Annual Meeting 2024

2 4 O C T O B E R 2 0 2 4
ANNUAL
SHAREHOLDERS’
MEETING

Directors and Executives
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John Strowger
Independent Chair
Joined the Board in March 2015
Chair of the Health & Safety Committee
David Cushing
Independent Director
Joined the Board in August 2017
Alan Isaac
Independent Director
Joined the Board in August 2016
Chair of the Audit Committee
Tim Runnalls
CFO
Joined Skellerup as GFC in March 2021
Appointed CFO in March 2024
David Mair
Non-executive Director
Joined the Board in November 2006
CEO from July 2011 to March 2024
Rachel Farrant
Independent Director
Joined the Board in May 2022
Chair of the Sustainability Committee
Paul Shearer
Independent Director
Joined the Board in August 2020
Graham Leaming
CEO
Joined Skellerup as CFO in December 2012
Appointed CEO in March 2024

Agenda
•Chair Address, John Strowger
•CEO Address, Graham Leaming
•Resolutions
•Re-election of Alan Isaac
•Re-election of John Strowger
•Increase in Directors’ Fee Pool
•Remuneration of the Auditors
•General Business
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Chair Address
John Strowger
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Sustained Incremental Growth
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-
10
20
30
40
50
60
70
80
FY18FY19FY20FY21FY22FY23FY24
EBIT ($m)
CAGR 12%
-
10
20
30
40
50
60
70
80
FY18FY19FY20FY21FY22FY23FY24
Operating Cash Flow ($m)
CAGR 19%
0
5
10
15
20
25
FY18FY19FY20FY21FY22FY23FY24
Dividend per Share
(cents)
-
10
20
30
40
50
60
FY18FY19FY20FY21FY22FY23FY24
Underlying NPAT ($m)
CAGR 12%
FY24
•Record EBIT of $72.7
million.
•Record Operating
Cash Flow of $70.8
million.
•Record full-year
dividend pay-out of
24.0 cents per share

The Reign of Mair
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0
10
20
30
40
50
60
70
80
FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24
Underlying EBIT ($m)
Nov 2006
Joins SKL
Board
Aug 2010
Appointed
acting CEO
Aug 2011
Appointed
CEO
Mar 2024
Stands down
as CEO
Nov 2016
New Wigram
facility opened
Mar 2022
Deloitte
CEO of the
Year
EBIT
exceeds
$50 million
EBIT
exceeds
$40 million
EBIT
exceeds
$70 million
Feb 2011
Christchurch
Earthquakes
EBIT
exceeds
$60 million

Global Business
E U RO P E & U K
FY24 Revenue:
NZD 65 million
20% of Group
OT H E R FY24 Revenue: NZD 3 million 1% of Group
AU ST R A L I A
FY24 Revenue:
NZD 44 million
13% of Group
A S I A
FY24 Revenue:
NZD 30 million
9% of Group
N E W Z E A L A N D
FY24 Revenue:
NZD 67 million
21% of Group
N O RT H A M E R I C A
FY24 Revenue:
NZD 122 million
36% of Group
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Strength and Stability
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-
10
20
30
40
50
60
FY18FY19FY20FY21FY22FY23FY24
Underlying NPAT ($m)
CAGR 12%
-
5
10
15
20
25
30
35
40
FY18FY19FY20FY21FY22FY23FY24
Net Debt ($m)

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CEO Address
Graham Leaming
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Skellerup Model
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Technical products for precision,
high performance and
conformance applications
Customer-focused development
for global customers
In market presence, development
hubs and manufacturing scalability
Business unit accountability,
capability and measurement
Deep technical
expertise

Global Presence
E U RO P E & U K
FY24 Revenue:
NZD 65 million
20% of Group
People: 156
OT H E R FY24 Revenue: NZD 3 million 1% of Group
AU ST R A L I A
FY24 Revenue:
NZD 44 million
13% of Group
People: 45
A S I A
FY24 Revenue:
NZD 30 million
9% of Group
People: 223
N E W Z E A L A N D
FY24 Revenue:
NZD 67 million
21% of Group
People: 318
N O RT H A M E R I C A
FY24 Revenue:
NZD 122 million
36% of Group
People: 53
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EBIT Growth, Robust Cash Flow
FY24
•Record EBIT of $72.7 million
•Revenue growth from newly launched products into hygiene, potable and wastewater, roofing and
construction applications
•Record Operating Cash Flow of $70.8 million
•Funding dividend growth, investment in product development, equipment and process enhancements and
reduction in net debt (down by 43% to $15.4 million)
• Full-year dividend pay-out of 24.0 cents per share, up 9% on pcp
-
10
20
30
40
50
60
70
80
FY18FY19FY20FY21FY22FY23FY24
EBIT ($m)
CAGR 12%
-
10
20
30
40
50
60
70
80
FY18FY19FY20FY21FY22FY23FY24
Operating Cash Flow ($m)
CAGR 19%
0
5
10
15
20
25
FY18FY19FY20FY21FY22FY23FY24
Dividend per Share
(cents)
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Future
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FY25
•NPAT Guidance Range $52 to $57 million
Three Year View
•Continued earnings growth
•Capitalising on our internal capabilities across the Group
•Leveraging presence of existing operations
•Manufacturing more product in-market
•Larger share of revenue derived from integrated, value-add products.

Global Team
E U RO P E & U K
People: 156
AU ST R A L I A
People: 45
A S I A
People: 223
N E W Z E A L A N D
People: 318
N O RT H A M E R I C A
People: 53
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Questions
John Strowger | Chair
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Resolutions
John Strowger | Chair
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Resolution 1
Re-election of Alan Isaac
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Resolution 2
Re-election of John Strowger
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Resolution 3
Increase in Directors’ Fee Pool
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Resolution 4
Remuneration of the Auditors
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General Business
John Strowger | Chair
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SKL FY24 ASM Chair Address
It is a pleasure to stand here once again in front of you and discuss another successful year for
Skellerup.
Briefly – the numbers.
2024 financial year delivered a record EBIT for the Group of $72.7 million. Underlying NPAT came in
at $50.0 million, admittedly just under 2023’s record of $50.9 million, as a consequence of an
increased tax burden and higher interest charges that shareholders will be very aware of.
And Skellerup’s balance sheet continues to be very strong – we enjoyed record cash flow 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.
The cumulative effect of all of this is that we have been able to pay a record total aggregate dividend
for FY24 of 24.0 cents per share - 94 per cent of FY24 underlying tax paid earnings.
I said last year that records will be increasingly hard to beat, but the team has again, and this is
clearly an excellent result in what are challenging market conditions in New Zealand, and indeed
globally.
So that's the headline metrics, and in theory I could stop there. Another successful year. But there
was quite a bit behind the numbers, in 2024.
Anyone who's followed Skellerup for a while knows we see ourselves as the quiet achievers -
incremental growth, rather than bold quantum leaps which usually in my experience carry significant
additional risks and can, just as quickly as they appear, reverse (or worse).
We got a bit more change than normal, this year.
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.
The Board is, and shareholders ought to be, extremely grateful to David for his long and enduring
contribution to the Group.
To repeat a few of the comments I made at the time of announcement of his departure (but which I
think bear repeating in this forum, the first time I’ve had a chance to do so publicly, as opposed to
via NZX announcements)
David has been an outstanding CEO. Over the almost 14-year period he has been in the role,
Skellerup’s reported EBIT has increased by more than 400%. [Behind me are 2 graphs describing EBIT
and EPS growth over the term of David’s tenure of this company]. Shareholders have been well
rewarded by David's expertise, leadership and relentless drive for growth and improvement.

Customer-focused development, continuous operational improvement and careful allocation of
financial and human capital are key elements David has instilled into Skellerup. David brings a laser
intensity focus to everything he does in business, as anyone who has worked with him will attest. He
challenges...everybody.
His success has rightly been recognised over recent years, and whilst I have previously remarked that
our growth and performance are through the contribution of many, they have been expertly
enabled and led by David.
So – thank you David.
David has agreed to remain on the Board, post his departure as CEO. Former CEO’s 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).
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.
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 seamless – the
business genuinely 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 confidence that the future of
Skellerup is very bright, in the medium and long term. Graham will introduce you to some of them,
shortly.
I talked in my address to you 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 - sure, you can get containers out of New
Zealand now, but we’ve all read about the Suez Canal. We are a long way from some of our key
markets, and mitigation of this takes careful management.
To add to this, 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 significant 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. We
have been able to do that without compromising profitability. However, 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
significant potential to do a lot more. Graham will speak further about this shortly.

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 in the water
– but although we will be cautious, the Board is absolutely 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 – and this will likely subject the business to additional cost. We will look to do this in a
way which does not suddenly subject the business to significant additional costs which might
jeopardise a continuation of the record performances that we aspire to, and which capital markets
have come to expect. However, we also do need to ensure that the businesses is rightly configured
for the long term. There is some need for reconciliation between those two slightly competing
statements.
This year for the first time we have provided substantial Climate -Related Disclosure Reporting.
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 nothing new. It has been integral to
sustainably growing profitability as Skellerup has for many years. The development of our first
climate statements has been a significant 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 - and further inform the investment of our financial 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 find 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 first 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.
I touched briefly earlier on our low levels of debt. As I’ve said previously, we would be keen to find
business acquisition opportunities which work for us in adjacent industries or markets, but until we
do our dividend policy of distributing earnings to shareholders - the owners - 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 (suppliers and customers)
can produce. However, 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 some of what I’ve discussed above.
In the meantime, I thank you for your continued interest and support for this business, it’s people
and this Board.

---

SKL FY24 ASM CEO Address
Thank you, John.
Introduction
This is the thirteenth Skellerup Annual Meeting I have attended. I remember the first, as it was just
before I started with the Company. I was in the audience as an interested observer, at least I thought
that was the case, until Sir Selwyn Cushing offered me the opportunity to comment on a shareholder
question on foreign exchange. A good early test from Sir Selwyn, and now a few years later I am very
pleased to speak to you for the first time as CEO of a Company that is in robust shape with a track
record of strong earnings growth.
Today I will give you a summary of our business and strategy, recap on FY24 results, discuss current
markets, our future and introduce you to some of the people critical to delivering future success.
Our Business
At a broad level there are four key elements of how we do business at Skellerup. On their own they
are not unique but collectively we think they provide us with a competitive advantage:
• the applications we focus on;
• our approach to markets and customers;
• our business model and allocation of capital; and
• our business structure.
Sometimes Skellerup gets labelled as difficult to understand. We do not have a single hero product,
or range, or customer upon which our success depends. We design and manufacture products for a
wide range of applications (as shown on the screen and as you can see from the product displays).
This is not an accident; it is a deliberate strategy and enables us to exploit our deep technical
expertise for maximum value.
While we consciously target a wide range of applications, we are not chasing every rainbow. We are
focused on opportunities where we can create and capture value by applying our expertise for the
design and manufacture of precision, high performance and conformance applications. In addition to
developing and moulding complex parts, we integrate discrete parts and materials into products to
reduce complexity, risk and cost for customers. Put simply we thrive on designing and manufacturing
technically demanding products for demanding applications.
We are a global business. 80% of our revenue is derived from international markets. We have people
and facilities in NZ, Australia, China, Europe, the UK and the USA. The US has been a market of
particular focus due to the size of the opportunities and breadth of customers needing the
technology we offer. Over the past 7 years, US revenue has more than doubled and we now have six
facilities from which we manufacture and/or distribute product. Europe (including the UK),
Australasia and Asia continue to be important markets for growth.

We have a consistent customer focused approach to development whether we are designing and
making products for original equipment manufacturing (OEM) customers (for example components
for tapware or equipment manufacturers) or branded products for industrial and consumer
applications (examples include products for roofing applications and our rubber footwear).
We invest our resources in opportunities our customers are committed to. Practically that means us
working to clearly understand the need and the value of our offering and ensuring conviction from
the customer tangibly represented by a financial contribution to the development cost, and/or an
irrevocable commitment for product.
Our global business is set up to be innovative, responsive and competitive. As noted earlier we have
on the ground presence in the key markets of our customers. It is very difficult to grow without this.
These teams of varying sizes are supported by development centers of which our largest are in NZ
but we also have smaller teams across the world. Our manufacturing capability is a combination of
our facilities in NZ, Europe, China and the US and contract manufacturing partners most notably in
Vietnam. The combination of customer commitment to development that I spoke of earlier and
manufacturing partners means our capital and development expenditure is relatively low, reduces
the risk of projects failing and allows us to optimise allocation of financial and human capital.
We organise the Skellerup Group into business units (within two Divisions – Industrial and Agri).
These business units generally align with a location and application focus. The leaders of these
business units are accountable for growth and performance, and this is matched with authority that
enables them to make decisions where customer requirements, supplier choices, resources and
people needs are best understood. These business units draw and effectively contract with the
expertise provided by our development centers. This structure has been and will continue to be a
key plank to deliver growth and enables robust, regular evaluation and prioritizing of strategic
initiatives and decisions around larger investments or commitments in capability (equipment and
people).
Of course, the success of a proven model does not guarantee future success. We are and will make
changes.
We are increasing collaboration across the Group. This does not detract from focus, rather it is a
case-by-case assessment of where the most suitable skills are for the best opportunities. The recent
development and launch of our Thriver Teat for dairy calves led by the Agri Development Team also
used the expertise of our Industrial Development Team in Auckland.
We are also alert to the opportunity to better leverage the presence and knowledge of a Skellerup
business in any location to service the needs of other Skellerup businesses, a less siloed approach
than we have adopted in the past. An easy step is distribution, but opportunities also exist for
manufacturing and converting.
FY24
The key elements of our business strategy and structure have helped reduce the impact of economic
cycles on our business, and this is evidenced by the consistent growth in our earnings and cash flow
over a prolonged period (as demonstrated in the graphs on this slide).

Focusing on FY24 and to repeat an over-used sporting analogy, it was a game of two halves. Higher-
than-anticipated levels of customer destocking caused a lower-than-expected first half result, but
this was offset by a strong second half across the Group, with the aggregate outcome EBIT of $72.7
million, up $1.0 million on the prior year and an eighth successive year of EBIT growth.
Non-recurring, non-cash tax charges related to the removal of tax depreciation on buildings was the
primary driver in reducing net profit after tax (NPAT) below the previous year’s record to $46.9
million.
Another critical metric for Skellerup and any company is cash flow and in particular operating cash
flow. In FY24, our operating cash flow was $70.8 million, also a record result. The improvement in
EBIT was complemented by continued good management of receivables and a planned reduction in
inventory. We have a track record of strong operating cash flow enabling eight years of successive
dividend growth, alongside investing capital to grow our business and keeping net debt at very low
levels.
FY25
Looking now to FY25. We have had a strong start, with revenue and EBIT both ahead of the prior
comparative period. Demand across our Industrial Division, with the exception of roofing and
construction products in Australia has been strong. For the Agri Division, demand for dairy
rubberware in international markets is much improved on a weak prior year comparative but
partially offset by slower sales of rubber footwear impacted primarily by the NZ economic
environment.
The nature of our business means we do not have long order books to provide certainty beyond the
very near term. Global uncertainties persist and during previous US election cycles we have
observed slower demand in the months immediately preceding the election day. Taking all these
factors into account our best estimate at this stage is for FY25 EBIT in a range of $52 million to $57
million, as reported to the NZX earlier today.
Future
Looking longer term, how might Skellerup look in the future, say three years from now. Achieving
higher revenue and earnings is a given and I have touched on items such as greater internal
collaboration and leveraging existing operations but there are two further areas I would like to
highlight.
The first is greater in-market presence. In recent years we have talked about the importance of this
to ensure profitable market access and strengthen customer relationships.
We have made very good progress with developing a more advanced, standardised and efficient
manufacturing capability for dairy rubberware products. We will soon have the capability and
optionality to deploy this in-market, at a time we consider optimal, to best meet ours and our
customers’ needs.
In early 2025, we will open a facility in the Netherlands to meet growing demand for high-
performance foam products for marine applications in Europe. We will deploy a proven business
model which includes kit conversion, currently deployed in NZ and Australia.

The second area of change is likely to be a larger share of our revenue being derived from more
integrated, or value-add products that combine components to deliver a more valuable proposition
for customers.
Our vacuum system solutions are a fantastic example where we have continued to integrate
additional elements, making our customers task of installation on a truck much faster and more cost
effective, and increasing the value captured per unit of sale to Skellerup. We continue to see
opportunities to build on this with the most recent integration being the inclusion of a water pump.
Another example in our Industrial Division is a foam dispensing pump for a global hygiene customer
which incorporates 11 discrete components manufactured and assembled by us. Sales for this grew
considerably in FY24. In the Agri business, we have recently launched a milking liner pre-loaded in a
single use recyclable shell which greatly reduces the time required for the exchange of liners in the
milking shed. Our team are working to take this a step further with a single use recyclable milking
cluster.
All of these examples have a common theme – reducing complexity and cost for our customers –
genuine value-add for them and value capture for us. We have other similar opportunities with
customers that we are working on.
Our Team
I have discussed our business strategy and structure, recent results, the immediate outlook and the
future. Our achievements and future ambition draw on the skill, tenacity and contribution of many
people who are represented by a small but important group today that I will introduce now.
<introduce personnel>
These are some of the people who have been and will continue to be important contributors to
Skellerup’s success. I am excited about the ambition we share, and the collective skill, courage and
capability to initiate and embrace change, to improve and grow our business. Please take the
opportunity to chat to them if you have not already done so before the meeting.
Close
To close, whilst they know it, I express my appreciation to our Board for the commercial direction
and perspective they bring. Their availability, engagement and experience are invaluable, ensuring
robust debate and sound decisions to deliver the best outcomes for our future sustained success.
And a final thanks to all in attendance today, both in person and virtual. We appreciate your interest
and investment in Skellerup. We are committed to continuing to apply ourselves to deliver critical
products for customers and deliver excellent returns for you.