Skellerup delivers record earnings

Results announcement

Audited financial statements accompany this announcement.
Results announcement to the market
Name of issuer Skellerup Holdings Limited
Reporting Period 12 months to 30 June 2026
Previous Reporting Period 12 months to 30 June 2025
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing operations $ 390,059 10%
Total Revenue $ 390,059 10%
Net profit/(loss) from continuing operations $ 67,679 24%
Total net profit/(loss) $ 67,679 24%
Final Dividend
Amount per Quoted Equity Security $ 0.20000000
Imputed amount per Quoted Equity Security $ 0.03111111
Record Date Close of trading on Friday, 02/10/2026
Dividend Payment Date Friday, 16/10/2026
Current period Prior comparable period
Net tangible assets per Quoted Equity Security (in
dollars and cents per security)
$ 1.0212 $ 0.8860
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 +64 27 807 5080
Contact email address tim.runnalls@skellerupgroup.com
Date of release through MAP Thursday, 20/08/2026

---

FY
26
Annual
Report

Business Review
Highlights 05
Chair's Review 08
What We Do 12
CEO's Review 14
Skellerup's People 22
Board of Directors 26
Corporate Governance 28
Group Climate Statements 42
Financial Commentary 76
Non-GA AP Profit Reporting Measures 80
Consolidated Financial Statements
Independent Auditor’s Report 84
Directors’ Responsibility Statement 87
Income Statement 88
Statement of Comprehensive Income 89
Balance Sheet 90
Statement of Changes in Equity 91
Cash Flow Statement 92
Notes to the Financial Statements 93
Shareholder Information
Directors’ Disclosures and Shareholding 122
Corporate Directory 124
Contents

Skellerup designs, manufactures and distributes
essential, high-performance components to customers
around the world. Our products perform critical roles
across dairy, potable water and wastewater, construction,
sport and leisure, electrical, health and medical,
automotive and mining applications globally.
We build strong and enduring partnerships with our
customers. By understanding what matters most to them,
we develop innovative new products and improvements
that deliver the precision, performance and reliability
they require.
Our diverse and highly skilled team of more than 800
people is supported by manufacturing and distribution
facilities across New Zealand, Australia, China, Vietnam,
the UK, Europe and the US.
A global leader in
precision-engineered products
Introduction3

Graham Leaming
We will continue to
invest in preserving and
enhancing our technical
capability as the primary
cornerstone of Skellerup’s
competitive advantage.
* Normalised EBIT is defined as EBIT adjusted for significant one-off gains, losses, revenues and expenses (refer to page 80)
** Normalised NPAT is defined as NPAT adjusted for the after-tax impact of significant one-off gains, losses, revenues and expenses (refer to page 80)
*** Calculated based on Normalised NPAT (refer to page 80)
Skellerup Annual Report FY2645

Strong
financial returns
Normalised
NPAT
**
18%
$
64.2
M
(FY25: $54.5m)
$
390.1
M
(FY25: $353.5m)
Revenue
growth
10%
Operating
cash flow
26%
$
83.6
M
(FY25: $66.5m)
Normalised
EBIT
*
14%
$
89.3
M
(FY25: $78.0m)
Dividend
per share

18%
30.0
cps
(FY25: 25.5 cps)
Financial return
ratio (RONA)
***
1.8pp
24.5
%
(FY25: 22.7%)
Normalised earnings
per share (EPS)
***
18%
32.8
cps
(FY25: 27.8 cps)
Diverse and
experienced team
838
(FY25: 809)
People
Fewer than 2 years (24%)
2 – 10 years (43%)
10 – 20 years (21%)
Greater than 20 years (12%)
(FY25: 24% / 42% / 22% / 12%)
Ye ar s’
service for
staff
Male (52%)
Female (48%)
(FY25: 52% / 48%)
Demographic
(gender)
Highlights45

The Group has again
benefited from disciplined
execution, strong
customer relationships
and sustained demand for
high-performance products
across our core industrial
and agricultural markets.
John Strowger
Skellerup Annual Report FY2667

Delivering a diverse
product range for customers
Customers
(FY25: over 3,700)
3,900
over
Countries
(FY25: 87)
94
sold to
New products
to market
last 24 months
(FY25: 440)
500
over
Environmental
impact
GHG*
emissions
( Tonne s C O
2
-e) (Scope 1 and 2)

5% (favourable)
3,482
(FY25: 3,649)
*greenhouse gas
Emissions
Reduction Plans
developed for
manufacturing sites
Five
GHG emissions
/ revenue
(Scope 1 and 2)

14% (favourable)
8.9
(F Y25: 10.3)
CO
2
-e tonnes per $1
million of revenue over
the past year
Dairy (27%)
Potable Water & Wastewater
(incl Plumbing) (25%)
Roofing & Construction (16%)
Footwear (7%)
Automotive & Machinery (5%)
Sport & Leisure (5%)
Exploration & Mining (5%)
Electrical & Appliances (4%)
Health & Hygiene (3%)
Other (3%)
Revenue by
Application
FY26
Highlights67

The diversified nature of Skellerup’s
customer base – in terms of geographies
as well as markets – allowed us to ride
out pockets of soft demand.
John Strowger
Chair’s Review
On behalf of the Board of Skellerup Holdings Limited, I am pleased
to present this Chair’s Review for the 2026 financial year (FY26).
I am pleased to report another very successful year for
Skellerup, one in which we continued to demonstrate
the strength, resilience and relevance of our business
model. The caution evident in my FY25 Review was
unfounded. Once again, we have achieved a number
of record results.
FY26’s net profit after tax (NPAT) before non-recurring
items was $64.2 million – a record result, up 18% on
the FY25 NPAT of $54.5 million. The after-tax effect of
non-recurring items was $3.5 million, bringing the
FY26 NPAT after non-recurring items to $67.7 million.
This result is off revenues of $390.1 million and
earnings before interest and tax (EBIT and before non-
recurring items) of $89.3 million (up 14% on FY25).
Stronger post-tax earnings have flowed through to
cash flow. The FY26 operating cash flow of $83.6
million was a record result too, up 26% on the prior
corresponding period.
The Group has again benefited from disciplined
execution, strong customer relationships and sustained
demand for high-performance products across our
core industrial and agricultural markets.
This year, contributions to the record results came
from both our business divisions (Industrial and
Agri). Stronger sales into potable water, wastewater,
dairy, footwear and sports and leisure applications
all contributed.
The diversified nature of Skellerup’s customer base –
in terms of geographies as well as markets – allowed
us to ride out pockets of soft demand. Once again, the
United States markets were a key contributor (38% of
total FY26 group revenues). As anticipated, we were
able to mitigate the impacts of tariffs there, through
a combination of sales growth, pricing, costing and
manufacturing initiatives. Like a number of others,
Skellerup was also a beneficiary of the US Supreme
Court’s ruling that certain tariffs imposed by the US
administration under the International Emergency
Economic Powers Act were not authorised. That relief
is likely to be temporary, and mitigation strategies will
again come to the fore.
In my letter to you last year I mentioned a likely
need to consider the development of “in market”
manufacturing capability, most obviously in the US.
I said that the luxury of a “wait and see” strategy was
“highly likely” to come to an end in FY26.
This ‘jolt’ has not materialised. We continue to target
expansion in our key offshore markets, having regard
to the product demand of key customers, but will
always seek to resource production in a manner which
optimises results for both Skellerup and our customers.
Skellerup Annual Report FY2689

We continue to invest – in people and in plant – for the
future. Total capital expenditure in FY26 was $15.1
million (up $5.9 million on FY25), comprising ongoing
investment in standardised machinery, additional
capability and product development. Standardisation
of processes will be a major platform for any expansion
of further manufacturing capacity overseas. The Board
is by disposition very supportive of capital expenditure
investment, where (of course) it stacks up.
We are in the early stages of a more deliberate
expansion of our markets in Europe and China.
Our preference in these markets is a direct path to
customers. In FY26 we purchased (at modest cost) one
of our Chinese dairy distributors. Early indications of
the attractiveness of our product offering in that market
are very encouraging.
We have also added additional people and resources
into Europe, but it is early days in that market.
We continue to explore potential opportunities to
accelerate expansion into our overseas markets,
through acquisition. With very modest debt levels and
a market capitalisation of circa $1.35 billion (as at 31
July 2026), there is clearly scope for a debt-funded
acquisition. As ever, though, we remain cautious about
the deployment of capital into acquisitions; a ‘build’
strategy is slower but will usually carry less risk.
In the past we have often talked about the strength
of Skellerup’s relationships with our OEM customers
– where we manufacture customer-branded
componentry on the customer’s behalf, for integration
into their products. Meeting customer requirements,
and solving their problems through our technical team,
creates strong relationships and embedded revenues.
While this remains a core part of what we do,
especially within certain business units, Skellerup-
branded products represent an increasing proportion
of our revenue stream, usually at better margins.
Accelerating investment in our own brands where
appropriate will continue to be a deliberate strategy.
Climate-related disclosures again comprise a
substantial part of this annual report. Our people
continue to undertake very effective work in this area.
Emissions reduction plans are now in place for five of
our largest facilities, and the actions implemented as
part of these plans are delivering sound environmental
and economic benefits. The revenue growth achieved is
being aided by investment in more efficient equipment,
which again helped reduce the intensity of our scope
1 and 2 greenhouse gas emissions during FY26. As a
reflection of the strong cash flows described above, we
continue to maintain a strong balance sheet. Net debt
(excluding lease liabilities) at the end of FY26 stood at
$2.0 million, down $10.4 million on the prior year-end.
This allows the Board to maintain a strong dividend
policy. The total FY26 dividend of 30.0 cents per
share equates to an estimated pay-out ratio of 91.6%
of normalised FY26 NPAT. This is entirely sustainable
considering historic and budgeted earnings, cash flow
and capital expenditure. Our approach to dividends
remains guided by the objective of providing
shareholders with an attractive return while retaining
sufficient flexibility to invest in growth, capability
and resilience.
Chair’s Review89

In FY27 we anticipate additional conscious investment
in business processes and resources, people and
market development that will likely reduce the rate
of growth relative to recent annual growth rates
for earnings and NPAT. As always, it is a case of
managing healthy near-term growth while investing for
the longer term. And, while not planning to fail, I (again)
caution that record results cannot continue ad infinitum.
We have, however, now achieved 10 consecutive years
of EBIT growth, a record which the investment markets
have certainly now recognised, and that is gratifying
for both the Board and management.
On behalf of the Board, I would like to thank our
Chief Executive Officer, Graham Leaming, the
senior leadership team and all Skellerup’s people
for their commitment and performance throughout
the year. While global uncertainty, foreign exchange
movements, tariffs and – in particular – raw material
availability have all loomed as potential headwinds
against FY26 profitability, management has responded
to each development with agility and aplomb. The FY26
results again reflect a very good performance by our
entire team.
I thank our shareholders for their support for, and
confidence in, Skellerup. The Board believes Skellerup
is well positioned for the future, with a clear strategy,
strong market positioning and a proven team capable
of delivering sustainable growth.
John Strowger
Independent Chair
Skellerup Annual Report FY261011

A decade of sustained growth
Across three distinct phases, Skellerup has built its foundations,
expanded its technical and manufacturing capability, and
increased investment to support continued growth.
Across each phase, we have developed capable leaders and teams, deepened our
materials expertise, invested alongside committed customers in products with clear
market potential, and maintained strong operational and financial discipline.
The disciplines behind our growth
EBIT
Index
Revenue
Index
100
121
127
129
172
203
218
221
238
272
100
114
117
119
133
151
158
157
168
185
Building the platform
for growth, including
finishing construction
of and opening our
flagship dairy design,
manufacture and
distribution facility
in Christchurch.
Expanding technical and material
capability, improving execution
of product development and
manufacturing operations to improve
margin value capture.
Increasing investment
in people, product
development and
equipment to accelerate
revenue growth and
maintain earnings
growth momentum.
Chair’s Review1011
F Y17FY18FY19FY20FY21FY22FY23FY24FY25FY26

What we do
North America (40%)
Australia (17%)
Asia (12%)
New Zealand (11%)
E u rop e (11%)
UK & Ireland (9%)
Industrial
Revenue by
Market
FY26
Potable Water & Wastewater (37%)
Roofing & Construction (24%)
Automotive & Machinery (8%)
Sport & Leisure (8%)
Exploration & Mining (7%)
Electrical & Appliances (6%)
Health & Hygiene (5%)
Other (5%)
Industrial
Revenue by
Application
FY26
The Industrial Division integrates multiple materials to
supply products used in potable water, wastewater, roofing,
construction and other critical industrial applications.
Industrial Division
Skellerup Annual Report FY261213

Skellerup uses its deep polymer material expertise to design and manufacture
critical products used in a wide range of everyday applications that often must
meet stringent food, drinking water, hygiene and safety standards.
The Agri Division is a world leader supplying essential consumables
for the global dairy industry and high-performance rubber footwear for
Agri, safety and lifestyle use.
Agri Division
New Zealand (35%)
North America (34%)
Europe (16%)
UK & Ireland (7%)
Australia (3%)
Asia (3%)
Other (2%)
Agri
Revenue by
Market
FY26
Dairy (79%)
Footwear (21%)
Agri
Revenue by
Application
FY26
What we do1213

This consistent growth in earnings is due to
our global team steadily and reliably focusing
on the design, manufacture and delivery of
the products our customers need.
Graham Leaming
CEO’s Review
The Skellerup team has delivered another excellent year for our shareholders.
In FY26 Skellerup’s sales revenue was a record $390.1 million, up 10% on the prior
year, on the back of strong contributions from both the Industrial and Agri Divisions.
The growth in revenue, along with improved margins,
delivered our 10th consecutive increase in normalised
earnings before interest and tax (EBIT) of $89.3 million,
a 14% improvement over the prior corresponding
period (pcp). This consistent growth in earnings is due
to our global team steadily and reliably focusing on the
design, manufacture and delivery of the products our
customers need.
Net profit after tax (NPAT) was $67.7 million. Adjusting
to exclude a non-recurring gain of $3.5 million
(discussed further on page 16), normalised NPAT was
a record $64.2 million – up 18% on the prior record
achieved in the pcp.
Cornerstones of Skellerup
We design and manufacture precision, engineered
products for demanding applications. Applying our
expertise to products that must meet or deliver high-
performance and high-conformance standards ensures
we build long relationships with outstanding customers
where trust is a key to ongoing business.
The foundation of most of our products is engineered
polymer. Our formulation and process skills mean we
not only maintain consistent high quality alongside
the capability to innovate but we are also able to
respond and adjust quickly to challenges arising
from regulation changes and geopolitical events
that impact our supply chains. We will continue to
invest in preserving and enhancing our technical
capability as the primary cornerstone of Skellerup’s
competitive advantage.
Our capability has enabled us to build a global
business with operations and people located in
New Zealand, USA, China, UK, Italy, Australia and the
Netherlands and major manufacturing partners across
the world, most notably in Vietnam. We believe in
having our key people situated within our operating
businesses, where markets and applications are fully
understood. This ensures best informed decisions
and that our development initiatives continue to
be driven by committed customers and/or a deep
understanding of the market potential. Our largest
development centres are in New Zealand and are
closely engaged with our people in market as well
as with our customers’ technical people; this ensures
the solutions we develop are based on a clear
understanding of needs.
Having our key people in market with a flat
organisation structure means we do not have, nor need,
a large head office. We have almost 850 people in our
global team – eight of whom are at our Head Office
in Auckland and five of these cover Group reporting,
treasury and tax, as well as with architecting and
supporting shared information systems. Tim and I are
focused on working with our team leaders to set and
implement our strategy, evaluate and allocate capital,
and uphold the model of capability and accountability
that is another cornerstone of Skellerup’s approach
to business.
Skellerup Annual Report FY261415

Results
The Industrial and Agri Divisions both achieved record
revenue and EBIT in FY26, overcoming the impact of
tariffs into the US market and supply-chain challenges
as a result of the conflict in the Middle East.
Industrial
The Industrial Division recorded its sixth successive
record EBIT of $56.6 million in FY26, an increase of
17% on the pcp due to revenue growth and improved
margins.
The USA market delivered the strongest growth in
FY26, up 12% on the pcp. Sales of products into potable
water and waste-water applications were well ahead
of the pcp. We sell a range of products into these
applications including pipe gaskets where demand
exceeded our expectation due to the superior quality
of our products and reliability of supply. Demand from
tapware manufacturers strengthened also and our
vacuum systems continue to lead the market. Sales of
products into flow-control products for heating, venti-
lation and air conditioning (HVAC) applications and
U-DEK
®
marine foam increased over the pcp as well.
In the UK and Europe, we again increased sales
into roofing and construction applications (solar
in particular). This market was also boosted by
increased sales of U-DEK
®
marine foam following
the establishment of our conversion and distribution
facility in the Netherlands in late FY25. Growth into
these applications more than offset the impact of softer
demand for products we sell into the automotive sector.
Sales in Australia, New Zealand and Asia increased
more than 7% over the pcp, and the weaker
New Zealand Dollar provided an additional boost,
resulting in aggregate Industrial Division revenue of
$262.8 million, up 9% on the prior year.
Agri
The Agri Division recorded its second successive
record EBIT of $39.6 million in FY26, an increase of
12% on the pcp.
Sales of essential consumables for the global dairy
industry increased again in FY26, up 15% on the pcp.
The US and European markets were key drivers, where
we increased sales of liners and tubing to original
equipment manufacturer (OEM) customers in both
regions and through our Conewango distribution
channel in the USA. Revenue increased in New Zealand
also, due to the economic strength of the dairy industry
impacting phasing of demand and growth in sales of
Thriver™ calf feeding teats. Demand for dairy milking
liners and tubing resulted in record production levels
at our New Zealand and UK facilities.
A consistent and
disciplined strategy
Approach for FY26
Sustain and enhance the people,
expertise, equipment and
financial strength that underpin
our performance.
Capability1.
Focus on markets and applications
where our capability and customer
insight create the most value.
Application and
market focus
2.
Deliver quality, reliability,
consistency and cost
competitiveness through capable
facilities, systems and teams.
Delivery3.
Build trusted relationships
and empowered teams that
identify, develop and scale new
opportunities.
Opportunity4.
5.
Maintain clear accountability,
efficient processes and
disciplined capital allocation to
deliver sustainable returns.
Accountability
CEO's Review1415

We have continued to invest in building capability
for product development and manufacturing
modernisation. These investments are delivering
immediate returns with more rapid development of
new products than previously achieved and expanded
capacity to efficiently meet the growth in demand.
Footwear revenue increased in FY26 too – up 5%
on the pcp. Increased sales of safety footwear
(particularly di-electric into the US market) was the
main contributor. Sales growth into the New Zealand
urban market was also achieved. A highlight late in
the year was the launch of our Meadow Lifestyle boot
for women in New Zealand during Q4. Demand has
been strong and customer feedback excellent. You can
read more about the product features and our plans
for this range in the case study adjacent. Our limited-
edition Pink Band gumboot in support of Breast Cancer
Foundation New Zealand (BCFNZ) was again very
popular (raising $90,000 for the BCFNZ).
Overall, Agri Division revenue was $128.4 million up
13% on the pcp.
Manufacturing and Supply Chain
Demand for dairy milking liners and tubing in
FY26 resulted in record production levels at our
New Zealand and UK facilities. The investment we
have made (and continue to make) in equipment at
our Wigram facility was critical to being able to deliver
on customer demand, alongside the contribution of
our people at all levels. The Middle East conflict
created significant challenges for our procurement
and formulation teams. Inventory levels held, rapid
action to secure alternative supplies, and in-house
formulation expertise meant we were able to avoid any
interruption to operations – an outstanding result in
early April 2026 which we expected might have been
difficult to achieve. Our key manufacturing partner
in Vietnam was similarly successful in maintaining
operational continuity.
Tariffs on the importation of products into the US
presented a significant challenge in FY26 as well.
Of course, the level of tariffs changed several times,
creating additional uncertainty. Careful management
of inventory ahead of (and during) their imposition,
together with management of costs and gradual
implementation of price increases, means we will start
FY27 having largely offset the impact of tariffs (based
on tariff levels in place at the end of FY26).
Other
A non-recurring post-tax gain of $3.5 million was
recorded in FY26. This item primarily comprises
insurance proceeds in relation to a fire in a section of
Skellerup Annual Report FY261617
For generations, Skellerup has been trusted for
footwear built with purpose, designed to perform
and protect in demanding environments. Today,
Skellerup footwear is not only worn on the farm,
but also in the trades, in the forests and mines, and
on the feet of those fighting fires and maintaining
electricity networks.
In May 2026 we took an important step in expanding
the Skellerup footwear portfolio with the launch
of Skellerup Lifestyle, entering a new consumer
category beyond our traditional work and rural
markets. The range debuted with the Meadow Ankle
Boot, a product that combines the quality, durability
and comfort associated with the Skellerup brand
in a format created for everyday wear. Meadow is
a women’s boot designed to transition seamlessly
from the garden and sports field to the street and
café – made for the rhythm of everyday life.
The launch has been well received by both
consumers and retail partners, providing
encouraging validation of our strategy to broaden
the reach of the Skellerup brand. Building on this
momentum, we plan to grow our export activities,
introduce the Meadow Knee Boot during FY27 and
continue developing the Lifestyle range to meet
consumer demand.
As with the Safety and Agri ranges, we also
see opportunities to extend the lifestyle range
internationally. Preparations are under way to
launch Skellerup Lifestyle in the United Kingdom
and Europe ahead of the northern hemisphere’s
winter season. This represents an important
milestone in the growth of our footwear business.
Skellerup Meadow
Case study

our extrusion line used to manufacture tubing at our
Wigram facility that occurred in 2025.
The equipment was damaged beyond repair.
Fortunately, no injuries were suffered, and we were
able to resume operation on an alternative extrusion
line promptly and at a higher utilisation, with no
negative impact on our customers. The gain recorded
reflects the anticipated insurance settlement net of the
book value of the equipment. This gain was partially
offset by the impairment of a leased property related
to a business acquired in FY19, which has since been
vacated.

Further details are included in the Financial
Commentary later in this report.
Looking Ahead
Our strategy to design and manufacture precision,
engineered products for demanding applications
will remain unchanged. We consider that the mix of
applications and markets we sell into, along with the
growth opportunities they present, will continue to
provide a strong counter to economic cycles. We will
continue to invest in people and equipment to make
sure we create excellent value for customers and
capture our fair share of the value created. Our future
success does not hinge on a single hero product: the
growth in Skellerup will continue to be the outcome
of our teams remaining focused on serving existing
customers well to win more of their business and
seeking new customers for the applications in which
we have a strong understanding of what is needed and
proven expertise to design and manufacture.
The investment in people and capability we have made
in the Agri business in recent years has enabled us
to innovate more quickly and extend our market and
product ambitions.
We hold a strong position, both with OEM customers
and our own branded products – most notably in the
US, NZ and Australia but also in Europe and Asia.
We plan to increase sales into Europe by establishing
distribution capability in early FY27. We see strong
opportunities for growth in South America and Asia
too. In late FY26 we established a technical sales team
in China to grow sales of our dairy products which
included taking on board customers formerly managed
by a distributor. We believe that by getting closer to
customers and demonstrating the performance of our
products we can grow more quickly in what is already
a sophisticated market which places value on quality,
reliability and productivity.
We expect our strategy of focusing product
development activity on high-performance and
productivity will deliver strong revenue growth in the
coming years.
CEO's Review1617
From our facility in Christchurch, New Zealand,
we design and manufacture essential dairy
consumables for some of the largest manufacturers
of milking equipment in the world alongside our
own Evolution, Conewango, VacPlus and Reflex
brands.
The milking liner is the critical consumable used
in the milking of cows as it is the only part of a
milking machine that directly contacts the cow’s
teat to stimulate milk production. The design, fit
and performance of the liner is not only vital to the
health and comfort of the cow, but also to the quality
of the milk and the value of subsequent products.
In recent years we have increased our investment
and capability in engineering development to
better support customers and bring new, innovative
products to market more quickly in consistently high
quality, while delivering improved performance
for farmers.
The two new Evolution ‘Driver’ liners are emerging
products from this investment providing strong
and immediate growth opportunity. These systems
both comprise a lightweight assembly with the
liner loaded in a recyclable single-use shell,
incorporating valuable features like strong anti-
twist functions and an extended functional barrel
length as well as eliminating the need for manual
dis- and re-assembly of liners and shells on farm.
This reduces costly milking equipment downtime
and labour requirements and improves animal
hygiene. We have initially launched these high-
performing systems in the US market with plans to
expand distribution to China and Australasia. Farm
trials in China have been successful and present a
compelling case for strong adoption.
Liner Evolution
Case study

On-farm trial results with innovative milking liner
systems in the US, New Zealand and China have
demonstrated measurable lift in milk production from
our Evolution rubber and silicone liners. By making
these available in single-use recyclable shells means
much shorter maintenance windows to change out
liners on farm – a very attractive benefit, particularly
to large-sized farms. Similarly, on-farm trials of our
Thriver™ calf feeding range in the US have proved
very successful, building our conviction that we can
gain a substantial share of this market.
The products manufactured by our Industrial Division
are used in a more diverse variety of applications,
reflecting the current potential in each market and the
capability we have.
Our largest market is the US. During FY26, we
strengthened our relationships with OEM customers,
met increased demand for existing products and
launched new products. We have added extra technical
sales resource to ensure we expand the already
strong pipeline of new business opportunity. Potable
water, wastewater and flow control continue to provide
significant growth potential for our Group.
Sales into roofing and construction applications
generated 24% of Industrial Division revenue in FY26.
Most of these products are sold under our DEKS brand.
Our historic focus has been on metal roofing systems.
In late FY26, supported by committed customers, we
expanded our range to include products for tile and
shingle roofing systems in the US. We also launched
a new lead-free product that eases installation
and improves cable entry management for solar
applications for the UK market. In addition, we have
several new products poised for launch into the UK, US
and Australian markets during FY27.
As a global business, moving products around the world,
geopolitical conflicts impacting supply chains and
changing trade barriers require careful management
and planning. To date, the geographic spread of our
manufacturing activity, value of our products, customer
relationships and management actions have enabled us
to overcome these hurdles. We will continue to evaluate
and consider the balance of where we manufacture
product relative to our end markets.
In recent years we have increased capital expenditure,
particularly in modernising our manufacturing
capability to ensure it is efficient, flexible and ready for
expansion into other markets if required. In FY26 our
capital expenditure was $15.1 million. This spend
and dividend payments totalling $52.0 million were
funded by a record operating cash flow of $83.6
million. This meant we closed the year with net debt
of $2.0 million, placing us in a strong position to
execute on organic growth opportunities ahead.
Skellerup Annual Report FY261819
We design and manufacture a range of essential
products that ensure safe, efficient and reliable
operation in potable water applications. Our
products seal and control flow in piping and mixing
valves used in tapware (faucets), showers and
appliances.
Water mixing valves play a critical role in large
commercial and residential buildings. They temper
circulating hot water to a safe lower temperature
before it reaches the tapware to ensure the safety
of the user.
During Q4, a new cartridge assembly for a major
OEM customer in the US commenced production.
The assembly incorporates precision-engineered
plastic and rubber components – including check
valves – all designed to meet strict potable water
standards. This cartridge simplifies the design
of mixing valves and is intentionally packaged
in a protective sleeve. This innovative sleeve
streamlines the installation of new valves and
simplifies the servicing of existing units.
Product integration for
potable water applications
Case study

Materials, product
design, tooling and
manufacturing
process knowledge
Deep technical
expertise
Development presence close
to customer and end-market
requirements
Tooling and processes designed
for demanding specifications and
repeatable manufacture
Equipment investment supports
scale, consistency and flexibility
In-market
development and scalable
manufacturing capability
Accountability, accuracy and
reliability built into production
Measurement and continuous
improvement reduce waste
and variation
Robust testing and quality
systems support conformance
and performance
Quality, reliability
and process measurement
Polymer-based products for
demanding applications
Formulations matched to demanding
performance requirements
and standards
Expertise across rubber, silicone,
engineered plastics, foams and
integrated materials
Products for precision,
high performance and
conformance applications
Customer requirements translated
into practical product design
Rapid prototyping, testing and
refinement based on deep
material knowledge
Product development focused on
performance, conformance and
manufacturability
Customer-focused
development delivering
innovation and performance
CEO's Review1819

Climate Reporting
This Annual Report includes reporting under the
New Zealand Climate-related Disclosure Regime.
We acknowledge the impact of climate change and
our responsibility to seek and implement solutions
for Skellerup.
During FY26, we again reviewed the risks and
opportunities we identified and reported on in
FY25. We did not identify any new risks – rather, we
undertook a deeper evaluation of some of the risks we
previously recognised, which resulted in a reduced
assessment of these risks being realised. Many of
Skellerup’s products are, and will continue to be,
important to responding and adapting to the impacts
of climate change. Following on from the emissions-
reduction plan for our dairy rubberware facility in
Christchurch developed in FY25, in the current year
we expanded this plan to include two facilities in
Auckland, one in the US, and one in China.
The intensity of scope 1 and 2 greenhouse gas (GHG)
emissions reduced for the fifth consecutive year in
FY26. As noted in prior years, as we grow our business
this decrease will not always be easy to achieve, but
we continue to invest in initiatives that will generate
incremental reduction in emissions and sound financial
returns. We have again reported on scope 3 GHG
emissions, which required a considerable amount of
time from our global team members.
You can review the opportunities and risks, a summary
of our transition and emissions-reduction plan and our
GHG emissions on pages 42 to 75 of this report.
Yo ur Te am
The results achieved in FY26 and the platform we have
in place for FY27 and beyond are the outcomes of the
diligence, accountability, innovation and energy our
people consistently deliver. We are well positioned
to overcome the challenges that we will inevitably
encounter and are ambitious about capitalising on the
opportunities ahead. We remain committed to continue
to develop and improve our products and business
to enable us to deliver great value for our customers
and increasing returns for you, our shareholders.
Thank you for investing in Skellerup.
Graham Leaming
Chief Executive Officer
Skellerup Annual Report FY2620
For many years DEKS North America has
maintained an almost singular focus on flashings
and fastenings for metal roofs. Flashings are
integral to ensuring the roof of a building is
watertight. Servicing customers with high-quality
products and excellent service has enabled us to
build a market-leading position in the US for metal
roofing systems used extensively for commercial
buildings but less significantly for residential
dwellings (less than 10 per cent of the market).
Consistency of quality and service is valued by
our customers, demonstrated by two of our largest
metal roof flashing customers urging us to develop
and supply them with an equivalent Dektite roof
flashing for shingle roofs. This is the predominant
roofing system for residential dwellings in the US
(more than 85 per cent of the market). The nature
of the shingle roofing system did not leave much
room to innovate, so in this instance we have
leveraged existing (metal roof ) product design,
trusted customer relationships and a competitive
manufacturing model to gain access for a critical
product for shingle roofing systems to almost 2,000
branches across the US. Launched in Q4 of FY26,
this product range is expected to provide a steady
stream of growth for DEKS and Skellerup over the
coming years.
DEKS roofing flashings
for the US
Case study

We are well positioned
to overcome the
challenges that we will
inevitably encounter
and are ambitious about
capitalising on the
opportunities ahead.
Graham Leaming
CEO's Review21

At the end of FY26 our team had grown to 838 strong across New Zealand,
Australia, the USA, China, the UK, Italy and the Netherlands. This geographic
spread brings with it a diverse range of skills alongside vast experience and
new ideas which we leverage throughout the Group.
Skellerup’s People
Recognising sustained contribution
We regard building on the long history of innovation
and enterprise established over 116 years as a
privilege to embrace in continuing to grow the
business. During FY26, we celebrated significant
milestones for many long-serving employees: One
employee reached 40 years’ service, three reached 30
years; and five employees reached the 25-year mark.
We recognised the accomplishment of these notable
milestones at on-site functions around the world.
Prioritising health and safety
We are committed to leading, educating and investing
time and resources in protecting our people and others
from accidental harm in our workplaces. Our Group
Health and Safety Management System (HSMS) has
been set up with the objective of keeping our people
safe and free from workplace injury. Our shared
goal is zero harm, and we constantly seek and make
improvements in pursuit of this objective.
Every Skellerup site within the Group has an active
health and safety (H&S) committee. They maintain an
annual plan of activities and improvements, including
internal and external audits, and regularly review
hazards, designed to keep their workplaces safe.
Each committee meets monthly to assess priorities
and measure progress. Overall responsibility for H&S
on each site is held by the most senior manager at
that location.
A programme of internal and peer reviews as well
as external H&S audits is in place across the Group.
These reviews utilise staff with expertise relevant to
the activities at a site and experience across similar
businesses. This helps share best practice and
contribute to continued improvement. The independent
expert perspective brought by external audits provides
an opportunity to highlight risks that may not otherwise
be detected and enables us to take actions to eliminate
or mitigate any new risks the reviews identify.
Despite our systems, training, procedures and
audits, incidents occur. Investigations are completed
and reports are prepared for every injury, medical
treatment and near hit. The emphasis of each
investigation and report is on determining root cause
and the changes implemented to eliminate and, if not
possible, reduce or mitigate the risk of recurrence.
The Group H&S Coordinator works closely with the
CEO to ensure our HSMS is effective. This function
includes reviewing and approving actions in relation
We regard building on the long history
of innovation and enterprise established
over 116 years as a privilege to embrace
in continuing to grow the business.
Skellerup Annual Report FY262223

1 The total injury rate (TIR) is the total number of serious-harm injuries,
lost-time injuries (LTI) and medically treated injuries (MTI) multiplied
by 2,000 (the estimated annual hours worked by an individual), divided
by the actual year-to-date hours worked, annualised and expressed as
a percentage. The TIR represents the percentage likelihood of being
injured on each site. Zero TIR is the benchmark that all sites are striving
to achieve. LTIR is an equivalent measure for lost-time injuries only.
NHR is an equivalent measure for near hits only.
to all incident reports, overseeing the completion of
external and peer audits (and timely implementation
of improvements identified) and reviewing site hazard
registers. These activities enable prompt sharing of
best practice, incidents, trends and improvements
directly and via the Group Quarterly Safety Bulletins
and periodic Safety Alerts. This critical linkage
prompts our teams to consider similar risks and
hazards and, importantly, elimination or mitigation
actions to prevent or reduce the likelihood of similar
incidents on their sites.
The CEO holds overall responsibility for Group
H&S with oversight provided by the Board’s H&S
Committee, who meet at least three times each year.
A Group H&S Report is submitted by the CEO and
reviewed at every H&S Committee Meeting or Board
meeting. At least one meeting is held at a Skellerup
operating site each year. During FY26, this was held
at our largest facility in Christchurch and provided the
opportunity for Board members to observe activities,
meet and discuss with our managers and teams, and
assure themselves of our plans and behaviours.
Our most significant global sites are ISO 45001
certified. This provides an internationally recognised
framework for managing occupational H&S risks.
At the end of FY26 seven of our manufacturing
sites – comprising 91% of our global personnel on
manufacturing sites – hold this certification. One of
our largest distribution facilities also carries ISO
45001 certification.
Ultimately, the success of our programmes is measured
by the number of injuries and incidents that occur.
Our total injury rate
1
(TIR) and our lost-time injury
rate (LTIR) in FY26 were up slightly on the prior year.
Our near-hit rate (NHR) reduced in FY26 again.
Details are shown in the graphs above. For the eighth
successive year, we did not record any serious-harm
injuries or fatalities.
Working arrangements
We recognise and embrace the opportunity to retain
our best and attract new talent by offering differing
employment arrangements including various shift
patterns, as well as permanent part-time and hybrid
roles. The key criterion is always that the arrangement
is both good for Skellerup and good for the employee.
We adapt and change to meet the needs of our
customers and our people and to optimise returns for
our shareholders. Some of our sites operate four-day,
ten-hour shifts, and have differing start and finish times
to more effectively and efficiently meet the needs of
customers and provide better working arrangements
for our people.
1.8
FY26
1.6
FY25
1.5
FY24
FY23
1.9
FY22
2.4
Total Injury Rate
(%)
1.2
FY26
1.1
FY25
0.5
FY24
FY23
1.0
FY22
1.6
Lost-time Injury Rate
(%)
0.8
FY26
1.0
FY25
2.2
FY24
FY23
2.0
FY22
3.9
Near-hit Rate
(%)
Skellerup’s People2223

Mechanisation and automation of manufacturing
activities and changes in customer demand impact on
the way we work too. This means that as we grow our
business, the number of people we need increases at a
slower rate and the make-up of our teams’ change.
We need more people to design, implement and
support new products and equipment, and more
people to secure new business and service customers,
but smaller increases in operating personnel. We have
had no large-scale redundancies within the Group over
the past decade. At the end of FY26 our global team
stood at 838 people (FY25: 809).
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, Bribery and Corruption, Diversity
and Inclusion, and Information Security. In FY26, this
training was again delivered by a video prepared
by the CEO and CFO, with local business leaders
initiating subsequent discussion – including how staff
respond and report in the event they do witness or
suspect behaviour inconsistent with our Code of Ethics
and Policies. Key leaders and staff also undertake
annual bribery and corruption training.
11.0
FY26
12.0
FY25
16.0
FY24
FY23
20.0
FY22
21.0
Employee Turnover
(%)
Skellerup’s global footprint includes working with our
manufacturing partners and international suppliers.
These partners and suppliers are important to
the successful delivery of critical products to our
customers. Our systems, processes and people ensure
our standards are met in all respects and include
seeking assurance that our supply chain is free of
modern slavery. During FY26, we again sought and
received confirmation of compliance with our Supplier
Code of Conduct from our leading global suppliers,
and we did not receive any reports of, nor identify any
instances of, modern slavery within our supply chain.
A diverse workplace
We do not discriminate on the basis of gender or
gender identity, race, nationality, 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 31 and our entire team is shown on
page 5. Our 838-strong team identifies as 52% male
and 48% female.
Cyber security
We complete an annual cyber security risk assessment
of all businesses within the Skellerup Group to ensure
our platforms and security are at the required standard
and, if there is any gap, to implement a remediation
plan to eliminate. 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 leaders and teams continue to combine innovation,
consistency and tenacity to deliver high-performing
and quality products for our customers and excellent
returns for our shareholders.
FY26
838
Employees
FY25
809
Employees
Total Employees (89%)
Voluntary Turnover (10%)
Involuntary Turnover (1%)
Total Employees (88%)
Voluntary Turnover (11%)
Involuntary Turnover (1%)
Skellerup Annual Report FY262425

Skellerup’s People2425

Board of Directors
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, having specialised
in corporate, contract and securities
law, mergers & acquisitions as well as
heading the firm’s China desk. He was
named NZ Deal Maker of the Year at
the 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 companies,
Sanford Limited and KMD Brands
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)
David was appointed to the Skellerup
Holdings Board in August 2017. He
is currently Executive Chairman of
Rural Equities Limited and Managing
Director of private investment
company H&G Limited. David is a
former investment banker with over
25 years’ experience as a director of
listed companies. He has expertise
across a broad range of industries
having previously been a director of
Fruitfed Supplies Limited, Williams
& Kettle Limited, Tourism Holdings
Limited, Acurity Health Group Limited,
PGG Wrightson Limited, Red Steel
Limited, Webster Limited and NPT
Limited. David is a member of the
Audit, Health and Safety, Remuneration
and Nomination Committees.
Independent Director
David Cushing
(BCom, ACA)
Alan was appointed to the Skellerup
Holdings Board in August 2016. He has
considerable experience governing
and leading businesses and sporting
organisations. Alan is currently
Chairman of the New Zealand
Community Trust. He is also
a director of Oceania Healthcare
Limited. 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, DistFInstD)
Skellerup Annual Report FY262627

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

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

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

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

Regulatory (5/6)
Experience across regulatory environments

Human Resources (5/6)
Leading team development, performance
and remuneration structures for
international business

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

The experience and diverse range of skills across Skellerup’s Board ensures our
plans are robust and pursued with vigour and sound business discipline.
Paul was appointed to the Skellerup
Holdings Board in August 2020.
He was Senior Vice President - Sales
and Marketing for Fisher & Paykel
Healthcare for more than 20 years and
has global business experience with
proven success growing international
markets and leading multi-disciplinary
teams across 50 countries. Paul is
currently a Director of Aroa Biosurgery
Limited. 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, financial and
property. Rachel is currently a director
of New Plymouth Airport, The Property
Group Limited and Fairway Resolution
Limited and was previously a director
of Fulton Hogan Limited. She is Chair
of the Sustainability Committee and is
a member of the Audit Committee.
Independent Director
Rachel Farrant
(BCom, PGDipCom, FCA, CFIoD)
David was appointed to the
Skellerup Holdings Board in
November 2006. He led the Group
as CEO for over 12 years during
which time it achieved significant
revenue and earnings growth by
focusing on designing and delivering
critical engineered products for OEM
customers. In March 2022, David was
recognised as CEO of the Year in
the Deloitte Top 200 Awards. David
is currently CEO and a director of
Sanford Limited and a non-executive
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 Directors2627

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

Te chnolog y (5/6)
Strong technological experience and
development and protection of IP

This section of the Annual Report outlines our corporate governance
structures and processes and how they were applied during the year.
Corporate Governance
This Corporate Governance statement was approved
by the Board of Skellerup Holdings Limited (Skellerup,
or the Company) on 19 August 2026. 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 confidence 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
31 March 2026 (the NZX Code) for the financial
year ended 30 June 2026 (FY26). Skellerup is in full
compliance with all recommendations of the NZX
Code for FY26.
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 financial
year ended 30 June 2026 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 conflicts
of interest, conduct, compliance with all applicable
policies, laws and regulations, confidentiality, the
offering and acceptance of gifts and the use of the
Group’s property, assets and corporate information.
Skellerup’s Code of Ethics is reviewed annually by
the Board of Directors; the last review was conducted
in May 2026.
Skellerup Annual Report FY262829

Skellerup communicates its Code of Ethics and where
to find it to Directors and employees, explaining the
Code’s purpose and the mechanism for reporting
any unethical behaviour. During FY26, the CEO and
CFO prepared a video presentation on the Code of
Ethics, together with other key Group policies. This
presentation was made available to all employees
to be trained on the Code of Ethics and other key
Group policies during June 2026. Group and Business
Managers then confirmed training attendance back to
the CFO. The Code of Ethics and video presentation are
available to all employees on Skellerup’s intranet site.
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 FY26.
Skellerup is committed to ensuring its Directors and
employees understand its policy on and rules for
dealing in Skellerup ordinary shares or any other
quoted financial products issued by Skellerup or
derivatives thereof. Skellerup’s Financial Products
Trading Policy notes that insider trading is always
prohibited and provides examples of material
information to assist Directors and employees with
compliance. It imposes further restrictions on Directors
and senior management by permitting trading only in
prescribed trading windows (unless an exemption is
granted by the Board) and requires such persons to
seek consent for any trading. The policy is available
on the Company’s website. Details of Directors’
shareholdings as at 30 June 2026 are set out in the
Shareholder Information section on page 122.
Principle 2 – Board Composition
and Performance
Skellerup complies with the recommendations
of Principle 2.
The Board has adopted a written Board Charter, which
sets out the roles and responsibilities of the Board and
distinguishes and discloses the respective roles and
responsibilities of the Board and management. Written
agreements have been entered into for all Director
appointments since 2017.
The members of Skellerup’s Board collectively provide
the broad range of strategic, business, commercial and
financial skills and knowledge, and the independence
and experience required to lead and govern the
Company effectively.
The Board regularly reviews its performance and
composition, including the performance of its directors
and committees, to ensure that it has the range of
capabilities required.
The Board recognises that 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 26 and 27.
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 by the
Board since the previous annual meeting must also
retire and is eligible for re-election.
Currently, the Board comprises five non-executive,
independent Directors and one non-executive Director.
The independence of Directors is reconsidered at least
annually. Skellerup’s Board most recently reviewed
each Director’s independence at its Board Meeting
as at 30 June 2026. Having regard to the NZX Listing
Rules and the NZX Code, five of the six non-executive
Directors have been determined to be independent.
David Mair is not considered independent as he is the
former CEO of the Company, having resigned on
31 March 2024. Mr Mair continues on the Board
as a non-executive director.
In assessing independence, the Board has had regard
to all relevant factors and each of the Code Factors
set out in Table 2.4 of the NZX Code, including
whether each Director is free of any interest, position
or relationship that may materially interfere with the
exercise of independent judgement. The Board also
takes Director tenure into account in considering
independence. The NZX Code recommends that
issuers consider the effect of tenure on independence
after 12 years of service.
None of the factors in Table 2.4 applies to any of the
independent Directors. Each independent Director
has confirmed to the Board that they are satisfied that
they are independent under the NZX Listing Rules
and Corporate Governance Code, specifically having
considered the requirements of NZX Code Factor 2
(which applies where a director derives a substantial
portion of his or her annual revenue from Skellerup)
at a meeting held on 28 May 2026.
Corporate Governance2829

See pages 26 and 27 or the Company’s website for more information on the tenure, skills and experience
of Skellerup’s current Board. As at the date of this Annual Report, the Directors, including the dates of their
appointment and independence, are:
Board Appointment and Independence – 1 July 2025 to 30 June 2026
DirectorQualificationsGender
Date of
Appointment
Tenure
(completed years)
Independence
John StrowgerLLB (Hons)Male04 March 201511Ye s
David CushingBCom, ACAMale21 August 20178Ye s
Rachel FarrantBCom, PGDipCom, FCA, CFIoDFemale02 May 20224Ye s
Alan IsaacCNZM, BCA, FCA, DistFInstDMale01 August 201610Ye s
Paul Shearer BComMale21 August 20205Ye s
David MairBE, MBAMale29 November 200619No*
*David Mair is not independent because he is the former CEO of Skellerup.
The Board Charter requires that the Chair be an
independent, non-executive Director and that the
roles of the Chair and CEO are separate. The Chair
is currently an independent, non-executive Director
and is also considered to be independent of the CEO.
The table on page 33 shows each Director’s Board
Committee memberships, the number of meetings
of the Board and its Committees held during the
year and the number of meetings attended by
each Director. Minutes are taken of all Board
and Committee meetings.
The Board is responsible for managing conflicts
of interest identified by Directors. Each Director is
responsible for minimising the possibility of any
conflict of interest as regards their involvement with
the Company by restricting involvement in other
businesses that would likely lead to a conflict of
interest. A Directors’ interests register is maintained
by the Company. Particulars of the entries made
in the interests register during FY26 are disclosed
in the Directors’ Disclosures section on page 122.
Directors are not required to own shares in the
Company, although five of the six Directors are
currently shareholders of Skellerup. Refer to page 122
for details of the current shareholdings of Directors.
Board procedures ensure that all Directors have
the information needed to contribute to informed
discussions and decisions consistently and to carry
out their duties effectively. Senior management makes
direct presentations to the Board as required to
give the Directors an understanding of management
strategies, priorities, style and capabilities. Directors
also visit Skellerup’s facilities throughout the world as
part of their ongoing engagement to ensure they are
familiar with all aspects of the business of the Group.
Training is made available to Directors, and in FY26,
the Directors participated in training on a wide range
of issues.
Skellerup has a written Diversity and Inclusion Policy in
place. Diversity at Skellerup includes (but is not limited
to) gender, race, nationality, ethnicity and cultural
background, disability and physical capability, age,
sexual orientation, and religious or political belief.
A gender composition table of the Skellerup Directors,
officers and management is included on page 31, and
a graph for the Group’s entire workforce is on page
5. Skellerup maintains a merit-based environment
which provides equal opportunity for development
and recognition based on performance and a flexible
and inclusive work environment that values differences
that create value. Skellerup equitably remunerates
equivalent roles.
Skellerup’s Diversity Policy requires measurable
objectives to be set by the Board and reviewed
annually. For FY26, Skellerup set measurable
objectives and reports progress as follows:
1. No discrimination
Skellerup aims to operate an inclusive workplace
where employees are not discriminated against on the
grounds of gender, gender identity, sexual orientation,
colour, race/nationality/ethnicity/cultural background,
disability, age, or religious beliefs. Group and business
unit leaders are required to confirm that no such
discrimination has taken place within their areas of
responsibility, as part of the annual remuneration
review process, which takes place annually in June and
July. In FY26, Skellerup again adopted a target of zero
complaints/findings of harassment, discrimination
or victimisation. No such incidents were reported
in FY26 (FY25 – none).
Skellerup Annual Report FY263031

Gender and Diversity as at 30 June 2026
DirectorsOfficersManagement
Self-identify as:202620252026202520262025
Male55222624
Female11--108
Gender diverse------
Total66223632
2. Flexible workplace environment
Skellerup aims to provide a workplace that
accommodates flexible working arrangements to
encourage diversity in our workforce. Our goal is to
ensure that workplace arrangements do not impede
the retention of existing employees or the attraction
of new employees. Supported by a Working from
Home Policy, flexible workplace arrangements
are implemented throughout the Group where
suitable, to meet the needs of the business and the
circumstances of employees. These arrangements
include reviewing shift working hours for operating
activities and part-time employment and working-
from-home arrangements for certain roles. In recent
years, Skellerup moved operating hours at several
manufacturing sites to four-day, ten-hour shifts, which
more effectively and efficiently meets the needs of our
business and provides an additional clear non-working
day for our people. We plan to consider similar
arrangements for other facilities in the future. As of
30 June 2026, the Group employed 42 employees on
permanent part-time arrangements and 30 employees
on hybrid working-from-home arrangements.
3. Pay equity
Skellerup is committed to ensuring all employees
are paid equitably. We deploy a skills-based model
in our manufacturing facilities, which strengthens the
effectiveness of our teams and ensures employees
are rewarded in accordance with the skill level they
achieve and maintain. At each annual salary review,
our target is for there to be no equity remuneration
issues arising. At the last annual salary review in
June and July 2026, business unit leaders reviewed
and confirmed that all roles were clearly defined,
and that remuneration was based on relevant skills,
experience, responsibility, effort and performance,
independent of the person in the role. No equity issues
arose from this review. Leaders are also empowered
to monitor performance, development and changes in
the scope of roles so that remuneration changes can be
recommended and considered outside of the annual
salary review. Recruitment for new or replacement
roles is based on documented job descriptions, with
the assistance of external agencies to establish a
shortlist of candidates that meet the requirements of
each role and to provide an insight into the market level
of remuneration for each role.
Principle 3 – Board Committees
Skellerup complies with the recommendations
of Principle 3.
The Board has appointed five Board Committees to
assist in carrying out its responsibilities effectively,
each of which operates under a written charter. The
Board regularly reviews the performance of each
standing Committee against its specific written charter.
The delegated responsibilities, powers and authorities
of these Committees are described below.
1. Audit Committee
The Audit Committee comprises four non-executive,
independent Directors, one of whom is appointed
as Chair. Other Directors are permitted to attend
meetings of the Audit Committee. The CEO, the Chief
Financial Officer (CFO) and representatives of the
external auditors attend by standing invitation of the
Audit Committee, unless the Chair requests otherwise.
The Audit Committee meets a minimum of four times
each year. Its responsibilities include (but are not
limited to):
• Advising the Board on accounting policies, practices
and disclosures;
• Reviewing the scope and outcome of the external
audit and the performance of the auditors; and
• Reviewing the annual and half-yearly statements
before approval by the Board.
The Audit Committee reports the proceedings of each
of its meetings to the full Board.
The current composition of the Audit Committee is
Alan Isaac (Chair), John Strowger, David Cushing and
Rachel Farrant. The members of the Audit Committee
have a broad range of commercial, financial and
risk management experience, as well as relevant
qualifications, as outlined on pages 26 and 27.
Corporate Governance3031

The Chair is both an independent director and has an
accounting background. The Chair does not have any
association with Skellerup’s external audit firm, EY.
2. Health and Safety Committee
The Health and Safety (H&S) Committee comprises
three non-executive, independent Directors, one of
whom is appointed as Chair, plus one non-executive
Director. Other Directors are permitted to attend
meetings of the H&S Committee. The CEO and
CFO also attend meetings at the invitation of the
H&S Committee.
The H&S Committee meets a minimum of three
times each year. Its responsibilities include:
• Providing leadership and policy for H&S
management within the Group;
• Advising the Board on H&S strategy and policy
and specifying targets to track performance;
• Reviewing management systems to ensure that
they are appropriate to manage the hazards and
risks of the business; and
• Monitoring and reviewing performance by
specifying and receiving timely reports on incidents,
investigations and resultant actions and with the
assistance of internal and external audits.
The H&S Committee reports the proceedings of each
of its meetings to the full Board. The current
composition of the H&S Committee is John Strowger
(Chair), David Cushing, Paul Shearer and David Mair.
3. Sustainability Committee
The Sustainability Committee currently comprises
three non-executive, independent Directors, one of
whom is appointed as Chair, plus one non-executive
Director. Other Directors are permitted to attend
meetings of the Sustainability Committee. The CEO
and CFO also attend meetings at the invitation of the
Sustainability Committee.
The Sustainability Committee meets a minimum of
three times per year. Its responsibilities include:
• Assisting the Board in setting a sustainability
strategy that captures the material issues relevant
to Skellerup and creates long-term value;
• Guiding the development and implementation of
sustainability policies, initiatives, programmes and
activities;
• Considering current and emerging sustainability-
related matters that may affect Skellerup and its
business, operations or performance and making
recommendations;
• Ensuring alignment between community
engagement and investment initiatives with
sustainability and business objectives;
• Ensuring appropriate reporting mechanisms are in
place as well as processes to assess the effectiveness
of any sustainability policies and initiatives; and
• Monitoring compliance with any relevant
sustainability policies and reviewing the alignment
of Skellerup’s activities with its commitment to
sustainability matters.
Skellerup Annual Report FY263233

The Sustainability Committee reports the proceedings
of each of its meetings to the full Board. The current
composition of the Sustainability Committee is
Rachel Farrant (Chair), Alan Isaac, Paul Shearer
and David Mair.
4. Remuneration Committee
The Remuneration Committee comprises four non-
executive, independent Directors, one of whom is
appointed as Chair. Other Directors are permitted
to attend meetings of the Committee.
The Remuneration Committee meets as required to:
• Review the remuneration packages of the CEO
and senior managers; and
• Make recommendations to shareholders concerning
non-executive Directors’ remuneration packages.
Remuneration packages are reviewed annually.
Independent external surveys are used as a basis for
establishing competitive packages. The CEO and CFO
only attend Remuneration Committee meetings at the
invitation of the Committee.
The current composition of the Remuneration
Committee is John Strowger (Chair), Alan Isaac,
Paul Shearer and David Cushing.
5. Board Nomination Committee
The Board Nomination Committee comprises two
non-executive, independent Directors, one of whom is
appointed as Chair. Other Directors are permitted to
attend meetings of the Board Nomination Committee.
It meets as required to recommend new appointments
to the Board.
Board composition is regularly reviewed by the full
Board and the Board Nomination Committee to ensure
the collective skillset is appropriate for the Group and
to ensure appropriate succession planning.
The current composition of the Board Nomination
Committee is John Strowger (Chair) and David Cushing.
Board and Committee Attendance – 1 July 2025 to 30 June 2026
DirectorBoardAudit Health & SafetySustainabilityRemunerationNomination
John Strowger8 of 84 of 44 of 4N/A2 of 2None
David Cushing6 of 82 of 43 of 4N/A2 of 2None
Rachel Farrant8 of 84 of 4N/A3 of 3N/AN/A
Alan Isaac8 of 84 of 4N/A3 of 32 of 2N/A
Paul Shearer 8 of 8N/A4 of 43 of 32 of 2N/A
David Mair7 of 8N/A3 of 42 of 3N/AN/A
Skellerup has a Takeover Response Policy in place.
The purpose of the policy is to ensure that Skellerup
is well prepared for an approach relating to a control
transaction and, therefore, it will be better able to
control the response process and respond to any
approach in a professional, timely and coordinated
manner and the best interests of Skellerup and its
shareholders. The Takeover Response Policy includes
the option of establishing an independent control
transaction committee, and the likely composition
of such a committee should it be required.
Principle 4 – Reporting and Disclosure
Skellerup complies with the recommendations
of Principle 4.
1. Financial Reporting
The Board demands integrity in financial reporting and
in the timeliness and balance of information disclosed.
The financial progress of Skellerup’s two divisions is
reported separately to the Board each month to enable
divisional financial performance to be reviewed in the
context of the Company’s strategies and objectives.
Monthly reporting also provides information on H&S,
key opportunities, personnel, customers and suppliers,
risks facing the business, and the steps being taken to
optimise outcomes.
The Audit Committee oversees the quality and
integrity of external financial reporting, including the
accuracy, completeness and timeliness of financial
statements. The Company seeks to provide clear,
balanced and objective financial statements and
recognises the value of providing shareholders with
financial and non-financial information, including
environmental, economic and social sustainability risk
management, as reported in this Annual Report.
Management accountability for the integrity of the
Company’s financial reporting is reinforced in writing
by the certification of the CEO and CFO to the Board
that the financial statements fairly present the financial
results and position of the Group.
Corporate Governance3233

2. Non-financial Reporting
The Company combines its non-financial
reporting within its Annual Report, recognising the
interdependence of financial and non-financial matters
(including climate-related matters) to the long-term
sustainability of the business. Non-financial reporting
disclosures (other than scope 1 and 2 greenhouse gas
(GHG) inventories) are not subject to external review.
These disclosures are compiled by employees with the
appropriate knowledge and experience and reviewed
and approved by the CFO and CEO. Evaluation of the
Group’s performance against its non-financial targets
is included throughout this report.
The Company is pleased to present its third climate-
related disclosures in line with the mandatory climate
reporting under the Climate-related Disclosures (CRD)
regime in New Zealand established by the External
Reporting Board (XRB). For the Group’s FY26 Climate
Statements, see page 42.
The Company continues to develop its wider
Environmental, Social Sustainability and Governance
(ESG) Framework and to pursue ESG initiatives on a
prudent and commercial basis.
3. Continuous Disclosures
The Company has a written Continuous Disclosure
Policy and clear processes in place to ensure
compliance with the continuous disclosure
requirements that come with being a listed company.
This policy is reviewed annually and circulated to
Directors and managers, along with further guidance
on the application of the policy and additional
reminders about its purpose and importance.
Continuous disclosure is a standing agenda item
for each Board meeting. At each meeting, the Board
considers whether there is any relevant material
information that should be disclosed to the market
and minutes the outcome of that consideration,
whether or not any disclosure obligation is identified.
Principle 5 – Remuneration
Skellerup complies with the recommendations
of Principle 5.
This section outlines the Group’s overall remuneration
governance and strategy for the year ended 30
June 2026 and provides detailed information on the
remuneration arrangements in place for the Directors,
CEO and other executives. This disclosure is aligned
with the NZX Remuneration Reporting Template for
Listed Issuers published by the NZX in December 2023.
Remuneration Governance
Skellerup has a Board Remuneration Committee
comprised of a minimum of three independent non-
executive Directors, one of whom is elected by the
Board as chair of the Committee. Membership of
the Remuneration Committee and the attendance of
members at Committee meetings are listed on page
33. Management only attends Remuneration Committee
meetings by invitation.
The Remuneration Committee operates under a
written Charter, outlining its membership, procedures,
responsibilities and authority. The Remuneration
Committee Charter is available to view on the
Company’s website.
The Remuneration Committee is responsible for:
• Reviewing and recommending changes to the
remuneration structure and policy of the Group,
including Directors’ fees,
• Reviewing the remuneration packages of the
CEO and senior managers reporting directly
to the CEO, and
• Reviewing the Group Diversity and Inclusion Policy,
the diversity objectives and achievement against
these objectives.
Skellerup has a written Remuneration Policy in
place, which is available on the Company’s website.
The Remuneration Policy outlines the remuneration
principles that apply to the Directors and senior
managers of Skellerup to ensure that remuneration
practices are fair and appropriate for the Group,
and that there is a clear link between remuneration
and performance. The guiding principles of this
policy are that the remuneration of Directors,
officers and managers will be transparent, fair
and reasonable to meet the needs of the business
and shareholders. Skellerup does not make
discretionary sign-on, retention or departure
payments to incoming or existing employees
(including non-executive Directors).
The Remuneration Policy may be amended from
time to time and is reviewed at least annually by
the Remuneration Committee. The Group has also
established several additional key policies to support
a strong governance framework.
Disclosure of employees (other than employees who
are Directors) who received remuneration and any
other benefits in their capacity as employees, the
value of which was or exceeded $100,000 per year,
in brackets of $10,000, as required by the Companies
Act 1993, is included on page 38.
Skellerup Annual Report FY263435

No loans or other forms of financial assistance have
been provided to the CEO or any other executives or
non-executive Directors of the Skellerup Group.
Executive and Employee Remuneration
Executive and employee remuneration may be
comprised of a fixed and at-risk component, depending
on the scope and complexity of the role.
Fixed Annual Remuneration
Fixed annual remuneration includes base salary
and employer superannuation contributions, where
provided. Base salary is determined by the scale
and complexity of the role. The Group undertakes
remuneration reviews annually and as needed,
informed by an assessment of relative external market
data and organisational context.
Short-term Incentives (STI)
Senior executives’ remuneration comprises a
combination of fixed and at-risk components. Payment
of the at-risk component is linked to exceeding
the previous best annual financial performance in
the areas of the business for which each executive
is responsible or, in some circumstances, the
achievement of specific targets. The goals and targets
set in each category are specific, objective and
measurable, such that there is an accurate judgement
each year as to whether the goal has been achieved
or not. The STI earned is paid as cash remuneration.
The CEO approves (with notification to the
Remuneration Committee) the annual STI payments
for all entitled staff other than the CEO and CFO. STI
payments are fully accrued in the year to which they
relate. The Board approves the annual STI payments for
the CEO and CFO and their targets for the year ahead.
In addition to the STI scheme, ad-hoc bonus payments
may be made to any employee where certain outcomes
are considered to positively impact the performance
of the Group. These payments are only made with the
express approval of the CEO.
Performance, Development and Remuneration Review
Performance and development reviews are completed
to inform decisions around remuneration adjustments.
The remuneration review process also includes
consideration of market information and, in the case of
employees under Collective Employment Agreements,
negotiations with unions.
CEO Remuneration
The CEO’s remuneration consists of fixed remuneration
and variable (at-risk) remuneration in the form of a
short-term incentive (STI) and long-term incentive (LTI)
scheme. This structure is reviewed annually by the
Remuneration Committee and is subject to approval
by the Board.
Total remuneration paid to the CEO in FY26 and prior
financial years, together with a description of the
share-based LTI scheme in place for the CEO,
is detailed as follows.
Fixed Annual Remuneration
The fixed annual remuneration of the CEO
includes base salary and employer superannuation
contributions, where provided. Base salary is
benchmarked against comparable listed companies.
The latest benchmarking exercise was completed by
the Board in March 2024.
Short-term Incentives (STI)
The CEO’s at-risk remuneration includes an
STI scheme that is directly linked to the overall
financial and operational performance of the Group.
Achievement of the STI is connected to exceeding
the previous best annual financial performance of the
Group under the CEO’s leadership, measured based
on earnings before interest and taxes (EBIT) adjusted
to exclude certain non-recurring items of income and
expense and changes in the composition of the Group,
such as acquisitions and divestments. The targets set
are specific, objective and measurable, such that there
is an accurate judgement each year as to whether the
CEO Remuneration
$000
Fixed SalaryKiwisaverSTI
1
SubtotalLTITotal
Graham Leaming

FY26 769 31 585 1,385 - 1,385
Graham Leaming

FY25 704 21 294 1,019 - 1,019
1 The FY26 STI was accrued but not paid at 30 June 2026.
Corporate Governance3435

target has been achieved or not. The STI earned is paid
as a taxable cash bonus. As the STI scheme is a profit
share scheme, there is no cap on the maximum amount
payable under the arrangement.
The FY26 STI is the amount assessed as earned in
FY26 but will be paid in FY27, as the assessment of
the STI performance was made after the FY26
reporting date.
Long-term Incentives (LTI)
The Company operates an LTI scheme for the benefit of
the CEO and other senior executives. The LTI scheme
is intended to reward and retain key employees
(including the CEO), drive longer-term performance
and decision-making, and align incentives with the
interests of shareholders.
The LTI scheme is a share option scheme which
permits the Board to grant options to acquire fully
paid shares in the Company. Upon exercise, provided
they remain employed, option holders will be issued
one share per option exercised. The exercise price
is payable by the option holder before shares are
issued or transferred. Alternatively, on exercise,
CEO Long-term Incentive Scheme
Financial
Year of Grant
Number of
Options
Price per
Option
NZ$
Exercise
Period
Share Price
at Exercise
NZ$
Value
at Exercise
$000
Graham LeamingFY26300,000
2
5.0101 Sep 2028 to 01 Nov 2028N/AN/A
Graham LeamingFY25300,000
3
4.8501 Sep 2027 to 01 Nov 2027N/AN/A
option holders may direct the Company to facilitate
a cashless (net settled) exercise by issuing to the
option holder, such number of shares as is equal to the
difference between the market value of a share and the
exercise price per option, multiplied by the number of
options being exercised, and divided by the market
value of a share. The most recent grant was made in
October 2025. Details of options granted in the current
and preceding financial years are shown below.
FY26 Scheme - Graham Leaming was granted
300,000 options on 06 October 2025, at an exercise
price of NZ$5.01 per share. The exercise price was
the weighted average share price on the twenty-day
trading period preceding issuance. The options are
exercisable in the period beginning on 01 September
2028 and ending on 01 November 2028
2
.
FY25 Scheme - Graham Leaming was granted
300,000 options on 03 October 2024, at an exercise
price of NZ$4.85 per share. The exercise price was
the weighted average share price on the twenty-day
trading period preceding issuance. The options are
exercisable in the period beginning on 01 September
2027 and ending on 01 November 2027
3
.
2 The fair value of the options granted, $267,000, was determined using the Black-Scholes model.
3 The fair value of the options granted, $257,000, was determined using the Black-Scholes model.
Skellerup Annual Report FY263637

CEO/Worker Ratio
The CEO/worker ratio represents the number of times
greater the CEO's remuneration is than that of an
employee paid at the median of all Group employees.
As of 30 June 2026, the CEO’s base salary at $800,000
was 10.4 times that of the median employee at $77,135
per annum (30 June 2025 – the CEO’s base salary at
$725,000 was 10.1 times that of the median employee at
$71,652 per annum).
Gender Pay Gap
The gender pay gap measures the median base
remuneration between men and women regardless
of the nature of work. The Group operates in several
regions, which makes comparisons between
employees in different regions less meaningful.
Skellerup, as a New Zealand listed Company, has
measured the gender pay gap of its New Zealand
workforce, which represents 43% of its total workforce
at 30 June 2026 (30 June 2025 – 41%).
As at 30 June 2026, the gender pay gap is 10.2%
(30 June 2025 – 11.3%). That is, women earn $0.90
for every $1 that men earn. The median pay is $78,431
(FY25 – $75,020) for the Group’s New Zealand
employees.
CEO Remuneration: Five Year Summary
$000
Fixed
SalaryKiwisaverSTISubtotalLTITotal
LTI
Exercise
LTI
Performance
Period
Graham LeamingFY26 769 31 585 1,385 - 1,385 -
FY25 Scheme:
2024 - 2027
---
FY26 Scheme:
2025 - 2028
Graham LeamingFY25704212941,019- 1,019-
FY23 Scheme:
Lapsed FY25
---
FY25 Scheme:
2024 - 2027
Graham Leaming
4
FY24176519201-201-
FY23 Scheme:
2022 - 2024
David Mair
4
FY24863--863-863-
FY23 Scheme:
Lapsed FY24
David MairFY23 725 - 265 990 2,3033,293100%
FY21 Scheme:
Vested FY23
---
FY23 Scheme:
2022 - 2024
David MairFY22 690 - 497 1,187 -1,187-
FY21 Scheme:
2020 - 2022
4 The remuneration shown above reflects the period of FY24 in the role as CEO (Mair until 31 March 2024 and Leaming from 01 April 2024).
Corporate Governance3637

Remuneration
Range $000
Number of
Employees
Remuneration
Range $000
Number of
Employees
100-11035300-3101
110-12033310-3201
120-13022320-3301
130-14012370-3803
140-15014380-3902
150-16013390-4001
160-17012400-4101
170-1808410-4201
180-1909420-4301
190-2006430-4401
200-2102450-4601
210-2202490-5001
220-2309520-5302
230-2402590-6001
240-2506610-6201
260-2704740-7501
270-2803940-9501
280-29041,080-1,0901
290-3001
Remuneration Bands
The above table notes the number of employees
or former employees of the Group, not being
directors, who, during the reporting period, received
remuneration and any other benefits in their capacity
as employees, the value of which was or exceeded
$100,000 per annum, in brackets of $10,000. The Group
paid remuneration above $100,000 to 219 current and
former employees in FY26 (FY25 – 186 current and
former employees).
Directors’ Remuneration
Non-executive Directors’ remuneration is paid in the
form of Director’s fees and non-executive Directors
have no entitlement to any performance-based
remuneration or to participate in any share incentive
schemes. Additional fees are paid to the Chairs of the
Board, Audit Committee and Sustainability Committee
to reflect the additional responsibilities of these
positions. Skellerup does not pay retirement benefits to
non-executive Directors.
The fee pool available for remuneration payable to
non-executive Directors is approved by shareholders.
The current approved annual fee pool available for the
payment of non-executive Directors is $850,000. This
was approved by shareholders at the Annual Meeting
on 24 October 2024. Skellerup’s Board comprised
five non-executive independent Directors and one
non-executive Director at the time the fee pool was
approved. In FY26, total fees paid to non-executive
Directors amounted to $750,000. Details of the
Directors’ remuneration are shown below:
Director Remuneration
Board ChairBoard DirectorAudit ChairSustainability ChairTotal
John Strowger100,000100,000200,000
David Cushing100,000100,000
Rachel Farrant100,00025,000125,000
Alan Isaac100,00025,000125,000
Paul Shearer100,000100,000
David Mair100,000100,000
Total100,000600,00025,00025,000750,000
Skellerup Annual Report FY263839

The Remuneration Committee may commission
studies and surveys and obtain external advice on the
remuneration structure and policy of the Company,
including Directors’ fees, and determine whether those
fees are appropriate. The Board and Remuneration
Committee seek to set aggregate remuneration for
non-executive Directors at a level which provides the
Company with the ability to attract and retain Directors
of the appropriate calibre and experience at a cost
which represents fair value for shareholders.
Non-executive Directors are encouraged but are
not required to hold shares in the Company.
Principle 6 – Risk Management
Skellerup complies with the recommendations
of Principle 6.
The Board is responsible for the Group’s risk
management and internal control system. Each
Director has a sound understanding of the key risks
faced by Skellerup. The Board reviews the Group’s
Risk Management Report prepared by the CEO and
management on a semi-annual basis and specific
items including the Group’s approach to managing
information systems risks are monitored monthly.
The Risk Management Report identifies key risks
and strategies to manage these risks. Climate
risk reporting is integrated into the Group’s risk
management systems. Climate risks are reviewed
by the Board at least annually, with significant
risks reported as part of the Group’s key risks.
The Sustainability Committee assists the Board
in setting appropriate sustainability strategies
aligned to Group objectives.
The Board ensures that adequate external insurance
coverage is in place appropriate to the Company’s size
and risk profile. The appropriateness of this coverage
is considered annually by the Audit Committee,
with recommendations presented by management.
There were no material information security breaches
in FY26, and the preceding year.
The Audit Committee monitors the Company’s system
of internal financial control with the aid of reviews and
reports prepared by external providers and periodic
certification by the CEO and CFO. This system includes
clearly defined policies controlling treasury operations
and capital expenditure authorisation. The CFO is
responsible for ensuring that all operations within
the Group adhere to the Board-approved financial
control policies.
The H&S Committee leads and monitors H&S
management within the Group. The Company
operates a comprehensive H&S framework across
all its businesses to identify and address workplace
hazards and to monitor and review compliance with
H&S policies and procedures. Board review of H&S is
a priority and is facilitated by both the activities of the
H&S Committee and the receipt and review of H&S
reports at each Board meeting. This review is further
facilitated by regular visits to key sites, providing the
opportunity to engage and query staff at all levels
of the Group. In FY26, the Board visited key sites in
Christchurch and Auckland.
Details of Skellerup’s key H&S risks and its
performance for FY26 are included on pages 22 and 23.
Principle 7 – Auditors
Skellerup complies with the recommendations
of Principle 7.
The Board ensures the quality and independence
of the external audit process, which culminates
in the audit report issued in relation to the annual
financial statements.
The Board has an established framework for
Skellerup’s relationship with its external auditor, and
to ensure independence of the Company’s external
auditor is maintained, a written Audit Independence
Policy has been implemented. The Audit Independence
Policy sets out guidelines to be followed to ensure
that related assurance and other services provided
by Skellerup’s auditor are not perceived as conflicting
with the independent role of the external auditor. The
Audit Committee approves any non-audit services that
are provided by the external auditor. Management and
the external auditor are invited to attend meetings of
the Audit Committee. The Audit Committee meets
with the external auditor without any representatives
of management present at least twice per year.
Skellerup’s external auditor is Ernst & Young (EY).
EY were first appointed as auditors of the Company in
2002. The Board annually reviews the appointment of
the external auditors. The EY audit partner responsible
for the Skellerup audit was appointed during FY23
and will act for a maximum of five years. The EY audit
partner attends the Annual Meetings and is available
to answer questions relating to the audit. The EY
audit partner attended the 2025 Annual Shareholders’
Meeting and is expected to attend the 2026 Annual
Shareholders’ Meeting.
Corporate Governance3839

EY provided the Audit Committee with written
confirmation that, in their view, they were able to
operate independently during the FY26 audit.
The total amount paid and payable to EY for the FY26
audit of the Group financial statements is $999,000
(FY25 - $944,000).
Skellerup maintains an internal audit function with the
assistance of external advisors. Skellerup reviews the
residual risks from its semi-annual Risk Management
Report to determine priorities for consideration for
internal audit review. The Audit Committee reviews
and approves all internal audit activity and meets
with the internal auditors as required.
The significant issues and judgements considered
by the Audit Committee are disclosed in Note (f)
of the financial statements on page 94.
Principle 8 – Shareholder Rights and Relations
Skellerup complies with the recommendations
of Principle 8.
The Board aims to ensure that shareholders are kept
informed of developments affecting the Company and
encourages shareholders to engage with the Company.
Information is communicated to shareholders and
other key stakeholders through the annual and
interim reports, disclosures to the NZX, and at
Annual Meetings.
The Board encourages shareholders to attend and
participate fully at Annual Meetings to ensure they
exercise the opportunity to ask questions about the
Company and its performance. Voting of shareholders
is by poll, based on one share, one vote. In 2025, the
Company’s Annual Meeting was a hybrid meeting,
allowing those not present at the meeting venue in
Christchurch, New Zealand, to actively participate, and
shareholders were provided with a virtual meeting
guide ahead of the Annual Meeting. Shareholders
and their proxies were able to vote, ask questions and
view the live presentations, whether they attended the
meeting in person or online.
All shareholders have the option to elect to receive
electronic communications from the Company through
the Company’s share registrar (Computershare) and
by electing to receive email notifications of investor
news from the Company.
In addition to shareholders, Skellerup has a wide
range of stakeholders and maintains open channels
of communication for all audiences, including
the investing community, regulators, employees,
customers and suppliers.
The Company maintains information for shareholders
on its website at www.skellerupholdings.com.
This includes a description of Skellerup’s business
and structure, copies of key corporate governance
documents and policies, and all information released to
the NZX. Shareholders can receive all communication
from Skellerup electronically.
The Board respects the interests of all shareholders in
the Company. Skellerup strives to manage its business
in a manner that delivers long-term shareholder
value by delivering consistent quality solutions for
customers, a work environment that is safe and delivers
development opportunities for its employees and meets
or exceeds the compliance requirements in
the environments in which the Group operates.
No major decisions which may change the nature of
Skellerup were made during FY26 and therefore no
such matters were required to be put to shareholders.
Similarly, Skellerup did not seek additional equity
capital in FY26 and therefore there was no such offer
to be made to shareholders on a pro-rata basis.
The Company’s Notice of its 2026 Annual Meeting
will be released on the NZX Market Announcement
Platform at least 20 working days before the Annual
Meeting and will also be made available on the
Company’s website. Notice of the 2026 Annual Meeting
(being the only meeting of shareholders called in
FY26) was given more than 20 working days before
the meeting.
Skellerup Annual Report FY264041

Corporate Governance4041

We recognise that the effects of climate change will continue to impact
where and how Skellerup will invest for future growth, and how we will
ensure the safety and well-being of our people and the continuity of our
operations, to provide certainty of supply to our customers.
Group Climate Statements
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 mitigate climate
risks and capitalise on the opportunities arising
from climate change.
Skellerup is classified 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. This requires Skellerup to
prepare group climate statements in accordance with
the Aotearoa New Zealand Climate Standards (NZ CS).
The NZ CS require reporting under the four pillars
described alongside:
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,
identified 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 identifies, 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.
Emissions reduction plans
are now in place for five of
our largest facilities.
John Strowger
Masport's range of electric motor systems deliver proven
power and durability while eliminating pump emissions
and dramatically reducing pump noise.
Skellerup Annual Report FY264243

Statement of Compliance
FY26 is Skellerup’s third 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 defined in the Glossary on page 75)
has relied on the following adoption provisions in
preparing these climate-related disclosures:
Adoption Provision 2:
Anticipated
Financial Impacts
Exemption from the requirements to
disclose the anticipated financial impacts
of climate-related risks and opportunities
and a description of the time horizons
over which the financial impacts could
reasonably be expected to occur.
Skellerup anticipates including these
disclosures in its F Y28 annual report.
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
elected to disclose a subset of scope 3
categories. Further details are included
on page 70. Skellerup anticipates
disclosing emissions from all scope
3 GHG emissions sources in its F Y28
annual report.
Adoption Provision
8: Scope 3 GHG
Emissions Assurance
Exemption from the requirement
to include scope 3 GHG emissions
disclosures in the scope of the Group’s
assurance engagement. Skellerup also
relies on the Financial Markets Conduct
(Climate-related Disclosures—Assurance
Engagement) Exemption Notice 2025.
Scope 3 GHG emissions will be included
within the scope of the assurance
engagement for the financial year ending
30 June 2028.
Disclaimer
Climate change is an evolving challenge, with high
levels of uncertainty as regards the scale and timing
of anticipated impacts on Skellerup and of Skellerup’s
impact on the climate. This report sets out Skellerup’s
approach to scenario analysis, our understanding
of and response to our climate-related risks and
opportunities, our current and anticipated impacts
of climate change, and the transition plan aspects of
the Group’s strategy that aim to align Skellerup with
a low-carbon, climate-resilient future. This reflects
Skellerup’s current understanding as at 19 August 2026,
in respect of the financial year ending 30 June 2026.
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 significant uncertainties.
The risks and opportunities described here might not
eventuate or might be more or less significant 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, officers, 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, financial, 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 seven 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 applications, focusing
on delivering innovative and enhanced products.
Skellerup supplies over 3,900 customers globally
across 94 countries.
Group Climate Statements4243

The Group operates across 19 locations, representing
a combination of manufacturing and distribution sites.
Skellerup also has a significant contract manufacturing
partner in Vietnam.
Skellerup’s Board of Directors has ultimate
responsibility for the Group’s approach to the impacts
of climate change, including the approach to climate-
related risks and opportunities affecting the Group.
The Board oversees the Group’s response to climate
change through certain Board committees.
Membership of each of the Board committees is
summarised on page 33.
Responsibilities for the oversight and management
of the Group’s approach to climate change are
summarised below:
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 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 meetings.
Audit Committee
The Audit Committee receives reporting
from the CEO and CFO on climate matters
at its quarterly meetings, as required,
including an annual review of CRD.
Climate change oversight
and management
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 considering broader strategy, including
as part of Skellerup’s annual business planning cycle.
Examples of the Board’s consideration of climate-
related risks and opportunities in FY26 included:
• Bi-annual review of the Group’s Risk Assessment
Report, with integrated climate-related risks, and
• An update on environmental matters and
opportunities as part of the Board’s annual review of
the Group’s business plans.
Skellerup Annual Report FY264445

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. Where any new
or changed climate risks are identified outside of
the annual review cycle, these will be reviewed,
considered and reported to the Board and the
Sustainability Committee, as appropriate.
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 identified 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.
The Sustainability Committee also has a role in
considering, approving and recommending targets to
the Board, including GHG emissions reduction targets
and plans. The Sustainability Committee formally
reviews climate-change scenarios, climate-related
risks and opportunities and the development of, and
progress against climate transition plans, at least
annually. The progress made on the development
of transition plans during FY26 is summarised on
pages 56 to 61.
The Sustainability Committee meets at least three
times per year. All Sustainability Committee
proceedings are reported back to the full Board.
The Board is assisted by the Audit Committee in
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
Audit Committee presents an annual report to the
Board summarising the Audit Committee’s activities
throughout the year and any relevant significant results
and findings.
Board skill set
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 26
to 27). Management shares relevant material with
the Board, Audit and Sustainability Committees
around developments in climate reporting, in
addition to the broader education 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 identifying and progressing the
Group’s response to climate-related opportunities.
The CEO (in consultation with the Board) is responsible
for the Group’s overall strategy, and the day-to-day
management of the Group, including risk management
processes (which incorporate climate-related risks).
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 such as the development
and implementation of emissions reduction plans (in
conjunction with the CEO); and
• ESG reporting (including climate-related reporting).
In FY26, the CFO, led wider engagement with business
unit leaders and other subject matter experts from
across the Group to review and update the 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 by invitation
and maintain direct lines of communication with the
Committee Chairs.
In FY26, the CEO and CFO attended each of the
meetings of the Sustainability Committee to discuss
the review and update of climate-related scenarios
and climate-related risks and opportunities, review
progress against the Climate Transition Plan (which
included the development of a further four emissions
reduction plans for key manufacturing sites in the
Group), and to prepare for updates required to climate-
related disclosures. In FY26, the Audit Committee
discussed climate-related risk at its quarterly
meetings, attended by the CEO and CFO.
The CFO is supported by the Group Financial
Controller, Group and Business Unit Managers and
other relevant subject matter experts in the preparation
of annual climate-related disclosures and the collation,
reporting and analysis of metrics and targets.
Group Climate Statements4445

As per FY25, climate-related performance metrics are
not currently 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 94 countries, the Group
has been exposed to various physical impacts of
climate change during FY26, none of which have had a
material impact on the Group, its operations or supply
chains. Regular reporting of any physical impacts on
climate change is provided by Divisional, Group and
Business Unit leaders.
The current impacts on the Group of the transition
to a lower-emission and climate-resilient economy
have been limited. Additional costs associated
with compliance with the mandatory reporting
requirements have been incurred, including engaging
external experts and the increased cost of assurance.
The financial impact of these transition impacts has not
been material in FY26 (FY25 – not material).
The Group has continued to see an increase in the
number of requests from customers around reporting
of ESG initiatives and performance. This includes
requests for the Group to make commitments to
customers and suppliers, provide information to third-
party platforms and agree to comply with supplier
codes of conduct. Over the last few years, this has not
had a material impact on the Group, but the potential
for more stringent customer requirements will continue
to be monitored and the need to include this within
our key transition risks will be assessed (not deemed
necessary for FY26).
Scenario Analysis
Scenario analysis undertaken
In FY24, the Group 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. A comprehensive review of this climate-
1 The IPCC is a body of the United Nations. Its remit is to advance scientific knowledge about climate change caused by human activities.
The IPCC has created reference scenarios that are widely used to understand the potential future impacts of climate change.
2 The NGFS is a network of 114 central banks and financial supervisors that aims to accelerate the scaling up of green finance and
develop recommendations for central banks’ role in climate change.
3 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.
related scenario analysis was carried out during
FY25 and FY26, with the results of these reviews
reported back to the Sustainability Committee.
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 reviewed and approved by the Sustainability
Committee in December 2025.
Due to the diverse nature of its 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
1
) Sixth Assessment Report,
with input from scenarios developed by the Network
for Greening the Financial System (NGFS
2
) and the
International Energy Agency (IEA
3
) public scenarios.
Given the nature of the Group, its extensive value
chains 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. The six steps followed in our
scenario development process are set out on page 47.
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 2.7°C
scenario (“Middle of the Road”) and a 3.6°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).
Skellerup Annual Report FY264647

The Middle of the Road scenario fulfils the requirement
for a third climate-related scenario and presents a
middle ground where transition and physical risks
are both elevated. All three scenarios continue to
present plausible, challenging descriptions of how
the future might unfold, both in New Zealand and
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 and review process
Climate-related scenarios were developed in FY24 as
described in steps 1 to 4 below.
1. The initial scenario narratives were developed
utilising the SSPs, IEA and NGFS public scenarios.
These scenarios were used to identify and agree on
the macro-defining 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 refined through workshops
involving senior management and subject-matter
experts covering the Group’s five most material
(key) product applications (refer to page 61).
4. A final review of scenarios was completed by
management to ensure internal consistency before
presentation to and final approval of the scenarios
by the Sustainability Committee.
5. The Group undertakes an annual review of its
climate-related scenarios, including industry
comparisons and reviews against market
publications and findings. The most recent review
identified no material changes to the Group’s
climate-related scenarios. These scenarios were
reviewed and re-approved by the Sustainability
Committee in December 2025.
6. We continue to monitor market and sector scenario
development to augment our understanding.
An overview of each of our climate-related scenarios is
set out on pages 48 and 49.
Climate-related Risks and Opportunities
Physical risk exposure and analysis
Physical risks are defined 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
19 locations across the globe, as well as a significant
contract manufacturing partner in Vietnam. The Group
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
4

were carried out by a specialist in physical climate
risk modelling on our six key manufacturing sites,
including our partner site in Vietnam (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. We consider annually the need to review
these assessments. We determined a further review
was not required in FY26 due to no significant updates
having been made to these sites, nor any climate-
related interruptions experienced. We will continue
to monitor the levels of climate-related disruptions at
our sites through monthly reporting of any physical
climate-related impacts, to inform the timing of further
detailed reviews.
The sites identified, 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;
• Jiangsu Province, PR China;
• Ho Chi Minh City, Vietnam;
• Auckland, New Zealand (two sites); and
• Nebraska, United States of America.
4 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-RCP1.9, SSP2-RCP4.5 and SSP3-RCP7.0).
Group Climate Statements4647

Climate-related scenario overview
Description
5
Aggressive
Transition Ambition
Middle of the RoadHothouse
This scenario depicts a world
achieving net-zero global CO
2

emissions around 2050. Society
transitions to sustainable practices,
prioritising well-being over economic
growth. Investments in education
and health rise. Although extreme
weather events become more
frequent, the worst impacts of climate
change are averted. This is the only
scenario aligning with the Paris
Agreement’s 1.5°C warming limit, with
temperatures peaking at 1.5°C.
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 3.5°C by the end of the
cent u r y.
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 roughly double from current
levels by 2100, reaching 3.6°C by the
end of the century. Climate ‘chaos’
enters mainstream discourse, across
all sectors and communities.
Macro
Scenario
Trends
• Global co-operation
• Accelerated technological
development
• Economic growth, but well-being is
prioritised
• Strong environmental policy
• Low global population growth
• Declining inequity
• Renewables and energy efficiency
• Dietary shifts
• Continuation of past social, economic
and technology trends
• Uneven global economic growth
• Environmental degradation
• Uneven global population growth
• Persistent inequality
• Some renewables and energy
efficiency, principally in developed
countries
• Regional competition
• Low technological development
• Environmental and social goals are
low priority
• Focus on domestic resources and
resource security
• Uneven global population growth
• Slowing global economic growth
Policy
Ambition
(temperature
change by
the end of the
century)
1.5°C2.7°C3.6°C
Pathways
IPCC SSP1-1.9
RCP1.9
IPCC SSP2-4.5
RCP4.5
IPCC SSP3-7.0
RC P7.0
Policy
Immediate, strong and global policy
uniformity, carbon prices increasing
until 2035, policies and regulations
addressing land and resource use,
material use, transport and product
take-back schemes.
Delayed and inconsistent policy
adoption, increasing carbon prices
until 2035 and beyond, additional
tariffs imposed in key markets to
protect local industries, regulations
focus on adaptation to deal with
extreme physical impacts of climate
change.
Policy focus shifts to adaptation,
supply chain and resource security
and managing disruptions, low
carbon prices and little regulation
of emissions-related activities,
regulations focus on limiting
development in hazard-exposed
areas.
Social
Behaviour
Change
Customers and markets demand
action, including an increased scrutiny
of emissions, and a shift to localised
supply chains.
Response varies by jurisdiction and
sector, with an increasing focus on
product and supply chain resilience.
Sentiment focused on product and
supply chain resilience, increasing
prevalence of national protectionism
and market access restrictions.
5 These scenarios did not expressly consider carbon sequestration from afforestation and nature-based
solutions or technology assumptions such as negative emissions technology.
Skellerup Annual Report FY264849

Climate-related scenario overview (continued)
Description
5
Aggressive
Transition Ambition
Middle of the RoadHothouse
Technology
Accelerated technological
development in new low-carbon
technology across all sectors,
increasing low-carbon material
innovations, and new low-carbon
modes of transport.
Development varies across sectors
and geographies, with divergence
leading to the proliferation of products
to meet varying market requirements,
and the rate of new transport
technology is slower.
Minimal focus on emissions reduction
technology, with focus shifting to
resilience, transport technology
remains dominated by fossil fuels,
no substantial shift to low carbon
materials.
Financial
Markets
Economic growth, significant
capital flows to low-carbon sectors
and technologies, with funding for
high-carbon sectors and businesses
becoming limited. Focus on equitable
development and well-functioning
institutions.
Access to finance is limited and
cost-restrictive, access to insurance
for extreme events becomes more
expensive and is subject to increasing
instances of managed retreat.
Insurance is unavailable or
prohibitively expensive, capital
markets are constrained.
Environmental
Lower intensity, frequency, special
coverage and duration of physical
impacts of climate change.
Increasing disruptions to supply
chains and end markets, with ongoing
impacts of extreme temperatures on
facilities owned or operated by the
Group.
Access to raw materials impacted by
climate hazards, facilities and supply
chains impacted by extreme weather
events, and the ongoing impacts of
extreme temperatures on facilities
owned or operated by the Group.
Physical Risk
Severity
Lower in severity due to aggressive
transition efforts.
Moderate to high.High to extreme. Extreme climatic
conditions cause global disruption
from 2035, leading to widespread
economic impacts for all economies.
Global supply chains are increasingly
disrupted by extreme climatic
conditions. This, in turn, causes
geopolitical unrest, exacerbating
supply chain disruptions and
constraining the availability of critical
inputs and materials.
Transition
Risk Severity
Moderate to highHighLow
This approach has been taken during FY25 and FY26
when considering the emissions reduction initiatives
that are being implemented as part of Skellerup’s
emissions reduction plan.
Refer to page 59 for further information on the emission
reduction plans and outcomes.
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.
Key climate-related hazards have been identified,
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 above.
We have reviewed the risk scores arising from these
assessments to determine the requirement and timing
of mitigation plans and actions. From FY25, Skellerup
has integrated the consideration of climate-related
risks and opportunities into our internal capital
approval process.
Climate-related risks and opportunities are considered
when determining the motivation and viability of a
capital expenditure project, while return on investment
calculations ensure its commercial viability.
Group Climate Statements4849

To identify potential material transition risks affecting
the Group, a qualitative assessment was performed
against the three scenarios outlined on pages 48 and
49 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 that exposure to an identified
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 defined climate-
related risks and opportunities for each of our key
product applications (refer to page 61). 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 influenced
by age, condition, material and design. Adaptive
capacity is how efficiently an at-risk element can
adapt or be adapted when exposed to a climate
hazard or transition element. Adaptive capacity can
be influenced by multiple factors, such as the 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 financial, health
and safety, staff, legislative and reputational impacts.
The residual risk rating is based on consequence
and vulnerability as outlined within the matrix on the
following page.
The tables on pages 52 to 55 set out the material
6

climate-related risks and opportunities identified
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, reflecting changes in materiality
and risk rating.
The time horizons used to assess climate-related risks
and opportunities are:
PeriodDates
Short-term0 to 5 years2026 to 2030
Medium-term5 to 25 years2030 to 2050
Long-term25 to 75 years2050 to 210 0
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.
6 NZ CS 3 defines information as material if omitting, misstating or obscuring it could reasonably be expected
to influence decisions that primary users make based on an entity’s climate-related disclosures.
Skellerup Annual Report FY265051

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 DEKS Battleship is engineered for maximum durability and
weather resistance which provides a watertight seal for multiple cables,
whether fitting solar, communications or electric ventilation systems.
Group Climate Statements5051

Risk Ratings
and Anticipated
Impacts for Climate-
related Risks and
Opportunities Across
Identified Scenarios
Legend
Very Low
Low
Moderate
High
Extreme
Risk Rating:
7, 8
Time Horizon:
ST
Short-term
MT
Medium-term
LT
Long-term
Risk level change from FY24:
Increased risk level
No change in risk level
Decreased risk level
Risk Description and
Anticipated Impacts
Climate
Hazard
Aggressive
Transition
Ambition
Middle
of the Road
HothouseRisk Level
Change
from FY25
Mitigations
Currently
in Place
(SSP1-RCP1.9)(SSP2-RCP4.5)(SSP3-RCP7.0)
PR101- 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
ST
MT
LT
ST
MT
LT
ST
MT
LT
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.
PR102 - 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
ST
MT
LT
ST
MT
LT
ST
MT
LT
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.
PR103 - As a global
business, the disruptions
that extreme weather
causes to supply chains
(road, rail, sea) may be
significant, impacting both
supplies of raw materials
and ingredients and
delivery of products to
end markets.
Revenue decrease,
cost increase
Floods,
Temperature,
Wind
ST
MT
LT
ST
MT
LT
ST
MT
LT
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
develop further, which may
alleviate some of this risk.
Physical Risks (Acute and Chronic)
Skellerup Annual Report FY265253

Risk Description and
Anticipated Impacts
Transition
Risk
Element
Aggressive
Transition
Ambition
Middle
of the Road
HothouseRisk Level
Change
from FY25
Mitigations Currently
in Place
(SSP1-RCP1.9)(SSP2-RCP4.5)(SSP3-RCP7.0)
TR101 - Policy changes
such as tariffs, carbon
prices and carbon
import duties, as well as
emissions taxes, to favour
domestically produced
products, creating
additional cost for the
Group and potential
exclusion from certain end
international markets.
As a response to economic
recession or political
pressure fuelled by climate
change concerns, import
tariffs are introduced to
protect local industries
and employment.
Further, climate change
may accelerate mass
migration, and the political
consequences of this
are a risk to the Group’s
exporting businesses.
Revenue decrease,
cost increase
Policy
and legal
ST
MT
LT
ST
MT
LT
ST
MT
LT
Actions are already being
taken to trial and prove
in-market manufacturing
capabilities. Skellerup is
expanding distribution
activities and evaluating
the potential for
manufacturing facilities to
be located closer to end
customers and markets,
and is engaging with
customers to understand
future requirements
and concerns.
TR102 - Risk that emissions
pricing and associated
costs drive up raw material
and/or freight costs,
which may not be fully
recoverable due to the
competitive environment.
Cost increase
Policy
and legal
ST
MT
LT
ST
MT
LT
ST
MT
LT
Transition Risks
7 Risk ratings reflect the Group’s assessment of both consequence and vulnerability of the specific risk.
8 No 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).
Group Climate Statements5253

Climate-related Opportunities and Reasonably Anticipated Impacts
Legend
Part of the Group’s current strategic plans
Being considered as part of future strategic planning
Opportunity
Ty pe
Opportunity DescriptionPhysical
(P) or
Transitional
(T)
Anticipated
Impacts
Time HorizonTransition
Planning
Customers
/ end
markets
O101 - More intensive farming or changes in farming
methods to control methane emissions, leading to
increased demand for higher-performing dairy
consumable products.
TIncreased
market
opportunity
Short-term
O102 - Increased demand for footwear due to climate
change (more extreme weather conditions).
PIncreased
market
opportunity
Short-term
O103 - Increasing global rainfall in certain areas may
result in increased milk production and higher demand
for higher-performing dairy-consumable products.
PIncreased
market
opportunity
Short- to
medium-term
O104 - Vacuum systems are used in disasters and for
clearing wastewater because of infrastructure damage,
and are required for the rebuild.
PIncreased
market
opportunity
Short- to
medium-term
O105 - 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
O106 - Rising temperatures requiring increases in HVAC
installations (and resultant roof penetrations and sealing)
and physical impacts on power grids necessitating an
increase in solar installations create more demand for
roofing products (existing and new).
P, TIncreased
market
opportunity
Short- to
medium-term
O107 - Regulation and legislation requiring an
increase in solar or other renewable installations and/
or requirements to lower-carbon and more resilient
solutions may create more demand for roofing products
(existing and new).
TIncreased
market
opportunity
Short- to
medium-term
O108 - Urban intensification (driven by physical or
transition drivers) leads to the opportunity to sell
more products used in infrastructural investment.
Dedensification is an opportunity as more remote
locations require liquid waste services.
P, TIncreased
market
opportunity
Short- to
medium-term
Skellerup Annual Report FY265455

Opportunity
Ty pe
Opportunity DescriptionPhysical
(P) or
Transitional
(T)
Anticipated
Impacts
Time horizonTransition
Planning
Resource
efficiency
O109 - 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
O110 - Develop new and supply existing products
for water management and effluent management in
response to new legislation around 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
Medium-term
O111 - Future shifts (through policy or cost) to electric
vacuum systems to complement changes in modes of
transportation (i.e. electrification of the vehicle fleet).
TIncreased
market
opportunity
Short- to
medium-term
O112 - 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
O113 - Access to green capital presents an opportunity
to reduce the overall cost of funding.
TReduced costMedium-term
Climate-related Opportunities and Reasonably Anticipated Impacts (continued)
Our innovative Evolution
®
liners not only improve milking performance
and last longer but are supplied pre-loaded in a recyclable single-use
shell, saving both time and money, and delivering an environmentally
friendly solution to farmers.
Group Climate Statements5455

Climate Transition Plan
The Group’s Climate Transition Plan outlines how the
Group will respond to the risks and opportunities
posed by climate change, including how its business
model and strategy might change to address material
climate-related risks and seize opportunities. The plan
also addresses how the Group intends to decarbonise
its operations and supply chains, thereby reducing its
contribution to global GHG emissions. The Climate
Transition Plan was reviewed and approved by the
Skellerup Board in March 2026.
Our Climate Transition Plan is made up of two
components:
• An Adaptation Plan; and
• An Emissions Reduction Plan.
Our current business model and strategy
Our business model sees the Group operating as
a global designer, manufacturer and distributor of
precision-engineered polymer products and vacuum
systems. Skellerup has manufacturing and distribution
facilities in seven 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
product applications, through the implementation and
delivery of our four strategic objectives noted below:
Capacity
We focus on building in-market presence, development
hubs and manufacturing scalability. By increasing our
capacity to deploy more in-market manufacturing
(addressing geo-political, restrictive trade and climate
change impacts), we are reducing our existing
customers’ risk and the need to consider alternative
suppliers, as well as being attractive to new customers.
Capability
We focus on developing critical capability (people
and equipment) to design and manufacture
precision elastomer products for high-
performance and high-conformance applications.
We also ensure maintenance of our balance
sheet capability to fund organic growth through
innovation of new products and innovation.
Customers
We service our global customers
through customer-focused
development, utilising our deep
technical expertise and rapid
prototyping capabilities.
People
We operate under a model of accountability,
capability and measurement for all our business
units. We focus on attracting, retaining and
developing the right skills to ensure we have the
people necessary to deliver to our customers.
While the identified adaptation responses to our climate-related risks and opportunities and emissions reduction
initiatives broadly align with our strategic objectives, we will continue to monitor and adjust the strategic aims
of our Climate Transition Plan to support our key strategic objectives, as we continue to embed our Climate
Transition Plan.
Skellerup Annual Report FY265657

Requiring
Capital Investment
The cost of implementation of our Climate Transition Plan will require an investment of capital. Allocation of capital expenditure will be
reviewed as part of quarterly forecasting and annual business planning cycles, with approval obtained from the Board and Management for
investment that is aligned with short-, medium- and long-term climate and wider commercial targets.
Our Strategic Objectives
Aligned with
Climate Transition Plan
Adaptation Plan
Identification and prioritisation of adaptation responses to our material climate-related risks and
opportunities within the Group's key product applications.
Key adaptation responses (short to medium term):
• Manufacture in or nearer market
• Develop and promote new solutions
• Evaluate and establish alternative suppliers/
manufacturing partners
• Evaluate and establish alternative sources of
raw materials
Emissions
Reduction Plan
How the Group plans to reduce its GHG emissions through identification and implementation of emissions
reductions initiatives in a stepped approach:
CapacityCapabilityCustomersPeople
1
F Y25 - Christchurch
Pilot (scope 1 and 2)
Short Term (2026 to 2030)
Initiatives include optimising office and factory
HVAC, replacing lighting with LED, cryogenic
deflasher replacement, replacing injection moulding
machines, CV extruder replacement, substituting
the diesel boiler, and washer/electric boiler
upgrades
Medium Term (2030 to 2050)
Initiatives include introducing natural lighting,
replacing petrol hybrid vehicles with electric vehicles
2
F Y26 - Other Skellerup
manufacturing sites
(scope 1 and 2)
Short Term (2026 to 2030)
Initiatives include replacing compression moulding
machines, optimising office HVAC, replacing
lighting with LED or solar, replacing vehicles with
electric or hybrid alternatives, introducing light
sensors, and enhancing insulation in temperature-
controlled rooms
Medium Term (2030 to 2050)
Initiatives include replacing compression moulding
machines, replacing mills, decommissioning a
calendar mill, and replacing petrol vehicles with
hybrid vehicles
3
F Y27 Onwards - All
other Skellerup sites
(scope 1 and 2) and
consideration of
indirect (scope 3)
emissions reductions
initiatives
Group Climate Statements5657

Adaptation Plan
Our Adaptation Plan outlines the adaptation responses
to the Group’s material climate-related risks and
opportunities within its key value streams.
To identify these adaptation responses, workshops
were held with senior management and key subject
matter experts to develop a long list of potential
adaptation responses to material climate-related risks
and opportunities. The inter-dependencies of the
adaptation responses were examined, before ranking
and prioritising them. Individual action plans were
then developed for the selected adaptation responses,
including the establishment of timelines, assignment
of responsibility and allocation of capital funding. The
Adaptation Plan was reviewed and approved by the
Sustainability Committee in March 2026.
The key adaptation responses are noted below,
along with the material climate-related risks and
opportunities addressed:
Adaptation
Response
(and alignment to
strategic objectives)
DescriptionFY26 ProgressLink to Climate-
Related Risks and
Opportunities
(see pages 52 to 55)
Manufacturing in or
nearer end markets
Capacity, capability,
people
Skellerup currently has its key manufacturing activities
in New Zealand and China (with significant contract
manufacturing in Vietnam), and smaller manufacturing
operations in Italy, the UK, USA and New Zealand, which
together service Global markets. Through expansion
of alternative manufacturing locations (including in or
nearer to end markets), we are developing contingency,
resilience and potential permanent alternatives to our
manufacturing capacity.
• Continued investment
in standard moulding
equipment at the
Christchurch site.
• Investment in further
silicone liner capacity in
the UK.
PR102, PR103, T R101,
T R102
Develop and
promote new
solutions
Capability, customers
Skellerup’s strategic objectives include having the capability
to be able to undertake customer-focused development
through deep technical expertise and rapid prototyping.
By widening our scope of product offerings, we are not only
meeting the commercial requirements of our customers
but also reducing dependency on single manufacturing
bottlenecks.
• Continued investment
in people, equipment
and capability in our
development centres in
New Zealand.
O110, O112
Evaluate and
establish alternative
suppliers and
sources of materials
Capacity
A significant number of Skellerup products are required to
meet high performance or conformance standards, of which
access to suitable raw materials is a key component. Through
the establishment of alternative suppliers and sources
of approved materials, we are ensuring continuity of our
materials supply while also allowing for contract flexibility.
• Several alternative
suppliers validated to
reduce reliance and
improve risk profile.
• Ongoing engagement
with key suppliers on
alternative sources of
materials.
• Group-wide engagement
on raw material sourcing.
• Investment in laboratory
capability at our
development centres to
trial new materials and
compounds.
PR101, PR103, O108
Validate alternative
manufacturing
partners
Capacity, capability
Skellerup’s global footprint includes working with
manufacturing partners who are key to the successful
delivery of critical products to our customers. By validating
alternative manufacturing partners, this gives us flexibility
of s upply.
• Validation of alternative
vacuum pump assembly
locations during F Y26.
• Expanding the range of
products sourced from
alternative manufacturers.
PR102
Adaptation responses to key climate-related risks and opportunities
Skellerup Annual Report FY265859