Ātihau-Whanganui Incorporation Annual Report 2018 by iStudios Multimedia Ltd

H U-W ANGA

AT I

I NU

RPORATI

Toi tu te whenua

As I sit here Upon the vast and long ridge I glance upon my authority To the remnants of the land To the remnants of the people All the way to the high spring tide of the river The land is fruitful and productive And will never be crippled. My heart is fi lled with love For the experts of the land who have passed on Who left these words to guide us I reminisce and mourn May they rest in peace. To us who live in this forever changing world A symbol of those who have passed on Welcome to one and all To our hui As we embrace each other And continue the hard work left to us Welcome.

E noho nei au I te hiwi nui, i te hiwi roa Te tiro kau atu ki taku paenga Ki te mōrehu whenua Ki te mōrehu tangata Ki te tai toko i Te Awa Tupua Ka oho, ka rea te papa Ka kore rawa e hauā. He waipuna o te aroha Mō kautau ngā tohunga Nā rātau anō te ōhākī Toitū te whenua, toitū te tangata, toitū te mana Ka hotu au, ka hotu au E oki atu rā. Tātau i te ao kōmiro, i te ao tūroa nei He urupā kanohi o rātau mā E te iwi whānui, e te tira nui Whakapiripiri mai Ki tō tātau huihuinga tangata Kia AWHI tātau i a tātau anō Kia rewa ai te ōhāki o ngā mātua tūpuna Rarau, rarau, e tau e.

CONTENTS TOITŪ TE MANA 6

Ātihau-Whanganui Incorporation Chairperson's Report Board Members

Business and Brand Strategy 2018

TOITŪ TE WHENUA 12

CEO Report

Land and Buildings Valuation

Executive Team

Summary of Key Financial Information

Performance Highlights

Foundational brand thinking key to forging customer connections

TOITŪ TE TANGATA 22

Te Āti Hau Trust Chairperson's Report

Trust support creates benefi t for all

25 27

Te Āti Hau Trust Trustees

Summary of Key Trust Financial Information 2017/18 Trust Grant Recipients

ĀTIHAU-WHANGANUI INCORPORATION FINANCIAL STATEMENTS 36

Contents

Statement of Comprehensive Income

Shareholding and Committee of Management Disclosures

Statement of Changes in Equity

Statement of Financial Position

Statement of Cash Flows

Notes to and forming part of the Financial Statements

Auditors' Report

TE ĀTI HAU TRUST FINANCIAL STATEMENTS 62

Contents

Statement of Service Performance

Entity Information

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Notes to and forming part of the Performance Report

Auditors' Report

APPENDIX 74 75

Glossary of Terms Notes

COVER: Whaea Olive Hawira (Te Ātihaunui-a-Pāpārangi, Ngāti Patutokotoko, Ngāti Rangi, Ngāti Uenuku and Ngā Wairiki) is an AWHI shareholder and kaiāwhina to year one cadets on our Awhiwhenua Agricultural Training Course.

Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

KORO RUAPEHU, OUR SACRED WATERS AND PAPATŪĀNUKU SIT AS THE BASIS OF THE BOUNTY WE PRODUCE AND THE STORY WE HAVE TO TELL IS AN AUTHENTIC ONE OF NURTURE AND CARE.

TOITŪ TE MANA Mavis Mullins Chairperson

KO TE KUPU, TE KUPU KO TE ATUA, TE ATUA KO RANGINUI KI RUNGA KO PAPATŪĀNUKU KI RARO KA MATE AI TE TANGATA KA PŌ, KA AO, KA AWATEA TIHEI MOURIORA

The challenges for our business take quantum leaps year-on-year. We now have to contend with wool-less sheep, meat-less meat, borderless social media connected 24/7 and conscientious consumers who want to know all about us. Our very real challenge is to stay in front of these disruptions and turn them into opportunities. On behalf of your board, I am pleased to present our forty-eighth annual report for the financial year 1 July 2017 to 30 June 2018. As I think back over the years since the legacy left us by our ancestors that led to our incorporation,

it is with pride that I consider how far we have come as a business and as a whānau whānui. There will be much to celebrate in 2020 as we mark our historic fiftieth year and acknowledge the contributions and achievements of five decades. And so, the planning for this milestone has started. One of the strengths of the ĀtihauWhanganui Incorporation (AWHI) over this time has been our ability to recognise and embrace fresh ideas and emerging trends while remaining true to our core purpose of helping people and nature flourish together.

Ātihau-Whanganui Incorporation CHAIRPERSON'S REPORT

This is testament to the calibre of those who have served on the board since its inception in 1969 up to the present day, with our newest board member Rāwiri Tinirau stepping up to take his place at the table. Rāwiri has made a positive contribution on how our business is governed and brings a real sense of connection to our whānau and our whenua. We have also welcomed new members to the board of the Te Āti Hau Trust whose acknowledgement I will leave to our trust chair, Keria Ponga. Toitū te Whenua The board has been clear in its commitment to the sustainable management of our lands, our awa and our ngahere as we strive for viability with a gentle land footprint. We are moving away from producing meat, wool, dairy and honey in mass volume for a commodity-based market

and now pursue a shift from ‘volume to value’. This means producing higher quality products for a premium market where we connect directly with our customers and consumers, who are prepared to pay more for that quality. Koro Ruapehu, our sacred waters and Papatūānuku sit as the basis of the bounty we produce and the story we have to tell is an authentic one of nurture and care. In the fast moving world we now live in, this resonates deeply with our customers who firstly test and then value the integrity of what we have to say. The importance of providing manaaki for our whenua, our animals, our kaimahi and our customers was renewed after a productive review of our strategic approach and direction, which took place earlier this year. A significant shift was that tikanga and products equally lead the way in which we seek to generate value.

The session really helped to open our minds to diversification opportunities that promise to bring a resilience into our business. We identified five strategic pou – Tangata (People), Whai Hua (Productivity), Morimori (Care), Mana (Value) and Whakapapa (Brand) which will direct the focus for our activities as we launch a new phase of business growth. Toitū te Tangata The board has supported the aspiration to bring our financial services in-house and this year that goal was realised in a transition that has been very smoothly implemented. We wish to acknowledge the collaborative efforts of Balance Accountants and Deloitte that enabled this to happen, as well as the years of service they have given to the incorporation. Together with Andrew, our CEO, we continue to invest in a workforce that is fit for purpose and committed to the

"...we continue to invest in a workforce that is ﬁt for purpose and committed to the AWHI-way."

TOITŪ TE MANA

$3.1m Earnings Before Interest & Tax

AWHI-way. This approach is extended to all our kaimahi, from those who work on our farms, to the administrative and management staff in our office. Our people are a valued resource and we will maintain this focus that keeps our business moving forward. Treating people and nature as family is one of the values that informs whatever we are doing each day and this is reflected in the Health and Safety policies that ensure our staff enjoy their work and return safely to their whānau each evening. The board takes particular interest in ensuring our words and actions are both pono and tika, in regard to the wellbeing and safety of our staff. Throughout the year, you will have read about our scholars and our contribution to growing the skills and capability of whānau through Te Āti Hau Trust in AWHI magazine. Providing opportunities for growth and development continues to be a priority. We are pleased that emphasis is also being placed on our kaumātua and marae. Toitū te Mana Our relationship with Te Hou Farms, and in particular Ngāti Apa Wairiki and the Dalrymple whānau through Waitatapia Inc, continues to work well. This strategic partnership represented a long-term investment to enable us to spread revenue risk and strengthen our exposure to dairy. In line with forward projections, we are now coming into operating surplus which represents a positive outcome. We are currently in the process of undertaking a planned five-year review of this partnership. Our strategic objective to know our customers was reinforced as we journeyed to the USA to better understand their preferences for

honey, red meat and wool this year. The trip was an illuminating one and we all experienced valuable learning outcomes. One thing that really struck home was the desire our customers hold to want to know us as well as we want to know them. They want to hear our kōrero, embrace our whakapapa and understand our mahi. We remain confident that this strategy will take us to a value add premium based model, and we look forward to further briefing you at this AGM about what steps lie ahead. We are pleased to present a positive financial outcome for the year, as Andrew outlines in his report. Our continued investment into the core business is an ongoing requirement and enables the delivery of long-term, widespread benefits. In closing, I wish to thank my fellow board members for their continued

commitment and expertise. I am pleased that we continue to broaden our networks not just in the sector but also externally as we scan the horizon for the shifts and trends. Working as a whānau for the greater benefit of all brings me real pleasure on a personal level and I look forward to the year to come. To our shareholders and whānau, we continue to be humbled to work for our shared benefit as we make those ‘mokopuna decisions’ that will stand the test of time for the generations to come. Ngā manaakitanga

Mavis Mullins Chairperson

Ātihau-Whanganui Incorporation BOARD MEMBERS

ĀTIHAU-WHANGANUI INCORPORATION BOARD (LEFT TO RIGHT): Mavis Mullins (Chair), Che Wilson, Sarah Bell (Associate Director), Brendon Te Tiwha Puketapu, Whatarangi Murphy-Peehi, Keria Ponga, Rāwiri Tinirau and Shar Amner. (BELOW): Laurissa Cooney (Independent Director, Audit and Risk Committee).

TOITŪ TE MANA

Ātihau-Whanganui Incorporation BUSINESS AND BRAND STRATEGY 2018

Why

Our Purpose

Toitū te Mana, Toitū te Whenua, Toitū te Tangata To help people and nature ﬂ ourish together Summed up in our Core Brand Idea

Natural Togetherness

How

How we'll generate value

Tikanga

Tikanga is our source of legacy and competitive advantage

Products and Experiences

Foods Value Propositions Simply the purest foods, raised with wholehearted care

Other Value Propositions To be developed based on offer and audience

What

Our 5 Strategic Pou - our immediate focus areas

Tangata People

Growing the mana and wellbeing of our people, partners and customers

Whai Hua Productivity

Continuously improving through our collective wisdom and creativity

Morimori Care

Nurturing and protecting all life, and appreciating that all life is connected

Mana Value

Exploring and bringing higher value products and applications to new and existing markets

Whakapapa Brand

Building a premium brand through sharing our Tikanga and rich history

Our Values - informing our actions everywhere, every day

Be completely natural

Think creatively, act courageously

Treat people and nature as family

Ä&#x20AC;tihau-Whanganui Incorporation CEO REPORT

AWHIWHENUA PLAYS AN IMPORTANT ROLE IN THAT IT ALLOWS US TO OFFER OPPORTUNITIES TO URI, AND ENABLES US TO DEVELOP NEW TEAM MEMBERS FROM WITHIN THE ORGANISATION.

TOITŪ TE WHENUA Andrew Beijeman CEO

This year the progress we have made as a business has really gathered momentum, with several milestones standing as testament to the strength of our strategic framework and the operational focus we have on our strategic outcomes. Our strategy and direction for the future has been refreshed this year. This has enabled us to identify our tikanga, as both our legacy and competitive advantage, and our products, described as the purest foods raised with wholehearted care, as the pathway to generating value in our business for our shareholders.

Each day, at every level of the business from the executive management team to our people working on the whenua, we ensure our values of being completely natural, thinking creatively, acting courageously and treating people and nature as family continue to guide us in our daily decisions. Those decisions are driving us forward as we continue to deliver on our priorities of Tangata (people) – growing the mana and wellbeing of our people, partners and customers; Whai Hua (productivity) – continuously improving through our collective wisdom and creativity; Morimori (care) – nurturing

Ātihau-Whanganui Incorporation CEO REPORT

AWHIWHENUA TAUIRA (LEFT TO RIGHT): Tyla Whitewood, Ezekiel Anderson, Kate Price, Jackson Rickards, Shane Martin. (FRONT ROW): Tamati Butler.

and protecting all life, and appreciating that all life is connected; Mana (value) – exploring and bringing high value products and applications to new and existing markets and Whakapapa (brand) – building a premium brand through sharing our tikanga and rich history.

external health and safety audit last year. These have included facilitating further training for our managers and staff focusing on the involvement people have in accidents, managing dynamic risks, identifying hazards and the importance of speaking up in protecting yourself and your team.

People We have always held a consistent and enduring commitment to our kaimahi, recognising that their skills and wellbeing play an essential role in the success of our business.

Natasha has taken over leadership of our Awhiwhenua training programme, which has seen six first- year cadets complete the first half of their study year in 2018. Three second-year cadets are out on our sheep and beef farms gaining further practical experience which will stand them in good stead as they pursue a career in farming.

The appointment of Natasha Poloai into a new role of People and Safety Manager has enabled us to place a bigger focus on our strategic and operational goals in this area. She works closely with our farms and apiary management team to develop their skillsets and ensure they have the tools they need to lead from the front. Natasha also helps to keep our people safe as they carry out their daily mahi and has been working through a list of actions we identified through a voluntary

We completed the renovation of a single mens’ quarters to accommodate the second-year cadets, with work started on three other new builds to be completed by Christmas. This selfcontained accommodation plays an essential role in teaching our students how to be independent in their working and private lives. Awhiwhenua plays an important role in

that it allows us to offer opportunities to uri, and enables us to develop new team members from within the organisation. This is evidenced by a cadet who graduated last year now being employed as a shepherd on Ohorea station. AWHI welcomed five new managers to the team this year, with two of them taking up newly created positions following the resetting of Papahaua. It is particularly gratifying that two of those represented internal promotions with Greg Shaw moving to Waipuna station from his stock manager position at Tawanui and Hamish Alexander taking over at Te Pā after previously holding the role of stock manager at Tohunga station. A long-held aspiration to bring our finance and administration functionality in-house was realised in July this year with our Finance Manager, Brenton Barker and his team taking over this work. We are looking forward to the benefits this move will bring to the business in the coming year.

TOITŪ TE WHENUA

$21.6m

Total Revenue Farming One of the highlights of this season was the recognition of the work being done at Ohotu Station through the Ballance Farm Environment Awards, proving that environmental responsibility and farm profitability can successfully work handin-hand. The robust judging process gave the opportunity to be challenged about our approach to environmental sustainability in our role as kaitiaki of our whenua. It was useful to learn more about what other farms and businesses are doing in this area. Receiving the Farm Stewardship award was just the icing on the cake. We wish to congratulate Morikaunui Incorporation for their recognition in the awards as well. We will look for more opportunities to have our farms benchmarked and judged in this manner, such was the value of the experience. The season this year was very wet overall, helping to promote grass growth which boosted milk production levels to 226,077 kg/MS from 218,043 kg/MS last year.

The pasture conditions also meant we went into winter in a very strong position which we anticipate will be reflected positively in next year’s production figures. Our largest drystock station, Papahaua, was reset into two separate farms during the year as it became evident we were not getting the economies of scale you would expect from a property this size. Initial production rates are showing this to be a positive move. We have also taken greater control over our dairy operation at AWHI Dairy, moving away from a contract milker and placing a manager on the property. This has given us the opportunity to have greater control and grow the number of uri employed, which is a real positive. We reduced stock numbers at Operiki station by 1,200 ewes with the aim of reducing overhead costs and improving per-head production. This has seen an improvement in the profitability of Operiki, as lambing percentages on the farm have lifted. We have also seen positive environmental outcomes as steeper parts of the farm were retired

from grazing and will now be used for mānuka honey production. We expect to see the commercial benefits from this increased honey production in two-three years’ time. The number of lambs born this year was 94,336, a reduction on previous years. This was in part due to the reduced stock levels at Operiki, the decision not to lamb any ewes on our finishing farms and a few localised weather events contributing to higher mortality rates in some areas. Market prices for our drystock were favourable, with steers reaching $1,794 per head and lambs $109 per head – more than $14 per head than last year. We repeated our strategy of selling store lambs at both the start and the end of the season as it was successful for us last year. We are able to maximise the value of store lambs by selling them on the shoulders of the season whilst prioritising our breeding stock, giving them better access to pasture through summer and early autumn. These strategies lead to better performance levels throughout the year.

"The season this year was very wet overall, helping to promote grass growth which boosted milk production levels..."

Ātihau-Whanganui Incorporation CEO REPORT

"...our honey operation is an essential part of our business activities and we are continuing to sensibly grow and invest in this area."

Apiary While wet conditions are good for grass, they are no good for honey production, as heavy thundershowers knock flowers off plants and bees stay dry in their hives. This contributed to a reduced 55,725 kilograms of honey produced this year, compared to 80,760 kilograms last year, with a further 6,523 kilograms harvested off land owned by landowner partners. Prices were also lower at $65.90 per kilo, down $4 per kilo from last year. Strategically, our honey operation is an essential part of our business activities and we are continuing to sensibly grow and invest in this area. We have increased the number of hives that are wholly owned and managed by AWHI to 2,270 - almost double last year’s figure - and have a further 150 hives on contract. Our apiary team grew with the addition of three new beekeepers. The vast majority of our hives are sited on AWHI whenua, with just 740 hives on land owned by other people. This is a number we intend to grow over the next three years as we develop our plans to source and manage hives for

landowners on a contract basis. Environment The completion of two more projects in partnership with Ngā Whenua Rāhui has seen a further 511 hectares of native bush fenced off, helping to protect native flora and fauna. Ongoing project work continued across AWHI with a further 5.7km of waterways fenced to exclude stock during the year. Water quality has been a real focus of our environmental efforts this year and saw the launch of a project that will help measure the impact agribusiness is having on waterways that flow across three of our stations – Te Paenga, Ohorea and Tohunga – and into the Mangawhero awa. AWHI has commissioned Ngāti Rangi Trust to manage this research, which will adopt both scientific and Māori world views. Initial benchmarking of water quality occurred during the first half of 2018. The streams will be monitored each year to record any changes in health, and this information will be used to guide future environmental initiatives. The commitment to our environmental strategic priority remains a key driver in

how we manage and farm the whenua, a legacy our shareholders carry from their ancestors. We will continue to initiate and implement projects which benefit the environmental sustainability of our business. Added-value One of the highlights for the year has been the launch of our new consumer brand, Awhi, as part of our paddockto-plate philosophy to forge closer connections with our customers. Beef bred and raised on AWHI land is now being served at some of the best restaurants in Auckland under the ‘Awhi Farms Ruapehu Angus’ label. This as the result of a strategic partnership with distributor Foodchain. The business is also proud to supply the Angus Pure Special Reserve programme, which pays a premium for the high-quality marbling score we have developed in our meat through careful breeding and the manaaki our farmers provide for these animals. Another strategic partnership was forged this year when AWHI hosted Angus Pure and their United States-

Substantial progress has also been made in developing a marketing strategy to take our honey into off-shore markets. This is thanks to the relationship we have built with our strategic marketing partner, Foundational. The experience of working with Foundational has been valuable to both the governance and executive management teams and has delivered tangible benefits to the business, with the promise of more to come. The knowledge and experience we have gained over the last 12 months in adding value to both our beef and honey products will be put to good use as we start to explore other opportunities to move up the value chain across our product range. This work is at an early stage, with progress being made in a number of areas, as we look at how we can ensure our products

sit at the premium end of the market for both taste and quality. We can see an exciting journey ahead of us. Financial Results Total revenue for the financial year 1 July 2017 to 30 June 2018 stands at $21.6m, an increase of $2.3m from last year’s result. This is due to improvements in prices for sheep meat and an increase in the proportion of the honey harvested directly by AWHI which offset poorer honey yields. Our total equity increased to $159.6m (from $132.3m last year) due to an increase in land value offset by contingent liabilities.

TOITŪ TE WHENUA

based distributor Broadleaf. Broadleaf is a Kiwi company based in Los Angeles which supply meat and specialty foods from around the world to the lucrative US market.

organisation and the dedication and skill they give to their mahi each day. It has been an exciting year for us, a year of discovery, of achieving the goals we have set for ourselves and of continuing to lay the foundations for future success. I look forward to continuing to drive our progress forward in the coming months as we work towards our strategic outcomes, keeping our core purpose to help people and nature flourish together at the heart of everything we do. Ngā mihi

Total debt for the organisation remains consistent with the previous year at just under $31.0m. Our net surplus (before finance costs and non-operating valuations) stands at $3.1m, a 49% increase on last year’s figure.

Andrew Beijeman Chief Executive Officer

I wish to acknowledge and thank the Board, our management team and every member of the AWHI whānau for the belief and passion they bring to our

Ātihau-Whanganui Incorporation EXECUTIVE TEAM EXECUTIVE TEAM (LEFT TO RIGHT): Brenton Barker (Finance Manager), Natasha Poloai (People and Safety Manager), Andrew Beijeman (Chief Executive Oﬃcer) and Siwan Shaw (Business Manager). (BELOW): Whetu Moataane (Tikanga and Branding Manager).

Land and buildings valuation Our Total Comprehensive Income for the year ending 30 June 2018 At $27.9m, this increased $23.2m from last year (which was $4.7m). The main reason for this increase is that our land and buildings have significantly increased in value. Why we revalued our land and buildings International accounting standards require us to do this every three years, and bring the increase or decrease in value into the financial accounts. Ideally, we would get a ‘Fair Value,’ which means we would pay $35,000 to get an independent valuation carried out of all the farms at once, and then over $6,000 each year after that. How we carried out this revaluation We have used the ‘Quotable Value’, which is the latest government value that council completes each year for the purpose of calculating rates. Because

the auditor will not consider this to be ‘fair value,’ each year our accounts receive a ‘qualified’ audit We believe this is the most fi scally responsible approach We have a responsibility to you to manage our assets responsibly and in line with our values of toitū te whenua. While it’s nice to know the land is increasing in value, that doesn’t change our connection to it, and obviously it’s not for sale. We believe it is better kaitiakitanga over our assets if we don’t spend $35,000 on this process, and instead we can use that money towards things that benefit you, like trust grants, and further work to improve the whenua.

•

these assets are held in perpetuity for the sole benefit of our current and future shareholders

•

we think there are better places that we could use the money than on a valuation.

How we are protecting our whenua from risk of being sold to cover debt We have several controls in place: •

we maintain a strong relationship with the bank

•

we make sure in any given year we can cover our interest bill two and a half times over

•

we make sure we have enough

That is why we have decided not to seek an independent valuation:

other investments (stock, shares,

•

if we had to, so that land is never

the land and buildings are not for sale

investments) to cover all the debt at risk.

Ātihau-Whanganui Incorporation SUMMARY OF KEY FINANCIAL INFORMATION For the Year Ended 30 June 2018

AT A GLANCE

2018 $'000

2017 $'000

Total Revenue

21,569

19,290

Livestock

15,682

13,156

Milk

1,713

1,263

Wool

1,057

1,705

Apiary

2,264

2,716

853

450

18,508

17,231

3,061

2,059

Other Income

Total Expenses Net surplus before fi nance costs and non-operating revaluations

TOITŪ TE WHENUA

Ātihau-Whanganui Incorporation PERFORMANCE HIGHLIGHTS For the Year Ended 30 June 2018

Dairy Milk Production Livestock

226,077 kg/Ms 218,043 KG/MS (2017)

Lamb (average price)

$109 PER LAMB $96.97 PER LAMB (2017)

Environmental Responsibility

Awhiwhenua

6 3 1

1st Yr Cadets complete ﬁrst half of study in 2018 2nd Yr Cadets on sheep & beef farms gaining further practical experience Awhiwhenua Graduate now employed on Ohorea Station.

511ha of native bush fenced oﬀ.

Ballance Farm Environment Awards Ohotu Station recognised for Farm Stewardship Award at the 2018 Ballance Farm Environment Awards.

5.7km of waterways fenced to exclude stock. Research project launched to measure water quality and our impact on waterways which run across three AWHI Stations.

Apiary Hives wholly owned by AWHI

Launch of new consumer brand

2,270 1,200 (2017)

Total Revenue

Total Equity

Net Surplus*

$21.6m

$159.6m

$19.3m (2017)

$132m (2017)

$3.1m $2.1m (2017) *before ﬁnance costs and non-operating revaluations

Foundational brand thinking key to forging customer connections

In the fast-paced, dynamic, global marketplace we live in, connecting with customers is key to commanding greater value, but is a challenge all businesses, big or small, face on a daily basis.

But it’s a challenge that Foundational, a company that specialises in strategic brand marketing thinking, relishes. “Fundamentally, we help businesses understand where they are and where they could be, and how to go about getting there through linking their business and brain strategies together. By helping establish a brand’s foundations, its purpose and behaviours, we can create a brand strategy and story that connects with people on a deeply emotive level,” says Chris Meade, AWHI’s strategic brand marketing partner. “Connecting with customers in a real,

meaningful and authentic manner is key. We apply a three-way lens to identify what it is about a business that’s true and valuable to customers, that no one else can claim. That is how you identify a gap in the market and create a truly original brand that will set you out from everyone else,” explains Chris.

“In this environment, companies have

“Brand marketing has changed a lot. Previously companies were able to talk at potential customers, it was all about trying to ‘control the message’. But today’s consumers are far more discerning and are able to see straight through the ‘corporate BS’ and immediately share their views with the entire world.

organisation around a central promise

to speak with their actions – it’s what they do and how they interact with their customers that is vitally important. And how AWHI people naturally act is becoming very valuable to today’s consumers. “It’s about aligning all actions of the to customers. If you get it right your customers become your advocates. If they believe in the truth of who you are and value what you do, that is a very powerful thing.” Chris began working with the ĀtihauWhanganui Incorporation in 2017 to

TOITŪ TE WHENUA

“AWHI IS PASSIONATE ABOUT THEIR TIKANGA OF SUSTAINABLE FARMING. THEY RECOGNISE THAT CONNECTION BETWEEN THE WELL-BEING OF THE LAND AND ITS PEOPLE, AND WE NEEDED TO EXPLORE HOW TO TELL THAT STORY AND DEVELOP A BRAND THAT BRINGS THAT CONCEPT TO THE FORE.” Chris Meade, Foundational Brand & Marketing Strategist

develop the AWHI brand and story. More recently, the partnership has been exploring how to move the mānuka honey AWHI produces up the value-chain, in line with AWHI’s paddock-to-plate strategic philosophy, from a commodity-based product to a high-quality proposition sold directly to discerning consumers in the United States of America. “Our approach is to work with our partners, involving them right from the start, to form, test and implement thinking. This not only means the process is a rapid one, but it also helps build clients’ internal capability and confidence, as they learn through doing,” says Chris. “AWHI is passionate about their tikanga of sustainable farming. They recognise that connection between the well-being of the land and its people, and we needed to explore how to tell that story and develop a brand that brings that concept to the fore." Chris, along with his partners Rob Achten and Gareth Gardner - who both played notable creative roles in the success of merino clothing company Icebreaker - curate a network of specialist service providers in design, photography, P.R., digital engagement,

creative writing as well as product and service innovation to help businesses plug their capability gap.

“I am looking forward to continuing the

Foundational called on these specialists in the recent AWHI Honey Market Validation project, which identified the USA as the best market into which to launch its mānuka honey product. The project began with the creation of and early-stage online consumer testing of three rough product propositions.

of American homes and achieve our

The one that resonated the most was then refined further and an actual prototype of a brand jar was created and filled with honey ready to travel to San Francisco, California. There the AWHI team gathered deeper market insights through meeting with potential retailers and consumers to get their feedback. Chris says, “The best form of market validation is for clients to see actual customer reactions with their own eyes. It’s way more powerful than any written report could ever be, as well as being way faster and more fun to boot!” “The whole process was a positive learning opportunity for us,” says Andrew Beijeman, CEO of AWHI. “Chris really helped us see what we could achieve and how far we could take our story and our product.

journey as we decide what next steps to take to put AWHI honey in the pantries strategic goal to deliver sustainable returns for our shareholders.” With the research element of the process complete, Chris will now work with the AWHI board and executive management team to decide how the execution phase of the process will be carried out. “Execution is everything. My role now is to help the team maintain the momentum we have created to get actual runs (sales) on the board,” says Chris. “All businesses face the tyranny of the day job, where the existing core tasks can take away the focus of what they want to do. Now the core challenge is to keep pushing ourselves forward into new areas whilst still doing our day jobs. “The interest in the AWHI brand is growing, even without pushing too hard. I truly believe AWHI has an opportunity to do something quite special. Something that we – and indeed the wider New Zealand public – can be genuinely proud of.”

Te Ä&#x20AC;ti Hau Trust CHAIRPERSON'S REPORT

THE TRUST EXISTS FOR THE PURPOSE OF SUPPORTING ITS SHAREHOLDERS AND THEIR BENEFICIARIES TO ACHIEVE THEIR DREAMS AND ASPIRATIONS THROUGH THE DISTRIBUTION OF EDUCATION AND GENERAL GRANTS.

TOITŪ TE TANGATA Keria Ponga Trust Chairperson

E NGĀ URI O TE MOREHU WHENUA, TĒNĀ KAUTAU KATOA. TĒNĀ HOKI TĀTAU ME Ō TĀTAU TINI MATE KUA WHETŪRANGITIA HEI WHETŪ RAHI I A TĀTAU I TE PŌ. HURI ATU TE PŌ, NAU MAI TE AO MĀRAMA. HE PŪRONGO TĒNEI E WHAKAATU ANA I NGĀ HUA KUA PUTA KI NGĀ URI, KI NGĀ WHĀNAU ME TE IWI WHĀNUI O TĒNEI WHENUA. NŌ REIRA E TE IWI, HE KUPU WHAKAMIHI TĒNEI KI NGĀ TĀNGATA KUA EKE KI NGĀ TAUMATA O TŪMANAKO. TĒNĀ KAUTAU KATOA.

It is my privilege to present my chair report on the activities of Te Āti Hau Trust for the 2017-2018 financial year. The trust exists for the purpose of supporting its shareholders and their beneficiaries to achieve their dreams and aspirations through the distribution of education and general grants. A cause for celebration for us, is that each year we see an increasingly wide variety of applications to support our people, who are representing us on the world stage, and at home.

Te Āti Hau Trust CHAIRPERSON'S REPORT

$360,000 Total Trust Income

"...each year we see an increasingly wide variety of applications to support our people, who are representing us on the world stage, and at home."

A real focus this year has been on kaumātua and marae. It is important for the trust that our kaumātua enjoy good health and a sense of well-being. It is equally important that our marae are accessible and structurally safe. It is pleasing to see the number of applications in all grant categories has increased, benefitting more of our shareholders and their whānau. Another priority has been streamlining our processes so we accurately fulfill the obligations laid down by the Ātihau-Whanganui Incorporation (AWHI) board. This has included reviewing the applications’ process and amendments in criteria for some grant categories. Simplifying the application process will continue to be a priority for the trust, in order to better reflect and respond to the changing needs of our shareholders. I would like to take this opportunity to welcome our newest board members, Independent Trustees, Jessica Smith – who took up her appointment at the end of 2017 – and Aaron Rice-Edwards. We look forward to their significant contribution.

There was a lot of interest in these roles and calibre of the applicants was extremely high. It was a humbling experience to work through the robust selection process. On behalf of the board I would like to acknowledge our outgoing Independent Trustee Jenny Tamakehu and thank her for the passion and commitment she brought to the role. We wish her well in her future endeavours. We also welcome Whatarangi Murphy-Peehi who has replaced Brendon Te Tiwha Puketapu as board representative. Education Grants From doctorates in Education and Geoscience to Business and Agriculture diplomas, the wide range of educational pursuits is both inspiring and satisfying. We are proud of our whānau, and to this end, we approved 238 applications and distributed a total of $151,362. More than 53% of all grants were for tertiary students with 26% made up of secondary school students.

TOITŪ TE TANGATA

• Marae 5 applications totalling $57,650 approved (more than double last year’s figure of $25,500), in some cases enabling repairs and maintenance under urgency to address health and safety concerns; road costs to allowing better access to marae, and a ride-on mower. • Tangihanga koha $19,800 was distributed to provide a tent to whānau in need. An exciting initiative we are pursuing is an AWHI Alumni Programme which will ensure we stay connected with shareholders and beneficiaries who have received education support. Look out for updates about this project in future issues of AWHI magazine.

General Grants Covering sport, art and travel, cultural activities, kaumātua health and wellbeing and marae initiatives, the trust distributed a total of $147,295 during the year.

this area. Much of this was to support groups travelling to attend the annual Hui Aranga, an important event on the iwi calendar that enables us to maintain our cultural and spiritual values, and renew whānau connections.

This total was made up of;

• Kaumātua 28 applications for assistance totalling $22,820. This is a considerable increase on last year’s distribution of $12,949. Recipients received help with personal needs such as dental work, hearing aids, prescription glasses, as well as support to ensure homes are warm, dry and safe to live in.

• Sport, Art and Travel $13,930 was granted to assist these dedicated young people. The wide range of sporting endeavours undertaken by grant recipients was for national and international competitions. • Culture $33,095 was distributed in

There has been an overwhelming amount of correspondence from shareholders acknowledging the support they have received from the Trust. Therefore, with my report obligations complete, on behalf of Te Āti Hau Trust board I would like to thank the AWHI board and our shareholders for the ongoing support and faith in our work. Kia tau iho ngā manaakitanga o te wāhi ngaro ki a koutou katoa

Keria Ponga Trust Chairperson

Te Āti Hau Trust TRUSTEES

Keria Ponga (Trust Chair)

Whatarangi Murphy-Peehi

Shar Amner

Jessica Smith (Independent Trustee)

Aaron Rice-Edwards (Independent Trustee)

Trust support creates benefit for all Receiving support from Te Āti Hau Trust is seen as a real privilege by recipients and many give back to their community in appreciation once their studies are complete. For some, the opportunity comes a little sooner, as is the case for Dr Wiremu MacFater and Jacob Robinson.

"When you receive support such as a grant from the Te Āti Hau Trust, it gives you a real connection to that organisation and the community they represent." Dr Wiremu MacFater

community at the hospital gave me a way of doing that, which was great.”

Wiremu received an educational grant from the trust while studying for a Bachelor of Medicine and Surgery at Auckland University, and has gone on to receive further support for his PhD studies, which focus on improving pain management for patients after major abdominal surgery, again based in Auckland. “Once I was a qualified doctor, I worked at Whanganui Hospital for a time, and still try and get a few shifts in if they need me,” he says. “When you receive support such as a grant from the Te Āti Hau Trust, it gives you a real connection to that organisation and the community they represent.” “I felt very strongly that my people were making an investment in me and I really wanted to pay that back to them. Being able to care for the Whanganui

Jacob Robinson, whose family has been involved with Ātihau-Whanganui Incorporation (AWHI) and Te Āti Hau Trust for many years, with his grandfather Don Robinson serving on the board, is also using the knowledge he gained studying for an Honours degree in Earth Sciences to help iwi.

forward and found there was plenty of help, if it was needed, from AWHI staff. Keria Ponga, Chair of the Te Āti Hau Trust, says Wiremu and Jacob are great examples of how the aims of the Trust are made a reality. “Investing in the future of AWHI shareholders and their whānau by supporting their educational aspirations is a key strategic aim of Te Āti Hau Trust,” she says. “Wiremu and Jacob are just two examples of how this benefits the community we serve. “Our whānau are studying a diverse and broad range of subjects which makes the future for us all an exciting prospect. “I, along with my fellow board members, look forward to continuing this work and seeing our communities grow and prosper together, as a result.”

The trust recently approved more support for his PhD studies developing sediment fingerprinting techniques to be used in researching the Whanganui river. “The skills I have gained through my studies have meant that I can now support iwi by providing mapping services for a wide variety of projects, while continuing my work to gain a greater understanding of the region,” he says. “I’ve also been able to help others to apply for grants through the trust. “Education opens so many doors, not just for individuals but for the whole community, so I really want to thank the trust for the support they have given me.” Both Wiremu and Jacob found the application process to be straight-

"Education opens so many doors, not just for individuals but for the whole community, so I really want to thank the Trust for the support they have given me." Jacob Robinson

TOITŪ TE TANGATA

Te Āti Hau Trust SUMMARY OF KEY TRUST FINANCIAL INFORMATION For the Year Ended 30 June 2018

Total Grants Distribution

General Grants

Education Grants

$298,657

$147,295

$151,362

385 TOTAL

147 TOTAL

Education

238 TOTAL

Marae

51% Secondary 10% Medical 14% Other 25% Tertiary

More than double last year's distribution

$57,650

$25,500 (2017)

* HIGH PERFORMANCE, OVERSEAS, AGRICULTURE, POST GRADUATE

Kaumātua Considerable increase on last year's distribution

$22,820 $12,949 (2017)

Kaumātua

assistance supported Dental work Hearing Aids Prescription Glasses Warm, dry, safe homes

Te Ä&#x20AC;ti Hau Trust GENERAL GRANTS LIST SPORT, ART & TRAVEL GRANTS Recipient Category

Bailey Fabish

NZ Secondary School Waka Ama Nationals 2018

Recipient Category Kyla Joseph

NZ Secondary School Waka Ama Nationals 2018

Brayden Tyson

NZ Secondary School Waka Ama Nationals 2018

Mahinarangi Millar- Potaka

U21 Mixed Reps Senior Touch Finals in Auckland

Caleb Akapita

NZ Secondary School Rowing Regatta

Maraki Aumua

NZ Basketball 13U Boys Basketball Academy tour to Las Vegas

Mathew Rapana- Tuirirangi

NZ Secondary School Waka Ama Nationals 2018

Mitchell Miller

NZ Under 20 Mixed Youth Touch World Cup

Moana Ward

NZ Secondary School Waka Ama Nationals 2018

Neo Tichbon

NZ Secondary School Rowing Regatta (Maadi Cup) 2018

Parewaka Marae

Hunting Competition

Raina Wiari-Wroe

NZ Secondary School Waka Ama Nationals 2018

Raymond Rapana- Tuirirangi

NZ Secondary School Waka Ama Nationals 2018

River-Jade Love- Anderson

NZ Secondary School Waka Ama Nationals 2018

Caleb Mareikura Martin Under 20 Mixed Youth Touch World Cup & NZ Under 21 Men's Kiwi Tag Blacks World Cup Carla-Moana Thompson U16 NZ National Junior Touch Tournament Danielle Tahana

NZ Secondary School Waka Ama Nationals 2018

Dean Christensen

National Youth Touch Championship

Devan-Rose Morehu-Thompson

NZ Secondary School Waka Ama Nationals 2018

Devon Maihi

NZ Secondary School Softball Nationals 2018

Donovan Thompson

NZ Secondary School Rowing Regatta (Maadi Cup) 2018

Harmony Rerekura- Challis

NZ Secondary School Waka Ama Nationals 2018

Isabella Osborne

National Waka Ama Champs

Jackson Mana Hardwidge

U17 International Softball Tournament in Australia

Jahnae Rerekura-Challis NZ Secondary School Waka Ama Nationals 2018

Kauri Ezra Murray Tournament in Beijing

International Wheelchair Basketball

Kelly Houtham

NZ Under 20 Mixed Youth Touch World Cup

Kiana Millar

U21 Mixed Reps Senior Touch Finals in Auckland

Krystal Hawira

NZ Secondary School Waka Ama Nationals 2018

Sage Mareikura Martin NZ Under 21 Men's Kiwi Tag Blacks World Cup Shakaia Taiaroa

Regional Rep for Soccer to represent NZ in Australia

Tui Wikohika

Junior National Snowboarding Championship

Tyler Hawira

NZ Secondary School Waka Ama Nationals 2018

Tyrone Houtham

NZ Under 20 Mixed Youth Touch World Cup

Tyrone Pirere

NZ Secondary School Softball Nationals 2018

Te Āti Hau Trust GENERAL GRANTS LIST CULTURAL Recipient Category

Recipient Category St Vincents

Hui Aranga

Ātihau-Whanganui 50 Year Celebration Book

Te Ati Hau Trust contribution

Summah Hartley

Youth Search & Rescue Programme

Maungārongo Marae

Hui Aranga Organisation

Tawhiao McMaster

Represent NZ at 8th World Water Forum in Basilia

Pakaitore Grant

Annual Hui

Te Roopu o Parikino

Hui Aranga

Rāwiri Tiniaru

Represent NZ at 8th World Water Forum in Basilia

Ruapehu College

C.A.C.T.U.S

St Peter Chanel (Hui Aranga)

Hui Aranga

28th NZ Māori Battalion Anzac Day costs

Te Roopu Wahine Māori Support Māori Womens Welfare League AGM and Ball Te Wainui-a-Rua Cultural Club

Hui Aranga

KAUMATUA

Annie Bound

Recipient Recipient

James Olney

Recipient Recipient Lovey Read

Olive Kawana

Don Neilson

James Peeti

Mary Wakefield

Pearl Barnes

Fred Thompson

Jennifer Rapana

Michael Matthews

Puawai Thompson

Gerald Hikaka

Joan Firmin-Jones

Myra Thompson

Rayleen Hirini

Gloria Biddle

Kura Simon

Nga Tai O Te Awa Trust

Robert Hikaka

Harold Taurerewa

Lilian Georgina Wardlaw (Georgie)

Nikora Poumua

Teresa Katene

Olive Hawira

Walter Wallace

Heeni Ranginui

MARAE

Atene Marae Trust

Recipient Category

Ride on mower

Recipient Category Te Ao Hou Marae

Upgrade ablution block

Matahiwi Marae

Second coat seal on Matahiwi Marae road Marae repairs & maintenance

Te Puke Marae (Raetihi Marae)

Urgent marae repairs

Patiarero Marae

Te Āti Hau Trust EDUCATION GRANTS LIST SPECIAL SCHOLARSHIPS Scholarship

Recipient

Qualification

Ātihau-Whanganui - Ravensdown Undergraduate Scholarship

Clay Langford

Bachelor of Agriculture

Te Āti Hau Trust - Balance - Deloitte Accounting Scholarship

Aaron McGregor

Diploma in Business Management & Accounting

Robyn Murphy-Peehi Scholarship

Roy Hoerara

Doctoral Thesis PHD

Ohotu Scholarship

Ringapoto Taurerewa Kendrex Kereopa Joshua Firmin

LBT Certificate in Agriculture Bachelor of Social Sciences Bachelor of Medicine & Surgery

TERTIARY GRANTS Recipient

Qualification

Recipient

Qualification

Aaron McGregor

NZ Diploma in Business

Julia Wikeepa

Bachelor of Social Sciences

Ahlia-Mei Ta'ala

Bachelor of Architectural Studies

Kama Whatu

Bachelor of Nursing

Anahera Aramakutu

Poutuaronogo Puna Maumahara (Information Managament)

Kauri Neilson

Bachelor of Computer Graphic Design

Angeline Walters

Bachelor of Science Major: Physiology

Kaylin Huwyler-Hunia

Degree in Commerce majoring in Finance

Arahia Hartley

Level 3 & 4 Career and Study

Ashleigh Tahiwi

Bachelor of Physiotherapy

Caleb Tichbon

Bachelor of Commercial Music

Celine Selwyn

Bachelor of Sport & Exercise Science

Cheryl Marriner

Bachelor of Applied Science (Environment)

Chrystal Ruru- Canterbury

Cert in Quality Assurance

Constance Marshall- Waiwiri

Bachelor of Occupational Therapy

Courtenay Durston

Bachelor of Social Studies

Cressida Ririnui

Bachelor of Social Science with Honours

Daniel Tauru

Small Business Management Level 4

Dayne Perkins-Gordon Bachelor of Science: Computing and mathematics Diane Wildermoth

Cert of Tertiary Teaching

Elizabeth Namana

Toi Paematua Dipl in Māori Art

Ella Duxfield

Bachelor of Applied Science

Faith Taputoro

Certificate in Graphic Design

Faith Tioro (McCallum) Poutuarongo Kaitiakitanga Putaiao Y2

Grace Parkes

Bachelor of Arts

Hope Tioro

Physcology major

Joanne Piripi Raranga

Bachelor Māori Art - Maunga Kura Toi

Joella Tahi

Bachelor of Business Marketing Major Branding

John Matthews

Bachelor of Matauranga Māori

Jonathon Barr

NZ Diploma in Architectual Technololgy

Julia Wareham

LLB Law degree

Kealyn Marshall-Nyman Bachelor of Arts & Bachelor of Teaching King Love

B.A. Māori studies

Larissa Tucker

Law & Te Reo

Macy Duxfield

Bachelor of Laws & Bachelor of Arts

Maddisen Ratten

Bachelor of Sport & Recreation

Madison Durston

Bachelor of Arts

Maggie Tapa

Bachelor of Science

Maia Maniapoto-Cheer Bachelor of Toursim Management Matarena Treanor

NZ Certificate in Cookery Level 4

Matariki-a-Puukeko Te Utupoto-Teki

NZ Cert in Study & Career Prep Lvl 3

Mikaya Teki

Bachelor of Nursing

Moana Rangiaho

Bachelor in Primary School Teaching

Natalie Healey

Bachelor of Law

Natayla Peni

Bachelor of Health Sciences (Public Health)

Nga Remu Tahuparae

Bsc Major in Chemistry & Geography

Patricia Forbes

NZ Cert in Health & Wellbeing Lvl 4

Paul Baker

Bachelor of Culinary Arts

Pisivalu Pou-Tulisi

Bachelor of Creativity (Performing Arts)

Raukura Tiopira

Te Aho Tatairangi: BA Māori Medium & Diploma in Teaching

Raukurawaihoea Waitai Bachelor Māori Visual Arts Rehara Maaka-Yates

Bachelor of Applied Management - majoring in Accounting

Rena Akapita

NZ Diploma in Tourism & Travel

Rio Bell

Bachelor of Commerce

Robin Taura

Diploma of Māori Arts

Royden Huwyler-Hunia Bachelor of Science Psychology major

Te Āti Hau Trust EDUCATION GRANTS LIST TERTIARY GRANTS (CONTINUED) Recipient

Qualification

Recipient

Qualification

Saandra Phillips

Bachelor of Social Work

Samantha Farrell

Bachelor of Health Science (Physiotherapy)

Shania Allen-Jury

Bachelor of Science majoring in Bioligy & Psychology

Shannon Baker- Pokotea

NZ Cert in Study & Career preparation

Te Miringa Parkes

Bcomm/BA conjoint

Sharyn Maraku

Sharon Marshall

Bachelor of Social Work

NZ Certificate in Apiculutre Level 3

Shayde Tuiriirangi

Cert in Beauty Lvl 4

Danielle Rihia

Bachelor of Teaching

Sofia Tucker

Bachelor of Criminal Justice

Kelly Kingi

Māori Resource Management

Kristie Rihia

Sonny Vercoe

Bachelor of Engineering (hons)

Bachelor of Teaching

Taine Julian

Bachelor of Commerce

Mako Osborne

Bachelor of Commerce

Parekaawa Turia

Taini Te Awhe

NZ Cert in Study & Career Prep Lvl 3 & 4

Bachelor of Nursing

Tamahauiti Potaka conjoint

Bachelor of Commerce/Bachelo of Science

Sonny Nepia

Entrepreneurship & Innovation

Te Raina Durie

Bachelor of Arts

Tawhiao McMaster Taylor-Dayne Cashell

Bachelor of Arts/Laws

Tuupuhi Karaitiana

Dipl in Hospitality Management Level 5

NZ Bachelor of Business

Aroha Dykes

Unitec

Te Arepa Teki

Toi Houkura (Bachelor in Māori Visual Arts)

Aroha Kara-McLeod

Waikato University

Te Awhina Plumridge

Bachelor of Laws & Arts

Ruby August

Bachelor of Teaching (Primary)

Te Kopae Taputoro-Filo Business & Commerce Te Wainuiarua Poa

Bachelor of Arts (Māori Studies) and Bachelor of Laws

Te Whakahawea Pakai Cert in Contemporary Music Performance - Level 4

Rangimarie Te Awe Awe

Dipl in Hotel Management

Autumn-Leigh Ratana UCOL Whanganui Cameron Hurley

Te Wananga o Raukawa

Dakota Ruta

Auckland University

Dayne Perkins-Gordon Waikato University Helen Naidu

Training for You (3 Months)

Hinetiki Karaitiana

Te Whare Wananga o Awanuiarangi

Tiere-Rose Gallagher

Bachelor of Laws & Māori

Jacob McGregor

Victoria University

Titaha Townsend

Certificate in Graphic Design

Josh Lillas

ATT - Apprenticeship Trade Training

Trevor Waikawa

Bachelor in Science, Geography & Environmental Management

Joshua Hurn

Massey University

Trina Paewai

Bachelor of Business Studies

Karihi Whanarere

Weltec Wellington

Tyrel Marino

NZ Cert in Health & Wellbeing Lvl 4

Len-Juane Rossiter

Eastern Institute of Technology

Vasilios Kostidis

Bachelor of Performing and Screen Arts

Max Joel Butters

UCOL

Waimihia Maniapoto- Love

Bachelor of Fine Arts & Bachelor of Arts

Meikura Williams

Victoria University

Ngareta Glendinning

UCOL

Emily-Louise Dixon

Bachelor of Midwifery

Paige Harawira

Waikato University

Mikaere Teki

Bachelor of Physical Education

Ariana Joseph

Te Aho Tatairangi: BA Teaching Māori Medium

Brittany Taylor

Bachelor of Medicine & Surgery

Camilla Allen

Bachelor of Applied Business Studies

Fiona Nicoll

Bachelor of Science majoring in Anatomy

Jordan Urwin

Bachelor Business Management

Lara Takarangi

Bachelor of Health Sciences in Nursing

Michael Stewart

Bachelor in Engineering (Honours)

Roy Williams (Wiremu) Te Wananga o Aotearoa Sueanne Hasler

Training for You - 5 month course

Tariana Turia

UCOL Whanganui

Te Arepa Teki

EIT

Te Oranga Whanarere

Massey University

Te Wainuiarua Poa

Victoria University

Trent Bell

AUT

Tukariri Kemp Dryden

Waikato University

Te Āti Hau Trust EDUCATION GRANTS LIST MEDICAL GRANTS Recipient

Qualification

Recipient

Qualification

Alexandra Kumeroa

Bachelor of Nursing

Waimarama Matena

Bachelor of Medicine & Surgery

Arihia McGregor

Graduate Diploma in Psychology

Waimarama Tairi-Bartlett Bachelor of Nursing Level 7

Ashley Hape-Tonihi

Bachelor of Nursing

Alayna Brooks

Bachelor of Nursing

Dakota Hall

Bachelor of Registered Nursing

April Hyland

First Year Health Science

Frith Teka

Masters in Nursing

Brittany Taylor

Bachelor of Medicine & Surgery

Hayley Robinson

Bachelor of Nursing - Year 2

Crystal Glendinning

Bachelor of Medical Laboratory Science

Joshua Firmin

Bachelor of Medicine & Surgery Year 6

Ebony McMaster

Bachelor of Nursing

Lace Neilson

Bachelor of Nursing Lvl 7

Hemi McKechnie

Bachelor of Pharmacy

Lorraine Tyson

Bachelor of Nursing Yr 3

Ihaia Ryan

Bachelor of Medicine & Surgery

Marcia Apatu

Bachelor of Nursing - Lvl 7

Lanice Ranginui

Diploma in Enrolled Nursing

Nikita Ngarongo-Porima Bachelor of Health Science - Physiotherapy

Lorraine Tyson

Bachelor of Nursing

Taniko Tamehana

Rachel Pirere

Bachelor of Nursing

Tara Ngatai-Broughton Health 550 Professional Nursing Practice

Sarah Cornes

Bachelor of Medicine & Surgery

Teresa Wakefield

Tina Peina

NZ Certificate in Pharmacy

Bachelor of Nursing Bachelor of Nursing

HIGH PERFORMANCE GRANTS Recipient

Qualification

Recipient

Qualification

Deane Mason- Loveridge

Bachelor of Arts majoring in Psychology & English

Rangipai Kawau

Bachelor of teaching Māori Medium/ Diploma Māori Education

Leanne Hiroti

NZ Diploma in Business Accounting

PHD GRANTS Recipient

Qualification

Recipient

Qualification

Kevin Haunui

Phd in Education

Wiremu McFater

Phd Medical

POST-GRADUATE GRANTS

Recipient

Qualification

Recipient

Qualification

Elizabeth Hooker

Post Grad Dipl in Educational Leadership

Jacob Robinson

Phd Geoscience

Daniel Teka

Post Graduate diploma in Secondary Education Teaching

Jacquiline Tamaki

Te Tohu Paerua - Masters in Education

Judy Kumeroa

Masters in Professional Practice

Kristie Treanor

Post Grad Dipl Education - Māori Medium

Rama Ashford

Te Aho Paerewa - (Post Graduate Māori Medium Teaching)

Sarita Taurima

Master of Management (Marketing)

Shanell Wallace

Te Aho Paerewa - (Post Graduate Māori Medium Teaching)

Hannah Moore (Walker) Post Graduate diploma in Education - Literacy learning Kylie Takarangi

Post Grad cert in Sports Physiotherapy

Marama Allen

Master of Secondary School Leadership

Shona Kapea-Maslin

Doctor of Philosophy - Māori Studies PhD

Te Āti Hau Trust EDUCATION GRANTS LIST OVERSEAS GRANTS Recipient

Qualification

Recipient

Qualification

Madeleine Bell

Conjoint Bachelor of Arts & Bachelor of Commerce

Liam Wooding

Professional Performance Programme

Qualification

AGRICULTURE GRANTS Recipient

Qualification

Recipient

Hemi Potaka

Diploma in Agriculture

Whatarangi Biel-Peehi Bachelor Ag. Comm.

SECONDARY SCHOOL GRANTS Recipient

Qualification

Recipient

Qualification

Alysha Makatea

Whanganui High School

Patrick Hourigan

Wanganui Collegiate School

Amani Karauria-Hunt

Gisborne Boys' High School

Rawiri Winikerei

St John's College

Amber Hammond-Mars Cullinane College

Raymond Taitapanui

Whanganui High School

Angelle Hartley

Te Puke High School

Regan Tyson-Nepia

Whanganui High School

Ariana Potaka

St Joseph's Māori Girls' College

Rylee-Joan Wroe

Whanganui High School

Atama Ngatuere (Waitai?)

Cullinane College

Shannon Davis

Tai Wananga

Steele Spence

Tauhara College

Tamatahi Goff

Spotswood College

Atlantah Morgan-White Pakuranga College Atriane Marino

Whanganui City College

Bailey Fabish

Whanganui City College

Caleb Tiraha

Aotea College

Cheyenne Long

Whanganui Girls' College

Conor Dobbyn

Rotorua Boys' High School

Dean Christensen

Hamilton Boys' High School

Elijah Hepi-Hika

Cullinane College

Ethan Campbell-Smith Rongotai College Frances Te Koau

Te Kura o Kokohuia

Heta Mako

Newlands College

Hunter Morrison

Wanganui Collegiate School

Idy'a McKinney-Hall

Whanganui High School

Joshua Tiraha

Aotea College

Kieran Spence

P.North Boys' High School

Kyerah Smith

Tokomairiro High School

Lawrence Smallman

Edgewater College

Legacy Wallace-Latoa Rotorua Boys' High School Liam Spence

P. North Boys' High School

Lyric Bishop

Queen Elizabeth College

Maia Bidois

Western Heights High School

Merenia Ratana-Peina Manukura Neo Tichbon

Cullinane College

Nicholas Spence

Tauhara College

Tauri Maniapoto-Cheer Central Hawkes Bay College Tawhiwhi Karaitiana

TKKM o Tupoho

Te Mana Tamaki

Tai Wananga

Tiana McCallum

Tauranga Girl's College

Tyler Tapa-Wither

Darfield High School

Tyrone Miller

Palmerston North Boys College

Vayva Ridley

Woodford House

William Pahl

Hutt Valley High School

Zachary Campbell-Smith Rongotai College Ahungarangi Poutini

Whanganui Girls College

Alida Joe Pohatu-Barnes Rangi Ruru Girls' School Eliza Warbrick

Ruapehu College

Elliott Anderson

Cambridge High School

Finley Vernon

Christchurch Boy's High School

Hugo Bell

St Patrick's College

Mihi Hough

Whanganui Girls College

Ngarimu Matthews

Whanganui High School

Niki Lawrence

Manukura School

Tamsyn Harawira

Tauranga Girls' College

Te Amo McMaster-Davis Whanganui High School Te Otene Urwin

Tauranga Boy's College

Teesha Te Ua-Wright

Cullinane College

Tylah-Jade Turanga

Taumarunui High School

Ä&#x20AC;tihau-Whanganui Incorporation FINANCIAL STATEMENTS 2018

CONTENTS

Shareholding and Committee of Management Disclosures

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Financial Position

Statement of Cash Flows

Notes to and forming part of the Financial Statements

13 Stock on hand

14 Biological Assets

15 Investments in Associates & Joint Ventures

16 Property, Plant & Equipment

17 Share Investments

18 Intangibles (Emmission Trading Units)

19 Borrowings

1 Reporting Entity

20 Programmed Property Maintenance

2 Statement of Compliance and Basis of Preparation

21 Limited Partnership Deferred Capital Contribution

3 Basis of Preparation

22 Unclaimed Dividends

4 Specific Accounting Policies

23 Financial Instruments

5 Critical Accounting Estimates

24 MÄ ori Authority Credit Account

6 Revenue

25 Related Parties

7 Gains / (Losses) from Sale of Emission Trading Units

26 Contingent Liabilities

27 Subsequent Events

28 Operating Lease Arrangements

29 Commitments for Exposure

30 Capital

31 Reserves

Auditors' Report

8 Finance Income

9 Depreciation & Loss on Sale

10 Other Operating Expenses

11 Equity Accounted Investments

12 Income Tax

Ātihau-Whanganui Incorporation SHAREHOLDING & COMMITTEE OF MANAGEMENT DISCLOSURES For the Year Ended 30 June 2018 Shareholding Information

Greater than 5,000 shares Between 1,000 and 5,000 shares Between 500 and 1,000 shares Between 100 and 500 shares Between 5 and 100 shares Between 1 and 5 shares Under 1 share Totals

No. of Shareholders 12 237 301 1,434 4,101 1,547 1,295 8,927

0.15% 2.70% 3.40% 16.10% 45.90% 17.30% 14.50% 100%

No. of Shares Held

111,995 453,752 211,752 342,084 132,399 4,242 492 1,256,529

9.00% 36.00% 16.90% 27.20% 10.53% 0.33% 0.04% 100%

Committee of Management - Shareholding CoM members have the following shares in the Incorporation registered in their names as at 30 Sept 2018. Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau (From 8 December 2017) Shar Amner Te Tiwha Puketapu Toni Waho (To 8 December 2017) Whatarangi Murphy-Peehi

61.05 1,000.00 500.00 274.28 3,104.35

This schedule does not include shareholdings registered in the name of Trusts of which a CoM member may be a beneficiary. Committee of Management - Meeting Attendance There were eleven monthly meetings and one AGM of the Committee during the year. Member's attendance was as follows: Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau (From 8 December 2017) Shar Amner Te Tiwha Puketapu Toni Waho (To 8 December 2017) Whatarangi Murphy-Peehi

Ordinary 9 10 9 5 10 9 4 10

AGM 1 1 1 N/A 1 1 -

Committee of Management - Remuneration Members were paid fees and travel allowances during the financial year.

Che Wilson Keria Ponga Mavis Mullins (Chairperson) Rāwiri Tinirau (From 8 December 2017) Shar Amner Te Tiwha Puketapu Toni Waho (To 8 December 2017) Whatarangi Murphy-Peehi

Fees $

Comment

25,000 25,000 45,000 Vehicle Provided 18,212 25,000 25,000 11,626 25,000

Ä&#x20AC;tihau-Whanganui Incorporation STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 30 June 2018 Note

2018 $

2017 $

15,682,000

13,156,037

1,712,785

1,263,198

1,056,821

1,704,685

2,263,741

2,716,428

20,715,347

18,840,348

199,100

(36,000)

REVENUE Livestock

Milk Wool Apiary

Gain / (loss) from sale of emission trading units

Finance income

Rental income Other income TOTAL REVENUE

55,328

50,289

370,008

325,819

229,249

109,606

21,569,032

19,290,062

9,032,240

8,661,258

3,978,872

3,562,834

1,952,813

1,990,284

1,341,512

946,218

671,194

633,852

EXPENSES Farm working expenses Employee benefits expense Depreciation and loss on sale

Repairs and maintenance Governance and shareholder expenses Donations and scholarships Other operating expenses

TOTAL EXPENSES NET SURPLUS BEFORE FINANCE COSTS AND NON OPERATING REVALUATIONS

369,739

362,000

1,161,497

1,074,623

18,507,867

17,231,069

3,061,164

2,058,993

(1,624,768)

(1,675,699)

FINANCE COSTS Interest expense

REVALUATION GAINS / (LOSSES) Share of profit / (loss) from equity accounted investments

Gain / (loss) due to price changes on livestock NET SURPLUS / (DEFICIT) BEFORE INCOME TAX Income tax expense - current year movement

NET SURPLUS / (DEFICIT) AFTER INCOME TAX

(290,767)

(444,513)

(147,379)

4,928,913

998,250

4,867,694

(129,128)

1,127,378

4,867,694

OTHER COMPREHENSIVE INCOME Revaluation of available-for sale-investments Revaluation of property, plant & equipment

Revaluation of emission trading units

Share of gain (loss) on property revaluation of associates

Income tax relating to items that will not be reclassed subsequently

(101,335)

18,633

23,028,517

4,149,115

(165,558)

2,443,526

(2,691,199)

TOTAL OTHER COMPREHENSIVE INCOME - GAIN (LOSS)

26,828,624

(146,925)

TOTAL COMPREHENSIVE INCOME / (DEFICIT)

27,956,002

4,720,769

These financial statements are to be read in conjunction with the accompanying notes

Ä&#x20AC;tihau-Whanganui Incorporation STATEMENT OF CHANGES IN EQUITY For the Year Ended 30 June 2018 Capital Reserves $

PPE Reval Reserve $

Retained Earnings $

ETU Reserve $

72,260,903 25,571,917

4,030,350

AFS Share Reserve $

Total Equity $

BALANCE AT 1 JULY 2017

30,098,776

387,663 132,349,609

Adjustment to reclass land & buildings

(5,787,771)

5,787,771

Dividends paid

(691,089)

Transactions with owners

(691,089)

Net Surplus after Income tax

1,127,378

- Revaluation of emission trading units

4,149,115

Other Comprehensive Income - Revaluation of Property Plant & Equipment

23,028,517

- Revaluation of available-for-sale financial assets

(101,335)

- Share of gain (loss) on property revaluation of associates

2,443,526

- Income tax relating to items that will not reclassify Total Comprehensive Income for the Year

(2,691,199)

22,780,844

1,127,378

4,149,115

(101,335)

27,956,002

Transfer to Retained Earnings

1,191,321 (1,191,321)

BALANCE AT 30 JUNE 2018

24,311,005 100,829,518 27,199,527

6,988,144

286,328 159,614,522

BALANCE AT 1 JULY 2016

30,098,776

6,192,656

369,030 128,319,931

72,260,903 19,398,566

Dividends paid

(691,089)

Transactions with owners

(691,089)

Net Surplus after Income tax

4,867,692

Other Comprehensive Income - Revaluation of emission trading units

(165,558)

- Reclassification of AFS financial assets on sale

- Revaluation of available-for-sale financial assets

18,633

Total Comprehensive Income for the Year

4,867,692

(165,558)

18,633

4,720,767

Transfer to Retained Earnings

1,996,748 (1,996,748)

BALANCE AT 30 JUNE 2017

30,098,776

72,260,903 25,571,917

4,030,350

387,663 132,349,609

A description of the nature and purpose of each reserve is stated in note 31.

These financial statements are to be read in conjunction with the accompanying notes

Ātihau-Whanganui Incorporation STATEMENT OF FINANCIAL POSITION As at 30 June 2018

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Stock on hand Biological assets

2018 $

2017 $

194,475 2,984,147 632,279 33,321,342 37,132,243 37,132,243

7,119 2,909,158 1,050,818 31,980,408 35,947,503 1,635,473 37,582,976

143,859,621 10,362,102 1,540,702 6,988,144 162,750,569

119,968,846 6,284,224 1,552,168 4,032,529 131,837,767

199,882,812

169,420,743

19 21

9,993,918 2,066,666 1,727,915 332,699 20,000 262,659 14,403,857

1,385,650 401,718 100,000 265,970 2,153,338

19 20 22 12 21

21,000,000 149,158 2,153,205 2,562,071 25,864,433

30,731,208 2,119,923 2,066,666 34,917,797

40,268,290

37,071,135

159,614,522

132,349,608

27,199,527 132,414,995

25,571,916 106,777,692

159,614,522

132,349,608

13 14

Investments classified as held for sale TOTAL CURRENT ASSETS

NON CURRENT ASSETS Property, plant & equipment Investments in associates and joint ventures Share Investments Intangibles TOTAL NON CURRENT ASSETS

16 15 17 18

TOTAL ASSETS CURRENT LIABILITIES Borrowings Limited Partnership deferred capital contribution Trade and other payables GST payable Te Āti Hau Trust Employee entitlements TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Borrowings Programmed property maintenance Unclaimed Dividends Deferred tax liability Limited Partnership deferred capital contribution TOTAL NON CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Retained Earnings Reserves

31 30 & 31

TOTAL EQUITY

The Committee of Management of Ātihau-Whanganui Incorporation authorised the financial statements for issue on 28 September 2018. Signed for and on behalf of the Committee of Management:

Mavis Mullins Chairperson 28 September 2018

Brendon Te Tiwha Puketapu Chairman of the Audit and Risk Committee 28 September 2018

These financial statements are to be read in conjunction with the accompanying notes

Ä&#x20AC;tihau-Whanganui Incorporation STATEMENT OF CASH FLOWS For the Year Ended 30 June 2018

2018 $

2017 $

24,570,563

19,044,085

CASH FLOWS FROM OPERATING ACTIVITIES Cash was provided from: Receipts from operations Interest & dividends received

55,328

50,289

24,625,891

19,094,374

18,721,538

14,651,308

1,624,768

1,675,699

Cash was disbursed to: Payments to suppliers and employees Interest paid Net GST paid

NET CASH FLOWS FROM OPERATING ACTIVITIES

52,808

67,610

20,399,114

16,394,617

4,226,777

2,699,757

185,083

272,655

185,083

272,655

3,000,154

3,503,710

CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Proceeds from disposals of property, plant & equipment Cash was disbursed to: Acquisition of property, plant & equipment Purchase of Investments

379,515

536,175

3,379,669

4,039,885

(3,194,586)

(3,767,230)

262,710

1,840,000

262,710

1,840,000

Dividends

657,807

543,839

Grants & donations

449,738

362,001

1,107,545

905,840

(844,835)

934,160

187,356

(133,313)

7,119

140,432

194,475

7,119

NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCIAL ACTIVITIES Cash was provided from: Proceeds from borrowings Cash was disbursed to:

NET CASH FLOWS FROM FINANCIAL ACTIVITIES Net Increase / (Decrease) in Cash Held Cash at the Beginning of the Year CASH AT THE END OF THE YEAR

These financial statements are to be read in conjunction with the accompanying notes

ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 1. REPORTING ENTITY Ātihau-Whanganui Incorporation (AWHI) is registered under the Te Ture Whenua Māori Act 1993 and is incorporated in New Zealand. 2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION The financial statements for the Ātihau-Whanganui Incorporation have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (NZ GAAP) under the requirements of the Financial Reporting Act 2013 and the Te Ture Whenua Māori Act 1993. Ātihau-Whanganui Incorporation is a for-profit entity for the purposes of complying with NZ GAAP. AWHI qualifies for NZ IFRS (RDR) as it is not a large for-profit entity. The Incorporation is eligible for and has elected to report in accordance with Tier 2 For Profit accounting standards and has applied disclosure concessions. 3. BASIS OF PREPARATION The financial statements have been prepared under the historical cost basis except for land & buildings, biological assets and some financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historic cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The information is presented in New Zealand dollars and all values are rounded to the nearest dollar. The financial statements have been prepared using the significant account polices and measurement basis that are in effect at 30 June 2018 as summarised below. These were used throughout all periods presented in the financial statements. 4. SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of the Statement of Comprehensive Income and Balance Sheet have been applied: (a) Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable. Sales of livestock and other agricultural produce are recognised upon receipt by the customer and when the significant risks and rewards of ownership of the goods have been transferred. Rental income is recognised on a straight line basis over the term of the lease. Dividends received are recognised on receipt, net of nonrefundable tax credits. Milk proceeds are recognised in alignment with the processor Fonterra, recorded on a per dollar per kilogram of milksolid production basis. The policy for recognition of revenue for Emissions trading units is described in policy (g) below. (b) Expenses Expenses are recognised on a functional basis in the period in which they are incurred. Operating lease payments are recognised as an expense on a

straight-line basis over the lease term. (c) Trade Receivables Trade Receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectable amounts. Individual debts that are known to be uncollectable are written off in the period that they are identified. (d) Property, Plant & Equipment Items of property, plant and equipment, except for land, are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of property, plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Land is revalued every three years to the most recent rateable value (consistent with the requirements of Te Ture Whenua Māori Act 1993). Revaluations to rateable value are considered a departure from accounting standard NZIAS16 because ratings values are general rather than specific revaluations. Revaluations are reflected through

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Other Comprehensive Income and cumulative revaluations reflected in the PPE Revaluation Reserve. All other repairs and maintenance are recognised as expenses in the Statement of Comprehensive Income in the financial period in which they are incurred. The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line or diminishing value basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Depreciation rates applied to classes of assets are: Class Land Buildings Bridges Development Improvements Plant & Machinery Furniture & Fittings Motor Vehicles

From 0% 0% 2% SL 5% DV 0%

To 0% 20% DV 20% DV 25% SL 40% DV

6% DV

40% DV

8% DV 6% DV

40% DV 36% DV

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (e) Income Tax The Incorporation is registered as a MÄ ori Authority for income tax purposes. Current income tax assets and/or liabilities comprise those obligations to, or claims from, Inland Revenue and other taxation authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit,

which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the incorporation and it is probable that reversal will not occur in the foreseeable future. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income, based on the Incorporationsâ&#x20AC;&#x2122;s forecast of future operating results which is adjusted for significant non-taxable income and expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities are always provided for in full. Deferred tax assets and liabilities are offset only when the incorporation has a right and intention to set off current tax assets and liabilities from the same taxation authority. Changes in deferred tax assets

or liabilities are recognised as a component of tax income or expense in profit or loss, except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity, respectively. (f) Investments Investments in shares can be categorised as held-for-trading, held-to-maturity or available-for-sale. Shares held have been classified as available-for-sale. At balance date shares are revalued to fair value and any gains or losses reflected through other comprehensive income. (g) Intangible Assets (Emission Trading Units) Emission trading units have been purchased and earned off growing forestry. Pre-1990 Forest Land AWHI land contains pre-1990 forest land subject to the provision of the NZ emissions trading scheme (ETS). If the land is deforested the owner is required to surrender NZ Emission Trading Units (NZUs) and any shortfall not held by the owner must be purchased for surrender. As there is no intention to change the land use (native forest) AWHI recognises them initially at cost and revalues them at reporting date through other comprehensive income and reserves. Post-1989 Forest Land AWHI chose to enter the ETS for post-1989 forest land and earns NZUs as forests grow and carbon is stored in the forest from a 2008 baseline. NZUs are required to be returned to the Crown if the carbon stored in the specified area reduces. NZUs are initally recognised at cost and revalued to market value at reporting date through comprehensive income

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 and reserves. If the obligation to return units arises this obligation is recognised on the Balance Sheet. Revenue recognition - On derecognition gains or losses from the carrying value relating to the trading of NZUs are reflected in Net Surplus and the carrying value is transferred from revaluation reserve to retained earnings. (h) Financial Instruments Financial assets and financial liabilities are recognised when AWHI becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through net surplus) are added to or deducted from the fair value of the financial assets or financial liabilities, as approriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through net surplus are recognised immediately in net surplus. Financial Assets Financial assets are classified into specified categories: financial assets "at fair value through net surplus", "held to maturity" investments, "available-for-sale" (AFS) financial assets and "loans and receivables". The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All transactions are recognised (or derecognised) on a trade date basis. AWHI does not currently hold any held for trading financial assets or held-to-maturity investments.

Available-for-sale financial assets are non-derivatives that are either designated as AFS or are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through net surplus. AFS financial assets held by AWHI include supplier shares which are issued at $1 and if surrendered are repaid at a $1. Where shares are able to be traded on the listed or unlisted exchange these are reflected at market value. They also hold shares for which there are value changes, including Fonterra shares. These are reflected at values advised by Fonterra. Dividends on AFS equity instruments are recognised in net surplus when AWHI's right to receive the dividends is established. Loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted on an active market. Loans and recievables (includes trade and other receivables, and cash and cash equivalents) are measured at amortised cost using the effective interest rate, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the effect of discounting is immaterial. Impairment of financial assets: Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been effected. Impairments are assessed on an individual basis.

Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through net surplus or other financial liabilities. No financial liabiliites are held at fair value through net surplus. Other financial liabilities (including borrowings and trade and other payables) are initally recorded at cost and subsequently measured at amortised cost using the effective interest method. Due to the short term nature of trade and other payables these are not discounted. Borrowings are subsequently measured at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred. (i) Provisions Provisions are recognised when the entity has an obligation which can be reliably measured at balance date as a result of a past event and it is probable that the entity will be required to settle the obligation. Where the entity expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement. Provisions are measured at the present value of managementâ&#x20AC;&#x2122;s best estimate of the expenditure required to settle the obligation at balance date. Movements in the best estimate are recorded in the Net Surplus (Statement of Comprehensive Income). (j) Development Expenditure Development costs are deferred where expenditure is carried out on AWHI's farming property over and above normal maintenance

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 and future benefits are expected to exceed those costs. Deferred development costs are amortised over future periods in relation to expected future revenue in each period. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable, and any amount so identified is written off. Deferred development expenditure is reflected within property, plant and equipment. (k) Goods and Services Taxation (GST) All amounts are stated exclusive of goods and services tax (GST) except for accounts payable and accounts receivable which are stated inclusive of GST. (l) Investments in Associates and Joint Ventures Associates are those entities over which AWHI is able to exert significant influence but which are not subsidiaries. A joint venture is an arrangement that AWHI controls jointly with one or more other investors and over which AWHI has rights to a share of the arrangement's net assets rather than direct rights to underlying assets and obligations for underlying liabilities. The Incorporation's investment in associates and joint ventures are accounted for using the equity method of accounting in the financial statements. Under the equity method, investments in associates and joint ventures are carried in the Balance Sheet at cost plus post-acquisition changes in the share of net assets of the associate and joint ventures. The carrying amount of the investment in associates and joint ventures is increased or decreased to recognise AWHI's share of the net

surplus and other comprehensive income of the associate and joint venture, adjusted where necessary to ensure consistency with AWHI's accounting policies. (m) Non-current assets held for sale Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is met when the asset (or disposal group) is available for immediate sale in present condition and the sale is highly probable. Management is committed to the sale which is expected to be completed within one year from the date of classification. Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. (n) Biological Assets Livestock are valued at their fair market value. Changes in the value of livestock are recognised in the Statement of Comprehensive Income. Value changes that form part of AWHI livestock management policies including animal growth and changes in livestock numbers are recognised in the Statement of Comprehensive Income within Revenue. Changes in value due to general livestock price movements are beyond AWHI's control. These value changes are recognised in the Statement of Comprehensive Income as gain/loss due to price changes on livestock. (o) Dividends Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.

(p) Employee BeneďŹ t The provision for employee entitlements is recognised as a liability in the Balance Sheet. These benefits include salaries, wages and annual leave. (q) Stock feed and Inventory Stock feed on hand and other Inventories are stated at the lower of cost and net realisable value. (r) Government grants Government grants (relating to assets) are deducted in arriving at the carrying amount of the asset. (s) Changes in Accounting Policies and Disclosures All accounting policies are consistent with the prior year. 5. CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with NZ IFRS RDR requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the incorporation's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant are disclosed below. Valuation of Livestock AWHI values livestock using market values provided by PGG Wrightson Ltd. These market values reflect livestock of similar age, breed and genetic merit throughout New Zealand. Depreciation Rates Assessments are made of appropriate depreciation rates to be applied to property, plant and equipment based on useful lives and residual values of the assets.

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 6. REVENUE 6a. Livestock Revenue

2018 $

2017 $

10,739,746

8,859,937

Sales Sheep Cattle

6,282,368

5,324,112

17,022,114

14,184,049

Sheep

(854,589)

(207,779)

Cattle

(1,686,526)

(631,412)

Total Sales Purchases

Horses Total Purchases Increase / (Decrease) in value due to change of numbers Total Livestock Revenue

(3,913)

(3,000)

(2,545,028)

(842,191)

1,204,915

(185,822)

15,682,000

13,156,036

2018 $

2017 $

2,112,420

2,716,428

6b. Apiary Revenue Sales Honey sales Other apiary sales

624,000

(472,679)

2,263,741

2,716,428

Purchases Total Apiary Revenue

7. GAINS / (LOSSES) FROM SALE OF EMISSION TRADING UNITS 2018 $

2017 $

Gain / (loss) on disposal of emission trading units

199,100

(36,000)

Total Gains and (Losses)

199,100

(36,000)

2018 $

2017 $

55,255

49,953

336

55,328

50,289

8. FINANCE INCOME

Dividends received Interest income Total Finance Income

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 9. DEPRECIATION & LOSS ON SALE 2018 $

2017 $

1,929,939

1,953,754

22,874

36,530

1,952,813

1,990,284

2018 $

2017 $

19,645

64,215

Accountancy, legal and consultancy

408,534

365,488

Administration expenses

547,248

463,312

Project expenses

186,070

115,678

65,930

1,161,497

1,074,623

2018 $

2017 $

(290,767)

(444,513)

Property revaluations and other comprehensive income movements

2,443,526

Total increase / (decrease) in Equity Accounted Investments

2,152,759

(444,513)

Depreciation Loss on sale of property, plant and equipment Total Depreciation & Loss on Sale

10. OTHER OPERATING EXPENSES

Audit Fees

Other operating expenses Total Operating Expenses

11. EQUITY ACCOUNTED INVESTMENTS

Share of surplus / (deficit) after tax

ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 12. INCOME TAX 12a. Income tax recognised in profi t & loss

2018 $

2017 $

Deferred tax income relating to origination & reversal of temporary differences

(129,129)

Total income tax recognised in the current year

(129,129)

Net Surplus / (deficit) before income tax

998,250

4,867,692

Tax at the New Zealand tax rate applicable to Māori Authorities (17.5%)

174,694

851,846

(477,257)

(932,176)

The income tax expense for the year reconciles to the accounting profi t as follows:

In calculating taxable income the following adjustments were made: Temporary diﬀ erences - livestock - depreciation - other temporary differences

176,728

38,943

69,036

(12,473)

208,863

Permanent diﬀ erences - effect of carbon credit sales - other permanent differences

(2,808)

(60,855)

Increase (decrease) in tax losses to carry forward

(149,256)

114,715

Adjustments recognised in current year in regard to current & deferred tax of prior years Income tax credit recognised in profi t & loss

(129,129)

2018 $

2017 $

Deferred tax

(2,691,199)

Total income tax recognised in other comprehensive income

(2,691,199)

2018 $

Opening balance

Movement in profit & loss, other comp income or equity

Closing balance

Livestock

(490,888)

Property plant & equipment

(2,503,411)

Provisions

67,718

Unused tax losses

1,705,591

Other

(1,341,081)

Total deferred tax liability

(2,562,071)

12b. Income tax recognised in other comprehensive income

12c. Deferred tax liabilities and assets Deferred tax assets & (liabilities) in relation to:

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 13. STOCK ON HAND 2018 $

2017 $

Raw Materials Feed

381,700

300,450

Hive making materials

30,000

279,936

Total Raw Materials

411,700

580,386

Honey

173,880

315,341

Wool

46,698

155,091

Merchandise

Total Merchandise

220,578

470,432

Total Stock on hand

632,278

1,050,818

2018 $

2017 $

14,297,837

12,846,725

14. BIOLOGICAL ASSETS

Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Biological transformations

854,589

207,779

(10,739,746)

(8,859,937)

10,060,144

7,767,690

Changes in fair value

1,739,183

2,335,580

Total sheep on hand

16,212,006

14,297,837

Balance at the beginning of the year

17,397,993

14,106,014

Increase due to purchases Decrease due to sales

1,686,525 (6,282,366)

631,412 (5,324,112)

Biological transformations

5,533,030

4,948,230

Cattle (Dairy & Beef)

Changes in fair value

(1,793,822)

3,036,449

Total cattle on hand

16,541,359

17,397,993

7,213

7,212

560,765

277,366

33,321,342

31,980,408

Horses on hand Bees on Hand Total Livestock

The livestock consists of mixed age sheep and cows which are held for dairy and dry stock farming. The units on hand were counted by management and independently by PGG Wrightson ('PGG') as at 30 June of 2018 and 2017. A valuation was undertaken by S Luoni (employed by PGG) who determined the fair value of the sheep and cattle. The valuation is based on reference to market evidence of current prices less point of sale costs. PGG is an independent registered valuer not related to the incorporation. The valuers hold recognised and relevant professional qualifications and have recent experience in the category of biological asset they have valued.

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 14. BIOLOGICAL ASSETS (CONTINUED) 2018 Units

2017 Units

MA Ewes

35,131

34,518

2-Tooth Ewes

17,447

20,389

Ewe Hoggets

18,893

19,590

Mixed Lambs

21,511

25,541

985

958

Quantity of Sheep on Hand

Breeding Rams MA Wethers

106

94,073

101,042

MA Cows

2,937

2,904

R4 Heifers

730

841

R3 Heifers

975

967

R2 Heifers

1,935

1,876

Heifer Calves

1,851

2,019

155

181

Quantity of Beef and Dairy Cattle on Hand

Breeding Bulls R3 Bulls

R3 Steers

921

624

R2 Steers

1,865

1,848

Steer Calves

1,733

1,895

13,116

13,155

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 15. INVESTMENTS IN ASSOCIATES & JOINT VENTURES 2018 $

2017 $

AWHI has the following investments in associates & joint ventures: Ownership & Voting

Basis

50%

Valuation

1,620,379

1,635,473

Papahau Forestry Partnership Te Hou Limited Partnership

33.33%

Cost

8,741,723

6,284,224

Te Hou GP Limited

33.33%

Cost

10,362,102

7,919,697

Te Hou Limited Partnership is based on audited financial statements. Papahau forestry partnership accounts are unaudited. The AWHI share of Papahau is market valued at $1.8m by Stuart Orme (registered forestry consultant) of Woodnet (2005) Ltd. To realise this investment may require the repair (or replacement) of a bridge to access the block. As yet this is unquantified. Management therefore believe it is conservative not to increase the book value of Papahau to market valuation at this time. 2018 $

2017 $

1,635,473

1,645,136

(15,094)

(26,455)

16,792

1,620,379

1,635,473

6,284,224

6,320,494

Note 7

(258,737)

(418,058)

272,710

381,788

Note 7

2,443,526

8,741,723

6,284,224

Papahau Forestry Partnership Balance at the beginning of the year Share of surplus / (deficit)

Note 7

Capital contributions Balance at the end of the year Te Hou Limited Partnership Balance at the beginning of the year Share of surplus / (deficit) Development capital contributions Revaluations Balance at the end of the year

1,635,473

Classifi ed as non current assets

10,362,102

6,284,884

Total Investments in Associates & Joint Ventures

10,362,102

7,919,697

Classifi ed as held for sale

In 2017 the Papahau investment was classified as an investment held for sale.

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 16. PROPERTY, PLANT & EQUIPMENT

As at 30 June 2018

Class

OPENING Acc Dep

Cost

Freehold Land

As at 30 June 2017 Bk Value

Bk Value

87,119,700

7,871,400

Leasehold Land Improvements

4,934,359

817,991

4,116,368

4,934,359

773,031

4,161,328

15,324,065

2,049,567

13,274,499

14,151,192

1,976,344

12,174,848

Plant & Machinery

2,247,312

1,314,501

932,811

1,971,896

1,184,890

787,006

Motor Vehicles

3,244,294

1,589,366

1,654,928

2,600,182

1,207,007

1,393,175

Buildings & Bridges

Furniture & Fittings

827,669

538,428

289,241

750,993

487,586

263,407

21,168,979

16,459,083

4,709,899

20,143,531

15,186,323

4,957,211

142,737,778

22,768,936

119,968,846

139,543,253

20,815,181

118,728,075

79,011

142,737,778

22,768,936

119,968,846

139,622,264

20,815,181

118,807,086

Development Uncompleted Capital Works Total Property, Plant & Equipment

As at 30 June 2018 Class

Additions

Disposals

As at 30 June 2017

Revaluations

Freehold Land

18,110,300

Leasehold Land

3,619,000

Improvements

Depn & Amort

Additions

Disposals

Revaluations

Depn & Amort

420,397

41,950

44,960

Buildings & Bridges

372,127

878,820

82,098

1,172,873

73,223

Plant & Machinery

510,820

5,125

141,756

352,856

77,440

129,611

Motor Vehicles

964,035

202,832

447,877

875,857

231,745

382,359

9,811

48,597

76,676

50,842

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

1,118,851

1,167,661

1,025,448

1,272,760

2,975,644

207,957

23,028,517

1,929,939

3,503,710

309,185

1,953,754

24,510

79,011

3,000,154

207,957

23,028,517

1,929,939

3,503,710

388,196

1,953,754

As at 30 June 2018 Class

Freehold Land Leasehold Land Improvements Buildings & Bridges

Cost

105,230,000

CLOSING Acc Dep

As at 30 June 2017 Bk Value

Cost

87,119,700

CLOSING Acc Dep

Bk Value

105,230,000

87,119,700

11,490,400

7,871,400

5,354,756

859,941

4,494,815

4,934,359

817,991

4,116,368

16,575,012

2,131,665

14,443,348

15,324,065

2,049,567

13,274,499

Plant & Machinery

2,739,012

1,442,262

1,296,750

2,247,312

1,314,501

932,811

Motor Vehicles

3,796,952

1,828,699

1,968,254

3,244,294

1,589,366

1,654,928

837,480

587,025

250,455

827,669

538,428

289,241

Furniture & Fittings Development Uncompleted Capital Works Total Property, Plant & Equipment

OPENING Acc Dep

Cost

22,287,830

17,626,744

4,661,089

21,168,979

16,459,083

4,709,899

168,311,442

24,476,336

143,835,111

142,737,778

22,768,936

119,968,846

24,510

168,335,952

24,476,336

143,859,621

142,737,778

22,768,936

119,968,846

ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 16. PROPERTY, PLANT & EQUIPMENT (CONTINUED) 16a. Land was revalued to latest general revaluation performed by Quotable Value Limited as at 1 July 2017 (Ruapehu District Council) and 1 September 2016 (Whanganui District Council). The valuation by Quotable Value ('ratings valuation') is considered a departure from accounting standard NZIAS 16 primarily because ratings valuations are general rather than specific appraisals. 16b. Leasehold land was classified as Investment property in the 2017 financial statements. 16c. Government grants under the Ngā Whenua Rāhui scheme have been deducted in arriving at capitalised fencing classed as development.

2018 Number of Shares

2017 Number of Shares

2018 $

2017 $

Ravensdown

500,000

Fonterra Co-operative Group

189,764

174,114

1,032,316

1,044,864

8,386

7,304

1,540,702

1,552,168

2018 $

2017 $

17. SHARE INVESTMENTS Available for Sale Investments

Other share investments Total Share Investments

18. INTANGIBLES (EMISSION TRADING UNITS) All units are NZUs

2018 Number of Units

2017 Number of Units

306,512

4,032,529

5,440,588

Additions

167,849

Disposals

(70,000)

(1,193,500)

(1,242,500)

4,149,115

(165,559)

334,361

236,512

6,988,144

4,032,529

2018 $

2017 $

9,993,918

Non-Current

21,000,000

30,731,208

Total Borrowings

30,993,918

30,731,208

140,319,652

117,091,866

33,321,342

31,980,408

173,640,994

149,072,274

Balance at beginning of the year

Revaluations Balance at end of the year

236,512

19. BORROWINGS Secured Current

Secured liabilities and assets pledged as security The BNZ borrowings are secured by a registered first mortgage over specific land and a charge over all livestock owned by AWHI. Alienation of such Māori freehold land is subject to Te Ture Whenua Māori Act 1993 requirements. The carrying value of assets pledged as security for borrowings are: Certificate WN7D/391 Livestock Total pledged assets

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

20. PROGRAMMED PROPERTY MAINTENANCE 2018 $

2017 $

Current liabilities - included in Trade and other payables

124,344

Non current liabilities - Programmed property maintenance

149,157

273,501

The incorporation entered into 7 agreements with Programmed Property Services Ltd (the contractor) for an agreed programme of work covering a 10 year period. The programme provides for exterior paint of farm buildings and farm houses, with regular maintenance in subsequent years. The agreements have total annual payments of $124,344 (gst excl.). The liability is a best estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheet date. The liability has not been adjusted for inflation and the effect of the time value of money.

21. LIMITED PARTNERSHIP DEFERRED CAPITAL CONTRIBUTION

Capital contribution liability

2018 $

2017 $

2,066,666

On 26 May 2014 AWHI entered into a Limited Partnership which operates an arable, dairy and dry stock operation with forestry. The agreement includes the requirement to contribute capital to the limited partnership.This is due in 2019.

22. UNCLAIMED DIVIDENDS

Balance at beginning of the year Dividend declared

2018 Cents per share

2017 Cents per share

2018 $

2017 $

2,119,923

1,972,675

691,089

Dividends paid

(657,807)

(543,841)

Total Unclaimed Dividends

2,153,205

2,119,923

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

23. FINANCIAL INSTRUMENTS

Financial Assets 2018 Cash and cash equivalents Trade and other receivables (GST excl)

Amortised Cost $

Financial Liabilities 2018 Trade and other payables (GST excl) Te Hou LP deferred contribution

Fair Value through Other Comp Inc $

Total $

194,475

2,573,559

1,540,702

2,768,034

1,540,702

4,308,736

Investment in shares Total Financial Assets

Cost

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

Total $

1,312,034

2,066,666

Borrowings

30,993,918

Total Financial Liabilities

34,372,618

Financial Assets 2017 Cash and cash equivalents Trade and other receivables (GST excl)

Amortised Cost $

Financial Liabilities 2017 Trade and other payables (GST excl)

Fair Value through Other Comp Inc $

Total $

7,119

2,517,006

1,552,168

2,524,125

1,552,168

4,076,293

Investment in shares Total Financial Assets

Cost

Amortised Cost $

Cost

Fair Value through Other Comp Inc $

Total $

984,463

2,066,666

Borrowings

30,731,208

Total Financial Liabilities

33,782,337

Te Hou LP deferred contribution

ĀTIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 24. MĀORI AUTHORITY CREDIT ACCOUNT 2018 $

a) Māori Authority Credit Account balance at the end of the year b) Balance of retained earnings earned prior to 2004.

2017 $

364,889

365,097

14,221,140

14,912,229

Dividends paid from retained earnings prior to 2004 have no Māori Authority Credits attached.

25. RELATED PARTIES Year end receivable or (payable)

Payments received or (paid) during the year

2018 $ GST excl

2017 $ GST excl

2018 $ GST excl

2017 $ GST excl

(20,000)

(100,000)

(360,000)

(350,000)

(84,384)

5,856

(84,384)

(2,609)

(2,630)

(2,252)

(7,418)

(1,411)

2018 $

2017 $

1,604,857

1,418,085

a) Te Āti Hau Trust Donations to the Trust AWHI is the settlor of Te Āti Hau Trust and appoints the trustees (3 from the AWHI Committee and 2 Independants). The results of the Trust have not been consolidated as the effect would be immaterial. b) Kaahu Estate Ltd (W Murphy-Peehi (CoM) is a Shareholder and director)

AWHI sold consumables and labor to Kaahu Estate Ltd in 2018. In 2017 AWHI managed hives on behalf of Kaahu Estate Ltd on their land and the income resulting from the produce of those hives was shared. c) Ngā Tangata Tiaki ( K Ponga & R Tinirau (CoM) are Trustees) AWHI paid sponsorship for an Iwi Chairs forum. d) Ngāti Rangi Trust (S Amner & K Ponga (CoM) are Trustees) AWHI made payment to Ngāti Rangi Trust during the year for room hire. e) Ruapehu Recruitment (S Amner (CoM) is the Director) AWHI made payments to Ruapehu Recruitment Ltd for contracted labour.

Key Management Personnel Compensation

Key management of the Incorporation are the members of the Committee of Management, the Chief Executive Officer, Finance Manager, Business Manager, People & Safety Manager and the Station Managers. Total Key Management Personnel remuneration

Ä&#x20AC;TIHAU-WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 26. CONTINGENT LIABILITIES a) Arising from the Emissions Trading Scheme

2018 $

2017 $

11,343,203

8,060,166

272,710

11,343,203

8,332,876

2018 $

2017 $

98,935

49,387

There is a contingent liability relating to the Carbon Account Record which represents the total number of units which are required to be surrendered when or if land is withdrawn from the the ETS. Management have no plans to change land use at this time which would trigger such a liability. The forest on affected land is insured against forest fire. b) Arising from interest in a joint venture Te Hou Limited Partnership. Total

27. SUBSEQUENT EVENTS There have been no subsequent events after year end (2017: Nil).

28. OPERATING LEASE ARRANGEMENTS Operating leases relate to leases of offices and land. Operating lease expense (included in Farm working and Other operating expenses)

Non-cancellable operating lease commitments Not later than one year Later than one year and less than five years

80,860

70,087

123,183

160,380

Later than five years

29. COMMITMENTS FOR EXPENDITURE Commitments for the acquisition of property, plant and equipment

30. CAPITAL Number of shares (fully paid)

204,042

230,467

2018 $

2017 $

198,446

611,808

2018 Number

2017 Number

1,256,529

These shares have no par value and share equally in dividends paid.

31. RESERVES Retained Earnings Retained Earnings comprise the Incorporations accumulated net profits less dividends paid. Capital Reserves Capital Reserves represent realised capital profits predominantly arising from Crown grants. PPE revaluation reserve The property reserve arises on the revaluation of land and buildings. When revalued land and buildings are sold, the proportion of the property revaluation reserve that relates to the asset is transferred to capital reserves. ETU reserve The Emissions trading units reserve represents revaluations of emission trading units. When revalued ETUs are sold, the proportion of the reserve that relate to those units are transferred to retained earnings. AFS share reserve The Available For Sale share reserve represents unrealised revaluations of share investments.

SILKS AUDIT

PO Box 7144 Whanganui 4541 New Zealand

Chartered Accountants Limited

T: (06) 345 8539 F: (06) 345 2212 E: ctown@silks.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ĀTIHAU-WHANGANUI INCORPORATION

Opinion We have audited the financial statements of Ātihau Whanganui Incorporation (the Incorporation) on pages 38 to 57, which comprise the statement of financial position as at 30 June 2018, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, except for the possible effects of the matters described under the Basis for Opinion section, the accompanying financial statements present fairly, in all material respects, the financial position of the Incorporation as at 30 June 2018, and its financial performance and its cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime (NZ IFRS RDR). Basis for Qualifi ed Opinion on Financial Position As disclosed in the accounting policy on page 42 to the financial statements, the land and buildings are reported at the latest government value “(“Quotable Value”). This is a departure from the New Zealand Equivalents to International Financial Reporting Standards – NZ IAS 16 Accounting for Property, Plant & Equipment, which, when the revaluation model is chosen for property, plant and equipment, require such assets to be stated at fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses. Consequently, we were unable to determine whether any adjustment to these amounts was necessary, which affects the gross carrying amount of land and buildings, their accumulated depreciation, depreciation expense, revaluation increases/ decreases and shareholders' equity. We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Incorporation in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Incorporation. Emphasis of Matter As disclosed in note 15 to the financial statements the incorporation undertook a valuation of the Papahua Forestry. The valuation excluded the cost of the bridge construction which creates a material uncertainty as to the forest value. Due to this uncertainty no adjustment has been made for the carrying value of the Papahua Forestry partnership investment. We have not modified our opinion in respect of this matter.

Principals: Cameron Town, Talia Anderson-Town.

Whanganui

Taranaki

Manawatu

Central Plateau

Auckland

ĀTIHAU-WHANGANUI Ā ĀTIHAU -WHANGANUI INCORPORATION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

SILKS AUDIT

PO Box 7144 Whanganui 4541 New Zealand

Chartered Accountants Limited

T: (06) 345 8539 F: (06) 345 2212 E: ctown@silks.co.nz www.silksaudit.co.nz

Trustees Responsibilities for the Financial Statements The Trustees are responsible on behalf of the Incorporation for the preparation and fair presentation of the financial statements in accordance with NZ IFRS RDR, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible on behalf of the Incorporation for assessing the Incorporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Incorporation or to cease operations, or have no realistic alternative but to do so. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A detailed description of the auditors’ responsibilities including those related to assessment of risk of material misstatement, evaluation of appropriateness of going concern assumptions and determining key audit matters are available on the external reporting board website: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ Other Matter The financial statements of Ātihau Whanganui Incorporation for the year ended 30 June 2017 were audited by another auditor who expressed a modified opinion for the use of Rateable Value to value the land and buildings on those statements on 20 October 2017. Report on other Legal and Regulatory requirements The Share Register and Index of Shareholders required by Section 263 of the Te Ture Whenua Maori Act 1993, has been compiled and correctly kept by the Incorporation. Restriction on Distribution or Use This report is made solely to the Shareholders, as required by section 277 of the Te Ture Whenua Maori Act. Our audit has been undertaken so that we might state to the Incorporation’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Incorporation Shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.

Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 28 September 2018

Principals: Cameron Town, Talia Anderson-Town.

Whanganui

Taranaki

Manawatu

Central Plateau

Auckland

Te Ä&#x20AC;ti Hau Trust FINANCIAL STATEMENTS 2018

CONTENTS 63

Entity Information

Statement of Service Income

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Notes to and forming part of the Financial Statements

68 1 Statements of Accounting Policies 68 2 Donantions, Fundraising and Other Similar Renevue 69 3 Interest, Dividends and Other Investment Revenue 69 4 Volunteer and Employee Related Costs 69 5 Costs related to Providing Goods or Services 69 6 Grants and Donations 70 7 Other Expenses 70 8 Property, Plant & Equipment 70 9 Trust Capital 71 10 Accumulated Funds 71 11 Related Party Information 71 12 Tribal Purposes 71 13 Commitments 71 14 Contingent Liabilities and Guarantees 71 15 Events Occurring After Balance Date 72

Auditors' Report

Te Āti Hau Trust ENTITY INFORMATION As at 30 June 2018 Te Āti Hau Trust is a Discretionary Trust, established by a trust deed dated 23 April 2009 and registered under the Charities Act 2005.

Entity's Purpose or Mission

The support of the educational and cultural aims of the Māori people in the district. Operations are governed by its Trust Deed that aligns to and supports the requirements of the Charities Act.

Address

c/- Balance Chartered Accountants 16 Bell Street WHANGANUI 4500

Entity Structure

Te Āti Hau Trust is a Charitable Trust incorporated under the Charitable Trusts Act 1957 and is also registered under the Charities Act 2005.

Trustees

Appointed by Ātihau-Whanganui Incorporation Tiwha Puketapu (Chairperson - ceased 31/12/17) Keria Ponga (Chairperson from 1/01/18) Shar Amner Whatarangi Murphy-Peehi (from 1/01/18) Independent Trustees Anton McKay (ceased 27/10/17) Jenny Tamakehu Jessica Smith (from 27/10/17)

Beneficiary

Ātihau Shareholders & Stakeholders

Main Sources of Cash and Resources

Tribal purposes grant from Ātihau-Whanganui Incorporation approved annually at the Ātihau Annual General Meeting.

GST

Not Registered

Accountants

Balance Chartered Accountants Limited Chartered Accountants 16 Bell Street Whanganui

Auditor

Silks Audit Chartered Accountants Whanganui

Bankers

Bank of New Zealand Whanganui

Solicitors

Horsley Christie Whanganui

IRD Number

102-612-817

Registered Charity Number

CC41172

The Trustees are pleased to present the approved Performance Report including the historical Performance Report of Te Āti Hau Trust for the year ended 30 June 2018. For and on behalf of the Trustees:

Keria Ponga Trust Chairperson 28 September 2018

Shar Amner Trustee 28 September 2018

Te Āti Hau Trust STATEMENT OF SERVICE PERFORMANCE For the Year Ended 30 June 2018 Description of Trust's Outcomes Te Āti Hau Trust was estabilished in 2009 as a charitable arm of Ātihau-Whanganui Incorporation to apply funding for charitable, cultural, philanthropic, educational, recreational and other purposes, being purposes beneficial principally to the shareholders and stakeholders. Those grants may include Māori cultural development and support, educational and vocational development and support, social development and support, marae development and support, health and welfare development and support, and the fostering of strategic alliances with persons promoting or assisting with any of these objects. The grants are made under the following guiding principles: Mātauranga Education Kotahitanga Unity of Purpose Manaakitanga Nurture and reciprocate Whanaungatanga Collaboration Rangatiratanga Leadership Wairuatanga Spirituality Mana Whenua Responsibility to the land and the people Kaitiakitanga Active stewardship Mana Tupuna Legitimacy Te Reo Language

Grants Made Actual 2018 Number

Actual 2017 Number

Actual 2018 $

Actual 2017 $

Sports Art and Travel

13,930

18,700

Cultural

33,095

19,700

Marae

57,650

25,500

Tangihanga tent

19,800

15,900

Kaumātua Assistance

22,820

12,949

147

111

147,295

92,749

127

217

77,412

137,000

General Grants

Education Grants Tertiary - Undergraduate Full Time Medical

21,800

36,750

Secondary School - Year 10 and 11

103

15,250

25,750

High Performance

2,800

6,000

18,400

42,300

Agriculture

6,000

PHD

6,000

Overseas Grants

3,700

5,400

Music

6,000

238

416

151,362

265,200

Post Graduate

These financial statements are to be read in conjunction with the accompanying Notes.

Te Ä&#x20AC;ti Hau Trust STATEMENT OF FINANCIAL PERFORMANCE For the Year Ended 30 June 2018

Note

Actual 2018 $

Actual 2017 $

Donations, fundraising and other similar revenue

360,000

350,000

Interest, dividends and other investment revenue

Revenue

Total Revenue

360,014

350,028

Less Expenses Volunteer and employee related costs

8,825

10,178

Costs related to providing goods or services

43,214

52,913

Grants and donations

298,187

357,949

Other expenses

4,364

5,114

354,590

426,153

5,424

(76,125)

Total Expenses Surplus (Deficit)

These financial statements are to be read in conjunction with the accompanying Notes.

Te Ä&#x20AC;ti Hau Trust STATEMENT OF FINANCIAL POSITION As at 30 June 2018

Note

2018 $

2017 $

Trust Capital

5,815

391

Total Accumulated Funds

5,815

391

Cash & Bank Balances

52,290

13,550

Debtors and Prepayments

20,000

100,001

Total Current Assets

72,290

113,551

602

987

72,892

114,538

Creditors and Accrued Expenses

67,077

114,147

Total Liabilities

67,077

114,147

5,815

391

Accumulated Funds

Represented by: Current Assets

Non Current Assets Property, Plant & Equipment

Total Assets Current Liabilities

Net Assets

For and on behalf of the Trustees:

Keria Ponga Trust Chairperson 28 September 2018

Shar Amner Trustee 28 September 2018

These financial statements are to be read in conjunction with the accompanying Notes.

Te Ä&#x20AC;ti Hau Trust STATEMENT OF CASH FLOWS For the Year Ended 30 June 2018

Note Cash Flows from Operating Activities

2018 $

2017 $

440,001

290,099

Cash was received from: Donations, fundraising and other similar revenue Interest, dividends and other investments

440,015

290,127

56,018

64,816

345,257

255,317

401,275

320,133

Net Cash Flows from Operating Activities

38,740

(30,006)

Net Decrease in Cash Held

38,740

(30,006)

Cash at the Beginning of the Year

13,550

43,556

Cash at the End of the Year

52,290

13,550

52,290

13,550

Cash was applied to: Payments to suppliers and employees Donations and grants paid

This is represented by: Cash & Bank Balances

These financial statements are to be read in conjunction with the accompanying Notes.

TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2018

1. STATEMENT OF ACCOUNTING POLICIES Statement of Compliance and Basis of Preparation Te Āti Hau Trust is eligible to apply Tier 3 PBE Accounting Requirements : PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit), on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000. The trust has elected to report in accordance with PBE SFR-A (NFP). All transactions in the Performance Report are reported using the accrual basis of accounting. The accounting principles recognised as appropriate for the measurement and reporting of the Statement of Financial Performance and Statement of Financial Position on a historical cost basis are followed by the trust, unless otherwise stated in the Specific Accounting Policies. The information is presented in New Zealand dollars. All values are rounded to the nearest $. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of the Statement of Financial Performance and Statement of Financial Position have been applied: a) Revenue Recognition Grant income is received annually as a result of an agreed tribal purposes grant. Any outstanding grant income not utilised by 30 June is not returnable. Interest received is recognised as interest accrued, gross of refundable tax credits received. b) Expenses Expenses have been classified by their business function. Grant expenses are recognised when approved by the trustees. c) Trade Receivables Trade Receivables are recognised at estimated realisable value. d) Property, Plant & Equipment Property, plant and equipment is recognised at cost less aggregate depreciation. Historical cost includes expenditure directly attributable to the acquisition of assets, and includes the cost of replacements that are eligible for capitalisation when these are incurred.

All other repairs and maintenance are recognised as expenses in the Statement of Financial Performance in the financial period in which they are incurred. Depreciation has been calculated using rates appropriate to spread the cost of the asset less any residual value over its useful life. The following estimated depreciation rates/useful lives have been used: Office Equipment 13 - 50% Gains and losses on disposal of fixed assets are taken into account in determining the net result for the year. e) Income Tax The Trust has charitable status and is exempt from income tax. f) Goods and Services Taxation (GST) The amounts recorded in the performance report are inclusive of GST (if any). The trust is not registered for GST. g) Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those from the previous performance report.

2. DONATIONS, FUNDRAISING AND OTHER SIMILAR REVENUE

2018 $

2017 $

Ātihau-Whanganui Incorporation Tribal Purposes Distributions

360,000

350,000

Total Donations, fundraising and other similar revenue

360,000

350,000

TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2018

3. INTEREST, DIVIDENDS AND OTHER INVESTMENT REVENUE

Interest Received - Gross Total Interest, dividends and other investment revenue

2018 $

2017 $

2018 $

2017 $

4. VOLUNTEER AND EMPLOYEE RELATED COSTS

Trustee Fees

8,825

10,178

Total Volunteer and employee related costs

8,825

10,178

2018 $

2017 $

5. COSTS RELATED TO PROVIDING GOODS OR SERVICES

Administration

41,928

50,772

Bank Fees & Charges

Charities Commission

Committee Expenses Total Costs related to providing goods or services

1,195

2,096

43,214

52,913

2018 $

2017 $

6. GRANTS AND DONATIONS

Tangihanga Koha

19,800

15,900

Sport, Art & Travel

13,930

18,700

Cultural

33,095

19,700

Kaumātua Assistance

22,820

12,949

Marae

57,650

25,500

Tertiary Full Time

77,412

137,000

Secondary Yr 10 & Yr 11

15,250

25,750

High Performance Medical

2,800

6,000

21,800

36,750

PHD

6,000

Overseas

3,700

5,400

Agriculture Post Graduate Music Scholarship

6,000

18,400

42,300

6,000

Grants - Returned/Recovered

(470)

Total Grants and Donations

298,187

357,949

TE Ä&#x20AC;TI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2018 7. OTHER EXPENSES 2018 $

Audit Fees Depreciation Total Other Expenses

2017 $

3,979

4,382

385

732

4,364

5,114

8. PROPERTY, PLANT & EQUIPMENT Property, Plant & Equipment 2018

Office Equipment

Opening Carrying Amount $

Purchases/ Depreciation (Sales or & Disposals) Impairment $ $

Closing Carrying Amount $

GDPro Database Software

479

240

239

Filing Cabinet

297

258

HP Laptop case and configuration

105

Microsoft Office and Remote User Networks

106

987

385

602

Total Property, Plant & Equipment

987

385

602

Property, Plant & Equipment 2017

Opening Carrying Amount $

Purchases/ Depreciation (Sales or & Disposals) Impairment $ $

Closing Carrying Amount $

Office Equipment GDPro Database Software

957

478

479

Filing Cabinet

341

297

HP Laptop case and configuration

210

105

Microsoft Office and Remote User Networks

Total Property, Plant & Equipment

211

105

106

1,719

732

987

1,719

732

987

9. TRUST CAPITAL

2018 $

2017 $

Trust Capital

100

Total Trust Capital

100

TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2018 10. ACCUMULATED FUNDS

Balance at beginning of the year

2018 $

2017 $

291

76,416

Surplus / (deficit) for the year

5,424

(76,125)

Total Accumulated Funds

5,715

291

11. RELATED PARTY INFORMATION Related party matters arise with respect to Ātihau-Whanganui Incorporation ("AWHI") in that under the terms of the Trust Deed three appointed trustees are also members of the AWHI Committee of Management and the Incorporation is the settlor of the trust. Annual grants are received from AWHI, and AWHI previously advanced unclaimed dividends to the trust. During the year there were no services provided to the trust by related parties. (2017: Nil). From time to time Trustees have and disclose interests in, or a relationship with individual applicants and/or grantee organisations and abstain from those decisions.

12. TRIBAL PURPOSES Ātihau-Whanganui Incorporation annually distribute funds to the trust which is used to distribute for charitable purposes. During the year $360,000 was granted.

13. COMMITMENTS The trust has no commitments as at 30 June 2018, (2017 Nil).

14. CONTINGENT LIABILITIES AND GUARANTEES The trust has no contingent liabilities and no guarantees as at 30 June 2018. (2017: Contingent Liabilities Nil. Guarantees Nil.)

15. EVENTS OCCURRING AFTER BALANCE DATE There have been no significant events since balance date.

TE ĀTI HAU TRUST NOTES TO AND FORMING PART OF THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2018

SILKS AUDIT Chartered Accountants Limited

PO Box 7144 Whanganui 4541 New Zealand T: (06) 345 8539 F: (06) 345 2212 E: ctown@silks.co.nz www.silksaudit.co.nz

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF TE ĀTI HAU TRUST

Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Te Ati Hau Charitable Trust (the Trust) on pages 65 to 71, which comprise the statement of financial position as at 30 June 2018, and the statement of financial performance and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Trust as at 30 June 2018, and its financial performance and its cash flows for the year then ended in accordance with Public Benefit Entity Simple Format Reporting Standard – Accrual (Not-For-Profit). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other than in our capacity as auditor we have no relationship with, or interests in, the Trust. Other information The Trustees is responsible on behalf of the Trust for the other information. The other information comprises the Entity information and Statement of service performance but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If based, on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Principals: Cameron Town, Talia Anderson-Town.

Whanganui

Taranaki

Manawatu

Central Plateau

Auckland

SILKS AUDIT

PO Box 7144 Whanganui 4541 New Zealand

Chartered Accountants Limited

T: (06) 345 8539 F: (06) 345 2212 E: ctown@silks.co.nz www.silksaudit.co.nz

Trustees’ Responsibilities for the Financial Statements The Trustees are responsible on behalf of the Trust for the preparation and fair presentation of the financial statements in accordance with Public Benefit Entity Simple Format Reporting Standard – Accrual (Not-For-Profit), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so. Auditors Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of the auditors responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ Other Matter The Performance Report of the Te Ati Hau Charitable Trust for the year ended 30 June 2017 was audited by another Auditor who expressed an unqualified audit opinion on 20 October 2017.

Silks Audit Chartered Accountants Ltd Whanganui, New Zealand Date: 28 September 2018

Principals: Cameron Town, Talia Anderson-Town.

Whanganui

Taranaki

Manawatu

Central Plateau

Auckland

GLOSSARY OF TERMS

Accounts Receivable: Money owed to AWHI from customers at year end, also known as Trade Debtors

Hogget: A young sheep between a lamb and a 2 tooth, from approx. 10 to 16 months of age

Accounts Payable: Money owed by AWHI to suppliers of goods or services at year end, also known as Trade Creditors

Interest: What AWHI needs to pay for the money it borrows from the bank

Accrued Income: Income earned by AWHI where cash has yet to be received

Meat Processing: Process of taking live animals, humanely slaughtering them and then breaking down into saleable beef or sheep meat

Accrued Expenses: Expenses incurred by AWHI where cash has yet to be paid Asset: Anything owned by AWHI to use in generating income

Milk Solids (MS): The valued solid components in milk – at present, milk-fat and protein, expressed as kg MS

Balance Date: Term used to describe the end of AWHI’s financial year - 30th June

Net Farm Income: Income earned from farm activities less the direct costs of these activities

Brassica: The plant family which includes turnips, swedes, rape, kale, cauliflower, cabbages, etc.

Net Operating Surplus / (Deficit): Difference between revenue and the costs incurred to earn this revenue.

Capital Stock: The breeding stock on AWHI farms that produce revenue or trading stock to generate income

Prime (livestock): Term used to describe animals that are ready for slaughter

Carbon Credits on Hand: Number of NZ units (NZU) owned at balance date under the NZ Emissions Trading Scheme valued at market value. An NZU = 1 tonne of carbon dioxide equivalent of emissions or removals. Carrying Capacity: Number of livestock a property can graze annually without importation of feed or the deterioration of the property Change in Livestock Numbers: Difference in livestock numbers at end of year compared to the beginning of the year at market values Cull: To remove animals from a breeding population generally because of physical or performance deficiencies Current Asset: An asset of AWHI that is expected to be converted into cash within the next year Current Liability: A liability of AWHI which is generally due to be settled within 12 months of balance date Depreciation: The apportionment of cost of an asset over the useful life of the asset. An accounting method used to reflect the aging and use of an asset Direct Farm Expenses: Expenses incurred by AWHI’s farming operations in generating farm income Drought: A long period of time during which there is very little or no rain Dry Matter: The plant material left after all water has been removed – using DM% comparisons can be made between different feeds such as pasture, swedes, grains, hay, etc. Employee Entitlements: Holiday pay and other leave entitlements owing to employees at balance date Equity: A measure of the shareholders’ total interest in AWHI – the amount by which the value of assets exceed the value of liabilities Feedlot: A third party location where AWHI’s cattle are fed a high protein diet over the winter months Fertility (of soil): Status of soil in terms of the amount of plant-available nutrients it can supply Finishing (livestock): The process of growing animals to a point they are considered ready for slaughter Fixed Asset: Assets held for use by AWHI rather than for sale or conversion into cash Genetics (livestock): Branch of biology concerned with trait inheritance from parents to offspring – important to use the right animals (male or female) to establish and continue AWHI’s breeding programme Greenfeed: Annual crops, usually cereals, grasses or brassicas, grown for animal feed Gross Revenue: What is earned by AWHI from selling goods and services Hectare (ha): A standard metric measurement of land, 1 ha = 10,000m2 = 2.471 acres Heifer: Term used to describe a young female cattle beast

Liability: General term for what AWHI owes

Provision for Dividend: Allowance for a Dividend distribution to AWHI shareholders Revaluation of Shares: Difference in the market value of shares that AWHI holds in other companies at this balance date compared to the previous year. Revaluation of Livestock: The livestock price movement being the livestock value at year end versus opening values less the amount attributed to change in livestock numbers Soil Moisture Deficit: Deficit between the actual amount of water in a soil versus its water holding capacity Statement of Cash-flow: Shows the cash movements for the year in Operating, Investing and Financing categories Statement of Financial Performance: Shows how well AWHI has performed in its trading activities. Statement of Movements in Equity: Reports the change in AWHI’s ownership interest in the year Statement of Financial Position: "A snapshot" in time that reflects where the money has come from (Equity + Liabilities) and how the money has been used (Assets) Stock on hand: Inventory of goods held for resale or for AWHI’s use, including livestock Stock Units: Livestock in NZ are commonly given a “stock unit” (su) value or measure. The basic unit (1 su) is one breeding ewe that weighs 55kgs; bears 1 lamb; and consumes approx. 550 kilograms of dry matter each year. A beef breeding cow is commonly given a value of 6 su. Stock units have a number of uses e.g. to determine how much feed is required; the stocking rate of a farm, etc. Store (livestock): A term used to describe animals destined for “finishing” that are sold off country, which does not have the potential to finish them, to specialist “finishing” operations on easier more productive country Supplements: Additional animal feed often in the form of conserved hay, silage fodder crops (greenfeeds and brassica crops) or concentrates such as grains or meals Term Liabilities: A liability of AWHI which is generally due to be settled more than 12 months after balance date Unclaimed Dividends Due – Te Āti Hau Trust: Funds relating to unclaimed dividends from the previous year which are advanced to Te Āti Hau Trust to invest Weaner: A young animal that has been weaned from its mother’s milk, capable of living completely on pasture Yield (carcass): Proportion of useable (saleable) meat from a carcass expressed as a percentage of total carcass weight Yield (fibre): Proportion of useable fibre present in a quantity of greasy wool expressed as a percentage

NOTES

H U-W ANGA

AT I

I NU

RPORATI

Toi tu te whenua

16 Bell Street, Whanganui 4500, New Zealand Postal Address PO Box 4035 Whanganui 4540 New Zealand