Annual Meeting 2023

ANNUAL
SHAREHOLDERS
MEETING
2 5 O C T O B E R 2 0 2 3
1

Directors and Executives
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John Strowger
Independent Chair
Joined the Board in March 2015
Chair of the Health & Safety Committee
David Cushing
Independent Director
Joined the Board in August 2017
Alan Isaac
Independent Director
Joined the Board in August 2016
Chair of the Audit Committee
Rachel Farrant
Independent Director
Joined the Board in May 2022
Chair of the Sustainability Committee
Paul Shearer
Independent Director
Joined the Board in August 2020
David Mair
Director | CEO
Joined the Board in November 2006
Appointed CEO in August 2011
Graham Leaming
CFO
Appointed in December 2012

Meeting Agenda
3
•Address from the Chair, John Strowger
•Address from the CEO, David Mair
•Resolutions
•Re-election of David Cushing
•Re-election of Paul Shearer
•Remuneration of the Auditors
•General Business
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Address from the Chair
John Strowger
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-
50
100
150
200
250
300
350
400
FY17FY18FY19FY20FY21FY22FY23
Revenue ($m)
CAGR 7%
-
10
20
30
40
50
60
FY17FY18FY19FY20FY21FY22FY23
NPAT ($m)
CAGR 14%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY17FY18FY19FY20FY21FY22FY23
Earnings per Share
(cents)
Seven years of earnings growth
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0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY17FY18FY19FY20FY21FY22FY23
Dividend per Share
(cents)

6
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Address from the CEO
David Mair
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-
50
100
150
200
250
300
350
400
FY17FY18FY19FY20FY21FY22FY23
Revenue ($m)
CAGR 7%
-
10
20
30
40
50
60
FY17FY18FY19FY20FY21FY22FY23
NPAT ($m)
CAGR 14%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY17FY18FY19FY20FY21FY22FY23
Earnings per Share
(cents)
Seven years of earnings growth
8
A N N U A L S H A R E H O L D E R S M E E T I N G / 2 5 O C T O B E R 2 0 2 3
0.0
5.0
10.0
15.0
20.0
25.0
30.0
FY17FY18FY19FY20FY21FY22FY23
Dividend per Share
(cents)

30%
33%
36%
39%
42%
45%
FY17FY18FY19FY20FY21FY22FY23
Gross Margin %
10%
14%
18%
22%
26%
FY17FY18FY19FY20FY21FY22FY23
Indirect Cost %
10%
14%
18%
22%
26%
FY17FY18FY19FY20FY21FY22FY23
EBIT %
Skellerup sauce
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“If we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain
strength. On a daily basis, the effects are imperceptible; cumulatively though their consequences are enormous.
When our long-term competitive position improves as a result of these almost imperceptible actions, we describe
the phenomenon as ‘widening the moat’.”
-Warren Buffet

Skellerup customer engagement
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Branding
Design
Manufacturing
Distribution
Marketing
Production Chain
Lower
Higher
Value
Added
Time
Sales/After Service
Concept/R&D
•What truly defines the value proportion of
a product
•Where should our focus be?
•What does this mean for the structure of a
business and the make-up of the
personnel
The Smile Curve: Stan Shih (Acer)

Skellerup revenue by market
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35%
23%
15%
12%
8%
6%
Revenue by market FY23
North America
New Zealand
Australia
Europe
Asia
UK & Ireland
Other

12
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Questions
John Strowger | Chair
13
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Resolutions
John Strowger | Chair
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Resolution 1
Re-election of David Cushing
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Resolution 2
Re-election of Paul Shearer
16
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Resolution 3
Remuneration of the Auditors
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General Business
John Strowger | Chair
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SKL FY23 ASM Chair Address
Turning now to my address to Shareholders in relation to FY23 highlights.
The obvious highlight is the achievement of another record -breaking net profit of $50.9 million, on
$333.5 million of revenue.
The slide which Graham has just dialled up behind me details some of the metrics over the last seven
years; it’s a record we’re proud of.
This was founded on the usual pillars you’ve now heard about many times from us.
We still look to work closely with our customers to identify and develop enduring solutions to their
commercial problems.
We are still supplying stay in business componentry to a range of customers in agricultural and
broader industrial applications.
We still supply critical componentry to our OEM customers, which – once embedded in their
products – is very hard to shift.
None of this ever happens overnight. Winning a customer’s confidence for the supply of critical
componentry to its business takes time - often, a lot of time. Success can arrive gradually around
here, but once it does it tends to be sticky.
This is not to suggest that any of this is taken for granted. It never is. In this world of constant
change, stopping is not an option.
We’ve told you before about the intellectual capability which is our outstanding team – many of
whom are sitting in front of me, and whom David will introduce shortly. As I note in my annual
report review, the capability of our people is as much an asset of the Group as the bricks and mortar
– and (according to some people) leases – which are reported on the balance sheet.
In FY23 the key recurring themes (and challenges) for us were cost escalation, destocking and
working capital management.
On cost escalation, input costs including natural and synthetic rubbers – a key manufacturing input
for us - continued to escalate, and then were slow to abate.
Freight costs and capacity shortfalls did not uniformly ease off - as an exporter to (and around) the
world, Skellerup is a significant purchaser of freight services. We have people dedicated to
managing this cost item - at times it feels like we are a logistics company, without a revenue line. I’m
pleased to say we are experiencing some relief in this area now, but for most of the year FY23 bore
the brunt.
Wage pressure rose in response to inflation pressures, across the Group. We all know about that.
We have looked to pass on these costs increases to our customers, where possible. The record net
profit reported might suggest that that’s been successful, but it’s not as simple as that. As David will
explain further, we continually look to refine our manufacturing processes for cost savings through
process efficiencies and look for opportunities in product lines with improved margins – we have
made progress, but the quest continues!!

Turning to the phenomenon, which is destocking, it turned out that Covid, for our business like many
others, delivered a sugar hit of early revenue as our customers – responding to the same freight and
logistics challenges we were experiencing throughout the pandemic - brought forward orders to
mitigate the risk of shortfall in stock or critical components.
This was particularly obvious in first half of FY23 financial year – in February this year, we reported a
first half net profit of $23 million, which was actually down on the result for the same period in the
previous year. So there has been significant catch up going on.
Also, and while we enjoyed the initial uplift in orders brought forward by Covid, it has frankly proved
difficult to predict demand going forward. Our experience has been that some pockets of customer
demand has been extremely lumpy, and this experience continues.
Of course, we are not immune to the circumstances that motivated customers to pull forward
orders. We had to do the same, and so the level of working capital we had to carry increased
materially, peaking around the half year for FY 23. We were back to satisfactory levels, after a
concerted focus, by year end.
We have kept a rigorous eye – of course - on the Receivables position and stock obsolescence, and
are confident we are in a good position, but – it’s something that required heightened attention.
It helped that we are not carrying high levels of debt. This meant we can make decisions in relation
to the business that are not influenced or compromised by capital constraints or financial covenants.
And we can distribute a high proportion of free cash flow in the form of dividends to shareholders –
as we should. After all, you are the owners. The full dividend of 22 cents per share paid in respect of
FY23 is a record.
Before I turn briefly to the year ahead (which David will cover in more detail), I’d like to touch briefly
on a governance question, which we seem to encounter year after year here at Skellerup – and that
is the weighty issue of director independence. As noted in our annual report, your Board considers
that status of all directors from a perspective of independence annually having regard to the NZX
Corporate Governance Code and Listing Rules. At its essence the rules require a consideration of
“factors might interfere with each director’s capacity to bring an independent judgement to bear on
issues before the board and to act in the best interests of the company and represent the interests
of shareholders generally (I’m paraphrasing from the Corporate Governance Code here).
The Code lists factors which may be relevant to this determination. These factors include holding a
significant shareholding in the Company, connection with a professional services firm which delivers
services to the Company, and directors with a long tenure.
All of these factors have had or do have possible application to the Skellerup board. We have
considered these factors having regard to the objective – the point - of these disciplines, which is the
ability to exercise independent judgement, and act in the best interests of the company and its
shareholders. We have determined that all directors are independent, with the exception of David
Mair, of course We are very comfortable that the standards of independence and decision-making
integrity are not compromised by that conclusion.
We are however aware of certain commentators and agencies that seem to misread the above
factors are determinative of non-independence. For example, if you are a large shareholder, you
can’t be independent.
We do reject that line of thought. The concept is (and ought be) a more sophisticated one than that.
I mention this because it is a consideration we seem burdened with every year, and I wanted to
record my position on this topic. This is not an academic point; we have proxy solicitation houses

making voting recommendations based on their classifications of independence. For example, and
as a consequence of classification as a “non-independent” based on my former role as a partner of
our legal service provider, 31% of votes cast in respect of the resolution securing my re-appointment
in 2021 were cast against. This despite me having no involvement in (or even awareness of) the
provision of these legal services and – fortunately – the quantum of fees paid to my former firm
being immaterial, and so translating to nil pecuniary advantage to me.
Your entire board takes a “special interest” in Skellerup - the ethos of the business, and its proud
history, really does get under your skin.
Anyway - I feel better now.
Turning to the future, we do see FY24 as more of the same here at Skellerup. Perhaps it has always
been this way – flashy initiatives are not for us. But if we could find a good fairly priced symbiotic
business in a market where we have growth aspirations (that’s every market, but in particular, the
US), we would give it careful consideration.
We are also looking to progress initiatives towards in market manufacturing – with 35% of our FY23
revenues there, the US is the obvious market.
Shareholders can rest assured that none of these initiatives will be pursued without careful thought
and planning. Of course, there is nothing imminent here, but I wanted to articulate these goals to
force us to review progress in a year’s time (even if there is none).
Another initiative that looms large for your Board in the forthcoming year is ESG reporting
requirements, which become mandatory from FY24. We see this as an opportunity to be more
transparent about 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.
And of course, we will continue to forge enduring relationships with our customers in the Skellerup
way – business as usual. The bedrock of Skellerup’s success. In that regard, there are product roll
outs in significant markets for some of our customers which should underpin revenue growth this
year.
Earlier today, we announced to the NZX guidance for the FY24 financial year of NPAT in the range
$50 to $55 million. In doing so we noted the lower-than-expected sales in the Agri division year to
date – that shouldn’t surprise anyone. The Industrial Division is, though, trading in line with
expectations. We expect sales growth in both divisions in the balance of 2024 – noting we have 9
months to go. That’s a long time, and the global environment isn’t exactly stable. But this is our
considered view of what the business will do, right now. That’s what guidance is supposed to be.
As I noted in the annual report, these year-on-year record years get increasingly hard to beat, and
inevitably there will be a year when we do not, but shareholders will I'm sure 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.
I’d like to thank and congratulate the entire team at Skellerup for their contribution to the FY23
record result. We are the beneficiary of a loyal and stable workforce, including in the senior ranks.
It’s a comfortable experience for your board to report these record results to you, but success here
genuinely has many parents.
Thank you for your continuing support in Skellerup.

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SKL FY23 ASM CEO Address
Thank you, John.
I’d like to begin by introducing several key people in our team.
Industrial Division
Guy Meuli – General Manager Vacuum Systems Group, DEKS North America and Europe
Logan Mckenzie – International Market Support, Vacuum Systems Group
Patrick Crotty – General Manager Ultralon Group and Gulf Rubber Australia
Richard Cosmann – Operations Manager, Ultralon
Shaun Spacey – Business Unit Manager, Product Development Centre
Mike Draper – Business Unit Manager, Talbot
Bhargav Dave – Business Unit Manager, Skellerup Rubber Services
Agri Division
Dino Kudrass – Head of Product and Process Development
Jane Boyd – Head of Customer Experience and Marketing
Head Office
Laura Dixon – Executive Assistant
Tim Runnalls – Group Financial Controller
Ryan Zarei – Business Analyst
Skellerup Performance
Skellerup has delivered another record year: the latest in an unbroken chain of excellent
performance by our people across all parts of Skellerup’s global businesses. Seven years of revenue
CAGR 7% and NPAT CAGR 14%. It’s not luck! How have we achieved this?
The Secret Sauce
Through a clarity of purpose and then execution of our strategy and business plans, we are getting
better alignment of our entire workforce to improving processes. Everyone can make a difference.
As we focus on improving processes, the outcomes (the numbers) get better. What does that mean?
We are confident that despite market setbacks and volatility, we should be able to improve our
business profits 5% per year for a sustained period. That provides the platform for organic growth.
Some of you will recognize that as a very Japanese approach called Kaizen. I am a big fan.
Then we need a few large initiatives that change the game (and deliver growth above the organic 5%
target I have noted.
Customer Engagement
The Smile Curve is a useful way of thinking about our customer engagement. The left-hand side of
the graph is really about a unique differentiated product strategy; the right-hand side is about a
customized service. We want the smile to get bigger (adding more value) by innovating both product
and service.

The combination of the two (differentiated product + highly effective service) provides an
opportunity to demonstrate our value to the customer and 'lock them in.’ We often discuss
internally the concept of customer lock in. Of course, what we mean is that a customer ‘locks us in.’
Every customer wants to feel special. We help our customers to become more competitive by
focusing on their unique wants and needs and help them make more money.
Please talk to Guy M, Pat C or Dino about Lock In
US Market
We have signalled clearly that the US market is key with significant opportunities. We believe that
greater in-market manufacturing and distribution capability will be necessary to meet ever
increasing customer demands.
One way of thinking about that is we should aim to have processes that are globally competitive.
That means lowest cost. It is then a question of where to run those processes and the recent trends
strongly suggest you do that in market close to your customers.
In order to progress that initiative, one example is we have partnered to make a range of
infrastructure pipe rings for our customers McWane and US Pipe in the USA. We have also moved to
full ownership of Sim Lim (now part of the Gulf US business) that provides us with tooling and
production capability for liquid silicone rubber products. This capability has applications not only
with existing customers, but also in many areas of new business (particularly medical components).
We are preparing parts of our business with sales into the US to be ready for in-market manufacture
in particular food grade dairy rubberwear. We are doing that by investing in and developing
standard equipment and focusing on our approach to tooling in particular.
We also have exciting opportunities with new products and customers including a large customer in
the hygiene market who are launching their new dispensing equipment in November 2023.
Skellerup
The last 12 months has seen some significant milestones for Skellerup. In November last year Deks
Australia celebrated their 75
th
anniversary with an event in Melbourne. In June this year I had the
privilege of attending Skellerup Jiangsu’s 20
th
anniversary and just last week Red Band reached 65
years!
Skellerup is an international confederation of businesses run from a small head office (eight people
with two working part time). We want the resources to be in the businesses and we hold the leaders
accountable to delivering EBIT. The total cost of the head office of NZD 5.6m in FY23 including
Directors’ fees, salaries and NZX fees, external reporting costs and shareholder communications. A
real bargain for shareholders!
I would like to thank the Board for their support. All our directors are shareholder focused, business
savvy and have a particular interest in Skellerup. Their relevant skills and experience provide support
for Graham and me to make fast decisions where appropriate and provide a sense check to strategic
decisions.
And finally, to all shareholders, thank you for your support.