equivalent
of at least two weeks’ lost production as well
as facing additional operating and staffing
costs. We have now implemented a number
of important changes and have improved
productivity, now operating at about 90 per
cent of our previous maximum capacity.
We are very pleased with the agility and
resilience of our team.
We have remained close
to our customers
throughout the global
disruption, implementing
new processes to ensure
we continue to connect
and understand their
changing needs.

SKELLERUP ANNUAL REPORT 2020
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Industrial Division
Results from our Industrial business
varied as a result of the diverse range of
customers and applications served and how
they were impacted by COVID-19. EBIT
of $20.9 million was delivered for FY20.
With minor exceptions, our businesses
have continued to operate throughout the
varying COVID-19 lockdowns across the
world, reflecting the essential nature of
many of our products. However, demand for
infrastructure and oil and gas applications
did reduce pushing EBIT below the record
result of the prior year. Despite this, we are
in a secure position for continued growth.
Our result was impacted by the gradual
implementation and continuation of
lockdowns in some countries. This caused
a reduction in demand in late March
and April, particularly for products we
sell into applications such as water and
wastewater infrastructure and for the
vacuum pump systems associated with
oil and gas exploration and production.
In New Zealand, the lockdown conditions
meant that some of our businesses could
only operate at a limited level, supplying
just those products deemed essential.
Partially countering this, international
demand for our high-performance marine
foam continued to grow and demand for our
roofing and mining products particularly
in Australia was solid. As the year closed,
we have seen a rebound in overall demand
levels as restrictions have eased and
activity has increased across the world.
Measuring our impact on the
environment
Skellerup is committed to operating
as effectively as possible, ensuring we
use our resources wisely. Looking after
the environment in which we operate is
inextricably linked to generating sustainable
earnings growth for shareholders and
opportunities for our people. Over the past
few years, we have highlighted some of our
achievements in our annual reports and we
share some more of these with you this year
on page 29. We have also invested time to
better measure our carbon emissions for
each of our facilities. With this baseline in
place we will establish programmes and
measures to drive improvements over the
coming years. We look forward to reporting
on these measures in the future.

SKELLERUP ANNUAL REPORT 2020
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People and outlook
Finally, I would like to thank the Board
of Directors and the whole Skellerup team for
their resilience, dedication and hard work in
what has undoubtedly been a challenging year
for all. Your contribution has been invaluable.
It has been a year where the strength of our
strategy has been confirmed. We are pleased
with the path the Skellerup business is on and
will continue to deliver sustainable returns
now and in the years ahead.

David Mair
Chief Executive Officer
and Director
I thank our team for their
resilience, adaptability and
commitment to maintaining
safe operations while also
meeting rapidly changing
customer demands.

SKELLERUP ANNUAL REPORT 2020
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Financial
Commentary
We are committed to
delivering sustainable
financial returns for our
shareholders, providing
opportunities and growth for
our employees, and assurance
for our customers that we
will continue to provide them
with the essential engineered
solutions they need now
and in the future.
FY20 Group Earnings & Dividends
For the year ended 30 June 2020 (FY20),
Skellerup recorded net profit after tax
(NPAT) of $29.1 million, achieved a record
operating cash flow of $48.0 million, and
declared a gross dividend pay-out of 13
cents per share.
The NPAT achieved is in line with the record
result achieved in the prior comparative
period (pcp). Operating cash flow improved
by 66 per cent on pcp due to working capital
gains. The gross dividend pay-out declared
is unchanged on pcp and represents a gross
yield
1
of 6.1 per cent for shareholders.
Skellerup adopted IFRS-16: Leases in
FY20. This required Skellerup to recognise
right of use assets and an associated lease
liability for certain operating leases. These
are predominantly for properties that
Skellerup’s businesses occupy and operate
from around the world.
The initial right of use asset and associated
liability recognised on 1 July 2019 was $18.5
million. In FY20 amortisation and impairment
of these right of use assets was $5.2 million
and financing costs associated with the lease
payments were $0.9 million. Actual lease
payments were $5.6 million. The net impact
of IFRS-16 was to reduce FY20 NPAT by $0.4
million on a comparable basis with pcp.
Measuring Performance
To enable directors and management
to lead and measure performance, we
segment our financial results into two
divisions – Agri and Industrial.
Agri Division
The record Agri Division result was the
highlight of FY20. Growth in sales of
essential dairy consumables to customers
in international markets, particularly the
United States of America (USA) and the
contribution of our newly acquired silicone
rubber business (Silclear) boosted Agri
Division revenue by 5 per cent. Despite
incurring additional costs to manage
activities in response to COVID-19, gross
margin as a percentage of sales was
up slightly and indirect costs were well
contained (up 7 per cent on pcp and on a
like with like basis excluding Silclear up
2 per cent). As a result, earnings before
interest and tax (EBIT) increased by 11
per cent to a record $25.4 million.
The USA has been our fastest growing
market in recent years, and this continued
in FY20, with increased sales of dairy

1
Gross yield is determined by comparing the F Y20 dividends paid and declared totalling 13 cents per share to the closing share price on 30 June 2020.

SKELLERUP ANNUAL REPORT 2020
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consumables and specialist rubber
footwear boosting its share of Agri Division
revenue to 30 per cent. New Zealand
remains the largest market generating 41
per cent of Agri Division revenue from sales
of dairy consumables and rubber footwear
and despite the disruption of COVID-19,
sales were flat compared to the pcp.
The overall Agri Division result demonstrates
the importance of Skellerup products to the
global dairy industry and the dairy products
the industry delivers to the world.
Industrial Division
The Industrial Division supplies a range of
often critical components for predominantly
Original Equipment Manufacturers (OEMs)
for diverse uses including potable water,
health, medical, sporting and roofing
applications. The Industrial Division is
focused on international markets. The USA
is the largest market providing 33 per cent
of FY20 Industrial Division revenue, closely
followed by Australia with 28 per cent.
The NZ market generated 12 per cent of
Industrial Division revenue in FY20.
The largest application for the Industrial
Division continues to be potable and
waste water. Our products must meet
demanding performance and material
certification requirements to ensure the
safe transportation of fresh and waste
water. Revenue was steady until COVID-19
lockdowns unsurprisingly slowed demand
in the final quarter of FY20. Sales growth
was achieved in sporting and leisure,
health/medical, electrical and roof sealing
applications. Robust demand for U-Dek
marine decking, a high specification closed-
cell foam used on the floors of leisure
boats was a key driver as were product
extensions in our DEKS range of roof sealing
solutions and a full year contribution from
Nexus (acquired in April 2019). Sales of our
products used in automotive applications and
the oil and gas industry were down in FY20
with COVID-19 exacerbating a slowdown we
were already experiencing.
The overall impact on the Industrial
Division was neutral, with revenue flat to
pcp despite the full year contribution of
Nexus. Gross margin as a percentage of
sales was flat. Indirect costs were up 9 per
cent due to the Nexus acquisition but on a
like with like basis excluding Nexus, they
were down 1 per cent on pcp. Additional
costs of $0.8 million were incurred to
increase provisioning for doubtful debts
and for a vacated lease. Wage subsidy and
job keeper payments related to COVID-19
were $0.9 million. The net effect delivered
an Industrial Division EBIT of $20.9 million,
down 9 per cent on the record result
achieved in the pcp.

SKELLERUP ANNUAL REPORT 2020
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Five Year Financial Review
The table below shows the financial results and position of the Skellerup Group for each
of the last five years. Over this five-year period, revenue has grown by 19 per cent and
NPAT by 42 per cent. The sustained earnings growth has enabled an increase in the gross
dividend pay-out over the same period of 44 per cent. Skellerup’s strong operating cash
flow means despite the growth in dividends and acquiring Silclear, Nexus and taking a
stake in Sim Lim, net debt of $28.5 million is just 10 per cent of our total assets compared
with 12 per cent at the end of FY16.
Period Ending30/06/202030/06/201930/06/201829/06/201729/06/2016
Total Revenue251,389245,792240,408210,322211,415
EBIT42,48641,79839,78132,82429,365
Finance Costs2,5821,7851,8631,414411
Share of net profit of associates(73)23---
Profit before Tax39,83140,03637,91831,41028,954
Ta x10,76710,97310,6419,3008,429
Net Profit After Tax29,06429,06327,27722,11020,525
EPS (c)14.915.014.111.510.7
Dividend (c)13.013.011.09.59.0
Operating Cash Flow48,00628,92028,34521,22930,939
Cash Reserves (Net Debt)(28,513)(36,576)(30,719)(35,755)(26,903)
Total Assets283,642257,059252,025237,932228,004
Total Liabilities99,07978,66779,73978,68572,149
Net Assets184,563178,392172,286159,247155,855

SKELLERUP ANNUAL REPORT 2020
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SKELLERUP ANNUAL REPORT 2020
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SKELLERUP ANNUAL REPORT 2020
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Our Business
Strengths
14
2.
We focus on critical components
that are an essential part of a
more complex system
Our products are usually only a small
part of the total solution, but they are
critical. OEM customers prefer the
trusted Skellerup brand.
We build strong and deep
customer relationships
We work closely with customers,
particularly with OEMs, to be part of
their product innovation teams.
1.
3.
We apply our intellectual
know-how to new applications
Using relevant material expertise and
design methodologies, we rapidly
innovate, creating prototypes that enable
quick customer decision-making while
ensuring scalable production.
4.
We have a diverse and highly
experienced technical team
We are proud to have a diverse,
experienced, vibrant and international
team delivering product solutions for
customers in over 80 countries.
7.
We have world-class
manufacturing and distribution
We are renowned for our
world-class manufacturing and
distribution facilities and partners
in New Zealand, Australia, China,
Vietnam, UK, Italy and the US.
6.
We are utilising our natural
resources efficiently and
effectively
We are focused on reducing
our impact on the environment
through optimising our resources
and reducing waste.
5.
We have delivered strong
economic performance year
on year
We have a strong balance sheet,
low debt and a very good dividend
yield. We can maintain and grow
the business with relatively low
levels of capital expenditure.

SKELLERUP ANNUAL REPORT 2020
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SKELLERUP ANNUAL REPORT 2020
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Specialised
Solutions across Agri &
Industrial applications
Agriculture
Potable & Waste Water
(incl Plumbing)
Roofing & Construction
Electrical & Appliances
Sport & Leisure
Automotive &
Machinery
Exploration & Mining
Health & Medical
Other
Revenue by
Application
FY20
New Zealand
Australia
US
Other
Asia
Europe
UK & Ireland
Strong
Global Delivery
Geographical
Revenue FY20

SKELLERUP ANNUAL REPORT 2020
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Industrial
What we do
U-Dek Foam
Pipe-sealing
Gasket
S h o w e r
Valve Seal
We deliver critical components
and products used in a broad
range of systems.

17
Orthotic
Ski-boot LinerIce Maker Seat
Tap (Faucet)
Base Seal
Gas-valve
Diaphragm
Water Level
Sensor

Milking
Liner
Silicone
Tubing
The Red Band
Gumboot
SKELLERUP ANNUAL REPORT 2020
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We produce essential dairy
consumables and rubber footwear.
Agri
What we do

Fire Fighter
Extreme Gumboot
19
Master Blaster
Nozzle
Ambic JetStream
Teat Spray System

Our Brands
Quality industrial
co-moulded rubber
products for a broad range
of markets from major
automotive to end-user
industrial customers.
Engineered plastics and
rubber rings, joiners and
mouldings for the automotive,
industrial, water pipe, valve
and medical industries.
High-precision rubber and
plastic components for the
automotive, flow control,
appliance and industrial
markets.
Sealing and waterproofing
products for roofing,
plumbing and civil/
underground applications.
Cross-linked foam for
a range of applications
including marine, footwear
and leisure products.
Vacuum pump systems and
components used in truck
systems to extract liquid
waste and to transport
water for the oil and gas
extraction industry.
High-performance foam and
soft materials for healthcare,
electronics, construction and
comfort applications.
Live Wall System for
installation in new and
existing chutes to enhance
mine productivity.
Keeping potable water separate from grey water for
industrial applications. Leveraging our innovative
intellectual property across adjacent sectors.
Industrial
Division
Developing highly
specialised liquid silicone
rubber (LSR) componentry
for high-precision medical
and consumer products.
SKELLERUP ANNUAL REPORT 2020
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Our Brands
Design and manufacture
of food-grade dairy
rubberware including
liners and tubing.
Food-grade dairy liners
and tubing.
Distributor of premium
milk liners, tubing and
accessories.
Manufacture of on-farm,
in-line milk filters.
Premium food-grade
square liners for maximum
milking efficiency.
Specialist in the
development, production
and distribution of dairy
hygiene and livestock health
management products.
A true New Zealand icon
tried and tested for over
60 years.
RED BAND
Specialist footwear for the
farming, fire, forestry and
electricity markets.
World-leading essential dairy consumables,
safeguarding milk quality, animal health and welfare.
Delivering specialist footwear for the farming, fire,
forestry and electricity markets.
Agri
Division
Silicone tubing and fittings,
primarily for the dairy and
medical industry.
SKELLERUP ANNUAL REPORT 2020
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Sustainable
earnings growth
through strategic
acquisitions
The quality of Silclear’s
product, performance and
team of 16 employees
based in Hampshire in
the UK was demonstrated
in April 2020 when they
were awarded the Queen’s
Award for Enterprise –
International Trade, the
UK’s highest accolade for
business success.
Expanding our solutions for the global
dairy industry.
Business acquisitions are an important part of our strategy,
complementing our organic growth plans. A successful
acquisition provides a fast and reliable path for delivering
new or improved solutions for customers as well as new
opportunities for our employees, and ultimately contributes
to higher shareholder returns.
A considered approach to acquisitions
Achieving a successful acquisition is not straightforward,
and something we do not leave to chance. We take a prudent
approach, applying a robust process focused on three core
considerations:
• Will the acquisition target strengthen the quality
of solutions we can offer to our customers and in our
target markets?
• Does the acquisition target have robust technology and
skilled people?
• Can we acquire the acquisition target at a value we
believe to be fair, and are we confident we can make
the necessary changes to deliver the improvements
and growth required?
Silclear– a market leader with strong growth
opportunities
On 1 November 2019, we were delighted to acquire Silclear
Limited, strengthening our range of essential consumable
products for the global dairy industry.

SKELLERUP ANNUAL REPORT 2020
2323
Silclear designs and manufactures innovative silicone
rubber products and is well known for its food-grade
tubing, diaphragms, valves and liners. We see the strong
growth opportunity for silicone tubing in the dairy market
due to the superior durability, stability and performance the
material offers compared other tubing alternatives available
in the market.
Our analysis of a number of international silicone tubing
suppliers identified Silclear as the leader, providing us with
opportunities to strengthen our customer offering in the
global dairy market.
Delivering ahead of expectations
Silclear has been part of the Skellerup group for only eight
months yet is performing ahead of expectations. We have
product trials in progress with Skellerup Agri OEM customers
that we expect will deliver growth for FY21 and beyond.
We are confident we have a excellent team and, like many others
across the Skellerup Group their resilience and performance
proved this in dealing with the impacts of COVID-19.
In April, we were awarded the Queen’s Award for Enterprise
– International Trade. The award recognises the hard work,
commitment and contribution of everyone who has been part
of our team, particularly over recent years. In the current
environment, it is also a reminder of the progress we have
made and the opportunity we have to continue to develop and
deliver outstanding products to our customers, to ensure their
businesses continue to thrive.
Silclear Limited, Managing Director, Ian Bradbury

SKELLERUP ANNUAL REPORT 2020
24
Customer-driven
product
development
A key part of our business is providing
customers with essential engineered
products. Our focus is to work with our
customers, and often their customers as
well, to understand specific problems
and issues they face.
This approach means our product development is grounded
in a customer need in an established market. With a clear
definition of the issue we are working to solve, we can pull
together a development team which spans the specific skill
sets and experience required.
Proven expertise across four essential elements:
1. A deep understanding of material science, including
polymers (rubber and plastics) and metals
2. Knowledge and experience to turn those materials into
a specific product
3. Meeting exacting independent standards, such as food safety
and potable water standards across multiple jurisdictions
4. Product design that can be scaled for manufacturing
and assembly in a cost effective way.
Turning our expertise into a competitive advantage
These projects are technically challenging and require
specialist expertise across a range of skill sets. Skellerup is
renowned for the quality and expertise of our team across
each stage of the process. This provides us with our first
competitive advantage.
The second comes from our speed and precision.
We rapidly create product prototypes, working closely with
our customers to ensure decisions are made quickly at each
stage. Our prototypes meet the required internal and external
standards the first time around. Our intellectual property is
focused more on clever solutions across each stage of the
process rather than on securing patents and trademarks.
This customer-driven product development approach is used
for both the creation of our own branded products and those
for our Original Equipment Manufacturer (OEM) partners.

SKELLERUP ANNUAL REPORT 2020
2525
Customer-driven
product
development
Customer commitment to our R&D
Critical to our process is strong customer commitment.
Before we allocate our valuable resources we know we have
an established customer and market. Our customers provide
a financial contribution to the development and also ensure
they have an internal champion who can make decisions
throughout the process. This removes much of our research
and development risk.
Measuring success
The success of our approach is measured in three ways:
• Retention of existing customers with new products. At the
end of FY20, 17 of our top 20 customers when measured by
revenue were also in our top 20 in FY16. This demonstrates
the enduring relationships we have and our track record of
delivering excellent products which meet customer need.
• Winning new customers. To balance our strong customer
retention we also look to win new relationships. Three
of our top 20 customers have been won in the last four
years. Our reputation is strong and many of our current
opportunities have come through recommendations from
personnel who have moved from existing customers.
• Sustainable growth in revenue and earnings. Over the
past three years, Skellerup has delivered average revenue
growth on over 6 per cent per annum and average
earnings growth of more than 10 per cent per annum.
Our approach in action
A global leader in the supply of skin health and hygiene
solutions approached us to solve a problem they had with
failing rubber diaphragms in a pump system. They came
to us as one of the customer’s engineers who had worked
successfully alongside Skellerup at a previous company.
Our team were able to diagnose the failure of several rubber
parts, resolving a long-standing issue for the customer,
designing and delivering a prototype solution that proved
successful. In a period of 45 days we completed the compound
development and the customer tested and validated the
samples we delivered.
This success resulted in an expanded project to address issues
the customer was having with other components in the pump.
We have now designed and manufactured a fully assembled
pump incorporating seven separate engineered rubber and
plastic components. Our solution has both resolved a problem
with a failing part and removed complexity for the customer by
delivering a total solution. Within the next two years we expect
this customer will become one of our largest customers.
Our product
development is grounded
in a customer need in an
established market

SKELLERUP ANNUAL REPORT 2020
26
A strength of Skellerup is
the diverse experience and
talent across our global
operations. We are a team of
800 technicians, chemists,
engineers, marketers, process
workers, and other support
staff on the ground in the UK,
Europe, the Americas, Asia,
Australia and New Zealand.
Responding to COVID-19 with
global collaboration
Our response to COVID-19 demonstrated
the commitment of our people, their ability
to collaborate effectively, and to leverage
our international presence. We were able to
quickly adopt and adapt proven practices
around the world. Our China and Italian
businesses were the first to face the effects
of COVID-19 and were fast to establish new
operational processes to ensure the safety
of our people, partners and customers.
The learnings and decisions made in these
jurisdictions helped shape the subsequent
approach in our other locations.
Experience, education and
new energy
Our leaders and teams’ industry experience
is invaluable to both Skellerup and our
customers. This deep knowledge ensures
we understand our customers problems
and can design and manufacture solutions
that work. Sustaining and enhancing this
capability is critical to our future success.
Continuous education and the injection
of new people into our teams brings new
thinking and innovative solutions.
In FY20, as in past years, we supported a
number of our people with further learning
and development. The programmes provide
them with skills and knowledge to become
better leaders and contributors to our
business now and in the future.
We ensure our team are supported to have
rewarding careers at Skellerup. We value a
mix of long serving and new talent to ensure
diversity of experience and thought. This year
we farewelled to some long serving team
members, with John Craig and Cushla Smith
retiring after more than 40 years with us. We
want to thank them for their hard work and
dedication over such a significant period.
Experienced,
talented and
resilient
global team

SKELLERUP ANNUAL REPORT 2020
27
1
The TIR (Total Injury Rate) is the total number of Serious Harm Injuries, Lost Time Injuries and Medically Treated Injuries multiplied by
2,000 (the estimated annual hours worked by an individual), divided by the actual hours worked and expressed as a percentage.
The TIR represents the percentage likelihood of being injured. Zero TIR is the benchmark that we are striving to achieve.
We have welcomed some notable new
leaders in FY20. In September 2019,
Hayley Gourley joined Skellerup to head
our Agri Division, bringing substantial
practical and economic industry
experience to the Group. In November
2019, Ian Bradbury and his team of 16
joined the Group when we acquired
Silclear. We are delighted to have a well-
lead team with proven capability to supply
innovative silicone rubber products to
key customers in the Agri industry.
Committed to health and safety
We are committed to providing a healthy
and safe environment for our people.
Our leaders continue to embrace this
commitment and lead by example. Our
ultimate target will always be zero harm.
FY20 provided some additional challenges
as a result of COVID-19 that demanded
significant changes in operational layout
and shift patterns particularly for our
manufacturing sites.
We were quick to implement these
changes to ensure our teams and our
service providers could operate safely as
we continued to manufacture products for
the essential service industries we supply.
Our success in executing these changes
while improving our health and safety
performance is testament to our leaders
and teams.
For FY20 we did not suffer any serious
harm injuries and our TIR
1
of 1.33 was a
significant improvement on the 1.47 we
recorded in FY19. In June 2020 our largest
facility at Wigram, Christchurch was
assessed by a routine WorkSafe inspection.
WorkSafe reported that they considered
the site to be exemplary and no corrective
actions or improvement suggestions were
issues. This is the standard we have and will
continue to set at Skellerup.

SKELLERUP ANNUAL REPORT 2020
28
The culture of sustained
innovation to drive growth
continues in Skellerup
today all over the world.

SKELLERUP ANNUAL REPORT 2020
29
Environment
Skellerup’s origins date
back to 1910 when George
Skellerup opened his first
retail store in Christchurch
from which he sold products
including rubber goods
for the dairy industry in
New Zealand.
The culture of sustained innovation to drive
growth continues in Skellerup today all over
the world. As highlighted throughout this
report our future success will come from
innovative solutions that solve customer
problems. Innovation and improvement are
also key to how we operate our facilities
across the world. Part of this is a focus on
using resources as efficiently as possible and
minimising waste. By implementing actions
and changes to improve efficiency, use and
consume only the resources necessary, and
reduce waste, we will continue to create a
platform where Skellerup can to succeed,
generate opportunities for our people, and
benefits for our shareholders.
Over the past few years, we have made a
number of substantial improvements to not
only reduce our environmental impact and
improve Health & Safety concerns, but also
reduce costs including:
• Process improvements at our manufacturing
facilities across the world resulting in a
substantial reduction in rejected product
and waste. At our largest and newest
facility in Wigram, Christchurch we have
delivered consecutive improvements since
its opening in November 2016 to deliver a
cumulative gain of more than 60 per cent.
• Product tooling improvements to reduce
material waste and reduce energy used
(relative to each product produced).
At our engineering plastic development
and manufacturing facility in Auckland,
we reduced waste by 90 per cent on an
engineered plastic seal used by one of the
world-leading tap hardware companies.
• Packaging improvements to eliminate the
use of single-use plastic material. At our
Wigram facility, we have eliminated the
use of over 300,000 plastic bags per year.
• Investing in a reticulation system at our
largest site Wigram to recycle water used
in the manufacturing process reducing
consumption by over 90 per cent.
• Replacing our coal-fired boiler with a
natural gas boiler at our facility in Jiangsu,
China, generating a reduction in annual
CO2 emissions of greater than 35 per
cent and reducing sulphur dioxide and
nitrogen oxide emissions.
Over the past six months, we have
invested time measuring our scope 1
and 2 greenhouse gas (GHG) emissions
generated from the consumption of
electricity, natural gas and diesel.
• 40 per cent of our GHG emissions are
generated from our Wigram facility,
so our priorities are primarily focused
on this site. We have several initiatives
underway including reducing the
nominated maximum electrical capacity
of the facility, changes in settings to our
water reticulation system, replacing
lighting with more energy efficient LED
systems (providing better lighting for our
workers) and reviewing the efficiency of
key items of plant and equipment. We are
targeting a reduction of 5 per cent over
the next 12 months.
• Around 10 per cent of our GHG emissions
across our global facilities are generated
from the use of diesel. We are reviewing
the options to convert the plant and
vehicles reliant on this fuel to natural gas
or elec t r ic it y.

SKELLERUP ANNUAL REPORT 2020

SKELLERUP ANNUAL REPORT 2020
30
Board of Directors
Elizabeth (Liz) Coutts (ONZM, BMS, FCA, CFIOD)
Independent Chair
Elizabeth was appointed Chair in January 2017. Liz has held an extensive range of governance roles in both
the private and public sector for more than 20 years, including being a past President of the Institute of
Directors, member of the Monetary Policy Committee of the Reserve Bank of New Zealand and the Financial
Reporting Standards Board of the Institute of Chartered Accountants in New Zealand. Her contribution to
governance was acknowledged with her appointment to the New Zealand Order of Merit (ONZM) in 2016.
She is the Chair of Ports of Auckland, Oceania Healthcare Limited and EBOS Group Limited and member of
the Marsh New Zealand Advisory Board. Liz joined the Board in May 2002 and is a member of the Audit and
Risk Management, Remuneration and Nomination Committees. www.Iizcoutts.co.nz
David Cushing (BCOM, ACA)
Independent Director
David was appointed to the Skellerup Holdings Board in August 2017. David Cushing is a former investment
banker with over 20 years’ experience as a director of listed companies. David has expertise across a broad
range of industries having previously been a director of horticultural business Fruitfed Supplies Limited, Williams
& Kettle Limited, Tourism Holdings Limited, Acurity Health Group Limited and property company NPT Limited.
David is currently Executive Chairman of Rural Equities Limited and Managing Director of private investment
company H&G Limited. He is also a director of Red Steel Limited and a director of PGG Wrightson Limited.
David is a member of the Audit & Risk Management and Remuneration Committees, Nomination Committee.
John Strowger LLB (HONS)
Independent Director
John was appointed to the Skellerup Holdings Board in March 2015. John is a leading commercial lawyer
who specialises in corporate, contract and securities law and mergers & acquisitions. He was named NZ
Deal Maker of the Year at the 2019, 2017 and 2015 Australasian Law Awards. A partner at Chapman Tripp,
John co-heads that firm’s China desk, which coordinates the work it does pertaining to investment and trade
between China and New Zealand. John is Chair of the Health and Safety Committee and a member of the
Audit and Risk Management Committee.
David Mair (BE, MBA)
Executive Director
David was appointed to the Board in November 2006, and as CEO in August 2011. David’s background in
new product development and new market development provides an excellent fit with the growth plans
for Skellerup. David also has wide-ranging international operational experience proving invaluable to the
Company’s global manufacturing and distribution base. David has previously been an Executive Director
of Interlock Group; Vice President of Asia Pacific Operations and an Operations Council Member of ASSA
ABLOY (Sweden). He is currently a Director of Forte Funds Management Limited.
Alan Isaac (CNZM, BCA, FCA)
Independent Director
Alan was appointed to the Skellerup Holdings Board in August 2016. Alan has considerable experience
governing and leading businesses and sporting organisations. Notably, Alan was Chairman of KPMG NZ
for 10 years until 2006, is a past Chairman of Cricket NZ and past President of the International Cricket
Council. Alan is currently Chairman of the New Zealand Community Trust. He is also a director of Oceania
Healthcare Limited and Scales Corporation Limited. In June 2019, Alan was appointed as President of
Institute of Directors. Alan is Chair of the Audit and Risk Management Committee and also a member of the
Remuneration Committee, and Nomination Committee.

SKELLERUP ANNUAL REPORT 2020
31

SKELLERUP ANNUAL REPORT 2020
Skellerup’s Skills Matrix

Manufacturing &
Supply Chain
i. Experience as a leader
or advisor for a business
with substantial
manufacturing capability
ii. Experience as a leader
or advisor dealing with
international contract
manufacturers and
contracts
iii. Experience as a leader
in international logistics
and supply chain
iv. Understanding of
contractual arrangements
with large OEM
customers (protection of
IP, counterparty style and
approach, risk)

Technology
i. Understanding of
the opportunity
and risks provided
by technological
development and
disruption, and
development and
protection of IP

International
i. Experience as a leader
or advisor for a business
with a substantial
presence in global
markets including
understanding commodity
and financial markets
ii. Experience as a leader
or advisor for a business
with a substantial OEM
customer base
iii. Experience as a leader
or advisor for a business
with a strong range of
branded products

Growth
i. A track record of
developing and
implementing a
successful and
sustainable strategy
of growth in business

Agriculture
i. Experience and
understanding of
the dynamics of the
international and
domestic agriculture
(in particular dairy)
market

Infrastructure
i. Experience and
understanding of
customers, products
and risks associated
with infrastructure
for potable water,
construction, automotive
and general applications

Governance
i. Commitment to the
highest standard of
governance
ii. Prior Board experience
(ideally NZX50
or equivalent) or
experience as Executive
or advisor to Board for
at least 5 years
iii. Ability to assess
effectiveness of senior
management

Finance & Accounting
i. Senior Executive or
Board experience in
international finance,
accounting, reporting,
controls and taxation

Risk Management
i. Experience in
developing or
overseeing an
appropriate risk
framework and culture
ii. Experience in
evaluating and
managing financial and
non-financial risks

Capital Markets
i. Experience with equity
and debt markets and
capital structuring
ii. Experience with
mergers, acquisitions
and dispositions and
investment analysis
iii. Experience and
understanding of
dealing with investors
and the investment
community

Regulatory
i. Understanding of the
regulatory environment
of Skellerup’s business

Human Resources
i. Experience in leading
teams and with best-
practice development,
performance and
remuneration structures
for international
business

Health & Safety
i. Understanding of health
and safety requirements
and management for a
global business
1. Core
2. Markets & Customers
3/5
1. Core2. Markets & Customers
3.
Manufacturing,
Supply Chain
& Technology
3. Manufacturing, Supply Chain & Technology

Finance & Accounting


Regulatory


Agriculture


Infrastructure


Manufacturing & Supply Chain


Governance


Risk Management


Capital Markets


Health & Safety


Growth


Human Resources


International


Technology

5/55/55/55/55/55/5
3/53/5
4/54/5
4/5
4/5

SKELLERUP ANNUAL REPORT 2020
32
Corporate
Governance
This section of the Annual Report outlines our corporate
governance structures and processes, and how they have
been applied during the year.
Skellerup’s Board and management are committed to achieving high standards of corporate
governance. We believe this is central to the effective management of the business and to
maintaining the confidence of our shareholders. The Board and management are focused on
ensuring the long-term success of the Company and are committed to building long-term
shareholder value.
The Board regularly reviews and assesses Skellerup’s governance policies, procedures
and practices to ensure they are appropriate and effective. Skellerup reports against the
recommendations of the NZX Corporate Governance Code (NZX Code) as required by the
NZX Listing Rules.
Our approach for the financial year ended 30 June 2020 is detailed below.
Principle 1 – Code of Ethical Behaviour
Skellerup complies with the recommendations of Principle 1.
Skellerup Directors set high standards of ethical behaviour and require members of the
management team to conduct themselves similarly; they hold management accountable for
delivering these standards throughout the organisation.
Skellerup’s Code of Ethics provides a framework of minimum standards of ethical behaviour
according to which Directors, management and all employees of the Company are expected
to conduct themselves. The Code of Ethics outlines the Company’s expectations for all
Company personnel and includes consideration of conflicts of interest, conduct, legislative
compliance, confidentiality and the use of the Company’s assets and information.
Skellerup communicates its Code of Ethics to Directors and employees, explaining the
Code’s purpose and the mechanism for reporting any unethical behaviour. The CEO
reviews this Code with all Group and Business Managers annually. The Managers in turn
are required to review with staff and confirm that they have done so to the Chief Executive
Officer (CEO). Skellerup has not received any reports of serious instances of unethical
behaviour during the year.
Skellerup is committed to ensuring its Directors and employees understand its policy
on and rules for dealing in Skellerup ordinary shares or any other derivatives thereof.
Skellerup’s Financial Products Trading Policy notes that insider trading is always prohibited
and provides examples of material information to assist Directors and employees with
compliance. It imposes further restrictions on Directors and senior management and permits
trading only in prescribed trading windows or with consent.

SKELLERUP ANNUAL REPORT 2020
33
Principle 2 – Board Composition and Performance
Skellerup complies with the recommendations of Principle 2.
The members of Skellerup’s Board collectively provide the broad range of strategic,
business, commercial and financial skills and knowledge, and the independence and
experience required to lead and govern the Company effectively.
The Board regularly reviews its performance and composition to ensure it has the range of
capabilities required. During FY20 Skellerup’s Board appointed an external adviser to assist
with the identification of a potential additional director to provide succession and continuity
for the Group. A shortlist of candidates was presented to Skellerup’s Board; however,
progress was delayed for some time due to potential appointees being unable to undertake
due diligence due to COVID-19 restrictions. The process has now resumed.
Currently, the Board comprises four non-executive, independent Directors and one executive
Director. The independence of Directors is reconsidered at least annually. Skellerup’s Board
most recently reviewed each director’s independence status at its Board Meeting on 24
June 2020. Having regard to the NZX Listing Rules and the NZX Code, all four non-executive
directors have been determined to be independent. See pages 30 and 31 for more information
on the tenure, skills and experience of Skellerup’s current Board. The independent status of
each Director is noted also on page 30.
Board procedures ensure that all Directors have the information needed to contribute
to informed discussion and decisions on a consistent basis and to carry out their duties
effectively. Senior managers make direct presentations to the Board as required to give
the Directors an understanding of management strategies, priorities, style and capabilities.
Directors also visit Skellerup’s facilities throughout the world as part of their ongoing
engagement to ensure they are familiar with all aspects of the Company. Training is made
available to Directors and in the last financial year Directors participated in training on a
wide range of topics.
Skellerup has a written Diversity Policy in place. Diversity in Skellerup includes (but is not
limited to) gender, race, ethnicity and cultural background, disability and physical capability,
age, sexual orientation, and religious or political belief. A gender composition table of the
Skellerup Directors, officers and management is included on page 81. Skellerup maintains a
merit-based environment which provides equal opportunity for development and recognition
based on performance and a flexible and inclusive work environment that values differences
that create value. Skellerup remunerates equivalent roles in an equitable manner.
Skellerup’s Diversity Policy requires measurable objectives to be set by the Board and
reviewed annually. For FY20 Skellerup set measurable objectives and made progress
against them as follows:

SKELLERUP ANNUAL REPORT 2020
34
1. No discrimination
Skellerup aims to operate an inclusive workplace where employees are not discriminated
against on the grounds of gender, gender identity, sexual orientation, colour, race/ethnicity/
cultural background, disability, age, religious beliefs. In FY20 Skellerup adopted a target of
zero complaints/findings of harassment, discrimination or victimisation. No such incidents
were reported in FY20.
2. Flexible workplace environment
Skellerup aims to provide a workplace that accommodates flexible working arrangements as
a means to encourage diversity of its workforce. In FY20 the Company undertook to review the
flexible workplace environment arrangements currently provided and identify any improvements
required. That review identified that current flexible workplace arrangements are working well
and continue to be implemented throughout the Group where suitable to meet the needs of the
business and the circumstances of employees. The review led to a formal Working from Home
Policy being adopted in April 2020, coinciding with the period when restrictions on movement
were imposed as a result of the COVID-19 pandemic.
3. Pay equity
Skellerup is committed to ensuring all of its employees are paid equitably. In August 2019
as part of Skellerup’s annual salary review management undertook to ensure all roles are
clearly defined, and based the review on relevant skills, experience, responsibility, effort and
performance independent of the person in the role. No issues arose from this review.
Principle 3 – Board Committees
Skellerup complies with the recommendations of Principle 3.
The Board has appointed four Board Committees to assist in carrying out its responsibilities
effectively, each of which operates under a written charter. The Board regularly reviews the
performance of each standing Committee against its specific written charter. The delegated
responsibilities, powers and authorities of these Committees are described below.
1. Audit and Risk Management Committee
This Committee currently comprises four non-executive, independent Directors, one
of whom is appointed as Chair. The CEO and the Chief Financial Officer (CFO) attend as
ex-officio members at the invitation of the Committee; the external auditors attend by
invitation of the Chair.
This Committee meets a minimum of four times each year. Its responsibilities are to:
• Ensure that the Company has adequate risk management controls in place
• Advise the Board on accounting policies, practices and disclosure
• Review the scope and outcome of the external audit
• Review the annual and half-yearly statements prior to approval by the Board.
The Audit and Risk Management Committee reports the proceedings of each of its meetings
to the full Board.

SKELLERUP ANNUAL REPORT 2020
35
The current composition of the Committee is Alan Isaac (Chair), Elizabeth Coutts,
John Strowger and David Cushing.
2. Health and Safety Committee
This Committee comprises four non-executive, independent Directors, one of whom is
appointed as Chair, plus the Executive Director. The CFO also attends meetings as an
ex-officio member.
This Committee meets a minimum of three times each year. Its responsibilities are to:
• Provide leadership and policy for Health and Safety (H&S) management within the
Skellerup Group
• Advise the Board on H&S strategy and policy and specify targets to track performance
• Review management systems to ensure that they are appropriate to manage hazards and
risks of the business
• Monitor and review performance by specifying and receiving timely reports on incidents,
investigations and resultant actions and with the assistance of internal and external audits.
The H&S Committee reports proceedings of each of its meetings to the full Board.
The current composition of the Committee is John Strowger (Chair), Elizabeth Coutts,
Alan Isaac, David Cushing and David Mair.
3. Remuneration Committee
This Committee comprises three non-executive, independent Directors, one of whom is
appointed as Chair. It meets as required to:
• Review the remuneration packages of the CEO and senior managers
• Make recommendations to shareholders in relation to non-executive Directors’ fee pools.
Remuneration packages are reviewed annually. Independent external surveys are used
as a basis for establishing competitive packages. Management only attend Remuneration
Committee meetings at the invitation of the Committee.
The current composition of the Remuneration Committee is Elizabeth Coutts (Chair),
Alan Isaac and David Cushing.
4. Board Nomination Committee
This Committee comprises three non-executive Directors, one of whom is appointed as Chair.
It meets as required to recommend new appointments to the Board.
Board composition is regularly reviewed by the full Board and the Committee to ensure the
collective skillset is appropriate for the Group and to provide continuity and succession.
The current composition of the Board Nomination Committee is Elizabeth Coutts (Chair),
Alan Isaac and David Cushing.

SKELLERUP ANNUAL REPORT 2020
36
Skellerup has a formal Takeover Response Policy in place. The purpose of the Policy is to ensure
that Skellerup is well prepared for an approach and, therefore, it will be better able to control
the takeover response process and respond to any approach in a professional, timely and
coordinated manner and in the best interests of Skellerup and its shareholders.
Principle 4 – Reporting and Disclosure
Skellerup complies with the recommendations of Principle 4.
The Board demands integrity in financial reporting and in the timeliness and balance of
information disclosed.
The financial progress of Skellerup’s two divisions is reported separately to the Board each month
to enable divisional financial performance to be reviewed in the context of the Company’s strategies
and objectives. Monthly reporting also provides information on H&S, key opportunities, personnel,
customers and risks facing the business, and the steps being taken to optimise outcomes.
The Audit and Risk Management Committee oversees the quality and integrity of external
financial reporting, including the accuracy, completeness and timeliness of financial statements.
The Company seeks to provide clear, concise financial statements and recognises the value of
providing shareholders with financial and non-financial information including environmental,
economic and social sustainability risk management as reported in this Annual Report.
Management accountability for the integrity of the Company’s financial reporting is reinforced in
writing by certification of the CEO and CFO that the financial statements fairly present the financial
results and position of the Company.
The Company has a written Continuous Disclosure Policy and clear processes in place to ensure
compliance with the continuous disclosure requirements that come with being a listed company.
Skellerup’s Code of Ethics, Board and Committee Charters, Continuous Disclosure Policy and other
key governance documents are published on its website at www.skellerupholdings.com.
Principle 5 – Remuneration
Skellerup complies with the recommendations of Principle 5.
The remuneration of Directors and executives is transparent, fair and reasonable.
The Board’s Remuneration Committee is responsible for reviewing remuneration packages of
the CEO and senior managers and making recommendations to shareholders in relation to non-
executive Directors’ remuneration.
Board and Committee Attendance 1 July 2019 to 30 June 2020
DirectorBoardAudit & RiskHealth & SafetyRemunerationNomination
Liz Coutts11 of 115 of 53 of 32 of 22 of 2
Alan Isaac11 of 115 of 53 of 32 of 22 of 2
John Strowger10 of 114 of 53 of 3N/AN/A
David Cushing10 of 115 of 52 of 32 of 22 of 2
David Mair11 of 115 of 5*3 of 3N/AN/A
* David Mair attends Audit and Risk Management Committee meetings ex-officio at the invitation of the Committee.

SKELLERUP ANNUAL REPORT 2020
37
The current approved pool of remuneration available for the payment of non-executive
Directors is $550,000. This was approved by shareholders at the Annual Meeting on 26
October 2016. Non-executive Directors are paid a fixed cash fee. Non-executive Directors are
not part of any share scheme. In the year ended 30 June 2020, total fees paid to non-executive
Directors amounted to $460,000. Details of Director remuneration are shown on page 79.
Senior executives’ remuneration comprises a combination of fixed and at-risk components.
Payment of the at-risk component is linked to exceeding previous best annual financial
performance in the areas of the business for which each executive is responsible or, in some
circumstances, the achievement of specific projects. Total remuneration paid to the CEO in the
year ended 30 June 2020 and in the prior years, together with a description of the long-term
share-based incentive scheme in place for the CEO, is detailed on page 80.
Skellerup has a written Remuneration Policy in place for the remuneration of Directors,
officers and senior managers. This Policy outlines the remuneration principles that apply to
Directors, officers and senior managers of Skellerup to ensure that remuneration practices
are fair and appropriate for the organisation, and there is a clear link between remuneration
and performance. The guiding principles of this Policy are that the remuneration of Directors,
officers and managers will be transparent, fair and reasonable to meet the needs of the
business and shareholders.
Principle 6 – Risk Management
Skellerup complies with the recommendations of Principle 6.
Each Director has a sound understanding of the key risks faced by Skellerup.
The Board, advised by the Audit and Risk Management Committee, reviews the Company’s
Risk Management Report prepared by the CEO and management team on a semi-annual
basis and specific items are monitored on a monthly basis. The Risk Management Report
identifies key risks and strategies to manage these risks. The Board ensures that adequate
external insurance cover is in place appropriate to the Company’s size and risk profile.
The Audit and Risk Management Committee monitors the Company’s system of internal
financial control with the aid of reviews and reports prepared by external providers
and periodic certification by the CEO and CFO. This system includes clearly defined
policies controlling treasury operations and capital expenditure authorisation. The CFO
is responsible for ensuring that all operations within the Company adhere to the Board-
approved financial control policies.
The H&S Committee leads and monitors H&S management within the Skellerup Group.
The Company operates a comprehensive H&S framework across all of its businesses to
identify and address workplace hazards and to monitor and review compliance with H&S
policies and procedures. Board review of H&S is a priority and is facilitated by both the
activities of the H&S Committee and the receipt and review of H&S reports at each Board
meeting. Details of Skellerup’s key H&S risks and its performance for the year ended 30
June 2020 are included on page 27.

SKELLERUP ANNUAL REPORT 2020
38
Principle 7 – Auditors
Skellerup complies with the recommendations of Principle 7.
The Board ensures the quality and independence of the external audit process, which culminates in
the audit report issued in relation to the annual financial statements.
The Board has an established framework for Skellerup’s relationship with its auditors and to ensure
independence of the Company’s external auditor is maintained, a written Audit Independence
Policy has been implemented. The Policy sets out guidelines to be followed to ensure that related
assurance and other services provided by Skellerup’s auditors are not perceived as conflicting with
the independent role of the auditor. The Audit and Risk Management Committee approves any non-
audit services that are provided by the external auditor. The Audit and Risk Management Committee
meets regularly with the external auditors and management.
Skellerup’s external auditor is Ernst & Young (EY) and was reappointed by shareholders at the 2019
Annual Meeting in accordance with the Companies Act 1993. The audit partner responsible for the
Skellerup audit was appointed during the year ended 30 June 2018.
Skellerup maintains an internal audit function with the assistance of PwC. Skellerup reviews the
residual risks from its semi-annual Risk Management Report to determine priorities for consideration
for internal audit review with the assistance of PwC.
The significant issues and judgements considered by the Audit and Risk Management Committee
are disclosed in Note f on page 50 of the financial statements.
Principle 8 – Shareholder Rights & Relations
Skellerup complies with the recommendations of Principle 8.
The Board aims to ensure that shareholders are kept informed of developments affecting the
Company and encourages shareholders to engage with the Company. Information is communicated
to shareholders through the annual and interim reports, and periodic and continuous disclosure to
the NZX, and at Annual Meetings.
The Board encourages shareholders to attend and participate fully at Annual Meetings to ensure
they exercise the opportunity to ask questions about the Company and its performance.
The Company also maintains information for shareholders on its website (www.skellerupholdings.
com). This includes a description of Skellerup’s business and structure, copies of key corporate
governance documents and all information released to the NZX.
The Board respects the interests of all stakeholders in the Company. Skellerup strives to manage
its business in a manner that delivers long-term shareholder value by delivering consistent
quality solutions for customers, a work environment that is safe and delivers development
opportunities for its employees and meets or exceeds the compliance requirements in the
environments in which the Company operates.

39
Consolidated
Financial Statements
for the year ended 30 June 2020

A member firm of Ernst & Young Global Limited




Independent auditor’s report to the Shareholders of Skellerup Holdings Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Skellerup Holdings Limited (“the company”) and its
subsidiaries (together “the group”) on pages 44 to 78, which comprise the consolidated balance sheet of
the group as at 30 June 2020, and consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated cash flow
statement for the year then ended of the group, and the consolidated notes to the financial statements
including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 44 to 78 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2020 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand equivalents
to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the company's shareholders, as a body. Our audit has been undertaken so
that we might state to the company's shareholders those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's shareholders, as a body, for
our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Other than in our capacity as auditor we have no relationship with, or interest in, the company or any of
its subsidiaries. Partners and employees of our firm may deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. We have no other relationship with, or
interest in, the group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
A member firm of Ernst & Young Global Limited




Independent auditor’s report to the Shareholders of Skellerup Holdings Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Skellerup Holdings Limited (“the company”) and its
subsidiaries (together “the group”) on pages 44 to 78, which comprise the consolidated balance sheet of
the group as at 30 June 2020, and consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated cash flow
statement for the year then ended of the group, and the consolidated notes to the financial statements
including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 44 to 78 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2020 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand equivalents
to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the company's shareholders, as a body. Our audit has been undertaken so
that we might state to the company's shareholders those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's shareholders, as a body, for
our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Other than in our capacity as auditor we have no relationship with, or interest in, the company or any of
its subsidiaries. Partners and employees of our firm may deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. We have no other relationship with, or
interest in, the group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
40

A member firm of Ernst & Young Global Limited




misstatement of the financial statements. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated financial statements.
Scoping of the audit
Why significant How our audit addressed the key audit matter
Skellerup is a global business with over
75% of the group’s revenue generated in
countries other than New Zealand.

A significant area of focus when
conducting the audit was assessing that
sufficient audit evidence was obtained in
differing geographic locations and
businesses to enable us to reach our
opinion on the consolidated financial
statements as a whole. This was both with
respect to the determination and
allocation of materiality as well as the
determination of the nature and extent of
procedures to be performed at each
location.
The global economy and thus Skellerup
have been impacted by the COVID-19
global pandemic. We
requested audit
teams in all significant locations (“the
component teams) to consider impacts on
financial reporting associated with the
COVID-19 outbreak and report their
findings to us.
As the coordinating primary team (“group audit team”), EY New
Zealand assigned a scope to each component team in all
significant locations. Consideration was given to the nature, size
and risks associated with each of the g
roup’s significant
businesses.

As a result of this assessment, each business was allocated a
scope and materiality reflecting the business profile.

The group audit team communicated to the component audit
teams the significant risk areas to be considered and the
information to be reported back to the group audit team. The
component and group teams then determined the extent and
nature of audit procedures to be performed in accordance with
International Standards on Auditing (New Zealand).

In order to obtain sufficient coverage of g
roup balances, a
number of smaller business units were subjected to analytical
procedures by the Group audit team.

All component teams were required to provide written
confirmation to the group audit team explaining the work
performed, the results of that work as well as key documents
supporting any significant findings or observations.

The group audit team held several discussions with Skellerup
management and component teams in all locations (New
Zealand, Australia, Italy, USA, UK and China). During these
discussions, the work performed by each team was assessed,
and the key judgements were discussed, as were the findings
relevant to the group audit.

In addition, we made enquiries of component teams in respect
to financial reporting matters that may have been affected by
COVID-19. These included the adequa
cy of the provision for
expected credit losses, government subsidies as well as any
additional financial reporting risks identified because of the
pandemic and the audit
procedures performed to address these.

We reported to the Audit Committee:
i) The results of audit procedures and testing performed by both
the group and components teams; and
ii) Any misstatements identified that warrant reporting based on
quantitative or qualitative grounds.
A member firm of Ernst & Young Global Limited




Independent auditor’s report to the Shareholders of Skellerup Holdings Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Skellerup Holdings Limited (“the company”) and its
subsidiaries (together “the group”) on pages 44 to 78, which comprise the consolidated balance sheet of
the group as at 30 June 2020, and consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated cash flow
statement for the year then ended of the group, and the consolidated notes to the financial statements
including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 44 to 78 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2020 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand equivalents
to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the company's shareholders, as a body. Our audit has been undertaken so
that we might state to the company's shareholders those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's shareholders, as a body, for
our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Other than in our capacity as auditor we have no relationship with, or interest in, the company or any of
its subsidiaries. Partners and employees of our firm may deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. We have no other relationship with, or
interest in, the group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
41

A member firm of Ernst & Young Global Limited




Information other than the financial statements and auditor’s report
The directors of the company are responsible for the Annual Report, which includes information other
than the consolidated financial statements and auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained during the audit, or otherwise appears
to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the financial statements
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the
consolidated financial statements in accordance with New Zealand equivalents to International Financial
Reporting Standards and International Financial Reporting Standards, and for such internal control as the
di rectors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing on behalf
of the entity the group’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the directors either intend to
liquidate the group or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with International Standards on Auditing (New Zealand) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the consolidated financial statements
is located at the External Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-
practitioners/auditors-responsibilities/audit-report-1/. This description forms part of our auditor’s
report.
The engagement partner on the audit resulting in this independent auditor’s report is Simon O’Connor.



Chartered Accountants
Auckland
21 August 2020
A member firm of Ernst & Young Global Limited




Independent auditor’s report to the Shareholders of Skellerup Holdings Limited
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Skellerup Holdings Limited (“the company”) and its
subsidiaries (together “the group”) on pages 44 to 78, which comprise the consolidated balance sheet of
the group as at 30 June 2020, and consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated cash flow
statement for the year then ended of the group, and the consolidated notes to the financial statements
including a summary of significant accounting policies.
In our opinion, the consolidated financial statements on pages 44 to 78 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2020 and its consolidated
financial performance and cash flows for the year then ended in accordance with New Zealand equivalents
to International Financial Reporting Standards and International Financial Reporting Standards.
This report is made solely to the company's shareholders, as a body. Our audit has been undertaken so
that we might state to the company's shareholders those matters we are required to state to them in an
auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company's shareholders, as a body, for
our audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 International
Code of Ethics for Assurance Practitioners (including International Independence Standards) (New
Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Other than in our capacity as auditor we have no relationship with, or interest in, the company or any of
its subsidiaries. Partners and employees of our firm may deal with the group on normal terms within the
ordinary course of trading activities of the business of the group. We have no other relationship with, or
interest in, the group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
42

Directors’
Responsibility
Statement
for the year ended 30 June 2020
The Directors are pleased to present the Group
financial statements of Skellerup Holdings Limited for
the year ended 30 June 2020.
The Group financial statements are dated 21 August
2020 and are signed in accordance with a resolution
of the Directors made pursuant to section 211 of the
Companies Act 1993.
For and on behalf of the Directors
The Directors are responsible for the preparation,
in accordance with New Zealand law and generally
accepted accounting practice, of financial statements,
which give a true and fair view of the financial position
of the Skellerup Holdings Limited Group as at 30 June
2020, and the results of their operations and cash flows
for the year ended 30 June 2020.
The Directors consider that the financial statements
of the Group have been prepared using accounting
policies appropriate to the Group’s circumstances,
consistently applied and supported by reasonable
judgements and estimates, and that all applicable
New Zealand Equivalents to International Financial
Reporting Standards have been followed.
The Directors have responsibility for ensuring that proper
accounting records have been kept which enable, with
reasonable accuracy, the determination of the financial
position of the Group and enable them to ensure that the
financial statements comply with the Financial Reporting
Act 1993.
The Directors have responsibility for the maintenance of a
system of internal control designed to provide reasonable
assurance as to the integrity and reliability of financial
reporting. The Directors consider that adequate steps have
been taken to safeguard the assets of the Group and to
prevent and detect fraud and other irregularities.
EM Coutts

Independent Chair
AR Isaac
Independent Director
43

Income Statement
for the year ended 30 June 2020

Note
2020
$000
2019
$000
Revenue2251,389 245,792
Cost of sales(155,115)(152,917)
Gross profit96,274 92,875
Other income42,491 381
Distribution expenses(14,038)(12,862)
Marketing expenses(20,622)(21,073)
Administration expenses(21,619)(17,523)
Profit for the year before tax, finance costs and share of
profit of associates
42,486 41,798
Finance costs16(2,582)(1,785)
Share of net profit of associates accounted for using the equity method(73)23
Profit for the year before tax39,831 40,036
Income tax expense5(10,767)(10,973)
Net after-tax profit for the year, attributable to owners of the Parent29,064 29,063
Earnings per share
Basic earnings per share (cents)1914.92 14.96
Diluted earnings per share (cents)1914.80 14.80
The above Income Statement should be read in conjunction with the accompanying notes.
SKELLERUP ANNUAL REPORT 2020
44

Statement of Comprehensive Income
for the year ended 30 June 2020

Note
2020
$000
2019
$000
Net profit after tax for the year29,06429,063
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net gains/(losses) on cash flow hedges1761735
Income tax related to gains/(losses) on cash flow hedges5(17)(206)
Foreign exchange movements on translation of overseas subsidiaries172,265(1,749)
Income tax related to gains/(losses) on foreign exchange movements of loans
with overseas subsidiaries5(109)37
Other comprehensive income net of tax2,200 (1,183)
Total comprehensive income for the year attributable to equity holders
of the Parent
31,26427,880
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
45

Balance Sheet
as at 30 June 2020

Note
2020
$000
2019
$000
Current assets
Cash and cash equivalents613,6179,639
Trade and other receivables and prepayments746,40550,759
Inventories852,09848,339
Income tax receivable741,465
Derivative financial assets22378310
Total current assets112,572 110,512
Non-current assets
Property, plant and equipment987,84691,296
Right-of-use assets921,811-
Deferred tax assets53,1252,822
Goodwill1054,90849,476
Intangible assets101,2171,057
Investment in associate1,7251,723
Derivative financial assets22438173
Total non-current assets171,070 146,547
Total assets283,642 257,059
Current liabilities
Trade and other payables1124,80622,995
Provisions124,8114,840
Income tax payable1,119960
Interest-bearing loans and borrowings13830-
Lease liabilities - short term144,544-
Derivative financial liabilities22440118
Total current liabilities36,550 28,913
Non-current liabilities
Provisions121,2831,406
Interest-bearing loans and borrowings1341,30046,215
Deferred tax liabilities52,0421,950
Lease liabilities - long term1417,772-
Derivative financial liabilities22132183
Total non-current liabilities62,529 49,754
Total liabilities99,079 78,667
Net assets184,563 178,392
Equity
Equity attributable to equity holders of the Parent
Share capital1572,17372,173
Reserves17(7,065)(9,490)
Retained earnings20119,455115,709
Total equity184,563 178,392
The above Balance Sheet should be read in conjunction with the accompanying notes.
SKELLERUP ANNUAL REPORT 2020
46

Statement of Changes in Equity
for the year ended 30 June 2020
Fully Paid
Ordinary
Shares
Cash Flow
Hedge
Reserve
Foreign
Currency
Translation
Reserve
Employee
Share Plan
Reserve
Retained
Earnings
Total
Note$000$000$000$000$000$000
Balance 1 July 201869,732(397)(8,059)471110,539172,286
Net profit after tax for the year ending
30 June 2019
----29,06329,063
Other comprehensive income-529(1,712)--(1,183)
Total comprehensive income for the year-529(1,712)-29,06327,880
Share incentive scheme2,441--(322)4512,570
Dividends----(24,344)(24,344)
Balance 30 June 201972,173132(9,771)149115,709178,392
Net profit after tax for the year ending
30 June 2020
----29,06429,064
Other comprehensive income17-442,156--2,200
Total comprehensive income for the year-442,156-29,06431,264
Share incentive scheme18---225-225
Dividends20----(25,318)(25,318)
Balance 30 June 202072,173176(7,615)374119,455184,563
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
47

Cash Flow Statement
for the year ended 30 June 2020

Note
2020
$000
2019
$000
Cash flows from operating activities
Receipts from customers258,378244,265
Interest received2614
Dividends received21
Payments to suppliers and employees(198,310)(203,880)
Income tax refund/(paid)(9,508)(9,695)
Interest and bank fees paid(1,644)(1,785)
Interest on right-of-use asset leases(938)-
Net cash flows from/(used in) operating activities48,006 28,920
Cash flows from investing activities
Proceeds from sale of property, plant and equipment441184
Payments for property, plant and equipment(3,944)(4,450)
Payments for intangible assets (439)(143)
Acquisition of a business, net of cash acquired(6,204)(6,663)
Payment for investment in associates -(1,674)
Net cash flows from/(used in) investing activities(10,146)(12,746)
Cash flows from financing activities
Proceeds from/(repayments for) loans and advances(4,082)5,823
Proceeds from issue of shares-2,422
Repayments of lease liabilities(4,671)-
Dividends paid to equity holders of Parent(25,318)(24,344)
Net cash flows from/(used in) financing activities(34,071)(16,099)
Net increase/(decrease) in cash and cash equivalents3,78975
Cash and cash equivalents at the beginning of the year9,6399,681
Effect of exchange rate fluctuations189(117)
Cash and cash equivalents at the end of the year613,617 9,639
The above Cash Flow Statement should be read in conjunction with the accompanying notes.
Reconciliation of net profit after tax to net cash flow from operations
2020
$000
2019
$000
Net profit after tax29,06429,063
Adjustments for:
Depreciation - property, plant and equipment7,2726,961
Depreciation and impairment - right-of-use assets5,228-
Amortisation267171
Loss on sale of property, plant and equipment2216
Impairment of property, plant and equipment67-
Foreign currency movements on translating foreign assets and liabilities508546
Bad debts written off28351
Increase in doubtful debts provided for195-
Share of profit in associates(73)23
Net movement in working capital5,173(7,911)
Net cash inflow from operating activities48,006 28,920
SKELLERUP ANNUAL REPORT 2020
48

Notes to the Financial Statements
Reporting Entity
Skellerup Holdings Limited (‘the Company’) is a limited liability company incorporated and domiciled in New Zealand. It is
registered under the Companies Act 1993 with its registered office at Level 3, 205 Great South Road, Greenlane, Auckland.
The Company is a Reporting Entity in terms of the Financial Markets Conduct Act 2013 and is listed on the New Zealand
Exchange (NZX Main Board) with the ticker SKL. These financial statements were authorised for issue in accordance with a
resolution of the directors on 21 August 2020.
(a) Nature of operations
The Skellerup Group of companies is a global solutions provider of technical polymer and elastomer products for a variety
of specialist industrial and agricultural applications. Skellerup’s operations are split into two units: the Agri Division, a world
leading provider of food grade dairy rubberware, filters, and animal health products to the global dairy industry; and the
Industrial Division, a global specialist for technically demanding products used in water, roofing, automotive, extraction,
appliance and health applications.
(b) Basis of preparation
These financial statements of the Group, a profit-oriented business, are for the year ended 30 June 2020.
(c) Statement of compliance
The consolidated financial statements for the year ended 30 June 2020 have been prepared in accordance with New Zealand
Generally Accepted Accounting Practices (NZ GAAP) and the requirements of the Financial Markets Conduct Act 2013. For
the purpose of complying with NZ GAAP, the Group is a for-profit entity. The financial statements comply with New Zealand
equivalents to International Financial Reporting Standards (NZ IFRS). The financial statements also comply with International
Financial Reporting Standards (‘IFRS’). The financial statements are presented in New Zealand dollars (NZD) and all values are
rounded to the nearest thousand dollars ($000).
The accounting principles recognised as appropriate for the measuring and reporting of profit and loss and financial position on
a historical-cost basis have been applied, except for derivative financial instruments, which have been measured at fair value.
The preparation of financial statements in accordance with NZ IFRS requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates. Critical accounting judgements, estimates and assumptions are detailed in Note (f).
(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 June 2020.
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the
Group has:
• Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• Exposure, or rights, to variable returns from its involvement with the investee; and
• The ability to use its power over the investee to affect its returns.
Business combinations are accounted for using the acquisition method. The consideration transferred in a business combination
is measured at fair value. Fair value is calculated as the sum of: the acquisition-date fair values of the assets transferred by
the Group; the liabilities incurred by the Group to former owners; the equity issued by the Group; and the amount of any
non-controlling interest in the acquiree. For each business combination, the Group measures the non-controlling interest in
the acquiree either at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related
costs are expensed as incurred.
In preparing the consolidated financial statements, all inter-company balances, income and expense transactions, and profit
and losses resulting from intra-Group activities, have been eliminated.
(e) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency that best reflects
the economic substance of the underlying events and circumstances relevant to that entity (the ‘functional currency’). The
consolidated financial statements are presented in New Zealand dollars (the ‘presentation currency’), which is the functional
currency of the Parent.
49

Transactions and balances
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies at the balance sheet date are translated to New Zealand dollars at the
foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income
statement, except when deferred in OCI as qualifying cash flow hedges.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated
at fair value are translated to New Zealand dollars at foreign exchange rates ruling at the dates the fair value was determined.
Group companies
The assets and liabilities of all Group companies that have a functional currency that differs from the presentation currency,
including goodwill and fair value adjustments arising on consolidation, are translated to New Zealand dollars at foreign
exchange rates ruling at the balance sheet date. The revenues and expenses of these foreign operations are translated to
New Zealand dollars at rates approximating the foreign exchange rates ruling at the dates of the transactions. Exchange
differences arising from the translation of foreign operations are recognised in the foreign currency translation reserve. On any
disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the
foreign entity and are translated at the foreign exchange rates ruling at the balance sheet date.
(f) Significant accounting judgements and assumptions
In the process of applying the Group’s accounting policies, a number of judgements have been made and estimates of future
events applied. Judgements and estimates which are material to the financial statements are found in the following notes.
• Note 10 Impairment of goodwill page 61
• Note 9 Estimation of useful lives of assets page 59
• Note 8 Inventory obsolescence page 58
• Note 5 Recovery of deferred tax asset page 55
(g) COVID-19 Pandemic
On 11 March 2020 the World Health Organisation (WHO) declared a global pandemic as a result of the outbreak and spread
of COVID-19. The Group has business operations located across the world. Our operations faced varying levels of disruption
before and following the WHO declaration. Most of the Group’s businesses produce products deemed essential so continued
to operate under adjusted protocols. Additional costs were incurred in making these adjustments and ensuring the safety of
our employees. The impact of these costs is included within the financial results reported. The Group claimed wage and job
retention subsidies where eligible for schemes offered in the countries where the Group operates. Details of these subsidy
payments are disclosed in note 4 of these financial statements. COVID-19 has not had any material impact on the measurement
of Group assets including goodwill and provisions including expected credit losses.
SKELLERUP ANNUAL REPORT 2020
50

1. Segment Information
An operating segment is a distinguishable component of the entity which is reported as an organisational unit, engages in
business activities, earns revenue and incurs expenses, and whose operating results are reviewed regularly by the chief
operating decision-maker to allocate resources and assess performance.
The Group’s operating segments are Agri, Industrial and Corporate, being the divisions reported to the executive management
and Board of Directors to assess performance of the Group and allocate resources. The principal measure of performance for each
segment is EBIT (earnings before interest and tax). As a result, finance costs and taxation have not been allocated to each segment.
Agri Division
The Agri Division manufactures and distributes dairy rubberware which includes milking liners, tubing, filters and feeding teats,
together with other related agricultural products and dairy vacuum pumps to global agricultural markets.
Industrial Division
The Industrial Division manufactures and distributes technical polymer products across a number of industrial markets,
including construction, infrastructure, automotive, mining and general industrial, together with industrial vacuum pump systems
for a variety of industrial applications worldwide.
Corporate Division
The Corporate Division includes the Parent company and other central administration expenses that have not been allocated
to the Agri and Industrial Divisions.
(a) Business segment analysis
For the year ended 30 June 2020
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue93,609157,932-(152)251,389
Segment EBIT25,40520,862(3,783)242,486
Profit before tax, finance costs and share
of profit of associate
42,486
Finance costs(2,582)
Share of net profit of associates(73)
Profit for the year before tax39,831
Income tax expense(10,767)
Net after-tax profit29,064
Assets and liabilities
Segment assets127,056136,23120,355-283,642
Segment liabilities16,06935,99047,020-99,079
Net assets110,987100,241(26,665)-184,563
Other segment information
Capital expenditure6,7072,74012-9,459
Cash flow
Segment EBIT25,40520,862(3,783)242,486
Adjustments for:
- Depreciation and amortisation4,9537,703111-12,767
- Non-cash items--1,002-1,002
Movement in working capital(884)4,4371,622(2)5,173
Segment cash flow29,47433,002(1,048)-61,428
Finance and tax cash expense(11,152)
Movement in finance and tax accrual(2,270)
Net cash flow from operating activities48,006
Notes to the Financial Statements
For the year ended 30 June 2020
51

1. Segment Information (continued)
For the year ended 30 June 2019
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue88,750157,188-(146)245,792
Segment EBIT22,79222,876(3,870)-41,798
Profit before tax and finance costs41,798
Finance costs(1,785)
Share of net profit of associates23
Profit for the year before tax40,036
Income tax expense(10,973)
Net after-tax profit29,063
Assets and liabilities
Segment assets112,784122,93021,345-257,059
Segment liabilities9,63118,69450,342-78,667
Net assets103,153104,236(28,997)-178,392
Other segment information
Capital expenditure1,9268,33664-10,326
Cash flow
Segment EBIT22,79222,876(3,870)-41,798
Adjustments for:
- Depreciation and amortisation4,1192,94766-7,132
- Non-cash items--636-636
Movement in working capital104(7,959)(56)-(7,911)
Segment cash flow27,01517,864(3,224)-41,655
Finance and tax cash expense(11,480)
Movement in finance and tax accrual(1,255)
Net cash flow from operating activities28,920
Major customers
The Agri and Industrial Divisions generate revenue from a large number of customers.
For the Agri Division, the three largest customers account for 36.6% (2019: 36.0%) of the Agri Division revenue.
For the Industrial Division, the three largest customers account for 9.9% (2019: 9.3%) of the Industrial Division revenue.

SKELLERUP ANNUAL REPORT 2020
52

2. Operating Revenue
The Group is in the business of providing technical polymer and elastomer products. Revenue from contracts with
customers is recognised when control of the goods or services are transferred to the customer at an amount that ref lects
the consideration to which the Group expects to be entitled in exchange for those goods and services. The Group has
concluded that it is the principal in its revenue arrangements, because it controls the goods and services before transferring
them to the customer.
NZ IFRS 15 – Revenue from contracts with customers
Skellerup implemented NZ IFRS 15 for the first time in 2018 using the full retrospective method of adoption.
The Agri and Industrial segments have similar performance obligations. The performance obligation is satisfied upon delivery
of product and payment is generally due within 30 to 120 days of delivery. Some contracts provide customers with volume
rebates which give rise to variable consideration and are accounted for accordingly. There are no maintenance or service
contracts with customers.
1. Segment Information (continued)
(b) Geographical revenue
Revenue from external customers by geographical locations is detailed below. Revenue is attributed to each geographical
location based on the location of the customers. Differences in foreign currency translation rates can impact comparisons
between years.
2020
$000
2019
$000
New Zealand55,98050,776
Australia48,05449,151
North America81,11178,278
Europe32,32033,994
United Kingdom and Ireland12,69113,917
Asia20,34116,614
Other8923,062
Total revenue251,389245,792
(c) Assets by geographical location
The non-current segment assets are scheduled by the geographical location in which the asset is held. The non-current assets,
which include property, plant and equipment, right of use assets, goodwill and intangible assets for each geographical location,
are as follows:
2020
$000
2019
$000
New Zealand110,658105,535
Australia11,8028,504
Europe13,92610,123
United Kingdom and Ireland17,7878,489
Asia7,0237,635
North America4,5861,543
Non-current assets by geographical location165,782141,829
53

4. Other income
2020
$000
2019
$000
Interest income2614
Government grants received87432
Realised and unrealised foreign currency gains/(losses)685 (170)
Other sundry income906505
Total other income2,491381
Government grants have been received by some entities in the Group under wage subsidy and job retention support schemes
offered by some countries in response to COVID-19.
3. Expenditure included in Net Profit for the Year
Net profit for the year has been arrived at after charging the items noted below. Where the GST/VAT incurred on a purchase
of goods and services is not recoverable from the taxation authority, the GST/VAT is recognised as part of the expense item
as applicable.

Note
2020
$000
2019
$000
Employee benefits expense
Wages and salaries (including annual leave, long-service leave,
CEO share scheme and sick leave)
52,10447,743
Termination benefits3196
Defined contribution expense2,4662,725
Total employee benefit expense54,60150,564
Depreciation, amortisation and impairment expense
Depreciation of property, plant and equipment97,2726,961
Depreciation and impairment of right of use assets95,228-
Amortisation of intangible assets10267171
Total depreciation and amortisation expense12,7677,132
Total (gain)/loss on disposal of property, plant and equipment2216
Total product development costs3,8633,986
Operating lease and rental costs4634,884
Remuneration of auditors
Audit of the financial statements by Parent company auditors499461
Other auditors’ fees for the audit of the financial statements in foreign jurisdictions9383
Taxation services provided by Parent company auditors-13
Total remuneration of auditors592557
SKELLERUP ANNUAL REPORT 2020
54

5. Taxation
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from,
or paid to, the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• For a deferred income tax liability arising from the initial recognition of goodwill; or
• Where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a
business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and
unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry-forward of unused tax assets and unused tax losses can be utilised. The carrying amount of deferred
income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
(a) Income statement
2020
$000
2019
$000
Current income tax
Current income tax charge/(credit)10,948 10,450
Prior-year adjustments8 (74)
Deferred income tax
Temporary difference reversal/(origination)(147)468
Prior-year adjustments(32) 127
Effect of movements in tax rates(10)2
Income tax expense as per income statement10,76710,973
(b) Amounts charged/(credited) to other comprehensive income

Note
2020
$000
2019
$000
Current income tax
Fair value of derivative financial instruments1717206
Translation of foreign operations17109(37)
Total income tax expense/(credit) relating to other comprehensive income126169
55

5. Taxation (continued)
(c) Reconciliation

2020
$000
2019
$000
Total profit before tax as reported39,831 40,036
Tax percentage at Parent company rate28%28%
Tax at Parent company rate11,153 11,210
Non-deductible expenses/(non-assessable income)27377
Tax effects of non-New Zealand profits(625)(369)
Adjustments for prior years(24)53
Effect of movements in tax rates(10)2
Income tax as per income statement10,76710,973
(d) Deferred tax assets and liabilities

2020
$000
2019
$000
Deferred tax asset3,125 2,822
Deferred tax liability(2,042)(1,950)
Net tax asset1,083872
The movement in the net deferred tax assets and liabilities is provided below:
2020
Opening
Balance
$000
Charged to
Income
$000
Charged to Other
Comprehensive
Income
$000
Foreign
Currency
Movements
$000
Closing
Balance
$000
Property, plant and equipment(2,044)(212)-(26)(2,282)
Provisions and accruals2,926475-333,434
Financial derivatives(52)-(17)-(69)
Other42(44)-2-
Net tax asset872219(17)91,083
2019
Opening
Balance
$000
Charged to
Income
$000
Charged to Other
Comprehensive
Income
$000
Foreign
Currency
Movements
$000
Closing
Balance
$000
Property, plant and equipment(1,588)(441)-(15)(2,044)
Provisions and accruals3,161(198)-(37)2,926
Financial derivatives154-(206)-(52)
Other-42--42
Net tax asset1,727(597)(206)(52)872
(e) Imputation credit account

Note
2020
$000
2019
$000
Balance at the beginning of the year41 12
Attached to dividends paid20(4,795)(4,773)
Income tax paid in New Zealand4,901 4,802
Total imputation credits14741
SKELLERUP ANNUAL REPORT 2020
56

7. Trade and Other Receivables and Prepayments
Trade receivables represent the Group’s right to an amount of consideration that is unconditional. Trade receivables are
recognised and measured at the transaction price determined under NZ IFRS 15. The Group recognises an allowance for
expected credit losses where there is an increase in credit risk subsequent to initial recognition.
2020
$000
2019
$000
Trade receivables42,51046,872
Less allowance for expected credit losses (725)(548)
41,78546,324
GST/VAT receivable311285
Other4,3094,150
Total trade and other receivables and prepayments46,40550,759
The average credit period for the sale of goods is 56 days (2019: 63 days). The Group offers credit terms ranging from 30 to 120
days to those customers for whom the Group has been able to validate acceptable credit quality. The credit terms and limits are
reviewed monthly. No interest is charged on the trade receivables.
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The
matrix uses a probability weighted outcome that takes into account the age of receivables, past events and current conditions.
Trade receivables are written off if considered uncollectable.
Of the trade receivables balance at the end of the year, $9.82 million (2019: $7.99 million) representing 23.5% (2019: 17.2%) of
the trade receivables are due from the Group’s three largest customers. The balances due from these customers are current and
are considered to be a low credit risk to the Group.
Ageing of past due but not impaired trade receivables
2020
$000
2019
$000
One to 30 days9,25711,447
31 to 60 days187782
61 days plus9251,828
Total past due trade receivables10,36914,057
Movement in the allowance for doubtful debts:
Balance at the beginning of the year548347
Impaired losses recognised258 229
Amounts written off as uncollectable(92)(5)
Impairment losses reversed-(15)
Net foreign currency exchange differences11(8)
Balance at the end of the year725548
6. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an original
maturity of three months or less.
For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts. Cash flows are included in the cash flow statement on a gross basis and the GST/VAT
component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation
authority, is classified as operating cash flows.
In New Zealand, some Group companies operate bank accounts in overdraft. Under the Group, bank facility overdrafts have
a legal right of set-off against bank accounts in funds. Therefore, only the net in funds position has been disclosed.
Cash and cash equivalents at the end of the year as shown in the cash flow statement can be reconciled to the related
items in the balance sheet.
All cash is available and under the control of the Group and there are no restrictions relating to the use of the cash
balances disclosed.
57

8. Inventories
The Group applies an inventory valuation policy of valuing at the lower of original cost or net realisable value. Where inventory
is written down below cost, estimates are made of the realisable value less cost to sell to determine the net realisable value.
Costs incurred in bringing each product to its present location and conditions are accounted for as follows:
• Raw materials as the purchase cost on a first-in, first-out basis;
• Finished goods and work-in-progress as the cost of direct materials and labour and a proportion of manufacturing overheads
based on normal operating capacity but excluding borrowing costs.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.

2020
$000
2019
$000
Raw materials10,6438,909
Work-in-progress2,8522,642
Finished goods38,60336,788
Total inventories52,09848,339
The value of inventories is net of $2,695,266 (2019: $2,540,737) in respect of write-downs across all categories of inventory to
net realisable value. All inventory write-down movements are included in the cost of sales.
SKELLERUP ANNUAL REPORT 2020
58

9. Property, Plant and Equipment
All classes of property, plant and equipment are recorded initially at cost, including costs directly attributable to bringing the
asset to working condition and ready for its intended use. Subsequently, property, plant and equipment is measured at cost less
accumulated depreciation and accumulated impairment. Depreciation of property, plant and equipment, other than freehold
land, which is carried at cost, is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Buildings: 40 years
Plant and equipment: Two to 30 years
Furniture, fittings and other: Five to 10 years
Right of use assets: One to 11 years
The estimation of the useful lives of assets has been based on historical experience, manufacturers’ warranties and
management’s judgement on the performance of the asset. Adjustments to useful lives are made when considered necessary.
The depreciation charges are disclosed below. At each reporting date, the Group assesses whether or not there is any
indication that an asset may be impaired. Where an indicator of impairment exists, the Group makes a formal estimate of the
recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the year in
which the item is derecognised.
Right-of-use assets comprise property, motor vehicles
& plant and represents the Group’s right to use those underlying assets
as a lessee under lease agreements.
Note
Freehold
Land
$000
Freehold
Buildings
$000
Plant and
Equipment
$000
Furniture,
Fittings
and Other
$000
Right of
use assets
$000
Total
$000
Cost
Balance 1 July 20187,08434,523108,1917,636-157,434
Additions-(40)4,618746-5,324
Disposals--(950)(290)-(1,240)
Net foreign currency exchange differences--(1,128)(77)-(1,205)
Balance 30 June 20197,08434,483110,7318,015-160,313
Initial recognition----18,49118,491
Additions--3,3337278,60812,668
Disposals--(1,599)(383)-(1,982)
Net foreign currency exchange differences--1,055 111 (61)1,105
Balance 30 June 20207,08434,483113,5208,47027,038190,595
Accumulated depreciation and impairment
Balance 1 July 2018-1,51756,8925,659-64,068
Depreciation expense3-9115,452598-6,961
Disposals--(757)(283)-(1,040)
Net foreign currency exchange differences--(899)(73)-(972)
Balance 30 June 2019-2,42860,6885,901-69,017
Depreciation expense3-
9115,6357274,972 12,245
Disposals--(1,168)(351)-(1,519)
Impairment--67 -255322
Net foreign currency exchange differences--790 83 -873
Balance 30 June 2020-3,33966,0126,3605,22780,938
Carrying value
As at 30 June 20197,08432,05550,0432,114-91,296
As at 30 June 20207,08431,14447,5082,11021,811109,657
Plant and equipment and freehold buildings include work in progress of $1,069,000 (2019: $1,389,000).
Capital expenditure commitments are $767,000 (2019: $830,000).
59

10. Intangible Assets
The Group’s intangible assets consist mainly of goodwill, software costs and customer relationships.


Note
Goodwill

$000
Software

$000
Customer
Relationships
$000
Total

$000
Cost
Balance 1 July 201845,9669,225-55,191
Additions4,1941436324,969
Disposals-(20)-(20)
Net foreign currency exchange differences(684)(29)-(713)
Balance 30 June 201949,4769,31963259,427
Additions4,907493-5,400
Disposals-(26)-(26)
Net foreign currency exchange differences525(329)-196
Balance 30 June 202054,9089,45763264,997
Accumulated amortisation
Balance 1 July 2018-8,769-8,769
Disposals-(20)-(20)
Amortisation expense3-171-171
Net foreign currency exchange differences-(26)-(26)
Balance 30 June 2019-8,894-8,894
Disposals-(328)-(328)
Amortisation expense3-17790267
Net foreign currency exchange differences39-39
Balance 30 June 2020-8,782908,872
Carrying value of goodwill and intangible assets
As at 30 June 201949,47642563250,533
As at 30 June 202054,90867554256,125
Goodwill
Goodwill acquired in a business combination is measured initially at cost, being the excess of the consideration transferred over
the fair value of the Group’s net identifiable assets acquired and liabilities assumed. If this consideration transferred is lower
than the fair value of the net identifiable assets of the subsidiary acquired, the difference is recognised in the income statement.
Separately recognised goodwill is tested annually for impairment and carried at cost less any accumulated impairment losses.
Impairment losses on goodwill are not reversed.
The Group determines whether or not goodwill associated with items with indefinite useful lives is impaired at least on an
annual basis. This requires certain assumptions being made in determining the recoverable amount of the cash-generating
units, using a value-in-use discounted cash flow methodology, to which the goodwill has been allocated. The assumptions
used in determining the recoverable amount and the carrying amount of goodwill are detailed below.
SKELLERUP ANNUAL REPORT 2020
60

10. Intangible Assets (continued)
Software
Identifiable intangible assets, which are acquired separately or in a business combination, are capitalised at cost at the date of
acquisition and stated at cost less any accumulated amortisation and impairment losses. Subsequent expenditure on intangible
assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other
expenditure is expensed as incurred. Software costs are recorded as intangible assets and amortised over a period of 10 years.
Research and development costs
Research costs are expensed as incurred. Development expenditure incurred on an individual project is carried forward when
its future recoverability can be regarded reasonably as assured. Following the initial recognition of the development expenditure,
the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated
impairment losses.
Any expenditure carried forward is amortised over the period of expected future sales from the related project.
The amortisation period and amortisation method for development costs are reviewed at each financial year-end. If the
useful life or method of consumption is different from that of the previous assessment, changes are made accordingly.
Impairment tests for goodwill
(i) Description of cash-generating units
Goodwill acquired through business combinations has been allocated to the business units acquired, with the exception
of the purchase of Silclear Limited and Nexus Performance Foams Limited, which have their own cash generating units (CGUs).
In some circumstances business units are combined into a larger CGU for the purposes of testing to determine fairly the
recoverable amount against the value in use.
The goodwill allocated to each cash-generating unit is shown in the table below. The changes in goodwill recorded are
attributable to exchange rate movements on the translation of the goodwill balances denominated in foreign currencies and the
acquisition of Silclear Limited. The net present value of future estimated cash flows exceeds the recoverable amount of goodwill
allocated to each cash-generating unit based on a value-in-use calculation. A pre-tax discount rate of 11.35% (2019: 11.12%) has
been applied to discount future estimated cash flows to their present value.
Cash-generating unit
2020
$000
2019
$000
Gulf33,93133,600
Ambic7,6457,530
Deks3,8013,721
Stevens431431
Nexus4,1634,194
Silclear4,937-
Total goodwill54,90849,476
(ii) Assumptions used to determine the recoverable amount
The estimated future cash flows generated have been determined from the business plans and detailed budgets prepared by
management as part of the annual business planning that is reviewed and approved by the Board of Directors. Such forecasts
analyse and quantify a range of growth objectives which form the basis for determining the business growth and direction over
the next three years.
For periods beyond 2020, the Group anticipates that business results will continue to improve due to new product developments,
the benefits of established customer relationships and expansion into new and existing niche markets. The estimated cash flow
in perpetuity is based upon the forecast year five cash flows and then an estimate of sustainable growth beyond this time period
of 1.5% per annum.
61

11. Trade and Other Payables
Trade and other payables are carried at amortised cost and, due to their short-term nature, are not discounted. They represent
liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid, and arise when
the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are
unsecured and paid usually within 30 to 60 days of recognition.
2020
$000
2019
$000
Trade payables12,63513,256
Employee entitlements2,7152,124
Sundry payables and accruals8,0456,651
GST payable1,411964
Total trade and other payables24,80622,995
The average credit period on purchases of all goods and services represents an average of 31 days credit
(2019: 34 days credit). The Group has financial risk management policies in place to ensure that all payables are met within
acceptable terms and conditions of purchase.
10. Intangible Assets (continued)
Key assumptions used in the value-in-use calculations are as follows:
Revenue assumptions
Revenue has been forecast to increase in a range of 0% to 17% per annum on a weighted average basis over the following five-
year period in line with the Group’s strategic business plans to develop and introduce new products, in addition to continuing to
support and grow the Group’s existing global customer relationships.
Discount rate assumptions
The discount rate is intended to reflect the time value of money and the risks specific to each cash-generating unit achieving its
forecast cash flows. In determining the appropriate discount rate, regard has been given to the weighted average cost of capital
of the Group, which has been updated as at 30 June 2020, to reflect the current market interest rates and the additional cost of
capital applicable in the current risk environment.
Commodity cost pricing assumptions
With the base raw material component being synthetic and natural rubbers sourced from Asia, the pricing of these raw
materials can fluctuate: many of the synthetics are by-products of the petrochemical industry, and natural rubbers are influenced
by global supply and demand influences. Pricing assumptions have been made in the Group forecasts that any cost increases
driven by commodity price changes will be passed through to customers.
Market share assumptions
In preparing forecasts, the Group’s business plans show no loss of market share. The Group’s strategy is to continue to expand
in global markets, especially in North America and Europe. This is the case particularly for the Gulf cash-generating unit, which
has dedicated manufacturing and distribution capabilities established in these markets.
Growth rate assumptions
The growth rates have been based on business plan assumptions applied in the preparation of the annual budgets for the new
financial year and the following two years, with assumed lower growth rates in years four and five and in perpetuity. This process
is based on key strategies that have been quantified at a product and customer level, reviewed by senior management and
signed off by the Board of Directors.
(iii) Sensitivity to assumption changes
Estimates made of future cash flows are based on current market conditions. With trading across a number of different products
covering a wide industry base, and through a number of international markets, the risk of significant change to cash flow
projections is mitigated. Any change in future cash flow projections, which is influenced by price changes, foreign currency
movements and competitor activities, is expected to have only minimal impact and is unlikely to cause an impairment risk to
the goodwill allocated to the various cash-generating units, particularly with the estimated net present value of each cash-
generating unit tested well above the carrying value of assets, including goodwill.
SKELLERUP ANNUAL REPORT 2020
62

12. Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event. It is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to
any provision is presented in the income statement net of any reimbursement. Provisions are measured at the present value of
management’s best estimates of the expenditure required to settle the present obligation at the balance date.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2020
$000
2019
$000
Provisions
Employee entitlements5,7595,538
Warranties335708
Total provisions6,0946,246
Current4,8114,840
Non-current1,2831,406
Total provisions6,0946,246
Warranties

2020
$000
2019
$000
Balance at the beginning of the year7081,346
Additional provisions recognised143298
Reductions arising from payments/sacrifices of economic benefits(454)(656)
Reductions arising from remeasurement or settlement without cost(66)(259)
Net foreign currency exchange differences4(21)
Balance at the end of the year335708
Employee entitlements
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be
settled within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They
are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are
recognised when the leave is taken and are measured at the rates paid or payable.
(ii) Long-service leave
The liability for long-service leave is recognised and measured at the present value of expected future payments to be made
in respect of services provided by employees up to the reporting date using a probability calculation of the employee reaching
the future service milestones. Consideration is given to expected future wage and salary levels, experience of employee
departures and periods of service. Expected future payments are discounted using market yields at the reporting date with
terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.
63

13. Interest-bearing Loans and Borrowings
All loans and borrowings are recognised initially at the fair value of the consideration received less directly attributable
transaction costs. After initial recognition, interest-bearing loans and borrowings are measured subsequently at amortised cost
using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after the reporting date.

2020
$000
2019
$000
Secured at amortised cost
Balance at the beginning of the year46,21540,400
Drawdowns36,05132,450
Repayments(40,133)(26,627)
Net foreign currency exchange differences(3)(8)
Balance at the end of the year42,13046,215
Effective interest rate2.14%3.43%
The carrying amounts disclosed above approximate fair value. Bank loans are provided under a $70 million multi-currency
facility agreement with ANZ Bank New Zealand Limited (ANZ Bank) which has an expiry date of 31 August 2023.
Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposure
to f luctuations in interest and foreign exchange rates. The carrying amount of tangible assets of the Charging Group
(which excludes Skellerup Rubber Products Jiangsu Limited and other smaller entities in the Group) totalling $189 million
is pledged as security to ANZ Bank to secure the above term loans.
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an asset which
necessarily takes a substantial period of time to prepare for its intended use or sale) are capitalised as part of the cost of that
asset. All other borrowing costs are expensed in the period in which they occur.
12. Provisions (continued)
(iii) Defined contribution scheme
The Group contributes to post-employment schemes for its employees. Under these schemes, the benefits received by the
employee are determined by the amount of the contribution paid by the Group, together with any investment returns and, hence, the
actuarial and investment risk is borne entirely by the employee. Therefore, because the Group’s obligations are determined by the
amount paid during each period, no actuarial assumptions are required to measure the obligation or the expense.
Warranties
In determining the level of provision required for warranties, the Group has made judgements in respect of the expected
performance of products and the costs of rectifying any products that do not meet the customers’ quality standards. The provision for
warranty claims represents the present value of the Directors’ best judgement or estimate of the future outflow of economic benefits
that will be required under the Group’s various product warranty programmes.
The estimate has been made on the basis of the expected performance of products, historical warranty trends, the costs of rectifying
any products that do not meet the customers’ quality standards and insurance arrangements the Group has in place. The actual cost
may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
SKELLERUP ANNUAL REPORT 2020
64

15. Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
Number
of shares
Value
$000
Balance 1 July 2018192,805,80769,732
Balance 30 June 2019 194,753,340 72,173
Balance 30 June 2020 194,753,340 72,173
All shares are fully paid and have no par value. Each ordinary share confers on the holder one vote at any shareholder meeting
of the Company and carries the right to dividends.
The Directors’ objective is to ensure the entity continues as a going concern, as well as to maintain optimal returns to
shareholders and benefits for other stakeholders. The Directors aim to provide a capital structure which:
• Provides an efficient and cost-effective source of funds;
• Is balanced with external debt to provide a secure structure to support the short and long-term funding of the Group; and
• Ensures that the ratio of funds sourced from shareholders and external debt is maintained proportionately at a level which
does not create a credit and liquidity risk to the Group.
The Company is listed on the New Zealand Exchange and is, therefore, subject to continuous disclosure obligations to inform
shareholders and the market of any matters which affect the capital of the Company. This includes changes to the capital structure,
new share issues, dividend payments and any other significant matter which affects the creditworthiness or liquidity of the Group.
The Group is not subject to any externally imposed capital requirements.
14. Lease Liabilities
The Group adopted NZ IFRS 16 for the reporting period ended 30 June 2020.
The adoption of IFRS 16 results in leases being recognised on the balance sheet. Lease payments are now recorded as a
repayment of the lease obligation and interest expense instead of as an operating expense in the income statement. Lease
assets are depreciated on a straight-line basis over the current lease term. The Group has recognised lease assets and lease
liabilities at the present value of future lease payments for existing lease terms and all lease renewal options that are reasonably
certain to be exercised. Certain low value assets were excluded. The costs of these low value leases continue to be recognised
as an expense in the Income Statement. The lease liabilities disclosed do not include future cash flows for leases where the
Group does not intend to exercise its rights to extend existing leases nor the future cash flows following the dates at which
Skellerup intends to exercise termination options. The weighted average incremental borrowing rate applied to lease liabilities
recognised in the statement of financial position on transition at 1 July 2019 was 4.44%.
IFRS 16 have been applied retrospectively with the cumulative effect of applying the Standard recognised at initial application
on 1 July 2019. Prior year comparative figures have not been restated.

2020
$000
2019
$000
As at 1 July 2019--
Initial recognition18,491-
Additions/Terminations8,551-
Accretion of interest938-
Payments(5,609)-
Net foreign currency exchange differences(55)-
As at 30 June 202022,316-
The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019, as shown in the
table below.

$000
Operating lease commitments as at 30 June 201920,928
Weighted average incremental borrowing rate as at 1 July 20194.44%
Discounted operating lease commitments recorded as lease liabilities as at 1 July 201918,491
65

17. Reserves
2020
$000
2019
$000
Reserve balances
Cash flow hedge reserve176132
Foreign currency translation reserve(7,615)(9,771)
Employee share plan reserve374149
Total reserves(7,065)(9,490)
The cash flow hedge reserve is intended to recognise the fair value movements of the effective derivatives held to hedge
interest rate and foreign currency risk. A summary of movements is shown in the table below.

Note
2020
$000
2019
$000
Cash flow hedge reserve
Balance at the beginning of the year132(397)
Gain/(loss) recognised on cash flow hedges:
- Foreign exchange contracts130813
- Interest rate swaps(69)(78)
- Income tax related to gains / (losses) recognised in other comprehensive income5(17)(206)
Movement for the year44529
Balance at the end of the year176132
Exchange differences relating to the translation of values from the functional currencies of the Group’s foreign subsidiaries
into New Zealand dollars are brought to account by entries made directly to the foreign currency translation reserve.
A summary of movements is shown in the table below.

Note
2020
$000
2019
$000
Foreign currency translation reserve
Balance at the beginning of the year(9,771)(8,059)
Gain/(loss) recognition:
- Foreign exchange movements on translation of foreign operations2,265(1,749)
- Income tax related to gains/(losses) recognised in other comprehensive income5(109)37
Movement for the year2,156(1,712)
Balance at the end of the year(7,615)(9,771)
The employee share plan reserve is used to record the value of share-based payments provided to employees, including key
management personnel, as part of their remuneration. A summary of movements is shown in the table below.

Note
2020
$000
2019
$000
Employee share plan reserve
Balance at the beginning of the year149471
Shares redeemed during the year-(471)
Expense recognised/(redeemable shares paid) for the year18225149
Balance at the end of the year374149
16. Finance Costs
2020
$000
2019
$000
Interest on bank overdrafts and borrowings1,2001,352
Bank facility fees444433
Interest on capitalised leases938-
Total finance costs in Income Statement2,5821,785
SKELLERUP ANNUAL REPORT 2020
66

19. Earnings per Share
Earnings per share is calculated as net profit attributable to members of the Parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares.
2020
Cents
per share
2019
Cents
per share
Basic earnings per share14.9214.96
Diluted earnings per share14.8014.80
The earnings and weighted average number of ordinary shares used in the calculation of earnings per share are as follows:
2020
$000
2019
$000
Earnings used in the calculation of earnings per share29,06429,063
Weighted average number of ordinary shares for
- Basic earnings per share194,753,340 194,289,134
- Diluted earnings per share196,353,340 196,353,340
18. Share-based Incentive Scheme
Skellerup Group operates a long-term incentive scheme for the benefit of senior executives. The scheme permits the Board to
grant options to acquire fully paid shares in the Company. The options are able to be exercised by the recipients subject to their
continued employment in a future period as determined by the Board of Skellerup.
On 26 October 2018 the Board awarded 1,600,000 options, issued at an exercise price of NZ$2.12, being the weighted average
price of Skellerup’s shares in the prior twenty-day trading period. Option holders will be able to exercise the options in the
period beginning on 1 September 2020 and ending on 1 November 2020. Upon exercise, option holders will be issued one
ordinary share in Skellerup per option exercised or alternatively the option holder may elect to be issued the number of shares
as is equal to the difference between the market value of Skellerup’s ordinary shares and the exercise price. The options have
been fair valued using the Black-Scholes formula. The fair value has been determined as NZ$411,000. The expense recognised
in the current period for the Chief Executive Officer and Chief Financial Officer’s Incentive Scheme is NZ$225,000.
67

21. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments comprise receivables, payables, bank loans and overdrafts, cash and derivatives.
Because of these financial instruments, the principal financial risks to the Group are movements in foreign currency and interest
rates. Credit risk and liquidity risk are considered also to be risk areas and are, therefore, closely managed.
The Board reviews and agrees upon policies for managing financial risk. The Group enters into derivative transactions,
principally forward foreign currency contracts and interest rate swaps. The purpose is to manage the currency and interest rate
risks arising from the Group’s operations and its sources of finance.
Credit risk is managed through regular review of aged analysis of receivable ledgers. The credit risk exposures are the
receivables recorded in Note 7. Liquidity risk is monitored through the review of future rolling cash flow forecasts. These cash
flow forecasts are updated on a weekly basis with particular emphasis placed on the prospective four-week period. These
forecasts are monitored constantly against limitations of the entire debt facility.
Risk exposures and responses
(i) Interest rate risk
The Group’s exposure to market interest rates relates primarily to the Group’s long-term debt obligations.
The Group’s policy is to monitor its interest rate exposure and to hedge the volatility arising from interest rate changes by
entering into interest rate swap contracts that cover a minimum of 25% and a maximum of 75% of the core debt. Core debt
is defined as debt in excess of $15 million that is not expected to be repaid from available cash flows within an 18-month
time horizon.
The level of debt is disclosed in Note 13. A reasonably expected movement in the interest rate would not have a material impact
on profit or equity. At balance date, the Group had the following mix of financial assets and liabilities exposed to interest rate
risk. Details of financial instruments in place to manage this risk are disclosed in Note 21.
2020
$000
2019
$000
Financial assets
Cash and cash equivalents13,6179,639
Financial liabilities
Bank loans42,13046,215
Net exposure(28,513)(36,576)
20. Retained Earnings
2020
$000
2019
$000
Balance at the beginning of the year115,709110,539
Net profit for the year29,06429,063
Share incentive scheme-451
Payment of dividends(25,318)(24,344)
Balance at the end of the year119,455115,709
During the reporting period a dividend of 7.5 cents per share (imputed 50%) was paid on 17 October 2019 and 5.5 cents per
share (imputed 50%) on 19 March 2020. The imputation tax credits totalled $4,794,626 (2019: $4,772,620).
SKELLERUP ANNUAL REPORT 2020
68

21. Financial Risk Management Objectives and Policies (continued)
(ii) Foreign currency risk
The Group imports raw materials and finished goods and exports finished goods to a number of foreign customers. The main
foreign currencies traded are US dollars (USD), Australian dollars (AUD), British pounds (GBP) and Euro (EUR).
The Group seeks to cover up to 100% of the net foreign currency cash flow forecast, for the next 12-month period, with foreign
currency contracts. Where the foreign currency cash flows can be forecasted reliably beyond the future 12-month period, such
cash flows may also be covered by foreign currency contracts of up to 50% of the forecast cash flows.
The Group also has translational currency exposures. Such exposures arise from subsidiary operating entities that transact in
currencies other than the Group’s functional currency. Currently, the Group does not hedge these exposures.
Foreign currency net monetary assets
The Group has the following net monetary assets in foreign currency values which are in different currencies from the
subsidiary’s base currency and will revalue either through the income statement or the statement
of comprehensive income:
Cash and Cash
Equivalents
$000
Receivables

$000
Payables

$000
Net Monetary
Assets
$000
30 June 2020
USD1,4204,8022,0724,150
AUD3931,3762601,509
GBP974732568
EUR4671,7164061,777
30 June 2019
USD1,2894,4551,8523,892
AUD1132,143632,193
GBP150512-662
EUR3631,3632531,473
The foreign currency denominated values as shown in the table above converted to New Zealand dollars as follows:
2020
$000
2019
$000
Financial assets
Cash and cash equivalents3,6113,405
Trade and other receivables14,77812,645
18,38916,050
Financial liabilities
Trade and other payables5,2363,382
Net exposure13,15312,668
69

21. Financial Risk Management Objectives and Policies (continued)
Foreign currency sensitivity
Net Profit after TaxNet Equity
Higher/(Lower)
2020
$000
2019
$000
2020
$000
2019
$000
Foreign currency rates
Increase +10%(872)(836)(9,483)(8,994)
Decrease -5%5054845,4905,207
Significant assumptions used in the foreign currency exposure sensitivity analysis are as follows:
(a) The range of possible foreign exchange rate movements was determined by a review of the last two years’ historical
movements and economists’ views of future movements.
(b) The Group’s trend of trading in foreign currency values is not expected to change materially over future periods.
(c) The Group’s net exposure to foreign currency at balance date is representative of past periods and is expected
to remain relatively consistent for the future 12-month period.
(d) The price sensitivity of derivatives has been based on a reasonably possible movement of the spot rate applied
at balance date.
(e) The effect on other comprehensive income results from foreign currency revaluations through the cash flow hedge
reserve and the foreign currency translation reserve.
(f) The sensitivity analysis does not include financial instruments that are non-monetary items as these are
not considered to give rise to a currency risk.
(iii) Credit risk
All customers who trade with any Group subsidiary on credit terms are subject to credit verification procedures including an
assessment of their independent credit rating and financial position. Risk limits are set for individual customers according to the
risk profile of each and, where it is considered appropriate, registrations are made to record a secured interest in the products
supplied. Receivable balances are monitored on an ongoing basis with appropriate provisions held for doubtful debts.
(iv) Liquidity risk
The Group monitors its future cash inflows and outflows through rolling cash flow forecasts. At balance date, the liquidity risk is
considered to be low with the bank facility not fully drawn, compliance with bank covenants, and forecast cash flows reporting
positive operating cash generation for the Group over the next financial year. The following maturity analysis shows the profile
of future payment commitments of the Group. With the available bank facility and the ability for the business to generate future
positive operating cash inflows, the obligation to meet the forward commitments is considered to be a low risk.
SKELLERUP ANNUAL REPORT 2020
70

21. Financial Risk Management Objectives and Policies (continued)
Maturity analysis of financial assets and liabilities
The following table represents both the expected and contractual maturity and cash flows of receipts and payments.

Balance 30 June 2020
Zero to Six
Months
$000
Seven to 12
Months
$000
One to Five
Years
$000
More than
Five Years
$000
Total
$000
Financial assets
Cash and cash equivalents13,617---13,617
Trade and other receivables and prepayments44,9624839501046,405
Derivatives378-438-816
58,9574831,3881060,838
Financial liabilities
Trade and other payables24,63768101-24,806
Lease liabilities2,1682,37612,7924,98022,316
Interest-bearing loans830-41,300-42,130
Derivatives440-132-572
28,0752,44454,3254,98089,824
Net total30,882(1,961)(52,937)(4,970)(28,986)
Balance 30 June 2019
Zero to Six
Months
$000
Seven to 12
Months
$000
One to Five
Years
$000
More than
Five Years
$000
Total
$000
Financial assets
Cash and cash equivalents9,639---9,639
Trade and other receivables and prepayments50,0815041641050,759
Derivatives310-173-483
60,0305043371060,881
Financial liabilities
Trade and other payables22,8289671-22,995
Interest-bearing loans--46,215-46,215
Derivatives118-183
-301
22,9469646,469-69,511
Net total37,084408(46,132)10(8,630)
Fair value
The financial instruments that have been fair valued by the Group are detailed in Note 21 and have a fair value of $244,000
(2019: $182,000).
Under NZ IFRS, there are three methods available for estimating the fair value of financial instruments. These are:
Level 1 – the fair value is calculated using quoted prices in active markets.
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the
assets or liabilities, either directly (as prices) or indirectly (derived from prices).
Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
In determining the fair value of all derivatives, the Group has applied the Level 2 method of calculating fair value by using
estimated inputs, other than quoted prices, that are observable for assets and liabilities, either directly (as prices) or indirectly
(derived from prices).
71

22. Financial Instruments
Financial assets and liabilities in the scope of NZ IFRS 9 Financial Instruments are classified as either financial assets and
liabilities at fair value through profit or loss, debt instruments at amortised cost, derivatives designated as hedging instruments,
or interest bearing loans. When financial assets and liabilities are recognised initially, they are measured at fair value, plus, in
the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the
classification of its financial assets and liabilities after initial recognition and, when allowed and appropriate, re-evaluates this
designation at each financial year-end.
Recognition and derecognition
All regular purchases and sales of financial assets are recognised on the trade date: i.e. the date that the Group commits to
purchase the asset. Regular purchases or sales are purchases or sales of financial assets under contracts that require delivery
of the assets within the period established generally by regulation or convention in the market place. Financial assets are
derecognised when the Group no longer controls the contractual rights that comprise the financial instrument, which is normally
the case when the instrument is sold, or all the cash flows attributable to the instrument are passed through to an independent
third party. Gains and losses on financial assets are exclusive of interest and dividends, which are recognised separately.
(i) Financial assets and liabilities at fair value through profit or loss
Financial assets classified as held for trading are included in the category ‘financial assets at fair value through profit and
loss’. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term with
the intention of making a profit. Derivatives are classified also as held for trading unless they are designated as effective
hedging instruments.
Detail of the Group’s financial assets and liabilities are shown below. Significant accounting policies and methods adopted,
including the criteria for recognition, the basis of measurement and the basis in which income and expenses are recognised,
in respect of each class of financial asset, financial liability and equity instrument, are disclosed in the preceding notes.
Financial Assets
Cash and Bank
Balances
$000
Trade and Other
Receivables
$000
Derivatives

$000
Total Financial
Assets
$000
Balance 30 June 2020
Fair value through profit and loss13,617--13,617
Debt instruments at amortised cost-46,405-46,405
Derivatives designated as hedging instruments--816816
Total financial assets13,61746,40581660,838
Balance 30 June 2019
Fair value through profit and loss9,639--9,639
Debt instruments at amortised cost-50,759-50,759
Derivatives designated as hedging instruments--483483
Total financial assets9,63950,75948360,881
SKELLERUP ANNUAL REPORT 2020
72

22. Financial Instruments (continued)
Financial Liabilities
Trade and
Other Payables
$000
Derivatives

$000
Lease Liabilities

$000
Borrowings

$000
Total Financial
Liabilities
$000
Balance 30 June 2020
Derivatives designated
as hedging instruments

-

572

-

-

572
Other financial liabilities
at amortised cost

24,806

-

22,316

-

47,122
Interest bearing loans---42,13042,130
Total financial liabilities24,80657222,31642,13089,824
Balance 30 June 2019
Derivatives designated
as hedging instruments

-

301

-

-

301
Other financial liabilities
at amortised cost

22,995

-

-

-

22,995
Interest bearing loans---46,21546,215
Total financial liabilities22,995301-46,21569,511
Where the financial assets and financial liabilities are shown at amortised cost, their cost approximates fair value. The Group
uses derivative financial instruments such as forward currency contracts and interest rate swaps to hedge its risks associated
with foreign currency and interest rate fluctuations. Such derivative financial instruments are recognised initially at fair value on
the date on which a derivative contract is entered into and are remeasured subsequently to fair value. Derivatives are carried as
assets when their fair value is positive and as liabilities when their fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash flow hedges, are
taken directly to profit or loss for the year. The fair values of forward currency contracts are calculated by reference to current
forward exchange rates for contracts with similar maturity profiles. The fair values of interest rate swap contracts are determined
by reference to market values for similar instruments.
For the purposes of hedge accounting, hedges are classified as:
• Fair value hedges when they hedge the exposure to changes in the fair value of a recognised asset or liability; or
• Cash flow hedges when they hedge the exposure to variability in cash flows that is attributable either to a particular risk
associated with a recognised asset or liability or to a forecast transaction.
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the
Group wishes to apply hedge accounting, and the risk management objectives and strategies for undertaking the hedge.
The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk
being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in
the hedged item’s fair values or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in
achieving offsetting changes in fair values or cash flows and are assessed on an ongoing basis to determine that they actually
have been highly effective throughout the financial reporting periods for which they were designated.
73

22. Financial Instruments (continued)
Hedges that meet the strict criteria for hedge accounting are accounted for as follows:
(ii) Cash flow hedges
Cash flow hedges are hedges of the Group’s exposure to variability in cash flows, which is attributable to a particular risk associated
with a recognised asset or liability or a highly probable forecast transaction and that could affect profit or loss. The effective portion
of the gain or loss on the hedging instrument is recognised directly in the statement of comprehensive income, while the ineffective
portion is recognised in the income statement.
Amounts taken to the statement of comprehensive income are transferred out of the statement of comprehensive income and
included in the measurement of the hedged transaction (sales or inventory purchases) when the forecast transaction occurs. If the
forecast transaction is no longer expected to occur, amounts previously recognised in the statement of comprehensive income are
transferred to the income statement.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or, if its designation as a hedge
is revoked, amounts previously recognised in the statement of comprehensive income remain in the statement of comprehensive
income until the forecast transaction occurs. If the related transaction is not expected to occur, the amount is recognised in the
income statement.
Derivative financial instruments
Details of the derivatives held and their fair values at balance date were as follows:
2020
$000
2019
$000
Current assets
Forward currency contracts - cash flow hedge378310
Current assets378310
Non-current assets
Forward currency contracts - cash flow hedge438173
Non-current assets438173
Total assets816483
Current liabilities
Forward currency contracts - cash flow hedge26367
Interest rate swaps - cash flow hedge17751
Current liabilities440118
Non-current liabilities
Forward currency contracts - cash flow hedge1913
Interest rate swaps - cash flow hedge113170
Non-current liabilities132183
Total liabilities572301
Net assets/(liabilities)244182
SKELLERUP ANNUAL REPORT 2020
74

22. Financial Instruments (continued)
Foreign exchange contracts
The Group imports a large proportion of its raw materials and finished goods, and has export sales to a number of customers.
As a result, the Group has both inward and outward foreign currency cash flows. Both the inward cash flows and the outward
cash flows are tested and hedged against highly probable forecasted sales and purchases. The main currency exposures are in
US dollars, Euro dollars, Australian dollars and British pounds. At balance date, details of outstanding foreign currency contracts
are as follows:
Notional AmountAverage Exchange Rates
2020
$000
2019
$000
20202019
Buy NZD/Sell EUR
Maturing 2020: two to 27 months (2019: two to 22 months)9,1846,8260.55530.5603
Buy NZD/Sell GBP
Maturing 2020: one to 21 months (2019: one to 22 months)6,4154,9280.49880.5073
Buy NZD/Sell USD
Maturing 2020: one to 27 months (2019: one to 19 months)10,9315,3100.63120.6780
Buy NZD/Sell AUD
Maturing 2020: one to 12 months (2019: three to seven months)7,4849780.93540.9200
Buy CNY/Sell AUD
Maturing 2020: one to 12 months (2019: three to seven months)5,6067680.20790.2072
The forward currency contracts are considered to be highly effective hedges as they are matched against forecast inventory
purchases and export sales, and any gain or loss on the contracts attributable to the hedge risk is taken directly to other
comprehensive income.
Amounts are transferred out of other comprehensive income and included in the measurement of the hedged transaction (sales
or purchases) when the forecast transaction occurs. Movements in the cash flow hedge reserve are recorded in the Statement
of Comprehensive Income.
Interest rate swap agreements
The Group seeks to fix a minimum of 25% and a maximum of 75% of its interest rate risk where debt exceeds $15 million.
At 30 June 2020 the Group had $5 million fixed at a rate of 2.68% plus bank margin expiring 21 February 2021, $5 million fixed
at a rate of 1.99% plus bank margin expiring 21 April 2021 and $5 million fixed at a rate of 1.34% plus bank margin expiring
26 June 2022.
The interest swap agreements are considered to be highly effective hedges as they are matched against forecast interest
payments and any gain or loss on the contracts attributable to the hedge risk is taken directly to other comprehensive income.
Amounts are transferred out of other comprehensive income and included in the measurement of the hedged transaction
when the forecast interest payment is made. Movements in the cash flow hedge reserve are recorded in the Statement of
Comprehensive Income.
Credit risk
Credit risk arises from potential failure of counterparties to meet their obligations at the maturity dates of contracts. Because the
counterparty of the above financial derivatives is the ANZ Bank New Zealand Ltd, there is minimal credit risk.
75

23. Business Acquisition
On 1 November 2019, Skellerup acquired all of shares in UK based Silclear Limited (“Silclear”) for cash consideration of
$6,423,000. Silclear designs and manufactures silicone products for international customers in the dairy and medical industries
using food grade materials for maximum strength, tear resistance and optical clarity. The fair values of the identifiable assets
and liabilities as at the date of acquisition were:
2020
$000
Assets
Cash and cash equivalents 219
Trade and other receivables and prepayments 892
Inventories 1,145
Property, plant and equipment 116
Total assets 2,372
Liabilities
Trade and other payables 442
Provisions 30
Income tax payable 317
Deferred tax liability 10
Total liabilities 799
Total identifiable net assets at value 1,573
Goodwill arising on acquisition (note 10) 4,850
Purchase consideration transferred 6,423
The fair value of trade receivables is equivalent to the gross amount and it is expected that the full contractual amount will be
collected.
The goodwill of $4,850,000 comprises the value of expected synergies and benefits arising from the acquisition.
From the date of acquisition Silclear has contributed $3,411,655 of revenue and $922,194 of profit before tax to the Group.
SKELLERUP ANNUAL REPORT 2020
76

24. Related Parties
The consolidated financial statements incorporate the following significant companies:
(a) Subsidiary companies
Name of EntityPrincipal Activities
Country of
Incorporation
Holding
Balance Date
20202019
Skellerup Industries LimitedManufacturing and SalesNew Zealand100%100%30 June
Skellerup Growth LimitedPropertyNew Zealand100%100%30 June
Ambic Equipment LimitedManufacturing and SalesUK100%100%30 June
Conewango Products CorporationDistributionUSA100%100%30 June
Deks Industries Pty LimitedManufacturing and SalesAustralia100%100%30 June
Deks North America LimitedDistributionUSA100%100%30 June
Gulf Rubber Australia Pty LimitedManufacturing and SalesAustralia100%100%30 June
Gulf US IncorporatedDistributionUSA100%100%30 June
Masport IncorporatedManufacturing and SalesUSA100%100%30 June
Nexus Performance Foams LimitedManufacturing and SalesNew Zealand100%100%30 June
Silclear Limited Manufacturing and SalesUK100%-30 June
Skellerup Rubber Products
Jiangsu Limited
Manufacturing and SalesChina100%100%31 December
Skellerup Rubber Services LimitedManufacturing and SalesNew Zealand100%100%30 June
Tumedei SpAManufacturing and SalesItaly100%100%30 June
Ultralon Foam International LimitedManufacturing and SalesNew Zealand100%100%30 June
(b) Associate Investment
As these are consolidated financial statements, transactions between related parties within the Group have been eliminated.
Consequently, only those transactions between the Skellerup Group and Sim Lim Technic LLC (Sim Lim) have been
disclosed below. Skellerup holds a 35% interest in Sim Lim. Skellerup’s interest is accounted for using the equity method
in the consolidated financial statements.
Sales to
related party
$000
Purchases from
related Party
$000
Amounts owed
by related party
$000
Amounts owed to
related party
$000
Sim Lim 202033165367
Sim Lim 201925649325617
(c) Compensation of Directors and key management
The remuneration of Directors and senior management personnel during the year was as follows:
2020
$000
2019
$000
Short-term benefits
Directors' fees460453
Senior management's salaries and incentives1,6542,362
Contribution to defined contribution scheme for senior management personnel1956
Long-term benefits
Share-based incentive scheme expensed/(redeemable shares paid) during the year225149
Mr John Strowger is a Director of Skellerup and a partner of Chapman Tripp, the Group’s legal advisors. Chapman Tripp has
charged fees during the year amounting to $170.971 (2019: $207,100). The fees were charged on normal terms and conditions
and exclude GST. There was $6,532 (2019: $8,955) outstanding (excluding GST) at balance date relating to these transactions.
77

25. Contingent Liabilities
2020
$000
2019
$000
Bank guarantee provided to the New Zealand Exchange7575
The Group receives claims from time to time in relation to products supplied. Where the Group expects to incur a cost to replace
or repair the product supplied and can reliably measure that cost, that cost is recognised. The Group has general liability and
professional indemnity insurance in the event that there are warranty claims.
26. Significant Events after Balance Date
The Directors agreed to pay a final dividend, imputed to 50%, of 7.5 cents per share on 16 October 2020, to shareholders on the
register at 5.00pm on 2 October 2020. This dividend is not recorded in the financial statements.
There are no other events subsequent to balance date that require additional disclosure.
27. New Accounting Standards, Amendments, Interpretations and IFRIC Interpretations
Other than as disclosed in notes 9 and 14, there is no new Accounting standard, amendment or interpretation, which has been
issued and is effective, that has a significant impact on the Group.
SKELLERUP ANNUAL REPORT 2020
78

Directors holding office during the year and their shareholdings
Directors held interests in the following shares in the Company as at 30 June 2020.

Held with Non-beneficial InterestHeld by Associated Persons
Liz Coutts(Independent)-920,000
David Cushing
(Independent)
-9,866,169
Alan Isaac(Independent)-50,000
David Mair(Chief Executive)-5,475,039
John Strowger(Independent)-118,320
Directors’ Interests
Pursuant to section 140(2) of the Companies Act 1993 and section 299 of the Financial Markets Conduct Act 2013, the Directors
named below have made a general disclosure of interest during the period 01 July 2019 to 09 August 2020 by a general notice
disclosed to the Board and entered in the Company’s Interest Register.
Liz Coutts
• Appointed Chair of EBOS Limited 15 October 2019.
David Cushing
• Resigned as Director of Webster Limited 13 February 2020.
Alan Isaac
• Interest in 50,000 shares held by Alan Isaac, Andrew Dinsdale and Alasdair McBeth following the purchase of 10,000 shares on
18 October 2019.
Director, CEO and Employee Remuneration
Director Remuneration
The total remuneration to non-executive Directors is $550,000 as approved by the shareholders at the Annual Meeting on
25 October 2017. Director remuneration for FY20 is shown in the table below.

NoteBoard ChairBoard DirectorAudit & Risk ChairTotal
Liz Coutts87,00087,000174,000
David Cushing 87,00087,000
Alan Isaac87,00025,000112,000
John Strowger87,00087,000
David Mair1----
Total87,000348,00025,000460,000
Note:
1. David Mair is an Executive Director. He is remunerated for his role as CEO and does not receive any director remuneration.
Directors’ Disclosures, Remuneration and Shareholding
79

CEO Remuneration
CEO remuneration is made of three components: Fixed remuneration, short-term performance incentive (STI) and long-term
performance incentive (LTI). The STI and LTI are at risk because the outcome is determined by performance against financial
objectives. The table below shows CEO remuneration in FY20 and FY19.

$000SalaryKiwisaverKiwisaverSTILTISubtotalTotal
David Mair FY20690-690-141141831
David Mair FY196502067010193194864
The STI is an at-risk payment designed to motivate and reward for financial performance that exceeds the previous best
achieved by Skellerup under the incumbent CEO management. The financial measure used for determining this performance
is earnings before interest and tax (EBIT). The STI is set so that the CEO receives 5% of EBIT in excess of the previous best EBIT
achieved by Skellerup under his management. No STI was payable for FY20.
The LTI is a share option scheme. Under the scheme David Mair was granted 1,000,000 options on 26 October 2018, at an
exercise price of $2.12 per share. The exercise price was the weighted average share price on the 20 day trading period
preceding issuance. The options are able to be exercised in the period 1 September 2020 to 1 November 2020. The options
have been valued using the Black Scholes formula.
CEO Remuneration: Five Year Summary
$000SalaryKiwisaverSTITotalLTI VestingLTI Span
David Mair FY20690--690-2018-2020
David Mair FY19 65020101801-2018-2020
David Mair FY18 60018347965-2011-2018
David Mair FY176001831649-2011-2018
David Mair FY1660018-61850%2011-2016
Fixed RemunerationPerformance Based Remuneration
SKELLERUP ANNUAL REPORT 2020
80

Employee Remuneration
The Group paid remuneration in excess of $100,000 including benefits to 128 employees (not including non-executive directors)
during the FY20 year in the following bands.
Remuneration
range $000
Number of
employees
Remuneration
range $000
Number of
employees
100-11019250-2602
110-12016260-2702
120-1309270-2802
130-14011280-2903
140-15012290-3002
150-16010300-3101
160-1704310-3202
170-1802320-3301
180-1905360-3701
190-2004370-3801
200-2105460-4701
210-2203500-5101
220-2303640-6501
230-2403790-8001
240-2501
Gender and Diversity as at 30 June 2020
DirectorsOfficersManagement
202020192020201920202019
Male44222924
Female110089
Total55223733
Distribution of Ordinary Shares and Shareholders as at 10 August 2020
Size of shareholding% of
shareholders
Number
of shares
%
of shares
1 - 999285142,3810.07
1,000 - 9,9993,13513,889,1757.13
10,000 - 49,9991,98738,895,85919.97
50,000 - 99,99923015,060,6797.73
100,000 - 499,99914623,971,05412.31
500,000 - 999,999148,861,4514.55
1,000,000 Over2593,932,74148.23
Rounding0.01%
Total5,822194,753,340100.00%
81

Substantial Product Holders
Pursuant to the Financial Markets Conduct Act 2013, the following parties had given notice as at 10 August 2020 that they were
substantial product holders in the Company and held a relevant interest in the number of ordinary shares shown below:
Number of shares %
Sir Selwyn Cushing (21 August 2018)12,523,8266.50
H&G Limited (21 August 2018)10,866,1695.64
Forsyth Barr Investment Management (26 June 2020)9,785,7825.03
Twenty Largest Shareholders as at 10 August 2020
Number of shares%
1Forsyth Barr Custodians Limited 16,034,0148.23
2H & G Limited9,866,1695.07
3Accident Compensation Corporation 9,789,8825.03
4FNZ Custodians Limited7,866,7394.04
5Citibank Nominees (New Zealand) Limited 6,128,1343.15
6David William Mair + John Gordon Phipps 5,475,0392.81
7Custodial Services Limited 3,874,9511.99
8BNP Paribas Nominees (NZ) Limited 3,855,1891.98
9Custodial Services Limited 3,469,8221.78
10Investment Custodial Services Limited 2,988,8021.53
11HSBC Nominees A/C NZ Superannuation Fund Nominees Limited 2,765,1061.42
12New Zealand Depository Nominee Limited 2,663,3951.37
13Public Trust Forte Nominees Limited 2,522,3281.30
14HSBC Nominees (New Zealand) Limited 1,887,5870.97
15Leveraged Equities Finance Limited 1,764,5150.91
16Custodial Services Limited 1,643,7170.84
17Seajay Securities Limited1,457,6420.75
18Custodial Services Limited 1,453,3650.75
19PT (Booster Investments) Nominees Limited1,439,7830.74
20FNZ Custodians Limited 1,349,5870.69
SKELLERUP ANNUAL REPORT 2020
82

Corporate Directory
Directors
EM Coutts, ONZM, BMS, FCA, CFloD
Chair
BD Cushing, BCom, ACA
AR Isaac, CNZM, BCA, FCA
DW Mair, BE, MBA
WJ Strowger, LLB (Hons)
Officers
DW Mair, BE, MBA
Chief Executive Officer
GR Leaming, BCom, CA
Chief Financial Officer
Registered Office
L3, 205 Great South Road
Greenlane
Auckland 1051
New Zealand
PO Box 74526
Greenlane
Auckland 1546
New Zealand
Email: ea@skellerupgroup.com
Telephone: +64 9 523 8240
Website: www.skellerupholdings.com
Legal Advisors
Chapman Tripp
23 – 29 Albert Street
Auckland 1010
New Zealand
Bankers
ANZ Bank New Zealand Limited
23 – 29 Albert Street
Auckland 1010
New Zealand
Auditors
Ernst & Young
2 Takutai Square
Britomart
Auckland 1010
New Zealand
Share Registrar
Computershare Investor Services Limited
Private Bag 92119
Auckland 1142
New Zealand
159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Managing your shareholding
Online
To change your address, update your payment instructions and
to view your investment portfolio including transactions, please visit:
www.computershare.co.nz/investorcentre
General enquiries
Email: enquiry@computershare.co.nz
Telephone: +64 9 488 8777
Facsimile: +64 9 488 8787
Please assist our registrar by quoting your Common Shareholder Number (CSN).
83

Skellerup Holdings Limited
L3, 205 Great South Road
Greenlane, Auckland 1051, New Zealand
PO Box 74526, Greenlane
Auckland 1546, New Zealand
E ea@skellerupgroup.com
T +64 9 523 8240
W www.skellerupholdings.com

---

21 August 2020
Skellerup FY20 NPAT equals prior year record result
Skellerup today announced audited net profit after tax of $29.1 million for the year ended 30 June
2020.
Highlights for the year ending 30 June 2020
• Resilience and skill of our people to sustain business operations in a challenging
environment.
• Revenue of $251.4 million, up 2% on pcp.
• Earnings before interest and tax (EBIT) of $42.5 million, up 2% on pcp.
o Agri Division EBIT of $25.4 million, up 11% on pcp.
o Industrial Division EBIT of $20.9 million, down 9% on pcp.
• Net profit after tax (NPAT) of $29.1 million, in line with pcp.
• Operating cash flow of $48.0 million up 66% on pcp.
• Final dividend of 7.5 cps (50% imputed) bringing the total dividend to 13.0 cps (50%
imputed) for the full year, in line with pcp.
Skellerup financial results overall are in line with the prior corresponding period (pcp) record result
despite the impact of Covid-19 restrictions on both the supply chain and markets globally. The
performance reflects the resilience and robustness of the business and highlights the benefit of
providing essential products, particularly in the Agri Division, to international markets.
Agri Division EBIT was a record $25.4 million. CEO David Mair said the result underscored the
importance of the essential dairy consumables products that Skellerup design, manufacture and sell
globally.
“The strength and resilience of our Agri business is seen in the record result. We increased sales of
essential rubberware products into the USA, achieved operational gains despite the impact of
COVID-19 restrictions at our key Wigram facility and had a strong contribution from Silclear, our
silicone rubber products business acquired on 01 November 2020.”
Industrial Division EBIT was $20.9 million, down 10% on the record result achieved in the pcp. Mair
said results varied across the Division reflecting the diversity of customers and applications served.
“With minor exceptions, our businesses have continued to operate throughout the varying COVID-19
lockdowns across the world, reflecting the critical nature of many of our products. However,
demand was adversely affected for some of our products used in infrastructure and oil and gas
applications. Despite this, we are in a secure position for continued growth, with a strategy focused
on specialist products across infrastructure, roofing, flow control, healthcare, medical and marine
applications.”
Chair Liz Coutts noted that FY20 had seen the resilience of Skellerup’s business model and strategy
well and truly tested.