Ka oti ā raro - Hui ā tau 2021. Maintaining the foundation of resiliency.

Due to the COVID-19 restrictions in place at the time, the AGM took place virtually, a huirangi, with more than 160 Te Rau Titikura / shareholders registering for the event, many of whom watched the live stream and took an active part in proceedings.

Dion Tuuta, the incoming Te Rau Toi Ariki/Chairperson of Te Raurengarenga / the Committee of Management, said that while the huirangi was a new experience, it was also an opportunity to connect more PKW whānau to the kaupapa while maintaining their safety.

Those registered to the live stream were able to access the agenda, submit questions, kōrero with other live streamers, and vote using the online platform, ACE Event App, which was provided by Sandra Julian (Ngāti Mutunga, Ngāti Tama) from Auaha.

The well-known broadcaster and presenter Tamzyn Pue (Ngāti Maru, Taranaki iwi whānui) stepped into the role of MC to help guide Te Rau Titikura through the official business of the day and introduce speakers and agenda items.

The annual Te Ara Putanga (TAP) results, which measure how PKW is performing socially, culturally, environmentally, and financially, were presented and showed steady performance and balance sheet improvements.

The 2020/21 fiscal year is the third year of comparison after the introduction of TAP in FY2018/19 to give shareholders an improved ‘big picture’ view across the organisation, not just a single result based on financial figures.

The main improvements have been seen in relation to asset return, dividends and distributions, cost management, the use of water and waste management, cultural visibility and pride, co-investment opportunities, working conditions, capabilities development and aligned partners (these categories fall across the four PKW values of Manākitanga, Kaitiakitanga, Whakapono, Whanaungatanga/Kotahitanga.

Financially, the business has recorded a net profit after tax for the year ended 30 June 2021 of $42.8m which is significantly favourable to last year.

An increase in group revenue was attributed to exceeding the milk production target and an increased blended milk price of $7.00 (previous year $6.41). A reasonable increase in market values delivered a positive livestock trading result and 100% of kōura lease revenue was received, along with overall ACE lease values also recovered.

The overall gain reflects the year-end assessment/valuation of:

• Tai‐Hekenga LP; a gain in FV of $1.5m reflecting an uplift in the value of the whenua.

• Investment property (both commercial and rural) net uplift of $5.4m.

• Whenua tūpuna (corpus land); a $24m uplift compared to the prior year ($2.5m).

Warwick Tauwhare-George, Te Rau Matomato/Chief Executive Officer, outlined the strategic implementation that took place during a year hugely impacted by the global pandemic.

He highlighted that the organisation continued to operate as an essential business, with kaimahi whānau stepping up to ensure it was protected. Warwick also explained the importance of a lift in the dividend payout during the challenging economic times for shareholders was something the management and governance teams were very conscious of.

The strategic imperatives for the business are to focus on the three P’s of People, Property and Protein while optimising existing operations, partnering with other like-minded entities—particularly Ngā Iwi o Taranaki—to enable access to a greater range of larger-scale investment

opportunities, diversification opportunities and lifting outcomes for people potential and capabilities, profitability and further development of the Kaitiakitanga Strategy.

The implementation and importance of the Cultural Framework was also discussed, with Puna Wano-Bryant Te Rautitikura/General Manager – Shareholder Engagement and Tonga Karena, Te Rau Whakaihoiho / Kaitiakitanga Strategy Manager bringing their insight to the kōrero.

Warwick and Dion also looked forward to the year to come, which has already seen the acquisition of new whenua opportunities and diversified investments in both the commercial property and agribusiness sectors. A new subsidiary, PKW Miraka Hipi Limited Partnership, has been established and the first year of the Tupu Rawa Programme has been successfully deployed.

The land management plan is being reviewed and has been given a new name ‘Whakahonoa te Pito’ to resonate our cultural traditions and worldview, as has a revised procurement strategy ‘Tiria te māra he pūāwai nō runga, nō raro’.

PKW’s response to climate change is being further defined, and the Incorporation is tracking financially to plan year to date and expects to deliver improved profitability for the 2021/22 financial year.

This exciting growth phase is taking place in a turbulent economic climate and so the business will remain cautious and focused in its approach and ongoing management due to COVID, as well as influences such as inflation, interest rates, commodity prices and supply chain disruption, and recent overseas conflict.

After the conclusion of the PKW Incorporation presentation, Te Rau Manawaora (PKW Trust) report was presented by Te Rau Toi Tauira/Chairperson Bev Gibson.

The highlights were;

• Education grants and scholarships - 175 taiohi and pahake were supported with their studies, an increase of 31 tauira from last year to 206.

• Applications for marae distributions were down this year to a total value of $9,000, due to many marae opting to apply to the Government’s provincial growth fund for support.

• This year, $4,000 was awarded in community grants to Te Kura Kaupapa Māori o Te Pi’ipi’inga Kākano mai i Rangiātea for a māra kai shade house and to Aotea Ūtanganui Kapa Haka for kākahu. A further $18,867.15 was provided in sponsorship from the PKW Incorporation to the Outward Bound Mounga Series for Taranaki Māori youth, and Taranaki Toa Iron Māori events.

The number of scholarship partners has grown to 19, with the inclusion of two new iwi partners, Ngāti Maru and Ngāti Mutunga, who join Ngāruahine, Taranaki, and Te Ātiawa. Two new business partners have also joined – Jack Gray Painters and McFall Fuel.

The Te Rau Manawaora financial report was also presented, with an increase in the grants programme to $249,000 and total revenue came to $400,000 – an increase of $38,000 on last year. In conclusion, the net profit was $49,000 for this year, up by $16,000 from $33,000.

The election result was announced, with three new members of Te Rau Rengarenga welcomed (namely Anne- Marie Broughton, Liana Poutu and Tama Potaka) and a mihi to outgoing members Bev Gibson and David MacLeod, and, of course, a special acknowledgement of Hinerangi Raumati-Tu’ua, who is retired from the Board after 15 years of service.

Ki a kōrua Bev, kōrua ko David, nā kōrua i tiria te māra kia pūāwai ngā hua o hēnei rangi. E kore e mimiti te mihi o tō rau kotahi ki a kōrua me hō kōrua whānau.

For more in-depth TAP performance and financial results, please refer to the 2020/21 Annual Report: https://issuu.com/deputy_editor/docs/pkw_annual_ report_2021