Revenue and operating gains drive record Skellerup NPAT

19 August 2021
Revenue growth and operating gains drive record Skellerup NPAT
Skellerup today announced record audited net profit after tax of $40.2 million for the year ended 30
June 2021, a 38% increase over the previous record result.
Highlights for the year ending 30 June 2021
• Strategy and business model continuing to deliver substantial growth in earnings and returns
to shareholders.
• Revenue of $279.5 million, up 11% on prior comparative period (pcp).
• Earnings before interest and tax (EBIT) of $56.4 million, up 33% on pcp.
o Industrial Division EBIT of $32.7 million, up 57% on pcp.
o Agri Division EBIT of $30.5 million, up 20% on pcp.
• Net profit after tax (NPAT) of $40.2 million, up 38% on pcp.
• Operating cash flow of $58.8 million, up 22% on pcp.
• Net debt of $8.7 million, down $19.8 million on pcp.
• Final dividend of 10.5 cps (50% imputed) bringing the total FY21 dividend to 17.0 cps (50%
imputed) for the full year, up 31% on pcp.
Skellerup CEO, David Mair said the overall growth in earnings was the outcome of continuing to
focus on working closely with key customers to provide engineered products used in a range of
critical applications people interface with every day. “Skellerup’s products are critical to the supply
of safe potable (drinkable) water; the production of milk and milk products; the performance of
appliances in homes and workplaces; health and hygiene in hospitals, shops and homes; the safety
and comfort of sporting and leisure equipment; and the integrity of roofing systems on homes and
workplaces.”
Mair highlighted that Skellerup was focused on delivering growing and sustainable financial returns.
“We invest in our people to develop better and more efficient ways of designing and manufacturing
products. We design products and review processes to reduce waste and increase the efficiency of
materials and energy used. We are proud to support the communities where we operate. The
ongoing Covid-19 pandemic has created significant challenges and changes for our teams around the
world. They have embraced these opportunities and delivered improved financial returns, better
environmental outcomes including reduced water consumption and packaging waste and more
efficient energy usage while keeping our workplaces safe.”
Industrial Division EBIT was $32.7 million, a record result and up 57% on pcp. Revenue was $177.3
million up 12% on pcp. Mair said revenue growth was broad based across the Division’s product
range and markets.
“During FY21 we achieved growth in our largest US and Australian markets. Our capability to change
our product formulations to meet increasingly demanding standards and combine materials to
deliver valuable solutions to our key customers has been – and will remain – key to our ongoing
growth. Most notably in FY21 roofing and construction products and U-DEK marine foam achieved

significant growth and stronger demand for potable water products was apparent in the second half
of the year.”
Agri Division EBIT was $30.5 million, a record result and up 20% on pcp. Revenue was $102.2 million
up 9% on pcp. Mair said the result again underscored the importance of the essential dairy
consumables products that Skellerup design, manufacture and sell globally.
“Skellerup is the second largest manufacturer of food grade dairy rubberware in the world. The US
and NZ remain our largest markets, but Europe and Asia were the fastest growing in FY21. We were
able to meet the increased demand by improving our business processes and productivity with
limited capital investment. FY21 also included a full year contribution from Silclear (acquired in
November 2019) compared to the eight-month contribution in the pcp. Footwear sales were also up
lead by the Red Band gumboot; the quality and durability of this product is synonymous with NZ
farming and sales continue to grow in urban markets.”
Chair Liz Coutts noted that NPAT was a key financial measure, but equally operating cash flow was a
critical performance measure to ensure the firm had the capacity to continue to fund growth.
“In FY21, we achieved a record operating cash flow of $58.8 million – up 22 per cent on the prior
record achieved in FY20. This enabled us to fund our capital expenditure requirements, reduce debt
and substantially lift our final dividend. We have a robust Balance Sheet with very low debt
providing the platform and opportunity for continued investment in growth.”
Coutts advised that the final dividend would increase from 7.5 to 10.5 cents per share (50% imputed
as in the pcp) to be paid to shareholders on 15 October 2021 with record date of 01 October 2021.
This will bring the total dividend pay-out for the financial year ended 30 June 2021 to 17.0 cents per
share up 31% on pcp.
“We are very pleased to reward shareholders in Skellerup. Over the past 10 years the pay-out has
almost trebled. This demonstrates Skellerup’s strong cash flow and the Board’s practice of paying
out a consistently high proportion of earnings,” Coutts said.
Coutts said the Group has started strongly in FY22 and she looked forward to updating shareholders
further at the Annual Meeting on 27 October 2021.

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

---

ANNUAL REPORT
2021

Business Review
Highlights 4
Chair Review 6
What We Do 8
Global Reach 10
CEO Review 12
Skellerup Strengths 18
Financial Review 20
Skellerup People 24
Sustainable Growth 26
Board of Directors 28
Corporate Governance 32
Financial Statements
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
Shareholder Information
Directors’ Disclosures,
Remuneration and Shareholding 78
Corporate Directory 82

Skellerup is a global leader in the design,
manufacture and distribution of precision
engineered products. We make essential
components, often within larger products
used in dairy, potable and waste water, roofing,
plumbing, sport and leisure, electrical, health
and hygiene, automotive and mining.
We employ a diverse and highly skilled
workforce of over 800 people. Our ethos is
to develop strong and deep relationships with
key partners, in particular original equipment
manufacturers (OEMs) and major distributors.
Our customers see us as a key part of their
R&D team and our branded products carry
a strong and reliable reputation.
We are a global business with almost 80% of
our revenue derived from international markets.
We have manufacturing and distribution facilities
and partners in New Zealand, Australia, China,
Vietnam, UK, Italy and the USA.

SKELLERUP ANNUAL REPORT FY21
4
Highlights
Diverse and experienced team
Driving operational efficiency
Strong financial growth
(FY20 $42.5m)
$
56.4
M
Earnings
(EBIT)
33%
Earnings
(NPAT)
(FY20 $29.1m)
$
40.2
M
38%
To t al
injury rate
(FY20 1.33)
0.87
35%
Regular
cyber-security
training for all
office people
Education
Operating
Cashflow
(FY20 $48.0m)
$
58.8
M
22%
(F Y20 $251.4m)
$
279.5
M
Revenue
growth
11%
(FY20 798)
813
People
2%
Waste
reductions
Elimination
Of cardboard
packaging for
vacuum systems
3
ERP
Upgrades
(FY20 1)
(FY20 – f:49% m:51%)
Demographic
(gender)
52
%
MALE
48
%
FEMALE
Wigram
Production volume up
On staffing increase of 2%
Jiangsu
Footwear volume up
No change in staffing
Vacuum Systems volume up
10%
14%
38%
Productivity

5
3
Acquisitions
over last 5 years
(Silclear / Nexus / Simlim)
Fewer than 2 years
2 - 10 years
10 -20 years
Greater than 20 years
20%
42%
26%
12%
Years’ service for staff
Focused on community & environment
Delivering
for our
customers
New products
to market
700OVER
last 24 months
Financial return
ratio (RONA)
(FY20 23%)
29
%
25%
EPS growth
(FY20 14.9CPS)
20.6
CPS
38%
Dividend per
share growth
(FY20 13CPS)
17
CPS
31%
Water
reductions
At Jiangsu
facility in China
55%
Countries
73
SOLD TO
4,500
Customers
OVER
GHG
*

emissions
(FY20 2,278)
2,339
(Tonnes C0
2
-e)
GHG emissions /
revenue
8%
C0
2
-e emissions per
$1million of revenue
*
Greenhouse Gas

SKELLERUP ANNUAL REPORT FY21
6
Chair Review
It is pleasing to report on the 2021 financial year and with that
another record financial result for Skellerup. Audited net profit after
tax (NPAT) of $40.2 million represents a 38 per cent improvement
over the prior year’s record result.
Operating cash flow of $58.8 million was a
milestone too, reflecting both record earnings
and excellent management of working capital.
Accordingly net debt at the end of FY21 stood
at $8.7 million. Skellerup’s financial position has
continued to strengthen, which provides a great
platform from which to fund organic investment
opportunities and acquisitions that complement
and strengthen our business.
In last year’s report, the resilience of our
business model and strategy was highlighted
by the stress test provided by the COVID-19
pandemic. This year’s result reaffirms that
message and demonstrates that Skellerup’s
business model and strategy are continuing
to deliver substantial growth in earnings and
returns to shareholders. FY21 NPAT was 82
per cent higher than achieved five years ago.
The challenges of COVID-19 have brought out
the very best in our people and the Board could
not be prouder of their unwavering commitment.
We thank our people around the world for
their outstanding contributions over the past
12 months and the development work done in
the years preceding. In some countries, our
people have endured long and more restrictive
conditions, requiring prolonged periods of
time working from home. More recently, the
limited supply of some materials, limited
freight availability and escalating costs of both
materials and freight have required flexible
planning, prompt action, and adjustments
to ensure customer needs are met. We are
extremely grateful for our people’s tenacity and
adaptability as they remain focused on satisfying
customers, improving how we do things and
working on new solutions for key customers.
The growth in earnings is the outcome of our
teams continuing to focus on working closely
with key customers to provide engineered
products used in a range of critical applications
we interface with every day. Skellerup’s products
are critical to the supply of safe potable
(drinkable) water; the production of milk and
milk products; the performance of appliances in
your homes and workplaces; health and hygiene
in hospitals, shops and homes; the safety and
comfort of your sporting and leisure equipment;
and to the integrity of the roof systems on your
homes and workplaces. Our CEO, David Mair,
provides more detail in his statement and for
a visual representation, please see pages
8 to 9 of this report.
We embrace our responsibility to develop our
people, provide them with a safe and vibrant
place to work, and to grow our business in a
sustainable and efficient way. In recent years
several frameworks have been developed
for reporting on environmental, social and
governance matters (ESG). Rather than adopting
one of these frameworks, our focus has been
on sharing with you what we do. You can read
more on our ESG approach and achievements
on pages 26 to 27 of this report and on our
website. As the frameworks are maturing, we
are evaluating the merits of adoption to enhance
how we present this information in the future.
Skellerup has a global footprint, with businesses
in New Zealand, Australia, China, Italy, the UK
and the US. Our Board have a diverse range of
skills, knowledge and governance experience
to deal with the complexities that come with
operating an international business.

7
The growth in earnings is the
outcome of our teams continuing
to focus on working closely
with key customers to provide
engineered products used in a
range of critical applications we
interface with every day.
In August 2020, Paul Shearer, Senior Vice-
President – Sales and Marketing for Fisher
& Paykel Healthcare, joined as a Director, and
his skill set has further strengthened the Board.
Our collective experience has been especially
critical over the past 18 months and the Board
are committed to the work required to govern
what is a growing worldwide business. Gaining
detailed and regular insight into Skellerup’s
businesses is a key part of being an effective
board. While COVID-19 has restricted
international travel over the past 12 months,
we have visited sites in New Zealand to
observe and understand our operating
environments and meet with our people. The
profiles and skills of our Board are on pages
28 to 31 of this report and on our website.
The Directors are very pleased to announce a
final dividend, imputed to 50 per cent, of 10.5
cents per share, which takes the total full-year
dividend to 17.0 cents per share, a 31 per cent
increase on the prior year. The final dividend
will be paid on 15 October 2021 with a record
date of 1 October 2021.
We are pleased with our record result in FY21
and, in line with our strategy, will continue to
focus on working closely with key customers
to provide engineered products used in a
range of critical applications and to look for
investment opportunities that complement
and contribute to our ongoing growth.
We expect FY22 will again be challenging
given continued disruptions due to the
COVID-19 pandemic, but this will also
provide opportunities for growth.
We look forward to the challenge and thank
shareholders for their ongoing support and
trust in the Board, executive and employees
of Skellerup.
Elizabeth (Liz) Coutts
Chair and Director

SKELLERUP ANNUAL REPORT FY21
8
What We Do
Skellerup designs and manufactures components and products used in
a wide range of everyday applications that often must meet stringent
food, drinking water, hygiene and safety standards.
Industrial & Retail
• Valves and seals for control systems used in food, liquid, and
material processing plants
• Flashings, washers, sealing and insulation products for roofing,
solar, plumbing and HVAC applications
• Gaskets, joiners, couplings and seals for potable, waste and
stormwater pipes
• Covers and lids for water, fire and electrical services on streets
• Components for mobile equipment
• Components for point-of-sale devices
Recreation
• Foam used in marine decking
• Foam used in ski and snowboard
boot liners
• Foam used in protective equipment
for field sports including rugby
and hockey
• Foam for buoyancy applications
and fender systems
• Gumboot throwing!
Medical & Health
• Face masks and protective
equipment for hospital operating
theatres
• Filters and seals used in
respiratory devices
• Orthotics and prosthetics
• Hygiene and sanitisation devices
• Hospital equipment and visual
management systems

9
Skellerup has extensive expertise in combining materials including
rubber (including silicone and liquid silicone), plastic, and metals to
meet these demanding requirements.
Residential
• Seals, diaphragms, and valves used in
home appliances (washing machines,
dryers, dishwashers, refrigerators and gas
cooktops), hot water systems and heating
systems
• Diaphragms and seals for residential and
commercial irrigation systems
• Seals and cartridges used in taps and
showerheads in kitchens and bathrooms
• Flashings, washers, sealing products and
insulation for roofing, solar, plumbing and
HVAC applications
• Gaskets, joiners, couplings and seals for
potable, waste and stormwater pipes
• Bedding and furniture materials
Transport
• Vacuum systems on trucks for
transportation of water and liquid waste
• Seals, injectors and drive shaft couplings
for motor vehicles (cars and trucks)
• Seals and gaskets for GPS and payment
applications and systems
Dairy
• Milking liners, tubing, filters and
components for dairy milking systems
• Animal hygiene products
• Protective rubber footwear
• Pumps for dairy milking systems
• Valves and seals for irrigation systems

SKELLERUP ANNUAL REPORT FY21
10
SKELLERUP ANNUAL REPORT FY21
10
Global Reach
Skellerup is a global business. We employ over 800 people spanning
multiple geographies. Our people collaborate across teams and
locations to serve our customers all around the world. Our world-class
manufacturing and distribution facilities are based in New Zealand,
Australia, China, Vietnam, UK, Italy and the US.
Of Group Revenue
18
%
Australia
Of Group Revenue
22
%
New Zealand
Of Group Revenue
20
%
UK & Europe
Of Group Revenue
10
%
Asia

1111
Global Reach
Design, manufacture and
distribution in New Zealand,
Australia, North America, Asia,
UK, Europe and Central America
Sport, Leisure,
Health & Medical
(Ultralon and Nexus)
Design, manufacture and distribution
in New Zealand, Australia, North
America, Asia, UK and Europe
Roofing, construction
and plumbing
(Deks)
Design, manufacture and
distribution in New Zealand,
Australia, North America, and
China and Europe
Extraction and waste
(Masport and Flexiflo)
Design, manufacture and distribution
in New Zealand, Australia, North
America, Asia, UK and Europe
Potable and waste
water, appliances
and automotive
(Gulf, Tumedei and Skellerup)
Design, manufacture and
distribution in New Zealand,
Australia, UK, Europe, China,
North America and South America
Agri
(Skellerup, Conewango
Ambic, Silclear and Stevens)
Of Group Revenue
1
%
Central &
South America
Of Group Revenue
29
%
North America

SKELLERUP ANNUAL REPORT FY21
12
CEO Review
Leading Skellerup on behalf of over 6,000 shareholders and
more than 800 employees is a great privilege, opportunity
and responsibility.
I am delighted with the excellent results our
team have delivered over the past 12 months.
These were not achieved by accident; they
are a credit to and a reflection of the skill and
commitment of our people working through
very challenging times. I am extremely
grateful to and proud of our team across the
world for the outcomes delivered on behalf of
our shareholders.
FY21 net profit after tax (NPAT) was a record
$40.2 million, a 38 per cent increase over
our previous record achieved in both FY20
and FY19.
Revenue growth from new and existing products,
operational improvements at our facilities and
good management of our indirect costs all
contributed to this result. NPAT is a key financial
measure but so is cash. In FY21, we achieved
a record operating cash flow of $58.8 million
- up 22 per cent on the prior record achieved
in FY20. These achievements have enabled us
to fund our capital expenditure requirements,
reduce debt and substantially lift our dividend,
as outlined by our Chair, Liz Coutts, in her
report. You can read more about our financial
results on pages 20 to 23.
Skellerup in the community
C A S E

STUDY
In May 2021, Skellerup launched a limited-edition Pink Band gumboot in support of
Breast Cancer Foundation NZ to help raise awareness and assist those affected by the
disease, particularly within rural communities. Nine New Zealanders are diagnosed
with breast cancer every day, a third of whom live outside the main centres and have
the added complexities of access to treatment and taking time off farm for treatment.
Five dollars from every pair sold was donated to Breast Cancer Foundation NZ and
our Wigram team held a Pink Ribbon Breakfast raising additional money.
Skellerup continued its support of Gumboot Friday in 2021. The Key to Life Charitable
Trust, started by Mike King in 2010, run the I Am Hope youth-and community-focused
support group to help educate and fund counselling for young people. Gumboot Friday
is their key national fundraising initiative and this year was held on 28 May. We are proud
to support the work of Mike and his remarkable team who help our young people as we
know mental health is a real issue in the lives of our people and our communities.

13
In past reports I have mentioned how
we work closely with customers to
create solutions for problems they face.
Often this requires a combination of
deep material science, engineering,
tooling and process expertise to
ensure our products deliver more
value for customers. In FY21, we
concluded a project to reformulate
compounds for a range of potable
water products in Australia. Supplying
products critical to the delivery of
safe water and food means we must
therefore meet strict and evolving
standards. By working closely with
the customer and local regulatory
authorities we have demonstrated
a capability and understanding that
has enhanced customers’ trust in our
products and this is now resulting in
additional growth opportunities.
Today there is a great deal of focus on
measuring business success through a broader
lens than traditional financial metrics. This very
overt emphasis may seem relatively new, but the
imperative to build a business with sustainable
financial returns has always been central to
our business philosophy. We continue to work
closely with customers to innovate and grow.
To do this successfully we develop and invest
in our people, minimise waste and we make a
positive contribution to the communities and
environments in which we operate.
Earlier this year I wrote to our teams about
purpose. There are five groups of people we
consider:
1. Customers – without demanding customers,
we have no business and no opportunities
to develop new solutions. We must keep
developing true customer focus – good for
our customers and good for Skellerup.
2. Suppliers – we want to be a demanding but
fair customer of our suppliers. We want to
be the best supplier to our customers and
the best customer for our suppliers.
3. Employees – we have a responsibility to
look after our employees and pay them
well. We offer training based on attitude
and willingness to learn but it is not an
automatic right for all employees.
4. The community that we influence, which is
made up of our customers, our suppliers
and our staff (that includes their family and
friends). This is the immediate scope of our
influence and we focus on integrity in all
our dealings.
5. Shareholders – the shareholders are the
owners of the business and deserve a good
return from the business for the choice they
make to invest in Skellerup.
COVID-19 has challenged our business leaders
and teams to change the way in which we
operate and to embed new processes to keep
our people safe while maintaining the flow of the
many essential products we supply to customers
all over the world.
Ensuring the
safe supply of
potable water
C A S E

STUDY
Several of our teams used this opportunity to
review and permanently change our processes
and invest in systems to improve how we interact
with customers.
Our emphasis on health and safety is evident
in our results. Most importantly, we have active
teams at every site owning their programmes.
For FY21, we achieved a significant
improvement on all metrics. Lost-time injuries
were reduced, and we did not have any serious
harm incidents. We engage external parties to
help identify improvements and we invest in
our facilities to eliminate risks. You can read
more about our approach to health and safety
and our results on page 24 to 25.

SKELLERUP ANNUAL REPORT FY21
14
Industrial Division
Our Industrial Division designs and
manufactures products that often combine
multiple materials such as rubber, plastic and
metals to perform in a wide range of critical
applications. During FY21 sales growth and
gross margin improvements combined to
increase earnings before interest and tax (EBIT)
by 57 per cent over the prior corresponding
period (pcp) to a record $32.7 million.
FY21 revenue growth was broad-based across
our product range and geography. Products
used in potable (drinkable) and waste water
applications across the world continue to be
the largest slice of Industrial Division revenue.
During FY21 we achieved growth in our largest
US and Australian markets. Our capability
to change our product formulations to meet
increasingly demanding standards and combine
materials to deliver valuable solutions to our key
customers has been - and will remain - key to
our ongoing growth.
Working with customers to understand their
needs and designing products that perform
is the common thread across our Industrial
Division’s businesses. This approach helped
drive significant growth for our roofing and
construction products and our marine foam
products during FY21. We expect this approach
will generate significant growth for our vacuum
systems business in FY22 as we launch two
new key products to the market.
While we are focused on growing the business,
we are also disciplined in eliminating business
that generates marginal returns and requires
disproportionate resource to do so. During FY21
we discontinued a small range of products used
in roofing applications in the US. We managed
the exit well and continue to work with the
customer on new product developments.
DEKS providing
faster sealing
solutions
C A S E

STUDY
Dektites have long been synonymous
with sealing penetrations through metal
roofs in New Zealand, Australia, North
America and Europe. In 2019 DEKS
launched the Rapid Flash Dektite.
This lead-free, self-adhesive product
substantially reduces installation time
and provides superior water sealing
properties. Proof of its benefits are sales,
which grew by 68 per cent during FY21.
Rapid growth for
U-DEK
®
marine
decking
C A S E

STUDY
U-DEK marine decking has been
developed using Ultralon’s unique
formulations to produce world-leading
closed-cell cross-linked foam. Ultralon
®

foam is used where performance is
critical. The consistent cell structure
in this product has seen it used in
orthotics, prosthetics, ski and snow
boots as well as in protective headgear
and sportswear for many years. In recent
years, our U-DEK marine decking sales
have surpassed all other applications
including a 54 per cent increase in sales
in FY21. Leading sporting and leisure
boat manufacturers in the US, New
Zealand, Australia, Asia and Europe are
using U-DEK on their boat decks due
its superior performance, durability,
comfort and cosmetic appearance.
Photo Credit: Lissa Photography

15
Agri Division
Our Agri Division is primarily focused on
and is a world leader in the design and
manufacture of essential consumables for the
global dairy industry. We also design and
manufacture rubber footwear for farming and
specialty applications including fire, forestry
and electricity. During FY21, sales growth
and gross margin improvements combined to
increase EBIT by 20 per cent over the pcp to a
record $30.5 million.
Skellerup is the second largest manufacturer
of food-grade dairy rubberware in the world.
Our products are critical to the supply of
fresh milk and milk products. The US and
New Zealand remain our largest markets, but
Europe and Asia were the fastest-growing
regions in FY21. Growth in Europe was helped
by the successful integration of Silclear,
acquired during FY20. Silclear designs and
manufactures silicone tubing and consumables
used in dairy sheds globally but particularly
in Europe. A broadened product range and a
European presence provide a strong platform
for future growth.
Our Wigram facility is the largest in our Group
and the hub for the design and manufacture of
our dairy rubberware products. Throughout
FY21 we continued to improve our processes to
meet a nine per cent increase in demand without
significant capital investment nor increases
in operating costs. We have further plans to
increase capacity for relatively low investment
to ensure we meet growing demand in our
international markets.
Skellerup’s Red Band gumboot is synonymous
with New Zealand. In FY21, sales grew not only
through traditional rural channels but also in
urban markets. Everyone appreciates the quality
and durability of the Red Band.
Process improvements generated gains that
helped offset the impact of increased raw
material and freight transport costs. Indirect
costs were well managed, and our hedging
programme offset the impact of a stronger
New Zealand dollar. As a result, Agri Division
EBIT increased by $5.1 million over FY20.
Acquisitions
to enhance
our business
C A S E

STUDY
In November 2019 we added Silclear
to the Skellerup Group. Silclear design
and manufacture food-grade silicone
rubber tubing, diaphragms, valves and
liners particularly for the dairy industry.
Growth in demand has resulted in an
additional manufacturing shift and an
increase in the size of our team. We
expect to continue to grow sales of
this product range and to seek further
opportunities to expand the Skellerup
Group so we can further enhance what
we offer to our customers.
C A S E

STUDY
World-leading
dairy business
Skellerup’s dairy rubberware design,
manufacture and distribution facility in
Wigram, Christchurch, New Zealand,
which opened in November 2016,
supplies essential food-grade dairy
consumables to over 100 customers in
24 countries around the world.

SKELLERUP ANNUAL REPORT FY21
16
Processes and Systems
Accurate and timely information is critical to
making good decisions. Over the past five years
we have invested steadily in improving our
business processes and the related information
systems across the Group. This continued
during FY21. We believe there are three critical
elements to getting these investments right.
The first is to standardise business processes
to eliminate waste and simplify data structures
and information flows. The second is committing
substantive internal resource to own the projects.
The third is to ensure we have platforms that
are secure and minimise cyber security risks.
These three elements are the cornerstone of our
philosophy to ensure we have robust, secure
information systems that provide our teams with
the information they need to enable them to
make good decisions.
Investing in
better business
C A S E

STUDY
During FY21 we invested in improving
our information systems platform for
several businesses within the Group.
Project Vanilla was the upgrade of our
platform for our Agri Division business
in Wigram, Christchurch, New Zealand.
It had been 15 years since the previous
implementation and the business has
changed markedly in the meantime! The
name Vanilla was chosen to symbolise
our objective to simplify and adopt
standardised business processes and
tools, enabling access to more insightful
information, a more secure environment
and ultimately better outcomes for our
customers and people. The project
was successfully concluded in March
providing the business with the platform
we need for business growth.
Project Tika involved changing the
platform for two of our Industrial
Division businesses. Tika means
exact. Delivering precise, reliable
products for our customers is key to
our success. Having an information
systems platform that underpins this is
critical. This project was successfully
completed in May.

17
The Future
I started this statement reflecting on what we
have achieved in FY21. We are very pleased with
the outcomes, but, other than building on what
we have learnt and achieved, FY21 is now firmly
in our rear-vision mirror. COVID-19 unfortunately
remains ever present and continues to cause
challenges and disruptions. To date, we have
navigated the impacts of restricted supply of
raw materials, congested freight channels (and
increased costs on both) and interruption to
manufacturing operations. However, these risks
have not abated and with COVID-19 variants
arising, we will need to continue to be quick
and agile to react to these impacts and more. In
addition, we have a pipeline of new products and
opportunities for the future.
I am confident we have the team and
capabilities to overcome these challenges and
deliver further revenue and earnings growth.
David Mair
Chief Executive Officer
and Director
We continue to work closely with
customers to innovate and grow.
To do this successfully we develop
and invest in our people, minimise
waste and we make a positive
contribution to the communities and
environments in which we operate.

SKELLERUP ANNUAL REPORT FY21
18
Skellerup Strengths
Focus on products
in key markets
Our products
are essential
components
in the delivery
of food, water,
infrastructure
and health.
Revenue by
Application
F Y21
Excellent year-on-year
performance with a robust balance
sheet, growing cash flow, low debt
and a strong dividend yield.
Proven track record
of earnings and
cashflow growth
01
A track record
for rapid R&D
Our team know their markets and
are constantly delivering new
products and improvements. Our
deep customer relationships mean
our development investment is
based on real customer needs.
700
new products in
the last two years
Over
02
03
20.6
C
Earnings
per share
FY18FY19FY20
FY21
Agriculture (37%)
Potable & Waste Water
(incl Plumbing) (21%)
Roofing & Construction (18%)
Automotive & Machinery (5%)
Sport & Leisure (5%)
Exploration & Mining (5%)
Electrical & Appliances (4%)
Health & Medical (1%)
Other (4%)

19
Strong
Global Delivery
F Y21
Top 20
Customers
F Y21
We are a global
business with world-
class manufacturing
and distribution
facilities allowing us
to serve customers
and markets all
around the world.
Highly experienced
technical team
Our team are highly skilled and
trained, from our technical salespeople
through to our product designers; we
understand our customers and markets
04
Strong relationships
across global markets
06
05
Customer relationships
with growth potential
We have strong and deep relationships
with our 4,500 customers, particularly OEM
customers, where we continue to deliver
new products and developments.
Our top 20 customers
shows a balance of strong
long-term customers and
new business growth.
New inclusions to
our top 20 customers
since FY17.
5
Of our top 20 customers
in FY21 were also top 20
customers in FY17.
15
813
Global team
across 6 countries
New Zealand (22%)
Australia (18%)
US (29%)
Europe (14%)
UK & Ireland (6%)
Asia (10%)
Other (1%)

SKELLERUP ANNUAL REPORT FY21
20
Financial Review
We are committed to delivering sustainable growth in 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.
For the year ended 30 June 2021 (FY21),
Skellerup recorded a record audited net profit
after tax (NPAT) of $40.2 million, achieved a
record operating cash flow of $58.8 million,
and declared a gross dividend pay-out of 17
cents per share (50 per cent imputed). The
NPAT achieved is a 38 per cent improvement
on the record result achieved in the prior
corresponding period (pcp).
Operating cash flow improved by 22 per cent
on the pcp due to the growth in earnings and
1
Gross yield is determined by comparing the F Y21 dividends paid and declared totalling 17 cents per share (50% imputed)
with the closing share price on 30 June 2021.
Net Profit After Tax
($m)
FY20
FY21
FY18
FY19
F Y17
40.2
2 9.1
2 9.1
2 7. 3
2 2.1
Dividend Declared
(cents per share)
FY20
FY21
FY18
FY19
F Y17
17.0
13.0
13.0
11. 0
9.5
FY21 Group Earnings and Dividends
continued sound management of working
capital. Inventory held at year-end was down
four per cent on the prior year-end and
receivables continued to be well managed,
representing 55 days outstanding at year-end.
The gross dividend pay-out declared is up
4 cents (31 per cent) on the pcp and represents
a gross yield
1
of 4.1 per cent for shareholders.

21
Industrial Division Agri Division
Industrial Division sales were a record $177.4 million,
up 12 per cent on FY20. EBIT was $32.7 million – also
a record and up 57 per cent on FY20.
Our Industrial Division focuses on international
markets, working closely with customers to design
and manufacture products that often combine
multiple materials such as rubber, plastic and metals
to perform in a wide range of critical applications.
During FY21, sales growth was broad-based.
Growth in market share from the sale of existing
and new products in all markets for potable and
waste water, roofing and plumbing, sport and
leisure, and appliance applications increased
revenue by $19.5 million.
Sales growth from higher-margin new products
helped increase the overall gross margin
percentage despite the impact of recent increases
in raw material and freight costs and the stronger
New Zealand dollar. The growth in sales was
achieved without any overall increase in indirect
costs. As a result, FY21 Industrial Division EBIT
increased by $11.8 million over the prior year. This
improvement includes $1.2 million from the US and
Australian governments’ COVID-19 support which
related to FY20, but conditions meant this could not
be recognised until FY21.
Corporate costs were up $3.0 million on the prior year due to provisioning for costs associated with defending a
claim against a business Skellerup sold in 2008 as well as increased performance-related employee expenses.
Agri Division sales were a record $102.2 million,
up nine per cent on FY20. EBIT was $30.5 million,
also a record and up 20 per cent on FY20.
Our Agri Division is primarily focused on and is
a world leader in the design and manufacture of
essential consumables for the global dairy industry.
During FY21, sales growth was achieved in all markets,
particularly Europe, New Zealand and Asia. Sales
were also boosted by a full-year contribution from
Silclear (acquired in November 2019). Skellerup’s
Agri Division also designs and manufactures rubber
footwear for farming and specialty applications
including fire, forestry and electricity. Sales growth in
the New Zealand market, particularly through hardware
channels, contributed to the overall $8.6 million
increase in FY21 Agri Division revenue.
Revenue growth was further boosted by improved
operational performance at our key manufacturing
facilities in New Zealand and China. Process
improvements generated gains which more than
offset the impact of increased raw material and freight
transport costs. Indirect costs were well managed,
and our hedging programme offset the impact of
a stronger New Zealand dollar. As a result, EBIT
increased by $5.1 million over FY20.
To enable Directors and management to lead Skellerup and measure our results, we segment our
financial results into two divisions – Industrial and Agri.
Corporate

Industrial Division EBIT
($m)
Agri Division EBIT
($m)
Industrial Division EBIT
EBIT %
Agri Division EBIT
EBIT %
20%
16%
12%
8%
4%
0%
FY18FY19FY20FY21FY17
30
20
10
0
35
25
15
5
32%
28%
24%
20%
FY18FY19FY20FY21FY17
30
20
10
0
35
25
15
5

SKELLERUP ANNUAL REPORT FY21
22
A continued and close focus on receivables
was maintained given the heightened risks
arising from the interruptions to supply
chains and markets. Receivables closed FY21
up 10 per cent on the prior year-end, just
below the 11 per cent increase in revenue.
Restricted availability of some raw materials
was anticipated, allowing us to build buffer
levels where possible, although more recently
this has been difficult. Longer shipping
times has resulted in increased levels of
inventory in transit to both our own and
our customers’ warehouses. Despite these
challenges a detailed focus enabled a four
per cent reduction of inventory at the end
of FY21 compared with the prior year-end.
Consequently, operating cash flow of $58.8
million was up 22 per cent on the pcp.
Our business model of customer-focused
development, the benefit of our investment
in our Wigram facility completed in 2016 and
partnerships with our manufacturing partners
mean our capital expenditure was again below
depreciation in FY21. As a result, the net book
value of plant, property and equipment reduced
by $2.4 million, or three per cent, over the
prior year-end. Investment in improving our
information systems to provide better business
information increased intangible assets by
$1.7 million over the previous year-end.
The combination of record earnings and
operating cash flows with sound capital
management meant net debt reduced to
$8.7 million - just 3 per cent of our total assets
and down $19.8 million on the prior year-end.
FY21 Financial Position
Operating Cash Flow
($m)
FY20
FY21
FY18
FY19
F Y17
58.8
48.0
28.9
28.3
21.2
Return on Net Assets
(%)
FY20
FY21
FY18
FY19
F Y17
28.7
23.0
23.4
2 3.1
20.6

23
Period Ending $000FY21FY20FY19FY18FY17
Total Revenue279,515251,389245,792240,408210,322
EBIT56,36142,48641,79839,78132,824
Finance Costs2,0812,5821,7851,8631,414
Share of net profit of associates(35)(73)23--
Profit before Tax54,24539,83140,03637,91831,410
Ta x
14,07010,76710,97310,6419,300
Net Profit After Tax40,17529,06429,06327,27722,110
EPS (c)20.614.915.014.111.5
Dividend (c)
17.013.013.011.09.5
Operating Cash Flow
58,79648,00628,92028,34521,229
Cash Reserves (Net Debt)(8,736)(28,513)(36,576)(30,719)(35,755)
Total Assets284,874283,642257,059252,025237,932
Total Liabilities88,72599,07978,66779,73978,685
Net Assets196,149184,563178,392172,286159,247
Return on Net Assets28.7%23.0%23.4%23.1%20.6%
Five-year financial summary
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 33 per cent and NPAT has increased by 82 per
cent. The sustained earnings growth has enabled an increase in the gross dividend pay-out (excluding
imputation credits) of 79 per cent over the same period.

SKELLERUP ANNUAL REPORT FY21
24
Skellerup People
Our people stay close to customers so we can work with them to
understand their needs and provide solutions that perform.
As our business has grown and changed, our
needs have too. Our global team have grown
to 813 people, an increase of 15 (2 per cent)
on the previous 12 months and an increase
of 55 (7 per cent) on five years earlier. These
increases compare to revenue growth of 11 per
cent over the past year and 33 per cent during
the past five years.
Our teams are based in New Zealand, Australia,
the US, China, the UK and Italy. Since COVID-19
first appeared, we have had no significant
redundancies; in fact, our businesses have
adapted and grown. This reflects the ability
of our teams to learn and adapt, and the
resilience of our businesses to external shocks.
Our diverse teams are essential to Skellerup’s
future success and responding to the ever-
changing environment we operate in. We do not
discriminate on gender or gender identity, race,
ethnicity, cultural background, physical ability
or attributes, age, sexual orientation, religious
or political beliefs. A breakdown of our gender
composition is shown on page 4 of this report.
We believe capital allocation is one of the
key responsibilities for senior management.
Capital allocation is aligning our best people
equipped with the required financial resources
to focus on the big projects that will make a
meaningful improvement to our business. The
development of our human capital or people
is linked to this. In FY21 (as highlighted in
the CEO’s statement) we invested significant
financial and human capital in upgrading our
information systems. The commitment of our
people to these projects was excellent and
ensured successful implementation. Equally
their involvement in these projects developed
their skills and expertise to perform in a
more effective manner in their day-to-day
roles, be it customer service, operations or
accounting. Ultimately all these improvements
translate to better experiences for our
customers, development and satisfaction for
our employees, and greater returns for our
shareholders. On-the-job development of our
people is complemented by formal skills,
leadership and functional training across
the Group. Over the past 12 months, some of
our business and team leaders have studied
management, financial and commercial papers
at short courses and as part of university
programmes. We will continue to invest in the
development of our people to grow leaders and
our business.
COVID-19 has starkly demonstrated the
importance of having an organisation that is
resilient, f lexible and adaptable. Our leaders
and teams throughout the world have navigated
the impacts of this - not just on their work but
also on their personal lives - with outstanding
skill and tenacity. For many of our people in
Europe, the US and Australia, they have either
adapted to prolonged stints of working from
home or to changes in behaviour needed to
work in our facilities around the world.

25
We look forward to the time when COVID-19
is under control, but having flexible working
arrangements to ensure we retain and attract
the right people will remain a key part of how
we do business. We have had for many years
and will continue to have roles that suit working
from home, flexible hours and part-time
arrangements.
Skellerup’s footprint is global and includes
working with manufacturing partners,
international suppliers and customers
throughout the world. The strength of our
relationships has enabled us to successfully
introduce new products remotely, since our old
model required engineers to visit in person.
Skellerup does not employ child or slave
labour and we ensure that our key partners
have the same standard. Regardless of our
global footprint, our commitment to maintaining
a high standard of ethics in how we operate
and do business is uniform across the world.
Each year, we work with our leaders to ensure
they and their teams spend time reviewing and
discussing the behaviours that are required (as
outlined in our Code of Ethics) and, equally
importantly, how they respond in the event they
do witness or suspect behaviour inconsistent
with this Code. We also educate on key policies
including Information Security and Acceptable
Use of Skellerup property. This is supplemented
by regular online cyber security training.
We consider education is a key defence against
unwanted intrusions to our business.
The protection and safety of our people and
others from accidental harm in our workplaces
is Skellerup’s highest priority. All our practices
and programmes are established with the
objective to keep our people safe and free from
workplace injury. Every Skellerup site has an
active Health and Safety Committee that meet
monthly, follow an annual plan of activities and
improvements to keep their workplaces safe,
and report monthly to the CEO on progress.
We use internal experts to complete peer
reviews on sites across the Group to ensure
the benefit of specific expertise is shared (for
example, guarding of machines). We also use
external experts to assess on a site-by-site
basis the processes, risks and behaviours
they observe and to report on improvements
required. Oversight of our programmes is
provided by the Board’s Health and Safety
Committee. A Health and Safety Report is also
submitted at each Board meeting, and Board
members periodically visit sites to observe
activities, and meet and discuss these with our
managers and teams.
Ultimately the success of our programmes
is measured by the number of injuries and
incidents that occur. In FY21 and for the second
successive year, we did not suffer any serious
harm injuries. We did have two staff members
suffer injuries which resulted in absences from
work (lost-time injuries) and we had five staff
require medical treatment for injuries that did not
require an absence from work (medically treated
injuries). We not only measure and review
injuries and medical treatment, we also actively
review near hits or incidents that could have
caused injury to ensure we learn and eliminate
the cause. Overall, in FY21 our total injury rate
1

was 0.87 down from 1.33 in FY20 and down
from 1.61 in FY19. We are committed to leading,
educating and investing time and resources to
continue this level of improvement and achieving
our goal of protecting our people and others
from accidental harm in our workplaces.
1
The total injury rate (TIR) 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 year-to-date hours worked, annualised and expressed as a percentage.
The TIR represents the percentage likelihood of being injured on each site. Zero TIR is the benchmark that all our sites are striving to achieve.

SKELLERUP ANNUAL REPORT FY21
26
Sustainable Growth
Achieving increasing sustainable financial returns has always been
and will continue to be central to Skellerup’s philosophy.
Sustainability at Skellerup has broad meaning.
It means working closely with customers so that
we truly understand their needs to enable us
to build long-lasting, valuable relationships. It
means developing and investing in our people
so that we have the expertise to grow and
sustainably meet our customers’ needs. And
it means minimising emissions and waste to
ensure our activities contribute positively to
the communities and environments in which
we operate. Sometimes it is perceived that
environmentally linked improvements come
at a net cost to a business. In our experience
many of the changes we have made and
demonstrated in the projects we describe
below have been good for the environment and
generated improved financial returns.
Reducing our emissions at Skellerup
Skellerup is a global business with facilities
in New Zealand, Australia, China, the US, UK
and Italy.
Our dairy rubberware design, manufacturing
and distribution facility in Wigram, Christchurch,
is our largest site and generates over 40 per
cent of scope 1 and 2 greenhouse gas (GHG)
emissions for the Group. At the start of FY21
we set a target to reduce scope 1 and 2 GHG
emissions at Wigram by 5 per cent. Several
initiatives were implemented throughout FY21,
including increasing the capacity of existing
equipment (without a higher energy usage),
improving plant utilisation and installing LED
lights. These actions resulted in our goal being
surpassed, with a 7 per cent reduction achieved
despite an increase in the volume of products
manufactured and revenue generated.
Our initiatives and achievements were not
limited to Wigram. At our Ambic facility in the
UK we invested in a series of improvements
to reduce scope 2 GHG emissions. By fitting
double-glazed windows, installing a new
climate control system and upgrading some
operating plant we were able to reduce energy
usage and achieve a 21 per cent reduction in
scope GHG emissions in FY21.
Continuous improvement at Skellerup
All Skellerup sites have initiatives to deliver
continuous environmental improvement including
lowering emissions and reducing waste.
Wigram energy efficiency gains on production increases
Volume of Wigram moulded product
On PCP
10
%
Wigram scope 1 & 2 GHG emissions
On PCP
7
%

27
Process improvements
During FY21 we made a series of improvements
at our facility in Jiangsu, China, to reduce
our environmental impact and upgrade our
workplace.
In FY18 we highlighted the replacement of our
coal-powered boiler with natural gas. During
FY21 we made further improvements to the
process to reduce the generated discharge
levels by 66 per cent.
Until late 2020 our Jiangsu facility utilised an
on-site well for its process and hygiene water
requirements. With a change to town water
supply we installed a water circulation system
to recycle water used in our manufacturing
process. The installation of this system has
reduced our water usage by 55 per cent.
We also invested in systems to improve the
collection and disposal of emissions generated
from our manufacturing process at Jiangsu
in FY21.
Reducing packaging waste
In prior years we have highlighted reductions in
production waste through reducing the number
of product rejects and improving tooling and
product design, as well as decreasing waste by
eliminating plastic bags from packaging dairy
liners. Reducing production waste is a constant
focus – along with environmental benefits, any
reduction in rejects translates to an increase in
saleable product, which enables us to meet our
customers’ needs faster or simply sell more!
In FY21 we eliminated cardboard box packaging
of our vacuum pumps by bolting the pumps to
pallets for transportation. We manufacture over
5,000 pumps per year, so the packaging saving
is significant. In addition to the environmental
benefits of less waste, we have reduced cost and
generated more productive time for our team
to build and assemble products – ultimately
translating to improved economic benefits for
shareholders.
Group energy efficiency gains on growing revenue
Scope 2
Emissions
Scope 1
Emissions
GHG emissions
(tonnes CO
2
-e)
GHG emissions
per $1 million
revenue
(tonnes CO
2
-e)
2000
1000
0
2500
1500
500
FY21FY20
960
1,379
862
1,416
2,3392,278
8
4
0
10
6
2
9.06
8.37
FY21FY20
Skellerup Group revenue up 11% and scope 1 and 2 GHG emissions for the corresponding
period increased by only 3% on pcp

SKELLERUP ANNUAL REPORT FY21
28
Board of Directors
The experience and diverse range of skills across Skellerup’s Board
ensures our plans are robust and pursued with vigour and sound
business discipline.
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.
She is currently Chair of Oceania
Healthcare Limited and EBOS
Group Limited and a member of
the Marsh New Zealand Advisory
Board. She is a past President of
the Institute of Directors, former
member of the Monetary Policy
Committee of the Reserve Bank of
New Zealand and also the Financial
Reporting Standards Board of the
Institute of Chartered Accountants
in New Zealand. Liz’s contribution
to governance was acknowledged
with her appointment as an Officer
to the New Zealand Order of
Merit (ONZM) in 2016. Liz joined
the Board in May 2002 and is
a member of the Audit, Health
and Safety, Remuneration and
Nomination Committees.
Independent Chair
Liz
Coutts
(ONZM, BMS, FCA, CFIoD)
Independent Director
Alan
Isaac
(CNZM, BCA, FCA)
Alan was appointed to the
Skellerup Holdings Board in
August 2016. Alan has considerable
experience governing and
leading businesses and sporting
organisations. Alan is currently
Chairman of the New Zealand
Community Trust. He is also a
director of Oceania Healthcare
Limited and Scales Corporation
Limited. He 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
and the New Zealand Institute
of Directors. Alan’s contribution
to sport and business was
acknowledged with his
appointment as a Companion of
the New Zealand Order of Merit
(CNZM) in 2013. Alan is Chair
of the Audit Committee and
also a member of the Health
and Safety, Remuneration and
Nomination Committees.
Independent Director
John
Strowger
LLB (Hons)
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.

29
Independent Director
David
Cushing
(BCom, ACA)
David was appointed to the
Skellerup Holdings Board in
August 2017. He is a former
investment banker with over
20 years’ experience as a director
of listed companies. David is
currently Executive Chairman
of Rural Equities Limited and
Managing Director of private
investment company H&G Limited.
David has expertise across a
broad range of industries having
previously been a director of
Fruitfed Supplies Limited, Williams
& Kettle Limited, Tourism Holdings
Limited, Acurity Health Group
Limited, PGG Wrightson Limited,
Red Steel Limited and NPT Limited.
David is a member of the Audit,
Health and Safety, Remuneration
and Nomination Committees.
Independent Director
Paul
Shearer
BCom
Paul was appointed to the Skellerup
Holdings Board in August 2020.
Paul is Senior Vice President -
Sales and Marketing for Fisher &
Paykel Healthcare. Paul has global
business experience spanning
thirty years with proven success
growing international markets and
leading multi-disciplinary teams
across forty countries. Paul is a
member of the Audit Committee
and the Health & Safety Committee.
Executive Director
David
Mair
(BE, MBA)
David was appointed to the
Skellerup Holdings Board in
November 2006, and as CEO
in August 2011. He has been
leading the Group for ten years
during which time it has achieved
significant revenue and earnings
growth by focusing on designing
and delivering critical engineered
products for OEM customers.
In particular, he has overseen the
transformation of the Agri Division
into a design-led, customer focused,
growth business following on from
the relocation from Woolston to
Wigram after the Christchurch
earthquakes. David is currently
a Director of Forté Funds
Management Limited. David is a
member of the Health and Safety
Committee.

Governance
Finance & Accounting
Risk Management
Capital Markets
Regulatory
Human Resources
Health & Safety
International
Growth
Agriculture
Infrastructure
Manufacturing & Supply Chain
Technology
C O R E COMPETENCIES

SKELLERUP ANNUAL REPORT FY21
30
Board Skills Matrix
Skellerup’s team seek to capitalise on our capability to design and
deliver world leading engineered specialist products particularly
for applications used to deliver safe food and water.
6/6
Governance
3/6
Finance & Accounting
6/6
Risk Management
6/6
Capital Markets
6/6
Regulatory
4/6

Human Resources
6/6

Health & Safety
4/6
International
6/6
Growth
4/6
Agriculture
4/6
Infrastructure
5/6
Manufacturing & Supply Chain
5/6

Technology
1. Core
2. Markets &
Customers
3. Manufacturing,
Supply Chain
& Technology

31
1. Core
Governance
i. Commitment to the highest standard of
governance including social and environmental
performance
ii. Prior Board experience (ideally NZX50 or
equivalent) or experience as Executive or advisor
to Board for at least 5 years
iii. Experience in governing highly effective
executive leaders
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, including intellectual
property, technology and cyber
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
2. Markets & Customers
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
3. Manufacturing, Supply
Chain & Technology
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

SKELLERUP ANNUAL REPORT FY21
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. The Corporate Governance statement was approved
by the Board of Skellerup Holdings Limited on 18 August 2021.
The information contained in this Corporate Governance statement
is current as at that date.
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 2020 (NZX Code) as required
by the NZX Listing Rules. Skellerup has achieved
full compliance with all recommendations of the
NZX Code in all material respects for the year
ended 30 June 2021.
Skellerup’s Constitution and each of the
Charters and Policies referred to in this
Corporate Governance section are available
on the Governance section of the Company’s
website at www.skellerupholdings.com.
Our approach for the financial year ended 30
June 2021 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.
Under Skellerup’s Code of Ethics, contributions
to political parties are expressly prohibited.
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, together with other key
Group policies, 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 CEO. Skellerup’s
procedure for reporting and dealing with
any concerns in respect of the conduct of
its directors or employees is set out in its
Whistle-blower Policy consistent with the
requirements of the Protected Disclosures Act
2000. 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

33
Directors and senior management and permits
trading only in prescribed trading windows or
with consent.
Principle 2 – Board Composition
and Performance
Skellerup complies with the recommendations
of Principle 2.
The Board has adopted a formal Board
Charter, which distinguishes and discloses
the respective roles and responsibilities of the
Board and Management. Written agreements
have been entered into for all Director
appointments since 2017.
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
ef fec t ively.
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. Paul Shearer was appointed as an
independent director by the Board on 21 August
2020 and then elected by shareholders at the
2020 annual meeting on 29 October 2020.
Currently, the Board comprises five non-
executive, independent Directors and one
executive Director. There is no shareholding
qualification for directors under Skellerup’s
Constitution, although all directors currently hold
a beneficial interest in Skellerup shares. See
page 78 for details of these interests.
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
18 August 2021. Having regard to the NZX
Listing Rules and the NZX Code, all five non-
executive directors have been determined
to be independent. See pages 28 to 31 or the
Company’s website for more information on
the tenure, skills and experience of Skellerup’s
current Board. The Independence status of
each Director is noted also on pages 28 and 29.
The Board Charter requires that the Chair be an
independent, non-executive director and that the
roles of the Chair and CEO are separate.
The table on page 35 shows each director’s
Board Committee memberships, the number of
meetings of the Board and its Committees held
during the year and the number of meetings
attended by each director. Minutes are taken
of all Board and Committee meetings.
The Board is responsible for managing
conflicts of interest identified by Directors.
Each Director is responsible for minimising
the possibility of any conflict of interest as
regards their involvement with the Company
by restricting involvement in other businesses
that would likely lead to a conflict of interest.
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 Group. 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, management and staff is included on
page 80. 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 ANNUAL REPORT FY21
34
Skellerup’s Diversity Policy requires
measurable objectives to be set by the Board
and reviewed annually. For FY21 Skellerup set
measurable objectives and reports progress as
follows:
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 FY21 Skellerup adopted a target of
zero complaints/findings of harassment,
discrimination or victimisation. No such
incidents were reported in FY21.
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. During FY21 Skellerup
has continued to support staff with flexible
working arrangements, implementing part
time employment and working from home
arrangements for certain roles.
3. Pay equity
Skellerup is committed to ensuring all of its
employees are paid equitably. In July 2021
as part of Skellerup’s annual salary review
management ensured all roles were 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 Committee
This Committee currently comprises five
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:
• 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 Committee reports the proceedings
of each of its meetings to the full Board.
The current composition of the Committee
is Alan Isaac (Chair), Elizabeth Coutts, John
Strowger, David Cushing and Paul Shearer.
2. Health and Safety Committee
This Committee comprises five 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

35
• 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, Paul Shearer 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’
remuneration packages.
Board and Committee Attendance 1 July 2020 to 30 June 2021
DirectorBoardAudit Health & SafetyRemunerationNomination
Liz Coutts8 of 85 of 53 of 32 of 21 of 1
Alan Isaac8 of 85 of 53 of 32 of 21 of 1
John Strowger8 of 85 of 53 of 3N/AN/A
David Cushing8 of 84 of 53 of 32 of 21 of 1
Paul Shearer
†
7 of 74 of 43 of 3N/AN/A
David Mair8 of 85 of 5
*
3 of 3N/AN/A
* David Mair attends Audit Committee meetings ex-officio at the invitation of the Committee
† Paul Shearer was appointed to the Board on 21 August 2020
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 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.

SKELLERUP ANNUAL REPORT FY21
36
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 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 Group.
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.
Principle 5 – Remuneration
Skellerup complies with the recommendations
of Principle 5.
The Board’s Remuneration Committee operates
under a formal Charter, which outlines its
membership, procedures, responsibilities
a nd aut hor it y.
The 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.
Skellerup has a written Remuneration Policy
in place. 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.
Directors’ Remuneration
The Directors’ remuneration, except for the CEO,
is paid in the form of director’s fees. Additional
fees are paid to the Chairs of the Board and
Audit Committee to reflect the additional
responsibilities of these positions. Skellerup
does not pay retirement benefits to Directors.
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 and are not part of any incentive
or share scheme. In the year ended 30 June
2021, total fees paid to non-executive Directors
amounted to $534,917. Details of Directors’
remuneration are shown on page 78.
CEO Remuneration
The CEO’s remuneration consists of fixed
remuneration, a short-term incentive (STI) and
long-term incentive (LTI). This is reviewed
annually by the Remuneration Committee and
the Board. Total remuneration paid to the CEO
in the year ended 30 June 2021 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 79.
Fixed Annual Remuneration
Fixed remuneration includes base salary and
employer superannuation contributions, where
provided. Base salary is determined by the
scale and complexity of the role. The Group
undertakes remuneration reviews as needed,
informed by an assessment of relative external
market data and organisational context.

37
Short-term Incentives (STI)
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 targets. The goals and targets set
in each category are specific, objective and
measurable, such that there is an accurate
judgment each year as to whether the goal has
been achieved or not.
The CEO approves (with notification to
Remuneration Committee) the annual STI
payments for all entitled staff other than the
CEO and CFO. STI payments are fully accrued
in the year to which they relate. The Board
approves the annual STI payments for the CEO
and CFO and targets for the year ahead.
Long-term Incentive (LTI)
The CEO and CFO participate in the
Company’s LTI plan. Details of this plan
are provided on page 67 and note 18 to the
Financial Statements.
Performance, Development and
Remuneration Review
Performance and development reviews
are completed to inform decisions around
remuneration adjustments. The remuneration
review process also includes consideration
of market information and in the case of
employees under Collective Employment
Agreements, negotiations with unions.
Pay Gap
The pay gap represents the number of
times greater the CEO remuneration is to an
employee paid at the median of all Group
employees. At 30 June 2021, the CEO’s base
salary at $740,111 was 14.40 times that of the
median employee at $51,405 per annum.
Principle 6 – Risk Management
Skellerup complies with the recommendations
of Principle 6.
The Board is responsible for the Group’s risk
management and internal control system.
Each Director has a sound understanding of the
key risks faced by Skellerup.
The Board reviews the Group’s Risk
Management Report prepared by the CEO
and management team on a semi-annual
basis and specific items including the Group’s
approach to managing information systems
risks are monitored monthly. 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 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 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. This
review is further facilitated by regular visits to
key sites providing the opportunity to engage
and query staff at all levels of the organisation.
Details of Skellerup’s key H&S risks and its
performance for the year ended 30 June 2021
are included on pages 24 to 25.
Principle 7 – Auditors
Skellerup complies with the recommendations
of Principle 7.
The Board annually reviews the quality and
independence of the external audit process,
which culminates in the audit report issued in
relation to the annual financial statements.

SKELLERUP ANNUAL REPORT FY21
38
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
Committee approves any non-audit services
that are provided by the external auditor.
Management and the external auditors
are invited to attend meetings of the Audit
Committee. The Audit Committee meets with
the auditors without any representatives of
management present at least twice per year.
Skellerup’s external auditor is Ernst & Young
(EY) and was reappointed by shareholders
at the 2020 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 and will act for a maximum of 5 years.
The audit partner attends the Annual Meetings
and is available to answer questions relating to
the audit. During the year ended 30 June 2021,
EY have not provided any non-audit services
to the Group.
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 Audit Committee
reviews and approves all internal audit activity
and meets with the internal auditors
as required.
The significant issues and judgements considered
by the Audit 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 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 policies and all information
released to the NZX. Shareholders and other
key stakeholders are also kept informed
through Annual and Interim reports of the
Company, the Annual Shareholders Meeting
and disclosures 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 2021

SKELLERUP ANNUAL REPORT FY21
40
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 77, which comprise the consolidated balance sheet of
the group as at 30 June 2021, 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 77 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2021 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
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 77, which comprise the consolidated balance sheet of
the group as at 30 June 2021, 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 77 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2021 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

41
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 77, which comprise the consolidated balance sheet of
the group as at 30 June 2021, 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 77 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2021 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
A member firm of Ernst & Young Global Limited



included the performance of procedures designed to respond to our assessment of the risks of material
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 half
of the group’s revenue generated in
countries other than New Zealand.

A significant area of focus when conducting
the audit was assessing the sufficiency of
audit evidence
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.

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 all
ocated a
scope and materiality reflecting the businesses risk profile.

The g
roup 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 group balances, the
group audit team performed analytical procedures in relation to a
number of smaller business units.

All com
ponent 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 discussions
with Skellerup
management and component teams in all major locations (New
Zealand, Australia, Italy, USA, UK and China). During these
discussions, the work performed by each team was discussed
including any key judgements as well as findings relevant to the
group audit.

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.
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.

SKELLERUP ANNUAL REPORT FY21
42
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 77, which comprise the consolidated balance sheet of
the group as at 30 June 2021, 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 77 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2021 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
A member firm of Ernst & Young Global Limited



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
directors 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
19 August 2021

43
Directors’
Responsibility
Statement
for the year ended 30 June 2021
The Directors are pleased to present the Group
financial statements of Skellerup Holdings Limited for
the year ended 30 June 2021.
The Group financial statements are dated 19 August
2021 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 2021, and the results of their operations and
cash flows for the year ended 30 June 2021.
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

SKELLERUP ANNUAL REPORT FY21
44
Income Statement
for the year ended 30 June 2021

Note
2021
$000
2020
$000
Revenue
2
279,515
251,389
Cost of sales
(165,890)
(155,115)
Gross profit113,625
96,274
Other income4
2,330
2,491
Distribution expenses
(15,822)
(14,038)
Marketing expenses
(15,767)
(20,622)
Administration expenses
(28,005)
(21,619)
Profit for the year before tax, finance costs and share of profit
of associates

56,361

42,486
Finance costs16
(2,081)
(2,582)
Share of net profit of associates accounted for using the equity method
(35)
(73)
Profit for the year before tax54,245
39,831
Income tax expense5
(14,070)
(10,767)
Net after-tax profit for the year, attributable to owners of the Parent40,175
29,064
Earnings per share
Basic earnings per share (cents)1920.5914.92
Diluted earnings per share (cents)1920.4014.80
The above Income Statement should be read in conjunction with the accompanying notes.

45
Statement of Comprehensive Income
for the year ended 30 June 2021

Note
2021
$000
2020
$000
Net profit after tax for the year40,175
29,064
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net gains/(losses) on cash flow hedges17
(14)
61
Income tax related to gains/(losses) on cash flow hedges5
4
(17)
Foreign exchange movements on translation of overseas subsidiaries17
(1,971)
2,265
Income tax related to gains/(losses) on foreign exchange movements
of loans with overseas subsidiaries5125(109)
Other comprehensive income net of tax(1,856)
2,200
Total comprehensive income for the year attributable to equity
holders of the Parent
38,31931,264
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

SKELLERUP ANNUAL REPORT FY21
46
Balance Sheet
as at 30 June 2021

Note
2021
$000
2020
$000
Current assets
Cash and cash equivalents615,67313,617
Trade and other receivables and prepayments7
52,084
46,405
Inventories850,25952,098
Income tax receivable30374
Derivative financial assets22492378
Total current assets118,811
112,572
Non-current assets
Property, plant and equipment985,45787,846
Right-of-use assets917,85021,811
Deferred tax assets5
3,351
3,125
Goodwill1054,90654,908
Intangible assets102,9141,217
Investment in associate1,5611,725
Derivative financial assets2224438
Total non-current assets166,063
171,070
Total assets284,874
283,642
Current liabilities
Trade and other payables11
31,207
24,806
Provisions12
5,669
4,811
Income tax payable
4,241
1,119
Interest-bearing loans and borrowings13
409
830
Lease liabilities – short term14
4,569
4,544
Derivative financial liabilities22
257
440
Total current liabilities46,352
36,550
Non-current liabilities
Provisions122,1981,283
Interest-bearing loans and borrowings1324,00041,300
Deferred tax liabilities51,9152,042
Lease liabilities – long term1414,22517,772
Derivative financial liabilities2235132
Total non-current liabilities
42,37362,529
Total liabilities88,725
99,079
Net assets196,149
184,563
Equity
Equity attributable to equity holders of the Parent
Share capital1572,40672,173
Reserves17
(8,999)
(7,065)
Retained earnings20
132,742
119,455
Total equity196,149
184,563
The above Balance Sheet should be read in conjunction with the accompanying notes.

47
Statement of Changes in Equity
for the year ended 30 June 2021
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 2019
72,173132(9,771)149115,709178,392
Net profit after tax for the year ending
30 June 2020

-

-

-

-

29,064

29,064
Other comprehensive income-442,156--2,200
Total comprehensive income for the year
-442,156-29,06431,264
Share incentive scheme---225-225
Dividends----(25,318)(25,318)
Balance 30 June 2020
72,173176(7,615)374119,455184,563
Net profit after tax for the year ending
30 June 2021

-

-

-

-

40,175

40,175
Other comprehensive income17-(10)(1,846)--
(1,856)
Total comprehensive income for the year-(10)(1,846)-40,17538,319
Share incentive scheme18233--(78)411566
Dividends20----(27,299)
(27,299)
Balance 30 June 2021
72,406166
(9,461)
296
132,742196,149
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

SKELLERUP ANNUAL REPORT FY21
48
Cash Flow Statement
for the year ended 30 June 2021

Note
2021
$000
2020
$000
Cash flows from operating activities
Receipts from customers274,326258,378
Interest received4926
Dividends received22
Payments to suppliers and employees
(202,125)
(198,310)
Income tax refund/(paid)
(11,375)
(9,508)
Interest and bank fees paid
(1,208)
(1,644)
Interest on right-of-use asset leases
(873)
(938)
Net cash flows from/(used in) operating activities
58,79648,006
Cash flows from investing activities
Proceeds from sale of property, plant and equipment405441
Payments for property, plant and equipment
(5,405)
(3,944)
Payments for intangible assets
(2,073)
(439)
Acquisition of a business, net of cash acquired
-
(6,204)
Net cash flows from/(used in) investing activities(7,073)
(10,146)
Cash flows from financing activities
Proceeds from/(repayments for) loans and advances
(17,640)
(4,082)
Proceeds from issue of shares
233
-
Repayments of lease liabilities
(4,528)
(4,671)
Dividends paid to equity holders of Parent
(27,299)
(25,318)
Net cash flows from/(used in) financing activities(49,234)
(34,071)
Net increase/(decrease) in cash and cash equivalents2,4893,789
Cash and cash equivalents at the beginning of the year13,6179,639
Effect of exchange rate fluctuations
(433)
189
Cash and cash equivalents at the end of the year
615,67313,617
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
2021
$000
2020
$000
Net profit after tax
40,175
29,064
Adjustments for:
Depreciation and impairment – property, plant and equipment7,1567,339
Depreciation and impairment – right-of-use assets
4,971
5,228
Amortisation
370
267
Loss on sale of assets
11
22
Foreign currency movements on translating foreign assets and liabilities
638
508
Bad debts written off
37
283
Increase/(decrease) in provision for doubtful debts
(424)
195
Share of profit in associates
(35)
(73)
Net movement in working capital
5,897
5,173
Net cash inflow from operating activities58,796
48,006

49
Reporting Entity
Skellerup Holdings Limited (‘the Company’ or ‘the Parent’) 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 19 August 2021.
(a) Nature of operations
The Skellerup Group of companies is design, manufacture, and distribute engineered 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, plumbing, sport and leisure,
electrical, health and hygiene, automotive and mining applications.
(b) Basis of preparation
These financial statements of the Group, a profit-oriented business, are for the year ended 30 June 2021.
(c) Statement of compliance
The consolidated financial statements for the year ended 30 June 2021 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) unless indicated otherwise.
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 (together
‘the Group’) as at 30 June 2021. Control is achieved when the Group is exposed, or has rights, to variable return 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.
Notes to the Financial Statements

SKELLERUP ANNUAL REPORT FY21
50
(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.
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 5 Recovery of deferred tax asset page 56
(g) COVID-19 Pandemic
In the prior financial year (on 11 March 2020) the World Health Organisation declared a global pandemic because of the
outbreak and spread of COVID-19. During FY21 the Group’s businesses across the world have operated effectively with a
combination of processes and protocols established in the prior year (modified where required) for staff working on site
and working from home arrangements for varying periods.
The Directors have considered whether there was any impact on going concern or impairment of assets because of the
ongoing pandemic. The Group reported record net profit after tax and record operating cash flow in FY21. The Group has
a strong balance sheet and forecast cash needs can easily be met by with cash held, expected operating cash flows and
debt facilities. COVID-19 has not had any impact on the measurement of Group assets (including goodwill) and provisions
(including expected credit losses).

51
Notes to the Financial Statements
For the year ended 30 June 2021
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 engineered products across a range of industrial applications, including potable and
waste water, roofing, plumbing, sport and leisure, electrical, health and hygiene, automotive and mining.
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 2021
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue
102,201177,428-(114)279,515
Segment EBIT
30,46432,664(6,767)-56,361
Profit before tax, finance costs and share
of profit of associate

56,361
Finance costs(2,081)
Share of net profit of associate(35)
Profit for the year before tax54,245
Income tax expense(14,070)
Net after-tax profit40,175
Assets and liabilities
Segment assets124,097138,24522,532-284,874
Segment liabilities14,96938,15435,602-88,725
Net assets
109,128100,091
(13,070)
-
196,149
Other segment information
Additions to fixed assets and intangibles3,0434,293139-7,475
Cash flow
Segment EBIT30,46432,664(6,767)-56,361
Adjustments for:
- Depreciation and amortisation4,7547,503116-12,373
- Non-cash items--351-351
Movement in working capital2,155273,715-5,897
Segment cash flow
37,37340,194(2,585)-74,982
Finance and tax cash expense(12,583)
Movement in finance and tax accrual(3,603)
Net cash flow from operating activities58,796

SKELLERUP ANNUAL REPORT FY21
52
1. Segment Information (continued)
For the year ended 30 June 2020
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue
93,609157,932-(152)251,389
Segment EBIT
25,40520,862(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 associate(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
Additions to fixed assets and intangibles6,7072,74012-9,459
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 flow
29,47433,002(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
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 35.0% (2020: 36.6%) of the Agri Division revenue.
For the Industrial Division, the three largest customers account for 9.6% (2020: 9.9%) of the Industrial Division revenue.

53
1. Segment Information (continued)
(b) Geographical revenue
Revenue from external customers by geographical location 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.
2021
$000
2020
$000
New Zealand62,02955,980
Australia51,58848,054
North America81,51481,111
Europe38,48332,320
United Kingdom and Ireland16,88212,691
Asia26,98520,341
Other2,034892
Total revenue
279,515251,389
(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:
2021
$000
2020
$000
New Zealand109,282110,658
Australia11,28011,802
Europe12,80513,926
United Kingdom and Ireland17,84317,787
Asia6,1307,023
North America3,7874,586
Non-current assets
161,127165,782
2. Operating Revenue
The Group is in the business of designing, manufacturing and distributing engineered 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.
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.

SKELLERUP ANNUAL REPORT FY21
54
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
2021
$000
2020
$000
Employee benefits expense
Wages and salaries (including annual leave, long-service leave,
sick leave and executive share scheme)

57,515

52,104
Termination benefits2531
Defined contribution expense2,5822,466
Total employee benefit expense
60,12254,601
Depreciation, amortisation and impairment expense
Depreciation and impairment of property, plant and equipment97,1567,339
Depreciation and impairment of right-of-use assets94,9715,228
Amortisation of intangible assets10370267
Total depreciation, amortisation and impairment expense12,49712,834
Total (gain)/loss on disposal of property, plant and equipment
1122
Total product development costs
4,0453,863
Short term and low value lease costs
269463
Remuneration of auditors
Audit of the financial statements by Parent company auditors673499
Other auditors’ fees for the audit of the financial statements
in foreign jurisdictions

81

93
Total remuneration of auditors
754592
4. Other income
2021
$000
2020
$000
Interest income4926
Government grants received1,234874
Realised and unrealised foreign currency gains/(losses)251685
Other sundry income796906
Total other income2,3302,491
Government grants have been received by some entities in the Group under wage subsidy and job retention support
schemes offered by Governments of Australia and the USA in response to COVID-19.

55
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
2021
$000
2020
$000
Current income tax
Current income tax charge/(credit)
14,348
10,948
Prior-year adjustments478
Deferred income tax
Temporary difference reversal/(origination)
(386)
(147)
Prior-year adjustments
37
(32)
Effect of movements in tax rates24(10)
Income tax expense as per income statement14,070
10,767
(b) Amounts charged/(credited) to other comprehensive income

Note
2021
$000
2020
$000
Current income tax
Fair value of derivative financial instruments17
(4)
17
Translation of foreign operations17
(125)
109
Total income tax expense/(credit) relating to other
comprehensive income

(129)

126

SKELLERUP ANNUAL REPORT FY21
56
5. Taxation (continued)
(c) Reconciliation

2021
$000
2020
$000
Total profit before tax as reported
54,24539,831
Tax percentage at Parent company rate28%28%
Tax at Parent company rate15,18911,153
Non-deductible expenses/(non-assessable income)
(481)
273
Tax effects of non-New Zealand profits
(746)
(625)
Adjustments for prior years
84
(24)
Effect of movements in tax rates24(10)
Income tax as per income statement14,070
10,767
(d) Deferred tax assets and liabilities

2021
$000
2020
$000
Deferred tax asset
3,351
3,125
Deferred tax liability
(1,915)
(2,042)
Net tax asset1,436
1,083
The movement in the net deferred tax assets and liabilities is provided below:
2021
Opening
Balance
$000
Charged to
Income
$000
Charged to Other
Comprehensive
Income
$000
Foreign
Currency
Movements
$000
Closing
Balance
$000
Property, plant and equipment(2,282)(176)-49(2,409)
Provisions and accruals3,434500-(24)3,910
Financial derivatives(69)-4-(65)
Net tax asset
1,083
324
425
1,436
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 asset
872219
(17)
91,083
(e) Imputation credit account

Note
2021
$000
2020
$000
Balance at the beginning of the year
14741
Attached to dividends paid20
(5,152)
(4,795)
Income tax paid/payable in New Zealand7,0614,901
Total imputation credits2,056147

57
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 facilities arrangement, 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.
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 Revenue. The Group recognises an
allowance for expected credit losses where there is an increase in credit risk subsequent to initial recognition.
2021
$000
2020
$000
Trade receivables
46,01442,510
Less allowance for expected credit losses
(227)
(725)
45,78741,785
GST/VAT receivable910311
Other
5,387
4,309
Total trade and other receivables and prepayments
52,084
46,405
The average credit period for the sale of goods is 55 days (2020: 56 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
and future conditions. Trade receivables are written off if considered uncollectable.
Of the trade receivables balance at the end of the year, $8.84 million (2020: $9.82 million) representing 19.3%
(2020: 23.5%) 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

2021
$000
2020
$000
One to 30 days
3,412
9,257
31 to 60 days
210
187
61 days plus
220
925
Total past due trade receivables3,842
10,369
Movement in the allowance for doubtful debts:
Balance at the beginning of the year
725
548
Impaired losses recognised
30
258
Amounts written off as uncollectable
(84)
(92)
Impairment losses reversed
(439)
-
Net foreign currency exchange differences
(5)
11
Balance at the end of the year227
725

SKELLERUP ANNUAL REPORT FY21
58
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.
Upon sale, the carrying value of inventories is recognised in cost of sales in the income statement.

2021
$000
2020
$000
Raw materials11,53310,643
Work-in-progress1,9162,852
Finished goods36,81038,603
Total inventories50,25952,098
The value of inventories is net of $2,518,095 (2020: $2,695,266) 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.
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: Two 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.

59
9. Property, Plant and Equipment (continued)
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 and plant and equipment 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 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 2020
7,08434,483113,5208,47027,038190,595
Additions
--4,7566491,2496,654
Disposals
--(947)(825)-(1,772)
Net foreign currency exchange differences
--(596)(89)(459)(1,144)
Balance 30 June 20217,08434,483116,7338,20527,828194,333
Accumulated depreciation and impairment
Balance 1 July 2019-2,42860,6885,901-69,017
Depreciation expense3-9115,6357274,97212,245
Disposals--(1,168) (351)-(1,519)
Impairment3--67-255322
Net foreign currency exchange differences--790 83 -873
Balance 30 June 2020
-3,33966,0126,3605,22780,938
Depreciation expense3
-9115,4107114,97112,003
Disposals
--(552)(804)-(1,356)
Impairment3
--124-- 124
Net foreign currency exchange differences
--(361)(102) (220)(683)
Balance 30 June 2021-4,25070,6336,1659,97891,026
Carrying value
As at 30 June 20207,08431,14447,5082,11021,811109,657
As at 30 June 20217,08430,23346,1002,04017,850103,307
Plant and equipment and freehold buildings include work in progress of $1,742,000 (2020: $1,069,000).
Capital expenditure commitments are $867,000 (2020: $767,000).

SKELLERUP ANNUAL REPORT FY21
60
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 201949,4769,31963259,427
Additions4,907493-5,400
Disposals-(26)-(26)
Net foreign currency exchange differences525(329)-196
Balance 30 June 2020
54,9089,45763264,997
Additions-2,073
-
2,073
Disposals-
(565)-(565)
Net foreign currency exchange differences
(2)
321
-
319
Balance 30 June 2021
54,90611,286
632
66,824
Accumulated amortisation
Balance 1 July 2019-8,894-8,894
Disposals-(328)-(328)
Amortisation expense3-17790267
Net foreign currency exchange differences-39-39
Balance 30 June 2020
-8,782908,872
Disposals-
(562)
-
(562)
Amortisation expense3-28090370
Net foreign currency exchange differences
-
324-324
Balance 30 June 2021
-8,8241809,004
Carrying value of goodwill and intangible assets
As at 30 June 202054,90867554256,125
As at 30 June 2021
54,9062,46245257,820
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.

61
10. Intangible Assets (continued)
Software and customer relationships
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 periods of five to 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.
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 10.36% (2020: 11.35%%) has been
applied to discount future estimated cash flows to their present value.
Cash-generating unit
2021
$000
2020
$000
Gulf33,72933,931
Ambic7,8737,645
Deks3,8183,801
Stevens Filterite431431
Nexus4,1634,163
Silclear4,8924,937
Total goodwill
54,90654,908
(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 2021, 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.

SKELLERUP ANNUAL REPORT FY21
62
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 1% to 20% 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 (WACC) of the Group, which has been updated as at 30 June 2021, to reflect the current market
interest rates and the additional cost of capital applicable in the current risk environment. Any reasonable change to WACC
is not expected to result in any impairment of goodwill.
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 factors. 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.
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.
2021
$000
2020
$000
Trade payables14,23812,635
Employee entitlements for pay and incentives6,1742,715
Sundry payables and accruals9,3778,045
GST payable1,4181,411
Total trade and other payables31,207
24,806
The average credit period on purchases of all goods and services represents an average of 33 days credit
(2020: 31 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.