New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Skellerup's (SKL) FY24 result was broadly in line with our expectations, and did little to change our view on the company's outlook.</li><li>We are comfortable that: (1) destocking in Agri that impacted 1H24 appears unlikely to repeat, with more normal ordering patterns from European customers, (2) top line growth will continue to be supported by new products, and (3) margins are sustainable, underpinned by mix improvements, new products, and ongoing efficiency gains.</li><li>SKL is trading on unchallenging valuation metrics (12 month forward PE of 16x), with solid growth prospects (FY24–27 EPS CAGR of +10%), balance sheet flexibility (net debt 0.2x EBITDA), and offers a strong cash yield (FY25 5.6%). OUTPERFORM</li></ul>

Skellerup's (SKL) FY24 result was broadly in line with our expectations, and did little to change our view on the company's outlook.We are comfortable that: (1) destocking in Agri that impacted 1H24 appears unlikely to repeat, with more normal ordering patterns from European customers, (2) top line growth will continue to be supported by new products, and (3) margins are sustainable, underpinned by mix improvements, new products, and ongoing efficiency gains.SKL is trading on unchallenging valuation metrics (12 month forward PE of 16x), with solid growth prospects (FY24–27 EPS CAGR of +10%), balance sheet flexibility (net debt 0.2x EBITDA), and offers a strong cash yield (FY25 5.6%). OUTPERFORM

Skellerup Holdings - FY24 Result — Industrial Growth