Annual Meeting 2007

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Skellerup Going Forward

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Skellerup Holdings Limited

Skellerup is an Industrial operating group marketing technical rubber products to International markets where quality and reliability are critical to the productivity of our customers’ business.

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Strategic Key Points

• More focused strategy

– Technical rubber

– Global

– More Industrial

– More growth

• Restructuring activities well developed

– Advancing outsourcing of domestic manufacturing

– Divestment process progressing

• $17.9m of restructuring costs charged to income statement

– Cash restructuring cost of $5.7m incurred over time

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Business Strategy• Skellerup will specialise as a global technical rubber

company

• Why?

– Better utilises Skellerup’s core competencies

– Expands existing distribution networks

– Utilises cost effective manufacturing opportunities

– Expands and consolidates presence in large, but fragmented, global technical rubber markets

Revenue growth; higher and more sustainable margins; higher barriers to competitive entry

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Strategic Implementation

Cost base improvement – outsourcing Divest

non- strategic

businesses

• Improve Skellerup’s overall cost base by outsourcing where appropriate

• Acquire businesses with complementary products, business models, and distribution channels.

Deks 2005 Gulf 2006 Tumedei 2007

Acquisition growth

• Skellerup will implement its growth strategy in three ways:

• Divest businesses that are “non-technical” in nature

• These businesses represent ~30% of revenue and ~30% of EBIT

• Proceeds used to reduce borrowings and to fund future acquisitions

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Divisional Revenue Mix• Industrial revenue now represents over 70% of total

revenue• Trend expected to continue

Agri Industrial

42%

58%

2005 2007

29%

71%

2006

35%

65%

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Geographic Revenue Mix

• Overseas revenue now represents over 62% of total revenue

NZ Overseas

50%

50%

2005 2007

38%

62%

2006

42%

58%

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Manufacturing Sites

New ZealandAucklandFeatherstonWellingtonChristchurch

ChinaBaochang

AustraliaSydneyMelbourne

UKWitney

ItalyAla Vietnam

Thailand Taiwan

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Distribution Sites

USARandolph, New York StateLincoln, Nebraska

ChinaBaochang

UKBristolWitney

New ZealandAucklandHamiltonFeatherstonWellingtonChristchurch

AustraliaBrisbanePerthMelbourneSydney

ItalyBologna

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27%

36%

17%

3%

10%7%

Sales by Region – Projected 2008

ItalyAustralia

New Zealand

USA

UK/Europe

Other

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Industrial

Flow Control

Pipe Fittings

Pipe Valves

Diaphragms

Pipe Rings

Concrete Pipe Rings

Cast Iron Pipe Rings

PVC Pipe Rings

Automotive

O rings

Various

Medical

Pharmaceutical

Veterinary

Industrial

General Plumbing

Tap Washers

Custom Mouldings

Conveyor Belts

Roofing Membrane

Mining

Conveyer Discs

Impact Roller Discs

FlexiFlo

Lifter Bars

Tumedei

(CNG/LPG)

Fabric Reinforced Diaphragms

Rubber Coated Fabric Diaphragms

Key Industries & Products

InvensysRelianceMoen

PolypipeUS PipeIplexMarley

Robert BoschGKNDrivetrain Systems

Resmed SandvickPilbara IronXstrata

CaromaPhilmac

MTM/CNG LPG Market

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Industrial Division Growth Outlook

• Industrial’s growth outlook is positive, with a focus on:

– Penetration in targeted technical rubber markets in Europe and USA

– Cost competitiveness from outsourcing or own manufacture

– Continued product development in-house

– Continued formulation development – in-house

– Build on reputation

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Key ProductsFootwear

GumbootsWorkbootsSocksSafety

Dairy

Milking LinersDairy TubingCalf Teats

Agri

Dairy Hygiene

(Ambic)

Filters Customers

DeLavalWestfalia WaikatoDavieswayWalcoRD1Wrightson PGGFarmlandsCoburnLacrosse

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Agri Division Growth Outlook

• Agri’s growth outlook is positive, with a focus on:– The booming global Dairy industry.– Cost competitive manufacturing and outsourcing.– Continued product development – in-house.– Continued formulation development – in-house.– Strong brands and reputation.

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Technical Capabilities

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Polymers

• Silicone• EPDM• Nitrile • Viton ® • Neoprene • SBR• Natural Rubber• Polyacrylate

• Hydrogenated Nitrile• Fluorosilicone• Custom Compounds

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Recent Acquisitions – Gulf Rubber

• Worldwide niche designer, manufacturer and distributor of technical rubber products to the household appliance, automotive, medical, irrigation, water supply and plumbing industries

• Complementary business model to Skellerup’s:– In-house product design, coupled with cost effective

manufacturing outsourced from Asia

– Extensive distribution network (markets in Australia, NZ, Europe and USA)

• Performing ahead of expectations post-acquisition

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Recent Acquisitions – Tumedei• Based in Northern Italy – 70% of sales in Italy.

• Manufacturer and distributor of custom-designed technical rubber products for the automotive, petrochemical, gas, water and irrigation markets.

• Acquisition consistent with Skellerup’s growth strategy– Grow market presence and expertise in the global technical

rubber products industry

– Expand distribution networks and geographical sales splits.

• Synergies with Gulf Rubber available– Sales force – two Gulf sales staff relocated to Italy.

– Product line expansion

– Lower cost manufacturing for some products

– Distribution expansion.

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Low Cost Manufacturing• Asia

– China – own plant and subcontractors– Vietnam – subcontractors – two expatriates on

site– Thailand – subcontractors– Taiwan – subcontractors

• New Zealand– Christchurch x 2– Auckland x 3 all own plants– Featherston– Wellington

• Europe/UK– Italy - own plant– England - own plant

• Logistics Savings from Manufacturing close to Customer

• No capital input when using subcontractors

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Manufacturing in China

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Outsourcing Progress

• Outsource more Industrial products currently manufactured in N.Z.

• The outsourcing arrangements relate to “non-technical” businesses that Skellerup is attempting to divest.

– Outsourcing arrangements are expected to be substantially completed within 18 months

• Cost savings for each of the three businesses are expected.

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Skellerup Growth Strategy

Continue to pursue growth in technically demanding rubber products by investing in product development and acquisitions closely aligned to this profile.