Skellerup delivers another record result & dividend pay-out

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


Results for announcement to the market
Name of issuer Skellerup Holdings Limited
Reporting Period Year ended 30 June 2023
Previous Reporting Period Year ended 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$333,537 5%
Total Revenue $333,537 5%
Net profit/(loss) from
continuing operations
$50,941 7%
Total net profit/(loss) $50,941 7%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.14000000
Imputed amount per Quoted
Equity Security
$0.02722222
Record Date 29/09/2023
Dividend Payment Date 13/10/2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.8121 $0.7589
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood

Authority for this announcement
Name of person

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

17/08/2023

Audited financial statements accompany this announcement.

---

Annual Report

Business Review
Highlights FY23 4
Over a century of innovation and efficiency 6
Chair's Review 8
Solving problems with customers
to keep them ahead of the curve 10
CEO's Review 12
Financial Review 20
Skellerup's People 24
Sustainable Growth 28
Board of Directors 34
Corporate Governance 36
Financial Statements
Independent Auditor’s Report 48
Directors’ Responsibility Statement 51
Income Statement 52
Statement of Comprehensive Income 53
Balance Sheet 54
Statement of Changes in Equity 55
Cash Flow Statement 56
Notes to the Financial Statements 57
Shareholder Information
Directors’ Disclosures,
Remuneration and Shareholding 86
Corporate Directory 90
Contents

3
INTRODUCTION
Skellerup is a global leader in the design,
manufacture and distribution of precision
engineered products.
We work closely with customers to define
and solve their problems through a deep
understanding of material properties, tool
design, and manufacturing processes.
As a result, we have developed strong and
enduring relationships with key partners, in
particular original equipment manufacturers
(OEMs) and major distributors.
We have a diverse and highly skilled team
of over 800 people, and manufacturing and
distribution facilities in New Zealand, Australia,
China, Vietnam, UK, Italy and the US.

SKELLERUP ANNUAL REPORT FY23
4
Skellerup Highlights FY23
4
Acquisitions
over last
5 years
New products
to market
last 24 months
470
over
4,000
Customers
over
Countries
73
sold to
Delivering for our customers
Strong financial growth
Earnings
(NPAT )
7%
$
50.9
M
( F Y 2 2 : $ 47. 8 m )
$
333.5
M
(F Y22: $316.8m)
Revenue
growth
5%
Operating
cash flow
25%
$
5 4.1
M
(FY22: $43.3m)
Earnings
(EBIT)
7%
$
71.7
M
(FY22: $66.8m)
Diverse & experienced team
807
(FY22: 869)
People
7%
2 – 10 years
36%
10 – 20 years
27%
Greater than 20 years
9%
Fewer than 2 years
28%
Years’ service for staff Demographic (gender)
(FY22 – f: 50% m: 50%)
Male
50%
Female
50%

HIGHLIGHTS FY23
5
4,391
(FY22: 4,645)
*greenhouse gas
GHG* emissions (Tonnes CO
2
-e)
(Scope 1 and 2)

5%
(favourable)
GHG emissions / revenue
(Scope 1 and 2)

(favourable)
10%
CO
2
-e emissions per
$1 million of revenue
over the past year
Focused on community and environment
Financial return
ratio (RONA)
Unchanged
22.6
%
(FY22: 22.6%)
EPS growth
6%
26.0
cps
(FY22: 24.5 cps)
Dividend per
share growth
7%
22.0
cps
(FY22: 20.5 cps)
FY20
1.3
FY21
0.9
FY22
2.4
FY23
1.9
Total injury rate
21% (favourable)

6
SKELLERUP ANNUAL REPORT FY23
Over a century of innovation and efficiency
Skellerup has been designing, manufacturing, and distributing precision-engineered
products around the world for over a century. Our growth-oriented business started
in Christchurch (NZ) and has grown into a global business with a track record of
innovation, product development and efficiency.
1910
George Skellerup
founded Para
Rubber Company
in Christchurch,
establishing
expertise in polymer
technologies
1983
Skellerup acquires
Ultralon, expanding
its foam and polymer
manufacturing and
products
1948
Businesses united to
establish Skellerup
Industries and listed
on NZ Stock Exchange
2002
Skellerup re-listed
on NZX as Skellmax
Industries Ltd
(now Skellerup
Holdings Ltd)
Rubber footwear
production begins at
Empire Rubber Mills
and Marathon Rubber
Footwear, including
establishing rubber
reclamation plant to
utilise old motor tyres
1939
The Masport vacuum
pump manufacturing
and marketing
operations in the
USA acquired
1991
Production of the
Red Band gumboot
commenced by
Skellerup
1958
P R O D U C T I V I T Y G A I N
S



–



E
F F E C T I V E , E F F I C I E N T
A N D A D A P T A B L E P R O C E S S I M
P R O V E M
E N T

7
OVER A CENTURY OF INNOVATION AND EFFICIENCY
The essence of an interesting
business is to be competitive.
George Waldemar Skellerup
2019
Skellerup extends
its design and
manufacturing
capability acquiring
Silclear (UK) for
food-grade silicone
products, and Nexus
Foams (NZ) to further
expand its high-
performance foam and
soft material capability
2006 / 2007
Skellerup acquires
Gulf Rubber (NZ
and Australia) and
Tumedei expanding
its engineered rubber
products capability
for critical industrial
and infrastructure
applications
2022
Skellerup takes full
ownership of SimLim
Technic LLC (USA)
expanding its liquid
silicone rubber
capability.
Skellerup completes
relocation of Ultralon &
Nexus (New Zealand)
and DEKS (Australia)
to new facilities
Skellerup acquires
Talbot Technologies
(NZ) expanding
its engineered
plastics design
and manufacturing
capability
2021
Wigram Dairy
Rubberware
Development,
Manufacturing and
Distribution facility
opens (19,000sqm)
2016
Skellerup acquires
Stevens Filterite (NZ),
expanding its range of
essential food-grade
consumable products
for the global dairy
industry and DEKS
(Australia) to expand
its industrial focus to
include roofing and
plumbing products
2004
P R O D U C T I V I T Y G A I N
S



–



E
F F E C T I V E , E F F I C I E N T
A N D A D A P T A B L E P R O C E S S I M
P R O V E M
E N T

8
SKELLERUP ANNUAL REPORT FY23
I am extremely pleased to report another successful
year for Skellerup with a record-breaking net profit after
tax (NPAT) of over $50 million. The variety of engineered
products we make for a range of critical applications –
capitalising on the broad and deep technical expertise
in our Group – continues to provide a robust and
resilient foundation upon which we grow.
The trading environment in the period reported in this
annual report was a challenging one for all market
participants. In FY23, the commercial environment
was supposed to normalise – to the ‘new normal’.
We must have missed that particular call. Instead:
• Input costs including natural and synthetic rubbers
continued to escalate initially and they have been
slow to abate.
• Freight costs and capacity shortfalls did not ease off
(despite press comment, on occasion, informing us
that they had).
• Wage pressures arose in response to the domestic
inflationary environment.
• Everywhere, the implications of a wide-ranging
overstocking by customers in response to FY22
COVID-19 supply chain uncertainties made demand
‘lumpy’ and hard to predict.
• Important projects with key customers were delayed
(as a result of their response to the above factors).
• Continuing COVID-19 restrictions in geographies
where our key owned and external suppliers are
located put continuum of supply in real jeopardy.
I want to touch on this last factor in slightly more detail.
Our manufacturing facility in Jiangsu province
(northeast of Shanghai) manufactures all our iconic
range of gumboots and specialist rubber footwear
for international markets, as well as vacuum pumps
which have been so successful, especially in the North
American market. Shareholders will be familiar with
the response to the threat of COVID-19 adopted by the
Chinese authorities in that country. Strict quarantining
protocols were put in place and vast parts of the
population were consigned to home, for significant
periods. Notwithstanding these challenges, output
from our manufacturing facility in China barely missed
a beat. Our team in that market is well lead and did a
fabulous job in the face of real adversity.
Similarly, our key contract manufacturing partner
in Vietnam (TNR) achieved a continuum of supply,
regardless of the advent of strict lockdown conditions
and travel restrictions in that region.
In Italy, our manufacturing facility at Tumedei had to
contend with substantial cost increases, and fluctuating
demand from customers who found themselves
overstocked.
Chair's Review
It is a pleasure to write to
shareholders, as your Chair
of the board, for the first time.

9
CHAIR'S REVIEW
Domestically, our large and modern manufacturing
facility at Wigram had to contend with significant
(and random) bouts of infection, and the consequent
personnel shortages, as COVID-19 worked its way
through that workforce. But again, production was
maintained, and we met our obligations to our
customers.
It is in no small part due to the contribution of
employees at the above facilities (and elsewhere)
that saw Skellerup achieve $333.5 million in revenue
and $50.9 million in NPAT in FY23, both of which are
records. These outcomes are genuinely the result of
a team effort, and your Board is, and continues to be,
humbly grateful for the efforts of our entire team.
At Skellerup, we are often told by well-intentioned
third-party commentators that we have a “lazy”
balance sheet. It is true that we do carry low levels
of debt, but in periods of uncertainty have found that
to be a distinct advantage; this ensures we make the
right decisions for the business in a holistic sense,
rather than responding to short-term exigencies.
This also enables us to distribute a healthy proportion
of our earnings to shareholders in the form of dividends.
Your Directors are very pleased to announce a final
dividend, imputed to 50 per cent, of 14 cents per share.
This takes the full-year dividend to 22 cents per share,
a seven per cent increase on the prior year. The final
dividend will be paid on 13 October 2023 with a record
date of 29 September 2023.
We are pleased to achieve these pay-outs to
shareholders, and to log another record year for
Skellerup (and the seventh successive year of
earnings growth). These year-on-year record years
become increasingly hard to beat, and inevitably
there will be a year when we do not. However, I'm
sure our shareholders will appreciate that here at
Skellerup we are (as has been said before) in this for
the long haul. Our history is one of quiet achievement
and incremental (and sustainable) rather than flashy
growth, as befits our origins.
The key to Skellerup’s success is to work closely
with our customers to identify and produce enduring
solutions to their problems. The intellectual capability
of our people is as much an asset of the Group as the
bricks and mortar which are reported on the balance
sheet. Done well, this can create enduring trade
relationships which can be hard to shift; the results
reported now reflect years of investment in this process
– there is no ‘overnight success’ in the FY23 results.
Shareholders can be assured that this investment
in people and trading relationships continues, and
for this reason your Board remains optimistic about
Skellerup’s long-term prospects.
The key to Skellerup’s success is
to work closely with our customers
to identify and produce enduring
solutions to their problems.
Looking to the future, an initiative that looms large for
your Board in the forthcoming year is environmental,
social and governance (ESG) reporting requirements,
which become mandatory from FY24. We see this as
an opportunity to reposition perceptions of current
business practices at Skellerup, and as a catalyst
to further change, where the potential for further
improvement is identified. The initiatives we are
undertaking in this area will challenge the status quo.
Your Directors are business savvy, shareholder oriented
and all take a special interest in Skellerup. Their skills
and relevant experience provide support and guidance
to our management team.
Personally, I would like to take this opportunity to
extend a vote of thanks to the senior leadership team
for their unrelenting efforts to take this business
forward. We are fortunate to have enjoyed continuity of
tenure from such a capable group of individuals.
We thank you for your continuing support of Skellerup.
John Strowger
Chairman

SKELLERUP ANNUAL REPORT FY23
10
Solving problems with customers
to keep them ahead of the curve
Skellerup is a global leader in the
design, manufacture and distribution
of precision-engineered products.
Our components and products are used
in a wide range of everyday applications
that often must meet stringent food,
drinking water, hygiene and safety
standards across various jurisdictions.
At our heart is a key focus on our
customers – working as a part of their
development teams to define and
solve problems to help stay ahead
of their competitors. The value we
bring is dependent on our deep
material expertise, strong product
and tool design capability and proven
manufacturing knowledge.
Research &
Development
Working to identify
issues and opportunities
• Understanding our customers’
issues, challenges and pain
points
• Providing solutions grounded
in our extensive engineering,
chemistry and manufacturing
expertise
Developing the prototype
• In-depth material science with
expertise combining multiple
materials, including polymers
such as rubber, plastics and
foam
• Rapid prototyping to provide
proof-of-concept and
refinement based on feedback
• Augmenting the product and
reducing complexity

SOLVING PROBLEMS WITH CUSTOMERS TO KEEP THEM AHEAD OF THE CURVE
11
Across Multiple Sectors
Sport & Leisure
Our products are utilised in a variety of
recreational settings, including marine,
snow and field sports
Residential
Our products are critical components within
a wide range of home applications such as
taps, showers, HVAC, roofing, solar, kitchen
appliances, plumbing, and more
Transport
Our vacuum systems, seals, injectors,
couplings, and gaskets are utilised
throughout the transport industry
Industrial & Retail
Our products are used throughout potable
water and wastewater applications, f low
control systems and construction
Medical, Health & Hygiene
Our components play a vital role in
equipment used to treat and heal patients,
as well as keeping front-line workers safe
Specialist Footwear
Protective rubber footwear used throughout
farms and speciality applications, such as
fire, forestry and electrical distribution
Dairy
Our food-grade rubberware, filters and
animal hygiene products are critical to the
safe supply of dairy products across the world
Delivering critical
components for
production:
• Deep understanding of process
capability and quality control
• Refining manufacture and
assembly processes to allow
increased scale at reduced time
and costs
• Ensuring speed and accuracy
at each stage

12
SKELLERUP ANNUAL REPORT FY23
I have been CEO of Skellerup for
12 years and in that time, I have
thought a lot about our reason for
existence (Purpose).
CEO's Review
Our purpose comprises five groups of people
(customers, employees, suppliers, our community
and shareholders). I have articulated that purpose
not only internally to our employees but also to
our shareholders and other stakeholders. When
considering our purpose, I have always understood it
is about creating ‘corporate value’ and that outcome is
more than simply making profits for shareholders.
However, economic value, such as sustained high
profitability and a healthy financial standing, is
the
most important foundation. Without securing economic
value, we cannot take on other challenges. If we don’t
recognise this fact and consider the other contributors
to corporate value from the same perspective, our
existence as a company will be diminished. In
creating corporate value, we must not forget it is
shareholders that evaluate our efforts.
The key element to achieving corporate value
is our unwavering focus on, and commitment to,
understanding customer needs and using our deep
material science expertise and capability to combine
materials, rapidly build and deliver prototypes, and
manufacture precision products in a scalable way.
This enables us to continue to create new opportunities
to grow Skellerup’s business.
At Skellerup, we believe in Just-in-Time (JIT) principles.
A basic tenet is to be demand driven, and this puts
pressure on teams to come up with better ways to
deliver products and services within shorter and
shorter lead times. A culture of continuous improvement
is essential to motivate every employee to spend time
working on improving the processes they are involved
in, not merely a focus on outcomes. Simply, we must
align in the same direction and move faster.
We have been through a period where demand had
risen above true demand and when COVID-19 hit,
the uncertainty of both manufacturing and delivery
lead times meant many customers over-ordered.
The general view was that JIT was dead and
accentuated the issues; I disagree. This process lasted
for more than two years. Recently, we have seen
cases where customers have realised that they are
overstocked relative to demand and as lead times have
started to reduce, customers have in many cases tried
to delay production or shipping. This phenomenon is
known as the bullwhip.

13
CEO'S REVIEW
These testing market conditions throughout the financial
year reinforced why our platform needed to be strong
to ensure we are better prepared for organic growth
into the future. To mitigate risk and volatile demand, we
deliberately carried slightly higher inventory during
the supply chain disruption. We are working through a
phase to readjust what is needed to meet the expected
growth of our customers and Skellerup.
A key requirement for our leaders is to see and
plan two to three years ahead. We see, for instance,
excellent growth opportunities in the US market (see
case study page 17). It is both the largest and fastest-
growing market for our products. In the past five
years, USA Group revenue growth is a cumulative
76 per cent (52 per cent on constant currency basis),
fuelled by outstanding cumulative revenue growth of
98 per cent (72 per cent on constant currency basis)
for the Industrial Division and 31 per cent revenue
growth in the Agri Division (13 per cent on constant
currency basis).
Cost structures remain challenging. Our teams
have worked very closely with their customers to
understand their markets, helping them to reduce
costs and boost revenue through technical solutions
and process improvements. This builds trust with
existing customers, leading to greater sales volumes
and new product potential. Importantly, our strong
balance sheet offers Skellerup the flexibility to fund
aligned acquisitions that will help further grow Group
revenue. An example of this in FY23 is increasing
our ownership of Sim Lim – a manufacturer of
liquid silicone products – from 35 per cent to 100
per cent ownership. We expect further acquisition
opportunities to present as economic conditions
become more difficult for some businesses.
This year, Skellerup has been able to celebrate two
notable achievements, both featured in case studies
within this report. Our Jiangsu operation in China
celebrated its 20th anniversary and DEKS Australia
achieved a notable diamond anniversary (75 years).
Jiangsu has grown significantly during its lifespan,
making substantial productivity gains over time
through excellent leadership, workforce stability, and
quality assurance. DEKS relocated to new premises
in November 2022, supporting its already leading
brand reputation within the Australian market.
DEKS’s premium roofing and flashing products are also
prominent in the US and Europe.
We have enduringly strong relationships
with over 4,000 customers, particularly
OEMs, who we work with closely in
a dynamic interaction to deliver new
products and developments.
Customer relationships
with growth potential
of our top customers were
also in our top 20 in FY19.
14
FY23
26.0
FY22
24.5
FY21
20.6
FY20
14.9
FY19
15.0
FY18
14.1
F Y17
11.5
Proven track record
of earnings and cash
flow growth
Healthy balance sheet, strong cash flow,
low debt and strong dividend yield.
Earnings per share (cents)
To p 20
Customers
FY23

14
SKELLERUP ANNUAL REPORT FY23
We are pleased to celebrate these important
milestones and thank these businesses for their long-
standing contributions to Skellerup’s success.
Addressing climate change continues to be a
critical issue for all businesses. As identified in the
Chair’s Review, high emphasis is being placed on
understanding future climate impacts on Skellerup’s
businesses. We are investing resources into completing
the complex work of investigating different climate
scenarios to understand the potential impacts on our
physical assets and manage transition risks (which will
vary from one jurisdiction to another). This work will in
turn inform future investment decisions and help with
mandatory reporting obligations in FY24. You can review
our progress on this on pages 28 to 33 of this report.
Skellerup’s financial result represents another record
profit, one we are proud to have achieved under
challenging global economic conditions. It reflects
the success of our business strategy, our purpose
and focus. The FY23 NPAT was $50.9 million, a seven
per cent improvement on last year’s record result.
Over the past seven years, NPAT has grown at a
compound annual growth rate of 14 per cent.
We are confident we can continue to deliver long-term
sustainable earnings growth.
Focus on products
in key markets
470
new products
we have developed
over the past two years
Agriculture (36%)
Potable Water & Wastewater (incl Plumbing) (23%)
Roofing & Construction (14%)
Automotive & Machinery (6%)
Sport & Leisure (6%)
Exploration & Mining (5%)
Electrical & Appliances (4%)
Health & Medical (2%)
O t her (4%)
Revenue by
Application
FY23
Strong relationships
across global markets
We are a global business with a highly
technical team of more than
People in 6 countries
807
North America (35%)
New Zealand (23%)
Australia (15%)
Europe (12%)
Asia (8%)
UK & Ireland (6%)
O t her (1%)
Geographical
Revenue
FY23
Skellerup’s financial result
represents another record
profit, one we are proud to have
achieved under challenging global
economic conditions. It reflects
the success of our business
strategy, our purpose and focus.

15
CEO'S REVIEW
Case Study
The Future of Work at Skellerup
How we work
There is a lot of discussion about whether or not people
should have to travel to their workplace and whose
choice that is. There is also considerable dialogue
around the benefits of a four-day week and deep work.
Many of our businesses involve some processing of
materials and so we resist an ‘us and them’ culture that
can easily develop between those involved in processing
(running machines) and those who are based in an office,
especially if they are on located in different areas of the
same site.
As usual, we have taken a pragmatic approach to
trialling new ways of working and, before final adoption,
ensuring that we bring all our people with us. It is part
of our purpose: good for Skellerup and good for our
employees. Without doubt, businesses of the future will
see flatter hierarchies and so we will need more broadly
skilled people at every level of the business. There will
be pockets of depth in terms of specialist skill sets, but
we will see fewer people better paid.
In offices, we see the adoption of digital marketing and
information flows leading our people to develop broader
business perspectives. We also see the opportunity to add
value by eliminating manual or duplicate processes and
focusing on improving information flows.
Having a plan to become the lowest-cost producer of
our key product lines is an essential part of our planning
processes. In the areas of manufacturing and distribution
in particular, we believe there will be a greater use of
mechanisation and eventually cobots (robots that can work
safely alongside people) to undertake repetitive tasks.
People operating equipment are likely to become service
specialists in that equipment as well. Mechanisation and a
focus on standardisation will improve material flows.
In some cases, we have successfully moved to working
four-day weeks (for operations, this means four 10-hour
shifts). This enables our people to enjoy less commuting
time, develop consolidated work patterns and have
bigger blocks of time with family and for other personal
commitments, and this reduces the number of unexpected
interruptions due to increasing weather events. This is
then aligned with our service commitments, whereas
many companies find they must run customer service and
distribution for longer hours, for more days per week. In
many instances, we have been able to align the four-day
week with the demand for both services and operations.
Where we work
Scalability of our activities is key to meeting growth in
demand. Increasing cost structures in Asia, the location
of our key raw material suppliers, a higher risk of supply
chain interruption and the environmental considerations
for shipping products across the globe collectively are
causing us to consider how we best meet our customers’
needs in the future. We believe part of the solution will
be increased in-market manufacturing capability and
capacity. As our largest market, we have a particular
focus on the US. During FY23, we acquired full ownership
of Sim Lim Technic in Wisconsin where we manufacture
liquid silicone rubber products. We also began working
on several projects, including one to manufacture a
limited range of potable water products in the US for
existing customers and another to develop a solution for
manufacturing dairy rubberware in market. We believe
these investments will help ensure Skellerup retains our
competitive advantage in supplying highly engineered and
essential products for critical applications in the future.

16
SKELLERUP ANNUAL REPORT FY23
Industrial Division
During FY23, sales growth and continuous platform
and process improvements combined to increase
earnings before interest and tax (EBIT) over the prior
corresponding period (pcp) to $42.9 million, a record
EBIT result for the Industrial Division.
North America was Skellerup’s fastest-growing market
on the back of increased sales of our Masport vacuum
pump systems, U-DEK
®
marine foam, and DEKS
roofing products. The quality of our solutions and
products helped increase our market share. Strong
growth in solar installations in Europe also boosted
sales for our DEKS roofing products in this market.
Demand for our U-DEK
®
marine foam continued to
grow in Australia and New Zealand as well.
These factors more than offset the impact of lower
construction activity, decreased consumer demand
for products like tapware and household appliances,
the later than planned commencement of sales of a
new product used in the hygiene market and customer
inventory reduction programmes.
Our philosophy of interrogating every process
cost and our commitment to continuous process
improvement saw Skellerup continue to invest in better
business information and insights during FY23.
The objective is to simplify and optimise standardised
business processes and tools, enabling access to
more insightful data, a more secure environment
and ultimately improved outcomes for our customers
and our people. This year saw the implementation of
the NetSuite platform at Masport, with it going live in
December 2022 (see adjacent case study). Updating
our enterprise resource planning (ERP) platform over
recent years has seen multiple benefits, notably sales
growth, improved labour utilisation, and ease of use
for both customers and our staff.
Case Study
Integration and
information systems
We continue to invest in information
systems. Every investment is framed with
clear objectives that include simplification
and standardisation of business processes
and tools, gaining more insightful and faster
access to information and improving the
security of our environment. In FY23 we
completed the move of Masport onto the
NetSuite platform, expanding the number
of business units in our Group on this
platform to 10.
Masport, which designs and manufactures
vacuum pump systems sold predominantly
in the US market, replaced a dated and
inefficient legacy platform. Masport has
realised immediate benefits from the
upgrade, most notably from the end-to-end
integration of NetSuite into its online store.
Orders placed by customers through the
online store are now automatically entered
into NetSuite, generating a pick ticket to
enable immediate shipping. As well as
enjoying faster delivery, customers also
experience the benefit of being able to
electronically track the details and contents
of each order. The implementation has
improved Masport’s cash flow too, because
customers are able to pay electronically
directly from their emailed invoice.
Further NetSuite enhancements are planned
for Masport to enable an even stronger
customer focus and ensure we deploy our
human capital for maximum benefit.
Using NetSuite as a common platform across
the Group has enabled the development
of internal expertise and the opportunity
to capitalise on the standardisation of
processes, while reducing cost and risk
and improving the quality and speed of
each implementation.

17
CEO'S REVIEW
Case Study
US Market – Approach, Results and Opportunities
The US is our largest and fastest-growing market and
continues to offer significant growth opportunities.
Skellerup’s success in the US market is underpinned
by applying technical expertise and delivering highly
integrated products and systems that create better value
for customers.
Being a trusted partner is imperative. By becoming an
extension of our customers’ engineering teams through
design work, rapid prototyping of products and ultimately
delivering products and systems that reduce complexity,
installation time and cost, we retain trust with existing
customers and build trust with new customers.
The Gulf Group, which specialises in the global design and
manufacture of precision engineered rubber and plastic
products and components of mainly original equipment
manufacturer (OEM) customers, offers an insight into our
strategy. We were approached by a potential customer
who was experiencing technical problems with the
development of their next-generation dispensing system
for their soap and sanitiser hand products. By applying
our expertise in combining engineered rubber and
engineered plastic materials, this initial query on a single
component was quickly resolved, building trust that has
resulted in Gulf delivering a single critical subsystem that
eliminated complexity for their product and the need to
use multiple suppliers.
This systems approach has been a hallmark of our
Vacuum Systems Group. The Masport business designs
vacuum systems used in the collection of water and liquid
waste. Over the past seven years, by working closely
with customers to understand the challenges they have
with installing vacuum systems, we have identified and
implemented many improvements and integrations into our
systems to create more value for them. This has principally
reduced installation time due to lower complexity and a
reduced number of suppliers and components and, as a
result, captured additional returns for Skellerup.
We believe continued growth in the US will be enhanced
by a greater in-market manufacturing capability.
Customers want certainty and shorter supply chains;
geopolitical tensions carry the risk of further trade barriers
too. We are gradually moving to establish this capability
with one example being our investment in liquid silicone
rubber (LSR) manufacturing. In July 2018, we acquired a
35 per cent share in Sim Lim Technic (Sim Lim), a start-up
LSR manufacturing business. In November 2022, we moved
to full ownership of Sim Lim and have since fully integrated
this into the Gulf Group – now called Gulf Whitewater. This
provides us with a platform from which to grow capacity in
a highly automated business close to customers within our
largest market.
Building trust with customers, helping them to solve
problems and design solutions through our deep
material, tooling and processing expertise, while
increasing automation to increase capability at
competitive cost to offer new products, will continue to
be the keys to growth in the US.

18
SKELLERUP ANNUAL REPORT FY23
Case Study
Celebrating 75 years
of DEKS Australia
DEKS is a world-leading, innovative
manufacturer of plumbing, roofing, heating,
ventilation and air conditioning (HVAC),
washers and civil products. In November
2022 we celebrated DEKS diamond
anniversary with a special function at our
new distribution centre in Melbourne.
The move was needed to accommodate
business growth, deliver a faster response
to customers and improve the environment
for our people. DEKS now enjoys a clean,
bright, modern, quality facility in the
heart of Melbourne’s southeast industrial
area. The new site provides improved
access, efficiency, safety and security. We
carefully planned the warehouse layout
that minimises people-and vehicle-moving
distances and invested in mechanised
packaging capability and tablets to reduce
cost and better utilise our team. We also
continue to grow the proportion of our
orders managed by the electronic data
interface (EDI). The result is 70 per cent of
the 25,000 orders we process each year
are managed via EDI, we deliver customer
orders more quickly and efficiently, and
have eliminated an estimated 55,000 pieces
of paper annually.
Our people are proud of the smooth
execution of the planned relocation and are
enjoying the welcoming work environment.
We have established a great foundation for
the next 75 years of success.
Agri Division
During FY23, sales growth for footwear, increased
EBIT by one per cent over the pcp to $34.0 million.
Sales of our high-quality gumboots, including the
iconic Red Band brand and Quatro, grew in New
Zealand and sales of Skellerup’s di-electric footwear in
the US grew strongly also. Our product performance
reflecting our design and manufacturing capability is
world-class, so we expect future growth opportunities
as demand increases over the next financial year.
There were also challenges facing the Agri Division
in FY23. Tighter margins for dairy farmers globally
meant some non-essential maintenance was deferred,
reducing sales and production as a result. Improving
our understanding of customer demand and inventory
helped us organise our operations to respond to
flatter demand and we continue to drive and make
productivity gains to mitigate cost increases and to
continue to reward our people fairly, while lifting
wages over time.
As stated earlier, we were pleased to celebrate
Skellerup’s 20th anniversary at Jiangsu. I’d like to echo
the Chair’s comments that despite China’s unique
response to COVID-19, volumes at Jiangsu remained
robust, particularly in footwear. Jiangsu is well led and
we have steadily invested in capability, quality, reliability
and continuous productivity improvements, facilitating
continuing manufacture of high-quality products
including rubber footwear and vacuum pumps.
As signalled in last year’s annual report, FY23 also
saw the completion of the relocation of our Stevens
milk filter business from Featherston to Christchurch.
An established brand, over 60 years strong,
this business is now better positioned through a
combination of improved access to materials and a
bigger labour market to flourish under the Skellerup
Group of companies.
Improving operating performance is a common thread
across our Agri Division’s businesses, with greater
process standardisation that is scalable so that our
businesses can meet increased demand and revenue
from existing capability. The other dimension is better
utilising equipment and people in a cycle of continuous
improvement to boost productivity.

19
CEO'S REVIEW
David Mair
Chief Executive Officer
and Director
The commitment and quality of our people across both
Divisions, as well as the leadership exhibited across
the Skellerup network, has resulted in another record
year. It has been a special pleasure seeing our leaders
develop, mature and excel, and as their competence
and confidence has lifted, so too has our success.
Case Study
Jiangsu’s commitment to continuous improvement
We are proud to celebrate the 20th anniversary of
Skellerup in China. Located in Baochang, Jiangsu
province and established in June 2003, we manufacture
technical rubber boots used in agriculture, forestry and
the electrical industries as well as rotary vane pumps
used primarily in applications to transport water and
liquid waste. From small beginnings, we now employ
just under 200 people, 19 of whom have been with us
from the start.
Our team’s success is driven from stable leadership and
skilled workers. General Manager Martin Li has led the
business and team since 2006. Consistent productivity
improvements are underpinned by our Total Quality
Management system, which ensures all processes are
documented and monitored for quality at every step.
The business now boasts ISO accreditations for Quality,
Health and Safety, and Environmental.
The success of the business is measured by growth in
production volumes. In FY23 footwear production was 60
per cent higher than 10 years earlier, while reject rates
continue to fall. We prioritise training on quality assurance,
ensuring everyone contributes to identifying defective
products before undergoing any subsequent processes.
Capital investment has bolstered Skellerup Jiangsu’s
ability to meet the increased demand, product
development requirements, improved efficiency and
delivery of better environmental and safety performance.
The footwear product mix has grown over the decades
and this has been met by the growth in skills of our
team. CEO David Mair was in Jiangsu during June 2023
to celebrate the 20th anniversary of Skellerup Jiangsu
and express appreciation for the team’s outstanding
performance as an exemplar for commitment and success
with continuous productivity improvements for the Group.

20
SKELLERUP ANNUAL REPORT FY23
For the year ended 30 June 2023
(FY23) we have delivered a record
net profit after tax (NPAT) for the
seventh consecutive year.
Financial Review
FY23
50.9
FY22
47. 8
FY21
40.2
FY20
29.1
FY19
29.1
FY18
2 7. 3
F Y17
22.1
Net Profit After Tax
($m)
FY23
22.0
FY22
20.5
FY21
17. 0
FY20
13.0
FY19
13.0
FY18
11.0
F Y17
9.5
Dividend Declared
(cents per share)
Growth from sales of new and improved products for
wastewater, leisure and footwear applications, combined
with a Group-wide focus on costs and margin, enabled
Skellerup to overcome the impact of customers
reducing inventory levels for products used in potable
water and dairy applications. We have invested carefully
in improving our technical capability (people and
equipment) to underpin growth in the years ahead.
Our financial position remains very strong enabling us
to focus on delivering sustainable growth in financial
returns for our shareholders, as well as opportunities
for our employees, by providing innovation and
assurance to our customers for the essential
engineered solutions they need now and in the future.
FY23 Group Earnings and Dividends
In FY23 Skellerup achieved a record audited net
profit after tax (NPAT) of $50.9 million and declared
a gross dividend pay-out of 22 cents per share (50
per cent imputed). FY23 NPAT is a seven per cent
improvement on the record result achieved in the prior
corresponding period (pcp).
The FY23 gross dividend pay-out declared is up 1.5
cents per share (seven per cent) on the pcp and
represents a gross yield
1
of 5.7 per cent for shareholders.
1
Gross yield is determined by comparing the FY23 dividends paid and
declared, totalling 22 cents per share (50% imputed), with the closing share
price on 30 June 2023.

We segment and measure our performance by two divisions – Industrial and Agri.
21
FINANCIAL REVIEW
Industrial Division
Industrial Division sales were a record $216.8 million,
up five per cent on FY22. Earnings before interest and
tax (EBIT) was $42.9 million – also a record and up 10
per cent on FY22.
Our Industrial Division generates 85 per cent of
its revenue from international markets. FY23 sales
revenue growth of five per cent was slower than in
recent years. Strong revenue growth was realised from
sales of vacuum systems for wastewater applications
(most notably in the USA), sales of high-performance
marine foam products (into the USA, NZ and
Australia) and roof-flashing products for solar energy
installations (in the UK). This growth was partially
offset by lower sales for potable water and appliance
applications as customers reduced inventories; this
reflected both lower demand and an easing of supply
chain pressures such as raw material shortages and
freight congestion prevalent during the COVID-19
pandemic of the preceding two years. Revenue was
unchanged on a constant currency basis.
We continue to work closely with customers to apply
our deep expertise in material science to design and
manufacture products that often combine multiple
materials like rubber, plastic and metals to perform
in a wide variety of critical and high-performance
applications. This broad range of applications we
serve is a feature and strength of our Industrial
Division enabling us to leverage our expertise and not
be singularly exposed to changes in demand from any
one sec tor.
The five per cent growth in revenue translated to 10
per cent growth in EBIT in FY23. New and improved
products helped improve gross margin from 37 per
cent to just over 39 per cent which funded an increase
of investment into sales and technical resource and the
impact of inflation on operating costs (people, energy
and facilities). FY23 also enabled our key people to
travel more frequently to collaborate and meet with
customers and suppliers to progress opportunities for
future growth.
Agri Division
Agri Division sales were a record $117.0 million, up six
per cent on FY22. EBIT was $34.0 million, also a record
and up one per cent on FY22.
Our Agri Division remains a world leader in the design
and manufacture of essential consumables for the
global dairy industry and the design and manufacture
of rubber footwear for farming and specialty
applications including electricity, fire and forestry.
Revenue growth in FY23 was largely due to increased
footwear sales in NZ (hardware channels and urban
markets) and the USA (electricity applications).
Sales volumes of dairy consumables were down as
customers reduced inventories due to lower demand
and an easing of freight congestion prevalent during
COVID-19 of the preceding two years. On a constant
currency basis revenue growth was two per cent.
Hedging arrangements neutralised the benefit of
lower spot rates; this meant EBIT growth of one per
cent is more closely correlated to constant currency
than headline revenue. Sales price adjustments in
the second half of the year lagged the impact of raw
material cost increases incurred in the first half of
the year. Productivity gains helped offset the impact
of lower production volumes, increased raw material
prices and freight costs.
We are increasing our investment in internal
engineering capability to ensure our technical and
product leadership position is retained, as well
as investing in advanced design and equipment
capability to improve the efficiency and adaptability
of manufacturing for the future.
Industrial Division EBIT
($m)
Industrial Division EBITEBIT %
50
45
40
35
30
25
20
15
10
5
0
25%
20%
15%
10%
5%
0%
F Y17FY18FY19FY20FY21FY22FY23
Agri Division EBIT
($m)
Agri Division EBITEBIT %
40
35
30
25
20
15
10
5
0
35%
30%
25%
20%
15%
10%
5%
0%
F Y17FY18FY19FY20FY21FY22FY23

22
SKELLERUP ANNUAL REPORT FY23
Corporate
Corporate costs remain well contained and were down $0.7 million on the pcp.
FY23 Financial Position
Skellerup’s financial position remains strong due to
prudent management of working capital and robust
evaluation of capital investment key disciplines.
Strong operating cash flows and low levels of debt
provide us with the opportunity to invest in growth
and improvement. We evaluate and select investments
with diligence to ensure capital is allocated to deliver
excellent returns on shareholders’ funds.
During FY22 and the first half of FY23 we increased
our investment in inventory to mitigate the risk of
shortages in raw materials and extended shipping
timeframes so that we could continue to meet customer
requirements. As supply chain pressures began to
ease in the middle of FY23 and demand for some
product abated, we were able to reduce inventory
in the second half of the year. At the close of FY23,
inventory stood at $74.9 million, up nine per cent on
the pcp but down nine per cent on the peak level
held at the end of February 2023. We expect further
gradual reductions in the first half of FY24.
Receivables are also managed with great care. FY23
receivables closed at $49.3 million, down 12 per cent
on the pcp. Fairer payment terms, simpler electronic
payment options for customers (in the USA) and
discount structures for prompt payment all contributed
to faster collection. At the close of FY23, receivables
represented 48 days sales outstanding compared to 50
days outstanding at the end of FY22.
Working capital discipline resulted in operating
cash flow of $54.1 million in FY23, up 25 per cent on
the pcp. This operating cash flow, plus a small $1.6
million increase in net debt, funded payments for
right-of-use asset lease obligations of $6.0 million,
capital expenditure of $8.2 million and dividends to
shareholders of $41.1 million. We also invested $0.9
million to acquire full ownership of Sim Lim Technic
LLC (having previously acquired a 35 per cent share
i n Ju ly 2018).
Net debt remains low at $26.8 million, up $1.6 million
over the pcp and representing just eight per cent of
our total assets. Skellerup remains very well placed to
continue to invest in profitable growth.
FY23
5 4.1
FY22
43.3
FY21
58.8
FY20
48.0
FY19
28.9
FY18
28.3
F Y17
21.2
Operating Cash Flow
($m)
FY23
22.6
FY22
22.6
FY21
20.5
FY20
15.7
FY19
16.3
FY18
15.8
F Y17
13.9
Return on Net Assets
1

($m)
1
Calculated as Earnings (NPAT) divided by Net Assets.

23
FINANCIAL REVIEW
Seven-Year Financial Review
The table below shows the financial results and position
of the Skellerup Group for each of the last seven years.
Over this period, revenue has grown by 59 per cent,
NPAT has increased by 130 per cent and our return
on net assets has grown by 63 per cent. The sustained
earnings growth has enabled an increase in the gross
dividend pay-out (excluding imputation credits) of 132
per cent across the same period.
Period Ending ($000)FY23FY22FY21FY20FY19FY18FY17
Total Revenue333,537316,829279,515251,389245,792240,408210,322
EBIT71,65966,76056,36142,48641,79839,78132,824
Finance Costs4,5942,2492,0812,5821,7851,8631,414
Share of Net Profit of Associates(78)(224)(35)(73)23--
Profit Before Tax66,98764,28754,24539,83140,03637,91831,410
Ta x16,04616,47414,07010,76710,97310,6419,300
Net Profit After Tax50,94147,81340,17529,06429,06327,27722,110
EPS (cents)26.024.520.614.915.014.111.5
Dividend (cents)22.020.517.013.013.011.09.5
Operating Cash Flow54,11443,32258,79648,00628,92028,34521,229
Cash Reserves (net debt)(26,830)(25,204)(8,736)(28,513)(36,576)(30,719)(35,755)
Total Assets342,977336,644284,874283,642257,059252,025237,932
Total Liabilities117,541125,43688,72599,07978,66779,73978,685
Net Assets225,436211,208196,149184,563178,392172,286159,247
Return on Net Assets
1
22.6%22.6%20.5%15.7%16.3%15.8%13.9%
Net Tangible Assets per Share (cents)81.275.965.365.365.165.165.1
Skellerup’s financial position
remains strong due to prudent
management of working capital
and robust evaluation of capital
investment key disciplines.
1
Calculated as Earnings (NPAT) divided by Net Assets.

24
SKELLERUP ANNUAL REPORT FY23
We were delighted that FY23 enabled
a reconnection of our people across
the world.
Skellerup’s People
With the end of travel restrictions, we have seized
the opportunity to re-establish critical in-person
relationships with our key people and customers.
Our teams are based in New Zealand, Australia,
the USA, China, the UK and Italy. We, like other
businesses, overcame the difficulties of digital-only
communication during the COVID-19 pandemic, and
digital communication remains a critical and valuable
medium, which complements rather than replaces
face-to-face interaction.
Recent years have required flexibility and resilience
to overcome the impacts of the pandemic and continue
to deliver the many essential products our customers
and market require. In FY23 the tail of COVID-19 and
seasonal influenza affected our teams, and variable
and lower market demand and customer destocking
programmes created additional challenges to
overcome. In some instances, a reduction in temporary
staff was not sufficient to manage the impacts, resulting
in a small reduction in the number of permanent roles.
We make these changes carefully and with respect for
the contribution departing team members have made.
At the close of FY23 our global team was 807 people
strong, a reduction of seven per cent during the past
12 months. We have had no large-scale redundancies
in the Group over the past ten years.
Changing how and where we operate our businesses
has been an important element of Skellerup’s long
history and success. The nature of work will continue
to change to meet the needs of our customers and
our people and to optimise returns for shareholders.
During FY23 Skellerup moved operating hours at
several manufacturing sites to four-day, ten-hour
shifts, which more effectively and efficiently meet
the needs of our business and provides an additional
clear non-working day for our people. We plan to
consider similar arrangements for other facilities in the
future. To ensure we remain valuable and competitive
we constantly look to improve our capability and
processes. This will include investment in new
equipment and more mechanisation. In parallel we
are focused on developing multi-skilled teams and
team members to ensure their contribution, value and
reward grow and provide continuity for our business
and customers.
During FY23 we successfully relocated our Stevens
milk filter business from Featherston to Christchurch.
Stevens celebrated its 60th anniversary in 2022, and
the move secures the future of the Stevens products
by overcoming supply chain constraints and labour
availability risk. We also successfully relocated
our DEKS roofing and plumbing business to a new
distribution centre in Melbourne. DEKS celebrated its
75th anniversary in 2022 and the move was needed

25
SKELLERUP’S PEOPLE
to accommodate business growth, deliver a faster
response to customers and improve the environment
for our people. You can read more about the DEKS
move in the CEO letter earlier in this report.
The protection and safety of our people and others
from accidental harm in our workplaces is our
highest priority. All our practices and programmes
are established with the objective of keeping
our people safe and free from workplace injury.
We have been working steadily to ensure health and
safety requirements are integrated into the operating
instructions within our facilities. Every Skellerup site
has an active Health and Safety Committee that meets
monthly, an annual plan of activities and improvements
to keep their workplaces safe and reports monthly to
the CEO on progress. We use and receive excellent
value from internal experts who complete peer
reviews on sites across the Group to ensure the
benefit of specific expertise is shared and that past
recommendations have been implemented effectively.
Where these experts identify a risk requiring
immediate rectification, the risk is immediately
isolated (including halting work if needed) until an
appropriate solution is put in place. On a site-by-site
basis, we also enlist external experts to assess the
processes, risks and behaviours they observe and to
report on improvements required. Three of our sites,
including our two largest (Christchurch and Jiangsu),
are ISO 45001 certified.
Oversight of our health and safety programmes is
provided by the Board Health and Safety Committee.
A Health and Safety Report is reviewed at each Board
meeting also. During FY23 our Directors visited our
Agri facility in Wigram and our Ultralon Foam facility
in Auckland; this provided the opportunity for Board
members to observe activities, meet and discuss with
our managers and teams, and assure themselves of
our plans and behaviours.
Ultimately the success of our programmes is measured
by the number of injuries and incidents that occur.
Our total injury rate
1
(TIR) reduced from 2.43 in FY22
to 1.87 in FY23. We measure and review injuries and
medical treatment and, just as importantly, we actively
review near hits or incidents that could have caused
injury to ensure we learn and eliminate the cause.
We remain committed to leading, educating and
investing time and resources to protect our people
and others from accidental harm in our workplaces.
For the fifth successive year, we did not record any
fatalities or serious harm injuries.
1
The TIR (Total Injury Rate) is the total number of Serious Harm Injuries,
Lost Time Injuries and Medically Treated Injuries multiplied by 2,000
(the estimated annual hours worked by an individual), divided by the actual
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 sites are striving to achieve.

26
SKELLERUP ANNUAL REPORT FY23
Skellerup’s footprint is global and includes working
with manufacturing partners, international suppliers,
and customers across geographies. These partners
and suppliers are key to our successfully delivering
critical products to our customers. We guard the
quality of our products and reputation with great
care. Establishment of a new manufacturing partner
relationship requires the approval of the Group CEO.
In FY22, we implemented a Modern Slavery Policy to
guide our people on processes and reporting alleged
or suspected incidents. Modern slavery is an umbrella
term for serious exploitative work practices including
forced labour, bonded labour, child labour and people
trafficking that represent violations of human rights.
Skellerup does not tolerate any form of modern slavery
in our operations or supply chain. Establishing our
Modern Slavery Policy was an initial step; ensuring it
is effective is more important. During FY23 we have
worked on developing a Code of Conduct which we
will implement with our key suppliers to provide
assurance that their practices meet our requirements.
Each year, we work with our leaders to ensure they
and their teams spend time reviewing and discussing
the behaviours that are needed as outlined in our
Code of Ethics (and key policies including modern
slavery, diversity and information security) and, equally
importantly, how they respond in the event they do
witness or suspect behaviour inconsistent with this
Code. 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 also continue to provide regular online cyber
security training, supplemented by periodic internal
audits to make sure our control environment is working
effectively and where improvements are required.
Our team have delivered another excellent year for
Skellerup’s shareholders. We are proud of the skill,
commitment and adaptability they bring and are excited
about the opportunities available to us in the future.
Our team have delivered another
excellent year for Skellerup’s
shareholders. We are proud
of the skill, commitment and
adaptability they bring

27
SKELLERUP’S PEOPLE

28
SKELLERUP ANNUAL REPORT FY23
Sustainability at Skellerup continues
to have broad meaning. It means
working closely with customers to
truly understand their needs to build
long-lasting, valuable relationships.
Sustainable
Growth
It means developing and investing in our people so
that we have the expertise to grow and sustainably
meet our customers’ requirements. It also means
investing in and improving how we design and
manufacture products to minimise waste, efficiently
consume energy and reduce emissions intensity.
With over 100 years of history, we appreciate
that sustainably growing financial returns for our
shareholders is inextricably linked to ensuring
Skellerup’s activities contribute positively to the
communities and environments in which we operate.
Skellerup applies deep expertise to design and
manufacture products critical to everyday life. More
than half of our revenue is generated from products
used in the production and/or transportation of fresh
milk, potable water and wastewater. We also design
and supply products critical to ensuring homes and
buildings are dry and weathertight. Designing and
manufacturing products for these applications require
adherence to demanding and changing regulatory
standards to assure performance and conformance.
Climate Change
We recognise that the impacts of climate change will
influence where and how we invest for future growth
and how we ensure the security and safety of our
people and operations to continue to deliver to our
customers. During FY23 we invested time to build a
better understanding of the impacts of climate change
on Skellerup. In the commentary below we explain
the process we have taken in identifying the risks
and opportunities arising from the impacts of climate
change, assessing our vulnerability to these risks,
and estimating the consequences of these various
climate events on our organisation. During FY24 we
will review the identified risks and opportunities to
determine necessary adaptation to, or acceleration of
our strategies to mitigate such risks and capitalise on
the opportunities arising from climate change.
As an NZX-listed entity, Skellerup is considered
a climate reporting entity under the New Zealand
mandatory climate-related disclosures (CRD) regime.
We will report under this regime for the first time
in FY24. The CRD regime will require reporting under
the four pillars described below:
CRD Regime Pillars
Governance
The role of the Board of Directors in overseeing
Skellerup’s climate-related risks and opportunities, and
the role management plays in assessing and managing
those climate-related risks and opportunities.

29
SUSTAINABLE GROWTH
Strategy
Disclosure on how climate change is currently
impacting Skellerup and how it might do so in the
future. This includes scenario analysis undertaken
by Skellerup, identified climate-related risks and
opportunities, the anticipated impacts of these
and how Skellerup will position itself as the global
economy transitions towards a low-emissions,
climate-resilient future.
Risk Management
Disclosure on how Skellerup identifies, assesses
and manages climate-related risks and how
these processes are integrated into existing risk
management processes within the Group.
Metrics and Targets
Disclosures of information on how climate-related
risks and opportunities are measured and managed.
Skellerup’s progress towards reporting under
the CRD regime:
Governance
Role of the Board of Directors and Management
Skellerup’s Board of Directors has ultimate responsibility
for the Group’s approach to climate change. The Board
has delegated oversight of climate-related matters
to the Sustainability Committee. Refer to page 40 for
information on the composition and responsibilities
of the Sustainability Committee. The Sustainability
Committee reports directly to and advises the Board
of Directors on climate-related matters.
The Sustainability Committee was formed in
2022 as a subcommittee of the Board of Directors.
The Sustainability Committee has a formal charter with
minutes kept of all Sustainability Committee meetings.
The Board maintains a risk register which is reviewed at
least twice annually. Climate-related risks are considered
and, where material, included in this register.
The CEO is responsible for leading Skellerup’s
management of operational climate-related matters.
Where key operational climate-related risks and
opportunities are identified, their review and
assessment are escalated to the CEO, who considers
whether appropriate risk management actions are being
taken. A comprehensive review of all business risks
(including climate-related risks) is undertaken
and reported to the Board of Directors twice a year.
Strategy
Actual and Potential Impacts on Business,
Strategy and Financial Planning
We have carried out an initial scenario analysis exercise
to support our assessment of actual and potential
physical and transitional impacts of climate change on
business, strategy and planning. This scenario analysis
is based on publicly available scenarios including those
developed by the Intergovernmental Panel on Climate
Change (SSP/RCP Scenarios), Network for Greening the
Financial System and the International Energy Agency.
The Intergovernmental Panel on Climate Change
(IPCC) is a body of the United Nations. Its remit is to
advance scientific knowledge about climate change
caused by human activities. The IPCC has created
reference scenarios that are widely used to understand
the potential future impacts of climate change.
The Network for Greening the Financial System
(NGFS) is a network of 114 central banks and financial
supervisors that aims to accelerate the scaling up of
green finance and develop recommendations for central
banks’ role for climate change. The International Energy
Agency (IEA) is an autonomous intergovernmental
organisation that works with countries around the world
to shape energy policies for a secure and sustainable
future. The IEA has created reference scenarios that
focus on future energy usage.
Climate-related scenarios are plausible, challenging
descriptions of how the future might unfold. These
descriptions are based on coherent and internally
consistent sets of assumptions about the drivers of
future physical and transition risk and opportunity
(and the relationships between them).
The CRD regime requires a minimum of three climate-
related scenarios to be considered. In developing
these scenarios, we have utilised the IPCC reference
scenarios. Shared Socioeconomic Pathways (SSPs)
provide narrative descriptions, as well as being linked
to emissions reduction trajectories, as part of the
Representative Concentration Pathways (RCPs).
An overview of each scenario is set out on the
following page.
Sustainably growing financial returns
for our shareholders is inextricably
linked to ensuring Skellerup’s
activities contribute positively to
the communities and environments
in which we operate

30
SKELLERUP ANNUAL REPORT FY23
We have evaluated the impact of these scenarios on
the Group’s five most significant product applications
(key applications). The identification of these key
applications was determined by considering customer-
related, technological, economic (contribution to
Group earnings) and environmental impacts and
policy contexts. These key applications are:
• Dairy;
• Potable water;
• Wastewater;
• Roofing and construction; and
• Foot wea r.
We have completed an initial exercise at this key
application level to identify climate-related risks and
opportunities and assess their potential impact on
the Group.
We have also undertaken physical climate risk
assessments on the Group’s six key operating
sites linked to these key applications. These risk
assessments include environmental, chronic and
acute climatic variables.
In general, physical risks associated with climate
change are expected to increase over the time
horizons considered for all scenarios. However, based
on our initial assessment, we have not identified any
physical risks as key risks for the Group’s key facilities
over the long-term time horizon.
Risk Management
Identification, Assessment and Management of
Climate-related Risks
Our current approach to climate-related risk
management is outlined below.
Physical Risk Exposure and Analysis
Skellerup has manufacturing and distribution sites
in locations across the globe. While this provides a
high degree of resilience, it does expose the Group to
different hazards in different locations.
Detailed geospatial exposure assessments were carried
out on our six key manufacturing sites, related to our
core applications. The assessments covered a baseline
(2005), short-term (2030), medium-term (2050) and
long-term (2100) timeframe.
Climate-related scenarios
Scenario
Name
Temperature
Increase
*
Description
of the Scenario
Characteristics
of the Scenario
Taking the
Green Road
(SSP1-RCP2.6)
1.5°CIn this scenario, the world pursues aggressive
emissions reductions, and this succeeds in
limiting global temperature increases to 1.5°C,
with global net zero emissions being achieved
by 2050. This scenario envisions a relatively
optimistic trend for human development, with
substantial investments in education and health,
rapid economic growth, and well-functioning
institutions, driven by an increasing shift
towards sustainability.
Global cooperation, strong environmental policy,
rapid development of renewables and energy-
efficient alternatives.
Low population growth.
Middle of
the Road
(SSP2-RCP4.5)
2.5°CIn this scenario, New Zealand and most of
the developed world continue to pursue net
zero targets by 2050. However, the rest of the
developing world does not follow suit, leading to
a rise in global temperatures between 2 and 3ºC
by the end of the century.
Past social, economic and technology
trends continue, environmental degradation,
inconsistent development of renewables and
energy-efficient alternatives and material-
intensive consumption.
Moderate population growth.
Regional Rivalry
(SSP3-RCP7)
4.0°CGlobal emissions continue to grow unabated
largely due to a failure of key emissions
reduction policies in key developed, high-
emitting countries. This leads to warming levels
that reach 2°C by 2050, and continue to increase
steeply thereafter, reaching 4°C by the end of
the century. Climate ‘chaos’ enters mainstream
discourse, across all sectors and communities.
Competition between regions, low levels of
technological development to achieve climate
change goals, environmental goals are a low
priority, focus on domestic resource.
High population growth.
*
Above pre-industrial temperatures

31
SUSTAINABLE GROWTH
The sites identified are all managed by the Group
except for the site in Ho Chi Minh City, which is owned
and operated by our partner.
• Christchurch, New Zealand;
• Jiangsu, China;
• Ho Chi Minh City, Vietnam;
• Auckland, New Zealand; and
• Lincoln, Nebraska, United States of America.
Key climate-related hazards have been identified and
evaluated, to the extent available for each site. These
are evaluated on baseline, short-, medium-, and long-
term time horizons and for the three climate-related
scenarios outlined on the previous page. During FY24
we will review the risk scores arising from these
assessments to determine the requirement and timing
of mitigation plans and actions.
Transition Risk Exposure and Analysis
Transition risks are those risks related to the transition
to a low-emissions, climate-resilient global and
domestic economy, such as policy, legal, technology,
market and reputation changes associated with the
mitigation and adaptation requirements relating to
climate change.
To identify transition risks, a qualitative assessment
was performed against the three scenarios outlined
on the previous page in order to identify possible
climate hazards. Given the nature of the transition
risk assessments driven by the scenarios and for
simplicity, it is assumed that exposure to an identified
transition risk will be a certainty, and therefore
there is no rating of exposure to transition risks as is
performed for physical risks.
Risk and Opportunity Identification
Drawing on the results of the physical and transition
exposure assessments, we have defined climate-related
risks and opportunities for each of our key applications.
This identification of risks was based on input from
subject-matter experts across our key product
applications in sourcing, distribution, manufacturing and
sales and marketing. Both physical and transition risks
and opportunities were identified and evaluated as part
of this process.
Risks are then assessed using the Group’s existing risk
management framework and based on consequence
and vulnerability:
• In the context of climate change, vulnerability is the
predisposition to be adversely affected by a climate
hazard. To determine the vulnerability, we consider
the sensitivity and the adaptive capacity of each
element when exposed to a hazard. Sensitivity can
be influenced by age, condition, material and design.
Adaptive capacity is how efficiently an at-risk element
that can adapt or be adapted when exposed to a
climate hazard. Adaptive capacity can be influenced
by multiple factors such as ease or cost of repair or
the level of redundancy.
• Consequence is the outcome of a climate event
affecting the Groups objectives. This is assessed on
the basis of the severity of potential financial, health
and safety, staff, legislative and reputational impacts.
The residual risk rating is based on consequence and
vulnerability in accordance with the matrix below:
Climate
Risk
Matrix
Vulnerability
Consequence
Very Low
VL
Low
L
Moderate
M
High
H
Extreme
E
Severe
5
VL5L5M5H5E5
Significant
4
VL4L4M4H4E4
Moderate
3
VL3L3M3H3E3
Minor
2
VL2L2M2H2E2
Low
1
VL1L1M1H1E1

32
SKELLERUP ANNUAL REPORT FY23
Our initial risk and opportunity assessment has
identified only a limited number of risks with a high
rating. Risk management is a continual process within
the Group. During FY24 we will review the residual
climate risk scores arising from these assessments to
determine the requirement and timing of mitigation
plans and actions. Our assessment has also reaffirmed
several opportunities that arise for Skellerup due to the
impacts of climate change. In FY24 we will undertake
a review of this to ensure we have the resources and
plans to capitalise on these opportunities.
Metrics and Targets
Skellerup has reported on Scope 1 (Direct) and
Scope 2 (Indirect Energy) Greenhouse Gas (GHG)
emissions since FY21. We have commenced a project
to measure and disclose our Scope 3 (Other Indirect)
GHG emissions. The Group has not set any specific
emissions reduction targets. Measurement of our
Scope 3 emissions will inform and enable us to set our
reduction goal and determine the opportunities and
actions to reduce emissions. Targets will be set based
on good environmental and economic outcomes.
Our latest direct (Scope 1 and 2) GHG emissions by
calendar year and recent history are shown in the
graphs below:
To ensure we service our customers very well and
continue to grow our business in the international
market, Skellerup operates from 18 development,
manufacturing and distribution facilities around the
world. Just as improvements in our financial results
depend on a broad contribution across our Group so,
too, do reductions in and more efficient use of energy.
Skellerup achieved a five per cent reduction in Scope
1 and 2 GHG emissions in FY23 compared to the pcp.
Our four largest manufacturing sites generate 77 per
cent of our Scope 1 and 2 GHG emissions. All four
reduced emissions on the pcp. Overall, 12 of our 18
sites achieved a reduction in emissions in FY23.
The improvement was the outcome of large and small
initiatives. Improved energy management, investment
in more efficient plant and equipment, realisation
of benefits from the move to efficient facilities
(Melbourne and Auckland), transition to hybrid motor
vehicles, and the full-year benefit of solar energy at
one of our facilities in Auckland were some of the
main contributors to the FY23 reduction.
GHG emissions per $1 million revenue
(tonnes CO₂-e)
15
12
9
6
3
0
FY23FY22FY21
14.65
14.66
13.17
Note: The FY22 and FY21 inventories have been restated based on more
recently published GHG emission factors for certain business units.
The above emissions have not been audited.
5000
4000
3000
2000
1000
0
1,193.8
922.1
1,142.3
3,451.5
3,172.3
4,645.3
4,094.4
3,249.0
4,391.3
FY23FY22FY21
Scope 1 and 2 GHG emissions
(tonnes CO₂-e)
Scope 1 emissions:
Direct greenhouse gas emissions in controlled or owned sources
(fuel combustion of natural gas, fuel in owned/leased vehicles)
Scope 2 emissions:
Indirect greenhouse gas emissions from purchase of electricity

33
SUSTAINABLE GROWTH
Skellerup is a growing business, therefore measuring
the intensity of our Scope 1 and 2 GHG emissions
relative to revenue (tonnes of CO
²
-e per $1 million
of revenue) is an important metric of the efficiency
of our organisation. In FY23, we achieved a 10 per
cent reduction in emissions intensity. The impact of
the reduction in gross emissions described on the
previous page was further boosted by revenue growth
from sales into wastewater, roofing and construction,
sporting and footwear applications.
Measuring and improving our emissions intensity
(including Scope 3 GHG emissions) will remain an
important metric in the years ahead. We expect to
continue to identify and invest human and financial
capital in improvements that generate good financial
and environmental returns.
Waste Reduction
As with GHG emission reductions, we continue to
identify waste reduction initiatives that generate strong
environmental and financial returns – this makes it an
easy decision to deploy human and financial capital to
realise the opportunities.
All manufacturing sites in the Skellerup Group have
plans and activities in place to reduce production
waste, which comprises engineered waste (an output
of process and product design) and reject products
(that do not meet the product specification). To achieve
these gains sometimes requires more human capital
than financial capital. We invested in a significant
project in FY23 which used both. At Skellerup Wigram
we invested in new equipment, engineered improved
tooling and implemented process enhancements as
part of a long-term project. The outcome is a more
productive and robust manufacturing process,
improved product quality and a significant reduction
in manufactured waste. This has established the
platform for further investment and improvement in
the future.
The paperless office was a promised outcome of greater
deployment of technology but has been somewhat
elusive for many businesses. During FY23, DEKS
Australia seized the opportunity to substantially reduce
paper after moving to a new distribution centre in
Melbourne. As part of the transition to this facility, DEKS
introduced electronic tablets to facilitate the picking and
fulfilment of customer orders. In addition to the process
efficiencies for staff, DEKS have eliminated the printing
of an estimated 55,000 sheets of paper per annum.
Above: DEKS’ new distribution centre in Melbourne, Australia.

34
SKELLERUP ANNUAL REPORT FY23
The experience and diverse range of
skills across Skellerup’s Board ensures
our plans are robust and pursued with
vigour and sound business discipline.
Board of Directors
Director Core Competences

ESG (6/6)
Prior relevant Board and leadership
experience, ESG best practice

Financial (3/6)
Experience in international finance,
accounting, reporting, controls and taxation

Risk Management (6/6)
Financial and non-financial risk frameworks,
and risk evaluation

Capital Markets (6/6)
Experience with equity and debt markets
and capital structuring, including mergers,
acquisitions and divestments, and
investment analysis

Regulatory (5/6)
Experience across regulatory environments

Human Resources (5/6)
Leading team development, performance
and remuneration structures for
international business
John was appointed Chair in October 2022, and was previously
appointed to the Board in March 2015. John retired as a partner
at Chapman Tripp on 30 November 2022. John specialised in
corporate, contract and securities law, mergers & acquisitions
as well as heading the firm’s China desk. He was named NZ
Deal Maker of the Year at the 2019, 2017 and 2015 Australasian
Law Awards. John sits on the board of, and advisory committees
to, a number of private sector businesses. John is Chair of the
Health and Safety, Remuneration and Nomination Committees
and is a member of the Audit Committee.
Independent Chair
John Strowger
(LLB Hons)
Paul was appointed to the Skellerup Holdings Board in
August 2020. He is Senior Vice President - Sales and
Marketing for Fisher & Paykel Healthcare. Paul has global
business experience spanning 30 years with proven success
growing international markets and leading multi-disciplinary
teams across 50 countries. He is a member of the Health and
Safety, Sustainability and Remuneration Committees.
Independent Director
Paul Shearer
(BCom)

35
BOARD OF DIRECTORS

Health & Safety (6/6)
Health and safety management for a
global business

International (5/6)
Experience, across businesses with
a substantial global presence, and
understanding of OEM customers

Growth (6/6)
A track record of successful and sustainable
business growth strategy

Manufacturing & Supply Chain (4/6)
Manufacturing expertise, international
contract oversight, international logistics
and supply chain expertise. Understanding
of contractual arrangements with large OEM
customers.

Technology (5/6)
Strong technological experience and
development and protection of IP

Agriculture (3/6)
International and domestic agriculture
experience

Infrastructure, Leisure & Health (4/6)
Infrastructure for potable water,
construction, sport and leisure, health and
hygiene experience
Rachel was appointed to the Skellerup Holdings Board in
May 2022. She is a partner at BDO Wellington Limited and
has over 20 years’ experience in chartered accountancy
and business advisory services and more than 10 years’
experience as a director across a diverse range of sectors
including construction, technology, financial and property.
Rachel is currently a director of New Plymouth Airport, The
Property Group Limited and Fairway Resolution Limited and
was previously a director of Fulton Hogan Limited. She is
Chair of the Sustainability Committee and is a member of the
Audit Committee.
Independent Director
Rachel Farrant
(BCom, PGDipCom, FCA, CFIoD)
David was appointed to the Skellerup Holdings Board in
November 2006, and as CEO in August 2011. He has been
leading the Group for 12 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 March 2022, David was
recognised as CEO of the Year in the Deloitte Top 200
Awards. 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 Sanford Limited and Forté Funds
Management Limited. He is a member of the Health and
Safety and Sustainability Committees.
Executive Director
David Mair
(BE, MBA)
David was appointed to the Skellerup Holdings Board in August
2017. He is currently Executive Chairman of Rural Equities
Limited and Managing Director of private investment company
H&G Limited. David is a former investment banker with over
25 years’ experience as a director of listed companies. He 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, Webster
Limited and NPT Limited. David is a member of the Audit,
Health and Safety, Remuneration and Nomination Committees.
Independent Director
David Cushing
(BCom, ACA)
Alan was appointed to the Skellerup Holdings Board in August
2016. He 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, 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. He is Chair of the
Audit Committee and also a member of the Sustainability and
Remuneration Committees.
Independent Director
Alan Isaac
(CNZM, BCA, FCA)

36
SKELLERUP ANNUAL REPORT FY23
This section of the annual report
outlines our corporate governance
structures and processes, and how they
have been applied during the year.
This Corporate Governance statement
was approved by the Board of Skellerup
Holdings Limited on 16 August 2023.
The information contained in this
Corporate Governance statement is
current as at that date.
Corporate
Governance
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
has chosen to report against the recommendations of
the updated NZX Corporate Governance Code dated
1 April 2023 (NZX Code) in respect of the financial
year ended 30 June 2023 (FY23) despite not yet being
required to do so. Skellerup is in full compliance with
all recommendations of the NZX Code for FY23.
Skellerup’s Constitution and each of the Charters and
Policies referred to in this Corporate Governance
statement are available on the Governance section of the
Company’s website at www.skellerupholdings.com.
Our compliance with the NZX Code for FY23 is detailed
below under headings for each of the eight Principles of
the NZX Code.
Left to right: John Strowger, Alan Isaac, Graham Leaming, Richard Cosmann

37
CORPORATE GOVERNANCE
Principle 1 – Ethical Standards
Skellerup complies with the recommendations of
Principle 1.
Skellerup’s Directors set high standards of ethical
behaviour and require members of the management
team to conduct themselves similarly. The Directors
hold management accountable for delivering these
standards throughout the organisation.
Skellerup’s Code of Ethics provides a framework of
minimum standards of ethical behaviour according
to which Directors, management and all employees
of the Company are expected to conduct themselves.
The Code of Ethics outlines the Company’s expectations
for all Company personnel and includes consideration
of conflicts of interest, conduct, legislative compliance,
confidentiality and the use of the Company’s assets
and information. Skellerup’s Code of Ethics is reviewed
annually by the Board of Directors, the last review being
conducted in June 2023.
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 the Code of Ethics, together with
other key Group policies, with all Group and Business
Managers annually. The Business Managers in turn
are required to review with staff and confirm that they
have done so to the CEO. All employees were last
trained on the Code of Ethics during May and June
2023. The Code of Ethics is published on Skellerup’s
website and is available to all employees.
Under Skellerup’s Code of Ethics, contributions to
political parties are expressly prohibited.
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 Whistleblower
Policy. This is consistent with the requirements of the
Protected Disclosures Act 2000. Skellerup has not
received any reports of serious instances of unethical
behaviour during FY23.
Skellerup is committed to ensuring its Directors and
employees understand its policy on and rules for
dealing in Skellerup ordinary shares or any other
quoted financial products issued by Skellerup or
derivatives thereof. Skellerup’s Financial Products
Trading Policy notes that insider trading is always
prohibited and provides examples of material
information to assist Directors and employees
with compliance. It imposes further restrictions on
Directors and senior management by permitting
trading only in prescribed trading windows (unless an
exemption is granted by the Board) and requires such
persons to seek consent for any trading. The policy
is available on the Company’s website. Details of
Directors’ shareholdings as at 30 June 2023 are set out
in the Shareholder Information section on page 86.
Principle 2 – Board Composition and
Performance
Skellerup complies with the recommendations of
Principle 2.
The Board has adopted a written 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 effectively.
The Board regularly reviews its performance and
composition to ensure it has the range of capabilities
required.
The Board recognises a skills matrix can assist with
identifying and assessing existing Directors’ skills and
competencies as well as new skills and competencies
which may be needed to meet Skellerup’s future
governance requirements. The skills and experience
the Board has determined are important to Skellerup’s
strategic direction and those held by the current
Directors are shown on page 34.
The maximum and minimum number of elected
Directors and the procedures for their appointment,
retirement and re-election at annual meetings are
set out in Skellerup’s Board Charter, Nomination
Committee Charter, Constitution and the NZX Listing
Rules. All Directors must retire by rotation and, if
eligible, may stand for re-election at the third annual
meeting, or three years after their last election,
whichever is longer. Any Director appointed since
the previous annual meeting must also retire and is
eligible for re-election.
Currently, the Board comprises five non-executive,
independent Directors and one executive Director
(who is also the CEO). The independence of Directors
is reconsidered at least annually. Skellerup’s Board
most recently reviewed each Director’s independence
at its Board meeting on 22 June 2023. Having regard
to the NZX Listing Rules and the NZX Code, all five
non-executive Directors have been determined to be
independent.
John Strowger is a former partner of Chapman Tripp,
who provide legal services to the Group. The board
is satisfied that John’s relationship with Chapman
Tripp does not interfere with his capacity to bring an
independent judgment to bear on issues before the
board and to act in the best interests of Skellerup and
to represent the interests of its shareholders generally.

38
SKELLERUP ANNUAL REPORT FY23
In particular, the board noted that John ceased to be
a partner of Chapman Tripp on 30 November 2022,
has not personally provided legal services to the
Group since his appointment to the board in 2015
and does not direct or influence the Group’s choice
of legal service providers. Save for this, none of the
factors in Table 2.4 of the NZX Code apply to any of
the independent Directors. See pages 34 to 35 or the
Company’s website for more information on the tenure,
skills and experience of Skellerup’s current Board.
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 Chair
is currently an independent, non-executive Director
and is also considered to be independent of the CEO.
The table on page 40 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 to their involvement
with the Company by restricting involvement in
other businesses that would likely lead to a conflict of
interest. A Directors’ interests register is maintained
by the Company. Particulars of the entries made in
the interests register during FY23 are disclosed in the
Shareholder Information section on page 86.
Directors are not required to own shares in the
Company although five of the six Directors currently
are shareholders of Skellerup.
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 management
makes 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 business of the Group.
Training is made available to Directors and in FY23,
Directors participated in training on a wide range of
issues, including Environmental, Social Sustainability
and Governance (ESG) matters and future
requirements around reporting on climate change.
Skellerup has a written Diversity Policy in place.
Diversity at Skellerup includes (but is not limited to)
gender, race, ethnicity and cultural background,
disability and physical capability, age, sexual
orientation, and religious or political belief. A gender
composition table of the Skellerup Directors, officers
and management is included on page 88 and a graph
for its entire workforce on page 4. Skellerup maintains
a merit-based environment which provides equal
opportunity for development and recognition based
on performance and a flexible and inclusive work
environment that values differences that create value.
Skellerup remunerates equivalent roles in an
equitable manner.
Skellerup’s Diversity Policy requires measurable
objectives to be set by the Board and reviewed
annually. For FY23, 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 FY23 Skellerup adopted
a target of zero complaints/findings of harassment,
discrimination or victimisation. No such incidents were
reported in FY23.
Board Appointment and Independence – 1 July 2022 to 30 June 2023
DirectorQualificationsGender
Date of
Appointment
Tenure
(completed years)
Independence
John StrowgerLLB (Hons)Male04 March 20158Ye s
David CushingBCom, ACAMale21 August 20175Ye s
Rachel Farrant
BCom, PGDipCom,
FCA, CFIoD
Female02 May 20221Ye s
Alan IsaacCNZM, BCA, FCAMale01 August 20167Ye s
Paul Shearer BComMale21 August 20202Ye s
David MairBE, MBAMale29 November 200616No*
*David Mair is not independent because he is the CEO of Skellerup.
As at the date of this annual report, the Directors, including the dates of their appointment and independence, are:

39
CORPORATE GOVERNANCE
2. Flexible Workplace Environment
Skellerup aims to provide a workplace that
accommodates flexible working arrangements to
encourage diversity of its workforce. The Group’s
goal is to ensure that workplace arrangements are not
an impediment to retention of existing employees or
attracting new employees. Supported by a Working
from Home Policy, flexible workplace arrangements
are implemented throughout the Group where
suitable, to meet the needs of the business and the
circumstances of employees. These arrangements
include reviewing shift -working hours for operating
activities and part-time employment and working-
-from -home arrangements for certain roles. During
FY23, Skellerup moved operating hours at several
manufacturing sites to four-day, 10-hour shifts, which
more effectively and efficiently meet the needs of the
business and provides an additional clear non-working
day for its people. Skellerup plans to consider similar
arrangements for other facilities in the future. As at
30 June 2023, the Group employed 33 employees on
permanent part-time arrangements and employed
61 employees on hybrid working-from-home
arrangements.
3. Pay Equity
Skellerup is committed to ensuring all employees
are paid equitably. It deploys a skills-based model
in its manufacturing facilities, which strengthens the
effectiveness of its teams and ensures its employees are
rewarded in accordance with the skill level they achieve
and maintain. At each annual salary review Skellerup’s
target is for there to be nil equity remuneration issues
arising. At the last annual salary review in June and July
2023, business unit leaders reviewed and confirmed all
roles were clearly defined, and that remuneration was
based on relevant skills, experience, responsibility, effort
and performance, independent of the person in the role.
No equity issues arose from this review. Leaders are
also empowered to monitor performance, development
and changes in scope of roles so that remuneration
changes can be recommended and considered outside
of the annual salary review. Recruitment for new or
replacement roles are based on documented job
descriptions with the assistance of external agencies
to establish a short list of candidates that meet the
requirements of each role and to provide an insight into
the market level of remuneration for each role.
Principle 3 – Board Committees
Skellerup complies with the recommendations of
Principle 3.
The Board has appointed five 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
The Audit Committee currently comprises four non-
executive, independent Directors, one of whom is
appointed as Chair. Other Directors are permitted to
attend meetings of the Audit Committee. The CEO and
the Chief Financial Officer (CFO) attend as ex-officio
members at the invitation of the Audit Committee; the
external auditors attend by invitation of the Chair.
The Audit Committee meets a minimum of four times
each year. Its responsibilities include:
• Advising the Board on accounting policies, practices
and disclosure;
• Reviewing the scope and outcome of the external
audit and the performance of the auditors; and
• Reviewing the half-yearly and annual 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 Audit Committee is
Alan Isaac (Chair), John Strowger, David Cushing and
Rachel Farrant. The members of the Audit Committee
have a broad range of commercial, financial and
risk management experience, as well as relevant
qualifications, as outlined on pages 34 to 35.
2. Health and Safety Committee
The Health and Safety (H&S) Committee comprises
three non-executive, independent Directors, one of
whom is appointed as Chair, plus the CEO (who is also
an executive Director). Other Directors are permitted
to attend meetings of the H&S Committee. The CFO
attends meetings also as an ex-officio member.
The H&S Committee meets a minimum of three times
each year. Its responsibilities include:
• Providing leadership and policy for H&S
management within the Group;
• Advising the Board on H&S strategy and policy and
specifying targets to track performance;
• Reviewing management systems to ensure that they
are appropriate to manage hazards and risks of the
business; and
• Monitoring and reviewing 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.

40
SKELLERUP ANNUAL REPORT FY23
The current composition of the H&S Committee is John
Strowger (Chair), David Cushing, Paul Shearer and
David Mair.
3. Sustainability Committee
The Sustainability Committee comprises three non-
executive, independent Directors, one of whom is
appointed as Chair, plus the CEO (who is also an
executive Director).
Other Directors are permitted to attend meetings of the
Sustainability Committee. The CFO attends meetings
also as an ex-officio member.
The Sustainability Committee meets a minimum of
twice each year. Its responsibilities include:
• Assisting the Board in setting a sustainability
strategy that captures the material issues relevant to
Skellerup and creates long term value;
• Providing guidance to the development and
implementation of sustainability policies, initiatives,
programmes and activities;
• Considering current and emerging sustainability-
related matters that may affect Skellerup and its
business, operations or performance and making
recommendations;
• Ensuring alignment between community
engagement and investment initiatives with
sustainability and business objectives;
• Making sure appropriate reporting mechanisms
are in place as well as processes to assess the
effectiveness of any sustainability policies and
initiatives; and
• Monitoring compliance with any relevant
sustainability policies and reviewing the alignment
of Skellerup’s activities with its commitment to
sustainability matters.
The Sustainability Committee reports proceedings of
each of its meetings to the full Board.
The current composition of the Sustainability Committee
is Rachel Farrant (Chair), Alan Isaac, Paul Shearer and
David Mair.
4. Remuneration Committee
The Remuneration Committee comprises four non-
executive, independent Directors, one of whom is
appointed as Chair. Other Directors are permitted to
attend meetings of the Committee.
The Remuneration Committee meets as required to:
• Review the remuneration packages of the CEO and
senior managers; and
• Make recommendations to shareholders in relation
to non-executive Directors’ remuneration packages.
Remuneration packages are reviewed annually.
Independent external surveys are used as a basis for
establishing competitive packages. The CEO and CFO
only attend Remuneration Committee meetings at the
invitation of the Committee.
The current composition of the Remuneration
Committee is John Strowger (Chair), Alan Isaac,
Paul Shearer and David Cushing.
Board and Committee Attendance – 1 July 2022 to 30 June 2023
DirectorBoardAudit Health & SafetySustainabilityRemunerationNomination
John Strowger8 of 85 of 54 of 4N/A3 of 31 of 1
Liz Coutts +3 of 31 of 11 of 1N/A2 of 2N/A
David Cushing7 of 84 of 53 of 4N/A2 of 31 of 1
Rachel Farrant8 of 85 of 5N/A4 of 4N/AN/A
Alan Isaac8 of 85 of 5N/A3 of 43 of 3N/A
Paul Shearer 8 of 8N/A4 of 44 of 43 of 3N/A
David Mair *8 of 85 of 5*4 of 44 of 4N/AN/A
+ Liz Coutts retired from the Board on 26 October 2022.
* David Mair attends Audit Committee meetings ex-officio at the invitation of the Committee.
Skellerup has a Takeover Response Policy in place. The purpose of this 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 in a professional, timely and coordinated manner and in the best interests of Skellerup and its
shareholders. The Takeover Response Policy includes the option of establishing an independent takeover
committee, and the likely composition of such a committee, should it be required.

41
CORPORATE GOVERNANCE
5. Board Nomination Committee
The Board Nomination Committee comprises two
non-executive, independent Directors, one of whom is
appointed as Chair. Other Directors are permitted to
attend meetings of the Board Nomination Committee.
It meets as required to recommend new appointments
to the Board.
Board composition is regularly reviewed by the full
Board and the Board Nomination Committee to ensure
the collective skill set is appropriate for the Group and
to ensure appropriate succession planning.
The current composition of the Board Nomination
Committee is John Strowger (Chair) and David Cushing.
Principle 4 – Reporting and Disclosure
Skellerup complies with the recommendations of
Principle 4.
1. Financial Reporting
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
suppliers, 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.
2. Non-financial Reporting
The Company combines its non-financial
reporting within its annual report, recognising the
interdependence of financial and non-financial matters
to the long-term sustainability of the business.
Non-financial reporting disclosures are not subject to
external review.
Left to right: David Mair and Paul Shearer

42
SKELLERUP ANNUAL REPORT FY23
These disclosures are compiled by employees with the
appropriate knowledge and experience and reviewed
and approved by the CFO and CEO.
The principal focus for FY23 has been to ensure
the Company is prepared for mandatory climate
reporting in the 2024 financial year under the Climate-
related Disclosures (CRD) regime in New Zealand, as
established by the External Reporting Board (XRB).
The Company continues to develop its wider ESG
framework and to pursue ESG initiatives on a prudent
and commercial basis. For further information on
Skellerup’s progress throughout FY23, see page 28.
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.
This policy is reviewed annually and circulated to
Directors and employees, along with further guidance
on the application of the policy and additional
reminders about its purpose and importance.
Continuous disclosure is a standing agenda item
for each Board meeting. At each meeting, the Board
considers whether there is any relevant material
information that should be disclosed to the market and
minutes the outcome of that consideration, whether or
not any disclosure obligation is identified.
Principle 5 – Remuneration
Skellerup complies with the recommendations of
Principle 5.
The Board’s Remuneration Committee operates under
a written Charter, which outlines its membership,
procedures, responsibilities and authority.
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, which is available on the Company’s website.
The Remuneration 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.
Skellerup does not make discretionary sign-on,
retention or departure payments to incoming or
existing employees. Skellerup does not extend loans
to Directors, officers and managers.
Directors’ Remuneration
The Directors’ remuneration, except for the CEO’s,
is paid in the form of Directors’ fees. Additional
fees are paid to the Chairs of the Board, Audit and
Sustainability Committees to reflect the additional
responsibilities of these positions. Non-executive
Directors are paid a fixed cash fee and are not part of
any incentive or share scheme. Skellerup does not pay
retirement benefits to non-executive Directors.
The current annual fee pool for payment of non-
executive Directors is $650,000. This was approved
by shareholders at the Company’s 2021 Annual
Meeting. During FY23 the number of Directors was
increased above the number appointed when the pool
was approved. The increase in Directors was made
temporarily to manage Board succession ahead of the
retirement of Liz Coutts. As a result, in accordance with
NZX Listing Rules, the aggregate remuneration paid to
all non-executive Directors was increased by the amount
necessary to remunerate the additional Director.
The total fees paid to non-executive Directors in
FY23 amounted to $666,666. Details of Directors’
remuneration are shown on page 87.
CEO’s Remuneration
The CEO’s remuneration consists of fixed remuneration,
a short-term incentive (STI) and a long-term incentive
(LTI). This is reviewed annually by the Remuneration
Committee and the Board. Total remuneration paid to
the CEO in FY23 and in prior financial years, together
with a description of the share-based LTI scheme in
place for the CEO, is detailed on page 87. No loans have
been made to the CEO nor to any other executive of the
Skellerup Group.
Fixed Annual Remuneration
Fixed annual 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.
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 judgement each year as to
whether the goal has been achieved or not.

43
CORPORATE GOVERNANCE
The CEO approves (with notification to the
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 their targets for the year ahead.
Long-term Incentives (LTI)
The Company operates an LTI scheme for the benefit
of senior executives. The LTI scheme is intended to
reward and retain key employees, drive longer-term
performance and decision-making, and align incentives
with the interests of shareholders.
The LTI scheme permits the Board to grant options to
acquire fully-paid shares in the Company.
The most recent grant was made in October 2022.
Details are provided in 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’s remuneration is to an employee paid at the
median of all Group employees. As at 30 June 2023, the
CEO’s base salary at $725,000 was 11.9 times that of
the median employee at $61,100 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 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 Board is regularly briefed on the Group's plans
and management of information security risks.
There were no material information security breaches
in FY23 and the preceding year.
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 Group adhere to the Board-approved
financial control policies.
The H&S Committee leads and monitors H&S
management within the 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 H&S performance for FY23 is
shown on page 4.
Principle 7 – Auditors
Skellerup complies with the recommendations of
Principle 7.
The Board ensures the quality and independence of
the external audit process, which culminates in the
audit report issued in relation to the annual financial
statements.
The Board has an established framework for Skellerup’s
relationship with its external auditor and to ensure
independence of the Company’s external auditor is
maintained, a written Audit Independence Policy has
been implemented. The Audit Independence Policy
sets out guidelines to be followed to ensure that related
assurance and other services provided by Skellerup’s
auditor are not perceived as conflicting with the
independent role of the external auditor. The Audit
Committee approves any non-audit services that are
provided by the external auditor. Management and
the external auditor are invited to attend meetings of
the Audit Committee. The Audit Committee meets with
the external auditor 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 2022 Annual
Meeting in accordance with the Companies Act 1993.
The EY audit partner responsible for the Skellerup
audit was appointed during FY23 and will act for a
maximum of five years.

44
SKELLERUP ANNUAL REPORT FY23
The EY audit partner attends the annual meetings
and is available to answer questions relating to the
audit. The EY audit partner attended the 2022 Annual
Shareholders’ Meeting and is expected to attend the
2023 Annual Shareholders’ Meeting.
EY is asked to provide the Audit Committee with written
confirmation that, in their view, they were able to operate
independently during the FY23 audit. During FY23, EY
has not provided any non-audit services to the Group.
Skellerup maintains an internal audit function with the
assistance of external advisors. Skellerup reviews the
residual risks from its semi-annual Risk Management
Report to determine priorities for consideration for
internal audit review. 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 of the
financial statements on page 58.
Principle 8 – Shareholder Rights
and 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 and other
key stakeholders through the annual and interim reports,
disclosures 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. Voting of shareholders
is by poll, on the basis of one share, one vote. In 2022,
the Company’s annual meeting was a hybrid meeting
allowing those not present at the meeting venue in
Auckland, New Zealand, to actively participate and
shareholders were provided with a virtual meeting
guide ahead of the annual meeting. Shareholders and
their proxies were able to vote and ask questions and to
view the live presentations whether they attended the
meeting in person or online.
All shareholders have the option to elect to receive
electronic communications from the Company through
the Company’s share registrar (Computershare) and by
electing to receive email notifications of investor news
from the Company.
In addition to shareholders, Skellerup has a wide
range of stakeholders and maintains open channels
of communication for all audiences, including
the investing community, regulators, employees,
customers and suppliers.
The Company maintains information for shareholders
on its website at 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 are able to receive all
communication from Skellerup electronically.
The Board respects the interests of all shareholders 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.
No major decisions which may change the nature of
Skellerup were made during FY23 and therefore no
such matters were required to be put to shareholders.
Similarly, Skellerup did not seek additional equity
capital in FY23 and therefore there was no such offer
to be made to shareholders on a pro rata basis. Notice
of the 2022 Annual Meeting (being the only meeting of
shareholders called in FY23) was given more than 20
working days prior to the meeting.

45
CORPORATE GOVERNANCE

46

47
Consolidated
Financial Statements
For the year ended 30 June 2023

48
SKELLERUP ANNUAL REPORT FY23
A member firm of Ernst & Young Global Limited




Independent auditor’s report to the Shareholders of Skellerup Holdings Limited
Opinion
We have audited the financial statements of Skellerup Holdings Limited (“the company”) and its
subsidiaries (together “the group”) on pages 52 to 85, which comprise the consolidated balance sheet of
the group as at 30 June 2023, 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 52 to 85 present fairly, in all material
respects, the consolidated financial position of the group as at 30 June 2023 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.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current year. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, but we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of the audit report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our audit procedures, including the procedures

49
AUDIT REPORT
A member firm of Ernst & Young Global Limited




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 (“components”) 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 group’s significant
businesses.

As a result of this assessment, each business was allocated a
scope reflecting the extent of audit procedures required and
a materiality reflecting the
size and risk profile of the
component relative to the group.

The group audit team communicated to the component audit
teams 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 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 component teams were required to provide written
confirmation to the group audit team explaining (where
relevant) 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/or component teams in all major locations.
During these discussions, the work performed by each team
was discussed including any key judgements as
well as
findings relevant to the group audit. In selected instances
the group audit team reviewed elements of the component
team’s workpapers.

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.

50
SKELLERUP ANNUAL REPORT FY23
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 Susan Jones.


Chartered Accountants
Auckland
17 August 2023
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 Susan Jones.


Chartered Accountants
Auckland
17 August 2023
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 Susan Jones.


Chartered Accountants
Auckland
17 August 2023

51
CONSOLIDATED FINANCIAL STATEMENTS
Directors’
Responsibility
Statement
For the year ended 30 June 2023
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
2023, and the results of their operations and cash flows
for the year ended 30 June 2023.
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.
John Strowger
Chairman
Alan Isaac
Independent Director
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.
The Directors are pleased to present the Group
financial statements of Skellerup Holdings Limited for
the year ended 30 June 2023.
The Group financial statements are dated 17 August
2023 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

52
SKELLERUP ANNUAL REPORT FY23
Income Statement
for the year ended 30 June 2023

Note
2023
$000
2022
$000
Revenue2333,537 316,829
Cost of sales(194,409)(190,401)
Gross profit139,128 126,428
Other income/(expenses)4(343)2,688
Selling, general and administration expenses(67,126)(62,356)
Profit for the year before tax, finance costs and share of profit
of associates71,659 66,760
Finance costs16(4,594)(2,249)
Share of net profit of associates accounted for using the equity method(78)(224)
Profit for the year before tax66,987 64,287
Income tax expense5(16,046)(16,474)
Net after-tax profit for the year, attributable to owners of the Parent50,941 47,813
Earnings per share
Basic earnings per share (cents)1926.02 24.48
Diluted earnings per share (cents)1925.82 24.26
The above Income Statement should be read in conjunction with the accompanying notes.

53
CONSOLIDATED FINANCIAL STATEMENTS
Statement of Comprehensive Income
for the year ended 30 June 2023

Note
2023
$000
2022
$000
Net profit after tax for the year50,94147,813
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net gains/(losses) on cash flow hedges172,325(3,704)
Income tax related to gains/(losses) on cash flow hedges5(651)1,037
Foreign exchange movements on translation of overseas subsidiaries171,9664,797
Income tax related to gains/(losses) on foreign exchange movements
with overseas subsidiaries596(177)
Other comprehensive income net of tax3,7361,953
Total comprehensive income for the year attributable to equity holders
of the Parent54,67749,766
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

54
SKELLERUP ANNUAL REPORT FY23
Balance Sheet
as at 30 June 2023

Note
2023
$000
2022
$000
Current assets
Cash and cash equivalents617,09414,796
Trade and other receivables and prepayments757,51563,870
Inventories874,88669,595
Income tax receivable805202
Derivative financial assets22109367
Total current assets150,409 148,830
Non-current assets
Property, plant and equipment990,32089,757
Right-of-use assets931,83927,966
Deferred tax assets53,1674,021
Goodwill1063,59661,453
Intangible assets102,8153,032
Investment in associate-1,513
Derivative financial assets2283172
Total non-current assets192,568 187,814
Total assets342,977 336,644
Current liabilities
Bank overdraft61,624-
Trade and other payables1127,08236,192
Provisions125,0855,949
Income tax payable1,6056,021
Lease liabilities – short term146,1185,482
Derivative financial liabilities221,8582,252
Total current liabilities43,372 55,896
Non-current liabilities
Provisions121,8132,155
Interest-bearing loans and borrowings1342,30040,000
Deferred tax liabilities52,0871,820
Lease liabilities – long term1427,59423,708
Derivative financial liabilities223751,857
Total non-current liabilities74,169 69,540
Total liabilities117,541 125,436
Net assets225,436 211,208
Equity
Equity attributable to equity holders of the Parent
Share capital1572,40672,406
Reserves17(3,057)(6,603)
Retained earnings20156,087145,405
Total equity225,436 211,208
The above Balance Sheet should be read in conjunction with the accompanying notes.

55
CONSOLIDATED FINANCIAL STATEMENTS
Statement of Changes in Equity
for the year ended 30 June 2023
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 202172,406166(9,461)296132,742196,149
Net profit after tax for the year ended
30 June 2022
----47,81347,813
Other comprehensive income-(2,667)4,620--1,953
Total comprehensive income for the year-(2,667)4,620-47,81349,766
Share incentive scheme---443-443
Dividends----(35,150)(35,150)
Balance 30 June 202272,406(2,501)(4,841)739145,405211,208
Net profit after tax for the year ended
30 June 2023----50,94150,941
Other comprehensive income17-1,6742,062--3,736
Total comprehensive income for the year-1,6742,062-50,94154,677
Share incentive scheme18---(190)813623
Dividends20----(41,072)(41,072)
Balance 30 June 202372,406(827)(2,779)549156,087225,436
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

56
SKELLERUP ANNUAL REPORT FY23
Cash Flow Statement
for the year ended 30 June 2023

Note
2023
$000
2022
$000
Cash flows from operating activities
Receipts from customers339,860309,427
Interest received576
Dividends received22
Payments to suppliers and employees(260,633)(249,323)
Income tax refund/(paid)(20,578)(14,541)
Interest and bank fees paid(3,183)(1,262)
Interest on right-of-use asset leases(1,411)(987)
Net cash flows from/(used in) operating activities54,114 43,322
Cash flows from investing activities
Proceeds from sale of property, plant and equipment546655
Payments for property, plant and equipment(7,751)(9,482)
Payments for intangible assets (496)(704)
Acquisition of a business, net of cash acquired(862)(10,216)
Net cash flows from/(used in) investing activities(8,563)(19,747)
Cash flows from financing activities
Proceeds from/(repayments for) loans and advances132,28415,601
Repayments of lease liabilities(6,030)(5,487)
Dividends paid to equity holders of Parent(41,072)(35,150)
Net cash flows from/(used in) financing activities(44,818)(25,036)
Net increase/(decrease) in cash and cash equivalents733(1,461)
Cash and cash equivalents at the beginning of the year14,79615,673
Effect of exchange rate fluctuations(59)584
Cash and cash equivalents at the end of the year615,470 14,796
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
2023
$000
2022
$000
Net profit after tax50,94147,813
Adjustments for:
Depreciation and impairment – property, plant and equipment7,8387,302
Depreciation and impairment – right-of-use assets6,6635,868
Amortisation732593
(Gain)/loss on sale of assets(143)(250)
Foreign currency movements27(674)
Bad debts written off209-
Increase/(decrease) in allowance for expected credit losses(152)(3)
Share of profit in associates(78)(224)
Net movement in working capital(11,923)(17,103)
Net cash inflow from operating activities54,114 43,322

57
CONSOLIDATED FINANCIAL STATEMENTS
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 17 August 2023.
(a) Nature of operations
The Skellerup Group of companies 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 2023.
(c) Statement of compliance
The consolidated financial statements for the year ended 30 June 2023 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 Group’s accounting policies have been applied consistently to all periods presented in those financial statements, and
have been applied consistently by all Group entities.
To ensure consistency with the current period, comparative figures have been amended to conform with current period
presentation where appropriate.
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 2023. 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.
Notes to the Financial Statements
for the year ended 30 June 2023

58
SKELLERUP ANNUAL REPORT FY23
In preparing the consolidated financial statements, all inter-company balances, income and expense transactions, and profit
and losses resulting from intra-Group activities, have been eliminated.
(e) Foreign currency translation
Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency that best reflects
the economic substance of the underlying events and circumstances relevant to that entity (the ‘functional currency’). The
consolidated financial statements are presented in New Zealand dollars (the ‘presentation currency’), which is the functional
currency of the Parent.
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 note.
• Note 10 Impairment of goodwill page 68

59
CONSOLIDATED FINANCIAL STATEMENTS
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 and Industrial, 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.
Corporate Division
The Corporate Division is not an operating segment, and 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 2023
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue117,025216,840-(328)333,537
Segment EBIT34,03142,903(5,258)(17)71,659
Profit before tax, finance costs and share
of profit of associate71,659
Finance costs(4,594)
Share of net profit of associate(78)
Profit for the year before tax66,987
Income tax expense(16,046)
Net after-tax profit50,941
Assets and liabilities
Segment assets130,604190,17222,201-342,977
Segment liabilities15,35750,02452,160-117,541
Net assets (liabilities)115,247140,148(29,959)-225,436
Other segment information
Additions to fixed assets and intangibles2,3768,0733-10,452
Cash flow
Segment EBIT34,03142,903(5,258)(17)71,659
Adjustments for:
- Depreciation and amortisation5,1469,960127-15,233
- Non-cash items--(137)-(137)
Movement in working capital(2,225)(7,319)(2,392)13(11,923)
Segment cash flow36,95245,544(7,660)(4)74,832
Finance and tax cash expense(23,761)
Movement in finance and tax accrual3,043
Net cash flow from operating activities54,114
Notes to the Financial Statements
for the year ended 30 June 2023

60
SKELLERUP ANNUAL REPORT FY23
1. Segment Information (continued)
For the year ended 30 June 2022
Agri
$000
Industrial
$000
Corporate
$000
Eliminations
$000
Total
$000
Revenue110,540206,353-(64)316,829
Segment EBIT33,59739,093(5,930)-66,760
Profit before tax, finance costs and share
of profit of associate
66,760
Finance costs(2,249)
Share of net profit of associate(224)
Profit for the year before tax64,287
Income tax expense(16,474)
Net after-tax profit47,813
Assets and liabilities
Segment assets132,330182,43321,881-336,644
Segment liabilities16,90152,53156,004-125,436
Net assets (liabilities)115,429129,902(34,123)-211,208
Other segment information
Additions to fixed assets and intangibles2,32516,23959-18,623
Cash flow
Segment EBIT33,59739,093(5,930)-66,760
Adjustments for:
- Depreciation and amortisation4,9368,707120-13,763
- Non-cash items--(1,151)-(1,151)
Movement in working capital(6,480)(11,480)857-(17,103)
Segment cash flow32,05336,320(6,104)-62,269
Finance and tax cash expense(15,803)
Movement in finance and tax accrual(3,144)
Net cash flow from operating activities43,322
Major customers
The Agri and Industrial Divisions generate revenue from a large number of customers. For the Agri Division, the three
largest customers account for 36.8% (2022: 38.4%) of the Agri Division revenue. For the Industrial Division, the three largest
customers account for 9.3% (2022: 11.1%) of the Industrial Division revenue.

61
CONSOLIDATED FINANCIAL STATEMENTS
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 customers. Differences in foreign currency translation rates can impact comparisons
between years.
2023
$000
2022
$000
North America118,639104,095
New Zealand75,60275,342
Australia49,11348,090
Europe41,55139,668
Asia25,28828,563
United Kingdom and Ireland20,83117,513
Other2,5133,558
Total revenue333,537316,829
(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:
2023
$000
2022
$000
New Zealand123,725127,449
United Kingdom and Ireland18,50318,300
Europe14,08812,674
Australia13,31910,863
North America11,4375,671
Asia7,4987,251
Non-current assets188,570182,208
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 reflects
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.

62
SKELLERUP ANNUAL REPORT FY23
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
2023
$000
2022
$000
Employee benefits expense
Wages and salaries (including annual leave, long-service leave,
sick leave and executive share scheme)60,32762,072
Termination benefits86265
Defined contribution expense3,2932,958
Total employee benefit expense63,70665,295
Depreciation, amortisation and impairment expense
Depreciation and impairment of property, plant and equipment97,8387,302
Depreciation and impairment of right-of-use assets96,6635,868
Amortisation of intangible assets10732593
Total depreciation, amortisation and impairment expense15,23313,763
Total (gain)/loss on disposal of property, plant and equipment(143)(250)
Total product development costs3,8843,662
Short term and low value lease costs435332
Remuneration of auditors
Audit of the financial statements by Parent company auditors792705
Other auditors’ fees for the audit of the financial statements
in foreign jurisdictions115102
Total remuneration of auditors907807
4. Other Income/(Expenses)
2023
$000
2022
$000
Interest income576
Government grants received112496
Realised and unrealised foreign currency gains/(losses)(2,113)882
Other sundry income1,6011,304
Total other income/(expenses)(343)2,688

63
CONSOLIDATED FINANCIAL STATEMENTS
5 . Ta x a t i o n
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered
from, or paid to, 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
2023
$000
2022
$000
Current income tax
Current income tax charge/(credit)15,680 16,655
Prior-year adjustments(72)(514)
Deferred income tax
Temporary difference reversal/(origination)709 247
Prior-year adjustments(326)90
Effect of movements in tax rates55 (4)
Income tax expense as per income statement16,04616,474
(b) Amounts charged/(credited) to other comprehensive income

Note
2023
$000
2022
$000
Current income tax
Fair value of derivative financial instruments17651(1,037)
Translation of foreign operations17(96)177
Total income tax expense/(credit) relating to other
comprehensive income555(860)
(c) Reconciliation
2023
$000
2022
$000
Total profit before tax as reported66,98764,287
Tax percentage at Parent company rate28%28%
Tax at Parent company rate18,757 18,000
Non-deductible expenses/(non-assessable income)(1,105)(3)
Tax effects of non-New Zealand profits(1,263)(1,095)
Adjustments for prior years(398)(424)
Effect of movements in tax rates55(4)
Income tax as per income statement16,04616,474

64
SKELLERUP ANNUAL REPORT FY23
5. Taxation (continued)
(d) Deferred tax assets and liabilities
2023
$000
2022
$000
Deferred tax assets3,167 4,021
Deferred tax liabilities(2,087)(1,820)
Net tax asset1,0802,201
The movement in the net deferred tax assets and liabilities is provided below:
2023
Opening
Balance
$000
Charged to
Income
$000
Charged to Other
Comprehensive
Income
$000
Acquired on
Purchase of a
Business
$000
Foreign
Currency
Movements
$000
Closing
Balance
$000
Property, plant and equipment(5,929)(5,289)--(76)(11,294)
Provisions and accruals7,1584,851--4412,053
Financial derivatives972-(651)--321
Net tax asset2,201(438)(651)-(32)1,080
2022
Opening
Balance
$000
Charged to
Income
$000
Charged to Other
Comprehensive
Income
$000
Acquired on
Purchase of a
Business
$000
Foreign
Currency
Movements
$000
Closing
Balance
$000
Property, plant and equipment(6,557)669--(41)(5,929)
Provisions and accruals8,058(1,002)-52507,158
Financial derivatives(65)-1,037--972
Net tax asset1,436(333)1,0375292,201
(e) Imputation credit account

Note
2023
$000
2022
$000
Balance at the beginning of the year4,302 2,056
Attached to dividends paid20(7,630)(6,567)
Income tax paid/payable in New Zealand8,956 8,813
Total imputation credits5,6284,302
6. Cash and Cash Equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less.
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.
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.
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.
2023
$000
2022
$000
Cash at banks and on hand17,09414,796
Bank overdraft(1,624)-
Cash and cash equivalents per cash flow statement15,47014,798

65
CONSOLIDATED FINANCIAL STATEMENTS
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 from contracts with customers.
The Group recognises an allowance for expected credit losses where there is an increase in credit risk subsequent to initial
recognition.
2023
$000
2022
$000
Trade receivables49,37456,125
Less allowance for expected credit losses (86)(242)
49,28855,883
GST/VAT receivable599808
Other receivables and prepayments7,6287,179
Total trade and other receivables and prepayments57,51563,870
The average credit period for the sale of goods is 48 days (2022: 50 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, $9.03 million (2022: $11.99 million) representing 18.3%
(2022: 21.5%) 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
2023
$000
2022
$000
One to 30 days3,2375,390
31 to 60 days385690
61 days plus8140
Total past due trade receivables3,7036,120
Movement in the allowance for expected credit losses:
Balance at the beginning of the year242227
Impaired losses recognised75 42
Amounts written off as uncollectable(193)(5)
Impairment losses reversed(34)(34)
Net foreign currency exchange differences(4)12
Balance at the end of the year86242

66
SKELLERUP ANNUAL REPORT FY23
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 condition 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.
2023
$000
2022
$000
Raw materials21,68717,062
Work-in-progress1,8952,648
Finished goods51,30449,885
Total inventories74,88669,595
The value of inventories is net of $2,453,432 (2022: $2,371,820) 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: Term of the lease
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.
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.