Skellerup delivers robust result in challenging markets

Results Announcement
Results for announcement to the market
Name of issuer Skellerup Holdings Limited
Reporting Period 12 months to 30 June 2024
Previous Reporting Period 12 months to 30 June 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
NZD 330,578 (1%)
Total Revenue NZD 330,578 (1%)
Net profit/(loss) from continuing
operations
NZD 46,893 (8%)
Total net profit/(loss) NZD 46,893 (8%)
Interim/Final Dividend
Amount per Quoted Equity
Security
NZD 0.15500000
Imputed amount per Quoted
Equity Security
NZD 0.03013889
Record Date 04/10/2024
Dividend Payment Date 18/10/2024
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
NZD 0.8395 NZD 0.8121
A brief explanation of any of the
figures above necessary to enable
the figures to be understood
Refer to annual report
Authority for this announcement
Name of person authorised to
make this announcement
Tim Runnalls
Contact person for this
announcement
Tim Runnalls
Contact phone number 027 807 5080
Contact email address tim.runnalls@skellerupgroup.com
Date of release through MAP 15/08/2024

---

ANNUAL
REPORT
FY24
ANNUAL
REPORT
FY24

SKELLERUP ANNUAL REPORT FY24
2
Business Review
Highlights FY244
Chair's Review 8
What We Do12
Our Product Development Process In Action 14
CEO's Review 16
Skellerup's People22
Financial Commentary26
Group Climate Statements 30
Board of Directors50
Corporate Governance 52
Consolidated Financial Statements
Independent Auditor’s Report 68
Directors’ Responsibility Statement 71
Income Statement 72
Statement of Comprehensive Income 73
Balance Sheet 74
Statement of Changes in Equity75
Cash Flow Statement 76
Notes to the Financial Statements 77
Shareholder Information
Directors’ Disclosures and Shareholding 106
Corporate Directory 108
CONTENTS

INTRODUCTION
3
A GLOBAL LEADER IN PRECISION
ENGINEERED PRODUCTS
Skellerup designs, manufactures and
distributes essential high-performance
components to customers around
the world. Our products are trusted
across dairy, potable and wastewater,
construction, sport and leisure,
electrical, health and medical,
automotive and mining sectors globally.
We develop strong and enduring
partnerships with customers,
in particular original equipment
manufacturers (OEMs). We work closely
with them to deliver innovative new
products and improvements, that keep
them ahead of the curve.
We have a diverse and highly skilled
team of just under 800 people, and
manufacturing and distribution facilities
in New Zealand, Australia, China,
Vietnam, the UK, Italy and the US.

The Board considers this an
excellent result in what are clearly
challenging market conditions.
JOHN STROWGER
SKELLERUP ANNUAL REPORT FY24
4

STRONG
FINANCIAL
RETURNS
Underlying
earnings (NPAT
*
)
2%
$
50.0
M
(FY23: $50.9m)
$
330.6
M
(FY23: $333.5m)
Revenue
growth
1%
Operating
cash flow
31%
$
70.8
M
(FY23: $54.1m)
Earnings
(EBIT)
1%
$
72.7
M
(FY23: $71.7m)
DIVERSE &
EXPERIENCED
TEAM
795
(FY23: 807)
People
1%
Dividend
per share
9%
24.0
cps
(FY23: 22.0 cps)
Financial return
ratio (RONA
*
)
4%
21.8
%
(FY23: 22.6%)
* Calculated based
on Underlying
earnings (NPAT),
being NPAT before
abnormal tax item.
Female (51%)
Male (49%)
(FY23: 50% / 50%)
Demographic
(gender)
Underlying earnings
per share (EPS)
2%
25.5
cps
(FY23: 26.0 cps)
Fewer than 2 years (23%)
2 – 10 years (42%)
10 – 20 years (24%)
Greater than 20 years (11%)
(FY23: 28% / 36% / 27% / 9%)
Years’
service for
sta¦
HIGHLIGHTS FY24
5

We are agile, with decision-making
and accountability where it needs
to be – close to our customers,
suppliers and people.
GRAHAM LEAMING
SKELLERUP ANNUAL REPORT FY24
6

DELIVERING A DIVERSE
PRODUCT RANGE
FOR CUSTOMERS
Dairy (25%)
Potable Water & Wastewater
(incl Plumbing) (24%)
Roo…ng & Construction (15%)
Footwear (7%)
Automotive & Machinery (6%)
Exploration & Mining (6%)
Sport & Leisure (5%)
Electrical & Appliances (4%)
Health & Hygiene (4%)
Other (4%)
Revenue by
Application
FY24
ENVIRONMENTAL
IMPACT
3,440
(FY23: 3,866)
*greenhouse gas
GHG*
emissions
(Tonnes CO
2
-e) (Scope 1 and 2)

11%
(favourable)
GHG emissions
/ revenue
(Scope 1 and 2)

10%
(favourable)
10.4
(FY23: 11.6)
CO
2
-e tonnes per $1
million of revenue
over the past year
3,900
Customers
(FY23: over 4,000)
over
1.
Countries
(FY23: 73)
80
sold to
2.
New products
to market
last 24 months
(FY23: 470)
580
over
3.
3
Acquisitions
over last
5 years
4.
HIGHLIGHTS FY24
7

The 2024 ‘nancial year (FY24) delivered a record
EBIT for the Group of $72.7 million, with underlying
NPAT coming in at $50.0 million, just under FY23’s
record of $50.9 million as a consequence of an
increased tax burden and higher interest charges that
all our shareholders will be aware of.
I said last year that records will be increasingly hard
to beat, but the team has again, and the Board
considers this an excellent result in what are clearly
challenging market conditions in New Zealand, and
indeed globally.
I sat down to write this letter to shareholders
separately from Graham’s work in the preparation
of his CEO report which follows but found that we
both independently chose to emphasise the same
theme – change. (As an observation, it is probably
reassuring that there is some alignment of the Board’s
thinking with that of senior management). So, there
will unashamedly be some repetition between what I
say below, and the CEO report, but at least I have the
bene‘t of appearing ‘rst, in this report!
The obvious change for the Group in FY24 was the shift
at the top. After 14 years of exceptional performance
and delivery of year-on-year record results, David
Mair advised of his intention to leave Skellerup in
February 2024. Even writing that sentence now some
months later feels momentous; the Board is, and
shareholders ought to be, extremely grateful to David
for his long and enduring contribution to the Group.
This is a contribution which we are pleased will
continue with David agreeing to remain on the Board,
post his departure as CEO. Having former CEOs on
boards is not a model that works for every company,
but it will work for us. David has an invaluable deep
institutional knowledge of Skellerup, its products,
people and customers, which we were anxious to
retain, while also ensuring his successor can bring
his own perspectives to bear on the business (and
continue the legacy, at the same time).
CHAIR'S
REVIEW
It is a pleasure to once again
report to shareholders on another
successful year for Skellerup.
report to shareholders on another
successful year for Skellerup.
Looking at the depth
of the bench we have
real confidence that
the future of Skellerup
is very bright, in the
medium and long term
SKELLERUP ANNUAL REPORT FY24
8

The inevitability of David's departure was of course
anticipated by the Board, and both he and the Board
have been focussed on ensuring we had a strong
successor, in the form of Graham Leaming. As I said
at the time, Graham has been with us for a number of
years and is a known quantity to the Board – as we are
to him. The transition from David to Graham, while in
a sense momentous, has been genuinely seamless –
the business has not missed a beat. And I am already
appreciating the subtle changes in perspective which
Graham brings to the business.
The ease of transition has been a credit to both David
and Graham.
At the same time, a group of talented and somewhat
younger business leaders are emerging from within
the Group. Looking at the depth of the bench we
have real con‘dence that the future of Skellerup is
very bright, in the medium and long term. Like all
businesses, and irrespective of the quality of our
product offering and market position, our people are
an integral part of the success in everything we do.
I talked in my report last year of some of the supply
chain management issues which we encountered
in FY23 – uneven ordering patterns, and customer
nervousness about the robustness of our supply chain.
This has been the case this year too – indeed, in
some ways it is plausible to view Skellerup as being
a sophisticated logistics company. We are a long way
from some of our key markets, and mitigation of this
takes careful management.
In addition, and whatever one thinks of the merits
of the proposition, the reality is that the world is
becoming more isolationist. I do not need to tell
shareholders about the direction of travel in respect
of tariffs in North America (for a number of years
now, our largest market by a signi‘cant margin).
While most of our products are not subjected to
punitive tariffs on entry into that market, the bottom
line is that our business has sustained incremental
(and increasing due to sales growth) tariffs rising to
$3 million per annum into that market in FY24, and
we have managed to do that without compromising
pro‘tability. But there can be no guarantee that this
situation will continue.
In light of and to mitigate these factors, the Board has
tasked senior management to investigate “in market
manufacture” possibilities; some early initiatives have
already been taken but there is signi‘cant potential
to do a lot more. Graham outlines further work in this
area in his report ("being global means being local").
This will be an important change for the Group over
the next few years. As with anything Skellerup does,
we will be considered in our initiatives in this area.
We will be looking to put a toe (or possibly more) in
the water – but although we will be cautious, the Board
is clear that this is something that needs to be pursued.
Another part of the solution – which will address
perceived supply chain fragility at least, if not the
tariff position – will be to carry higher levels of stock
in market.
Whatever the solution here, it seems inevitable that
a higher level of working capital investment will be
necessary – a systemic reliance on "just in time"
business practices has probably had its day, at least
for now. Airfreighting of our products to North America
(which we do on occasion where customers request it)
is not sustainable looking forward - commercially or
from an ESG perspective.
Being cognisant of the impact our activities have
on the environment, treating our people well and
working with parties who carry the same perspective
is frankly not new and integral to sustainably growing
pro‘tability as Skellerup has for many years. Of
course, this year for the ‘rst time our Annual Report
incorporates climate statements. This has been a
signi‘cant body of work that our team started working
on early and has helped us better understand the risks
and opportunities for Skellerup arising from the impact
of climate change. We discuss this in some detail on
pages 30 to 49 of this report and this will help inform
the investment of our ‘nancial and human capital to
design and manufacture products that our customers
need, and reduce the intensity of greenhouse gas
emissions we consume in their creation.
In Graham’s report, you will ‘nd the customary
(for Skellerup) remarks about customer-focused
developments, and the integration of Skellerup
manufactured components into OEM products
with the consequence enduring and “hard to shift“
relationships.
There is a temptation for the eyes to glaze over when
reading these messages, but they remain as vital and
jealously protected for us today as they were when
David ‘rst conveyed these messages a number of
years ago. These business practices are integral - and
vital - to many things that we do. We do not take our
relationships with customers lightly.
Skellerup’s balance sheet continues to be very
strong – we enjoyed record operating cash §ow in
FY24 of $70.8 million, a staggering 31 per cent up on
last year. As a consequence, net debt is $15.4 million,
43 per cent down on last year.
CHAIR'S REVIEW
9

As I mentioned last year, this has bene‘ts for
shareholders. Your Board has announced a ‘nal dividend
for the Group of 15.5 cents per share, representing a
record total aggregate dividend for FY24 of 24.0 cents
per share. We are distributing to shareholders 94 per
cent of FY24 underlying NPAT – a re§ection of the
con‘dence which we have in our business, its people,
position and prospects.
As I’ve said previously, we would be keen to ‘nd
business acquisition opportunities which work for us
in adjacent industries or markets, but until we do, this
dividend policy will continue.
A number of market commentators have now noticed
the strong historical earnings record which Skellerup
has enjoyed, and the stability of earnings we’ve
experienced. It is true that we do enjoy the stability
which a diversity of product range and market
geographies (supplies and customers) can produce.
However, I am very conscious that for Skellerup, there
are no easy wins, and repeat business is never taken
for granted.
The point here is that it takes considerable effort to
maintain results, let alone to move steadily forward. It
is a testimony to the senior leadership team and all our
people that we continue to move resolutely upstream,
despite the strength of the current against us, which
has obviously not abated in recent years.
As always, I’d like to record the Board's appreciation
to management and all of our people, for their
contributions during the FY24. The continuation of
success is not assumed, but shareholders can be
assured that we will strive for bigger and greater
things again in FY25. I also hope to be able to report
to you in a year’s time on some progress against the
themes touched on above, and in Graham’s report.
Yet, as always, the changes will be incremental – the
quiet, Skellerup way.
In the meantime, I thank you for your continued
interest and support for this business, it’s people and
this Board.
John Strowger
Independent Chair
SKELLERUP ANNUAL REPORT FY24
10

CHAIR'S REVIEW
11

WHAT WE DO
Skellerup designs and manufactures components
and products used in a wide range of everyday
applications that often must meet stringent food,
drinking water, hygiene and safety standards.
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, flow
control systems and
construction
Dairy
Our food-grade
rubberware, filters
and animal hygiene
products are critical
to the safe supply of
dairy products across
the world
within a wide range
of home applications
such as taps, showers,
HVAC, roofing, solar,
kitchen appliances,
plumbing, and more
couplings, and gaskets
are utilised throughout
the transport industry
throughout potable
water and wastewater
applications, flow
control systems and
construction
and animal hygiene
products are critical
to the safe supply of
dairy products across
the world
SKELLERUP ANNUAL REPORT FY24
12

Sport & Leisure
Our products are
utilised in a variety of
recreational settings,
including marine,
snow and field sports
Medical, Health
& Hygiene
Our products are
key to the operation
and performance of
medical, health and
hygiene applications
Specialist
Footwear
Protective rubber
footwear used
throughout farms and
speciality applications,
such as fire, forestry and
electrical distribution
Skellerup is a diverse business,
both in our presence geographically
and in the applications in which our
products are used.
including marine,
snow and field sports
and performance of
medical, health and
hygiene applications
throughout farms and
speciality applications,
such as fire, forestry and
electrical distribution
WHAT WE DO
13

1.
Understanding the
customer need
Working closely with our
customers to understand their
issues, challenges and pain points.
H2Omega Water Pump
Traditionally truck-mounted water
pumps have been expensive to
maintain and unreliable, as they
place a strong load on a truck’s
power infrastructure. Recognising
these issues, we expanded our
vacuum system to integrate a
mechanically driven pump which
eliminates the existing issues,
reducing maintenance costs and
assuring greater reliability
and uptime.
2.
Product development
in partnership with
customers
Collaborate to design solutions
to meet speci‘c and precise
requirements that meet or exceed
performance and conformance
requirements.
Pump Engine Assembly
In October 2023, our customer
launched their new global soap
dispenser. This followed three years
of collaboration and development to
design, manufacture and assemble
the pump assembly critical to the
consistent delivery of foam to users.
OUR PRODUCT
DEVELOPMENT
PROCESS IN ACTION
SKELLERUP ANNUAL REPORT FY24
14

3.
Rapid Prototyping
based on deep material
knowledge
Using in-depth material science
and expertise to combine multiple
materials to rapidly prototype
proof-of-concept for feedback and
iteration of changes.
Thriver
TM
Calf Teat
In September 2024, we will launch
a new calf-feeding product, the
Thriver™ Teat. Rapid prototyping
of shell and valve components
followed by on-farm trials to
validate design iterations enabled
fast feedback to re‘ne and
complete the product ready for
launch in a condensed period.
4.
Understanding critical
tool design and
manufacturing process
Applying our intellectual
property to design tooling to meet
demanding speci‘cations with
knowledge of how it will perform
in the manufacturing process.
Isolation Valve
Intricate tool design and
manufacturing processes enables
our engineered plastic rotor to be
reliably overmoulded with rubber
to deliver our customer a valve
critical to stopping and controlling
the §ow of potable water.
5.
Delivering market-
leading accuracy
and reliability
Scaling manufacturing and
assembly processes for ef‘cient
manufacture, guaranteed
performance and reliability.
Seal Overmould
For over ten years we have been
manufacturing a critical seal
for one of the world's largest
manufacturers of tapware. In FY24
we delivered over eight million
of these seals demonstrating the
accuracy and reliability of our
potable water formulation, tooling
and manufacturing capability for
engineered plastics and rubber
overmoulding.
A key element of our success has been our strong
emphasis on customer-focused development. This means
evaluating the scale of each opportunity and clearly
understanding our customers needs.
potable water formulation, tooling
and manufacturing capability for
engineered plastics and rubber
overmoulding.
OUR PRODUCT DEVELOPMENT PROCESS IN ACTION
15

CEO'S
REVIEW
We are delighted to achieve another record year of
earnings before interest and tax (EBIT) in a period of
contrast and change for Skellerup.
There was a distinct contrast in the ‘rst and second
half of the FY24 results. Higher-than-anticipated
customer destocking caused a lower-than-expected
‘rst half result. This was offset by a strong second half
across the Group, with the aggregate outcome another
record year, generating EBIT of $72.7 million, up $1.0
million on the prior year. Non-recurring, non-cash tax
charges pushed net pro‘t after tax (NPAT) below the
previous year’s record to $46.9 million.
Change most notably came in our leadership. David
Mair stepped down as Chief Executive Of‘cer at
the end of March 2024. His legacy of emphasis on
customer-focused development, continuous operational
improvement and discipline around capital allocation
is deeply embedded in our culture. Having worked
alongside David for 11 years, I am excited to have the
opportunity to follow him and lead our global team.
In addition to the change from David to me, we have
promoted and broadened the responsibility of several
leaders in the Group. Tim Runnalls was promoted
to Chief Financial Of‘cer and Dino Kudrass was
promoted to lead our Agri Division. Guy Meuli has
an expanded role leading our Industrial businesses
in the US and Patrick Crotty’s role was enhanced to
include responsibility for our global Ultralon foam
business. Martin Li’s leadership and expertise were
recognised with his appointment as our CEO in China.
We are already realising bene‘ts from these changes,
better leveraging the strengths we have within our
800-strong team across the world.
Our Business
Skellerup is a diverse business, both in our presence
geographically and in the applications in which our
products are used. This does not re§ect a lack of
focus; in fact, it is a deliberate strategy to exploit our
knowledge and technical capability by designing
and manufacturing products for use in applications
which demand precision, high performance and
conformance. In doing so we also reduce the impact
of economic cycles on our business.
earnings before interest and tax (EBIT) in a period of
contrast and change for Skellerup.
A key to our success has
been our strong emphasis
on customer-focused
development. This means
evaluating the scale of
each opportunity and
clearly understanding our
customers’ needs.
SKELLERUP ANNUAL REPORT FY24
16

We operate a business unit approach which ensures
we are agile, with decision-making and accountability
where it needs to be – close to our customers,
suppliers and people. Our business unit teams work
closely with our development centres, leveraging our
intellectual property to deliver solutions for customers
throughout the world. Linking our businesses is
our deep collective knowledge in the design and
manufacture of engineered elastomer and polymer
products. Overall leadership, strategic direction
and allocation of capital is provided by Tim and me,
supported by our small head of‘ce team
in Auckland.
A key to our success has been our strong emphasis
on customer-focused development. This means
evaluating the scale of each opportunity and clearly
understanding our customers’ needs. We demonstrate
our understanding with designs and prototypes which
meet those needs and then invest our time, matched
by customer commitment, to convert rapidly designed
prototypes into production. An example of this process
is the recent launch of an enhancement to our
vacuum systems used in wastewater applications.
This development is described in more detail in the
case study that accompanies this report.
Another way we create and capture value is by
integrating discrete parts into a product to reduce
complexity, risk and cost for customers. Often these
products combine different materials including
elastomers, engineered plastics and metals.
One example of this is the dispensing pump we now
supply to a leading global hygiene customer, and
another is the soon to be launched Thriver™ Teat for
the dairy industry. Both are described in more detail
in the case studies included in this report.
Our approach to development is consistent – whether
we are designing and making products for original
equipment manufacturing (OEM) customers or
branded products for industrial and consumer
applications. This reduces the risk of projects failing
and results in a better allocation of ‘nancial and
human capital.
Our Results
A strong second half led to a record FY24 EBIT of
$72.7 million, an increase of 1 per cent over the prior
year. This was the eighth successive year of EBIT
growth. The improvement in EBIT was complemented
by record operating cash §ow of $70.8 million, an
increase of 31 per cent over the previous year and due
to continued good management of receivables and a
planned reduction in inventory.
Skellerup is a global business. Over the past seven
years, our revenue has increased by a cumulative
38 per cent. During that time our fastest-growing
market has been North America. In FY24, 36 per
cent of our international revenue was earned from
sales into this market.
Being global means
being local
CASE STUDY
North America (36%)
New Zealand (21%)
Australia (13%)
Europe (13%)
Asia (9%)
UK & Ireland (7%)
Other (1%)
Our spread of sales across the world is serviced by
a global footprint of manufacturing and distribution
facilities. To ensure we meet the future needs of
our customers, be more responsive to changes
in demand, improve procurement, reduce supply
chain cost and risk, and underpin future growth,
we continue to evaluate how we manufacture within
our current facilities and grow manufacturing and
distribution facilities in-market.
Over the past two years, we have invested in the
development of new equipment to standardise
and improve our manufacturing processes for
engineered rubber and plastics products. This
standardisation facilitates future expansion of
capacity in-market and diminishes our reliance on
bespoke equipment and processes. More recently,
we invested in a clean room at our Wisconsin facility
to meet customer demand for liquid silicone rubber
products for non-invasive medical applications.
Soon we will relocate our Chicago distribution
facility into larger premises to meet growth in sales
in roo‘ng, civil and agri applications. Collectively
these investments and decisions give us greater
§exibility to meet ongoing growth and a higher level
of security to ensure continuity of supply to
our customers.
Geographical
Revenue
FY24
facility into larger premises to meet growth in sales
in roo‘ng, civil and agri applications. Collectively
these investments and decisions give us greater
§exibility to meet ongoing growth and a higher level
of security to ensure continuity of supply to
our customers.
CEO'S REVIEW
17

The Industrial Division recorded its fourth successive
record EBIT of $46.9 million in FY24, an increase of
nine per cent over the year before.
Growth in sales into global potable water, wastewater,
hygiene and northern hemisphere roo‘ng applications
drove the improved result for the Industrial Division. We
continue to be an important supplier of gaskets, ‘ttings,
seals and valves used in potable water applications
particularly in the US and Australia. As noted earlier
in this report, we started production of the dispensing
pump assembly for one of the world’s leading suppliers
into the global soap and sanitiser market. Growth
in solar installations in the UK and in warehouse
construction in the US boosted demand for our roo‘ng
products, more than offsetting the impact of lower
residential construction activity in Australia.
Expansion from these applications, along with
operational improvements and better pricing for
lower-margin products, outweighed the impact of
diminished global sales for high-performance marine
foam – the result of customers holding high inventories
as demand slowed across all markets.
The Agri Division recorded FY24 EBIT of $30.7 million,
down 10 per cent on the prior year’s record result.
We are a world leader in the design and manufacture
of essential consumables for the global dairy industry.
During the ‘rst half of FY24, customers in international
markets reduced purchases to lower their inventory
levels. As expected, demand returned to normal levels
in the second half. Investment in new equipment over
the past 18 months aided and was complemented by
process improvements which generated ef‘ciency
gains, most notably at our manufacturing facilities in
Christchurch and China. These improvements require
different resource to implement, support and operate.
Consequently, we incurred restructuring costs of
$0.8 million in the ‘rst half of the year.
The Agri Division also includes our range of rubber
footwear. Our iconic, high-quality Red Band gumboot
is the most recognised product; however, we also
design and manufacture specialist boots for use in
applications requiring speci‘c protection features.
Further details are included in the case study
accompanying this report. In FY24, reasonably
benign weather and tougher economic conditions
caused a reduction in sales in New Zealand, but
sales of specialist products into international markets
increased slightly.
A key capability of Skellerup is to design and
manufacture critical products which are challenging
to manufacture and must meet demanding
performance and/or conformance requirements
for original equipment manufacturing (OEM)
customers. Many of our components or products are
used in potable water and food-grade applications.
For new customers that are looking for highly
technical partners, being a proven part of a supply
chain that is capable of developing product and
processes to an ever-growing and demanding
set of regulations and certi‘cations is a highly
valuable capability for an increasingly wide range
of industries and applications.
In FY24, we started production of a new assembly
for one of the world’s leading suppliers into the
global soap and sanitiser market. What started as
the customer seeking a solution to a performance
issue with an engineered rubber part resulted in
us engineering, manufacturing and assembling
11 plastic and rubber components. This project
also included designing and building assembly
lines to manufacture the entire dispensing pump,
inclusive of the plastic and rubber components, for
their new generation of dispensers. Our customer’s
success was enabled by applying our expertise in
material, tooling and process to understand the root
cause of the problem, then rapidly prototyping and
delivering a ‘nal solution.
This project is an outstanding example of not only
understanding our customer’s needs and applying
expertise but also of successful collaboration.
The initial enquiry through to customer launch
(including navigating restrictions as a result of
the pandemic) spanned three years of global
collaboration between our technical sales and
product development teams, our manufacturing
partner and our customer’s product design and
procurement teams.
Engineered products for
critical applications
CASE STUDY
design and manufacture specialist boots for use in
applications requiring speci‘c protection features.
Further details are included in the case study
the pandemic) spanned three years of global
collaboration between our technical sales and
product development teams, our manufacturing
partner and our customer’s product design and
procurement teams.
SKELLERUP ANNUAL REPORT FY24
18

Environmental
This year, for the ‘rst time, we report under the
New Zealand Climate-related Disclosure Regime.
We acknowledge the impact of climate change and
our responsibility to seek and implement solutions
for our business. You can read in detail about the
risks and opportunities for our business on pages 30
to 49. Opportunities include growing demand for our
products used in potable and waste water, building
and construction applications. These products are,
and will continue to be, important to responding
and adapting to the impacts of climate change.
Risks include possible changes in dairy farming
location and intensity and the carbon generated in
the production of the materials we use.
While mandatory climate reporting is a new
requirement, our investment in capability and capacity
which delivers excellent economic and environmental
outcomes is not new. In current and past years, we
have invested in closed-circuit water systems to
substantially reduce water usage, equipment and
tooling to improve ef‘ciency of manufacture (reduced
product waste and low energy consumption) and
moved some of our operations to more ef‘cient
spaces. The impact of these changes can be seen in
the intensity of our scope 1 and 2 greenhouse gas
emissions which have decreased in each of the last
three years. We will continue to seek opportunities
to reduce not only scope 1 and 2 but also scope 3
emissions which we have reported on for the ‘rst time
this year, while pursuing further growth opportunities
for our business to deliver the many critical products
our customers require.
Vacuum systems are needed for the collection and
discharge of water and liquid waste. Over the past
10 years, the development of our Masport vacuum
systems has greatly improved returns for truck
builders and operators. By enhancing the design
of our system to integrate previously discrete
elements, we have greatly reduced the time
required for truck system builders to install vacuum
systems and have accelerated the speed at which
operators can perform their activities.
During FY24, we completed the design and testing to
integrate a water pump into our vacuum systems used
to service portable toilet applications. A water pump
is necessary for cleaning and re‘lling portable toilets
and traditionally has been powered by an electric
motor linked to the truck’s power infrastructure.
The power demanded on start-up of the water pump
can cause electrical issues that result in a high level
of maintenance cost and downtime. By integrating
the water pump into our vacuum system and having
it mechanically driven by the vacuum pump, we have
eliminated known operating issues for end-users and
provided another gain through simplifying installation
for the truck builder.
We launched this new feature into production in late
June 2024. Our customers and operators are excited
as, simply put, this enables them to make more
money. The launch also reinforces our reputation as
the market leader and innovator for vacuum systems
in North America.
System innovation to
improve returns for
customers (and Skellerup)
CASE STUDY
CEO'S REVIEW
19

During FY24, we have developed a new calf-feeding
product, the Thriver™ Teat. A critical element in
this product is the duckbill valve design inside the
teat shell. We utilised our expertise developed
in designing similar products for the potable
water industry to create a valve which resolves
known performance issues with other products
in the market. The Thriver™ Teat also includes a
new rubber formulation to increase tear strength,
antimicrobial properties to reduce infection risks,
and a softer form to better mimic the natural feel of
a cow’s teat.
We have completed ‘eld trials of the Thriver™
Teat ahead of commercial launch in September
2024. Our teat signi‘cantly improves milk §ow and
eliminates leakage – concerns which are prevalent
in alternative products on the market and which
impact on the growth and health of calves. The
saying goes that the consumer decides – the trials
showed calves quickly gravitating to the Thriver™
Teat in preference to the alternative teats on the trial
feeding system!
Sales of this essential consumable into commercial
dairy feeding systems is the initial focus. We expect
to expand the Thriver™ Teat range in future years,
to incorporate other animal feeding systems and
applications.
Leveraging Group
intellectual property
CASE STUDY
Our Future
Over the past seven years, we have a track record of
delivering consistent earnings growth, with a NPAT
compound annual growth rate of 12 per cent and
achieved excellent returns on the assets we employ.
We have a platform and a pipeline of opportunity
to enable Skellerup to achieve similarly strong
performance in the years ahead.
Our ambition is underpinned by strong cash §ows,
our business model which does not require substantial
capital investment and a very strong balance sheet
which ensures we can react swiftly to opportunities
as they arise.
DividendsCapital Expenditure
Lease Payments
Operating Cash Flow
Acquisitions
80
70
60
50
40
30
20
10
0
FY20FY21FY22FY23FY24
25.3
27.3
35.2
5.5
10.2
41.1
7.7
6.0
0.9
44.1
8.7
6.3
7.1
4.5
3.9
4.7
6.2
48.0
58.8
70.8
54.1
Net Cash Flow
($m)
9.5
43.3
SKELLERUP ANNUAL REPORT FY24
20

We are working to expand our already global
manufacturing capability to make sure we have
the §exibility to overcome the risks posed by the
uncertainty of global geopolitics, more restrictive
trading practices and the impacts of climate change.
Recent and upcoming changes are summarised in the
case study that accompanies this report. Today we
manufacture products in New Zealand, Australia, the
US, Europe, the UK and Asia.
We are con‘dent in the foundation our team has built,
and very grateful to have a talented and energised
group of leaders, specialists and team members
sharing a sustained commitment to ongoing growth
and improvement.
Thanks for your investment in Skellerup. On behalf of
the Skellerup team, we are committed and excited to
have the responsibility, as guardians of your capital to
continue to deliver strong, sustainable returns.
For New Zealanders the common association with
Skellerup is our iconic Red Band gumboot.
The Red Band is a fantastic product – used and
loved by farmers, gardeners, sports watchers and
puddle jumpers for 66 years now. The quality and
durability of this boot have provided the platform for
the development of a rubber footwear range, aimed
at demanding applications across the world.
In 2019 we launched Red Band Safety – the sibling
to the Red Band – with a steel-capped toe, non-slip
sole and a nitrile rubber outsole, resistant to oil,
acid, heat and electrical hazards, for environments
demanding extra protection. In 2021 we launched
the limited-edition Pink Band to help raise
awareness of breast cancer and support Breast
Cancer Foundation New Zealand. Pink Bands will be
available again in October 2024.
Skellerup footwear also includes Quatro, a
gumboot range designed for comfort even in the
most extreme temperatures, as well as specialist
boots for forestry workers and ‘re‘ghters. In 2015,
we launched our Quatro di-electric range which
includes a boot and an overshoe. Every di-electric
boot or overshoe is tested to international standards
to ensure the insulated layers offer electrical
protection over the entire boot. Demand for our
di-electric boots continues to grow throughout the
world, most strongly in North America.
Our reputation for quality and technical
performance in rubber footwear is a great platform
for future growth.
More than gumboots
CASE STUDY
Graham Leaming
Chief Executive Of‘cer
CEO'S REVIEW
21

SKELLERUP’S
PEOPLE
Our almost 800-strong team is based across the
globe in New Zealand, Australia, the USA, China,
the UK and Italy. This geographic spread brings
with it a diverse range of experience, expertise
and ideas we leverage across the Group.
Prioritising health and safety
The safety of our people and others from accidental
harm in our workplaces remains our highest priority.
All our practices and programmes are established
with the objective of keeping our people safe and
free from workplace injury. Every Skellerup site has
an active Health and Safety (H&S) Committee that
meets monthly; each Committee has 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 bene‘t of speci‘c expertise
is shared and that past recommendations have
been implemented effectively. Where these experts
identify a risk requiring immediate recti‘cation, 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.
For our most signi‘cant sites, we have been gradually
implementing ISO 45001 certi‘cation. This provides
an internationally recognised framework for managing
occupational H&S risks. We now have seven of our
global sites certi‘ed, including our two largest in
Christchurch and Jiangsu. We plan to certify three
further sites in FY25.
Oversight of our H&S programmes is provided by the
Board’s Health and Safety Committee who meet four
times each year. In FY24, one of these meetings was
held at our dairy rubberware facility in Christchurch
and another at our Ultralon Foam facility in Auckland;
this provided the opportunity for Board members
to observe activities, meet and interact with our
managers and teams, and assure themselves of our
plans and behaviours. In addition to the oversight
provided by this Committee, a Group H&S Report
is submitted by the CEO and reviewed at every
Board meeting.
Our team works with skill
and tenacity to continue to
improve our business to deliver
high-performing and quality
products for our customers
SKELLERUP ANNUAL REPORT FY24
22

Ultimately, the success of our programmes is
measured by the number of injuries and incidents
that occur. Our total injury rate
1
(TIR) has gradually
reduced over the past three years from 2.43 in FY22 to
1.87 in FY23 and 1.50 in FY24. 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 sixth successive year, we did not record any
serious harm injuries or fatalities.
Working differently to support efficiency
Changing how and where we operate our businesses
has been an important element of Skellerup’s long
history and success. We will continue to adapt and
change to meet the needs of our customers and our
people and to optimise returns for shareholders.
In recent years, we have changed the working
arrangements at some sites to four-day, ten-hour shifts,
which more effectively and ef‘ciently meet the needs
of some of our businesses and provides an additional
clear non-working day for our people. We recognise
and embrace the opportunity to retain our best and
attract new talent by offering differing employment
arrangements including permanent part-time and
hybrid roles. The key criterion is always that the
arrangement is both good for Skellerup and good for
the employee.
Mechanisation and automation of manufacturing
activities and changes in customer demand also
impacts the way we work. We have had no large-scale
redundancies in the Group over the past decade,
although in FY24 we reduced our global team by 12 to
795 people. This re§ects an increase in the resources
we need to design, implement and support new
products and equipment, but a larger reduction in the
number of people needed to operate.
Supporting our people and partners
We operate a global business in a rapidly changing
world. Maintaining our reputation is critical to our
success. Each year, we provide training on the
behaviours that are required as outlined in our Code
of Ethics, as well as in our key policies including
Modern Slavery, Diversity and Information Security.
In FY24 this training was delivered by a video
prepared by the CEO and CFO, with local business
leaders leading subsequent discussion including how
staff respond and report in the event they do witness
or suspect behaviour inconsistent with our Code
and Policies.
1 The total injury rate (TIR) is the total number of serious harm injuries,
lost-time injuries and medically-treated injuries multiplied by 2,000
(the estimated annual hours worked by an individual), divided by the actual
year-to-date hours worked, annualised and expressed as a percentage.
The TIR represents the percentage likelihood of being injured on each site.
Zero TIR is the target that all sites are striving to achieve.
SKELLERUP’S PEOPLE
23

Skellerup’s global footprint includes working
with manufacturing partners and international
suppliers. These partners and suppliers are key to
our successfully delivering critical products to our
customers. Our systems, processes and people are
key to ensuring our standards are met in all respects,
includes seeking to ensure our supply chain is
free of modern slavery. In addition to our Modern
Slavery Policy, we have introduced a Supplier Code
of Conduct. During FY24, we sought and received
con‘rmation of compliance with this Code from our
leading global suppliers and we did not receive
any reports of, nor identify any instances of modern
slavery within our operations.
A diverse workplace
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 for
our management group is shown on page 55 and our
entire team is shown on page 5. Our 795 strong team is
49% male and 51% female.
Re§ecting the longevity of Skellerup is the tenure
of employees. During FY24, we had 23 employees
celebrate working anniversaries of greater than 20
years, bringing the total to 86 employees. The longest
of these at Wigram reached 55 years’ service in
May 2024.
1.5
FY24
1.9
FY23
2.4
FY22
FY21
0.9
FY20
1.3
Total injury rate
(%)
Cyber security
We complete an annual cyber security risk assessment
of all businesses within the Skellerup Group to ensure
our platforms and security is at the required standard
and, where there is a gap, implement a remediation
plan to eliminate that gap. We also provide regular
online cyber security training, supplemented by
periodic internal audits to make sure our control
environment is working effectively and identify where
improvements are needed.
Our team
Our team works with skill and tenacity to continue
to improve our business to deliver high-performing
and quality products for our customers and excellent
returns for shareholders. We are proud of the skill,
commitment and adaptability our people bring and
are excited about the opportunities available to us in
the future.
SKELLERUP ANNUAL REPORT FY24
24

SKELLERUP’S PEOPLE
25

FINANCIAL
COMMENTARY
For the year ended 30 June 2024 (FY24),
earnings before interest and tax (EBIT) grew
one per cent to a record $72.7 million.
This was driven by a nine per cent improvement in
EBIT for our Industrial Division, offset by a 10 per
cent reduction in our Agri Division’s EBIT. Increased
‘nance costs resulting from higher market interest rates
and a rise in the effective tax rate eroded gains, with
normalised net pro‘t after tax (NPAT) of $50.0 million,
down two per cent on the record result in FY23.
Divisional performance in FY24 was mixed. Our
Industrial Division successfully grew revenue and
earnings, with growth in sales of new and enhanced
products into potable and wastewater and health and
hygiene applications more than offsetting a slowdown
in markets for our high-performance marine foam
and a depressed construction market in Australia. Our
Agri Division was impacted by international customers
managing down their overstocked inventories in the ‘rst
half of FY24 and, in the second half, the effect of a later
start to dairy maintenance season in New Zealand.
The growth in EBIT, together with careful management
of working capital, meant that we achieved a record
operating cash §ow of $70.8 million, up 31 per cent on
the prior corresponding period (pcp). Net debt closed
at $15.4 million, down $11.5 million on June 2023.
Our ‘nancial position remains very strong, enabling
a focus on delivering sustainable growth in ‘nancial
returns for our shareholders and opportunities for our
employees. Judicious capital allocation has seen $9.4
million invested during FY24. We have made strategic
investments into identi‘ed growth areas such as
liquid silicone rubber and in-market manufacturing
capabilities and have continued to increase our
investments in product and process development.
FY24 Group Earnings and Dividends
The FY24 audited NPAT of $46.9 million, including the
non-recurring non-cash tax impact of removing tax
depreciation on commercial and industrial buildings
in New Zealand, was down eight per cent on the pcp.
The legislative change to remove tax depreciation
deductions on owned buildings required the recognition
of a deferred tax liability of $3.1 million at 30 June 2024.
Skellerup’s financial position
remains robust due to strong
management of working capital
and critical evaluation of
capital investment decisions
earnings before interest and tax (EBIT) grew
one per cent to a record $72.7 million.
SKELLERUP ANNUAL REPORT FY24
26

FY24
50.0
FY23
50.9
FY22
47.8
FY21
40.2
FY20
29.1
FY19
29.1
FY18
27.3
Underlying Net Profit After Tax
($m)
FY24
24.0
FY23
22.0
FY22
20.5
FY21
17.0
FY20
13.0
FY19
13.0
FY18
11.0
Dividend Declared
(cents per share)
1Gross yield is determined by comparing the FY24 gross distribution
(dividends paid and declared, plus imputation credits at 50% imputation) of
28.7 cents per share, with the closing share price of $3.76 on 30 June 2024.
Industrial Division EBIT
($m)
Industrial Division EBITEBIT %
50
45
40
35
30
25
20
15
10
5
0
25%
20%
15%
10%
5%
0%
FY18FY19FY20FY21FY22FY23FY24
Agri Division EBIT
($m)
Agri Division EBITEBIT %
40
35
30
25
20
15
10
5
0
35%
30%
25%
20%
FY18FY19FY20FY21FY22FY23FY24
Underlying NPAT of $50.0 million was down two
per cent on the pcp. Despite recording a seventh
consecutive record EBIT of $72.7 million, increased
interest rates and a higher effective tax rate for
FY24 meant that the Group’s after-tax earnings fell
marginally below the record result reported in FY23.
A gross dividend pay-out of 24.0 cents per share
(50 per cent imputed) is up nine per cent on the pcp
and re§ects the Group’s ongoing robust ‘nancial
results and cash §ow position.
The FY24 gross dividend pay-out declared is up
2.0 cents per share on the pcp and represents a gross
yield
1
of 7.6 per cent for shareholders.
We segment and measure our performance by two
divisions – Industrial and Agri.
Industrial Division
Our Industrial Division’s sales were another record of
$226.2 million, up four per cent on the pcp. EBIT was
$46.9 million – a fourth consecutive record and up nine
per cent on FY23. Pleasingly, EBIT as a percentage of
sales rose above 20 per cent for the ‘rst time.
Our Industrial Division generates more than 85 per cent
of its revenue from international markets. FY24 sales
revenue growth of four per cent was slower than in
recent years and re§ects challenging market conditions.
Strong revenue growth was realised from increasing
sales of vacuum systems used in wastewater
applications (most notably in the USA) and of products
used in health and hygiene applications, a key market
for the Division. Continued growth in sales of roof
§ashing products in the USA and UK, particularly for
solar energy installations, aided the result. Partially
offsetting these improvements were lower sales into
high-performance marine foam applications where
market weakness and customer overstocking in the USA
and Europe impacted demand. The softer construction
market impacted on sales of roo‘ng and plumbing
products too, especially in Australia.
The revenue growth translated to nine per cent growth
in EBIT in FY24 and a record EBIT for the Industrial
Division of $46.9 million as sales of new and enhanced
products and operational gains helped improve gross
margins from 39 per cent to 41 per cent.
In FY24, we have made investments into key strategic
growth areas including a medical-grade cleanroom
at our liquid silicone rubber manufacturing facility in
the USA, investments into new injection presses and
automation (cobots) and an upgrade of our capabilities
at our product development centre in Auckland.
FINANCIAL COMMENTARY
27

FY24
70.8
FY23
54.1
FY22
43.3
FY21
58.8
FY20
48.0
FY19
28.9
FY18
28.3
Operating Cash Flow
($m)
FY24
21.8
FY23
22.6
FY22
22.6
FY21
20.5
FY20
15.7
FY19
16.3
FY18
15.8
Normalised Return on Net Assets
*
(%)
*For FY24, calculated as underlying NPAT, divided by net assets.
We continue to work closely with customers to apply
our deep expertise in material science to design
and manufacture products that combine multiple
materials such as rubber, engineered plastic and
metals to perform in a wide variety of critical and
high-performance applications. The broad range of
applications we serve is a strength of our Industrial
Division, enabling us to leverage our expertise and not
be singularly exposed to changes in demand from any
one sector.
Agri Division
Sales for our Agri Division were $105.3 million, down 10
per cent on FY23. EBIT was $30.7 million, down 10 per
cent on the record result achieved in the pcp.
Our Agri Division is 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 other speciality
applications including electricity, ‘re and forestry.
As the COVID- and supply-chain-related disruptions
of the preceding two years abated, OEM export
customers reduced inventory levels in the ‘rst half
of FY24, impacting the Agri Division’s revenue. As
expected, the second half saw a return to more normal
ordering patterns but a later drying off of the New
Zealand dairy herd caused a deferral of some sales from
the fourth quarter of FY24 into the ‘rst quarter of FY25.
Sales of our Red Band and speciality footwear products
were strong in the ‘rst half of FY24 but were impacted
by tougher economic and benign weather conditions in
the second half. Collectively, this caused the Division’s
revenue to fall below the record FY23 result.
Productivity gains helped offset the impact of lower
production and tight control of overheads resulted in a
slight improvement in EBIT as a percentage of revenue.
Hedging arrangements somewhat neutralised the
bene‘t of lower spot-currency exchange rates, with the
overall impact being a decrease in EBIT of 10 per cent
against the pcp.
Our future focus for the Agri Division is on the
development of innovative products and new markets
for our dairy rubberware. We continued investments in
internal engineering, product and process development
capability to ensure we retain our technical and
product leadership position and in advanced design
and equipment capacity to improve the ef‘ciency
and adaptability of manufacturing for the future. The
Footwear business remains strong, with a focus on key
customer relationships, product innovation and new
markets expected to deliver earnings growth.
Corporate
Corporate costs remain well contained and were down
$0.4 million on the pcp.
FY24 Financial Position
Skellerup’s ‘nancial position remains robust due
to strong management of working capital and
critical evaluation of capital investment decisions.
Record operating cash §ows and low levels of debt
provide us with the opportunity to invest in growth
and improvement initiatives. Our focus is on the
appropriate allocation of capital (both ‘nancial and
human) to deliver ongoing excellent returns on
shareholders’ funds.
Actions taken to manage our inventory levels have
resulted in a reduction in the value of inventory on
hand over FY24 of $3.3 million. At the close of FY24
inventory stood at $71.6 million, down four per cent on
the $74.9 million held at June 2023. Our teams continue
to navigate challenging markets and supply chains
effectively. New products being launched in future will
necessarily require investments in working capital,
which will be carefully evaluated to minimise risk.
SKELLERUP ANNUAL REPORT FY24
28

Period Ending
FY24
$000
FY23
$000
FY22
$000
FY21
$000
FY20
$000
FY19
$000
FY18
$000
Total Revenue330,578333,537316,829279,515251,389245,792240,408
EBIT72,68871,65966,76056,36142,48641,79839,781
Finance Costs4,9394,5942,2492,0812,5821,7851,863
Share of net pro‘t of associates-(78)(224)(35)(73)23-
Pro‘t before tax67,74966,98764,28754,24539,83140,03637,918
Tax before abnormal tax item17,73516,04616,47414,07010,76710,97310,641
Net pro‘t before abnormal tax item50,01450,94147,81340,17529,06429,06327,277
Income tax expense relating to
building depreciation
3,121------
Net pro‘t after tax46,89350,94147,81340,17529,06429,06327,277
EPS before abnormal tax item (cents)25.526.024.520.614.915.014.1
EPS (cents)23.926.024.520.614.915.014.1
Dividend per share (cents)24.022.020.517.013.013.011.0
Operating cash §ow70,81054,11443,32258,79648,00628,92028,345
Net debt15,37126,83025,2048,73628,51336,57630,719
Total assets335,127342,977336,644284,874283,642257,059252,025
Total liabilities105,634117,541125,43688,72599,07978,66779,739
Net assets229,493225,436211,208196,149184,563178,392172,286
Normalised return on net assets
1
21.8%22.6%22.6%20.5%15.7%16.3%15.8%
Return on net assets
2
20.4%22.6%22.6%20.5%15.7%16.3%15.8%
Net Tangible Assets per Share (cents)84.081.275.970.065.365.164.7
Global Team795807869813798796780
1Calculated as Net Pro…t before abnormal tax item divided by Net Assets
2 Calculated as Earnings (NPAT) divided by Net Assets
Receivables are managed with great care as well.
Trade receivables closed at $51.2 million on 30 June
2024, up four per cent on the pcp. This increase was
largely a result of the timing of sales, with receivables
tracking below the prior year for the majority of FY24.
A strong focus on collections, fairer payment terms,
simpler electronic payment options for customers and
discount structures for prompt payment all contributed
to solid collections. At the close of FY24, receivables
represented 48 days of sales outstanding, in line with
the pcp.
This working capital discipline and lower cash tax
payments resulted in a record operating cash §ow
of $70.8 million in FY24, up 31 per cent on the pcp.
The strong operating cash §ow funded payments for
right-of-use asset lease obligations of $6.3 million,
capital expenditure of $9.4 million, dividends to
shareholders of $44.1 million and repayments of
borrowings of $10.3 million.
Net debt remains low at $15.4 million, $11.5 million
below pcp and represents just ‘ve per cent of total
assets, enabling Skellerup to continue investing towards
pro‘table growth for the future.
Seven-Year Financial Review
The table below shows the ‘nancial results and position
of the Skellerup Group for each of the last seven years.
Over this period, revenue has grown by 38 per cent,
underlying NPAT has increased by 83 per cent and
our operating cash §ow is 150 per cent higher than
that reported in FY18. Normalised return on net assets
has increased by 38 per cent. The sustained earnings
growth has enabled a rise in the gross dividend pay-out
(excluding imputation credits) of 118 per cent over the
same period.
FINANCIAL COMMENTARY
29

GROUP CLIMATE
STATEMENTS
We recognise that the effects of climate change will impact where and how
Skellerup will invest for future growth and how we will ensure the safety of
our people and operations to continue to deliver to our customers.
We also understand that the global transition to a low-
emissions, climate-resilient future will present both
risks and opportunities for the Group over the short,
medium and long term. A detailed understanding
of the current and future impacts of climate change
is necessary to ensure appropriate adaptation to, or
acceleration of, strategies to appropriately mitigate
climate risks and capitalise on the opportunities
arising from climate change.
The External Reporting Board (XRB) has established
a mandatory Climate-related Disclosure regime
in New Zealand through the issue of the Aotearoa
New Zealand Climate Standards (NZ CS). Skellerup,
as an NZX-listed entity, is classi‘ed as a climate
reporting entity and is required to report under the
mandatory climate-related disclosures framework in
Part 7A of the Financial Markets Conduct Act 2013,
which came into effect on 01 January 2023.
The NZ CS require reporting under the four pillars
described below:
GovernanceThe 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.
StrategyHow climate change is currently
impacting Skellerup and how it might do
so in the future. This includes scenario
analysis undertaken by Skellerup,
identi‘ed climate-related risks and
opportunities, anticipated impacts, and
how Skellerup will position itself as the
global economy transitions towards a
low-emissions, climate-resilient future.
Risk ManagementHow Skellerup identi‘es, assesses and
manages climate-related risks and how
these processes are integrated into
existing risk management processes
within the Group.
Metrics and TargetsDisclosures of information on how
climate-related risks and opportunities
are measured and managed.
The global transition
to a low-emissions,
climate-resilient future
will present both risks
and opportunities for
the Group
DEKS’ SolarDEK
TM
TitleFlash® is used
in solar applications across the globe
SKELLERUP ANNUAL REPORT FY24
30

Adoption Provision 1:
Current Financial
Impacts
Exemption from the requirements to
disclose the current ‘nancial impacts of
its physical and transition impacts and
(if relevant) explain why quantitative
information cannot be disclosed.
Adoption Provision 2:
Anticipated
Financial Impacts
Exemption from the requirements
to disclose the anticipated ‘nancial
impacts of climate-related risks and
opportunities, a description of the time
horizons over which the ‘nancial impacts
could reasonably be expected to occur
and (if relevant) an explanation as to
why quantitative information cannot
be disclosed.
Adoption Provision 3:
Transition Planning
Exemption from the requirements to
disclose the transition plan aspects of
the Group’s strategy, including how
its business model and strategy might
change to address its climate-related
risks and opportunities, and how the
transition plan aspects of its strategy are
aligned with its internal capital allocation
processes. Skellerup has described the
Group’s progress towards developing the
transition plan aspects of its strategy on
page 43.
Adoption Provision 4:
Scope 3 GHG
Emissions
Exemption from the requirements
to disclose all scope 3 greenhouse
gas (GHG) emissions sources, or a
selected subset of the Group’s scope
3 GHG emissions sources. Skellerup
has disclosed a subset of our scope 3
GHG emissions sources, electing not to
disclose immaterial sources as set out
on page 48.
Adoption Provision 6:
Comparatives for
Metrics
Exemption from the requirements to
disclose comparative information for
each metric disclosed in the current
reporting period. Skellerup has provided
comparative data for disclosed scope
1 and 2 GHG emissions but not for
other metrics.
Adoption Provision 7:
Analysis of Trends
Exemption from the requirements to
disclose an analysis of the main trends
evident from a comparison of each metric
from previous reporting periods to the
current reporting period. Skellerup
has disclosed trends for our scope 1
and 2 GHG emissions but not for other
disclosed metrics.
Statement of Compliance
FY24 is Skellerup’s ‘rst reporting period under
the Climate-related Disclosures regime. These
disclosures are prepared in compliance with the NZ
CS. Where necessary, allowable adoption provisions
have been applied to ensure compliance with the NZ
CS. The Group (as de‘ned in the Glossary on page
48) has relied on the following adoption provisions in
preparing its ‘rst climate-related disclosures:
Disclaimer
Climate change is an evolving challenge, with high
levels of uncertainty. This report sets out Skellerup’s
approach to scenario analysis, our understanding
of and response to our climate-related risks and
opportunities, and our current and anticipated impacts
of climate change. This re§ects Skellerup’s current
understanding as at 15 August 2024.
These climate-related disclosures contain forward-
looking statements, including climate-related
scenarios, targets, assumptions, projections, forecasts,
statements of Skellerup’s future intentions, estimates
and judgements. These statements are based on
current expectations, estimates and assumptions and
are therefore subject to signi‘cant uncertainties. The
risks and opportunities described here might not
eventuate or might be more or less signi‘cant than
anticipated. Many factors could cause Skellerup’s
actual results, performance or achievement of
climate-related metrics (including targets) to differ
materially from those described, including economic
and technological viability, as well as climatic,
government, consumer, supplier and market factors
outside of our control. We have sought to ensure there
is a reasonable basis for forward-looking statements
and are committed to progressing our response to
climate-related risks and opportunities over time;
however, our assessment is necessarily constrained
by the novel and developing nature of this subject
matter. We therefore caution reliance on aspects of
this report that are necessarily less reliable than other
aspects of our annual reporting. We remain committed
to progressing our response to climate-related
risks and opportunities over time, and to report our
progress each year.
To the maximum extent permitted by law, Skellerup
and our subsidiaries, directors, of‘cers, employees
and contractors shall not be liable for any loss or
damage arising in any way from or in connection with
any information provided or omitted as part of these
climate-related disclosures.
Nothing in this report should be interpreted as capital
growth, earnings or any other legal, ‘nancial, tax or
other advice or guidance.
Governance
The Group operates as a global designer,
manufacturer and distributor of precision-engineered
products. Skellerup has manufacturing and
distribution facilities in six countries spanning four
continents. The Group operates as a collection of
closely aligned business units, with management and
resources close to our customers and end markets.
The Group supplies customers in a wide range of end
markets, focussing on delivering innovative, new and
enhanced products.
GROUP CLIMATE STATEMENTS
31

Management
The CEO is responsible for the Group's overall strategy and day-to-day management
(including climate-related risks and opportunities as appropriate).
The CEO reports to the Board and/or Board Committees as required, including a formal risk report to
the Board (including climate risks).
The CFO leads the Group’s ESG strategy and development (together with the CEO) and is responsible
for the management of operational climate-related matters, implementation of strategy to manage
climate-related risks and implementation of workstreams arising from climate-related opportunities.
The CFO reports to the CEO regularly, as required, on climate-related matters.
Board of Directors
Ultimate responsibility for response to climate change
Sustainability Committee
The Sustainability Committee receives reporting
from the CEO and CFO on climate matters at each of
its quarterly meetingsand did so at each quarterly
meeting in FY24
Audit Committee
The Audit Committee receives reporting from
the CEO and CFO on climate matters at each of
its quarterly meetings, as required, including an
annual review of CRD
CLIMATE CHANGE OVERSIGHT AND MANAGEMENT
Skellerup supplies over 3,900 customers globally
across 80 countries. The Group operates across
18 locations, representing a combination of
manufacturing and distribution sites and has a
signi‘cant contract manufacturing partner in Vietnam.
Skellerup’s Board of Directors has ultimate
responsibility for the Group’s approach to climate
change, including the approach to climate-related
risks and opportunities affecting the Group.
Membership of each of the Board committees is
summarised on page 57.
Responsibilities for the oversight and management
of the Group’s approach to climate change are
summarised below:
Governance process and frequency
The Board oversees and reviews Skellerup’s
sustainability framework and strategy, including
climate-related risks and opportunities. Climate-
related risks and opportunities are considered by the
Board when evaluating broader strategy, including
as part of Skellerup's annual business planning cycle.
Risk is a regular subject of discussions at Board
meetings. Formal updates and reporting on the
Group’s risk assessment are presented to the Board
approximately every six months. Where any new
or changed climate risks are identi‘ed outside of
the annual review cycle, these will be reviewed,
considered and reported to the Board and the
Sustainability Committee, as appropriate.
SKELLERUP ANNUAL REPORT FY24
32

Key risks (including any material climate-related risks)
are monitored by the Board and are subject to formal
review at least twice per year. Risks are identi‘ed and
reported by management to the Board.
The Board has delegated responsibility for
sustainability-related (including climate) strategy,
policies, initiatives, measurement and reporting to the
Board Sustainability Committee, including oversight
of identifying, assessing, monitoring and managing
climate-related risks and opportunities. In future, the
Sustainability Committee will have a role in considering,
approving and recommending targets to the Board,
including GHG emissions reduction targets. The
Sustainability Committee formally reviews climate-
change scenarios and climate-related risks and
opportunities at least annually.
The Sustainability Committee meets at least four times
per year. All Sustainability Committee proceedings
are reported back to the Board.
The Board is assisted by the Audit Committee with
discharging its responsibilities relative to external
reporting (including climate-related disclosures),
the risk management framework and monitoring
compliance with that framework, regulatory
conformance and other accounting requirements.
The Audit Committee meets a minimum of four times
each year and reports the proceedings of each of its
meetings to the full Board. The Chair of the Committee
presents an annual report to the Board summarising
the Committee’s activities throughout the year and any
relevant signi‘cant results and ‘ndings.
Board skillset
The Board aims to ensure appropriate skills and
capabilities are available to provide oversight of
climate-related risks and opportunities through
the maintenance of a skills matrix, which includes
competencies around environmental, social and
governance (ESG) strategies (refer to pages 50 to 51).
To support the Board and help to ensure that the right
skills and experience are available, Skellerup’s Board
undertook a dedicated training session on climate-
related disclosures in FY24 facilitated by external
advisors, building on broader development Skellerup
directors undertake through their own continuing
professional development.
Management’s role
Management is responsible for monitoring
sustainability and climate-related risks and ensuring
these are integrated into the Group's risk management
framework, as well as progressing climate-related
opportunities.
The CEO is responsible for the Group's overall
strategy and day-to-day management of the Group,
including risk management processes (which
incorporate climate-related risks and opportunities).
The CFO leads the Group’s ESG strategy and
development in conjunction with the CEO, and is
responsible for the day-to-day management of:
•ESG data and analysis;
•Sustainability initiatives
(in conjunction with the CEO); and
•ESG reporting
(including climate-related reporting).
In FY24, the CFO, with the support of external advisers,
led wider engagement with business unit leaders
across the Group to identify, assess and manage
climate-related risks and opportunities. Where material,
climate-related risks are incorporated into the Group-
wide risk management process, which is overseen by
the Board of Directors.
The CEO and CFO attend each meeting of the Audit
Committee and Sustainability Committee and maintain
direct lines of communication with the Committee
Chairs.
In FY24, the CEO and CFO attended each of the
quarterly meetings of the Sustainability Committee
to discuss the management of climate-related risks,
Skellerup’s climate-related risk assessments, and to
prepare for climate-related disclosures. In FY24, the
Audit Committee discussed climate-related risk at
two of its quarterly meetings, attended by the CEO
and CFO.
The CFO is supported by the Group Financial
Controller and by subsidiary managers in the
preparation of annual climate-related disclosures and
collation and reporting of GHG emissions.
Climate-related performance metrics are not
incorporated into remuneration policies.
Strategy
Current climate-related impacts
We acknowledge that climate change is already
having an impact on the markets in which the Group
operates. As an international business with operations
on four continents and customers in 80 countries, the
Group has been exposed to various physical impacts
of climate change during FY24. The Group has not
experienced any material impacts from climate
change during FY24. Regular reporting of physical
impacts of climate change is provided by Divisional,
Group and business unit leaders.
GROUP CLIMATE STATEMENTS
33

The current impacts on the Group of the transition
to a lower-emission and climate-resilient economy
have been limited. Additional cost associated
with compliance with the mandatory disclosure
requirements has been incurred including the
employment of new staff with relevant skills and
experience, engaging external experts and the
increased cost of assurance. The ‘nancial impact of
these transition impacts has not been material in FY24.
The Group has noted an increase in the number
of requests from customers around reporting ESG
initiatives and performance. More and more, we are
required to make commitments to suppliers, provide
information to third-party platforms and agree to
comply with supplier codes of conduct. Although this
has had no material impact on the Group in FY24,
non-compliance with progressively more stringent
customer requirements might present a risk in future.
This is captured within the Group’s transition risks on
pages 40 to 41.
Scenario Analysis
Scenario analysis undertaken
The Group has engaged in a stand-alone process
of climate-related scenario analysis to support our
assessment of the potential physical and transitional
impacts of climate change on business, strategy and
planning. The Sustainability Committee provides
oversight of the scenario analysis process by
reviewing and giving feedback on the scenarios and
associated risks and opportunities. The most recent
scenario analysis was approved by the Sustainability
Committee on 08 December 2023.
Due to the diverse nature of our operations and the
varying markets served by the Group, Skellerup has
not been involved in any industry- or sector-level
scenario development. Accordingly, our scenario
analysis is based on publicly available scenarios
including the Shared Socioeconomic Pathways (SSPs)
developed as part of the Intergovernmental Panel on
Climate Change (IPCC) Sixth Assessment Report,
with input from scenarios developed by the Network
for Greening the Financial System (NGFS) and the
International Energy Agency (IEA) public scenarios.
The IPCC is a body of the United Nations. Its remit is
to advance scienti‘c 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 NGFS is a network of 114 central banks and
‘nancial supervisors that aims to accelerate
the scaling up of green ‘nance and develop
recommendations for central banks’ role in climate
change. The 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.
Given the nature of the Group, its extensive and broad
value chain and end markets, the approach taken
was to utilise and adapt global reference scenarios
by developing foundational scenario narratives,
augmenting these scenarios through understanding
the Group’s contextual environment and challenging
these against the value chain drivers mapped for
each of the Group’s key product applications. Our
chosen scenarios were foundationally based on the
IPCC reference scenarios. Further information on our
scenario development process is included below.
The NZ CS require a minimum of three climate-
related scenarios to be considered including a 1.5°C
scenario and a scenario greater than 3.0°C. The
three scenarios developed by Skellerup are a 1.5°C
scenario (“Aggressive Transition Ambition”), a 2.5°C
scenario (“Middle of the Road”) and a 4.0°C scenario
(“Hothouse”).
The Aggressive Transition Ambition and Hothouse
scenarios are in line with the mandated scenarios
contained in the NZ CS. They represent a transitional
risk-weighted scenario (Aggressive Transition
Ambition) and an extreme physical risk-weighted
scenario (Hothouse). The Middle of the Road scenario
ful‘ls the requirement for a third climate-related
scenario and presents a middle ground where
transition and physical risks are both elevated.
All three scenarios present plausible, challenging
descriptions of how the future might unfold, both in
New Zealand and in the global markets in which the
Group operates. However, each scenario presents a
different set of challenges, issues and opportunities
that the Group would have to navigate.
Scenario development process
1.Initial scenario narratives were developed utilising
the SSPs, IEA and NGFS public scenarios. These
scenarios were used to identify and agree on the
macro-de‘ning elements comprising each of the
three selected scenarios.
2.Drivers relating to Skellerup’s contextual
environment were then developed, considering
those drivers relating to policy and legal, market,
technology and consumer sentiment in the Group’s
key markets.
3.Initial scenarios were re‘ned through workshops
involving senior management and subject-matter
experts covering the Group’s ‘ve most material
(key) product applications (refer to page 44).
4.A ‘nal review of scenarios was completed by
management to ensure internal consistency before
presentation to and ‘nal approval of the scenarios by
the Sustainability Committee.
SKELLERUP ANNUAL REPORT FY24
34

CLIMATE-RELATED SCENARIO OVERVIEW
Aggressive
Transition Ambition
Middle of the RoadHothouse
In 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.
In 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
2.0°C and 3.0°C by the end of
the century.
Global emissions continue
to grow unabated largely
due to a failure of principal
emissions-reduction policies
in key developed, high-
emitting countries. This leads
to warming levels that reach
2.0°C by 2050, and continue
to increase steeply thereafter,
reaching 4.0°C by the end of
the century. Climate ‘chaos’
enters mainstream discourse,
across all sectors and
communities.
Policy
Ambition
1.5°C2.5°C4.0°C
Pathways
SSP1
RCP2.6
SSP2
RCP4.5
SSP3
RCP7.0
Policy
Immediate, strong and global
policy uniformity, carbon
prices increasing until 2035
Delayed and inconsistent
policy adoption, increasing
carbon prices until 2035 and
beyond
Policy focus shifts to
adaptation, supply chain
and resource security and
managing disruptions, low
carbon prices
Social
Behaviour
Change
Customers and markets
demand action, shift to
localised supply chains
Response varies by market,
increasing focus on product
and supply chain security
Sentiment focused on product
and supply chain resilience
Technology
Accelerated technological
development in new low-
carbon technology
Development varies across
sectors and geographies
Slow pace of change
Financial
Markets
Economic growth, signi‘cant
capital §ows to low-carbon
sectors
Access to ‘nance is limited
and cost-restrictive
Insurance is unavailable,
capital markets constrained
Population
Growth
LowModerateHigh
Physical Risk
Severity
Low - ModerateModerate - HighHigh - Extreme
Transition
Risk Severity
Moderate - HighHighLow
An overview of each of our climate-related scenarios
1
is set out below.
1 These scenarios did not expressly consider carbon sequestration from afforestation and nature-based solutions or technology assumptions such as negative
emissions technology.
GROUP CLIMATE STATEMENTS
35

Planned future scenario review
Skellerup will continue to re‘ne our identi‘ed climate-
related scenarios during FY25, which will include a
comprehensive review and approval process. We will
monitor market and sector scenario development to
augment our understanding on an ongoing basis.
Climate-Related Risks and Opportunities
Physical Risk Exposure and Analysis
Physical risks are de‘ned in NZ CS 1 as those risks
related to the physical impacts of climate change.
Physical risks emanating from climate change can be
event-driven (acute), such as increased severity of
extreme weather events, or can relate to longer-term
shifts (chronic) in precipitation and temperature and
increased variability of weather patterns, such as sea-
level rise.
Skellerup has manufacturing and distribution sites in
locations across the globe. Skellerup considers that the
geographical diversity of its site locations contributes
to the Group’s resilience because no singular climatic
event is reasonably expected to impact more than one
of the Group’s key sites. In FY24, detailed geospatial
exposure assessments
2
were carried out by a
specialist in physical climate risk modelling on our six
key manufacturing sites (as outlined below), in relation
to our core product applications. The assessments
covered baseline (2005), short-term (2030), medium-
term (2050) and long-term (2100) timeframes.
The sites identi‘ed, as listed below, 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;
•Baocheng, Haimen City, Jiangsu Province, PR China;
•Ho Chi Minh City, Vietnam;
•Auckland, New Zealand (two sites); and
•Lincoln, Nebraska, United States of America.
Key climate-related hazards have been identi‘ed,
evaluated and rated, to the extent relevant for each
site. These hazards are evaluated on the baseline,
short-, medium- and long-term time horizons and for
the three climate-related scenarios outlined on page
35. We have reviewed the risk scores arising from
these assessments to determine the requirement and
timing of mitigation plans and actions. Skellerup is
still working to integrate our consideration of climate-
related risks and opportunities, alongside broader
sustainability considerations, into our internal capital
deployment processes.
We anticipate such consideration will form part of
annual business planning processes and will be
evaluated as part of internal capital expenditure
approval processes.
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 potential material transition risks affecting
the Group, a qualitative assessment was performed
against the three scenarios outlined on page 35 to
identify possible climate hazards. Given the nature
of the transition risk assessments driven by the
scenarios and for simplicity, it has been assumed for
our assessment this year that exposure to an identi‘ed
transition risk will be a certainty (as opposed to
physical risks, where different assets are exposed to
different physical risks).
Risk and Opportunity Identification
and Assessment
Drawing on the results of the physical and transition
exposure assessments, we have de‘ned climate-
related risks and opportunities for each of our key
product applications (as de‘ned on page 44). Risks
are then assessed across our three climate scenarios
for the short-term (2030), medium-term (2050) and
long-term (2100) time horizons using the Group’s
existing risk management framework and based on
consequence and vulnerability:
•In the context of climate change, we have considered
vulnerability to be the predisposition to be
adversely affected by a climate hazard or transition
element. To determine the level of vulnerability, we
consider the sensitivity and the adaptive capacity
of each element, such as inputs, processes, outputs,
markets and customers, when exposed to a hazard
or transition element. Sensitivity can be in§uenced
by age, condition, material and design. Adaptive
capacity is how ef‘ciently an at-risk element can
adapt or be adapted when exposed to a climate
hazard or transition element. Adaptive capacity can
be in§uenced 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 Group’s objectives. This is assessed
based on the severity of potential ‘nancial, health
and safety, staff, legislative and reputational impacts.
2 Reports include environmental, chronic (slow onset) and acute (extreme) climatic variables. Future climate change scenarios are modelled in accordance
with the Group’s chosen baseline climate-change scenarios (i.e. SSP1-RCP2.6, SSP2-RCP4.5 and SSP3-RCP7.0).
SKELLERUP ANNUAL REPORT FY24
36

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
The residual risk rating is based on consequence and
vulnerability as outlined within the matrix above:
The tables on pages 38 to 41 set out the material
3
climate-related risks and opportunities identi‘ed
by the Group. To determine the potential impact,
these risks and opportunities were assessed against
the internal materiality thresholds applied by the
Group in its Group-wide risk management process.
Immaterial risks and opportunities, being those with a
present risk rating of low (or very low), have not been
disclosed unless our assessments have indicated
a high or extreme impact of physical or transition
risks in future. Material and immaterial risks and
opportunities will continue to be monitored and will be
included in disclosures in future re§ecting changes in
materiality and risk rating. The time horizons used to
assess climate-related risks and opportunities are:
PeriodDates
Short-term0 to 5 years2024 to 2030
Medium-term5 to 25 years2030 to 2050
Long-term25 to 75 years2050 to 2100
The short-term time horizon aligns well with the Group’s
internal planning cycle of three years. Medium- and
long-term horizons are not aligned to strategic planning
and capital deployment planning timeframes, but more
broadly in line with the Group’s anticipated timeframes
for meeting climate-change targets.
3NZ CS 3 de…nes information as material if omitting, misstating or obscuring it could reasonably be expected to in§uence decisions that primary users make on
the basis of an entity’s climate-related disclosures.
GROUP CLIMATE STATEMENTS
37

Risk Ratings and
Anticipated Impacts
For Climate-related
Risks Across
Identified Scenarios
LEGEND
Risk Description and
Anticipated Impacts
Climate
Hazard
Aggressive
Transition
Ambition
Middle
of the Road
HothouseMitigations Currently
in Place
(SSP1-RCP2.6)(SSP2-RCP4.5)(SSP3-RCP7.0)
Extreme weather can
disrupt the operations
of key suppliers either
through physical impacts
or result from power supply
interruption, causing an
interruption of the supply
of key raw materials and
ingredients.
Revenue decrease, cost
increase
Drought,
Floods,
Temperature,
Humidity,
Wind
Multiple suppliers for
key raw materials and
components, sourced from
different geographies.
Multiple formulations for
key compounds. Skellerup
has not experienced
climate-related impacts on
the availability of key raw
materials to date, however,
supply may become
constrained in future.
Heat and humidity can
disrupt manufacturing
operations either through
physical impacts on the
production process, power
outages or impacts on
the health and safety of
our people.
Revenue decrease, cost
increase
Temperature,
Humidity
Manufacturing sites are
in diverse locations.
Skellerup’s physical
risk modelling shows
resilience in the location
of key manufacturing sites.
Skellerup is undertaking
ongoing investigations of
alternative power sources.
The impacts of heat and
humidity on staff working
in the Group’s facilities
are currently managed
through the use of cooling
equipment and by changing
shift patterns.
As a global business, the
disruptions that extreme
weather causes to supply
chains (road, rail, sea) may
be signi‘cant, impacting
both supplies of raw
materials and ingredients
and delivery of products to
end markets.
Revenue decrease, cost
increase
Floods,
Temperature,
Wind
Manufacturing sites are in
diverse locations and resilient
geographies; suppliers and
customers are geographically
spread. Engagement in initial
in-market manufacturing
capabilities with plans to
further develop which may
alleviate some of this risk.
Physical Risks (Acute and Chronic)
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
Short-term
MT
Medium-term
LT
Long-term
Time Horizon:
Very Low Low Moderate High Extreme
Risk Rating:
4,5
4Risk ratings re§ect the Group’s assessment of both consequence and vulnerability of the speci…c risk.
5No climate risks presented in the table above have an extreme risk rating (noting Group risks with risk ratings of low and very low are considered immaterial
and not presented).
SKELLERUP ANNUAL REPORT FY24
38

Risk Description and
Anticipated Impacts
Climate
Hazard
Aggressive
Transition
Ambition
Middle
of the Road
HothouseMitigations Currently
in Place
(SSP1-RCP2.6)(SSP2-RCP4.5)(SSP3-RCP7.0)
A third of Group revenue
is derived from products
sold into agricultural
applications. Extreme
weather may result in a
shift of farming location
and change to the method
(e.g. pastoral to barn) and in
some cases increased costs
will impact the viability of
some farming operations
altogether, impacting on
demand for products.
Revenue decrease
Drought,
Floods,
Temperature
The Group has no control
over the location of farming
activities or the methods
applied. The key driver
of demand for products is
milk production; therefore,
sales are location (and
to some extent method)
agnostic. However, changes
in the viability of farming
operations may impact
overall milk volume and
consequently the volume
of products sold. Skellerup
has a presence in most
major dairy markets which
helps to mitigate the risk of
reduction in milk production
in any one market.
Extreme weather
(particularly §ooding and
sea-level rise) may impact
customer and end-market
operations, with resultant
impacts on the demand for
the Group’s products.
Revenue decrease
Floods, Sea
Level Rise
The Group has no control
over the location of
customer operations.
However, the Group sells
to a large number of
customers, none of which
represent a material portion
of Group revenue. As a
large proportion of Group
revenue is derived from
products used in the supply
of fresh milk and water,
Skellerup anticipates end
markets will continue to
adapt to meet increasing
world demand for fresh
water and dairy protein.
Physical Risks (Acute and Chronic) (continued)
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
GROUP CLIMATE STATEMENTS
39

Risk Description and
Anticipated Impacts
Transition
Risk Element
Aggressive
Transition
Middle
of the Road
HothouseMitigations Currently
in Place
(SSP1-RCP2.6)(SSP2-RCP4.5)(SSP3-RCP7.0)
Policy changes such as
tariffs, carbon prices
and carbon import duties
to favour domestically
produced products,
creating additional cost for
the Group and potential
exclusion from certain end
international markets.
Revenue decrease, cost
increase
Policy and
legal
Actions are already being
taken to trial and prove
in-market manufacturing
capabilities. Skellerup is
expanding distribution
activities closer to end
customers and markets
and will need to ensure
ongoing customer
engagement to understand
future requirements and
concerns.
Risk that emissions pricing
and associated costs drive
up freight costs, which may
not be fully recoverable
due to the competitive
environment.
Cost increase
Policy and
legal
Global dairy industry
shrinks due to emission
price increases and
shrinkage of land suitable
to farming as substitution
for lower-carbon industries
(e.g. cropping, forestry etc.)
and the move to alternative
‘greener’ sources of protein.
Revenue decrease
Policy
and legal
High global demand for
protein means Skellerup
expects demand will
remain but may shift to
economies or methods of
production with higher
environmental performance
standards. Customer
engagement continues
to enable understanding
and implementation of
development requirements.
Risk of restricted access to
capital if the business does
not decarbonise relative
to others. Implications
on demand if the Group
and its value chain fail to
decarbonise (i.e. customer
demand reduced due to own
challenges decarbonising).
Debt may become more
expensive as a result of
a perception of climate
inaction.
Revenue decrease, cost
increase
Policy
and legal
Comprehensive annual
climate-related reporting
is prepared. Skellerup
expects to maintain
continued engagement
with funding providers
(investors, analysts
and banks) around
requirements and
expectations and to evaluate
operating and distribution
methods and implement
change where necessary.
Transition Risks
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
SKELLERUP ANNUAL REPORT FY24
40

Risk Description and
Anticipated Impacts
Climate
Hazard
Aggressive
Transition
Middle
of the Road
HothouseMitigations Currently
in Place
(SSP1-RCP2.6)(SSP2-RCP4.5)(SSP3-RCP7.0)
Coal and other fossil fuels
are decommissioned
so power becomes
unreliable, intermittent or
more expensive in some
markets. This could impact
production and raise costs
either through delays or
needing to invest in
back-up power.
Revenue decrease,
cost increase
Policy
and legal,
technology
Installation of solar has
already been completed
at one of the Group’s
facilities in New Zealand.
Consideration of the
commercial viability
of other installations is
ongoing. As appropriate
in future, Skellerup may
consider alternative
sources of power and the
appropriateness of the
location of manufacturing
facilities.
Risk of higher costs
as a result of the need
to implement product
take-back or recycling
programmes.
Cost increase
Policy
and legal,
technology,
market
Development of practices
to support sustainable
or recyclable materials
being used in products
is underway.
Customer scrutiny and
requirements for low-
carbon products drive
relocation of activities to
manufacturing in the market
to reduce transport miles
(manufacture closer to
customers and markets).
Cost increase
Market,
reputation
Skellerup intends to
continue to work with
customers to understand
market and end-user
requirements. Skellerup is
considering development
of lower-emitting products,
and implementation of
in-market manufacturing
which will help to limit
transport emissions.
Greater scrutiny on the
source of input elements to
production (e.g. oil-based
polymers), and under the
current structure may result
in a reduction in sales.
Revenue decrease
Market,
reputation
Transition Risks (continued)
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
ST
MT
LT
GROUP CLIMATE STATEMENTS
41

Opportunity
Type
Opportunity DescriptionPhysical
(P) or
Transitional
(T)
Anticipated
Impacts
Time horizonTransition
Planning
Customers
/ end
markets
More intensive farming or changes in farming
methods to control methane emissions, leading
to increased demand for dairy consumable
products.
TIncreased
market
opportunity,
lower costs of
transportation
Short-term
Increased demand for footwear due to climate
change (more extreme conditions).
PIncreased
market
opportunity
Short-term
Increasing global rainfall in certain areas may
result in increased milk production and higher
demand for dairy-consumable products.
PIncreased
market
opportunity
Short- to
medium-term
Vacuum systems are used in disasters and
clearing wastewater as a result of infrastructure
damage and are required for the rebuild.
PIncreased
market
opportunity
Short- to
medium-term
Increasing extreme weather events, damage to
buildings and local infrastructure and resilience
investment leading to renewals, upgrades and
maintenance spending and opportunities to
develop new climate-resilient products.
PIncreased
market
opportunity
Short- to
medium-term
Rising temperatures and legislation requiring
an increase in solar installations may create
more demand for solar-related roo‘ng products
(existing and new).
P, TIncreased
market
opportunity
Short- to
medium-term
Urban intensi‘cation (driven by physical or
transition drivers) leads to the opportunity to sell
more products used in infrastructural investment.
Dedensi‘cation is an opportunity as more remote
locations require liquid waste services.
P, TIncreased
market
opportunity
Medium-term
Changes to building and construction
requirements to lower-carbon and more resilient
solutions may present increased demand for
products.
TIncreased
market
opportunity
Medium- to
long-term
Resource
efficiency
Ageing water infrastructure, combined with
increasing extreme events (causing pipe
displacement and leakage) and resilience
investment, leading to renewals, upgrades and
maintenance spending.
PIncreased
market
opportunity
Short-term
Opportunity to develop new and supply existing
products for water management and ef§uent
management in response to new legislation
around, for example, water management and
quality. This may also include increasing
levels of investment in irrigation infrastructure,
hydroponics, automated harvesting, food
processing, and reforestation.
TIncreased
market
opportunity
Short- to
medium-term
Climate-Related
Opportunities
Part of the Group’s current strategic plans
Being considered as part of future strategic planning
LEGEND
SKELLERUP ANNUAL REPORT FY24
42

Opportunity
Type
Opportunity DescriptionPhysical
(P) or
Transitional
(T)
Anticipated
Impacts
Time horizonTransition
Planning
Resource
efficiency
(continued)
Future shifts (through policy or cost) to electric
vacuum systems to complement changes in
modes of transportation (i.e. electri‘cation of the
vehicle §eet).
TIncreased
market
opportunity
Short- to
medium-term
The development of low-emission vacuum
systems presents an opportunity as the policy
focus shifts to ancillary equipment.
TIncreased
market
opportunity
Medium-term
Capital
markets
Access to green capital presents an opportunity to
reduce the overall cost of funding.
TReduced costMedium-term
Transition Planning
Combatting climate change and reducing the
Group’s GHG emissions and broader impact on the
environment are both dynamic and challenging. For
this reason, the Group has not set out the transition
plan aspects of its strategy to the extent that would
fully meet the requirements of NZ CS 1 and has
accordingly applied Adoption Provision 3 of NZ CS
2. This provides an exemption in the ‘rst reporting
period from the requirements to disclose the transition
plan aspects of the Group’s strategy, including how its
business model and strategy might change to address
its climate-related risks and opportunities, and how
the transition plan aspects of its strategy are aligned
with internal capital deployment processes.
The Group operates as a global designer,
manufacturer and distributor of precision-engineered
products. Skellerup has manufacturing and
distribution facilities in six countries spanning four
continents. The Group operates as a collection of
closely aligned business units, with management and
resources close to our customers and end markets.
The Group supplies customers in a wide range of end
markets, focussing on delivering innovative new and
enhanced products.
Being such a diverse organisation, time is being taken
to fully understand and analyse our material emissions
sources and to consider where commercially viable
investment would result in a reduction or limitation
of those emissions. Looking ahead, Skellerup
intends to develop and set interim and long-term
emissions-reduction targets that are science-based.
These targets are expected to contemplate absolute
reductions in emissions as well as reductions in the
intensity of emissions.
Beyond our internal efforts, Skellerup is committed
to working with customers to reduce their emissions
through the use of alternative materials or
manufacturing processes, initiatives to manufacture
closer to end markets, and to research and implement
recycling and waste-reduction measures.
The Group is acutely aware of the physical risks
associated with climate change, both chronic and
acute. The geographic spread of our manufacturing
operations allows an inherent level of risk mitigation
of such physical risks. The Group has initiatives in
place to manufacture either in-market or closer to our
end-market customers, which will provide a further
level of risk mitigation as standardised manufacturing
processes could be established in multiple locations.
Risk Management
Risk and Opportunity Identification
Skellerup’s risk and opportunity identi‘cation is
undertaken by the Group, led by the CEO and CFO
and with appropriate engagement from internal
subject-matter experts and external advisors where
speci‘c knowledge or expertise is required in a
particular area.
Drawing on the results of the physical and transition
exposure assessments outlined on pages 36 to 37, we
have identi‘ed and assessed climate-related risks and
opportunities for each of our key product applications.
We de‘ne key product applications based on
consideration of multiple factors which include
‘nancial (e.g. sectors with the highest contribution to
Group earnings) and non-‘nancial factors (such as
customer, technological and environmental impacts
and policy contexts).
GROUP CLIMATE STATEMENTS
43

For FY24, the key applications outlined below
contributed more than 70 per cent to Group revenue
and represented more than 65 per cent of Group
tangible assets at 30 June 2024. These key applications
are:
•Dairy;
•Potable Water;
•Wastewater;
•Roo‘ng and Construction; and
•Footwear.
We intend to increase the number of product
applications reviewed in future years where these
applications are material to our understanding of
Group-wide climate-related risks and opportunities.
In completing our risk and opportunity identi‘cation
process, we mapped the value chains of our ‘ve key
product applications. This encompassed a thorough
and detailed review of inputs, distribution activities,
processing and end markets.
The identi‘cation of risks was based on input from
subject-matter experts in sourcing, distribution,
manufacturing and sales and marketing across our key
product applications. Both physical and transition risks
and opportunities were identi‘ed and evaluated as
part of this process.
Risk Assessment
Identi‘ed climate-related risks, which were
investigated through detailed physical assessments
and by the use of scenario analysis, were evaluated
using the Group’s existing risk management
framework
6
and based on the consequence of impact
and vulnerability (derived from sensitivity to the risk
and the Group’s assessed adaptive capacity) in line
with the matrix on page 37. As with other commercial
and business risks, climate-related risks have been
assigned a risk owner who takes responsibility for
day-to-day risk management and mitigation.
Risks are given an initial exposure rating based on
the likelihood of an event happening. This assessment
is both quantitative for an event impacting on a single
element of the value chain and qualitative for an event
impacting on a wide number of elements.
Similar risks were grouped where appropriate
and ratings were moderated for consistency and
completeness. Updated risk registers, including
the added climate-related risks, were circulated
to subject-matter experts for validation. Following
amendments, the ‘nal registers were presented to the
6 The Group’s existing risk management framework evaluates Group-wide risks on the basis of de…ned parameters for likelihood of occurrence and magnitude
of impact.
CLIMATE CASE STUDY
Skellerup Rubber Services (SRS) manufactures
moulded rubber and engineered plastic products at
one of the Group’s Auckland sites. SRS has undergone
rapid change and growth with a signi‘cant investment
to increase capacity for engineered plastics injection
moulding. Throughout this process, the SRS team
has remained focused on making incremental
improvements to facilities, equipment and processes
to maximise commercial returns.
Some of these changes included hard-setting
moulding equipment to warm up and turn off at
appropriate times to avoid heating during non-
production hours, continued capital investment to
replace older incandescent lighting as they failed with
LED lamps and the replacement of aged compressors
with new, more energy-ef‘cient technology.
Pleasingly, several initiatives were initiated by team
members on the factory §oor. Rapid allocation of
capital (‘nancial or human) meant opportunities
were realised, resulting in a 19 per cent reduction in
electricity usage in FY24.
Small improvements
go a long way
SKELLERUP ANNUAL REPORT FY24
44

Group’s Sustainability Committee for approval on 08
December 2023. Material climate-related risks are
included in the Group risk assessment report, which is
formally reviewed by the Board at least twice a year.
Frequency of Risk Assessment
Risk is a regular subject of discussion at Board
meetings. Formal updates and reporting on the
Group’s risk assessment are presented to the Board
approximately every six months. In conjunction
with the regular review and reporting of strategic
and operational risks, we will carry out an annual
review and update on climate-related risks in line
with our review of the climate-related scenario
analysis. Where any new or changed climate risks are
identi‘ed outside of the annual review cycle, these
will be considered and reported to the Board and
Sustainability Committee, as appropriate.
Value Chain Exclusions
As noted on page 44, our risk identi‘cation and
assessment process has focused on the Group’s most
material product applications. It is therefore possible
that some elements of the Group’s value chain which
are applicable or speci‘c to those product applications
not included in the risk assessment may have been
excluded from our consideration. Given the complex
and diverse nature of the Group’s activities, it has not
been practicable to conduct a detailed risk assessment
process for each product application and its relevant
value chain elements. However, Group management
and subject-matter experts involved in the climate risk
assessment have a broad knowledge of the Group’s
activities and accordingly, we are con‘dent that all
material risks have been identi‘ed. We will continue
to re‘ne and develop our approach to climate risk
management in future years.
Metrics and Targets
Our GHG Emissions
The Group has been measuring its scope 1 and scope 2
GHG emissions since FY20. In FY24, we measured and
reported our material scope 3 GHG emissions for the
‘rst time. Our total measured emissions were 53,903
tonnes of CO
2
-e in FY24. A table summarising the
Group’s GHG emissions is shown on page 47.
Electricity and gas are the signi‘cant sources of our
scope 1 and 2 emissions as they are used in all of the
Group’s manufacturing operations and distribution and
other administrative centres. As the Group continues
to grow in line with its strategy and growth plans, in
the absence of change, our absolute emissions will
likely increase too. The Group aims to implement
appropriate, commercially sound improvements to
our facilities and supply chains to limit the growth
of emissions. Accordingly, the Group considers its
emissions intensity measures as the most relevant for
evaluating its performance. We do not apply internal
emissions pricing within the Group.
Measurement of GHG emissions
We measure our emissions in accordance with the
GHG Protocol: A Corporate Accounting and Reporting
Standard, with reference to the additional guidance
provided in the GHG Protocol: Corporate Value Chain
(Scope 3) Accounting and Reporting Standard (Scope
3 Standard) and GHG Protocol: Technical Guidance for
Calculating Scope 3 Emissions (Scope 3 Guidance).
The GHG Protocol: A Corporate Accounting and
Reporting Standard, Scope 3 Standard and Scope
3 Guidance are published by the World Resources
Institute and the World Business Council for
Sustainable Development. They were developed to
provide a standardised approach and set of principles
for companies to use in preparing GHG emissions
inventories.
Scope 1 and 2 emissions are measured for all
subsidiaries in the Group. Data for scope 1 and 2
emissions is gathered directly from our underlying
operating systems.
We have elected to utilise Adoption Provision 4,
disclosing a subset of our scope 3 emissions sources.
A detailed materiality exercise was carried out to
determine the scope 3 emissions to be included in
the FY24 GHG emissions inventory. Based on this
exercise, we have excluded scope 3 emissions from
some non-material companies
7
in the Group on the
basis of the relative size and nature of their operations.
Scope 3 emissions from all other companies have
been included.
Scope 3 categories 8 (upstream leased assets), 10
(processing of sold products), 11 (use of sold products),
13 (downstream leased assets), 14 (franchises) and 15
(investments) do not apply to Skellerup’s operations
and have therefore been excluded. All other
categories of scope 3 emissions are included.
We intend to expand our scope 3 measurement to all
operating subsidiaries in FY25.
Data for the measurement of scope 3 emissions is
sourced directly from suppliers, where possible.
Failing this, GHG emissions for the Group are
calculated using alternative methods as prescribed by
the GHG Protocol and guidance as appropriate.
7 Deks North America Limited, Ultralon Foam USA LLC, Conewango Products Corp., Deks Industries Europe Limited and Skellerup Gulf Nantong Trading
Limited were excluded from the scope 3 GHG emissions measurement for FY24.
GROUP CLIMATE STATEMENTS
45

Due to the global nature of the Group’s business and
value chain, emission factors have been sourced from
multiple issuing authorities. The main sources of the
Group’s emission factors used to build up the Group’s
GHG inventories are as follows:
ScopeEmission Factor Source
Scope
1 and 2
New Zealand Ministry for the Environment
Measuring Emissions Guidance 2023
Australian National Greenhouse Accounts
Factors: 2023
UK Government GHG Conversion Factors for
Company Reporting
US EPA Emission Factors for Greenhouse Gas
Inventories
Carbon footprint.com Country-speci‘c Grid
Electricity GHG Emissions Factors in Italy and
PR China
Scope
3
New Zealand Ministry for the Environment
Measuring Emissions Guidance 2023
UK Government GHG Conversion Factors for
Company Reporting
US EPA Emission Factors for Greenhouse Gas
Inventories
The Japan Rubber Manufacturers Association, Inc.
CO
2
Calculation Guidelines Ver. 2.0
Worldstainless Stainless Steels and CO
2
: Industry
Emissions and Related Data
International Aluminium Greenhouse Gas Emissions
Intensity: Primary Aluminium
Cosotex CO
2
Calculator for Textile Emissions
Researchgate Published Lifecycle Emissions
Assessments for Adhesives, Paints and Silicone
Rubber
ScienceDirect published report on Sustainable
Carbon Fibre Production
Auckland Council Consumption Emissions Modelling
Carbon footprint.com Transport-related
emissions factors
The Global Warming Potential (GWP) attached to
each of the different GHG emissions is calculated
through the use of appropriate emission factor sources.
For further information on GWPs, refer to the Glossary
on page 48.
Our Organisational Boundary
Organisational boundaries are de‘ned as the
boundaries that determine the operations owned
or controlled by Skellerup, depending on the
consolidation approach taken. We have elected to
apply the control approach to consolidate the GHG
emissions of the Group. Under the control approach,
we account for our GHG emissions from operations
over which the Group has control (noting our exclusion
of de minimis emissions sources, as de‘ned below,
and immaterial sources of scope 3 emissions).
Skellerup will not account for GHG emissions from
operations in which we own an interest but have no
control (Skellerup had no such entities during FY24).
Control can be de‘ned in either ‘nancial or
operational terms. Skellerup applies the ‘nancial
control criterion, which aligns with our ‘nancial
consolidation approach. Financial control is de‘ned as
having the ability to direct the ‘nancial and operating
policies of an operation to gain economic bene‘ts from
its activities.
The consolidation approach is summarised as:
SubsidiariesInclude 100% of GHG emissions
for operations accounted for as
subsidiaries, regardless of the equity
interest owned.
Non-incorporated
joint ventures/
partnerships/
operations where
partners have joint
…nancial control
Include GHG emissions proportionate
to the Group’s interest in the operation.
Skellerup has no non-incorporated joint
ventures, partnerships or operations
with joint ‘nancial control in FY24.
Associated / af…liated
companies
Do not include GHG emissions from
operations accounted for using the
equity method in the consolidated
‘nancial statements. Skellerup had no
associated or af‘liated companies in
FY24.
Our Operational Boundary
Operational boundaries are used to determine
the direct and indirect emissions associated with
operations owned or controlled by the Group.
The Group develops scope 1 and 2 emissions totals
based on the operational control approach. The Group’s
GHG emissions inventory includes scope 1 and 2
emissions from all facilities where the Group has full
authority to introduce and implement operating policies.
The Group reports additional relevant indirect (scope
3) emissions from activities in our value chain outside of
the Group’s operational control. For categories of scope
3 emissions, the boundary is currently de‘ned on a
category-by-category basis due to data limitations.
Our reported GHG emissions inventories for scopes
1, 2 and 3 accounted for using the ‘nancial control
approach are subject to inherent uncertainties arising
from reliance on data obtained from third parties, or
necessarily estimated or assumed, and may not be
accurate or complete, although all practical controls
have been put in place to mitigate this risk as far
as possible.
SKELLERUP ANNUAL REPORT FY24
46

Scope 1 and 2 GHG emissions
(tonnes CO®-e)
4,500
3,500
2,500
1,500
500
0
1,193.8
1,142.31,133.0
2,306.5
2,981.4
4,175.2
3,865.5
3,439.5
2,723.2
FY22FY23FY24
Scope 1
Scope 2
14
12
10
8
6
4
2
0
13.18
11.59
10.40
FY22FY23FY24
Scope 1 and 2 GHG emissions per $1 million revenue
(tonnes CO®-e per $1 million revenue)
FY24 GHG emissions
In tonnes of CO
2
-eFY24 EmissionsFY23 EmissionsFY22 Emissions
Scope 1
*
1,133.01,142.31,193.8
Scope 2
*
2,306.52,723.22,981.4
Total Scope 1 and 23,439.53,865.54,175.2
Scope 3
50,463.9NM
*
NM
*
Total measured Group emissions53,903.43,865.54,175.2
Scope 1 and 2 emissions (tonnes CO
2
-e) per $1 million revenue
(GHG emissions intensity by revenue)10.4011.5913.18
Total Group emissions (tonnes CO
2
-e) per $1 million revenue
(GHG emissions intensity by revenue)163.06NM
*
NM
*
*NM – Not measured
* Emissions for FY23 and FY22 remeasured to re§ect updated emissions factors published subsequent to reporting dates for those years
Pleasingly, we can report an 11 per cent reduction
in our scope 1 and 2 emissions in FY24 from FY23.
This is in addition to a seven per cent reduction
in absolute emissions seen in FY23 from FY22.
Although this reduction was partly a result of lower
levels of activity, particularly at our dairy rubberware
manufacturing facility in Christchurch, New Zealand,
we have also seen the positive impacts of deliberate
initiatives to reduce electricity consumption.
These included:
•Process and equipment improvements at our
Skellerup Rubber Services facility in Auckland,
New Zealand, which has seen electricity
consumption reduce 19 per cent versus the prior
comparative period;
•A pleasing return on the investment made in solar
panels at our Ultralon site in Auckland, New Zealand,
yielding up to 50 per cent of the site’s monthly
electricity requirements; and
•Modi‘cations to our post-curing ovens at Silclear in
the UK contributed to a decrease in electricity usage
of 19 per cent.
Overall, 10 of our 18 sites achieved absolute emissions
reductions in FY24 through a combination of large and
small initiatives. We continue to evaluate investments
in facilities, equipment and processes to reduce the
Group’s overall emissions footprint.
We also measure our scope 1 and 2 emissions
intensity as a factor of revenue. Our intensity measure
of 10.4 tonnes of CO
2
-e per $1 million of revenue is 10
per cent lower than the remeasured result for FY23.
GROUP CLIMATE STATEMENTS
47

Scope 3 GHG Emissions
The Group measured its scope 3 emissions for the
‘rst time in FY24. The source of scope 3 emissions
by category is summarised in the chart below and
re§ects the majority of scope 3 and all emissions being
embedded in the Group’s purchased goods
and services.
FY24 Scope 3
GHG inventory
Emissions Sources Identified and Excluded
Several GHG emissions have been excluded from
the scope of our inventory due to being de minimis.
Emissions sources identi‘ed and excluded are:
•Category 1: Purchased goods and services – non-
inventory-related purchases of goods and services
(i.e. those purchases not directly related to our
manufacturing processes) are considered de minimis;
•Category 3: Transmission and distribution losses –
the entire category is considered de minimis.
•Category 12: End-of-life treatment of sold products
– based on the nature of products sold by the Group
and the likely end-of-life treatment, this category is
considered immaterial. We will continue to evaluate
its measurement in future.
Other Metrics
The amount or percentage of assets or business
activities vulnerable to physical risks – Skellerup’s
risk assessment detailed on pages 38 and 39 identi‘ed
that none of its material assets were rated above
a “moderate” risk rating in any scenario. As such,
Skellerup’s present assessment of the percentage of its
assets vulnerable to physical risks is 0%.
Climate-related
Opportunities
The potential positive impacts of climate change on the Group.
Climate-related RisksThe potential negative impacts of climate change on the Group, both physical and transitional.
Greenhouse Gas
(GHG) Emissions
The release of GHGs into the atmosphere. Gross emissions are total GHG emissions excluding any removals,
and excluding any purchase, sale or transfer of GHG emission offsets or allowances.
Global Warming
Potential (GWP)
An index to translate the level of emissions of various greenhouse gases into a common measure in order
to compare the relative radiative forcing of different gases. GWPs are calculated as the ratio of the radiative
forcing that would result from the emissions of one kilogram (kg) of a greenhouse gas to that from the emission
of one kg of CO
2
over a period of time (usually 100 years). GWPs are applied to the non-CO
2
gases to enable
meaningful comparisons among the gas types compared with CO
2
. Where GWPs are applied to these gases,
GHG emissions are commonly expressed as their carbon dioxide equivalent (or CO
2
-e). The larger the GWP,
the more a given gas warms the earth, compared with CO
2
over that period. The time period usually used
for GWPs is 100 years, to align with UNFCCC greenhouse gas inventory reporting requirements. The IPCC
provides more information on how these factors are calculated.
Greenhouse Gas
(GHG)
The greenhouse gases listed in the Kyoto Protocol: Carbon Dioxide (CO
2
), methane (CH
4
), nitrous oxide (N
2
O),
hydro§uorocarbons (HFCs), nitrogen tri§uoride (NF
3
), per§uorocarbons (PFCs) and sulphur hexa§uoride (SF
6
)
GroupSkellerup Holdings Limited and its subsidiaries. A listing of signi‘cant subsidiaries is provided on page 104.
Glossary of key terms used in Climate-Related Disclosures
Category 1:
Purchased goods
and services (83%)
Category 2:
Capital goods (2%)
Categories 4 and 9:
Transportation and
distribution (10%)
Category 5:
Waste generated in
operations (3%)
Category 6:
Business travel (1%)
Category 7:
Employee commuting
(1%)
SKELLERUP ANNUAL REPORT FY24
48

John Strowger
Independent Chair
Alan Isaac
Independent Director
The amount or percentage of assets or business
activities vulnerable to transition risks – Skellerup’s
transition risk assessment detailed on pages 40 and
41 identi‘ed that none of its business activities were
exposed to risks rated above a “moderate” risk
rating in a Middle of the Road Scenario over the short
term. As such, Skellerup’s present assessment of the
percentage of its assets vulnerable to transitional risks
in this time frame is 0%.
The amount or percentage of assets or business
activities aligned with climate-related opportunities
–Skellerup’s assessment is that its dairy, potable and
wastewater, roo‘ng and construction and footwear
product applications are aligned with climate-related
opportunities, being the opportunities to supply these
sectors with increased quantities of products, or new
products, in response to physical effects of climate
change (for example increased storm events). These
product lines represent more than 70% of Skellerup’s
FY24 revenue.
Amount of capital expenditure, ‘nancing, or investment
deployed toward climate-related risks and opportunities
– No capital was speci‘cally allocated towards climate-
related risks and opportunities in FY24.
Group Climate
Statements
The climate-related disclosures for a climate reporting entity as at and for the year ended on the reporting date
that are required to be prepared under the applicable climate reporting standard.
Scenario AnalysisA process for systematically exploring the effects of a range of plausible future events under conditions of
uncertainty. Engaging in this process helps to identify climate-related risks and opportunities and develop a
better understanding of the resilience of the business model and strategy.
Scope 1 GHG
Emissions
Direct GHG emissions from sources owned or controlled by the Group.
Scope 2 GHG
Emissions
Indirect GHG emissions from the consumption of purchased electricity, heat or steam. These emissions
are measured using the location-based method which includes GHG emission intensity factors for energy
production in a de‘ned local or national region.
Scope 3 GHG
Emissions
Other indirect GHG emissions not covered in scope 2 that occur in the value chain of the Group, including
upstream and downstream GHG emissions. Relevant scope 3 categories for the Group are purchased goods
and services, capital goods, upstream and downstream transportation and distribution, waste generated in
operations, business travel and employee commuting.
Value ChainsThe full range of activities, resources and relationships related to the Group’s business model and the
external environment in which the Group operates. A value chain encompasses the activities, resources and
relationships the Group uses and relies on to create its products from conception to delivery, consumption and
end of life.
Assurance of GHG Emissions
Our FY24 GHG emissions inventory has not been
subject to independent reasonable assurance.
FY25 will be the ‘rst year our GHG emissions will
be subject to such assurance.
Approval by the Board of Directors
These climate-related disclosures were authorised
for issue by the Board of Directors on 15 August 2024.
For and on behalf of the Directors
GROUP CLIMATE STATEMENTS
49

DIRECTOR CORE COMPETENCES
ESG (6/6)
Prior relevant Board and leadership
experience, ESG best practice
Financial (3/6)
Experience in international ‘nance,
accounting, reporting, controls and taxation
Risk Management (6/6)
Financial and non-‘nancial 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
Health & Safety (6/6)
Health and safety management for a
global business
BOARD OF
DIRECTORS
The experience and diverse range of skills across
Skellerup’s Board ensures our plans are robust and
pursued with vigour and sound business discipline.
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 ‘rm’s China desk. He was
named NZ Deal Maker of the Year at
the 2015, 2017 and 2019 Australasian
Law Awards. John sits on the board of,
and advisory committees to, a number
of private sector businesses, and is a
director of listed company, Sanford
Limited. 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)
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)
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)
SKELLERUP ANNUAL REPORT FY24
50

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
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

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
Paul was appointed to the Skellerup
Holdings Board in August 2020.
He was Senior Vice President - Sales
and Marketing for Fisher & Paykel
Healthcare for 30 years and has global
business experience 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)
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, ‘nancial 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. He led the Group
as CEO for over 12 years during
which time it achieved signi‘cant
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. David is currently CEO and
a director of Sanford Limited and a
director of Forté Funds Management
Limited. David is a member of the
Health & Safety Committee and the
Sustainability Committee.
Non-Executive Director
David Mair
(BE, MBA)
BOARD OF DIRECTORS
51

CORPORATE
GOVERNANCE
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 (Skellerup,
or the Company) on 14 August 2024. The information
contained in this Corporate Governance statement is
current as at that date.
Skellerup’s Board and management are committed to
achieving high standards of corporate governance.
We believe this is central to the effective management
of the business and to maintaining the con‘dence
of our shareholders. The Board and management
are focused on ensuring the long-term success of
the Company and its subsidiaries (Group) 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 reported against the recommendations of the
updated NZX Corporate Governance Code dated
1 April 2023 (NZX Code) in respect of the ‘nancial
year ended 30 June 2024 (FY24). Skellerup is in full
compliance with all recommendations of the NZX
Code for FY24.
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 the FY24 is
detailed below under headings for each of the eight
Principles of the NZX Code.
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 Group.
Skellerup’s Code of Ethics provides a framework of
minimum standards of ethical behaviour according
to which Directors, management and all employees
of the Group are expected to conduct themselves.
The Code of Ethics outlines the Company’s
expectations for all personnel. It includes consideration
of con§icts of interest, conduct, legislative compliance,
con‘dentiality and the use of the Group’s assets and
information. Skellerup’s Code of Ethics is reviewed
annually by the Board of Directors, the last review
being conducted in June 2024.
SKELLERUP ANNUAL REPORT FY24
52

Skellerup communicates its Code of Ethics to Directors
and employees, explaining the Code’s purpose and
the mechanism for reporting any unethical behaviour.
During FY24, the CEO and CFO shared a video
presentation on the Code of Ethics, together with
other key Group policies, with all Group and Business
Managers. This presentation was made available to
all employees to be trained on the Code of Ethics and
other key Group policies during June 2024. Group
and Business Managers then con‘rmed training
attendance back to the CFO. The Code of Ethics is
available to all employees on Skellerup’s website.
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.
Skellerup has not received any reports of serious
instances of unethical behaviour during FY24.
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 ‘nancial 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 2024 are set out
in the Shareholder Information section on page 106.
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 ‘nancial 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 pages 50 and 51.
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.
CORPORATE GOVERNANCE
53