Annual Meeting 2021

Skellerup Holdings Limited
Annual Shareholders Meeting 27 October 2021
Chair’s Address

Good afternoon and welcome to Skellerup’s 2021 Annual Meeting, our first virtual one. I
would love nothing more than to be celebrating in our traditional way over afternoon tea
with a glass of wine another record year, but with things being what they are today’s
celebration is necessarily more muted.
I am nonetheless confident that when we get together next year we can not only make
up for lost time, but we’ll also have fresh cause to raise our glasses.
But let’s start in the now. We are now more than eighteen months into the global
pandemic and are living with the massive disruption it has created, and this has
reinforced the value of having a solid foundation, one that has allowed us to adapt to the
unique and complex challenges posed by the pandemic.
The FY21 result reveals that the continuing strength of our strategy and business model is
our solid foundation. The leadership of our management team and the skill and
adaptability of all our people, combined with their unrelenting customer focus, has
allowed us to keep growing that foundation.
It is therefore with real pride that Skellerup can report another record year. That record is
across the board. Net profit after tax (NPAT) is $40.2 million, up 38 percent, which beats
our recent record results.

As a growth business, achieving a record operating cash flow of $58.8 million, up 22 per
cent from the prior record in FY20, is also a standout measure of performance. This
enabled us to fund our capital expenditure requirements, reduce debt – down $19.8
million to net debt of $8.7 million – and substantially lift our final dividend.
The final dividend, imputed to 50 percent, increased from 7.5 to 10.5 cents per share and
was paid to shareholders on 15 October 2021 with a record date of 01 October 2021. This
brought the total dividend pay-out for the financial year ended 30 June 2021 to 17.0 cents
per share, up 31 percent on the prior year.
Rewarding shareholders is a vital metric for us and over the past 10 years the pay-out has
almost trebled. The Board is delighted with this level of growth, and we are pleased your
loyalty to Skellerup has been rewarded so well.
Skellerup is a New Zealand success story and a global company, with businesses in New
Zealand, Australia, China, Italy, the United Kingdom, and the United States. Eighty percent
of our revenue is derived offshore.
With a strong domestic presence and global reach comes great growth opportunities but
also greater complexity.
Our strong balance sheet has allowed Skellerup to take advantage of growth opportunities
and in August we acquired Talbot Technologies, a 25-year-old well-established business
that designs, develops and manufactures highly engineered plastic products for domestic
and international markets.
That acquisition strengthens and broadens Skellerup’s capability with the proven expertise
of the Talbot team, so adds value to our business.
Our growth business would face complexity under benign conditions, but with the
disruptions caused by the global pandemic we and our workforce have faced an
enormously trying year.
What last year seemed novel, and therefore tinged with the challenge to overcome as well
as a lot of uncertainty, has given way to the sustained grind of the pandemic, both
physically and psychologically.

In some countries, the disruption has been extreme, with long and more restrictive working
conditions for our people, prolonged periods of working from home, and, more recently,
supply chain challenges testing our relationships with customers.
Our workforce has risen to the challenge, and we cannot speak more highly of them. They
have shown remarkable adaptability. We have supported their collective effort and
responsibility to work safely. They have supported Skellerup by keeping their focus,
notwithstanding the disruptive challenge faced, on satisfying customers.
Working closely with key customers is the foundation to Skellerup’s success. The
adaptability of our people to maintain that focus, be flexible in planning, and be responsive
to the changing needs of customers to ensure those needs are met, is a testament to their
tenacity and quality.
Our record result this year is the result of their collective effort, and we thank them for it.
Skellerup takes seriously its responsibility to grow our business sustainably. Reducing waste
and our environmental impact domestically and overseas forms part of Skellerup’s
commitment to continuous improvement on sustainability.
And because we view sustainability widely – that is, working closely with customers,
developing and investing in our people, and minimising emissions and waste – it is not an
either/or proposition for us. Growing a sustainable business is core philosophy at Skellerup.
Our directors have also faced a challenge. I have spoken of the increasing complexity of
the business. The Board has a wealth of commercial and governance experience and we
have worked hard to ensure thorough oversight, visibility, and provide strong governance
to support David and his team.
Despite being unable to travel to our international businesses, we have been active, visiting
our domestic sites to observe and understand our operating environments and meet with
our people. We have also invited leaders in both our domestic and overseas businesses to
join our virtual Board meetings to present and discuss their plans, risks and opportunities
with us.
The increasing workload and time commitment of directors, together with need to plan
for succession given the substantial institutional and industry knowledge of our long

serving directors, means the Board is considering both the size of the Board and directors
skills needed to maintain strong Board oversight and governance into the future.
Skellerup’s future is positive. Our strategy and business model were tested by the global
pandemic, and they not just survived, they thrived, as our record result shows.
To reinforce our confidence and optimism, I’ll make a comment on our current trading
performance. We have made a strong start to FY22. We have met continued high customer
demand despite the constraints of elongated shipping transit times. We expect our NPAT
for the first half of FY22 to be in excess of 10% above the prior comparative period.
In closing, on behalf of the Board I want to emphasise the Board’s pleasure at the FY21
result, express our optimism for the future. I would like to thank David and his team for
their leadership. And, most of all, I want to thank you, our shareholders, for your
encouragement and support.
ENDS

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Skellerup Holdings Limited
Annual Shareholders Meeting 27 October 2021
CEO’s Address

Thank you, Liz,
Last year I was proud of how well Skellerup managed to perform despite the disruption
caused by Covid. The strength of our strategy and business model was tested, as was
the resilience of our customer base. Skellerup rose to its challenge and passed its test
with record results.
One year on I am pleased with the excellent results our team have delivered and hugely
optimistic about our future. The record result across the board is a testament to the skill
and commitment to Skellerup’s ambition for global leadership in the design,
manufacture and distribution of precision-engineered products.
Record revenue, record earnings before interest and tax (EBIT), record net profit after
tax, and record cash flow and dividends were not accidental. They were the culmination
of years of thinking hard about the essence of our business, and years of making
deliberate choices to lay a solid foundation and build a stronger business.
And build it even stronger we will because we are focused, always, on Skellerup’s
ongoing success.
Covid-19 Marathon
One of the truisms that has emerged about Covid is that responding to it is a
marathon, not a sprint. A company with the history of Skellerup is built for marathon

running, the long haul, so our success in responding to the global disruption is not
surprising. Over many decades, we’ve built our endurance and speed, clocking up the
miles, training smart, in often difficult conditions, while we’ve worked on our race
strategy.
FY21 is a testament to all the preparation and hard work that has gone before. We’ve
run a winning race but I’m here to tell you today that our ambition is to keep
performing, maintain our strategy, and keep succeeding, whatever the conditions.
Also like a marathon runner, we couldn’t have achieved our record result without our
support team.
Skellerup is essentially a people business. Our customers, suppliers, employees, the
communities we influence, and you, our shareholders, have all contributed to our
success. It’s your success too and we thank you for your ongoing support and
confidence in us.
Skellerup is a Great Global Growth-Oriented Business
Skellerup’s business foundation – our strategy and business model – is strong.
The essence of Skellerup is combining deep material expertise that is hard to reverse
engineer, strong product and tool design capability, and proven scalable manufacturing
process knowledge. Our ability to deliver critical and essential products that often
bundle multiple materials to meet demanding and ever-shifting regulatory standards is
our competitive advantage, and one we believe is not easily replicated.
We have built on our foundation and competitive advantage through Skellerup’s
unwavering focus on our customers. We stay close to them so that we can understand
their challenges and can respond with new approaches and innovative products that
make a positive difference to their businesses.
Our customers’ needs are central to all our development work. We develop products
for predominantly Original Equipment Manufacturers customers. From our technical

salespeople to our engineers and chemists, we work closely with our customers to
develop and deliver reliable products that meet their needs.
As I said in the Annual Report, without demanding customers, we have no business and
no opportunities to develop new solutions. Maintaining our laser-like customer focus is
good for them, and good for Skellerup.
In the same way we strive to be the best supplier to our customers we also want to be
the best customer for our suppliers. We are demanding of them, but fair.
Skellerup has a global reach and ambition.
Approximately 80 percent of our revenue is generated in international markets and 70
percent of our revenue is generated from products manufactured outside New
Zealand.
Our products are critical to the supply of safe potable water; the production of milk and
milk products; the performance of appliances in home 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.
We employ over 800 people spanning five continents, with businesses in New Zealand,
Australia, China, Italy, the United Kingdom, and the United States.
As a growth-oriented international company, I am especially pleased with our cash flow
position. With net debt down $19.8 million to $8.7 million, our balance sheet is strong.
One benefit of a strong balance sheet is being able to reward our shareholders by
lifting dividends. A second benefit is enabling Skellerup’s growth strategy.
Since our Annual Report was published, and as Liz mentioned, Skellerup acquired
Talbot Technologies in August. Acquisitions are very carefully evaluated to ensure
alignment with our business to enable Skellerup to enhance the value we deliver to
customers.

Talbot, with its demonstrated expertise in supplying plastic products for domestic and
international companies specialising in health, technology, and electronics applications,
was a natural fit for us.
Industrial Division
Results from our Industrial Division were outstanding, showing a revenue increase for
the fifth consecutive year. Sales growth and gross margin improvements combined to
increase earnings before interest and tax (EBIT) by 57 percent, to a record $32.7 million.
That revenue growth was broad-based and across product lines and in different
markets.
Working closely with our customers to understand their needs and designing products
that perform is the hallmark of our Industrial Division’s businesses. That focus, I should
add, is paying dividends.
Our expertise in deep material science is also paying off. As an example, during this last
financial year, we completed a project to reformulate compounds for a range of
potable water products in Australia. This project required a mix of deep material
science, engineering, tooling, and process expertise. By working closely with our
customer and regulators we demonstrated our expertise. This enhanced customers’
trust in our products and is resulting in further growth opportunities for Skellerup.
Agri Business
Earnings before interest and tax (EBIT) in our Agri Division increased by 20 percent, to a
record $30.5 million. This was on the back of both sales’ growth and gross margin
improvements.
We are the second largest manufacturer of food-grade dairy rubberware globally and
while our strength remains in the US and New Zealand markets, Europe and Asia were
our fastest growing regions last financial year.

Continuous process improvement underpins our ability to meet our increasing demand
without significant capital investment or increased operating costs.
Our People
Our people have risen magnificently to the challenges they’ve faced since Covid struck.
They are spread geographically so each has faced a different quality of disruption.
It’s humbling as Chief Executive to see their tenacity, adaptability, and loyalty in the face
of a disruption that severely impacted our people’s working and personal lives. We
acknowledge, too, their families and their support. They have shared in the sacrifices
that have been made and we thank them for it.
These qualities are irreplaceable and are further evidenced by Skellerup suffering no
significant redundancies since Covid began, over eighteen months ago. In fact, we’ve
grown our workforce two percent in FY21.
Skellerup’s leaders and our teams have performed with great skill and tenacity. We
have supported them by investing significant financial and human capital in upgrading
our information systems, to help them work even better with our customers, to develop
more innovative solutions and to drive greater efficiency.
We have lifted our minimum wages for workers across several jurisdictions. We are
proud to be able to reward our team well for the work they do. Our stable and focused
team are a true asset of the business.
At Skellerup, we regard health and safety as our highest priority. Every Skellerup site
globally has an active Health and Safety Committee that meets monthly. The Board has
oversight of our health and safety programmes. We report to it monthly. A
collaborative approach works, as evidenced by, for the second successive year, no
serious harm injuries.

Because we are an international business, one working with a complex web of suppliers
and customers around the globe, maintaining the highest standard of ethics is also
important to us.
We work with our leaders to discuss the behaviours required and outlined in our Code
of Ethics, and, as importantly, how they and we respond to any reported violations. I
am pleased to report we did not receive any reports in this regard in FY21.
Ambitious Future
As proud as I am of our performance last year, and I am immensely proud, it is no time
to rest on our laurels. We’ll learn from our successes, but we are not just a customer-
oriented business, we are also a future-oriented one.
We have a lot of optimism about that future. We have proven confidence in the
strategy and business model that has fueled our growth and performance.
Our fundamentals for operating a sustainable business – working closely with
customers, and investing in our people – are strong.
Liz has commented on the strong start we have made to FY22 and our expectation that
NPAT for the first half of FY22 will be in excess of 10% above pcp. Staying close to our
customers and our suppliers and adjusting our actions in response to changes and
expected changes will be critical to achieving continued growth.
In closing, I would like to thank Liz and the Board for their ongoing support. Thanks
again to the Skellerup team for their commitment and determination to making this a
great global business.
And thank you to you, our shareholders, for your support and confidence. We are
optimistic about our ability to continue delivering strong returns.
ENDS

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A N N U A L
S H A R E H O L D E R S
M E E T I N G

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Record Results
0
10
20
30
40
50
FY17FY18FY19FY20FY21
$ millions
Net Profit after Tax up 38% on pcp
0
10
20
30
40
50
60
FY17FY18FY19FY20FY21
$ millions
Operating Cash Flow up 22% on pcp
$7.1m
$17.6m
$4.5m
$27.3m
Operating Cash Flow applied to
Capital Investment
Repayment of Loans
Payments on Leases
Dividends
0
10
20
30
40
FY17FY18FY19FY20FY21
$ millions
Net Debt down $19.8 million

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Global Business

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Record Results, Focused on Success
Skellerup’s business foundation is strong
•Deep material expertise, product and tool design capability, manufacturing process knowledge
•Critical and essential products meeting demanding standards
Focus on customers
•New approaches and innovative products
•Predominantly OEM customer focus
Global reach and ambition
•80% of revenues from international markets
•70% of products manufactured outside of NZ
Focus on our people
•Over 800 people across five continents
Record operating cash flow of $58.8 million and robust balance sheet
•Up $10.8 million or 22% on pcp, a record
•Net debt down to $8.7 million (3% of total assets)
Investment in growth
•Acquisition of Talbot Technologies
•Plastic products for domestic and international markets
•Focus on health, technology and electronics applications
0
5
10
15
20
25
30
35
40
45
FY17FY18FY19FY20FY21
NPAT (millions)
Net Profit after Tax
0
10
20
30
40
50
60
70
FY17FY18FY19FY20FY21
EBIT (millions)
EBIT by Segment*
IndustrialAgri
*Excludes Corporate

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Industrial Division
Revenue up 12% and EBIT up 57% against pcp
Potable Water and Waste Water
•Revenue up significantly as infrastructure work delayed by COVID-19 is
brought back on stream and gains in market share.
Growth from high performance foam applications
•UltralonU-Deksales up significantly in the all markets.
Growth from DEKS roof and sealing products
•New products and improved execution in Australian market in
particular.
•Exit of low margin business in US replaced with growth in more
profitable products.
Vacuum Systems sales and margins up following COVID-impacted FY20
•Continued growth in system sales and winning first fitment with
OEMs.
•Oil & Gas market still relatively low.
NZ$ MillionFY17FY18FY19FY20FY21
Revenue131.2151.5157.1157.9177.4
EBIT17.120.822.920.932.7
EBIT %13.113.714.613.218.4

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Agri Division
Revenue up 9% and EBIT up 20% against pcp
International Dairy sales growth
•Strong growth in Europe and Asia including increased silicone
product sales. NZ and Australian markets up. North American
market solid.
•Operational process and efficiency gains (business process,
operating levels, mechanisation, systems).
•Low capex investments to increase production volumes and
reduce lead times implemented and more planned.
Strong demand drives Footwear sales
•NZ market growth in both rural and hardware markets. Priority
market.
•Range standardisation and rationalisation resulting in efficiencies.
•Pink Band promotion in support of NZ Breast Cancer Foundation.
NZ$ MillionFY17FY18FY19FY20FY21
Revenue79.289.088.893.6102.2
EBIT19.822.822.825.430.5
EBIT %24.925.625.727.129.8

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Resolution 1
Re-election of John Strowger

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Resolution 2
Re-election of Alan Isaac

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Resolution 3
Directors’ fees increase

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Resolution 4
Remuneration of the auditors

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General Business

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Skellerup
Liz Coutts
Independent Chair of the Board
Joined the Board in May 2002
Chair of the Board
David Cushing
Independent Director
Joined the Board in August 2017
Alan Isaac
Independent Director
Joined the Board in August 2016
Chair of the Audit Committee
Paul Shearer
Independent Director
Joined the Board in August 2020
John Strowger
Independent Director
Joined the Board in March 2015
Chair of the Health and Safety
Committee
David Mair
Executive Director
Joined the Board in November
2006
Thank you for your attendance