Skellerup reports record first half and increases guidance

Skellerup Holdings Limited
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Skellerup Holdings Limited
Reporting Period Six months to 31 December 2020
Previous Reporting Period Six months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$136,589 11%
Total Revenue $136,589 11%
Net profit/(loss) from
continuing operations
$19,459 61%
Total net profit/(loss) $19,459 61%
Interim/Final Dividend
Amount per Quoted Equity
Security
$ 0.06500000
Imputed amount per Quoted
Equity Security
$0.01263889
Record Date 05/03/2021
Dividend Payment Date 18/03/2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.6585 $0.6137
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

authorised
to make this announcement
Graham Leaming
Contact person for this
announcement
Graham Leaming
Contact phone number 021 271 9206
Contact email address graham.leaming@skellerupgroup.com
Date of release through MAP

18 February 2021

Unaudited financial statements accompany this announcement.

---

1
Y
2
F
HALF YEAR REPORT 2021

Business Review
Chair and CEO Review 3
Our Business Strengths 6
Our Brands 7
Financial Statements
Income Statement 9
Statement of
Comprehensive Income 10
Statement of
Changes in Equity 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the
Financial Statements 14
Corporate Directory 19
Contents
Revenue
$
136.6m
11%
EBIT
$
27.6m
53%
NPAT
$
19.5m
Operating
cash flow
$
35.1m
33%
61%
Interim
Dividend
6.5
cps
18%
Earnings
per share
9.98
cps
61%
2

Chair and
CEO Review
$000 Unaudited
Half-year Ended
31 December 2020
Half-year Ended
31 December 2019
Percentage
Change
Revenue136,589122,97611%
Earnings before interest and taxation27,55017,99853%
Net profit after taxation19,45912,07361%
Earnings per share (cents)9.986.1961%
Dividend per share (cents)6.505.5018%
Cash (net debt)(12,956)(34,655)-63%
Skellerup again demonstrated
we have a robust business that is
generating earnings and cash flow
growth from delivering critical
products to our customers around
the world. For the six months ended
31 December 2020, Skellerup
recorded a net profit after tax
(NPAT) of $19.5 million. This was
an outstanding record result and
a 61% improvement over pcp.
This result is the outcome of our consistent
core strategy across our global business.
We design and develop innovative engineered
products that deliver real solutions to original
equipment manufacturer (OEM) customers.
Working closely with customers to clearly
understand their requirements and challenges
is critical to ensuring we rapidly develop and
deliver prototypes and ultimately consistent
standards-compliant products.
While our strategy is unchanged, our
leaders and teams have been challenged.
They have shown great resilience and
adaptability to overcome the impacts and
constraints of Covid-19 to ensure we meet
customer requirements. Despite some
project timelines extending because of
Covid-19, we have successfully moved
into production with new products and
customers across the world, contributing
to Group revenue growth of 11% to $136.6
million in the first half of the year.
Working capital improvements further
boosted the impact of earnings growth
to deliver a record operating cash flow
of $35.1 million, up 33% on pcp. This
surpassed funding required for dividends
and capital expenditure, enabling a
reduction in net debt to $13.0 million at
the end of December 2020.
3

Industrial Division
Skellerup’s Industrial Division achieved a record
EBIT of $15.5 million, up 52% on the pcp.
Revenue grew by 7% due to increases across
the Division but most notably from increased
sales of potable water, roof flashing, and
plumbing products in Australia and U-Dek
marine foam decking in the US, Europe,
Australia and New Zealand.
Revenue growth was achieved at improved
margins reflecting the value of the products
delivered. Operational improvements including
lower material costs and improved freight
arrangements were also key contributors to the
earnings growth. Our leaders are successfully
moving resources into areas where the largest
benefits can be achieved.
Our strategy to design and deliver consistent,
high-quality engineered, standards-compliant
products for key OEM customers in
international markets has and will continue
to generate revenue and earnings growth.
We have a strong pipeline of new business
at various stages of development.
Industrial
$000 Unaudited
Half-year Ended
31 December 2020
Half-year Ended
31 December 2019
Percentage
Change
Revenue85,70879,8127%
Earnings before interest and taxation15,54210,20352%
Agri
$000 Unaudited
Half-year Ended
31 December 2020
Half-year Ended
31 December 2019
Percentage
Change
Revenue50,92343,18118%
Earnings before interest and taxation15,3119,80856%
Agri Division
Skellerup’s Agri Division achieved a record
EBIT of $15.3 million, up 56% on the pcp.
Revenue growth of 18% was the outcome
of increased dairy rubberware sales in
international markets (particularly in Europe),
increased rubber footwear sales in New
Zealand and a full six-month contribution from
Silclear (this was acquired in November 2019
meaning it contributed for only two months
in the pcp).
Operational improvements were also a
significant contributor to the record EBIT
achieved. We have made further operational
gains at our Wigram facility including
improvements in cycle times and changes
in shift patterns. These have smoothed the
peaks and troughs of manufacturing, resulting
in reduced costs of production, and improved
inventory management.
Our ability to rapidly develop new solutions is a
competitive edge. This allied with the essential
nature of the food grade dairy rubberware
(including silicone), filter and animal hygiene
products we produce, mean we continue to
play a crucial role in maintaining milk quality
and protecting animal health around the world.
4
SKELLERUP HALF YEAR REPORT 2021

Dividend
Record first half earnings and operating cash
flow, plus increased expectations for the full
year have enabled the Board to declare an
18% increase in the interim dividend to 6.5
cents per share, imputed 50%. This will be
distributed on 18 March 2021 to shareholders
on the register at 5:00pm on 5 March 2021.
Outlook
We have a robust business that is generating
earnings and cash flow growth from delivering
critical products to our customers around
the world. Customer demand remains strong
across our Group. Extended shipping times
and increased freight costs due to congestion
and availability will have some impact in the
near term. We have also seen some increases
in raw materials and will be impacted by the
recent strengthening of the NZ dollar. However,
we have taken early steps to manage these
matters and will continue to ensure we are
able to meet our customers’ needs. We expect
FY21 NPAT to be in the range of $33 million
to $37 million.
The Board is proud of the contribution from
our global team, particularly considering
the significant challenges many continue to
face across the world. We remain focused
on ensuring Skellerup’s team remain well
supported and will continue to invest in the
business to grow sustainable earnings and
shareholder returns.
Elizabeth (Liz) Coutts
Chair and Director
David Mair
Chief Executive Officer
and Director
5
We have a robust business
that is generating earnings
and cash flow growth from
delivering critical products
to our customers around
the world.

Our Business Strengths
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.
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.
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.
SKELLERUP HALF YEAR REPORT 2021
6

Our Business Strengths Our Brands
Industrial
Division
Keeping potable water separate from
grey water for industrial applications.
Leveraging our innovative intellectual
property across adjacent sectors.
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
RED BAND
7

Consolidated
Financial Statements
for the half year ended 31 December 2020
SKELLERUP HALF YEAR REPORT 2021
8

Income Statement
for the half-year ended 31 December 2020




Note
Half-year
Ended
31 Dec 2020
$000
(Unaudited)
Half-year
Ended
31 Dec 2019
$000
(Unaudited)
Revenue2136,589 122,976
Cost of sales(80,966)(76,971)
Gross profit55,623 46,005
Other income/(expenses)1,054 366
Distribution expenses(7,738)(7,147)
Marketing expenses(8,128)(10,976)
Administration expenses(13,261)(10,250)
Profit for the period before tax, finance costs and share of net
profit of associates

27,550

17,998
Finance costs(1,135)(1,268)
Share of net profit of associates accounted for using the equity method(50)(31)
Profit for the period before tax26,365 16,699
Income tax expense(6,906)(4,626)
Net after-tax profit for the period, attributable to owners of the Parent19,459 12,073
Earnings per share
Basic earnings per share (cents)9.986.19
Diluted earnings per share (cents)9.896.14
Net tangible assets per share (cents)65.8561.37
9

Statement of Comprehensive Income
for the half-year ended 31 December 2020
Half-year
Ended
31 Dec 2020
$000
(Unaudited)
Half-year
Ended
31 Dec 2019
$000
(Unaudited)
Net profit after tax for the period19,45912,073
Other comprehensive income
Will be reclassified subsequently to profit or loss when
specific conditions are met
Net increase/(decrease) in cash flow hedge reserve542523
Income tax related to increase/(decrease) in cash flow hedge reserve(152)(152)
Not expected to be reclassified subsequently into profit or loss
Foreign exchange movements on translation of overseas subsidiaries(3,988)282
Income tax related to gains/(losses) on foreign exchange movements
of loans with overseas subsidiaries

96

-
Other comprehensive income net of tax(3,502)653
Total comprehensive income for the period attributable
to equity holders of the Parent

15,957

12,726
SKELLERUP HALF YEAR REPORT 2021
10

Statement of Changes in Equity
for the half-year ended 31 December 2020
Fully Paid
Ordinary
Shares
Cash Flow
Hedge
Reserve
Foreign
Currency
Translation
Reserve
Employee
Share Plan
Reserve
Retained
Earnings
Total
$000
(Unaudited)
$000
(Unaudited)
$000
(Unaudited)
$000
(Unaudited)
$000
(Unaudited)
$000
(Unaudited)
Balance 1 July 202072,173176(7,615)374119,455184,563
Profit for the period----19,45919,459
Other comprehensive income-390(3,892)--(3,502)
Total comprehensive income
for the period
-390(3,892)-19,45915,957
Share incentive scheme233--(300)411344
Dividends paid----(14,606)(14,606)
Balance 31 December 202072,406566(11,507)74124,719186,258
Balance 1 July 201972,173132(9,771)149115,709178,392
Profit for the period----12,07312,073
Other comprehensive income-371282--653
Total comprehensive income
for the period
-371282-12,07312,726
Share incentive scheme---113113
Dividends paid----(14,607)(14,607)
Balance 31 December 201972,173503(9,489)262113,175176,624
11

Balance Sheet
as at 31 December 2020
As at
31 Dec 2020
$000
(Unaudited)
As at
30 Jun 2020
$000
(Audited)
As at
31 Dec 2019
$000
(Unaudited)
Current assets
Cash and cash equivalents20,04413,61713,625
Trade and other receivables44,42746,40540,215
Inventories49,62152,09850,511
Income tax receivable203749
Derivative financial assets1,002378698
Total current assets115,297112,572105,058
Non-current assets
Property, plant and equipment85,61887,84690,054
Right of use assets20,06921,81119,862
Deferred tax asset2,8633,1252,643
Goodwill54,53654,90854,511
Intangible assets1,4671,2171,233
Investment in associate1,4911,7251,702
Derivative financial assets333438284
Total non-current assets166,377171,070170,289
Total assets281,674283,642275,347
Current liabilities
Trade and other payables28,79224,80621,246
Provisions5,3424,8114,744
Income tax payable2,8251,119837
Interest-bearing loans and borrowings-830-
Lease liabilities - short term4,3054,5442,947
Derivative financial liabilities323440132
Total current liabilities41,58736,55029,906
Non-current liabilities
Provisions1,8981,2831,381
Interest-bearing loans and borrowings33,00041,30048,279
Deferred tax liabilities2,1282,0421,978
Lease liabilities - long term16,72317,77217,027
Derivative financial liabilities80132152
Total non-current liabilities53,82962,52968,817
Total liabilities95,41699,07998,723
Net assets186,258184,563176,624
Equity
Share capital72,40672,17372,173
Reserves(10,867)(7,065)(8,724)
Retained earnings124,719119,455113,175
Total equity186,258184,563176,624
SKELLERUP HALF YEAR REPORT 2021
12

Cash Flow Statement
for the half-year ended 31 December 2020
Half-year
Ended
31 Dec 2020
$000
(Unaudited)
Half-year
Ended
31 Dec 2019
$000
(Unaudited)
Cash flows from operating activities
Receipts from customers136,886134,773
Interest received308
Dividends received12
Payments to suppliers and employees(95,743)(102,774)
Income tax paid(4,939)(3,170)
Interest and bank fees paid(661)(811)
Interest on right-of-use asset leases(474)(457)
Net cash flows from/(used in) operating activities35,10027,571
Cash flows from investing activities
Proceeds from sale of property, plant and equipment28132
Payments for property, plant and equipment(2,135)(2,268)
Payments for intangible assets (414)(304)
Acquisition of a business, net of cash acquired-(6,204)
Net cash flows from/(used in) investing activities(2,268)(8,744)
Cash flows from financing activities
Proceeds from loans and advances(9,034)2,064
Proceeds from issue of shares233-
Repayments of lease liabilities(2,197)(2,278)
Dividends paid to equity holders of Parent(14,607)(14,607)
Net cash flows from/(used in) financing activities(25,605)(14,821)
Net increase/(decrease) in cash and cash equivalents7,2274,006
Cash and cash equivalents at the beginning of the period13,6179,639
Effect of exchange rate fluctuations(800)(20)
Cash and cash equivalents at the end of the period20,04413,625
13

Notes to the Financial Statements
as at 31 December 2020
1. Corporate Information
The financial statements of Skellerup Holdings Limited, for the half year ended 31 December
2020, were authorised for issue in accordance with a resolution of the Directors dated
17 February 2021.
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.
Summary of Significant Accounting Policies
a) Basis of Preparation
This general-purpose condensed financial report for the half year ended 31 December 2020
has been prepared in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34
Interim Financial Reporting.
The half year financial report does not include all notes of the type normally included within the
annual financial report and, therefore, cannot be expected to provide as full an understanding
of the financial performance, financial position and financing and investing activities of the
consolidated entity as does the full financial report.
It is recommended that the half year financial report be read in conjunction with the annual report
for the year ended 30 June 2020 and considered together with any public announcements made
by Skellerup Holdings Limited during the half year ended 31 December 2020 in accordance
with the continuous disclosure obligations of the NZX listing rules.
All accounting policies and methods of computation are the same as those adopted in the most
recent annual financial report.
The financial statements are presented in New Zealand dollars and all values are rounded to the
nearest thousand dollars ($000).
SKELLERUP HALF YEAR REPORT 2021
14

2. Segment Information
The Group’s operating segments are Agri, Industrial and Corporate; these are 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 Segment
The Agri segment designs, manufactures and distributes essential dairy consumables, which
includes milking liners, tubing, filters and feeding teats. The Division also designs, manufactures
and sells rubber footwear for Agri and specialist applications.
Industrial Segment
The Industrial segment designs, manufactures and distributes engineered polymer products for
a range of applications including potable and waster water, roofing and construction, automotive,
machinery, electrical, appliances, sport and leisure, mining, health and medical.
Corporate Segment
The Corporate segment includes the Parent Company and other central administration expenses
that have not been allocated to the Agri and Industrial segments.
15

2. Segment Information (continued)

For the half-year ended
31 December 2020
Agri

$000
Industrial

$000
Corporate/
Elimination
$000
Total

$000
Revenue50,92385,708(42)136,589
Segment EBIT15,31115,542(3,303)27,550
Profit before tax, finance costs and share
of net profit of associates
27,550
Finance costs(1,135)
Share of net profit of associates(50)
Profit before tax26,365
Income tax expense(6,906)
Net after-tax profit19,459
Assets and liabilities
Segment assets120,407132,26828,999286,206
Segment liabilities13,87538,41742,12499,948
Net assets106,53293,851(14,125)186,258
Other segment information
Capital expenditure1,2121,379552,646
Cash flow
Segment EBIT15,31115,542(3,303)27,550
Share of net profit of associates-(50)-(50)
Adjustments for:
- Depreciation and amortisation2,0191,616203,655
- Depreciation right of use assets4182,143372,598
- Non-cash items--460460
Movement in working capital5,1483,756238,927
Segment cash flow22,89623,007(2,673)43,140
Finance and tax cash expense(5,600)
Movement in finance and tax accrual(2,440)
Net cash flow from operating activities35,100
SKELLERUP HALF YEAR REPORT 2021
16

2. Segment Information (continued)

For the half-year ended
31 December 2019
Agri

$000
Industrial

$000
Corporate/
Elimination
$000
Total

$000
Revenue43,18179,812(88)122,976
Segment EBIT9,80810,203(2,013)17,998
Profit before tax and finance costs17,998
Finance costs(1,268)
Share of net profit of associates(31)
Profit before tax16,699
Income tax expense(4,626)
Net after-tax profit12,073
Assets and liabilities
Segment assets123,058132,97719,312275,347
Segment liabilities11,41434,98952,32098,723
Net assets111,64497,988(33,008)176,624
Other segment information
Capital expenditure6,2781,28587,571
Cash flow
Segment EBIT10,0929,919(2,013)17,998
Share of net profit of associates-(31)-(31)
Adjustments for:
- Depreciation and amortisation2,0791,629203,728
- Depreciation right of use assets3062,028372,371
- Non-cash items--461461
Movement in working capital7736,5543737,700
Segment cash flow13,25020,099(1,122)32,227
Finance and tax cash expense(3,981)
Movement in finance and tax accrual(1,913)
Net cash flow from operating activities26,333
17

3. Dividends Paid
Half-year
Ended
31 Dec 2020
$000
Half-year
Ended
31 Dec 2019
$000
Declared and paid during the period
Final dividend for June 2020 year on ordinary shares of 7.5 cents per share,
imputed to 50%, paid on 16 October 2020
(2019: 7.5 cents per share imputed to 50%, paid on 17 October 2019)
Net dividend paid14,60614,607
Subsequent to the six-month period, the Board of Directors resolved to pay an interim dividend of
6.5 cents per share (imputed 50%), on the 195,276,382 ordinary shares on issue for a total amount
of $12,692,965. The dividend will be paid on 18 March 2021 to shareholders on the register at
5.00pm on 5 March 2021. The Dividend Reinvestment Plan will not be operative for this dividend
payment.
This compares to the prior-year interim dividend of 5.5 cents per share, totalling $10,711,434
which was paid on 19 March 2020.
4. Interest-bearing Loans and Borrowings
Bank loans are provided under a $70 million multi-currency facility agreement with ANZ Bank
New Zealand Limited which has a review date of 31 August 2023.
5. Events after the Balance Sheet Date
There have been no subsequent events after 31 December 2020 requiring disclosure.
SKELLERUP HALF YEAR REPORT 2021
18

Corporate Directory
Directors
EM Coutts, ONZM, BMS, FCA, CFloD
Chair
BD Cushing, BCom, ACA
AR Isaac, CNZM, BCA, FCA
DW Mair, BE, MBA
PN Shearer, BCom
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).
19

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

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Skellerup Holdings Limited
Distribution Notice




Please note: all cash amounts in this form should be provided to 8 decimal places

Section 1: Issuer information
Name of issuer Skellerup Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code SKL
ISIN (If unknown, check on NZX
website)
NZSKXE0001S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date Close of trading on 05/03/2021
Ex-Date (one business day before the
Record Date)
04/03/2021
Payment date (and allotment date for
DRP)
18/03/2021
Total monies associated with the
distribution
1

$12,692,965
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.07763889
Gross taxable amount
3
$0.07763889
Total cash distribution
4
$0.06500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.00573529
Section 3: Imputation credits and Resident Withholding Tax
5

Is the distribution imputed Fully imputed
Partial imputation X
No imputation

1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.

If fully or partially imputed, please
state imputation rate as % applied
6

14%
Imputation tax credits per financial
product
$0.01263889
Resident Withholding Tax per
financial product
$0.01298194
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Graham Leaming
Contact person for this
announcement
Graham Leaming
Contact phone number 021 271 9206
Contact email address Graham.leaming@skellerupgroup.com
Date of release through MAP

18/02/2021





6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.

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1
H Y 2 1 R E S U LT S
18 February 2021
David Mair, CEO & Executive Director
Graham Leaming, CFO

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
Record NPAT of $19.5 million up 61% on pcp
•Revenue growth, operational gains, improved margins.
•Unchanged strategy, focus to clearly understand key customer needs and rapidly develop
solutions.
Record Agri Division EBIT of $15.3 million up 56% on pcp
•Revenue growth in international and domestic markets and operational gains.
Record Industrial Division EBIT of $15.5 million up 52% on pcp
•Revenue growth mainly from international markets plus margin improvements and
reduced overheads.
Record operating cash flow of $35.1 million up 33% on pcp
•Funded dividends, capex and significant reduction in debt.
•Net debt down to $13 million.
Increased interim dividend pay-out of 6.5 cents per share
•Up 18% on pcp.
Upgraded FY21 earnings guidance
•FY21 NPAT expected to be in the range of $33 to $37 million.
Covid-19
•Remains a significant issue for our people in Europe and the USA in particular and until
recently in Australia (Victoria).
•Leaders and teams managing operational and logistics complications very well.
Skellerup Key Points HY21
0
2
4
6
8
10
12
14
16
18
20
HY17HY18HY19HY20HY21
NPAT (million)
Net Profit after Tax
0
5
10
15
20
25
30
35
HY17HY18HY19HY20HY21
EBIT (millions)
EBIT by Segment
*
IndustrialAgri
* Excludes Corporate
1

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
Skellerup Financial Highlights HY21
NZ$ MillionHY17HY18HY19HY20HY21
Revenue97.3116.7120.2123.0136.6
EBITDA16.921.323.024.133.9
Depreciation (PP&E) and Amortisation (Intangibles)3.63.83.63.73.8
Depreciation (ROU Assets)---2.42.6
EBIT13.317.519.418.027.6
Finance costs (Debt)0.60.90.90.80.7
Finance costs (Lease Liability related to ROU Assets)---0.50.5
Tax expense3.84.95.24.66.9
NPAT8.911.713.412.119.5
Earnings cents per share4.66.16.96.210.0
Dividend cents per share3.54.05.55.56.5
Operating cash flow9.714.813.024.135.1
Net Debt35.634.832.434.713.0
Capital &intangible expenditure6.93.11.92.62.6
Acquisition & Investment---5.0-
•Revenue up $13.6 million and
11% on pcp.
•EBIT up $9.6 million and
53% on pcp.
•NPAT up $7.4 million and
61% on pcp.
•Interim dividend of 6.5 cents
per share (imputed 50%), up
18% on pcp.
•Operating cashflow up $35.1
million and 33% on pcp,
funded:
•Capex (net of disposals)
of $2.3 million.
•Dividends of $14.6 million.
•Right of use asset lease
liability payments of $2.2
million.
•Debt reduction of $15.5
million.
2

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
•Dairy contribution up from sales
growth (all markets but notably
Europe & Asia) and operational
gains.
•Silclear contribution in line with
expectation.
•Potable water market share gain
in the USA, Asia and Australia.
•High (global) growth for U-Dek
Marine foam.
•Sustained demand for Footwear in
NZ –strong growth through
hardware channel.
•Government grants includes
forgiveness of PPP loans in the US
and Australian jobkeeper
payments.
•Corporate costs includes provision
for costs to defend claim of
divested Alucobond business.
Skellerup NPAT HY20 to HY21
3
0
2
4
6
8
10
12
14
16
18
20
NPAT HY20 to HY21 ($Million)

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
Skellerup HY21 Agri Division
Revenue up 18% and EBIT up 56% against pcp
Dairy revenue and margin growth
•Rubberwaresales up in all markets (notably Europe).
•Silclear performance very good (pcp was only 2 months).
•Operational process and efficiency gains –combination of cycle
time improvements, shift changes, inventory management
reducing unit cost of production.
Footwear sales growth
•Sales up 16% in NZ –rural and hardware channels.
•International sales mixed –Europe up and US down (production
constrained).
•Operational performance continues to be good.
Agri Revenue by Region
NZ$ MillionHY17HY18HY19HY20HY21
Revenue36.643.142.343.250.9
EBIT8.49.59.69.815.3
EBIT %23.022.122.822.730.0
4
40%
33%
20%
4%
2%
1%
FY19
NZ
North America
Europe/UK
Australia
Asia
Other
36%
30%
24%
4%
4%
2%
FY20
NZ
North America
Europe/UK
Australia
Asia
Other

6
What we do Agri

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
Skellerup HY21 Industrial Division
NZ$ MillionHY17HY18HY19HY20HY21
Revenue60.873.778.079.985.6
EBIT7.210.011.710.215.5
EBIT %11.813.615.012.618.2
Revenue up 7%, EBIT up 52% against pcp
Growth from potable and waste water applications
•Recovery from Covid impact and market share gains in Australia and US.
Growth from high performance marine foam applications
•Ultralon U-Dek sales up significantly in all markets.
Growth from DEKS roof and sealing products
•Revenue growth in Australia and Europe.
Overall margin and cost improvements
•Sales prices, freight, material costs and overheads.
Pipeline
•Good depth and breadth of projects to provide future earnings growth.
Other
•PPP loan forgiveness (US) and Jobkeepersubsidies (Australia) boost.
27.8
31.6
16.5
20.5
6.9
7.0
7.0
6.8
4.3
6.2
5.7
5.7
8.5
6.2
2.4
2.0
0
10
20
30
40
50
60
70
80
90
100
HY20HY21
Industrial Revenue (millions)
Industrial Revenue Categorisation
Health & Medical
General
Electrical & Appliances
Sport and Leisure
Extraction & Processing
Automotive &
Machinery
Roofing & Construction
Potable & Waste Water
6

8
What we do Industrial

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
Skellerup HY21
NZ$ MillionHY17HY18HY19HY20HY21
Agri EBIT8.49.59.69.815.3
Industrial EBIT7.210.011.710.215.5
Corporate EBIT(2.3)(2.1)(1.9)(2.0)(3.3)
EBIT13.317.519.418.027.6
Finance costs0.60.90.91.31.1
Share of net loss of associate--0.0(0.0)(0.1)
Tax expense3.84.95.24.66.9
NPAT8.911.713.412.119.5
Reconciliation of Segment EBIT to Group NPAT
10

H Y 2 1 R E S U L T S1 8 F E B R U A R Y 2 0 2 1
This presentation contains not only a review of operations, but also some forward looking statements about
Skellerup Holdings Limited and the environment in which the company operates. Because these statements are
forward looking, Skellerup Holdings Limited's actual results could differ materially.
Although management and directors may indicate and believe that the assumptions underlying the forward
looking statements are reasonable, any of the assumptions could prove inaccurate or incorrect and, therefore,
there can be no assurance that the results contemplated in the forward looking statements will be realised.
Please read this presentation in the wider context of material previously published by Skellerup Holdings Limited.
Skellerup Disclaimer
11

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18 February 2021
Skellerup reports outstanding earnings growth for first half and increases full year FY21
earnings guidance
Skellerup announced today a record unaudited net profit after tax (NPAT) of $19.5 million for the six
months ending 31 December 2020 and increased its full year FY21 NPAT guidance to $33 to $37
million.
Key points for the six months ending 31 December 2020
• Revenue of $136.6 million, up 11% on prior comparative period (pcp)
• Earnings before interest and tax (EBIT) of $27.6 million, up 53% on pcp
o Agri Division EBIT of $15.3 million, up 56% on pcp
o Industrial Division EBIT of $15.5 million, up 52% on pcp
o Corporate Costs of $3.3 million, up 64% on pcp
• Net profit after tax (NPAT) of $19.5 million, up 61% on pcp
• Operating cash flow of $35.1 million, up 33% on pcp
• Net debt of $13 million down $15.5 million on FY20 year-end
• Interim dividend of 6.5cps (an increase of 1.0c per share), up 18% on pcp
• FY21 NPAT forecast in the range of $33 million to $37 million.

CEO David Mair said he was very pleased with the earnings growth achieved across all businesses.
“We are focused on our core strategy to deploy our expertise to design and develop innovative
engineered products that deliver real solutions to OEM customers. We continue to work closely with
customers to clearly understand their requirements and challenges to rapidly develop and deliver
prototypes followed by standards-compliant product.”
Mair noted that the first half NPAT was boosted by approximately $0.5 million due to the impact of
Covid-19 and Brexit. “Production constraints caused by Covid-19 caused some deferral of sales from
the prior year into the first half of the current year. In addition, uncertainty over Brexit related
disruption saw some customers increasing purchases in December 2020 providing an additional
earnings boost for the first half of FY21. Our leaders continue to lead and manage around the
impacts of Covid-19 very well. We have seen some project timelines for new products extend but
despite this, we have successfully moved into production with new products and customers in
Australia, the USA and Europe.”
Skellerup’s Agri Division achieved a record EBIT of $15.3 million, up 56% on the pcp. Revenue grew
18% with increased dairy rubberware sales in international markets (particularly into Europe),
increased rubber footwear sales in NZ and a full 6-month contribution from Silclear (acquired in
November 2019). Mair said operational improvements were also a significant contributor to
earnings growth. “We have made further improvements in the efficiency of our operations at

Wigram. Improvements in cycle times has enabled better inventory management to smooth out the
peaks and troughs of manufacturing and changes in shift patterns has been key and delivers
sustainable earnings improvement.”
Skellerup’s Industrial Division also achieved a record EBIT of $15.5 million up 52% on pcp. Revenue
grew by 7% which reflected increases across the Division but most notably increased sales of roof
flashing and plumbing products in Australia and U-Dek marine foam decking in the US, Europe,
Australia and New Zealand. Mair said the improvement in all parts of the Industrial Division was the
result of improvements in all areas. “Our returns have improved because of product mix, new
business, better operational execution and reduced costs. Our leaders are focused on moving time
and resources into areas where the largest benefits can be achieved, and we continue to have a
strong pipeline of new business which will underpin growth in future years.”
Corporate costs of $3.3 million were up $1.3 million due to provisioning for costs associated with
defending a claim against a business Skellerup sold in 2008 and increased performance related
employee expenses.
The excellent first half result meant that expectations for the FY result had increased. Skellerup now
expects to deliver FY21 NPAT in the range of $33 million to $37 million. This is an increase on the
range of $30 million to $35 million advised in October last year. “We are experiencing extended
shipping times and increased freight costs due to congestion and availability. We have also seen
some increases in raw materials and will be impacted by the stronger NZ dollar. All of these factors
will have some impact in the second half of the year. However, we have taken early steps to manage
these risks and will continue to ensure we are able to meet our customers’ needs.”
Chair Liz Coutts said the outstanding first half earnings, record operating cash flow of $35.1 million
and increased expectations for the full year, allowed the Board to declare an 18% increase in the
interim dividend to 6.5 cents per share, imputed 50% (the same as in the pcp).
“During the first half of the year, Skellerup has again demonstrated we have a robust business that is
generating earnings and cash flow growth from delivering critical products to our customers around
the world. The Board is proud of the contribution from our global team, particularly considering the
significant challenges many face across the world. We remain focused on ensuring Skellerup’s team
remain well supported as we target continued investment to grow sustainable earnings and
shareholder returns.”

For further information please contact:
David Mair Graham Leaming
Chief Executive Officer Chief Financial Officer
021 708 021 021 271 9206