Parininihi Ki Waitotara Annual Report 2017 by iStudios Multimedia Ltd

20 17 He Tangata He Whenua He Oranga Sustaining and Growing our People through Prosperity

OUR STORY

At its heart our story is one of perseverance in the face of adversity. It is the story of people working together to create opportunity and a brighter future for their children. It is about an intergenerational business that is seeking to continue the journey to: • Provide opportunity to our people • Exercise katiakitanga over our ancestral land • Protect and grow our assets for current and future generations PKW has evolved to be an innovative and positive force in the Maori economy of Taranaki. Our commitment to delivering sustainable returns to our people ensures we continue to be a successful and sustainable business. This Annual Report is a celebration of our journey to date as we look to illustrate to our shareholders the stories behind the numbers.

Cover: Daniel Brooks (Ngāruahine, Ngāti Ruanui, Ngāti Mutunga and Ngāti Tama) is the 2017 Ballance-PKW Scholarship recipient and is employed as a Plumber by Evergreen Plumbing, Gasfitting and Drainlaying Ltd who are suppliers to our farming business.

OUR KAUPAPA

The ambition of our kaumātua to build Parininihi ki Waitotara into an organisation dedicated to fulfilling the aspirations of our ancestors is being realised. We recognise we have a duty to manage our lands and assets not just for our generation but for those that follow us. OUR VISION He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity. OUR MISSION A successfully diversified and sustainable Taranaki Māori-owned and operated business providing meaningful opportunity to its people. OUR VALUES REFLECT • Manaakitanga Care for our present and future generations • Kaitiakitanga Commitment to leadership • Whakapono Adherence to our tikanga and belief in our future • Whanaungatanga / Kotahitanga Belief in collective action with trusted relationships

CONTENTS PARININIHI KI WAITOTARA INCORPORATION Te Pūrongo a te Heamana Te Pūrongo te Tumu Whakaere Chair’s report

TR9 TR13 9

Chief Executive Officer's report

Performance at a glance

Committee of Management

Executive Leadership Team

Our Diverse Land Portfolio

PARININIHI KI WAITOTARA INCORPORATION ANNUAL FINANCIAL STATEMENTS Contents

Auditor's report

Committee’s annual report

Statement of comprehensive income

Balance sheet

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

PARININIHI KI WAITOTARA TRUST Te Pūrongo a te Heamana Chair’s report

TR65 65

He whakatō, he kākano, he puāwai. Seeding potential 68 Ngā Kaiwhiwhi Tautoko. Scholarships and grants

PARININIHI KI WAITOTARA TRUST ANNUAL FINANCIAL STATEMENTS Contents

Auditor's report

Entity information

Statement of service performance

Statement of financial performance 88 Statement of financial position 89 Statement of cash flows

Statement of accounting policies 91 Notes to the performance report

TR8

“Kua puta tātou i tēnei wā, ā, kua pakari ake ā-pūtea, ā-rautaki hoki. Kua whakaūngia ngā whāinga mō ngā tau e tū mai ana, kua whakahoungia ā mātou mea tuatahi ā-rautaki kia aro atu ā tātou mahi ki te whakakaha i ā tātou rautaki matua.”

HE TANGATAHE PARININIHI TANGATA KI PARININIHI WAITOTARA KI WAITOTARA INCORPORATION INCORPORATION - TE PŪRONGO - CHAIR'S A TE HEAMANA REPORT

TR9

PARININIHI KI WAITOTARA INCORPORATION

TE PŪRONGO A TE HEAMANA HINERANGI RAUMATI-TU'UA

$36.5

MILLION NET PROFIT AFTER TAX

Poua ki runga Poua ki raro

Poua iho ra ki te maunga titohea E kore e pau te ika unahi nui Tihei mauri ora

Mā te Kōmiti Whakahaere ka pārekareka au ki te whakatakoto i te pūrongo mahi ā-tau a te Kōporeihana o Parininihi ki Waitotara (arā, o PKW), mō te 1 o Hōngongoi 2016 ki te 30 o Pipiri 2017 (TP16/17). Kātahi te tau hirahira mō te Kōporeihana puta ai tātou i ngā tau tata nei ina i pēhia ai te moni whiwhi e te hekenga o te ahu miraka. Kua puta tātou i tēnei wā, ā, ka kaha ake tātou, ā-pūtea, ā-rautaki hoki. Kua whakaūngia ngā whāinga mō ngā tau e tū mai ana, kua whakahoungia ā mātou mea tuatahi ā-rautaki kia aro atu ā tātou mahi ki te whakakaha i ā tātou rautaki matua. Ka pārekareka au te whakamōhio atu kua ekea e tātou ngā taumata ikeike o te mahi whakapai.

NGĀ HUA MONI Kātahi anō te heke haere o te utu ā-ao mō te miraka ka māmā ake, ā, ka āhei te piki ake o te moni whiwhi a te rōpū. Ka tautokona te whakapai i te moni whiwhi mā te whakapai i te whakahaere nama me te whakaiti i te whakangao pūtea moni tōpū puta noa i te rōpū. Ka pārekareka a Parininihi ki Waitotara ki te pūrongo atu ka whakawhiwhia ki te huamoni (arā, kua

tangohia te tāke) ka $36.5m mō te TP16/17 tau pūtea (TP15/16: $3.7m). E rua ngā wāhanga o te hua nei. Ko te wāhanga tuatahi ko te huamoni whakahaere moni ukauka ka $9.3m (TP 15/16: $0.5m moni ngaro) i whakawhiwhia e te whakapikitanga i ngā rīhi whai muri i ngā putanga o te arotake rīhi, i te mahinga pāmu pai ake me te pai tonu o te mahi i ngā whakangaotanga kōura a te Kōporeihana. Ko te wāhanga tuarua ko ngā whiwhinga moni tōpū kore moni ukauka ka $27.2m (TP15/16: $4.2m) ka hangaia nuitia ai i te nui haere a te wāriu tika o ngā putunga whenua (ka $25.2m) me ngā nekehanga tōrunga i ā tātou Hea Fonterra (ka $1.7m). Ka whakatakotoria ētehi anō taipitopito kōrero i roto i te Pūrongo a te Tumu Whakarae. Nā te mahi ā-pūtea o runga ake nei, ka tino nui te tupu o te tauritetanga whāiti kia $240m (TP15/16: $204.3m) hui katoa ka $35.7m (arā, ka 17.5%) te nui haere. Ka tino nui haere te wāriu tika o te putunga whenua (ka $25.2) whai muri i te tukanga wāriu i whakahaerehia ka oti ai te arotake rīhi ia 7 tau. He mea tino pai te eke o te wāriu, ā, ka whakaaturia te 22%

TR10

“Kua puta i te mahi ā-pūtea o runga ake nei te tino nui haere a te tauritetanga whāiti o ngā kaiwhaipānga kia $240m...” <<

hāngai ki te ritenga ahumoni pai •K a whakarerekē i te kohinga whakangaotanga mō ngā tohanga toitū.

Ka roa te Kōmiti e kōkiri ana i ngā rautaki matua i te tau kua hipa. Ka whai māramatanga ki tā tātou pakihi ahuwhenua nā te aro ō-roto ki te Hui katoa ka $68.8m (TP15/16: I te Whiringa ā-nuku 2016, i whakapaitanga ā-pāmu me ngā $67.2m) te nama whare pūtea i te 30 o whakaūngia e te Kōmiti tēnei whakapaitanga pūnaha. Ka puta ngā Pipiri 2017, arā, he wāhi iti te nui haere matakitenga hei whāinga whakakao a whai wāhitanga me ngā uauatanga i i ō te tau i mua ka āwhina i ō tātou ō tātou tāngata. He tauakitanga kōrero te tupu o tō tātou kohinga pāmu hohe hiahia putunga moni i te wāhanga o tēnei ka whakahau, ka whakamanawa, i te tau 2012-2015. Ka kōpiri ngā te koanga o 2016. Hui katoa ka 21.7% ā, ka whakaatu tika i te matakitenga uauatanga i tō tātou āhei ki te kōkiri o ngā rawa katoa te nama e toe ana o ō tātou tāngata me te kaupapa o te i ngā whāinga whai huarahi rerekē a i roto i te mōrahi o tā te Kōporeihana Kōporeihana. Ko tō tātou whāinga "kia te Kōporeihana kia iti atu te hurihuri, kaupapa here nama ka 30% o ngā mahi hei pakihi mā te hunga Māori o kia toitū haere ngā tohanga ki ō tātou rawa katoa. Taranaki, ka whakahaerehia e rātou kaiwhaipānga. tonu, ā, ka whai angitu i ngā huarahi Ka pai rawa atu te hua whakahaere kē, ka toitū hoki, ka whakarato i te Ahakoa te arotahi kia eke ki te pūtea ka puta i te tau e arotakengia whai wāhitanga whai tikanga ki ōna taumata kaiwhakangao 'pai rawa ana i ō te tau i mua. He mea hīranga tāngata." atu o te momo', kua āta arotake i te moni whiwhi pai ake i ngā rihi me tā tātou pakihi ahuwhenua me te ngā whakahaere pāmu, tae atu ki te I whakaūngia tā tātou mea tuatahi kia rautaki kia ū ai tē whakarato o tēnei āta whakahaere i ō tātou nama mahi kōkiri hohe i ō tātou whāinga huarahi whakangaotanga i ngā hua me puta pāmu, te maha o ngā kararehe me te kē mā tētehi mahere mahi rautaki ka ki te rōpū. Tae atu ngā rautaki ka whakaū tonu i ngā kōpiri taumaha ki whai heipū. Ko ētehi rautaki matua o whakatūria e mātou ki te whakapai ngā putunga rawa. te mahere te: i ngā pūnaha ki te pāmu, ki ngā nui haere o te moni whiwhi ā-rīhi i whakawhiwhia i te arotake rīhi.

Nā tēnei te Kōmiti Whakahaere ka pārekareka ki te whakatau i tētehi moni hua kia $1.25 mō ia hea.

te whakatupu i ō tātou tāngata mā te Tōnuitanga'.

•K o te whenua tōpū tō tātou rawa matua, te huarahi ki te whakawhiwhi hoki ki ā mātou whāinga hua, toha hoki •K ia eke ki te taumata kaiwhakangao pakihi tino pai rawa atu TE RAUTAKI •K a whakarato i te tohanga me te I arotake tō koutou Kōmiti Whakahaere huanga, i te huanga rānei e hiahiatia i tō tātou matakitenga, 'He Tangata, ana ki ngā kaiwhaipānga katoa He Whenua, He Oranga - Te toitū me • Ka whakanui i ngā tohanga ka

panoni hanganga pāmu, ki ngā whanaketanga hangarau, me te tuku atu i ngā rawa pāmu ngoikore. Tae atu te tukutanga ki ngā momo mahi pērā i te whakamutu, i te hoko atu i ngā rīhi rōpū kē atu me te tautohu i ngā pāmu e rua hei hoko atu (ko tētahi te taitara rīhi, ko tētehi he taitara whānui). Ko te hoko mai, te hoko atu rānei o te rawa te tukanga taipitopito,

whaiwhakaaro hoki, ā, ki te ea ō tātou hiahia katoa, ka mahia. Āpiti atu i tērā, i ngā whiringa whakaaro katoa pēnei nā, ko te tino whāinga kia ū ai ka whakawhiwhia ia rawa pāmu ki ngā hua me ngā painga ka hiahiatia mō te rōpū. Ki te kore, ka whakatau whiringa tino kaha rawa atu hei whakakaha i te tōitu o tā tātou whakangaotanga pāmu. Ka whakangaotia ngā hua o te hoko/ tuku atu kia whakapaitia ai ērā atu pāmu kei roto i te kohinga, kia whakaiti i te nama, kia whakaāhei i te Kōporeihana ki te whakarerekē i ngā whaipānga kia whakawhiwhia ki ngā hua toitū mā ō tātou kaiwhaipānga.

HE HONONGA I te TP16/17 ka whakaaturia te kawenga a Parininihi ki Waitotara ki te mahi tahi mā te whanake i ngā hononga whai pono i ētehi āhuatanga hiranga. Tuatahi, i tūtaki te Kōmiti Whakahaere ki ētehi tāngata nō Ngā Rauru e pā ana ki ngā hua ka puta i tētehi pāmu hau ka tonoa ki tō rātou rohe. I te tukanga whakaae rawa i tuku te Kōporeihana i te whakaae ki taua whanaketanga pāmu hau, ki te whakaae te hapū me te iwi o te rohe. Ko te whakaaro mā tā tātou tautoko e āwhina ake ai tehapū o te rohe i roto i ngā whakawhitinga kōrero/matapaki ki ngā kaiwhanake. I tētehi wāhanga

o te tukanga, i tūtaki atu mātou ki te hapū, rangona ai ō rātou wawata me tō rātou matakitenga mō te āpōpō. I whai wāhi a PKW ki te whakaatu i te hītori whīwhiwhi o te whenua tōpū, i ngā tuapā me ngā kōpiri ka tū tonu tae noa mai ki nāianei rangi. He mahi whakawhanaunga, he mahi whai mārama mō te katoa. Ka kitea te nui haere o ngā hono kanohi ki te kanohi me ngā whānau huri noa i te maunga hei te tau e tū mai ana. I whai hononga hoki ki ngā iwi katoa i tētehi whakangaotanga whai pitomata. Ahakoa kāore i kōkiri i te whakangaotanga, ka puta te tōrunga i te mahi tahi. Hei āpiti atu i tērā, ka haere tonu tētehi whakangaotanga rawa tōpū ki Ngā Iwi o Taranaki whānui, ā, kua tata mutu te tukanga tirotiro. Ka mutu tērā ka titiro whakamua tātou ki te mahi i te taha o ō tātou karanga maha o Taranaki nui tonu ki te whakatairanga i tēnei whakangaotanga me ētehi atu anō whakangaotanga pēnei nā. Ka whanake tonu te Kōmiti i te hono ki Fonterra Cooperative Group. Nā te mea ko tātou te kaiwhakarato me te kaiwhaipānga nui rawa atu o Fonterra, ka hui auau tātou ki te taha o Fonterra e pā ana ki te rautaki me te mahi a Fonterra. I te mutunga o Pipiri 2017, i tautokona a PKW e ngā iwi me ngā hapū o te rohe ki te whakamanuhiri i tētehi tira e

HE TANGATAHE PARININIHI TANGATA KI PARININIHI WAITOTARA KI WAITOTARA INCORPORATION INCORPORATION - TE PŪRONGO - CHAIR'S A TE HEAMANA REPORT

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30 ngā kaipāmu Māori nō Waikato me Te Arawa. Ka āhei mātou te whakaatu i tō tātou mōhiotanga me ngā wheako pāmu mā te toro atu ki a rātou hei te tau e tū mai ana. He mea matua ki te whakaahu whakamua i ngā whāinga ahuwhenua pakihi te whanake i ngā hononga me te whakawhitiwhiti i ngā rautaki. I te wā tata nei i whakaū a PKW i te whai urunga ki tētehi rōpū mahi o ngā hinonga/kaupapa whenua Māori hei rapu kōrero mō tētehi pūtea motuhake mō ngā kaupapa Māori. Kua whakatūria tētehi rōpū mahi, tae atu ki PKW ki te rapu kōrero mō ngā whakangaotanga mahi tahi ka wātea ana.

MANA WHAKAHAERE Ka mihi atu ki ngā tāngata katoa o te Kōmiti, ki ngā ringatohu motuhake me tō tātou māngai kaiwhaipānga o te Tarati mō te kawenga me ngā whakawhiwhinga i tēnei tau whakapītaritari. I whirihia anōtia a Hinerangi Edwards hei mema o te Kōmiti Whakahaere, i whirihia anōtia a Darryn Ratana hei māngai kaiwhaipānga ki te Tarati hoki. Ka rawe ka tū tonu rāua ki ngā tīma mana ārahi. I tēnei tau ka arotakengia, i poroporoakitia a Aisha Ross, kāore i āhei te mahi tonu nā tōna ekenga

TR12

Nā tā tātou kaha pāhekoheko ka āhei i a tātou te puta kaha atu, me te tino āhei tētehi pakihi toitū whai angitu hoki te hanga tonu, ā, ā tōna wā ka whakarato tōnuitanga mō ō tātou tāngata. <<

ki te tūranga Ringatohu - Innovation Development Group ki Te Wānanga o Aotearoa. Ka mihi te Kōmiti Whakahaere ki a Aisha mō tōna tāpaetanga mahi i tōna tū ki te Poari, tae atu ki te wā i tū ia hei ringatohu tūhono mā tātou.

TE ĀRAHI TĀNGATA Kotahi tau ki muri nei ka pōhiritia tō tātou Tumu Whakarae hou, ko Warwick Tauwhare-George. He mea pārekareka te kite i tōna uru mai ki te whānau. Ka rawe tāna mahi ārahi i tā tātou pakihi, me tāna mahi whakahonohono ki ō tātou hoa rangapū pakihi me ngā hugna whaipānga. Ka kitea tōna ārahitanga i te hauora me te hauora o tō tātou iwi me te whakapakari i tō tātou kawenga ki te ārahitanga ā-taiao. I tēnei wā kua

kīkī ngā kaimahi o tō tātou tira tumu ārahi, ā, nā reira ka tiro whakamua ki tā rātou tāpae ki te whakatutuki i tā tātou rautaki.

TE TITIRO WHAKAMUA Ka tiro whakamua tātou ki 2018. He wā whakahīkaka tēnei ina hohe whai ai i tō tātou e tō tatou whāinga. Ka whakapono mātou ka whakarato te rautaki i ngā hua me ngā painga toitū, wā roa ki ngā kaiwhaipānga. Hei te tau e tū mai ana ka ahu whakamua tonu ō tātou rautaki matua, ka whakakaha i tā tātou kohinga. Ahakoa ngā huringa o te wā nei mā te Kōporeihana o Parininihi ki Waitotara, ka āta mōhio mātou mā tā tātou whakangao i ngā tau tata nei ki te tangata, ki ngā rawa kounga, me

te whakatū pūnaha pakihi ka āhei i a tātou ngā huringa me ngā uaua te whakaea ina puta mai ai. Nā tā tātou kaha pāhekoheko ka āhei i a tātou te puta kaha atu, me te tino āhei tētehi pakihi toitū whai angitu hoki te hanga tonu, ā, ā tōna wā ka whakarato tōnuitanga mō ō tātou tāngata. Ka mihi au ka tika hei māngai mā te Kōmiti Whakahaere ki tō tātou tira mana ārahi rātou ko ngā kaimahi, ko ngā hoa rangapū pakihi, mō ā ratou mahi. mihi mātou ki ngā kaiwhaipānga hoki nā rātou te tautoko me te manaaki haere tonu.

Mauri Ora Hinerangi Raumati-Tu’ua Heamana

TE PŪRONGO O TE TUMU WHAKARAE/ KAIWHAKAHAERE MATUA WARWICK TAUWHARE-GEORGE

PARININIHI HE TANGATA KI WAITOTARA PARININIHI INCORPORATION KI WAITOTARA - TE INCORPORATION PŪRONGO O TE TUMU - CHAIR'S WHAKARAE REPORT

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$29.8

MILLION TOTAL GROUP REVENUE

Tēnā koutou o ngā whānau o Parininihi ki Waitotara He mihi tēnei ki ngā kaupapa o te motu Me te kaupapa o Parininihi ki Waitotara – He Tangata, He Whenua, He Oranga No reira e ngā whānaunga Tēnā koutou, tēnā koutou, tēnā koutou katoa

MONI WHIWHI Hui katoa ka $29.8m te moni whiwhi ā-rōpū mō te Tau Pūtea TP16/17, ka tohu i te 64% ka nui atu i ō tērā tau (TP15/16: $18.2m). Kua puta tēnei hua i te: • Whiwhinga moni nui ake, ko te nuinga kua puta i ngā nama rīhi ka $6.73m (TP15/16: $6.07m); • Te moni whiwhi tino nui atu ka $13.1m (TP15/16: $6.8m) ka puta i te 2.76m kkMM huanga ka tāpirihia ki te pūtea tuku ā-tau pai ake a Fonterra ka $6.15 i ia kkMM (TP15/16: $3.90 i ia kkMM); • Te moni puta pai ake i te wāhanga tuwhanga me te mahi kōura ka

$2.8m (TP15/16: $2.5m) nā te wā tuku whakaratonga ACE ā-hauwhā tau; • He whiwhinga anō (tae atu ki te tauhoko kararehe pāmu me te rawa mahimoni) ka tāpae i te $7.21m (TP15/16: $2.88m).

HE TANGATA

Tēnā koe e te maunga Taranaki

Nōku te whiwhi ki te whakatakoto i tāku pūrongo ā-tau tuatahi ki ngā kaiwhaipānga mā te tīma whakahaere o Parininihi ki Waitotara e pā ana ki ngā mahi whakahaere a PKW mō te tau pūtea ka mutu i te 30 o Pipiri 2017. Ka pērā ki ngā mokamoka kei te pūrongo o te Heamana, ka whakapuaki te Kōporeihana kua hua te $36.5m mō te tau pūtea TP16/17 (TP15/16: $3.7m).

NAMA Ā-RŌPŪ Hui katoa ka $16.9m ngā nama rōpū ka tohu i te nui haere kia $0.6m i tērā tau (TP15/16: $16.3). Ka hāngai te nuinga o te nui haere o ngā nama ki ngā nama whakahaere pāmu ka $9.09m (TP15/16: $8.40m).

UTU AHUMONI Hui katoa ka $2.9m te utu mō te ahumoni i te TP16/17, ā, ka $0.4 te paitanga ake i tērā tau (TP15/16: $3.3m). Ka paku nui haere ngā moni taurewa ki te $68.8m i te 30 o Pipiri 2016 (TP15/16: $67.2m) hei tautoko i ngā matea moni tōpū whakamahi i te roanga o te wā koanga o 2016, ā, i mua i te whakapiki anō o te moni whiwhi miraka.

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TE TIROHANGA WHĀNUI KI NGĀ MAHI Whenua Ko te putunga whenua te tino rawa tonu o te Kōporeihana. Koinei ko ngā taitara rīhi mau tonu 262 i whakatūria i raro i te Ture West Coast Settlement Reserves, ā, ka pā atu tata ki te 20,000h o te putunga whenua o Taranaki, ka tata ki te 3,000h ka āta whakahaerehia e tātou. Ka ngāwari te hokohoko i ngā taitara rīhi, ā, ka mau tonu i a PKW te mana whakanao hoko tuatahi mō ngā rangi mahi 20 ina hokona ki te mākete whānui. Nā ngā kōpiri moni me te arotake ki te whakapai ake i ngā whenua e mau ana i tēnei wā kāore mātou i āta kimi whenua hoko i te tau e tirohia ana. Engari ka tāpirihia tētahi hokotanga whenua i ūngia ai i mua (i whakataungia ai i 2012) ka 40h te nui.

te nuinga o ngā kaiwhihwi rīhi - West Coast Settlement Reserves Lessees Association) ki te kopou i ngā kaiwāriu ka mahi tahi hei whakawhitiwhiti whakaaro i te nama rīhi ka whakaaetia mō ngā tau e whitu e tū mai ana. Nā te whīwhiwhi haere o te tukanga ka roa atu te wā tukanga kia whakatau ai te nama ka whakaaetia ai mō ngā whenua kore whakapainga me ngā rīhi ā-mākete i tērā i whakaaro ai. Ahakoa tāria te wā ka whakaaetia ngā nama rīhi, kāore i whakaaetia te wāriu whenua kore whakapainga, nō reira he take whakatara tērā ka puta mā ngā tirotiro rīhi kei mua i te aroaro. I riro i PKW te $6.73m (TP15/16: $6.07m) moni whiwhi rīhi tōpū. Tāpiri atu ki tērā, i tirohia motuhakengia te wāriu tika o ō tātou whenua tōpū, ā, ka $25.2m (TP15/16: $1.7m) te nui o te piki ake o te wāriu. Ko te wāriu tika o ō tātou rawa whenua tōpū katoa ka $176.99m (TP15/16: $151.96m).

whakahaerehia ēnei wāhanga tāraru waiwai mā ngā momo pūnaha me ngā momo tukanga ā-roto. Kua puta te whakamāmā ā-pūtea i te wāhanga pāmu TP16/17 i ngā tau e rua kua hipa i iti ai ngā utu miraka i Fonterra ki PKW Farms LP. Ka $2.5m te hua tino nui (TP15/16: $6.7 moni ngaro) i puta i a mātou, arā, ka $9.2m te hurihanga, arā, ka 137% te whakapainga ake i tērā tau. Ka āhua iti te matapae tīmatatanga o Fonterra, engari ka kaha pai haere i te roanga o te wāhanga, ā, i te mutunga iho ka $6.15 i ia kkMM te utu mutunga. Nā te matapae tīmatatanga i tino tūpato ai tā mātou whakahaere kia iti ngā nama nā ngā pānga ā-pūtea i puta i te iti o te utu miraka (i raro i te $5.00 i ia kkMM) mō te tau tuatoru piri tata.

I te tīmatanga o te wāhanga o te TP16/17, i whakarite mahere pūtea Ka manawareka ngā Kaiwhakahaere a PKW Farms LP kia huaina te 2.71 te tuku pūrongo ka tutuki i tētehi tino miriona kirokaramu o te miraka Mahi Pāmu tohu whai tikanga i te tīmatatanga o māro (kkMM), ā, i te mutunga i Ka ū tonu te aronga puta noa i PKW 2017, arā, ko te tukanga tirotiro rīhi whakaputahia te 2.76m kkMM. ā-whitu tau. Ka puta te whakapiki whai Farms LP ki te whakakotahitanga me angitu kia 22% te nui haere o ngā rīhi te haere tonu o te mahi whakapiki hua Ahakoa te pārekareka ka nui atu i tō o ia pāmu i nākuanei nā kia whakaū ai tātou pūtea whakaputanga, ka nui ā-tau puta noa i te tōpū whenua. He nui te painga ake o tēnei (ka $1.7m i ia ka mahi pai tā tātou pakihi PKW Farms tonu ngā uauatanga o te koanga i te pāmu, nā te tino roa o te mākūkū LP i tāna whai i te taumata ikeike tau), ā, ka tū tōtika ai te Kōporeihana me te makariri. Nā tērā i paku heke ā-momo hei kaiwhakahaere. mō ngā tau e whitu e tū mai ana. ai te whakaputanga i te mahere pūtea i taua wā, engari i te wāhanga Pērā ki ngā mahinga tirotiro rīhi e Hāunga i ngā whakapainga mutunga o te tau, atu i Kohitātea i rua kua hipa, i whakahaerehia tētehi whakahaere, ka aro tonu tā tātou hua mai ai ngā āhuatanga papai ā, ka tukanga whakahoahoa ina ka whakaae pakihi ki ngā whakahau e pā ana āwhinatia ai te taumata whakaputanga te Kōporeihana (hei kaituku rīhi me te ki te hauora me te haumaru, te rōpū kaiwhiwhi rīhi (arā ngā māngai o taiao me te tiaki kararehe, ā, ka āta whakamutunga te eke.

Ahakoa ka whakangao tonu ki ngā whakapainga hanganga waiwai, pērā i te whakapai whakahau taiao (arā, ko te whakapai i ngā pūnaha tuku wai para), ka whakaitia te whakapau whakangao anō nā te heke haere o te pūtea ahumahi pāmu kau. Kotahi te kawenga nui anō ka hokona ai te 40h whenua i te rohe o Matapū, arā, ko tētehi wāhanga o Pāmu Miraka Kau 7, ka mahi ki te whenua miraka kau 220h te rahi, e 600 ngā kau.

moni whiwhi rīhi i ngā wāhanga rawa (ka $2.8m), te wāhanga hua moni, i te pakihi whakamahi a PNF Limited Partnership nā runga i te rahinga i whakamahingia ai (ka $0.8m), me te ara rīhi i ngā ratonga whakamahi (ka $0.1m). Hui katoa ka whiwhi ki te $3.7m. (TP15/16: $3.6m) –ka 9% te pāpātanga moni (TP15/16: 8%). Ka kaha tonu te whai hua ā-pūtea a tā tātou whakangaotanga ahumoana, heoti anō me mōhio ka tika i heke te mākete i te tīmatanga o Huitanguru i tēnei tau. Ka āhua pā mai tēnei hekenga i tēnei tau pūtea, ā, ko te whakaaro ka pērā tonu hei te tau e tū mai ana, ka hāngai ki ngā āhuatanga mākete.

WHAKANGAOTANGA ANŌ Ka whakatinahia tonuhia ngā whiringa whakangaotanga momo kē a te Kōura Kōporeihana, hāunga tētehi kawenga He tau whai hua moni anō te TP16/17 i matua ka whakangao tahi ai me te whakangaotanga a te Kōporeiahana Ngā Iwi o Taranaki whānui ki tētehi i Port Nicholson Fisheries Limited whiringa whenua ki Te WhanganuiPartnership (PNF), ka whakahaerehia a-Tara. I whakatūria te kawenga i te e Koura Inc General Partner Ltd me ō mutunga o 2015/16, engari ka haere tātou hoa rangapū, a Ngāti Mutunga ki tonu i te tau 2016/17, nō reira kāore Wharekauri Asset Holding Company, anō te whakangao haupū rawa nui arā te rangapū iwi, me Moana New kia hiahiatia. Ko tā te whakaaro o ngā Zealand ināianei (ko Aotearoa kaiwhakangao ka oti ā ngā marama e Fisheries Limited i mua). ono ki te tekau mā rua e haere mai nei. Ka whiwhi a PKW Kōporeihana ki ngā ara moni whiwhi e toru i ngā whakangaotanga kōura, tae atu ki te

Ngā Āporo Rockit Kua tutuki te whakangao māmā a te Kōporeihana ki Ngā Āporo Rockit.

Kei te whanakehia te uru rākau ki Te-Matau-a-Māui, ā, ko te whāinga ka hua mai ngā āporo mō te mākete hokohoko ki tawhiti ā te toru ki te rima tau e haere mai nei. Finistere Oceania Ko te Pūtea Finistere Oceania Venture Capital te whakangaotanga tuku iho ngāwari. Kei ētehi kaupapa pakihi tīmata i te ahumahi mīhini rongoā te nuinga o ngā whakangaotanga o te pūtea nei. I tēnei tau i hokona atu te wāhanga o te pūtea moni (arā, ko te stock) Atricure me te toenga o te wāhanga i te pūtea moni Transcend, hui katoa i whakahuatia ai te $2.7m. I tēnei wā ka whakamutua te pūtea rā nā te mea kua kore ngā whakangaotanga i te 30 o Pipiri 2017. Ka pupurihia tētahi wāhanga o te pūtea ka hāngai ki te hoko atu o Transcend, heoti anō, ka tukuna pea aua moni ki te tutuki ētehi tohu whai tikanga me tutuki i te mutunga o te tau maramataka o 2018, ki te tuku rānei i aua moni. Ka tū tonu te whakaritenga me Finistere Oceania ka tirotiro tonu ai rātou ki tēnei wāriu pitomata, ā, ka whakamutu i te pūtea. Ngā Rawa Arumoni Ko ngā rawa arumoni o te Kōporeihana ka tata ki te 1% o ngā rawa katoa o PKW, engari he wāhanga whai painga tonu o tō tātou tōpū whakangaotanga. Ka whiwhi a PKW ki ngā moni rīhi i ngā rawa arumoni kei Miranda Tiriti ki Whakaahurangi; kei

HE TANGATA

Mō te taha pāmu tiaki kararehe kore miraka ka whakahaerehia e PKW, ināianei ka whakatupuria ngā kararehe kakapinga miraka kau katoa ki ō tātou ake whenua, e whakarato ai ngā hua nui ki tā tātou pakihi miraka kau ahu whakamua ai tātou. Ka ū tonu te whakamutu mīti kau hei āhuatanga hirahira o te pakihi kararehe kore miraka, i te tau i kitea ai ngā utu nui mō te mīti kau puta atu i te ahumahi.

PARININIHI HE TANGATA KI WAITOTARA PARININIHI INCORPORATION KI WAITOTARA - TE INCORPORATION PŪRONGO O TE TUMU - CHAIR'S WHAKARAE REPORT

TR15

TR16

Kuini Tiriti ki Whaitara, kei Powderham Tiriti ki Ngāmotu me tētehi wāhanga o 35 Leach Tiriti ki Ngāmotu. Hui katoa ka $0.23m (TP15/16: $0.20m) te moni rīhi ka whiwhia i ō tātou rawa arumoni i te tau. He Tangata Tēnei au ka whakanui ka tika i te kawenga me te āheitanga ā ō tātou kāwana me ngā kaimahi o mua, o nāianei rangi hoki. Tae mai ai au ki PKW i te mutunga o 2016, i āta kitea te motuhake o te pakihi o PKW, ā, me mātau ki ngā āhuatanga arumoni, whakahaere hoki. Ka tipu a PKW i ngā tau 2011-2015, ā, ka whai atu tētehi wā whakapātaritari inā ka hurihuri te ao ōhanga. Ka pukumahi te tīma manawa piharau me ngākāwana (arā, ko ngā governors) ki te hāpai i ngā āhuatanga katoa o te pakihi ina ka whakapai i ngā pūnaha maha hoki. Mai i tāku whakatūtanga, ka whai wā te tīma ki te āta aro anō ki te whāinga matua - arā, ko te whakamahi i tō tātou matakitenga, tō tātou whāinga, me ō tātou uara ahurea hei āhuatanga waiwai o ā tātou mahi katoa. Mā te whakakotahi i tō tātou whāinga me te mahi ngātahi i ā tātou mahi pakihi, ka ū tūturu ai ā tātou whakarite mō ngā panoni ka pā mai i ā tātou e mahi kia toitū ai tā tātou kaupapa. I tēnei wā, kua nui atu i te 48 ngā tāngata e whakamahia ana e mātou

(wā kikī, wā hangere, mahi waimori hoki), ā, ka 46% o rātou he Māori. Ka mahi rātou i ngā momo mahi tae atu ki te whakahaere pāmu miraka kau, kore miraka hoki; tae atu ki te hanga taiepa, te whakatupu kāwhe, te whakatau wāriu whenua, te pūtea me te tiaki pūtea, te tautoko whakahaere me te tirotiro, te hauora me te haumaru, ngā ratonga tautoko pakihi me te whakauru kaiwhaipānga/hapori. Nō muri mai i ngā panoni i te tau 2015/16, ka āta aro atu a PKW ki te whakapātari, ki te whakaū hoki i ngā tāngata whai pūkenga mō te tira Whakarae. Ka pārekareka tātou ki te whakamōhio atu kua tutuki, kua tū te tira Whakarae, ā, kua tae mai a Joe Hanita hei Kaiwhakahaere Matua Pūtea, whakangaotanga hoki, ā, kua eke a Shane Miles hei Kaiwhakahaere Matua - Ahuwhenua. Ka mārama a PKW ka whai angitū tātou mā te kounga o ngā tāngata ka whakamahia, ka whanakehia hoki. Ka āta aro atu ki te rato i te tautoko me te arataki ki ngā kaimahi hou me te whanake i ngā mahere whanake ngaio takitahi hei hāpai i te āheitanga ā-roto.

ū ai tēnei, ka arotahi te tīma ki tētehi wā tupu ka 12-18 marama te roa e whakapakari ai ngā tūāpapa o PKW - ā-rautaki, ā-mahi hoki. Ka whakarite tēnei i a tātou mō te 18-36 marama wā tupu ka whai ake, ina ka whakanuia ake te mahi me te whakangao tahi me ngā hoa rangapū whakaaro ōrite. Hei ngā tau e 3-5 ka tū mai o tō tātou whanaketanga, ka whakaūngia ō tātou āheitanga kia mahi ai tātou hei 'tino o te rōpū'. He hiahia matua te hiringa o te whakamahi nā te mea ka āhei ai tātou te whakatutuki i tō mātou tino whāinga, arā, ko te whakarato whai wāhitanga, hua pai ake hoki ki ō tātou kaiwhaipānga.

HEI WHAKAKAPI Ki ngā kaiwhaipānga me te tira Whakarae o PKW, tēnei mātou ko ngā kaimahi o te rōpū o Parininihi ki Waitotara whānui e mihi maioha ki a koutou, nā koutou mātou i tautoko i te tau e tirohia ana. Ka whakahī mātou ki te whai wāhitanga ki te manaaki, ki te whakaatu hoki i te taonga tuku iho o te Kōporeihana o Parininihi ki Waitotara.

Ngãā mihi

Pērā ki ngā kōrero o te pūrongo Heamana, ka āta aro mātou ki te Warwick Tauwhare-George whakakaha i ngā whakahaere o Te Tumu Whakarae/Kaiwhakahaere nāianei hei whakapai i ngā putanga Matua ka hiahiatia mā ngā kaiwhaipānga. Kia

HE TANGATA

PARININIHI HE TANGATA KI WAITOTARA PARININIHI INCORPORATION KI WAITOTARA - TE INCORPORATION PÅªRONGO O TE TUMU - CHAIR'S WHAKARAE REPORT

TR17

"We have emerged from this period in a stronger position, financially and strategically. Aspirations for the future have been affirmed and we have reset our strategic priorities to focus our efforts on strengthening our core strategies."

PARININIHI KI WAITOTARA INCORPORATION - CHAIR'S REPORT

PARININIHI KI WAITOTARA INCORPORATION

CHAIR’S REPORT

$36.5

HINERANGI RAUMATI-TU'UA

MILLION NET PROFIT AFTER TAX

Poua ki raro

Poua iho ra ki te maunga titohea E kore e pau te ika unahi nui Tihei mauri ora

It has been a significant year for the Incorporation as we emerge from the last few years of revenue pressure from the dairy downturn. We have emerged from this period in a stronger position, financially and strategically. Aspirations for the future have been affirmed and we have reset our strategic priorities to focus our efforts on strengthening our core strategies. I'm pleased to say we have achieved significant performance improvements.

FINANCIAL RESULTS The downturn in the global milk price finally eased and enabled group revenue to recover. Improved revenue was supported by improved cost control and minimisation of capital investment across the group. Parininihi ki Waitotara is pleased to report we have achieved an after tax profit of $36.5m for the FY16/17 financial year (FY15/16: $3.7m).

This result is made up of two parts. The first part represents a cash operating profit of $9.3m (FY15/16: $0.5m loss) achieved predominantly from an uplift in lease rentals following the outcome of the rent review, improved farm performance and continued good performance from the Incorporation’s lobster investments.

HE TANGATA

Poua ki runga

On behalf of the Committee of Management I am pleased to present Parininihi ki Waitotara Incorporation’s (PKW) annual report on performance for the period 1 July 2016 to 30 June 2017 (FY16/17).

The second part represents non-cash capital gains of $27.2m (FY15/16: $4.2m) made up primarily of gains on the fair value of corpus lands ($25.2m) and positive movements on our Fonterra Shares ($1.7m). These matters will be commented on in more detail in the Chief Executive’s Report. As a result of the above financial performance, our shareholders’ net equity has grown considerably to $240m (FY15/16: $204.3m) an overall increase of $35.7m (17.5%). The fair value of whenua has seen a marked increase in the corpus land ($25.2m) following the revaluation process conducted on completion of the 7-year rent review. The rise in value is very positive and reflects the 22% increase in rental revenue achieved in the rent review. Total bank debt as at 30 June 2017 was $68.8m (FY15/16: $67.2m), a

"As a result of the above financial performance, shareholders’ net equity has grown considerably to $240m..." <<

slight increase on the prior year to aid our working capital requirements through the 2016 spring period. Total debt sits at 21.7% of total assets which remains within the Incorporation’s debt policy maximum of 30% of total assets. The financial operating result for the year in review is very positive compared to the previous year. The improved revenue from lease rentals and farming operations was key, together with prudent management of our farm working expenses, stock levels and continuation of tight capital constraints. On this basis the Committee of Management is pleased to recommend a dividend of $1.25 per share.

STRATEGY Over the year, your Committee of Management reviewed our vision ‘He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity’. In October 2016, the Committee affirmed this vision as the overarching

aspiration of our people. It has become an iconic statement that motivates and inspires and it appropriately reflects the vision of our people and the purpose of the Incorporation. Our mission is to be “a successfully diversified and sustainable Taranaki Māori owned and operated business providing meaningful opportunity to its people”. We reinforced our priority to actively advance our diversification goals with a targeted strategic action plan. Core strategies of the plan are: •C orpus land is our core asset and vehicle to achieving our return and distribution goals •B e a best in class corporate investor •P rovide expected distribution and/or benefit to all shareholders • I ncrease distributions comparable to good commercial practice; •D iversify the investment portfolio for sustainable distributions.

portfolio in 2012-2015 has brought opportunities as well as challenges. The challenges have constrained our ability to advance the Incorporation’s diversification goals for less volatile and more sustainable distributions to our shareholders. With a focus on being a “best in class” investor, a critical review of our farming business and its strategy has occurred to ensure this investment is providing the required returns to the group. Strategies we have implemented include on-farm system optimisation, farm structural changes, technological advancements, as well as divestment of underperforming farming assets. Divestment has included a range of actions such as terminating or subletting third party leases and identifying two farms for sale (one leasehold title and one general title). Acquisition or divestment of any asset is a detailed and considered process and will only occur if all our requirements have been met. Also, in all decisions of this type, the overriding objective is to ensure each farming asset is achieving the required returns and benefits to the group. If not, then robust decisions will be made to strengthen the sustainability of our farming investment.

The Committee has spent considerable time over the past year advancing the core strategies. Our internal focus on farming optimisation and system improvements has led to a deeper understanding of our farming The proceeds of divestment will be business. Growth in our active farming reinvested to optimise other farms

RELATIONSHIPS Parininihi ki Waitotara’s commitment to collective action through developing trusted relationships was demonstrated during FY16/17 in several important areas. Firstly, the Committee of Management met with whānau members of Ngaa Rauru regarding the implications of a proposed windfarm on a Waverley property within their rohe. As part of the resource consenting process, the Incorporation submitted its approval to the windfarm development, subject to the consent of the local hapū and iwi. It was anticipated that our stance would provide leverage for the local hapū in its discussions with developers. As part of the process, we met with the hapū to hear their aspirations and vision for their future. PKW also had the opportunity to share the complex history of the corpus land and the limitations and restrictions that remain to this day. The exercise was one of whakawhānaungatanga and enlightening for all. The positive engagement will see more kanohi ki te kanohi engagements with whānau around the maunga over the coming year.

Engagement with all iwi in a potential miro/berry investment were also held. While investment was not advanced, the opportunity to collaborate was a positive exercise.

working party has been established, including PKW to investigate collaborative investment opportunities.

In addition, investment in a collective property investment opportunity with Ngā Iwi o Taranaki whānui is still underway, with due diligence nearing an end. Once complete, we are looking forward to working with our wider Taranaki whānau to advance this and other similar investments.

GOVERNANCE I would like to thank all Committee members, our independent directors and our shareholder representative for the Trust for the commitment and achievements during a challenging year.

The Committee continued to develop our relationship with Fonterra Cooperative Group. As Fonterra’s largest Māori supplier and shareholder, we meet regularly with Fonterra regarding its strategy and performance. In late June 2017, PKW was supported by local iwi and hapū in hosting a group of 30 Māori dairy farmers from Waikato and Te Arawa. The visit provided the chance to share our farming knowledge and experiences with a reciprocal visit planned in the coming year. The development of relationships and sharing of strategies is key to advancing Māori agribusiness aspirations. PKW has recently confirmed participation in a working group of Māori land-based entities to investigate a dedicated New Zealand superfund for Māori organisations. A

Hinerangi Edwards and Darryn Ratana were re-elected as a Committee of Management member and our shareholder representative to the Trust respectively. It is great to have their continued presence in our governance teams.

HE TANGATA

within the portfolio, reduce debt and enable the Incorporation to diversify its interests to achieve sustainable returns for our shareholders.

PARININIHI KI WAITOTARA INCORPORATION - CHAIR'S REPORT

During the year in review, the Committee of Management farewelled Aisha Ross who was unable to continue his service following a promotion into the role of Director – Innovation Development Group at Te Wānanga o Aotearoa. The Committee of Management thank Aisha for his contribution during his tenure on the Board, as well as his earlier time as our associate director.

PEOPLE LEADERSHIP We welcomed our new CEO Warwick Tauwhare-George a year ago. It has been pleasing to see him

"Our collective strength has enabled us to emerge stronger and more capable of continuing to build a sustainable and successful business that will ultimately provide prosperity for our people."

established as part of the whÄ nau. Warwick has done a great job of leading our business and building relationships with our business partners and stakeholders. Warwick has shown real leadership in the health and safety of our people and in further building our commitment to environmental leadership. We have a full complement now of kaimahi in our executive leadership team and so we look forward to the contribution they will make to achieving our strategy.

LOOKING FORWARD We look forward to 2018. We are in exciting times as we actively pursue

our vision and mission. We believe our strategy will deliver long term sustainable returns and benefits to shareholders. The year ahead will see our core strategies advanced and our portfolio strengthened. While it is clearly a time of change for Parininihi ki Waitotara Incorporation, we are confident our investment over recent years in people, quality assets and business systemisation will mean we will be able to deal with changes and challenges as they occur. Our collective strength has enabled us to emerge stronger and more capable of continuing to build a sustainable and

successful business that will ultimately provide prosperity for our people. On behalf of the Committee of Management, I would like to thank our committed team of governors, kaimahi and business partners for their efforts. We also thank shareholders for their continued support and manaaki.

Mauri Ora Hinerangi Raumati-Tuâ&#x20AC;&#x2122;ua Chair

PARININIHI KI WAITOTARA INCORPORATION - CEO'S REPORT

CHIEF EXECUTIVE OFFICER’S REPORT WARWICK TAUWHARE-GEORGE

$29.8

MILLION

Tēnā koe e te maunga Taranaki Tēnā koutou o ngā whānau o Parininihi ki Waitotara He mihi tēnei ki ngā kaupapa o te motu Me te kaupapa o Parininihi ki Waitotara – He Tangata, He Whenua, He Oranga No reira e ngā whānaunga Tēnā koutou, tēnā koutou, tēnā koutou katoa

On behalf of the management team for Parininihi ki Waitotara Incorporation, I am pleased to present my first annual report to shareholders on the management activities for the financial year ending 30 June 2017. As detailed in the Chair’s report, the Incorporation reports a profit position of $36.5m for the FY16/17 financial year (FY15/16: $3.7m).

REVENUE Total group revenue for FY16/17 year was $29.8m, representing a 64% increase on the previous year (FY15/16: $18.2m). This result has been made up of the following: • Increased whenua income primarily from lease rentals of $6.73m (FY15/16: $6.07); • Significantly increased dairy revenue of $13.1m (FY15/16: $6.8m) generated from 2.76m kgsMS production combined with an improved Fonterra payout for the year of $6.15 per kgsMS (FY15/16: $3.90 per kgsMS); • I mproved revenue from lobster quota and processing of $2.8m (FY15/16: $2.5m) due to the timing of an additional quarterly ACE distribution;

HE TANGATA

TOTAL GROUP REVENUE

•O ther income (including livestock trading and commercial property) contributing $7.21m (FY15/16: $2.88m).

GROUP EXPENSES Total group expenses of $16.9m represent a $0.6m increase on the previous year (FY15/16: $16.3). Most of the increase in expenses relate to farm operating expenses of $9.09m (FY15/16: $8.40m).

FINANCE EXPENSE Total net finance cost for FY16/17 was $2.9m, an improvement of $0.4m on the prior year (FY15/16: $3.3m). Borrowings increased slightly to $68.8m as at 30 June 2016 (FY15/16: $67.2m) to support our working capital requirements through the 2016 spring period and prior to the milk revenue recovery.

OPERATIONAL OVERVIEW Whenua The Incorporation’s core asset continues to be our corpus land portfolio. This is in the form of 262 remaining perpetual leasehold titles, established under the West Coast

Settlement Reserves Act and covers approximately 20,000ha of Taranaki corpus whenua, of which we actively control approximately 3,000ha. The leasehold titles are freely traded and PKW retains a 20-working day first right of refusal to purchase when sold on the open market. Due to capital constraints and focus on optimising current land holdings, we did not actively pursue land acquisition during the year in review. However, a previously committed purchase (agreed in 2012) of 40ha of whenua was added to the portfolio.

and market rentals, due to the growing complexity of the process. While rental rates were eventually agreed, the unimproved land value was not, so will be a challenging topic in future rent review rounds.

of $2.5m (FY15/16: $6.7 loss) a $9.2m turnaround, being a 137% improvement on the prior year.

Fonterraâ&#x20AC;&#x2122;s opening forecast was subdued, but improved substantially as the season progressed, resulting in a final payout of $6.15 per kgMS. PKW received corpus lease rental The opening forecast required income of $6.73m (FY15/16: $6.07). In addition, the fair value of our corpus us to continue to operate under land was independently reviewed and considerable austerity as a result increased significantly with a valuation of the financial impacts faced by subdued milkprice payments (under gain of $25.2m (FY 15/16: $1.7m). $5.00 per kgMS) for the third year in The fair value of our total corpus a row. land assets is $176.99m. (FY 15/16: $151.96m). PKW Farms LP began the FY16/17 Management is pleased to report season budgeting to produce 2.71 Farming that a significant milestone was million kilograms of milk solids The emphasis across PKW Farms achieved in early 2017, being the (kgMS) and achieved a final result of LP remained on consolidation and seven-year rent review process. The 2.76m kgMS. While it was pleasing continuing the recent individual farm result was a successful uplift to the we exceeded our productivity optimisation work to ensure our PKW annual lease rentals of 22% across budget, within this was a very Farms LP business is as efficient as the entire corpus land portfolio. challenging spring period on-farm with possible as it strives towards being a This is a significant improvement predominantly wet and cool conditions best-in-class operator. ($1.7m per annum) and will stand the prevailing over an extended period Incorporation in good stead for the of time. This led to production being Outside of operational efficiency next seven years. slightly below budget at that point, improvements, health & safety, but conversely the back half of the environment and animal welfare Similar to the last two rent review season from January saw favourable imperatives remain the key areas of rounds, a collegial process was conditions experienced and aided the focus for our business, with these undertaken whereby both the final productivity performance being critical risk areas being actively Incorporation (as the lessor/landlord) achieved. controlled through a range of internal and the lesseesâ&#x20AC;&#x2122; association systems and processes. (representatives of the majority of In terms of the drystock properties lessees â&#x20AC;&#x201C; West Coast Settlement which PKW operates, we now have The FY16/17 farming season finally Reserves Lessees Association) all dairy replacement animals reared offered some financial relief from agreed to appoint joint valuers to on our own blocks of whenua, which the prior two years which have negotiate an agreed rental for the provides immense benefit to our been characterised by very low coming seven years. The process took milk-price payments to PKW Farms dairy business as we move forward. Finishing beef also remains an longer than expected to arrive at an LP by Fonterra. We produced a important component of the drystock significantly improved profit position agreed value of the unimproved land

While capital investment continued into crucial infrastructure upgrades, such as improving environmental imperatives (effluent system upgrades), other capital expenditure was minimised as a result of the financial dairy downturn. The only other major commitment undertaken was the acquisition of 40ha of whenua in the Matapu area, which is part of the Farm 7 Dairy Unit and operates on a 220ha milking platform milking 600 cows. Lobster FY16/17 produced another profitable year from the Incorporation’s investment in Port Nicholson Fisheries Limited Partnership (PNF), managed by Koura Inc General Partner Ltd with our partners Ngāti Mutunga ki Wharekauri Asset Holding Company, the iwi collective partnership and now Moana New Zealand (formerly Aotearoa Fisheries Limited). PKW Incorporation receives three income streams from its lobster investments including lease income from the Incorporation’s quota assets ($2.8m), a profit share from the PNF Limited Partnership processing business based on volumes processed ($0.8m), and a rental stream from the processing facilities ($0.1m). This combines to provide a total return of $3.7m (FY15/16 $3.6m) – a return rate of 9% (FY15/16: 8%).

Our fisheries investment remains a strong financial performer, however it is important to note that a drop in the market occurred in early February of this year. The impact of this drop has been partially felt in this financial year and we expect it to continue into the coming year, subject to market conditions.

OTHER INVESTMENTS The impact of prior years’ reduced revenue continues to constrain the Incorporation’s diversified investment opportunities, except for a principal commitment to collectively invest in a Wellington property opportunity with Ngā Iwi o Taranaki whānui. The commitment was made in late 2015/16, however due diligence has continued through the 2016/17 year, therefore no major capital investment has been required at this stage. Investors anticipate completion in the next six to twelve months.

are with start-up ventures in the medical devices industry. During the year the interest in the Atricure stock was sold along with the remaining interest in the Transcend stock, which realised a total of $2.7m. The fund is in the process of being wound up as there are no investments remaining at 30 June 2017. An amount is held in escrow relating to the sale of Transcend, however any future release of funds will be contingent on the achievement of a number of milestones not due until the end of the 2018 calendar year, if at all. An arrangement continues with Finistere Oceania in which they will continue to oversee this potential value and wind up the fund.

Commercial Property The Incorporation’s commercial property represents approximately 1% of PKW’s total assets, yet is a valuable part of our overall investment portfolio. PKW receives rent from its commercial properties in Miranda Street Stratford; Queen Street Waitara, Powderham Rockit Apples Street New Plymouth and part of 35 The Incorporation’s modest investment Leach Street New Plymouth. The total into Rockit Apples is in place. The rent received from our commercial Hawkes Bay-based orchard is in properties during the year was $0.23m development and is expected to (FY 15/16: $0.20m). produce apples for the international People export market in the next three to five I would like to take this opportunity years. to acknowledge the commitment Finistere Oceania and capability of our governors and The Finistere Oceania Venture Capital kaimahi, both past and present. On Fund is a passive legacy investment. joining PKW in late 2016, it become The majority of the fund’s investments evident that the business of PKW is

HE TANGATA

business, in a year that saw strong beef prices across the industry.

PARININIHI KI WAITOTARA INCORPORATION - CEO'S REPORT

unique and requires a high degree of commercial acumen and operational expertise. The period of PKW’s growth from 2011-2015 was followed by a very challenging period of economic volatility. The dedicated team of kaimahi and governors have worked hard to optimise all areas of the business, while also implementing multiple system improvements.

attract and retain a talented team of executive leaders. We are pleased to report that our executive leadership team is now complete, with the recent additions of Joe Hanita to the position of GM Finance and Investments and the promotion of Shane Miles to the position of GM Ahuwhenua.

PKW recognises that our success is largely based on the quality of the Since my appointment, we have taken people it employs and develops, time to refocus the team on the end therefore we have continued to work goal – making our vision, mission and on our people strategies. Special cultural values of critical importance focus has been given to providing to all that we do. Unifying our purpose adequate support and induction to and the way we undertake our new kaimahi as well as development business has been key to ensuring we of individual professional development are prepared for the changes that will plans to build internal capability. come as we work on strengthening the sustainability of our business. Strategic Focus As outlined in the Chair’s report, our We now employ more than 48 primary focus is on strengthening people (fulltime, part-time and current operations to improve the casuals) of which 46% are Māori. expected returns for shareholders. To They are employed in a range of ensure this occurs, the team will focus areas including dairy and drystock on a 12-18-month phase of reinforcing farm management, fencing, calf PKW’s foundations – strategically rearing, land valuation, finance and and operationally. This will prepare accounting, administration and us for our next 18-36-month phase analytical support, health and safety, of growth, which will see us increase business support services and shareholder/community engagement. collaboration and co-investment with like-minded partners. The next 3-5-year phase of our development Following changes in the 2015/16 will be cementing our capabilities to year, PKW has been on a drive to

ensure we are operating as ‘best in class’. Operational excellence is a key expectation as it will enable us to deliver on our core goal of providing opportunity and improved returns to our shareholders.

CONCLUSION On behalf of the kaimahi of the wider Parininihi ki Waitotara Incorporation group I would like to thank the shareholders and governance team for their continued support during the year in review. We are proud of the opportunity to serve and represent the legacy of Parininihi ki Waitotara Incorporation.

Ngãā mihi Warwick Tauwhare-George Chief Executive Officer

GROUP PERFORMANCE AT A GLANCE

FIVE YEAR CONSOLIDATED PERFORMANCE TO 2016/17 2012/13 2013/14 2014/15 2015/16 2016/17

Revenue

OPERATING PROFIT AFTER TAX AND BEFORE FAIR VALUE GAINS / (LOSSES) UP $9.8M FROM 2016 TO A PROFIT OF:

$'000

20,415

29,482

21,872

18,206

29,796

(12,528) (15,440) (16,561) (16,344) (16,902)

Operating expenses

(2,223)

(2,537)

(3,336)

(3,280)

(2,944)

792

1,095

1,151

1,099

954

Operating profit / (deficit) before tax and other items

6,456

12,600

3,126

(319)

10,904

Tax expense

(855)

(2,161)

(457)

(193)

(1,633)

Operating profit / (deficit) after tax and before fair value gains / (losses)

5,601

10,439

2,669

(512)

9,271

Net gains / (losses) from investments

10,219

(1,307)

4,838

4,228

27,229

Profit from continuing operations

15,820

9,132

7,507

3,716

36,500

Finance costs Share of profit from joint venture

$9.271M

FINANCIAL POSITION

$240.0M

$'000

Financial Performance

FINANCIAL PERFORMANCE

EQUITY UP $35.695M FROM 2016 TO:

$'000

6 30 64

TOTAL ASSETS

64%

30%

PKW Whenua

PKW Fish

PKW Farms

PARININIHI KI WAITOTARA INCORPORATION - GROUP PERFORMANCE

PERFORMANCE HIGHLIGHTS 2016/2017

Lobster return on assets were 9% for the financial year 30 June 2017.

The fair value of the total whenua assets increased 19.6% to $202.4m as at 30 June 2017.

Milk solids produced increased <1% on prior year reflecting a period of consolidation following operational changes previously implemented.

<1%

20%

KEY OPERATING DATA 2012/13

2013/14

2014/15

2015/16

2016/17

Total Milk Solids Produced kgs/ms '000

2,668

3,009

3,333

2,743

2,759

Quantity of Total Livestock on Hand1

5,390

8,064

9,655

7,568

7,926

Quantity of Dairy Cattle on Hand2

4,482

6,684

8,055

6,522

6,671

Total Hectares Under Management3

3,981

4,435

4,867

4,889

4,989

Total Effective Hectares (Dairy Operations)

2,226

2,342

2,412

Dividends Provided $'000

1,326

1,808

599

1,199

1,499

209

327

282

227

234

PKW Trust Grants Distributed $'000 1 2 3

includes all PKW owned dairy cattle, beef cattle and sheep

includes PKW dairy cattle only; excludes any sharemilker dairy cattle includes all PKW land either owned or leased

KEY OPERATING DATA TERM LIABILITIES $'000

$43,950

2012/13

$62,531

2013/14

$68,839

2014/15

$67,189

2015/16

$68,787

2016/17

Increase in debt levels due to working capital requirements over the spring period.

TOTAL ASSETS $'000 2012/13

$239,997

2013/14 2014/15

$267,143 $276,994 $279,040

2015/16

$316,493

2016/17

Unimproved lease land increase of $25.2m, an improved cash postion of $6.8m together with an increase in both livestock held and fair value of $2.6m during 2016-17.

TOTAL EQUITY $'000 2012/13 2013/14 2014/15 2015/16 2016/17

$188,850 $196,809 $202,907 $204,327 $240,022

Shareholders Equity has increased consistently year on year, from $188.9m in 2013 to $240.0m in 2017, representing a total growth of 27.1% over 5 years.

PARININIHI KI WAITOTARA INCORPORATION - GROUP PERFORMANCE

COMMITTEE OF MANAGEMENT

Hinerangi Raumati-Tu'ua (Chair)

Bev Gibson

Claire Nicholson

Hinerangi Edwards

Taaringaroa Nicholas

Aisha Ross (Retired April 2017)

INDEPENDENT DIRECTORS

Richard Krogh (PKW Farms GP Ltd, Independant Director)

SHAREHOLDER REPRESENTATIVE

Philip Luscombe (PKW Farms GP Ltd, Independant Director)

Darryn Ratana (PKW Trust Shareholder Representative)

David McLeod

COMMITTEE OF MANAGEMENT Hinerangi Raumati-Tu'ua (Chair) Bev Gibson Claire Nicholson David McLeod Hinerangi Edwards Taaringaroa Nicholas Aisha Ross (Retired April 2017)

JOINT VENTURE COMPANIES

PORT NICHOLSON FISHERIES GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua Warwick Tauwhare-George

CHIEF EXECUTIVE / SECRETARY Warwick Tauwhare-George (Appointed October 2016)

KOURA INC GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua Warwick Tauwhare-George

PKW COMMITTEES

SUBSIDIARY COMPANIES

PKW TRUST Hinerangi Edwards (Chair) Bev Gibson Claire Nicholson David McLeod Hinerangi Raumati-Tu'ua Taaringaroa Nicholas Aisha Ross (Retired April 2017) Darryn Ratana (PKW Trust Shareholder Representative)

PKW FARMS GENERAL PARTNER LTD Hinerangi Raumati-Tu'ua (Chair) Bev Gibson Claire Nicholson David McLeod Hinerangi Edwards Taaringaroa Nicholas Aisha Ross (Retired April 2017) Phillip Luscombe (Independent Director) Richard Krogh (Independent Director)

HUMAN RESOURCES COMMITTEE Bev Gibson (Chair) Hinerangi Edwards Hinerangi Raumati-Tu'ua Phillip Luscombe (Independent Director) AUDIT AND RISK COMMITTEE Taaringaroa Nicholas (Chair) Bev Gibson Claire Nicholson Richard Krogh (Independent Director) Aisha Ross (Retired April 2017)

PKW INVESTMENTS LTD (INACTIVE) Hinerangi Raumati-Tu'ua TARANAKI AQUA GARDENS LTD (INACTIVE) Hinerangi Raumati-Tu'ua TE ORANGA LIVESTOCK LTD Warwick Tauwhare-George

PARININIHI KI WAITOTARA INCORPORATION - COMMITTEE OF MANAGEMENT

HINERANGI RAUMATI-TU'UA

CLAIRE NICHOLSON

Elected Chair, Committee of Management of PKW Incorporation in 2011. Chair PKW Farms General Partner Ltd, member of Human Resources Committee and PKW Trust.

Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and PKW Trust.

ENTITY POSITION Te Ohu Kaimoana Portfolio Management Ltd Director Te Ohu Kaimoana Trustee Ltd Director Aotearoa Fisheries Ltd Director Nga Miro Trust Chairman Crown Forestry Rental Trust Director Forestry Emissions Unit Trust Chair Port Nicholson Fisheries General Partner Ltd Director Taranaki Iwi Holdings Management Limited Director Koura Inc General Partner Limited Director Auckland Council Investments Ltd Director Venture Taranaki Director Taranaki Aquagardens Limited Director PKW Investments Limited Director Nga Kai Tutoko Limited & Te Pou Herenga Pakihii LP Chair Te Kiwai Maui Ltd Chair

AISHA ROSS Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and PKW Trust (Retired April 2017). ENTITY POSITION 23ika Ltd Managing Director Ngaruahine Fisheries Ltd Director Baxters Ltd Director Palmerston North Māori Reserves Trust Trustee Te Wananga o Aotearoa Employee

ENTITY POSITION Sirona Animal Health Ltd Shareholder/Director EOS Consulting Ltd Director Techion Shareholder Edison Consulting Group Ltd Shareholder AgResearch Associate Director O'Brien Group Holdings Ltd Director/Shareholder Mahu Oils Ltd Director

DAVID MACLEOD Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, member of Audit and Risk Committee and member of PKW Trust. ENTITY POSITION AJ Greaves Electrical Ltd Owner/Managing Director Taranaki Regional Council Chairman LGNZ - Regional Affairs Committee Member Port Taranaki Ltd Director Fonterra Director Far South Farms Ltd Shareholder Matau Technologies Limited Director Predator Free 2050 Ltd Director

HINERANGI EDWARDS Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, member of Human Resources Committee and Chair PKW Trust. ENTITY POSITION Aatea Consultants Ltd (t/a Aatea Solutions) Director R and R Edwards Whanau Trustee Ltd Director Māori Translation.co.nz Ltd Director Agri Women's Development Trust Trustee Kupenga 94 Trust Trustee Te Taura Whiri Māori Language Commission Board Member

BEV GIBSON

PHILIP LUSCOMBE

Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, Chair Human Resources Committee and PKW Trust.

Independent Director of PKW Farms General Partner Ltd and member of Human Resources Committee.

ENTITY POSITION Quality Visions Ltd Managing Director Mahia Mai a Whai Tara Trust Chairman Amiria Rangi Education Trust Trustee Lantern House Trust Independent Trustee Lottery Taranaki Community Committee Committee Member Taranaki District Health Board Board Member

TAARINGAROA NICHOLAS Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd, Chair Audit and Risk Committee and member of PKW Trust. ENTITY POSITION Ngati Ruanui Holdings Corporation Ltd Director Ngati Ruanui Holdings Operating Company Ltd Director Parininihi ki Waitotara Incorporation Committee Member/ Shareholder PKW Farms Ltd Director Te Awanui Hukapak Ltd Director Southern Pastures (NZ) Ltd Director Southern Pastures Founders Ltd Director/Shareholder Southern Pastures Management Ltd Director/Shareholder Miraka Ltd Director Pirirakau Trust Trustee Direct Capital IV Member Advisory Committee Waikato-Tainui College of Research & Development Trust Trustee Te Waharoa Investments Ltd Director Matariki Capital Partners Ltd Director Waikato-Tainui Group Investment Committee Member

ENTITY POSITION Philip Luscombe Partnership Partner Hendham Farm Co Director Koki South Farms Limited Director Pharm Trust Ltd Trustee PKW Farms Limited Director Allied Farmers Limited Director Kingfisher Escape Limited Director Ocean Ohope Limited Director Argyll Farms Ltd Chairman Massey, Lincoln & Agricultural Industry Trust Trustee Allied Nationwide Finance Ltd Director Allied Farmers Rural Ltd Director Mairangi Investments Ltd Director Par Farms Ltd Director Te Rua o Te Moko Ltd Director NZ Farmers Livestock Ltd Director NZ Farmers Livestock Finance Ltd Director

RICHARD KROGH Independent Director of PKW Farms General Partner Ltd and member of the Audit and Risk Committee. ENTITY POSITION Energia Limited Director Port Taranaki Limited Director & Deputy Chair Top Energy Limited Director & Deputy Chair Ngawha Generation Limited Director The Lines Company Limited Director First Gas Topco Limited and Subsidiaries Director and Deputy Chair Gas Services New Zealand Ltd Director & Deputy Chair Top Energy Ngawha Spa Limited Director Financial Corporation Ltd Director

PARININIHI KI WAITOTARA INCORPORATION - COMMITTEE OF MANAGEMENT

GOVERNANCE

PKW Audit and Risk HR Committee PKW Farms General PKW Trust Incorporation Committee Partner Ltd Member Attended Possible Attended Possible Attended Possible Attended Possible Attended Possible

Hinerangi Raumati-Tu'ua Hinerangi Edwards Bev Gibson Claire Nicholson David MacLeod Taaringaroa Nicholas Darryn Ratana Phillip Luscombe Richard Krogh

8 8 9 9 8 9 -

9 9 9 9 9 9 -

3 3 3 3 4 4

4 4 4 4

3 3 2 2 -

3 3 3 3 -

*NOTE: PKW Incorporation and PKW Farms GP Ltd meetings are held on the same day.

EXECUTIVE LEADERSHIP TEAM

Warwick Tauwhare-George (Chief Executive Officer)

Allie Hemara-Wahanui (General Manager Whaipainga)

Joe Hanita (General Manager Finance & Investments)

Shane Miles (General Manager Ahuwhenua)

Jacqui King (Executive Services)

8 8 9 9 8 9 9 8

9 9 9 9 9 9 9 9

6 6 7 7 6 7 5 -

7 7 7 7 7 7 7 -

Our Whenua - Our Enabler The Seven Year Rent Review The seven year rent review process is a significant milestone for Parininihi ki Waitotara. This means we get the chance to recognise the growth in value that has occurred in our corpus land holdings. It is an important occasion that enables us to reassess that value and leverage the opportunities that will then arise.

Committee of Management has taken the position not to sell corpus land.

PKW operates an active and passive land portfolio, of which corpus land is one part. The second is leasehold land which represents the 262 perpetual leases that sit over corpus land. PKW owns the underlying corpus land and there is Itâ&#x20AC;&#x2122;s important to remember that a separate legal title that gives the the 20,000ha of corpus land is lessee uninterrupted rights to the the remaining whenua of the land in perpetuity. The lessee owns 80,000ha that was set aside as any improvements they have made settlement reserves for Taranaki and when they decide to sell the MÄ ori, following the 1860s land lease, their aspiration is to achieve confiscations. a profit on that investment. The leasehold titles are freely traded and Corpus land is subject to Te Ture Whenua MÄ ori Act and shareholders PKW retains a 20-working day first right of refusal to purchase when control the sale of corpus land. Because of this history, the sold on the open market.

Land

Of the 20,000ha of corpus land, PKW has actively regained control of parts of that whenua through the purchase of approximately 3,000ha of leasehold titles. The right to trade leasehold titles remains with the Incorporation.

1,650,000

1,700,000

HE WHENUA

PARININIHI KI WAITOTARA INCORPORATION

appointed their own valuers to jointly entering into third party rural leases determine an appropriate and fair on the open market as we required market rental value. them. Both freehold land and rural leases are not subject to Te Ture In this year’s rent review round, Whenua Māori Act and can be freely we again utilised the collegial traded on the open market, unlike approach, however agreement was corpus land. not reached across all areas of Every seven years Parininihi ki the review. While rental rates were Key to advancing our strategic Waitotara and the West Coast eventually agreed, the unimproved aspirations and goals is how lessees review the rent for leasing land value was not, presenting a we leverage our land portfolio. corpus land. This is a complex challenge in future rent reviews. Differences in our land classes process for all parties. (corpus land, leasehold titles, rural The outcome of this particular rent leases and freehold land) determine When the legislation changed review was a successful increase how they can contribute to these in 1997, the rent review period of 22% equating to nearly $1.7m goals. In the periods where PKW reduced from every 21 years to extra rental income per annum for focuses on growth, acquisitions of 7 years and PKW received a first the next seven years. Naturally the different land classes will be higher. right to buy a lease on the open lessees wanted to pay less and In periods when PKW are focused market. This was a significant game- PKW desired more - the middle on consolidation, we are more likely changer that led to PKW actively ground was eventually determined to divest land that is tradable on the acquiring land to build our farming as acceptable to both parties. open market. This level of flexibility portfolio and becoming the largest The seven year rent review is been over our land holdings is crucial to dairy farmer in the region. a catalyst for the growth of PKW. ensuring PKW grows sustainably It hasn’t all been plain sailing as It has enabled the purchasing of and delivers expected returns to the first rent review resulted in a leasehold titles which have created shareholders. number of lessees disputing the the core farming business as each While all land is important, corpus market rent assessments. The last subsequent review has created land is the heart of PKW. It is our two rent reviews paved an amicable more opportunity to advance the core enabler and will sustain us and way forward by utilising a collegial growth strategy of PKW. This has process. By agreement, both parties included buying freehold land and our future generations. 1,750,000

1,800,000

Taumarunui !

Brixton

5,680,000

Onaero !Urenui Beach ! ! Urenui

Waitara

! ! Bell Block

New Plymouth

Lepperton

Oakura ! Egmont Village

Whangamomona

! Inglewood

Okato

Midhirst

Rahotu !

Stratford

Kaponga

Eltham

Raetihi

5,630,000

Opunake !

Okaiawa

Normanby !

Manaia

Ohawe

Legend

Hawera !

Patea

Waverley

• Towns D Proprietors of PKW Land D PKW Farm Limited Partnership

Waitotara

hip Limited 1,650,000

1,700,000

GENERAL NOTES 1. Coordinates are in terms of New Zealand Transverse Mercator DISCLAIMER

1,750,000 LOCATION

1,800,000

TARANAKI

PROJECT No.

DRAWN

J. HECHTER

26.08.14

CHECKED

S. COOK

26.08.14

SCALE

1:425,000

TITLE

CORPUS LAND AND

20 17 PARININIHI KI WAITOTARA

INCORPORATION FINANCIAL STATEMENTS for the year ended 30 June 2017

FINANCIAL STATEMENTS - 30 JUNE 2017

Auditor’s report

FINANCIAL STATEMENTS Committee’s annual report for the year ended 30 June 2017

Statement of comprehensive income

Balance sheet

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

1 Corporate information

2 Summary of significant accounting policies

3 Financial risk management

4 Critical accounting estimates and judgements

5 Revenue

6 Other gains / (losses)

7 Expenses

8 Finance income and expenses

9 Income tax expense

10 Māori authority credit account 48

12 Trade and other receivables

12 Biological assets

13 Property, plant and equipment

14 Quota assets

15 Equity accounted investments

16 Investments in subsidiaries

17 Investments

18 Equity instruments

19 Investment properties

20 Borrowings and Unclaimed Dividends

21 Derivative financial instruments

22 Net deferred tax assets / (liabilities)

23 Trade and other payables

24 Share capital

25 Reserves and retained earnings

26 Dividends

27 Contingencies

28 Commitments

29 Related party transactions

30 Subsequent events

31 Statement of estimated current market values

Chartered accountants

Independent auditor’s report to the Shareholders of Parininihi ki Waitotara Incorporation Report on the audit of the financial statements Opinion We have audited the financial statements of Parininihi ki Waitotara Incorporation (the “Incorporation”) and its controlled entities (the “Group”) on pages 34 to 63, which comprise the balance sheet of the Group as at 30 June 2017, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended of the Group, and the notes to the financial statements including a summary of significant accounting policies. In our opinion, the financial statements on pages 34 to 63 present fairly, in all material respects, the financial position of the Group as at 30 June 2017 and its financial performance and cash flows for the year then ended in accordance with New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime. This report is made solely to the Incorporation’s Shareholders as a body. 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 and the Incorporation’s Shareholders as a body, for our audit work, for this report, or for the opinions we have formed.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand). 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 Group 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 we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 interest in, the Group. Partners and employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group.

Information other than the financial statements and auditor’s report Those charged with governance are responsible for the Annual Report, which includes information other than the financial statements and auditor’s report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

A member firm of Ernst & Young Global Limited

PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS

Chartered accountants

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 during the audit, or otherwise appears to be materially misstated.

Those charged with governance responsibilities for the financial statements Those charged with governance are responsible, on behalf of the entity, for the preparation and fair presentation of the financial statements in accordance New Zealand equivalents to International Financial Reporting Standards Reduced Disclosure Regime, and for such internal control as those charged with governance 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, those charged with governance are responsible for assessing on behalf of the entity the Group’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 those charged with governance either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.

Auditor’s 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 International Standards on Auditing (New Zealand) 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 our responsibilities for the audit of the financial statements is located at the External Reporting Board website: https://www.xrb.govt.nz/standards-for-assurancepractitioners/auditors-responsibilities. This description forms part of our auditor’s report.

Report on the other legal and regulatory requirements The financial statements comply with Section 276A(2) of the Te Ture Whenua Maori Act 1993.

Wellington 21 September 2017

COMMITTEE’S ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2017

2017 $'000

REVIEW OF OPERATION Net profit of the Group for the year ended 30 June 2017

36,500

Less provision for dividend

(1,499)

Add retained earnings as at 1 July 2016

176,088

211,089

It is not proposed to make any transfer to reserves. THE STATE OF THE GROUP’S AFFAIRS AT 30 JUNE 2017 WAS: Assets totalled

316,493

THESE WERE FINANCED BY: Shareholder's equity

240,022

Liabilities

76,471

TOTAL EQUITY AND LIABILITIES

316,493

The business of the Incorporation is managing the interests of its Māori shareholders under the Te Ture Whenua Māori Act 1993. The nature of the Incorporation's business has not changed during the year. The financial report was authorised for issue and signed on behalf of the Committee, dated 30 August 2017. For and on behalf of the Committee of Management.

HINERANGI RAUMATI-TU'UA

TAARINGAROA NICHOLAS

Chair

Chair Audit and Risk Committee

30 August 2017

PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

2017 2016 Notes $â&#x20AC;&#x2122;000 $â&#x20AC;&#x2122;000 Revenue

29,796

18,206

Other (losses) / gains

27,229

4,228

Expenses

(16,902)

(16,344)

Finance costs - net

(2,944)

(3,280)

954

1,099

Profit before income tax

38,133

3,909

Income tax expense

(1,633)

(193)

Profit after income tax

36,500

3,716

Share of profit from joint venture

Includes sales mainly relating to milk proceeds, lease income received from our whenua and income from our crayfish Includes gains on the fair value of our whenua

Includes costs mainly relating to farming operations and administration costs of Parininihi ki Waitotara Costs from our financier Rabobank

Our share of Port Nicholson Fisheries LP and Port Nicholson Facilities LP surplus for the year

Other comprehensive income Cash flow hedges

25,(a)

Total comprehensive income for the year

694

(944)

37,194 2,772

For and on behalf of the Committee of Management these financial statements are authorised for issue on 30 August 2017.

HINERANGI RAUMATI-TU'UA Chair 30 August 2017

TAARINGAROA NICHOLAS Chair Audit and Risk Committee 30 August 2017

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

BALANCE SHEET AS AT 30 JUNE 2017

2017 $'000

2016 $'000

7,544 4,335 10,955 22,834

781 1,445 8,299 10,525

76,128 15,620 2,545 19,982 176,994 2,390 293,659 316,493

75,491 15,620 2,650 20,669 151,960 2,125 268,515 279,040

4,424 616 647 5,687

4,082 68 57 597 4,804

20 21 22

68,787 850 1,147 70,784 76,471 240,022

67,189 1,741 979 69,909 74,713 204,327

24 25,(a) 25,(b)

5,549 23,384 211,089 240,022

5,549 22,690 176,088 204,327

Notes Money owed to Parininihi ki Waitotara by our customers Livestock owned by Parininihi ki Waitotara Crayfish quota owned by Parininihi ki Waitotara Investment in Port Nicholson Fisheries LP and Port Nicholson Facilities LP Includes shares in Fonterra and fertiliser companies, and Finistere Venture Capital Fund Accounting value of our whenua tupuna Money owed to our suppliers

Includes borrowings from Rabobank and Unclaimed dividends

Represents unrealised losses on interest rate hedges

The net worth of Parininihi ki Waitotara as measured in the Group financial accounts

ASSETS Current assets Cash and cash equivalents Trade and other receivables Biological assets Total current assets

11 12

Non-current assets Property, plant and equipment 13 Quota assets 14 Investment in joint venture 15 Investments 17, 18 Investment properties - unimproved lease land 19 Investment properties - commercial 19 Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Bank overdraft Current tax payable Derivative financial instruments Total current liabilities Non-current liabilities Borrowings and unclaimed dividends Derivative financial instruments Deferred tax liabilities Total non-current liabilities Total liabilities Net assets EQUITY Share capital Reserves Retained earnings Total equity

The above balance sheet should be read in conjunction with the accompanying notes.

PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Attributable to equity holders of the Incorporation

Balance at 1 July 2015 Profit for the year Cash flow hedges

Total comprehensive income

Dividends provided

Total transactions with owners Balance as at 30 June 2016

Notes

Share capital $'000

Capital reserve $'000

Cash flow hedge reserve $'000

Retained earnings $'000

Total equity $'000

24,591

(957)

173,571

(944)

3,716 3,716

202,754

25,(a)

5,549 -

24,591

(1,901)

(1,199) (1,199) 176,088

(1,199) (1,199) 204,327

5,549 25,(a)

24,591 -

(1,901) 694 694

176,088 36,500 36,500

204,327 36,500 694 37,194

24,591

(1,499) (1,499) 211,089

(1,499) (1,499) 240,022

Balance as at 1 July 2016

Profit for the year Cash flow hedges Total comprehensive income Dividends provided

Total transactions with owners Balance as at 30 June 2017

5,549

The above statement of changes in equity should be read in conjunction with the accompanying notes.

(1,207)

3,716 (944) 2,772

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

Statement of cash flows shows where cash has been paid and received. The statement shown is split in three parts; operational activities, investing activities and financing activities.

2017

2017 $’000

2016 $’000

Cash flows from operating activities Receipts from customers Interest received Income tax received / (paid) Payments to suppliers Payments to employees Interest paid GST paid Net cash inflow from operating activities

25,878 42 (881) (12,146) (2,766) (2,988) (1,273) 5,866

25,665 132 469 (13,256) (3,456) (3,412) (924) 5,217

Cash flows from investing activities Payments for property, plant and equipment Purchases of intangible assets Proceeds from sale of investments Cash from joint venture Net cash inflow / (outflow) from investing activities

(3,568) - 3,075 1,059 566

(3,018) (1,960) 1,254 1,157 (2,567)

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Dividends paid Net cash inflow / (outflow) from financing activities

1,500 - (1,101) 399

11,506 (13,281) (474) (2,249)

Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of year

The above statement of cash flows should be read in conjunction with the accompanying notes.

6,831 401 713 312 7,544 713

PARININIHI KI WAITOTARA INCORPORATION - FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1 CORPORATE INFORMATION Parininihi ki Waitotara Incorporation ('PKW Incorporation') is registered under the Te Ture Whenua MÄ ori Act 1993 and is incorporated in New Zealand. The Parent and its controlled entities are included in the Parininihi ki Waitotara Incorporation Group (the 'Group'). 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation The Group financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand and section 276 of Te Ture Whenua MÄ ori Act 1993. The Group financial statements have been prepared on an historical cost basis except for biological assets, certain investments, investment properties and derivative financial instruments which have been measured at fair value. The information is presented in New Zealand dollars and all values are rounded to the nearest thousand. NZ IFRS - Reduced Disclosure Regime For the purpose of complying with NZ GAAP, the Group is eligible to apply Tier 2 For-Profit Accounting Standards (New Zealand equivalents to International Financial Reporting

Standards - Reduced Disclosure Regime ("NZ IFRS RDR")) on the basis that it is not publically accountable and is not a large for-profit public sector entity. The Group has elected to report in accordance with NZ IFRS RDR and has applied disclosure concessions. The consolidated financial statements of Parininihi ki Waitotara Incorporation comply with New Zealand equivalents to International Financial Reporting Standards - Reduced Disclosure Regime ("NZ IFRS RDR") and other applicable Financial Reporting Standards, as appropriate for profit oriented entities. Entities reporting The consolidated financial statements for the Group include Parininihi ki Waitotara Incorporation and its controlled entities. 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 Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4. (b) New accounting standards and interpretations Changes in accounting policy and disclosure The accounting policies adopted are consistent with those of the previous year.

(c) Principles of consolidation (i) Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Parent and the results of all subsidiaries as at and for the period ended 30 June each year (the Group). Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and affect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a Group controls another entity. The financial statements of the subsidiaries, except for Taranaki Aqua Gardens Limited which has a 31 March balance date, are prepared for the same reporting period as the Parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full. Subsidiaries which form part of the Group are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) of the asset transferred. (ii) Joint ventures - Jointly controlled entities The Group’s investments in joint ventures are accounted for using the equity method in the consolidated financial statements and at cost in the Parent. Under the equity method, investments in joint ventures are carried in the consolidated Balance Sheet at cost plus post-acquisition changes in the Group’s share of net assets of the joint venture. Goodwill relating to a joint venture is included in the carrying amount of the investment and is not amortised. After application of the equity method, the Group determines whether it is necessary to recognise any impairment loss with respect to the Group’s net investment in joint ventures. Goodwill included in the carrying amount of the investment in joint venture is not tested separately; rather the entire carrying amount of the investment is tested for impairment as a single asset. If impairment is recognised, the amount is not allocated to the goodwill of the joint venture. The Group’s share of its joint venture post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movement is recognised in other comprehensive income. The cumulative postacquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from joint ventures are recognised in the Parent entity’s Statement of Comprehensive Income as a component of other income. When the Group’s share of losses

in a joint venture equals or exceeds its interest in the joint venture, including any unsecured long-term receivables and loans, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint venture. (d) Foreign currency translation (i) Functional and presentation currency Both the functional and presentation currency of Parininihi ki Waitotara Incorporation and its New Zealand controlled entities is New Zealand dollars ($). (ii) Transactions and balances Transactions in foreign currencies are initially recorded by applying the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.

Interest income is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is recognised. (f) Income tax The income tax expense charged to the Statement of Comprehensive Income includes both the current year's provision and the income tax effect of: •T axable temporary differences, except those arising from initial recognition of goodwill and other assets that are not depreciated; and •D eductible temporary differences to the extent that it is probable that they will be utilised. Temporary differences arising from transactions, other than business combinations, affecting neither accounting nor taxable profit are ignored. Deferred income tax is not recognised on temporary differences associated with investments in subsidiaries, joint ventures and associates because:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at the date •T he Parent entity is able to control of the initial transaction. Non-monetary the timing of the reversals of the items measured at fair value in a differences; and foreign currency are translated using the exchange rates at the date when •T hey are not expected to reverse in the foreseeable future. the fair value was determined. (e) Revenue recognition Sales of goods are recognised when they have been delivered and accepted by the customer. Rental income is recognised upon issue of invoices that are issued six months in advance. Milk proceeds are recognised in alignment with the processor Fonterra on a dollar per kilogram basis.

Tax effect accounting is applied on a comprehensive basis to all timing differences using the liability method. A deferred tax asset is only recognised to the extent that it is probable there will be future taxable profit to utilise temporary differences. Following the changes to subpart HI of the Income Tax Act 2004, an election was made to become a Māori Authority, for tax purposes, with effect

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) from 1 July 2004. The income tax rate applicable from the date of election was 19% and was reduced in the 2012 tax year to 17.5%. Distributions to Incorporation members are no longer deductible for tax purposes. Any distribution of post 1 July 2004 reserves will include MÄ ori Authority Credits of up to 17.5% of the gross taxable amount in the hands of members. Any distribution of pre 1 July 2004 reserves is tax free in the hands of members. (g) Goods and Services Tax (GST) The profit and loss component of the Statement of Comprehensive Income has been prepared so that all components are stated exclusive of GST. All items in the Balance Sheet are stated net of GST, with the exception of receivables and payables, which include GST invoiced. (h) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted market prices at the balance date. The quoted market price used for financial assets held by the Group is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price. The nominal value less estimated credit adjustments of trade

receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. (i) Impairment

Collectibility of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the assetâ&#x20AC;&#x2122;s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the Statement of Comprehensive Income.

At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable (k) Biological assets amount of the asset is estimated in (i) Valuation of livestock order to determine the extent of the Livestock at balance date includes impairment loss. dairy cattle, beef cattle and sheep If the recoverable amount of a cash and they are valued at a fair value. generating unit is estimated to be less Subsequent fair value changes are than its carrying amount, the carrying recognised in profit or loss. amount of the cash generating unit is (l) Property, plant and equipment reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of Comprehensive Income. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset. The reversal of an impairment loss is recognised immediately in income. (j) Trade and other receivables Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts.

Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the assetâ&#x20AC;&#x2122;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 Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Land is not depreciated. Depreciation on other assets is calculated using the straight-line and diminishing value methods to allocate their cost, revalued or net book value amounts

Subsequent measurement

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(i) Financial assets at fair value through profit or loss

Accounting Rates for Property, Plant and Equipment

Straight Line

Diminishing Value

Buildings

1.03% - 99%

4.1% - 21.05%

Plant and equipment

2.7% - 4%

2% - 67%

Furniture and fittings

10% - 40%

Motor vehicles

8% - 30%

Leasehold improvements

1.01% - 6.66%

5% - 16%

to their residual values over their estimated useful lives, as above: The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount (note 2(i)). Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the Statement of Comprehensive Income. (m) Quota assets

financial assets at fair value through profit or loss, loans and receivables, and financial assets at cost. The classification depends on the purpose for which the assets were acquired. Management determines the classification of its assets at initial recognition and re-evaluates this designation at every reporting date, but there are restrictions on reclassifying to other categories when financial assets are recognised initially, they are measured at fair value, plus in the case of assets not at fair value through profit or loss, directly attributable transactions costs. Recognition and derecognition

All regular purchases and sales of financial assets are recognised The fishing quota is initially recognised on trade date i.e., the date that at cost. The quota is regarded the Group commits to purchase as having an indefinite useful life the asset. Financial assets are because there is no foreseeable derecognised when the right to limit to the period over which they receive cashflows from the financial are expected to be useful. They are assets has expired or when the entity subsequently not amortised, but transfers substantially all the risks tested annually for impairment. and rewards of the financial assets. If the entity neither retains nor transfers (n) Investments and other financial substantially all of the risks and assets rewards, it derecognises the assets if it has transferred control of the assets. The Group classifies its financial assets in the following categories: (i) Fishing quota

This category has two sub categories: financial assets held for trading, and those designated at fair value through profit or loss on initial recognition. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short term or if so designated by Management. The policy of Management is to designate a financial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fair value. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are expected to be realised within 12 months of the balance sheet date. (ii) Loans and receivables Loans and receivables including loan notes are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired. These are included in current assets except for those with maturities greater than 12 months after balance date, which are classified as non-current. (iii) Financial assets at cost Financial assets where a reliable fair value cannot be obtained are recorded at cost.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (o) Investment properties

(q) Borrowings Borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.

Commercial investment property, which includes land and buildings that earn rental income or appreciate in value, are initially measured at cost and subsequently measured at fair value. Gains or losses arising from changes in the fair value of investment All borrowing costs are recognised property are included in the Statement as an expense in the period they are incurred. of Comprehensive Income in the period in which they arise. (r) Derivative financial instruments and hedging activities The fair value of the unimproved leased land is calculated by using a discounted cash flow model. The assumptions of the model are as follows:

The Group uses derivative financial instruments to hedge its risks associated with interest rate fluctuations. Such derivative financial ďż˝ Discount rate of 5.7% (2016: 6.25%); instruments are initially recognised at fair value on the date on which a ďż˝ Cash flows to increase at the rate derivative contract is entered into and of inflation at 2.1% (2016: 2.4%) are subsequently re-measured to fair however is only uplifted every seven value. years into the cash flow periods in line with the rental reset periods determined by legislation; and ďż˝ The time horizon is thirty years (2016: 30 years).

(p) Trade and other payables Trade and other payables are carried at cost and due to their short term nature they are not discounted. They represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative. The fair values of interest rate swaps are determined using a valuation technique based on cash flows discounted to present value using current market interest rates. Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify as cash flow hedges are taken directly to profit or loss for the year. Cash flow hedges are used when they hedge the exposure to variability in cash flows that are attributable either to a particular risk associated with a recognised asset or liability or to a forecast transaction. The Group currently has cash flow hedges

attributable to payment of interest on borrowings. The effective proportion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective portion is recognised in profit or loss. The Group tests each of the designated cash flow hedges for effectiveness on a quarterly basis both retrospectively and prospectively using regression analysis. A minimum of 30 data points is used for regression analysis and if the testing falls within the 80:125 ranges, the hedge is considered highly effective and continues to be designated as a cash flow hedge. At each balance date, the Group measures ineffectiveness using the dollar offset method. For interest rate cash flow hedges, any ineffective portion is taken to other expenses in the Statement of Comprehensive Income. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation as a hedge is revoked (due to it being ineffective), amounts previously accumulated in reserves remain in reserve until the forecast transactions occurs. (s) Share capital Ordinary shares are classified as equity. (t) Dividend distribution 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. Dividend distribution to the shareholders is recognised as

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) a liability in the Group financial statements in the period in which the dividends are approved by the Parent's shareholders.

the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. (i) Group as a lessee

Operating lease payments are recognised as an expense in the (u) Employee benefits Statement of Comprehensive Income on a straight-line basis over the lease (i) Wages and salaries, annual leave term. Operating lease incentives and sick leave are recognised as a liability when The provision for employee received and subsequently reduced entitlements is recognised as a liability by allocating lease payments between rental expense and reduction of the in the Balance Sheet. These benefits liability. include salaries, wages and annual leave. Where the payment is expected (ii) Group as a lessor to exceed 12 months of balance date, the liability is recorded at its Leases in which the Group retains present value. Where the payment is substantially all the risks and benefits expected to be less than 12 months, of ownership of the leased asset are the provision is the amount expected classified as operating leases. Initial to be paid. direct costs incurred in negotiating (v) Leases The determination of whether an arrangement is or contains a lease is based on the substance of

an operating lease are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as rental income.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

3 FINANCIAL RISK MANAGEMENT Financial instruments by category Financial assets as per balance sheet At 30 June 2017 Investments Trade and other receivables Cash and cash equivalents

At 30 June 2016 Investments Trade and other receivables Cash and cash equivalents

Financial liabilities as per balance sheet At 30 June 2017 Borrowings Derivative financial instruments Trade creditors

At 30 June 2016 Borrowings Derivative financial instruments Trade creditors

Assets at fair value through profit or loss $'000

Loans and receivables $'000

Financial assets held at cost $'000

18,974 18,974

4,408 7,544 11,952

1,008 1,008

17,266 17,266

1,509 713 2,222

3,403 3,403

Cash flow hedge $'000

Other financial liabilities measured at amortised cost $'000

(1,497) (1,497)

68,787 54 68,841

(2,338) (2,338)

67,189 853 68,042

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of the financial statements requires the Board and Management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Management has identified the following critical accounting policies for which significant judgments, estimates and assumptions are made. Actual results may differ from these estimates under different assumptions and conditions and may materially affect financial results or the financial position reported in future periods. Further details of the nature of these assumptions and conditions may be found in the relevant notes to the financial statements. (a) Critical accounting estimates and assumptions The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Unimproved lease land Parininihi ki Waitotara recognises unimproved lease land in its Balance

Sheet. The land is valued internally by management using a discounted cash flow model. The discount rate applied in this model is also reviewed by PwC. The cash flow model applies assumptions of a post tax discount rate of 5.7%, 2.1% increment per year but cash flow affected at 7 year intervals. Following the latest rent review process completed in 2017, a number of potential future issues were discovered (such as local council regulations regarding resource consents) which may result in volatility in the future value of the lessor's interest in the unimproved land. (ii) Impairment Finistere investment Management rely on the management team of the Finistere investment to provide accurate and timely financial information to assess the performance of the investment. Impairment is tested as and when the individual stocks of Finistere pass through milestone liquidity positions. The stock is assessed as impaired when the entity does not pass to the next phase of liquidity. (b) Critical judgements in applying the entityâ&#x20AC;&#x2122;s accounting policies

arising from temporary differences in investments, caused principally by

retained earnings held in foreign tax jurisdictions, are recognised unless

repatriation of retained earnings can

be controlled and are not expected to occur in the foreseeable future.

Assumptions about the generation of future taxable profits and

repatriation of retained earnings

depend on Management's estimates of future cash flows. These depend on estimates of future production and sales volumes, operating

costs, restoration costs, capital

expenditure, dividends and other

capital management transactions. Judgements are also required

about the application of income tax legislation. These judgments and

assumptions are subject to risk and

uncertainty, hence there is a possibility that changes in circumstances will

alter expectations, which may impact

the amount of deferred tax assets and deferred tax liabilities recognised in the Balance Sheet and the amount of other tax losses and temporary

differences not yet recognised. In

such circumstances, some or all of

the carrying amounts of recognised deferred tax assets and liabilities

(i) Taxation

may require adjustment, resulting in a

The Group's accounting policy for taxation requires Management's judgement as to the types of arrangements considered to be a tax on income in contrast to an operating cost. Judgement is also required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised in the Balance Sheet. Deferred tax assets, including those arising from un-recouped tax losses and temporary differences, are recognised only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Deferred tax liabilities

Statement of Comprehensive Income.

corresponding credit or charge to the (ii) Operating lease commitments Group as a lessor

The Group has entered into

commercial property leases on its investment property portfolio. The

Group has determined that it retains substantially all the significant risks

and rewards of the ownership of these properties primarily as the lease does not transfer ownership of the asset at the end of the lease term. Thus the Group has classified the leases as operating leases.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

5 REVENUE 2017 $’000

2016 $’000

Rental income Milk proceeds Fisheries lease income Other income

6,739 13,116 2,735 7,206

6,071 6,797 2,456 2,882

29,796 18,206

6 OTHER GAINS / (LOSSES) 2017 $’000

2016 $’000

Fair value gain / (loss) on other financial assets at fair value Gain / (loss) on Finistere Fair value gain / (loss) on investment property Loss on foreign exchange

1,845 670 1,714 (1)

1,731 205 25,299 (6)

27,229 4,228

7 EXPENSES 2017 $’000 Auditors' remuneration Depreciation Employee benefits Farm operating expenses Lease expenses Members fees Other expenses Total expenses

2016 $’000

64 52 1,791 1,659 3,547 3,456 9,094 8,399 463 543 268 295 1,675 1,940 16,902 16,344

8 FINANCE INCOME AND EXPENSES 2017 $’000

2016 $’000

Finance costs Finance income Net finance costs

2,988 (44) 2,944

3,412 (132) 3,280

9 INCOME TAX EXPENSE

2017 $’000

2016 $’000

(a) Income tax expense Current tax: Current tax on profits for the year Adjustments in respect of prior years Deferred tax (benefit) / expense Income tax expense Net gain on revaluation of cash flow hedges Profit from continuing operations before income tax expense Tax at the New Zealand tax rate (i) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Other permanent differences Changes in fair value of investments Over / (under) provided in prior years Income not subject to tax Expenses not deductibe for tax purposes Benefit of resident withholding tax & imputation credits Income tax expense

1,378 309 87 (59) 168 (57) 1,633 193 147 (200) 38,133 6,686

3,909 668

(343) (4,730) 39 (21) 2 -

204 (623) (53) 33 7 (43)

1,633

193

(i) The Group is taxed at the Māori authority tax rate of 17.5% however some subsidiary entities of the parent are taxed at the corporate tax rate of 28%.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

10 MĀORI AUTHORITY CREDIT ACCOUNT

2017 $’000

2016 $’000

Through direct shareholding Through indirect shareholding

6,541 -

5,712 -

11 TRADE AND OTHER RECEIVABLES

2017 $’000

2016 $’000

Accounts receivable Provision for doubtful receivables

4,408 (90) 4,318

1,509 (79) 1,430

Prepayments

17 4,335

15 1,445

12 BIOLOGICAL ASSETS 2017 2016 $’000 $’000 Cattle Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year

8,284 1,829 (462) 1,294 10,945

12,991 7,253 (8,998) (2,962) 8,284

Sheep Balance at the beginning of the year Increase due to purchases Decrease due to sales Changes in fair value Balance at the end of the year Biological assets balance at the end of the year

15 27 1 1 (9) (18) 3 5 10 15 10,955 8,299

2017 Units

2016 Units

1,340 1,070 4,261 862 298 7,831

1,275 1,739 3,508 399 429 7,350

- 90 5 95

69 147 2 218

Quantity of cattle on hand Rising 1 year heifers Rising 2 year heifers Cows Rising 1 year bulls Rising 2 year steers Quantity of sheep on hand Ewe hoggets 5/6 year ewes Breeding rams The Parent engages in sophisticated dairy farm management to preserve the value of stock. Biological assets of the Group comprise dairy cattle, beef cattle and sheep. The inputs applied in the valuation of the Group's biological assets have been categorised as level 2 in the fair value hierarchy.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

12 BIOLOGICAL ASSETS (CONTINUED)

(a) Financial risk management strategies (i) Environmental and climatic risks The Group is exposed to climatic and other environmental risks. The Group's geographic spread of farms allows a degree of mitigation against adverse climatic (eg: drought and flooding) and environmental (eg: disease) effects at a regional level. The Group has environmental practices aimed at compliance with environmental and other laws in New Zealand. (ii) Commodity price risk The Group is exposed to risks arising from fluctuations in the price and sales volume of livestock and dairy produce. (iii) Financing risk The nature of livestock farming means that most of the Group's agricultural revenue is received in the second half of the financial year, whereas financial expenses are incurred throughout the year. The Group manages this risk through budgeting and actively managing working capital requirements, as well as maintaining credit facilities at levels sufficient to meet working capital requirements.

13 PROPERTY, PLANT AND EQUIPMENT Capital

Freehold

At 30 June 2015

Cost Accumulated depreciation Net book amount At 30 June 2016 Cost Accumulated depreciation Net book amount

Furniture &

$'000

Motor

Leasehold

$'000

Total $'000

1,712 (342)

39,087 (620)

78,840 (4,314)

1,370

38,467

74,526

6,782 (2,079)

365 (128)

1,818 (473)

39,670 (953)

81,479 (5,988)

15,551

4,703

237

1,345

38,717

75,491

14,737 32,947 983 -

15,551 139 227 (42) (761)

4,703 (48) 731 (42) (641)

237 10 (38)

1,345 67 (24) (138)

38,717 (33,038) 173 (213)

75,491 2,536 (108) (1,791)

48,667

15,114

4,703

209

1,250

5,639

76,128

(270)

(1)

(15)

100

(157)

546 -

48,667 -

18,092 (2,978)

7,484 (2,781)

375 (166)

1,863 (613)

6,894 (1,255)

83,921 (7,793)

546

48,667

15,114

4,703

209

1,250

5,639

76,128

$'000

land

$'000

Buildings

equipment

362 -

14,737 -

16,602 (1,880)

362

14,737

201 201

Year ended 30 June 2017 Opening net book amount 201 Reclassification Additions 345 Transfers / disposals Depreciation charge (note 7) Closing net book amount 546 Net impact depreciation rate change (a) At 30 June 2017 Cost Accumulated depreciation Net book amount

Plant and

i/ments

WIP

fittings

vehicles

6,197 (1,382)

143 (90)

14,722

4,815

14,737 -

17,906 (2,355)

14,737

$'000

(a) Change in accounting estimate

Following a review of the useful lives and residual values of the Group's assets, the depreciation method and useful

life of certain buildings, plant and equipment, furniture and fittings, motor vehicles and leasehold improvements has changed. The revisions were accounted for as a change in accounting estimates and as a result, the depreciation charge for the current financial year has increased as per the above table. (b) Leasehold improvements

Leasehold improvements are derived from the purchase of improvements to the land by Lessee's.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

14 QUOTA ASSETS

Total $’000

Year ended 30 June 2016 Opening net book amount Additions Accumulated amortisation and impairment Net book amount

13,660 1,960 15,620

At 30 June 2017 Opening net book amount Accumulated amortisation and impairment Net book amount

15,620 15,620

During the 2017 year there were no additions to share quota (2016: $1.96m). There have been no disposals or impairment losses during the year (2016: nil). The fair value of the quota at 30 June 2017 is $38.3m (2016: $42.9m) as supplied by industry specialist Quota Management System Limited.

15 EQUITY ACCOUNTED INVESTMENTS Name of entity

Incorporated in

Equity holding

Port Nicholson Facilities LP New Zealand Port Nicholson Fisheries LP New Zealand The registered office for both Limited Partnerships is 132 Tirangi Road, Rongotai, Wellington 6022.

33% 16%

(a) Joint venture

2017 $’000

2016 $’000

Investment in joint ventures

2,545 2,545

2,650 2,650

(b) Movements in carrying amounts 2017 2016 $’000 $’000 Balance 1 July Share of profit after tax Cash distribution Carrying amount at the end of the financial year

2,650 2,708 954 1,099 (1,059) (1,157) 2,545 2,650

16 INVESTMENTS IN SUBSIDIARIES The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2(c):

Entity name Incorporated in Balance date PKW Farms LP PKWF 2013 Limited Taranaki Aqua Gardens Limited JSP Limited PKW Investments Limited Te Oranga Livestock Limited

New Zealand New Zealand New Zealand New Zealand New Zealand New Zealand

30 June 30 June 31 March 31 March 30 June 30 June

Equity holding 2017 2016 % % 100 100 100 100 100 100

PKW Farms LP is in the business of farming. PKWF 2013 Limited was in the business of farming. The Company ceased trading during 2014 and it is the Parent's intention to have the Company removed from the Companies Register in 2017. Te Oranga Livestock Limited is in the business of livestock trading. JSP Limited is in-active and it is the Parent's intention to have it removed from the Companies Register in 2017. PKW Investments Limited is dormant. Taranaki Aqua Gardens Limited is in-active and it is the Parent's intention to have it removed from the Companies Register in 2017.

100 100 100 100 100 100

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

17 INVESTMENTS

2017 $’000

2016 $’000

Fonterra Finistere (note 18)

18,974 - 18,974

17,266 2,407 19,673

Other financial assets carried at cost

1,008 1,008 19,982

996 996 20,669

Fonterra Co-operative Group Limited is measured at fair value using the listed share price at balance date. Finistere is an unlisted equity instrument. The Finistere investment is recognised at an impaired cost of nil (2016: $2.4m) and is related to an investment of USD $0.2m (2016: USD $1.9m) that was unhedged at 30 June 2017.

18 EQUITY INSTRUMENTS

2017 $’000

2016 $’000

Balance 1 July Add capital contributions Add impairment reversal Deduct investments sold Deduct investment impairment

2,407 - 300 (2,707) - -

3,717 202 (963) (549) 2,407

Finistere investment derecognised: Proceeds from sale Gain on sale

2,679 2,679

2,185 2,185

Finistere

The start up companies in which Finistere invested were private companies and due to their nature were only revalued at different liquidity phases. None of these companies were listed with readily available fair value information. The majority of the fund's investment were with start up ventures in the Medical Devices Industry. The Group relied on the management team of the Venture Capital fund to invest in companies that would provide the Group with a significant return on each investment. This return was realised when the start up companies were acquired by an investor. The fund is in the process of being wound up and there are no investments remaining at 30 June 2017. An amount is held in escrow relating to an investment sold during the year, and any future release of these funds will be based on achievement of milestones. Impairment testing is based on entities within the portfolio meeting liquidity milestones.

INVESTMENT PROPERTIES 19

2017 $â&#x20AC;&#x2122;000

2016 $â&#x20AC;&#x2122;000

Investment properties unimproved land Balance at beginning of year 151,960 150,276 Net gain in fair value 25,034 1,684 176,994 151,960 Commercial property Balance at beginning of year 2,125 2,095 Net gain in fair value 265 30 2,390 2,125 179,384 154,085 The Parent has used a discounted cash flow model to assess the fair value of the lessor's interest in the unimproved land. Refer to significant accounting estimates and assumptions for estimates and assumptions applied in calculating fair value. This valuation is not prepared by an independent valuer. Following the latest rent review process completed in 2017, a number of potential future issues were discovered (such as local council regulations regarding resource consents) which may result in volatility in the future value of the lessor's interest in the unimproved land. Commercial properties are carried at fair value, which have been determined based on valuations performed by Telfer Young as at 30 June 2017. Telfer Young is an industry specialist in valuing these types of commercial properties in the Taranaki region. The fair value represents the amount at which the assets could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arms length transaction at the date of valuation. In determining fair value, the expected net cash flows applicable to each property have been discounted to their present value using a market determined, risk adjusted, discount rate applicable to the respective asset. The inputs applied in the valuation of the Group's investment properties have been categorised as level 3 in the fair value hierarchy.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

BORROWINGS AND UNCLAIMED DIVIDENDS 20

2017 $â&#x20AC;&#x2122;000

2016 $â&#x20AC;&#x2122;000

Rabobank facility 63,766 62,266 Unclaimed dividends 4,112 4,014 Fonterra Shareholder Support Loan 909 909 68,787 67,189 The Group utilises an interest only finance facility of $75.3m (2016: $74m) which includes an undrawn facility of $11.5m (2016: $5m) from Rabobank New Zealand Limited. The $75.3m is split into three facilities ($17.3m, $14m and $45m), which expire between 31 October 2019 and 20 February 2024. The interest charge on the drawn facility is currently at a variable rate based on an agreed margin over the BKBM rate (daily interbank rate). At 30 June that rate approximated 4.23% per annum (2016: 5.82%). The loan fee on the undrawn amount of the facility is 0.25% per annum. The facility is secured by first mortgage over certain leasehold and freehold interest in property, a registered first security agreement over all present and subsequently acquired personal property with a priority sum of $72m and unlimited guarantees from PKW Farms LP, PKW Investments Limited, PKWF 2013 Limited, Taranaki Aqua Gardens Limited and Proprietors of Parininihi ki Waitotara Block. The carrying value of financial assets pledged as collateral as at 30 June 2017 was $131.7m (2016: $132.2m). The Fonterra loan as at 30 June 2017 $0.9m, (2016: $0.9m) was interest free for two seasons, until 31 May 2017. The loan provided by Fonterra Cooperative Support, provided 50 cents for every kgMS produced from 1 June 2015 to 31 December 2015. The production needed to be backed by shares or counting vouchers held at close of business on 30 September 2015. Automatic repayments will commence when the Total Advance Rate Payments exceed $6.00 and will be applied to season-to-date production. The loan was interest free until 31 May 2017, after this Fonterra charged interest at Fonterra's cost of borrowing (up to a maximum of the published wholesale inter-bank rate plus 0.5% per annum).

21 DERIVATIVE FINANCIAL INSTRUMENTS Non-current assets Current liabilities Interest rate swaps Non-current liabilities Interest rate swaps

2017 $â&#x20AC;&#x2122;000

2016 $â&#x20AC;&#x2122;000

(647)

(597)

(850) (1,497)

(1,741) (2,338)

Interest bearing loans to the Group currently bear interest rates between 3.3% and 5.85%. In order to protect against rising interest rates the Group has entered into interest rate swap contracts under which it has a right to pay interest at fixed rates and to receive interest at floating rates. Swaps in place cover approximately 64% (2016: 53%) of the principal outstanding. The fixed interest rates range between 3.37% to 4.8% (2016: 3.58% to 5.85%) and the variable rate ranges from 1.4 to 1.55% above the 90 day bank bill rate, which at balance date was 1.98% (2016: 2.41%). The interest rate swaps require settlement of net interest receivable or payable each 90 days. The settlement dates coincide with the dates on which the interest is payable on the underlying debt. All swaps are matched directly against the appropriate loans and interest expense. They are settled on a net basis. The swaps are measured at fair value and all gains and losses attributable to the hedged risk are recognised in other comprehensive income. Interest expense is recognised in profit or loss. The inputs applied in the valuation of the Group's interest rate swaps have been categorised as level 2 in the fair value hierarchy.

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

22 NET DEFERRED TAX ASSETS / (LIABILITIES) Investment properties $’000

Property, plant and equipment $’000

Livestock $’000

Other $’000

Total $’000

At 1 July 2015 (692) (153) (208) 17 (1,036) Charged / (credited) to the Statement 321 (236) 195 (223) 57 of Comprehensive Income At 30 June 2016 (371) (389) (13) (206) (979) Charged / (credited) to the Statement of Comprehensive Income (4) (69) At 30 June 2017 (375) (458)

24 (119) (168) 11 (325) (1,147)

TRADE AND OTHER PAYABLES 23

2017 $’000

2016 $’000

Trade creditors Other payables Provision for dividend GST payable / (receivable)

54 2,924 1,498 (52) 4,424

853 1,783 1,199 247 4,082

Fair value Due to the short term nature of these payables, their carrying value approximates their fair value.

24 SHARE CAPITAL

2017 Shares

2016 Shares

2017 $’000

2016 $’000

Share authorised, issued and fully paid

1,197,709

5,549

1,197,709

5,549 5,549

25 RESERVES AND RETAINED EARNINGS

2017 $’000

2016 $’000

(a) Reserves Capital reserve Cash flow hedge reserve

24,591 (1,207) 23,384

24,591 (1,901) 22,690

Capital reserve Balance 1 July Charge to other comprehensive income Balance 30 June

24,591 - 24,591

24,591 24,591

Cash flow hedge reserve Balance 1 July Charge to other comprehensive income Balance 30 June

(1,901) 694 (1,207)

(957) (944) (1,901)

Movements:

Capital reserve The capital reserve represents capital contributions that have been recognised and accounted for since establishment of the Incorporation. Cash flow hedge reserve This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge. These amounts retained in the cash flow hedge reserve at 30 June 2017 are expected to mature and affect profit and loss in subsequent financial periods. (b) Retained earnings Movements in retained earnings were as follows:

2017 $’000

2016 $’000

Balance 1 July Net profit for the year Dividends Balance 30 June

176,088 36,500 (1,499) 211,089

173,571 3,716 (1,199) 176,088

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

DIVIDENDS 26

2017 $’000

2016 $’000

Declared and paid during the year: Dividend proposed 2017 $1.25 (2016: $1.00) 1,499 1,499

1,199 1,199

27 CONTINGENCIES (a) Contingent liabilities There were no contingent liabilities as at 30 June 2017 (2016: nil).

28 COMMITMENTS (a) Capital commitments During 2015 the subsidiary PKW Farms LP entered two arrangments to purchase leasehold improvements of $2.4m. The completion of one of those purchases was completed in 2017 and the other is scheduled for payment in June 2018. Other committed capital projects include the effluent upgrade and a new dwelling.

2017 $’000

2016 $’000

Property, plant and equipment 2,200 2,200

2,400 2,400

The above balance has been committed in relation to future expenditure on capital projects. Amounts already spent have been included as work in progress (refer to note 13).

(b) Lease commitments: as lessee (i) Operating leases There were no future minimum rentals payable under non-cancellable operating leases as at 30 June.

2017 $’000

2016 $’000

Within one year Later than one year but not later than five years Later than five years Total

- - - -

61 56 117

29 RELATED PARTY TRANSACTIONS (a) Parent entity During the year, the group charged interest at 0% (2016: 0%) on loans between the Parent and its wholly-owned subsidiaries. Inter-entity transactions were carried out between these loans for internal lease rental charges and daily operations when required. The Parent has an equity interest in Port Nicholson General Partner Limited. Parininihi ki Waitotara Incorporation (the Parent), leased crayfish quota to Port Nicholson General Partner Limited. Claire Nicholson is a director of Sirona Animal Health Limited. During the financial period no products were purchased from Sirona Animal Health Limited (2016: $0.03m). There are no outstanding balances at 30 June 2017, the transactions were underaken on an arms length basis and no balances were written off during the year. During 2017 the Parininihi ki Waitotara Trust has charged interest at 4.78% (2016: 5.59%) and 5.28% (2016: 6.09%) on loans with Parininihi ki Waitotara Incorporation of $1.5m (2016: $1.54m) and $1.53m (2016: $1.54m). No related party debts have been written off or forgiven during the year and all transactions were conducted on an arms length basis. (b) Directors David MacLeod is a director of the Fonterra Co-operative Group Limited. PKW Farms LP independent director Phillip Luscombe is also a director of a former supplier Allied Farmers Limited. Taaringaroa Nicholas, David MacLeod and Claire Nicholson are all committee members and shareholders of Parininihi ki Waitotara Incorporation. (c) Key management and personnel compensation Committee Members and Directors remuneration and value of other benefits received from the Group for the year ended 30 June 2017 were: Parininihi ki Waitotara Director Trust Honoraria fees Daily fees honoraria $’000 $’000 $’000 $’000

Total $’000

2017 Hinerangi Raumati-Tu'ua 60 - - - Taaringaroa Nicholas 30 - - - Hinerangi Edwards 30 - - - Bev Gibson 30 - - - David MacLeod 30 - - - Aisha Ross 29 - - - Claire Nicholson 30 - - - Committee of Management Members fees 239 - - -

60 30 30 30 30 29 30 239

Taaringaroa Nicholas Darryn Ratana Hinerangi Edwards Hinerangi Raumati-Tu'ua Phillip Luscombe Richard Krogh Bev Gibson Other Governance fees Total Group Governance fees

3 4 3 5 20 20 3 58 297

- - - - - - - - 239

3 - - 5 20 20 3 51 51

- 4 - - - - - 4 4

- - 3 - - - - 3 3

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

29 RELATED PARTY TRANSACTIONS (CONTINUED) In August 2015 the Committee of Management undertook a review of the Committee remuneration. As a result of this review the Committee has approved a total remuneration approach to governance fees based on the following: Chairman $60,000 honorarium per annum. Chairs of Audit and Risk Committee, HR Committee and Parininihi ki Waitotara Trust $2,500 honorarium per annum. All other Committee of Management members receive $30,000 honorarium per annum. Independent Directors of Parininihi ki Waitotara subsidiaries receive Director's fees of $20,000 per annum. Committee of Management Members appointed to board of Port Nicholson Fisheries General Partner Ltd receive Director fees of $5,000 per annum. Aisha Ross resigned as a Committee of Management Member from 28 April 2017. (i) Other transactions and balances No other related party balances were written off or forgiven during the year.

30 SUBSEQUENT EVENTS There were no events occurring subsequent to balance date which require adjustment to or disclosure in the financial statements.

31 STATEMENT OF ESTIMATED CURRENT MARKET VALUES AS REQUIRED BY SECTION 276 (4) (C) OF TE TURE WHENUA MĀORI ACT 1993 30 June 2017 $’000 Assets Current assets 22,834 Investments 59,845 Property, plant and equipment 95,333 Investment properties 179,384 357,396 Less liabilities Accounts payable and accruals 4,424 Term loans 63,766 Unclaimed dividends 4,112 72,302 285,094 Schedule of assets Investment properties Unimproved land value 176,994 Powderham Street, New Plymouth 1,550 Queen Street, Waitara 430 Miranda Street, Stratford 410 179,384 Investments Finistere Venture Capital Fund Port Nicholson Fisheries LP / Port Nicholson Facilities LP 2,545 Quota 38,289 Fonterra Co-op Shares 18,974 Mangaoapa Forest Partnership 37 59,845

PARININIHI KI WAITOTARA INCORPORATION - NOTES TO THE FINANCIAL STATEMENTS

TR64

“Mā te pukumahi, mā te awhi me te manaaki, ka mīharo ngā mea ka āhei i te tangata te whakatutuki...”

HE ORANGA HEPARININIHI ORANGA KI PARININIHI WAITOTARA KI WAITOTARA TRUST - TE PŪRONGO TRUST - CHAIR'S A TE HEAMANA REPORT

TR65

PARININIHI KI WAITOTARA TRUST

TE PŪRONGO A TE HEAMANA HINERANGI EDWARDS

$386

THOUSAND TOTAL TRUST INCOME

Tēnā koutou katoa

KO TĀ TE TARATI O PKW WHAKATAKANGA – TE TAUNAKI PITO MATA

Nōku te hōnore ki te whakatakoto pūrongo mō ngā mahi a te Tarati i te tau 2016-2017. Ka ū tonu te Tarati ki te tautoko i ngā kaiwhaipānga, i ō rātou whānau me te hapori Taranaki Māori whānui. I tēnei tau ka arotake tonu ki te tautoko i ngā wawata ā-mātauranga, ā-ahurea hoki o ngā Māori o Taranaki, me te whanake i ngā hononga hou ki te whakanui i tō tātou pānga mātauranga.

Kia kaua tātou e whakaiti i te hiranga o te poipoi, o te whakangao ki ngā uri o Taranaki, ā, ka whakahī mātou ki te whakaatu i te kōrero mō te kaiwhiwhi ki te Pūtea Charles Bailey, mō Aroha Anderson (nō Te Ātiawa) me tōna haerenga puta ai ia i te Whare Wānanga o Waikato. Kua whakaaweawetia e Aroha te hapori o te moutere o Matakana, arā, ko te kāinga o tōna tāne. Kei te tiaki rāua i te whenua, kei te whakatū mahi mā te whānau, ā, ka whakamahia ēnei pūkenga hei āwhina atu i te arotake me te whakahou a PKW i tā tātou aronga whakatō tupu ki ngā tahataha manga. Mātaki tonu mai...

Ka tautoko tonu te Kōporeihana o PKW i te Tarati mā te pūtea ā-tau, ā, he mea hiranga tēnei. I tēnei tau, hui katoa ka $225,000 (Tau Pūtea 15/16: $120,000) ngā moni ka tukuna e te Kōporeihana me ētehi atu rōpū ki te tapeketanga pūtea ka $386,000 (TP 15/16: 313,000). I whakangao te Tarati i te $234,000 (TP 15/16: $227,000) ki te hapori Taranaki Māori mā ngā pūtea mō te mātauranga, mō te whakangungu, me te hapori hoki.

Mā te pukumahi, mā te awhi me te manaaki, ka mīharo ngā mea ka āhei i te tangata te tutuki, ā, ka whakaohoohotia tātou e ngā mahi ka āhei i a Aroha te whakatutuki haere ake nei. Kei te whārangi 68 o te pūrongo ā-tau te roanga o te kōrero mō Aroha.

TR66

2017 INCOME

2017 ASSETS

$386,000 2016 INCOME

$313,000

NGĀ PŪTEA MĀTAURANGA ME NGĀ KARAHIPI MĀTAURANGA MATUA He nui noa atu ngā tono i tae mai ki te Tarati o PKW i tēnei tāu, ā, ka tautoko i ngā tauira 197 (TP:15/16: 175) ki ā rātou ako kura tuarua, mātauranga matua hoki. Ka $199,000 te whakangao (TP15/16: 159,000) arā, ka $40,000 nui atu i te tau i mua. Ka tae atu tēnei whakangao ki ngā kaiwhiwhi karahipi tau maha i whakaaetia ai ngā whakawhiwhinga pūtea i ngā tau o mua, ā, i utua i tēnei tau pūtea.

2017 GRANTS PAID

$3.257M 2016 ASSETS

$3.115M

He nui tonu, arā, ka 90% (TP 15/16: 92%) o ngā kaitono he uri nā ngā kaiwhaipānga. He tohu tēnei o te tautoko a ngā kaiwhaipānga i te kaupapa pūtea ka taunakina ai ngā uri o Taranaki.

$234,000 2016 GRANTS PAID

$227,000

i te mātauranga whakangao me te mātauranga pūtea ahuwhenua. He mea whakangao nui atu ngā pūtea mātauranga me ngā pūtea mātauranga matua, ā, mā te tautoko i ngā kaitono whai angitu 197 ka taea e te Tarati ngā whānau kaiwhaipānga o ngā kaitono te tautoko.

I tēnei tau pūtea i uru te Tarati me Ballance Agri-Nutrients ki tētehi rangapū karahipi hou. Ka waihanga te rangapū i ngā karahipi tohu paetahi hou e rua. Ka $2500 te wāriu o ia karahipi ka tautoko i ngā Māori o Taranaki e whai mātauranga PŪTEA HAPORI ana ki ngā kaupapa e hāngai ana ki ngā moemoeā o ngā hinonga e rua. Ko ngā marae, ko te reo Māori me te mātauranga ngā tino whāinga o Ka whai ngā kaiwhiwhi o tēnei tau

ngā pūtea hapori a te Tarati. I tēnei tau ka tuku te Tarati i ngā pūtea hapori e rima, ā, e toru o aua pūtea ka tautoko i ētehi marae o Taranaki. Hui katoa ka $35,000 te pūtea i tukuna, ā, he iti iho i te pūtea i te tau i mua (2015/16: 465,000). I katia e te Tarati ētehi pūtea hākinakina, ahurea hoki. I aro kē ki te tikanga whakawhāiti i āna tāpaetanga.

KA PANONIHIA TE PUKA TARATI Ka whai mana ngā ture hou, ā, i whakamahia ēnei i te kōwhiringa a ngā kaiwhaipānga i tō rātou māngai mō ngā tau e toru, kaua mō te tau kotahi noa iho. Nā tēnei, ka ōrite te

roa ki ō ngā Tarahitī katoa. Nō reira, kua kore te kōwhiringa i tēnei tau.

TE TITIRO WHAKAMUA

kaupapa me te mahi o te Tarati, e mahi tahi ai ki te taha o hinonga kē hei painga mā ngā uri o Taranaki. Mā te whakarongo me te whakatakoto rautaki ka āhei ai i te Tarati te kite matea waiwai kei te ara whakamua, ā, ka whakataungia ai te mahi hei mahi haere ake nei.

Kua tae ki tētehi wā whakahirahira mō te Tarati, i tōna ara 34 tau te roa, ā, ka rangahau ngā Tarahitī ka pēhea te whai hua whai take ki ngā kaiwhaipānga me ngā Hinerangi Edwards Kaiwhaipānga Taranaki Māori. Ka Heamana āwhina ngā kaiwhaipānga mā te whakaoti i te uiuitanga kaiwhaipānga e kati ai ā te 22 o Hakihea 2017.

Ngã mihi

Ka tū a Taranaki hei rohe whakatutuki tono kerēme, ā, kua whakatau ngā Tarahitī i tētehi mahere ā-tau e arotakengia ai te

HE ORANGA HEPARININIHI ORANGA KI PARININIHI WAITOTARA KI WAITOTARA TRUST - TE PŪRONGO TRUST - CHAIR'S A TE HEAMANA REPORT

TR67

"With hard work, a little awhi and manaakitanga, itâ&#x20AC;&#x2122;s amazing what people can achieve..."

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

PARININIHI KI WAITOTARA TRUST

CHAIR’S REPORT

$386

HINERANGI EDWARDS

THOUSAND

HE ORANGA

TOTAL TRUST INCOME

Tēnā koutou katoa Each year I have the privilege to report on the Trust’s activities for the 2016/17 financial year. The PKW Trust remains committed to support PKW Shareholders, their whānau and the wider Taranaki Māori community. This year our focus remains stable in supporting the education and cultural aspirations of Taranaki Māori, and developing new relationships to extend our education reach.

PKW TRUST MISSION – SEEDING POTENTIAL

We cannot underestimate how important it is to nurture and invest in Taranaki uri and we are proud to share the story of 2012 Charles Bailey Scholar, Aroha Anderson (Te Atiawa) and her journey since graduating from Waikato University. Aroha is having a real impact in the Matakana Island community, the home of her tāne. Together they are revitalising the whenua, creating The PKW Incorporation continues to employment for the whānau and play an important role by supporting are now utilising these skills to help the Trust with an annual grant. PKW review and renew our riparian This year total grants from the planting approach. Watch this Incorporation and other third parties space. of $225,000 (FY 15/16: $120,000) were made that contributed to the With hard work, a little awhi and Trusts total income of $386,000 manaakitanga, it’s amazing what (FY 15/16: $313,000). The Trust people can achieve and we are reinvested $234,000 (FY15/16: inspired about what Aroha can $227,000) back into the Taranaki achieve in the future. Aroha’s full Māori community through education, story is on page 68 of the annual training and community grants. report.

2017 INCOME

2017 ASSETS

$386,000 2016 INCOME

$313,000

EDUCATION GRANTS AND TERTIARY SCHOLARSHIPS This year the PKW Trust received a record number of applications and supported 197 students (FY15/16: 175) with their secondary and

tertiary level studies. This was a $199,000 investment (FY:15/16: $159,000) which is a $40,000

increase from the year before. This investment includes multi-year

scholarship recipients whose award was approved in the previous years and paid for in this financial year.

2017 GRANTS PAID

$3.257M 2016 ASSETS

$3.115M

The number of applicants who are direct descendants of a PKW shareholder remains high at 90% (FY15/16: 92%) indicating that shareholders support the grants programme, which in turn supports Taranaki uri. During this financial year the Trust entered into a new scholarship partnership with Ballance AgriNutrients. The partnership creates two undergraduate level scholarships valued at $2,500 each that supports Taranaki Māori studying in areas that align to both

$234,000 2016 GRANTS PAID

$227,000

organisations' vision. This year’s recipients are studying in the investment and agri-finance areas. Education and tertiary grants continue to be the Trust's biggest investment and supporting the 197 successful applicants allows the Trust to support their whānau who are shareholder families.

COMMUNITY GRANTS Marae, te reo Māori and education remain the priorities for the Trust’s

trustees. Therefore, there is no election this year.

LOOKING AHEAD

PKW TRUST DEED AMENDED

The Trust has reached a critical point in its 34 year journey, and the trustees are investigating how it can create meaningful benefits to PKW shareholders and Taranaki MÄ ori. Shareholders can help by completing the shareholder survey that closes on 22 December 2017.

The new rules are now in place and this was exercised when shareholders elected their shareholder representative for three years instead of one. The term is now consistent with all other

The Taranaki region is becoming a post settlement region and the trustees have approved an annual plan to review the purpose and role of the Trust, to work alongside iwi and other organisations for the

benefit of Taranaki uri. By listening and strategising, the Trust will be able to identify any crucial gaps in the future landscape to determine the role it will perform going forward.

NgĂŁ mihi Hinerangi Edwards

Chair

HE ORANGA

community grants. This year the Trust awarded five community grants and three of these went to support Taranaki marae. The total amount awarded was $35,000 which is less than the previous year (2015/16: $65,000). The Trust discontinued some sporting and cultural grants, choosing instead to look at ways to refocus its offerings.

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

He whakatō, he kākano, he puāwai. Seeding potential. Seeding potential is the mission of the PKW Trust and supporting the education aspirations of Taranaki Māori is a worthy investment. One of those investees returned to PKW in April 2017, when Aroha Armstrong and her tāne Jason Murray met with the Committee of Management the day before the PKW half yearly hui with shareholders. Learning that she received the Charles Bailey Scholarship 17 years ago, PKW Trust Chair Hinerangi Edwards invited Aroha to speak to the shareholders, telling her story about how the PKW Trust's investment has borne fruits for Māori.

Ko Taranaki te Maunga Ko Te Ataiwa te Iwi Ko Ngāti Te Whiti, Pukerangiora, Puketapu ngā Hapu Ko Bill Walker rāua ko Nancy Broughton ōku kaumātua Ko Aroha Armstrong tōku ingoa Tēnā koutou kātoa

After both graduated from Waikato, she remembers whānau asking why they didn’t go overseas to make “lots of money”, to which they replied, “we wanted to come home and do something here.” And they did.

"... when the PKW Trust awarded Aroha the Charles Bailey Scholarship 17 years ago, no one would have predicted what she and Jason would be capable of achieving together."

margins are an extremely important ecosystem in Aotearoa, they act as the kidneys of the whenua, The island’s major employer, the filtering all the water and run-off timber mill, had closed down and from the whenua before it enters people were leaving to find work the moana, improving water quality elsewhere. Aroha and Jason knew and reducing flooding. These areas they wanted to live on the island so have traditionally provided our went about making this a reality. Maori people with an abundance of resources and kai. As we have They saw the beauty that was lost 90% of our wetlands it is of Matakana, surrounded by moana paramount importance that we and fresh water springs, but a protect, restore and enhance these landscape that had been marred by unique ecosystems. This was their the unsustainable land practices of next challenge and again they the time period. The island once had turned to Ngā Whenua Rahui who an ancient kauri forest, so they knew supported them to set up a small the whenua was rich in nutrients. nursery in their backyard.

Their vision is to protect, restore and enhance the biodiversity of Matakana Island, while creating employment and education opportunities for the whānau. 'Mana whenua, mana moana, mana tangata’. “Nurseries don’t make a lot of money, but it makes enough to employ our whānau so they can stay on the island to help make this vision a reality”.

They learned about Ngā Whenua Rahui, specifically the Matauranga Kura Taiao fund. Ngā Whenua Rahui is administered by the Department of Conservation to assist Māori land owners to care for the whenua both environmentally and culturally. The aim of Matauranga Kura Taiao was the collection of traditional knowledge that was still held by kaumātua to ensure it passed onto the next generation.

Whānau want to come home, but there are no jobs. “We have to create the industries and to do this we are looking at forming a co-op for whānau to grow kai on their land with our unique island branding – our dream is to be a self-sufficient island.”

Aroha and Jason were able to employ two whānau members to interview the kaumātua, have wānanga and compile the stories about their lives growing up on the island like where they went to collect kaimoana, ferment rotten corn and find the natural dyes for weaving. The kind of stories that told them what their traditional places and practices used to be and what they could be again. This was a two-year project and today the hapū have a body of knowledge and the cultural reasons why they should restore the wetlands and native ngāhere. Wetlands and streamside riparian

“I didn’t want to go back to school, so I volunteered at a Tauranga nursery for three days a week” said Aroha. "As our nursery grew, more whānau got involved and we restored a swamp and wetland on a whānau farm. That project brought the whānau back to the island and together we replanted the whenua and shared the stories we had collected two years before. “It brought the whānau back to the whenua, reconnected with the whenua and with each other”. Other land owners saw what they were doing and became involved as well. The nursery grew even more and they leased a paddock from their kura to set up the nursery next to the tamariki. They were also able to employ whānau on the island. “We now have a beautiful nursery that employs eight people. We also employ another 10 whānau for fencing, planting and weed control and in a small community of 180, this makes a significant impact”.

Twelve years of hardwork later, the Trust has built up a small pūtea and are looking to diversify, so even more jobs will be created and whānau can return to Matakana.

The future certainly looks brighter for the people of Matakana Island and when the PKW Trust awarded Aroha the Charles Bailey Scholarship 17 years ago, no one would have predicted what she and Jason would be capable of achieving together. Supporting just one student has led to the creation of 18 jobs and the restoration of mana whenua, mana moana, mana tangata on Matakana Island. At the conclusion of Aroha’s korero, Hinerangi Edwards thanked the people of Tauranga Moana for adding to Aroha’s kete, while Taranaki maunga eagerly awaits her return.

HE ORANGA

After Aroha completed her Bachelor degree at Waikato where she majored in Māori and Geography she followed Jason to his home, Matakana Island in Tauranga Moana.

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

NGĀ KAIWHIWHI TAUTOKO SCHOLARSHIPS AND GRANTS

CHARLES BAILEY POSTGRADUATE SCHOLARSHIP Recipient

Year

Qualification

Aaria Dobson Waitere

2016

Master of Conservation Science Orangipeka Whānau Trust

Bernard O'Donnell

2015

Postgraduate Diploma in Business Kura Ratapu

Janine Maruera

2017

Shareholder Support

Masters of Indigenous Studies Arthur Rangi

MATEKITAWHITI CARR POSTGRADUATE SCHOLARSHIP Recipient

Year

Qualification

Shareholder Support

Cereace Wallace 2017 Graduate Certificate in Arts (Applied)

Patrick Rangihaeata

Kim Modlick 2016 Master of Indigenous Studies

Mahanakiterangi Manuirirangi Turake

EDWARD TAMATI POSTGRADUATE SCHOLARSHIP Recipient

Year

Jamie Bodger 2017

Qualification

Postgraduate Diploma in Teaching

Shareholder Support

Mary Elizabeth Graham

GLORIA KEREHOMA POSTGRADUATE SCHOLARSHIP Recipient

Year

Qualification

Masters in Education

John Hooker

Benjamin Snooks

2016

Master of Interior Architecture

Charlie Snooks

Joeliee Seed Pihama

2015

PhD

Rongomai Wharehoka

Elizabeth Hooker

2017

Shareholder Support

Recipient

Year

Qualification

Shareholder Support

Moesha Katene

2017

Diploma in Graphic Design

Frances Kingi-Katene

Natasha Hutchieson

2017

Bachelor of Midwifery

Patsy Bannan

Taine Win

2017

Bachelor of Science

Malcolm Win

Tania Gilbert-Kennedy

2017

Bachelor of Social Services

Urutaahua Gilbert (Kiingi)

Manuirirangi Edwards 2017

Bachelor of Arts / Bachelor of Business Studies

Tehinganga Betty McLean

Anaru Adams 2016 Bachelor of Social Sciences/Law Werenia Papakura Whānau Trust Dion Luke 2016

Bachelor of Environmental Management

Hina Lucy Luke

Kahumaiki Lacey-Brooks

2016

Bachelor of Dental Survery

Marylinda Brooks

Oriwa Hohaia

2016

Bachelor of Laws/Māori

Enid Hohaia

Te Hiraka Chase

2016

Bachelor of Physical Education David Rawiri Mako

Courtney Hook

2015

Bachelor of Commerce

Jay Short

2015

Bachelor of Architectural Studies Diane Roka Short

Piko Hook

PKW-BALLANCE UNDERGRADUATE SCHOLARSHIP RECIPIENTS Recipient

Year

Qualification

Shareholder Support

Rerewha i te rangi Pita

2017

Bachelor of Business Analysis

June Jackson

Daniel Brooks

2017

Bachelor of Business Studies

David Nicel Macleod

HE ORANGA

UNDERGRADUATE SCHOLARSHIP

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS

TERTIARY GRANTS Recipient

Qualification

Shareholder Support

Aaron McGregor

Certificate in Employment Skills for Sport and Recreation

Raupo McGregor Whānau Trust

Abbey Urwin

Bachelor of Medicine and Bachelor of Surgery

Mereaina Noreen Kirkwood

Aaliyah Thocolich

Bachelor of Science/Bachelor of Sport and Leisure Studies

Irene Thocolich

Alexandra Tahau Bachelor of Commerce

Reiwyn Kaniehana Davey (Hohaia) Whānau Trust

Alexandra Morris

Bachelor of Medicine and Bachelor of Surgery

Parawai Mokopuna Whānau Trust

Alicia King

Bachelor of Education

Bernard Joseph King

Alison Brooks

Bachelor of Science/Bachelor of Laws

Gloria Jean Kerehoma

Amber Te Awhe

Poutuarongo Whakaakoranga

Te Awhe Whānau Trust

Ana Turner

Diploma in Hospitality Management

William Tihoi Maha

Anahera Faith Sheehy

Bachelor of Health Science (Occupational Therapy)

Mahiao Whānau Trust

Andrea Ratahi Clarke

Bachelor of Maori Visual Arts - Maunga Kura Toi

Juanita Ngauta Bishop Whānau Trust

Aparangi Hemara

Certificate in Process Operations (Oil and Gas)

Te Atiawa

Aria Nicholls

Bachelor of Medicine and Bachelor of Surgery

Darryl Nicholls

Ariana Osborne

Bachelor of Performing Arts (Acting)

Donald Philip Tuuta

Ariana Cann

Bachelor of Science

Kenneth Royce Tohia

Aroha Broughton

Bachelor of Education

Poi Pue Estate

Asher Katene

Bachelor of Arts

Mahanakiterangi Manu Taruke

Ashleigh Tito-Collins

Certificate in Employment Skills for Sport and Recreation

Rex Bruce Langton

Recipient

Qualification

Shareholder Support

Atalya Loveridge

Bachelor of Performing and Screen Arts

Rosalie Mae Rangi

Barbara Murdoch

Master of Business Administration Whānau Trust

Haami Tumango me Takatu Terei

Bianca Kumeroa

Bachelor of Education (Early Childhood Education)

Riwai Maurice Hina

Bobby Luke

Doctor of Design

Robert Campbell Luke

Bonita Bigham

Master of Fine Arts

Hinewaito Bigham

Bree-Anna Langton

Bachelor of Medicine and Bachelor of Surgery

Rex Bruce Langton

Brianna Jones

Master of Business

Gareth Tamihana Jones

Brooke Wynyard

Bachelor of Science

May Edmonds

Bryda Chamberlain

Bachelor of Laws

Rosalie Mae Rangi

Cade Wharepouri

Bachelor of Business Management

Kevin Wharepouri

Cameron Alanotama

Bachelor of Engineering/Bachelor of Science

Robert Haddon Otene

Cameron Ogier

Diploma in Aeronautical Maintenance Certification

Patricia Jill Affleck

Casey Rei

Bachelor of Arts/Bachelor of Laws

Lynne Rei

Catherine Kennedy

Bachelor of Social Services

Urutaahua Gilbert

Celecia Katene

Bachelor of Nursing

Mihipeka Katene

Celeste Mclean

Bachelor of Education (Teaching) Primary Dallas McLean

Chelsea Rennie

Te Ara Tuarua Mo Te Reo Māori

Henare Ngaia

Chelsea Bishop

Certificate in Cookery

Juanita Ngauta Bishop Whānau Trust

Chiquita Ngeru

Bachelor of Social Sciences

Eddie Lee Ngeru

Connor Hobbs

Bachelor of Engineering with Honours

Dorothy Hobbs

Connor Otene

Bachelor of Science

Robert Hadon Otene

Ashley Stern

Bachelor of Science

Joanne Stern

Cory Miles Master of Natural Sciences

Ngarati and Rangi Kotuku Rukuwai Whānau Trust

Courtney Ngaia Bachelor of Sport and Leisure Studies

Te Whiti o Rongomai Patrick Mason

Courtney Sullivan

Bachelor of Medicine and Bachelor of Surgery

Michael Sullivan

Daniel Fake

Bachelor of Health Science (Physiotherapy)

Graham & Monica King Whānau Trust

Danyon Doeg

Bachelor of Social Sciences

Roberta Walden

Dayna Ruihi Ellen Diploma in Health Science Bailey-Stevenson

Heemi Wiripo Ngaiwikatea Bailey-Stevenson Whānau Trust

Daysha Tonumaipea

Master of Business

Gareth Tamihana Jones

Dillon Manuirirangi

Bachelor of Medicine and Bachelor of Surgery

Tongawhiti Manu

DJ Edwin

Diploma in Aviation

Robyn Cecelia Edwin

Drew Davey

Certificate in Health Sciences (Pre-Entry)

Caroline Beverley Davey

Dylan Wairahi Roach

National Certificate in Mechanical Engineering

Bryan Wynyard Roach

Elijah Griffiths

Bachelor of Engineering with Honours

Rose Denness

Emerson Watson

Bachelor of Information Technology

Rosalie Mae Rangi

HE ORANGA

TERTIARY GRANTS (CONTINUED)

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS

TERTIARY GRANTS (CONTINUED) Recipient

Qualification

Shareholder Support

Erana Edwards

Bachelor of Sport

Tehinganga Betty McLean

Erin Tamou

Conjoint: Bachelor of Arts /Bachelor of Laws

Daphne Tamou

Fiona Barriball

Bachelor of Midwifery

Fiona Barribal

Haarangi Harrison Patuwairua

Bachelor of Health Science (Physiotherapy)

Haarangi and Manaia Harrison Whānau Trust

Hana Paranihi

Bachelor of Information Technology

Allan Ngātiki Paranihi

Heemi McDonald

Master of Education

Tahupotiki Rawiri

Emire Khan-Malak

Bachelor of Mathematical Sciences

Nanny Rubys Whānau Trust

Hemi Rei Diploma in IT Support

Clinton Te Iwikahu Rei Whānau Trust

Hope Tioro

Bachelor of Applied Social Sciences

Sonia Marama Billy Tioro

Huia Brady

Bachelor of Nursing

Debbie Aylward

Huingangutu Whaanga

Bachelor of Arts (Maori)

Jason Wineeral

Ihaia Ngata

Bachelor of Design with Honours

Herewini Muturangi Ngata

Jack Harvey

Master of Business Studies

Elaine Rahera Carr Harvey

Jack Obrien

Bachelor of Health Sciences

Robert O'Brien

Jack Neutze

Bachelor of Commerce

Alison Ann Sargent

Jacob McGregor

Bachelor of Arts

Patrick Ngauru McGregor

Jade Sewell Bachelor of Science

Hinepounamu Ngatai Tangirua

Janelle Gray

Bachelor of Arts / Bachelor of Business Studies (Conjoint)

Jock and Marina Cashell Whānau Trust

Jasmaine Ruaka Martin-Kemp

Bachelor of Health Science (Medical Imaging)

Charmaine Horiwia Puru

Jay Short

Master of Architecture (Professional)

Dianne Roka Short

Jazmine Tamaiparea

Bachelor of Design Innovation

Mary Holly Tamaiparea

Jessica Jack Doctor of Philosophy (Music)

Edward Rongomai Ira Tamati Whānau Trust

Joel Taylor Rudolph Master of Fine Arts

Tuahine Ma Pikihuia Rudolph Rurawhe

Jordan King

Bachelor of Communication

Charles Dennis King

Joshua Solomon

Bachelor of Biomedical Sciences

Hinewaito Bigham

Recipient

Qualification

Shareholder Support

Kandi Hoeta - Karaitiana

Bachelor of Information Technology

Charmaine Hoeta

Karamea Ratana

Bachelor of Health Sciences

Meteria Ratana

Karena Butler

Bachelor of Nursing

Rangiwahia Tohia Wh훮nau Trust

Kate Dooney

Bachelor of Teaching

Patricia Jill Affleck

Katie Scorringe

Bachelor of Medicine and Bachelor of Surgery

Gary Scorringe

Katrina Tarawhiti Hape

Diploma in Enrolled Nursing

Fred Pau Tapara

Keanu Piki

Bachelor of Mathematical Sciences

Maria Piki

Kellee Moore

Bachelor of Midwifery

Wilson Michael Korau

Kenny Hau

Bachelor of Medicine and Bachelor of Surgery

Kenneth Mark Hau

Kerehama Waru Te Puu

Bachelor of Creative Technologies

Pamela Te Urumairangi Ritai

Kerry Feather

Bachelor of Teaching and Learning (Early Childhood)

Gary Scorringe

Kiri Nowakowsky

Diploma in Applied Science

Moana Ian Lockett

Kylee Osborne

Poutuarongo Kawa Oranga

Donald Philip Tuuta

Kylie Rei

Bachelor of Creative Technologies

Spencer Rehua Rei

Kylie Hough

Bachelor of Nursing

Theodore Hough

Lania Orr

Bachelor of Nursing

Te Ahurei Te Pirihira Wh훮nau Trust

Layla Rask

Bachelor of Education (Teaching) Primary

Rask Wh훮nau Trust

Leah Palmer

Bachelor of Health Science (Occupational Therapy)

Charles Pears Palmer

Leilani Fonotoe

Bachelor of Nursing

Sonny Manuao Werahiko Tamou

Lena Kemp

Bachelor of Health Science

Jan Hariata Bezems

Liam Chamberlain

Bachelor of Applied Hospitality and Tourism Management

Rosalie Mae Rangi

Liam Chamberlain

Conjoint: Bachelor of Arts /Bachelor of Laws

Rosalie Mae Rangi

LillyDonnelly

Bachelor of Science with Honours

Samuel Wallis Kahui

Linda Elgar

Te Tohu Mohiotanga (Diploma in M훮ori Language)

Mum's Mob Trust

Kamaline Pomare

Master of Indigenous Studies

Kathleen Pomare

HE ORANGA

TERTIARY GRANTS (CONTINUED)

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS

TERTIARY GRANTS (CONTINUED) Recipient

Qualification

Shareholder Support

Lori King

National Certificate in Reo Maori

Bernard Joseph King

Louise Jansen

Bachelor of Health Science (Physiotherapy)

Anthony Broughton

Luanne Ranui

Bachelor of Human Services

Luanne Ranui

Luke Abbott

Bachelor of Applied Arts

Vernon Arthur Rangi

Maioha Kara

Bachelor of Fine Arts with Honours

Esther Tauri

Mako Osborne

Bachelor of Commerce

Donald Philip Tuuta

Maraekura Horsfall

Postgraduate Certificate in Clinical Education

Lorna Tawhakirangi Tutahione Katene

Mary Graham

Certificate in Business Administration L4

Mary Elizabeth Graham

Mary Jones

Master of MÄ ori and Pacific Development

Mary Te Kuini Jones

Matt Nicholson

Bachelor of Commerce

Claire Nicholson

Matthew Brownbridge

Bachelor of Medicine and Bachelor of Surgery

Marie Hiroti

McKenzie Richardson

Bachelor of Applied Management

Walter Henry Richardson

Megan Maria Hancock

Bachelor of Business Analysis

Delwyn Hancock

Melissa Denham

Bachelor of Education (Teaching) Primary

Diane Ratahi

Mitchell Langton

Bachelor of Applied Science

Rex Bruce Langton

Mizsiah Martin-Kemp

National Diploma in Hospitality (Management)

Sol O'Carroll

Moerangi Tamati

Bachelor of Medicine and Bachelor of Surgery

Aroaro Tamati

Monteil Jones

Bachelor of Communication Studies

Gareth Tamihana Jones

Morgan Watt

Bachelor of Applied Social Sciences

Vernon Arthur Rangi

Natalia Hunt

Bachelor of Pharmacy

Brian Norman Hunt

Nicole Loper

Bachelor of Medicine and Bachelor of Surgery

Clesta Benita Loper

Noah Kemp

Bachelor of Laws

Jan Hariata Bezems

Portia Harimate Telford

Diploma in Fine Arts

Te Rau Aroha Watene

Linda Waru-Lackner

Poutuarongo Whakaakoranga

Hemi Haddon

Rangiwahia Karym Wano-Tohia Bachelor of Education (Teaching) Primary

Kenneth Royce Tohia

Raukura Doyle

Betty Anderson

Bachelor of Health Sciences

Recipient

Qualification

Shareholder Support

Renee Waiwiri

Bachelor of Design Innovation

Maureen May Collis

Renee Wharepapa

Bachelor of Arts

Hayden Te Ruki

Reuben Katene

Bachelor of Medicine and Bachelor of Surgery

Hinewaito Bigham

Reuben Aubrey

Bachelor of Medicine and Bachelor of Surgery

Rangi Goffe

Rhys Muru-King

Bachelor of Fashion

Bernard King

Rhys Dooney

Bachelor of Science

Patricia Jill Affleck

Rimu Barriball

Bachelor of Science

Wayne Barriball

Ripeka Kerenapu Kennedy

Bachelor of Social Work

Urutaahua Gilbert

Riria Vella

Bachelor of Science

John Rei

Sarah King

Bachelor of Social Sciences

Monica Green

Sarah Lowe

Certificate in Business Administration L4

Neville Tito

Sarika Rona

Postgraduate Diploma in Educational Psychology

Joseph Rona

Shaun Loper

Bachelor of Business Studies

Clesta Benita Loper

Simon Rangiwahia

Postgraduate Diploma in Teaching

Tangiora Avery

Rawiri Kapea

Bachelor of Arts

Witerina Cooper

Simon Miles Bachelor of Engineering with Honours

Ngarati and Rangi Kotuku Rukuwai Whānau Trust

Sumer Karaitiana

Doctor of Philosophy

Charmain Hoeta

Taine Paki

Bachelor of Architectural Studies

Ihaka Robinson

Tami Luman Te Hauoterangi Cave

Postgraduate Diploma in Health

Ihaka Robinson

Tara Kahui

Bachelor of Counselling

Leanne Horo

Taylah King

Bachelor of Arts

Charles Dennis King

Te Aroha Taylor

Bachelor of Health Science (Nursing)

Te Teira Whānau Trust/ Heketa White

Te Autiti Gilsenan HikakaJones Bachelor of Design with Honours

Margaret Ngawaina Taylor

Te Haana Paewai

Winifred Annie Bishop

Bachelor of Maori Visual Arts - Maunga Kura Toi

Te Herekiekie Herewini Doctorof Philosophy

Herewini Hapu Mareikura Reremoana Whānau Trust

Te Hinengaro Tuterangiwhiu

Vanessa Anne Whiu

Bachelor of Health Science (Physiotherapy)

HE ORANGA

TERTIARY GRANTS (CONTINUED)

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS

TERTIARY GRANTS (CONTINUED) Recipient

Qualification

Shareholder Support

Te Waikapoata Hera Tamati

Bachelor of Dental Surgery

Aroaro Tamati

Te Wainuiarua Poa

Conjoint: Bachelor of Arts /Bachelor of Laws

Wiremu WhÄ nau Trust

Teakiri Kapa (nee Abraham)

Bachelor of Arts/Bachelor of Laws (Conjoint)

Aaron Mervyn Abraham

Te Rerekohu Tuterangiwhiu

Poutuarongo Whakaakoranga (previously Vanessa Anne Whiu known as Poumanawa Maatauranga Whakaakoranga)

Teana Davey Bachelor of Health Science (Nursing)

Reiwyn Kaniehana Davey (Hohaia) WhÄ nau Trust

Tereina Lichtwark

Certificate in Business Administration L4

Narita Tioko

Tewaiwhenua Maha

Bachelor of Arts

Sarah Matangi

Thomas Macleod

Bachelor of Accountancy

Joy Rangimarie Te Poi Macleod

Thomson Matuku

Doctor of Medicine

Thomas Broughton

Tiana-vai Ani Taamaru

Bachelor of Arts

Leanne Horo

Timatanga Mykade Bachelor of Human Services Gray Kerei Ratahi Klaassen Ratahi Timuoterangi Niwa

Doctor of Education

Tui Te Ihorere James Niwa

Tom Alesana

Diploma in Te Pinakitanga ki Te Reo Kairangi

Sue Taylor

Toni Wayne

Bachelor of Applied Management

Charlie Tohe

Tori Goble

Bachelor of Teaching and Learning (Primary)

Ruby Kahui

Tori Turner

Bachelor of Veterinary Science

Harriet Maud Turner

Tracey Moore

Bachelor of Applied Science

Wikitoria Beamish

Tu Williams

Master of Indigenous Studies

Jean Cunningham

Tuheitia Pihama

Bachelor of Teaching

Patricia Hemara Wahanui

Veronica Taikato Bachelor of Health Science (Nursing)

Lorna Tawhakirangi Tuhia Tutahiona Katene

Wendy Eynon

National Diploma in Career Practice

John Matakana Eynon

Wiremu MacFater

Doctor of Medicine

Sarah Williams MacFater

Xavier Langton

Bachelor of Mathematical Sciences

Rex Bruce Langton

Zoe Hobbs

Bachelor of Creative Technologies

Dorothy Hobbs

Recipient

Shareholder Support

Alyssia Cody

Esther Te hau Whakarei Teasdale

Bobbie Daymond Bodger

Patricia Bodger

Casey Renee Rei

Lynne Rei

Cheyanne Rangi-huri-Nuku

John Henry Hooker

Destiny Robinson

Irene Te Waiata Robinson

Dion Hunt

Estate Of Poi Pue

Eva Langton

Rex Bruce Langton

Frankie Davis

Iwimaire Davey Whanau Trust

George Wheatley

Meraina Kirkwood

Jaren Donald Roy

Rosalie Mae Rangi

Kataraina Taylor

Fay Patene

Kayin Katene

Winton Katene

Kobe Luke

Leanne Horo

Madelyne Slater-Carter

Christine Mathieson-Picken

Makiya Katene

Winton Katene

Nicholas Irving

Judy Richards

Nico O'Brien

Agnes Osborne

Adelaide Campbell

Robert Wahawaha Campbell

Te Autiti Jasmine Margaret Ngawaina Taylor Gilsenan-Hikaka-Jones Tewainuiarua Ranginui-Mansell Margaret Ngawainia Taylor Tre Robinson

Irene Te Waiata Robinson

Tyree Loveridge

Rosalie Mae Rangi

TARANAKI COMMUNITY GRANTS Manukorihi Pa Nganahau a Uru Trust (Taranaki Iron MÄ ori) Taiporohenui Taranaki ki te Tonga Te Ohu Atawai o Taranaki Charitable Trust (National Manukorero Competition) Waioturi Marae

HE ORANGA

NATIONAL CERTIFICATE IN EDUCATION ACHIEVEMENT

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS & GRANTS

20 17 PARININIHI KI WAITOTARA

TRUST

FINANCIAL STATEMENTS for the year ended 30 June 2017

PERFORMANCE REPORT - 30 JUNE 2017

Auditors report

NON-FINANCIAL INFORMATION Entity information 86 Statement of service performance

FINANCIAL INFORMATION Statement of financial performance

Statement of financial position

Statement of cash flows

Statement of accounting policies

Notes to the performance report

1 Analysis of revenue

2 Analysis of expenses

3 Analysis of assets and liabilities

4 Property, plant and equipment

5 Accumulated funds

6 Commitments and contingencies

7 Related party transactions

8 Events after the balance date

Chartered Accountants

Independent Auditor's Report To the Beneficiaries of Parininihi ki Waitotara Trust Report on the Performance Report We have audited the performance report of Parininihi ki Waitotara Trust (the “Trust”) on pages 86 to 97, which comprises the entity information, the statement of service performance, the statement of financial performance and statement of cash flows for the year ended 30 June 2017, the statement of financial position of the Trust as at 30 June 2017, and the statement of accounting policies and other explanatory information. In our opinion: ►

the reported outcomes and outputs, and quantification of the outputs to the extent practicable, in the statement of service performance are suitable;

►

the accompanying performance report on pages 86 to 97 presents fairly, in all material respects ►

the Trust information for the year ended 30 June 2017;

►

the service performance for the year then ended; and

the financial position of the Trust as at 30 June 2017, and its financial performance, and cash flows for the year then ended in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued by the New Zealand Accounting Standards Board. ►

This report is made solely to the Beneficiaries of the Trust, as a body. Our audit has been undertaken so that we might state to the Trust’s Beneficiaries 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 Trust and the Trust’s Beneficiaries as a body, for our audit work, for this report, or for the opinions we have formed.

Basis for Opinion We conducted our audit of the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report in accordance with International Standards on Auditing (New Zealand), and the audit of the Trust information and statement of service performance in accordance with the International Standard on Assurance Engagements (New Zealand) ISAE (NZ) 3000 (Revised). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Performance Report 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 we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 interest in, the Trust. Partners and employees of our firm may deal with the Trust on normal terms within the ordinary course of trading activities of the business of the Trust.

Information Other than the Performance Report and Auditor’s Report The Trustees are responsible for the Annual Report, which includes information other than the performance report and auditor’s report. Our opinion on the performance report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the performance report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the performance report or our knowledge obtained during the audit, or otherwise appears to be materially misstated. If,

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PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS

Chartered Accountants

based on the work we have performed on the other information obtained prior to the date of this auditor’s report, 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.

Trustees’ Responsibility for the Performance Report The Trustees are responsible on behalf of the Trust for ►

Identifying outcomes and outputs, and quantifying the outputs to the extent practicable, that are relevant, reliable, comparable and understandable, to report in the statement of service performance;

►

the preparation and fair presentation of the performance report on behalf of the entity which comprises ►

the Trust information;

►

the statement of service performance; and

►

the statement of financial performance, statement of financial position, statement of cash flows, statement of accounting policies and notes to the performance report

in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Not-For-Profit) issued in New Zealand by the New Zealand Accounting Standards Board, and for such internal control as the Trustees determine is necessary to enable the preparation of the performance report that is free from material misstatement, whether due to fraud or error. In preparing the performance report, the Trustees are responsible on behalf of 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 cease operations, or have no realistic alternative but to do so. ►

Auditor's Responsibility Our objectives are to obtain reasonable assurance about whether the performance report is 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) and ISAE (NZ) 3000 (Revised) 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 this performance report. As part of an audit in accordance with ISAs (NZ) and ISAE (NZ) 3000 (Revised), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ►

Identify and assess the risks of material misstatement of the performance report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

►

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

►

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

►

Conclude on the appropriateness of the use of the going concern basis of accounting by Trustees and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the performance report or, if such disclosures are inadequate, to modify

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Chartered Accountants

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Trust to cease to continue as a going concern. ►

Evaluate the overall presentation, structure and content of the performance report, including the disclosures, and whether the performance report represents the underlying transactions and events in a manner that achieves fair presentation.

►

Perform procedures to obtain evidence about and evaluate whether the reported outcomes and outputs, and quantification of the outputs to the extent practicable, are relevant, reliable, comparable and understandable.

We communicate with the Trustees regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

21 September 2017 Wellington

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PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS

Parininihi ki Waitotara Trust ENTITY INFORMATION FOR THE YEAR ENDED 30 JUNE 2017

Entity's Purpose or Mission: Parininihi ki Waitotara Trust works on behalf of the Parininihi ki Waitotara Shareholders and the Taranaki Māori community, focusing its efforts on three priorities: developing the community; facilitating active participation; and leadership. Each year the Parininihi ki Waitotara Trust will support the educational and cultural aspirations of Taranaki Māori by the following clauses: (i) In making grants or loans towards the cost of the construction, establishment, management, maintenance, repair or improvement of Māori meeting houses, halls, charges and church halls, villages, marae or cemeteries (ii) In establishing, maintaining and equipping hostels for the purpose of providing either permanent or temporary accommodation (iii) In making grants or loans towards the establishment of recreational centres for the common use of any Māori community and for such other uses as the Trustees see fit. (iv) For assisting in the establishment of schools, and in the equipping, managing and conducting of schools; - In making grants of money, equipment or material to schools or other educational or training institutions; - by making grants to funds established or bodies formed for the promotion of the education of Māori; - for assisting Māori to obtain training or practical experience necessary or desirable for any trade or occupation (v) In providing scholarships, exhibitions, bursaries or other methods of enabling individuals to secure the benefits of education or training, or in making grants to education boards or other educational bodies for scholarships, exhibitions or bursaries, in providing books, clothing or other equipment for the holders of scholarships or other individuals or in making grants for any such purpose, or in making grants generally for the purpose of assisting the parents or guardians or children to provide for their education or training for any employment or occupation (vi) In providing, maintaining, or contributing towards the cost of residential accommodation for children in relation to their education or training; or (vii) In the promotion of schemes to encourage the practice of Māori arts and crafts, the study of Māori lore and history and the speaking of the Māori language; and (viii) In supporting, assisting, maintaining or promoting such further or other projects or purposes for the benefit of the Māori people as the Trustees may from time to time approve as an object suitable to be brought within the scope of the trusts hereby created.

Legal Name of Entity: Parininihi ki Waitotara Trust Type of Entity and Legal Basis (if any): Charitable Trust Registration Number: CC36303 Entity Structure: Governance: The Parininihi ki Waitotara Trustees are the Committee of Management members of the Parininihi ki Waitotara Incorporation, plus a representative elected by the shareholders at the annual general meeting. Main Sources of the Entity's Cash and Resources: The Parininihi ki Waitotara Incorporation makes an annual grant calculated on 10% of the dividend paid to shareholders. The Parininihi ki Waitotara Trust also draws interest from a $3.1m loan to Parininihi ki Waitotara Incorporation. Main Methods Used by the Entity to Raise Funds: The Parininihi ki Waitotara Trust is not an active fund raiser. Entity's Reliance on Volunteers and Donated Goods or Services: The Parininihi ki Waitotara Trust is not reliant on volunteers or donated goods or services. Physical Address: 35 Leach Street New Plymouth, New Zealand Postal Address: PO Box 241, New Plymouth 4340, New Zealand Phone: +64 (06) 769 9373 Fax: +64 (06) 757 4206 Email: office@pkw.co.nz Web: www.pkw.co.nz Facebook: www.facebook.com/ Parininihi-ki-Waitotara-Incorporation377456922465330/?ref=page_ internal

STATEMENT OF SERVICE PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

Description: Established in 1983 the purpose of the Parininihi ki Waitotara Trust as per the deed, is to support the education and cultural aspirations of Taranaki Māori. This is reinforced by the Trust’s mission of ‘Seeding Taranaki potential – building success’ and reflected by the Trust’s outcomes for this period: 1. Shareholders and beneficiaries cherish their relationship with Parininihi ki Waitotara; 2. Agri-business opportunities are promoted to the community; and 3. Parininihi ki Waitotara is recognised as a valued partner. Outputs 1. Active Participation

Description of Quantification of the Parininihi ki Waitotara Trust's Output

Output 1 - Active Participation Distribute the Trust's grant programme to Taranaki Māori as part of building capacity and supporting cultural aspirations. Increasing participation by the number of: - Education and teritary recipients - Sporting and cultural grant recipients - Community grant recipients Total Grant Investment

The accompanying notes form part of these financial statements.

Actual This Year $'000

197 - 5 202

199 - 35 234

Budget This Year $'000

150 10 53 213

162 - 42 204

Actual Last Year

$'000

175 4 6 185

159 3 65 227

PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

Note

Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

Revenue 1 Grants Interest, dividends and other investment revenue Other revenue

225 161 -

120 198 -

120 183 10

Total Revenue

386 318

313

Expenses 2 Costs related to providing goods or services Grants and donations made

87 234

132 227

Total Expenses

321 312

Surplus/(Deficit) for the Year

The accompanying notes form part of these financial statements.

107 205

359

65 6 (46)

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2017

Note

Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

Assets 3 Current Assets Bank accounts and cash 105 Related party receivables 3,138 Other current assets 8 Total Current Assets 3,251

87 3,036 147 3,270

78 3,036 3,114

Non-Current Assets Property, plant and equipment 4 Total Non-Current Assets

6 6

- -

1 1

Total Assets

3,257

3,270

3,115

Current Liabilities Creditors and accrued expenses Total Current Liabilities

111 111

182 182

34 34

Total Liabilities

111

182

Total Assets less Total Liabilities (Net Assets) Accumulated Funds 5 Accumulated surpluses Reserves Total Accumulated Funds

3,146

3,088

3,081

1,863 1,283 3,146

1,805 1,283 3,088

1,798 1,283 3,081

Liabilities

The accompanying notes form part of these financial statements.

PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

Cash Flows from Operating Activities Cash was received from: Grant's received Interest received Other receipts Cash was applied to: Payments to Suppliers Payments to Employees Payments to grant recipients

Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

76 95 -

190 194 -

120 183 10

171 384 (25) (57) - (74) (233) (205) (258) (336)

313 (53) (74) (271) (398)

Net Cash Flows from Operating Activities

(87)

(85)

Cash Flows from Investing and Financing Activities Cash was applied to: Proceeds from sale of investments Advances to Parininihi ki Waitotara Incorporation

- 114

- (44)

1,514 (1,415)

Net Cash Flows from Investing and Financing Activities Net Increase in Cash Opening Cash Closing Cash

114

(44)

27 78 105

4 78 82

14 64 78

This is represented by: Bank Accounts and Cash

105

The accompanying notes form part of these financial statements.

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2017

Basis of Preparation

Income Tax

Parininihi ki Waitotara Trust has elected to apply 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. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the entity will continue to operate in the foreseeable future.

Parininihi ki Waitotara Trust is wholly exempt from New Zealand income tax having fully complied with all statutory conditions for these exemptions.

Revenue Revenue is recognised to the extent that it is probable that the economic benefit will flow to Parininihi ki Waitotara Trust and revenue can be reliably measured. Revenue is measured at the fair value of consideration received. The following specific recognition criteria must be met before revenue is recognised:

Bank Accounts and Cash Bank accounts and cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with maturities of 12 months or less. Related Party Receivable Related party receivables are stated at their estimated net realisable value. Creditors Creditors and accrued expenses are recognised initially at fair value and subsequently at amortised cost. Website Costs Website costs are stated at cost and are amortised over 4 years.

(i) Grant income is recognised as Changes in Accounting Policies revenue when received and all associated obligations have been met. There have been no changes in accounting policies during the (ii) Interest income is recognised using financial year (last year: nil). the effective interest method. Expenditure Expenditure is recognised as it is incurred by Parininihi ki Waitotara Trust. Goods and Services Tax (GST) Parininihi ki Waitotara Trust is not registered for GST. Therefore amounts recorded in the Performance Report are inclusive of GST (if any).

PARININIHI KI WAITOTARA TRUST - FINANCIAL STATEMENTS

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1: ANALYSIS OF REVENUE

Revenue Item Analysis Revenue from providing goods Grant Income or services Incorporation and third parties

Total

Revenue Item Analysis Interest, dividends and other investment revenue Interest Incorporation Interest Bank

Total

Revenue Item Analysis Other revenue Other revenue

Total

This Year $'000

Last Year $'000

225

120

225

120

This Year $'000

Last Year $'000

159 2

123 60

161

183

This Year $'000 -

Last Year $'000 10

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 2: ANALYSIS OF EXPENSES

Expense Item Analysis Volunteer and employee related costs Kaitakawaenga Total

This Year $'000 66 66

Last Year $'000 74 74

Expense Item Analysis Costs related to providing goods Directors Fees or services Consultancy Legal Expenses

This Year $'000 3 8 1

Last Year $'000 5 18 23

This Year $'000 9

Last Year $'000 12

Total

Expense Item Analysis Other expenses Other Admin Expenses

Total

PARININIHI KI WAITOTARA TRUST - NOTES TO THE PERFORMANCE REPORT

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 3: ANALYSIS OF ASSETS AND LIABILITIES

Asset Item Bank accounts and cash

Analysis ANZ Bank Account TSB Term Deposit

This Year $'000

Last Year $'000

35 70

8 70

105

Total Asset Item Analysis Related party receivables Incorpration Advance Incorporation Loan

1,524 1,614

1,502 1,534

3,138

3,036

Asset Item Analysis Other non-current assets Property, Plant & Equipment

Total

Liability Item Creditors and accrued expenses

Analysis Trade and other payables Grants payable Payable to PKW Farms LP

- 44 67

3 31 -

Total

111

Total

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 4: PROPERTY, PLANT AND EQUIPMENT This Year Opening Carrying Purchases Sales/Disposals Amount $'000 $'000 $'000 Asset Class Computers Website Total

2 - 2

- 5 5

Current Year Depreciation and Impairment $'000

- - -

1 - 1

Opening Carrying Purchases Sales/Disposals Amount $'000 $'000 $'000 Asset Class Computers 3 - - Total 3 - -

Current Year Depreciation and Impairment $'000

Closing Carrying Amount $'000

1 5 6

Last Year

2 2

Closing Carrying Amount $'000 2 2

PARININIHI KI WAITOTARA TRUST - NOTES TO THE PERFORMANCE REPORT

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 5: ACCUMULATED FUNDS This Year Description Opening Balance Surplus/(Deficit) Closing Balance

Capital Contributed by Owners or Members $'000

- - -

Accumulated Surpluses or Reserves Total Deficits $'000 $'000 $'000

1,798 65 1,863

1,283 - 1,283

3,081 65 3,146

Last Year Description Opening Balance Surplus/(Deficit) Closing Balance

Capital Contributed by Owners or Members $'000

- - -

Accumulated Surpluses or Reserves Total Deficits $'000 $'000 $'000

1,844 (46) 1,798

NOTE 6: COMMITMENTS AND CONTINGENCIES

Commitments As at 30 June 2017 the Entity had no capital commitments (2016: None). Contingent Liabilities and Guarantees As at 30 June 2017 the Entity had no contingent liabilities or assets (2016: None).

1,283 - 1,283

3,127 (46) 3,081

NOTES TO THE PERFORMANCE REPORT FOR THE YEAR ENDED 30 JUNE 2017

NOTE 7: RELATED PARTY TRANSACTIONS Description of Related Party Relationship (a) Parent transactions During the year the Trust received funds from, and invested funds with, its parent entity Parininihi ki Waitotara Incorporation as follows: Interest Income Grant Income

This Year Value of Transactions $'000

Last Year Value of Transactions $'000

This Year Amount Outstanding $'000

Last Year Amount Outstanding $'000

159 123 150 120 309 243

The amounts outstanding with Parininihi ki Waitotara Incorporation at balance date were:

PARININIHI KI WAITOTARA TRUST - NOTES TO THE PERFORMANCE REPORT

Loan to Parininihi ki Waitotara Incorporation 80 1,534 1,614 1,534 Advance to Parininihi ki Waitotara Incorporation 22 119 1,524 1,502 102 1,653 3,138 3,036 Total accounts receivable relate to amounts receivable from Parininihi ki Waitotara Inc (the Parent) Interest is receivable at the average group rate of 5.28% (2016: 5.59%). The balances are receivable on demand. Parininihi ki Waitotara Trust has an interest free loan payable to PKW Farms LP as at 30 June 2017 of $67k (Last Year: Nil). (b) Key Management Trustees of Parininihi ki Waitotara Trust Hinerangi Edwards (Chair) Bev Gibson David MacLeod Taaringaroa Nicholas Claire Nicholson Hinerangi Raumati-Tu'ua Aisha Ross (retired 28 April 2017) Darryn Ratana (Shareholder Representative) The above Trustees are on the Committee of Management for the Parent, Parininihi ki Waitotara Incorporation (excluding Shareholder Representative).

NOTE 8: EVENTS AFTER THE BALANCE DATE Events After the Balance Date: There were no events that have occurred after the balance date that would have a material impact on the Performance Report. (Last Year: Nil)

NOTES

PARININIHI KI WAITOTARA ANNUAL REPORT 2017

PARININIHI KI WAITOTARA INCORPORATION 35 Leach Street

New Plymouth | New Zealand

PO Box 241 | New Plymouth 4340