NZ Management Top200 December 2013 by mediaweb

NEW ZEALAND’S TOP 200 COMPANIES P47

management.co.nz

TOP 200 2013

CELEBRATING

NZ’S TOP

200

MICHAEL DANIELL FISHER & PAYKEL HEALTHCARE

DECEMBER 2013

DECEMBER 2013 $7.10 INCL GST

WINNERS

EXCLUSIVE REPORT ON NZ’S TOP 200 COMPANIES

Michael Daniell Executive of the Year p16 Dr David Kerr Chairperson of the Year p24 Sir Murray Halberg Visionary Leader p39

9 421902 251030

What happens when you upgrade your trowel to a tablet? Vodafone Power to you

If you’re a builder looking to do the best possible job, it pays to use the latest tools. That’s why companies like Cook Brothers Construction in Dunedin are packing smartphones and tablets in their toolboxes. Using the latest mobile devices with mobile data and some very clever apps, Cook Brothers is equipped to work more productively than ever before.

Working to a different blueprint.

Outcomes.

Always keen to find new ways to improve performance, the executive team at Cook Brothers asked Vodafone to work with them to introduce mobile productivity tools:

• Better bottom line – managing costs and risks more effectively means Cook Brothers can bid for and win more lucrative contracts.

Video briefings via tablet. All site managers received a tablet connected to Vodafone’s super fast network. Health & Safety briefings are now run via an induction video to help Cook Brothers achieve its goal of ‘zero harm’ for site safety.

• Greater productivity – from mobilising business processes, like adding timesheet apps on tablets and using video to resolve building issues.

Photos solve problems. Workers on site use the camera on their smartphone or tablet to send pictures to the architect or engineer for instant resolution of tricky building issues. The savings in time – and mistakes avoided – are huge. Capturing more costs with a timesheet app. Building their own simple timesheet app means Cook Brothers can capture costs more accurately and manage projects more efficiently compared to their old paper-based processes. Staying connected with all stakeholders. Video conferences are easy to set up, so everyone connected with the project can stay in touch at every step.

To see how other Kiwi businesses are already making use of this new technology to do business better, check out vodafone.co.nz/mobility

• Flexibility to work anywhere – with the latest technology and no delays thanks to fast connectivity. • Industry-leading health and safety standards – aided by video briefings on mobile tablets.

Cook Brothers is one of many Kiwi businesses turning mobility into possibility. With Vodafone you too can be working on the go, cutting costs and removing duplication. Access your information anywhere in order to become more productive. Connect to servers when you’re out of the office. And use cloud-based apps like Xero or DropBox to work more efficiently, knowing that your data is always safe. Stay competitive

Only on the

SuperNet™

Flexible working

Manage security Operate efficiently

Vision & bravery

www.management.co.nz A MEDIAWEB MAGAZINE PUBLISHER & EDITORIAL DIRECTOR Toni Myers

oth our Top 200 judges and political commentator Colin James bemoan, in this issue, a lack of vision from our leaders; the former implicating the business sector and the latter – our politicians. While I have no problem agreeing with James, I’m not willing to give up on our business leaders’ capacity for visionary thoughts and action. Our political leaders are the ultimate short-term pragmatists; the system doesn’t facilitate long-term thinking. It would take a bold and some would say foolish politician to risk failure at the polls by sacrificing short-term comfort for long-term gains. But we are starting to nurture business leaders with longer-term horizons. In the wake of the GFC, most of our current crop of high-performing CEOs and directors have a strong focus on sustainability. They have experienced or witnessed the advantages conservatively-geared companies secured from remaining sound through that constrained period. The judges did warn that boards in general are still too process-focussed and not strategic enough. You can tell the directors and boards though that have got the balance of process and strategy right; just trawl through our list of winners. And this year’s winners are not overnight successes. One of the youngest is Ryman Healthcare founded in 1984. Fisher & Paykel dates back to the 1930s and CEO Michael Daniell has been with the business for more than 30 years. EBOS was founded in 1922 as Early Brothers Trading Co and CEO Mark Waller has led

the company for 26 years. Each of these companies has been working for some years to be in the position to make bold moves towards their ultimate vision and this year the time had come. A truly visionary leader is more than a successful CEO or chair, but inspired vision comes from long periods of hard graft; from experience, knowledge and wisdom. Some such individuals will be growing right now, inside the organisations we are honouring in this year’s Deloitte Management Top 200 Awards. They are already delivering inspired leadership to their organisations and sectors and New Zealand is benefiting from that in a material way. Some will no doubt go on to use the skills they learn in the business realm to serve the community in other ways; many already are. We can take heart from Sir Murray Halberg, this year’s Visionary Leader, who started his visionary journey 50 years ago when he first established his trust. And he is still pursuing his vision at 80 years of age.

Toni Myers, Publisher

CONTRIBUTORS Reg Birchfield, John Clarke, Bob Edlin, Susan Edmunds, Colin James GENERAL MANAGER SALES Lisa Morris, 021 651 601, lisam@mediaweb.co.nz DESIGNER Melissa McGregor COPY & WEB EDITOR Gill Prentice PRODUCTION MANAGER Fran Marshall franm@mediaweb.co.nz NEW SUBSCRIPTIONS www.management.co.nz/subscribe SUBSCRIPTION ENQUIRIES subs@mediaweb.co.nz

Phone 09-529 3000, Fax 09-529 3001 enquiries@mediaweb.co.nz www.mediaweb.co.nz PO Box 5544, Wellesley Street, Auckland 1141

NZ MANAGEMENT magazine is independently owned by Mediaweb Limited and is published 11 times a year. It is the officially recognised magazine of the New Zealand Institute of Management Incorporated. Editorial material does not necessarily reflect the views of NZIM. Copyright © 2013: Mediaweb Limited. All material appearing in NZ MANAGEMENT is copyright and cannot be reproduced without prior permission of the publisher. Editorial contributions are welcomed. Letters to the editor are also welcomed, but pen names are not acceptable. Subscriptions: One-year NZ subscription (11 issues) $78.15 (GST incl). Overseas (airmail only): Australia NZ$130; rest of the world NZ$250. Enquiries: Mediaweb Limited, PO Box 5544, Wellesley Street, Auckland 1141, New Zealand. Phone: 09-529 3000, Fax 09-529 3001, enquiries@mediaweb.co.nz www.management.co.nz New Zealand Institute of Management enquiries to: NZIM Inc, Box 67, Wellington; Northern, Box 6600, Epsom; Central, Box 11781, Wellington; Southern, Box 13044, Christchurch.

Vol 60 No 11 • ISSN 1174-5339 (Print), 1179-3910 (Online)

Mediaweb supports the following not-for-profits:

DECEMBER 2013

| management.co.nz | 3

CONTENTS 08 TOP200 COVER STORY

Spectacular success New Zealand-owned companies do well against international competition;Â and boom times for the health and aged care sector.

DECEMBER 2013 â&#x20AC;˘ Vol 60 No 11

Top200 16 Deloitte/Management Executive of the Year Michael Daniell 18 Deloitte/Management Company of the Year Fisher & Paykel Healthcare

22 NZIM/Eagle Technology Young Executive of the Year Mark Julian 24 QBE Insurance Chairperson of the Year Dr David Kerr 28 Minter Ellison Rudd Watts Excellence in Governance Auckland International Airport 34 Marsh Most Improved Performance Air New Zealand 36 Ilume Best Growth Strategy EBOS Group

39 Federation Visionary Leader Sir Murray Halberg 42 Top 200 Judges 44 Criteria 45 Deloitte Viewpoint Thomas Pippos New Zealand and disruptive innovation 47 A-Z Top 200 Companies

48 Top 200 Companies Listings 62 Top 30 Financial Institutions 64 Year-on-Year Comparisons 66 Top 200 Analysis 68 Performance by Sector 70 Missing, Merged, Miscellaneous 22

CONTENTS

Features 3

EDITOR’S LETTER

71 EXECUTIVE CLUB: FISH with a view – corporates dining

82 NZIM: What about the leaders? Reg Birchfield 88 POLITICS: A Top 200 government? Colin James

John Clarke speaks with the accomplished chef of smart Auckland eatery FISH, which is part of the Simon Gault stable, and a fail-proof option for discerning corporate.

89 ECONOMICS: Santa’s largesse Bob Edlin 84 FACE TO FACE: Management’s lifetime lessons

COMPANY PROFILES 40 FEDERATION: A 100% New Zealand agency

Breaking the traditional international network paradigm

78 DOT KIWI: Digital Kiwi takes flight

Retiring NZIM chief executive Kevin Gaunt speaks with Reg Birchfield about the impact of the loss of management disciplines.

91 NZIM’s Focus on Management

Global branding opportunity for Kiwi companies

ManagementDirect: NZIM’s international online resource; Farewell to Kevin Gaunt; Regional news; Training and development courses; Member comment from David Brown.

2014 public programme out now! Choose from over 200 public course dates in 4 different cities

Now’s the time to plan your professional development – we can help! Public courses

www.brightstar.co.nz 6 | management.co.nz | DECEMBER 2013

In-house training

Training packages

Now trending Innovative ideas never go out of fashion. Bespoke solutions to help give you a cutting-edge.

www.deloitte.co.nz

ÂŠ 2013 Deloitte. A member of Deloitte Touche Tohmatsu Limited.

New Zealand-owned companies do well against international competition; and boom times for the health and aged care sector.

SPECTACULAR

success

ew Zealand-owned companies do well against international competition and boom times for the health and aged care sector. While total revenue figures for New Zealand’s largest companies changed little from 2012, this year’s Top 200 Companies data shows substantial increases in after tax profit. That’s one of the stories from a year that the Top 200 auditors and judges say was a good year to build profitability off the back of overall stable revenue. Commenting on the performance growth, the judges said: “We were looking at a drop in same company performance of nearly 27 percent in after tax profit in 2012 vs 2011; 2013 reversed this pattern with a year-on-

8 | management.co.nz | DECEMBER 2013

year increase of 14.2 percent. The top 30 companies in the finance sector also showed a similar turnaround, from the previous year’s drop of 3.7 percent, to an increase of nearly 20 percent in profit after tax this year.” Within this largely stable overview however there were some spectacular successes that have been recognised in the winners in the following pages. These are companies that largely had lower gearing going into the GFC and maintained that solid position. The judges were particularly pleased to see strong performances from New Zealand-owned companies, especially against tough international competition. This year’s judging panel, convened by Reg Birchfield of RJ Media

included: Neil Paviour-Smith (managing director of Forsyth Barr), Suzanne Snively, ONZM (MoreMedia Enterprises), and Sandy Maier (independent director). Although there are strong candidates in the governance finalists listed here, the judges had qualified praise for the overall performance of the boards of New Zealand’s listed companies. They commented that the post-GFC era had bred a climate of boardroom compliance, where directors were overly consumed by managing risk – often at the expense of strategy and shareholder value creation. These two needed better balance. In determining the shortlist for this year’s Visionary Leader Award, the

F&P HEALTHCARE

“UNLIMITED GLOBAL GROWTH IN DEMAND FOR THEIR PRODUCTS.”

Suzanne Snively.

Sandy Maier.

Neil Paviour-Smith.

DECEMBER 2013

| management.co.nz | 9

RYMAN HEALTHCARE

“EXTRAORDINARY GROWTH IN RYMAN’S TARGET DEMOGRAPHIC.”

judging panel noted the paucity of potential candidates from the business sector. While the sector delivers some very strong performing directors and chief executives, the judges found it difficult to identify true visionaries from the business sector. They noted also that one of the key factors in determining “visionary” status was a concern for broader societal issues and a philanthropic focus. They noted that corporate philanthropy was still in its infancy in New Zealand. The story of this year’s top performers is one that illustrates the new economy, underscoring changes in market demographics as well as economic shifts. Organisations involved in health and aged care, energy , service provision, travel and primary produce all feature more than once in the list of finalists. But the standout sector featuring multiple appearances is the health and aged care / retirement sector with Fisher & Paykel Healthcare achieving 10 | management.co.nz | DECEMBER 2013

both Company of the Year and Executive of the Year Awards. EBOS Group features in two awards as does Ryman Healthcare. With New Zealand’s aging demographic courtesy of the baby-boomers, it is no surprise that retirement village operator Ryman Healthcare features strongly. But it has a singular model of success in doing its own village development, enabling it to bank the proceeds. It has conservative gearing but high annual growth – an unusual but healthy position their operating model allows.

And that conservative attitude to debt – Ryman didn’t gear up prior to the GFC - meant it was in a good position to withstand market shocks. It carries no more debt than working capital. There is extraordinary growth in Ryman’s target demographic as the boomers age; there will be an extra 20,000 75-year-olds per annum for the next 20 years. Global demographic trends are supporting Fisher & Paykel Healthcare’s growth, with demand for their Obstructive Sleep Apnea (OSA) products

KEY TAKEOUTS FROM THE TOP 200 NUMBERS High performers: Healthcare, pharmaceuticals, energy Biggest profits: Banks Biggest losses:

Media, insurance

Biggest revenue: Banks, energy, insurance

AIR NEW ZEALAND

“THE BEST EXECUTIVE TEAM.”

growing with an aging (and fattening) first world population. Demand for all of F&P’s respiratory care products increases with a general lift in healthcare in developing nations. For both these organisations, F&P Healthcare and Ryman, one can only see growth in demand for their products and services for as far into the future as one can imagine. The stories of this year’s finalists also illustrate the contemporary, more inclusive leadership style as the complexity of modern organisations requires the sharing of power and decision-making; and leadership from within rather than from above. Good leaders have always acknowledged their teams and shared the credit for stellar performance. In today’s world we know that high-performing teams are an essential enabler of high-performing CEOs. The breadth of knowledge and skills required to steer modern organisations through a landscape of constant and

Air New Zealand ceo, Chris Luxon

rapid change is such that a key determinant of corporate success is the ability of a CEO to build and lead an executive team of exceptional capability. Today’s leaders need to be secure and mature enough to handle being surrounded by a team of individuals who can all outshine the CEO in their own area of expertise. Air New Zealand is a good example. The global airline industry is hugely challenged with several big operators going under in recent years and many more the subject of mergers and takeovers in the industry’s struggles to stay profitable. And yet a relatively small player like our national carrier manages a standout performance (this year taking out the

Air New Zealand board chair, John Palmer

Top 200 Most Improved Performance Award) 12 months after replacing a popular and high performing CEO. The airline had also absorbed costs from an investment in Virgin Australia that delivered a disappointing performance in the period – but that investment is part of a well thought out long-term strategy. Air New Zealand CEO – of just under 12 months – Christopher Luxon, hit it on the head when he stated that his executive team is the best he’s ever worked with. That high-performing team, together with intelligent, wellthought out long-term strategy – and built in flexibility to react quickly to market shifts – is no doubt key to the airline’s success. DECEMBER 2013

| management.co.nz | 11

TOP 200 JUDGES HIGHLIGHTED THE NEED FOR BOARDS TO FOCUS ON STRATEGY

Kevin Gaunt, NZIM.

A board that promotes and facilitates the development and maintenance of an organisation’s strategy is critical. John Palmer, Air New Zealand’s retiring chair, can claim significant credit also. The Top 200 judging panel highlighted in their deliberations, the need for boards to focus on strategy and judges were concerned that New Zealand boards in general were underperforming in this key responsibility. One of the difficulties with chairs and boards in the post-GFC era, they noted, was the whole climate of risk 12 | management.co.nz | DECEMBER 2013

management and avoidance and focus on boardroom compliance. Many good chairs, they noted, had been caught out in the GFC – and this was unfortunate in such a small governance pool. Boards became introverted, they said, focusing on systems and processes, with shareholders possibly favouring a ‘safe pair of hands’ over directors with more vision and calculated risk-taking. The challenge for boards was to balance the need for security and obsession wit of strategic growth and shareholder value creation. Those that get that mix right have been the good strong performers – and we have seen some bold strategies on the part of Top 200 finalist companies; witness, for example, EBOS Group’s bold takeover of Australian company Symbion this year. The number one issue for New Zealand corporate performance in general, said the judges, is that boards do not spend enough time on strategy.

It’s not sexy, but it’s fundamental to good performance of all organisations – large and small – and that’s sound and stringently adhered to systems and processes. Increasing business complexity makes this basis of good management even more critical to success. Such systems need to be independent of any individual or group within an organisation, so that no matter what changes there are in personnel – the underlying corporate organism keeps functioning smoothly like a well-oiled machine. Given that, it’s somewhat unnerving to read the interview on page 44 with Kevin Gaunt, the NZ Institute of Management’s departing chief executive. Gaunt has had wide ranging executive and consulting roles in both the public and private sectors and he is deeply concerned by what he sees as the loss of the management imperative. That’s resulted in indiv iduals being thrown in at the deep end in organisations and being expected to

adding value for your business Strategic Pay is at the leading edge of developments in strategic remuneration, performance management and performance improvement solutions. We help organisations improve their performance by ensuring employee effort, remuneration and rewards are closely aligned with business objectives, and by providing a compelling proposition that attracts, retains and motivates the best people.

+ + + +

We offer solutions to suit every New Zealand business: Customised, impartial performance and reward advice The largest and most extensive remuneration data services Educational programmes to build your capability Smart technology to facilitate remuneration and performance management

Call us about our free remuneration audit and we will show you how we can add value

Auckland ph 09 303 4045 www.strategicpay.co.nz

Wellington Dunedin ph 04 473 2313 ph 03 479 0637 info@strategicpay.co.nz

Helping organisations succeed through the performance of people

100% local

AUCKLAND INTERNATIONAL AIRPORT “MAKING JOURNEYS BETTER.”

develop management skills on the run. Management thinking and development have been gazumped by leadership, he believes, while the understanding that there are important things to learn about management has disappeared. Further, from his vantage point now of looking back, he sees leadership as just one, albeit key, element of managing. Leadership being about delivering a vision and empowering others to act. Organisations seem less interested in the science of management than they

were and Gaunt believes much of that interest in the past was possibly driven by the insights of management thinker Peter Drucker. There is no equivalent today to advance management’s imperative. Gaunt believes the hiatus in management thinking and interest may be a result of organisational complexity and the pace of change. “We can’t get our heads around the issues managers face because of the complexities of today’s organisation, the global marketplace

and the impacts of new technologies. In 20 years managers will be using tools that haven’t yet been conceived of.” And yet it’s clear that the smooth running of today’s complex organisations owes much to basic management disciplines such as instituting and managing robust systems and processes. The fundamental building blocks of successful organisations – sound management processes and practices and strategic input at board level – remain as relevant today as they ever were. M

OUTSIDE THE CRITERIA Company

Assets ($000s)

Revenue ($000s)

Profit After Tax ($000s)

EBIT ($000s)

Balance Date

809,421

214,510

68,970

658,418

06/12

US$305,000

US$364,000

(US$6,000)

US$199,000

06/13

Ngai Tahu Charitable Trust

Taxed on income at Maori Authority rate.

Rubicon

Financial statements reported in US dollars.

St John NZ

Charitable status, therefore no tax paid.

301,170

237,574

265,918

06/12

Southern Cross Medical Care Society

Exempt from tax due to its status as a friendly society.

581,901

747,212

21,347

394,733

06/13

Tainui Group Holdings

Charitable status, therefore no tax paid.

725,398

222,892

44,776

476,911

03/13

14 | management.co.nz | DECEMBER 2013

Pivotal We make things happen from the inside â&#x20AC;&#x201C; out. Talk to us about putting your business front and centre.

www.deloitte.co.nz

ÂŠ 2013 Deloitte. A member of Deloitte Touche Tohmatsu Limited.

DELOITTE/MANAGEMENT MAGAZINE EXECUTIVE OF THE YEAR

Michael Daniell Outstanding achiever

consummate team player, Michael Daniell is not one to claim the glory for the outstanding success of the company he leads. But his consistent, informed and steady hand is clearly a major factor in the success that sees Fisher & Paykel Healthcare winning the 2013 Top 200 Company of the Year, and Daniell himself taking the Executive of the Year title. Daniell has been thoroughly immersed in the business from his early roles as an engineer on the product design team. That thorough background knowledge has clearly underpinned his steady leadership of a business he sees as having a considerable social obligation. As a global leader in specialist medical devices and systems for use in respiratory and acute care, F&P Healthcare has about 75-80 percent market share in these lifesaving products. Daniell sees the company as having a big obligation to make sure they can provide the necessary equipment as demand grows. Respiratory devices for surgery and acute illness account for about half the company’s revenue. The company’s annual report carries the heart-warming story of Sophie, a tiny premature baby and the F&P Healthcare devices involved in her life-saving care. Most of the other 50 percent of revenue is generated from breathing devices for the treatment of obstructive sleep apnoea (OSA) – suffered by chronic snorers. Not simply an issue of disrupted sleep, OSA is recognised as a factor in strokes and heart disease. The increase in diagnosis and prevalence in an aging – and fatter – Western world demographic pattern, makes it one of the fastest growing medical conditions in the West. 16 | management.co.nz | DECEMBER 2013

Clearly articulated objectives and strategy drive a consistent message to the global F&P Healthcare team, giving them a constant focus. These fundamentals provide the basis for the solid growth and standout performance the company has achieved under Daniell’s direction. And although he travels offshore a great deal, Daniell is present and visible amongst his team when back at head office. His desk sits amongst the others in an open plan environment designed for easy communication between all team members. Not given to making pronouncements outside of the immediate sphere of his company’s operations, Daniell is a reluctant commentator on broader political or economic issues. He has expressed one major concern about New Zealand’s ability to ramp up its performance in the technology sector. F&P Healthcare is a shining example of the type of business that creates huge value for New Zealand. An exporter, it earns 98 percent of its $509 million revenue from overseas; as a technology company it employs skilled labour – 1700 locally and 2750 worldwide – and has a small environmental footprint. And as a growth company it will continue to provide employment opportunities and deliver more benefits year on year for all stakeholders. But there’s a catch: New Zealand needs more skilled workers to support the growth of companies like F&P Healthcare and Daniell worries that our brightest minds head overseas in pursuit of better earning opportunities. And our high cost of housing doesn’t help.

An education system that targets the skills needed in economic growth areas is essential. Making New Zealand an attractive place to live and work – for both talented and ambitious Kiwis and skilled migrants – is a key part of the solution. M

EXECUTIVE OF THE YEAR AWARD JUDGES’ COMMENTS WINNER MICHAEL DANIELL MANAGING DIRECTOR & CEO FISHER & PAYKEL HEALTHCARE Mike Daniell is a long-term Fisher & Paykel man. He’s been with the company for 35 years, and driven Fisher & Paykel Healthcare as MD and CEO since its separation from the appliance and finance side of the business in 2001. Quietly spoken and unassuming, Daniell’s low-key manner belies the phenomenal success and growth rate of the healthcare business he has been immersed in for his working life. He’s proud of his team and downplays his own role in the company’s success. When the New Zealand Herald awarded him New Zealander of the Year – Business, in 2009, he commented that his contribution was “relatively small”. His modesty can’t deny the fact of the rapid but steady and well-managed growth rate of the business that for 20 years has aimed to double its size every five to six years. Although compound annual growth rate has been around 18 percent, F&P Healthcare has resisted the temptation to accelerate growth to unsustainable levels. There’s no doubting Daniell has the technical smarts to underpin his leadership, having achieved a Bachelor of Engineering in electrical engineering with honours from Auckland University. He went on to hold various positions in Fisher & Paykel including product design engineer and technical manager, so he has a thorough appreciation of the business from the ground up. And, the icing on the cake – or perhaps a more fundamental part of the Fisher & Paykel recipe for success – is that Daniell is, the judges said, “a thoroughly nice guy”.

FINALIST SIMON CHALLIES

FINALIST PATRICK STRANGE

MANAGING DIRECTOR RYMAN HEALTHCARE

CHIEF EXECUTIVE TRANSPOWER

Simon Challies was a finalist in this category in 2012 and he impressed the judges again this year. “He dominates the detail,” they said, “and leads one of the best-performing stocks in the country.” Challies joined Ryman Healthcare’s management team the week the company listed in 1999. He’s quoted as saying that never in his wildest dreams did he envisage the rapid growth of the company that has had continuous growth and lifted its underlying profit every year for the last 13. A strong and consistent performer under Challies’ leadership, Ryman features regularly in these awards. He stepped up to the CEO role in 2006 at just 36 years of age and for six months Challies continued to also fill the CFO role. That meant working day and night, seven days a week until he appointed long-time friend Gordon MacLeod as CFO. The pair had become friends in their University of Canterbury days. MacLeod is one of an eight-strong senior management group, a “tight bunch” says Challies, that he relies on a great deal. Each member takes responsibility for making things happen at Ryman’s head office, transferred to the outskirts of Christchurch as a result of the February 2011 earthquake. To relax he spends time with his son playing sport and also has a fitness regime. “I exercise … my wife’s a Pilates instructor, she keeps me challenged. I’m a bit of a music buff as well … I’d have to say most of my collection is rock. I love sampling music on Spotify.”

Dr Patrick Strange joined Transpower in 2007. Board chair Mark Verbiest recently announced Strange’s intention to leave Transpower in early 2014. “Patrick’s departure follows a period of essential investment in the National Grid,” said Verbiest. “He has successfully led the company through its major capital investment programme including the construction of the transmission line through the central North Island, the HVDC Pole 3 Project and the North Auckland and Northland Project to enhance security and reliability of electricity supply in New Zealand. “These new transmission assets reflect investments of $3.8 billion and are critical to our economy. To be able to accomplish this is testament to his skills and resilience as a leader and also to his commitment to the electricity industry and New Zealand,” he said. Strange is credited with transforming Transpower’s reputation with all stakeholders and the creation of a new safety culture. “Patrick will leave with a job well done,” added Verbiest, “but more importantly he has led Transpower through a very challenging period and has created a legacy for the future of all New Zealanders.” Industry insiders say Strange’s shoes will be tough to fill and commend him on navigating his way through the political bureaucracy to undertake major capital projects following years of underinvestment. The judges said Strange had weathered tough public scrutiny to get the job done and, what’s more, delivered a 30.6 percent increase in shareholder value this year.

DECEMBER DECEMBER 2013 2013 | management.co.nz | management.co.nz| | 17

DELOITTE/MANAGEMENT MAGAZINE COMPANY OF THE YEAR

Fisher & Paykel Healthcare Homegrown exemplar

t’s significant that the winners in this category for two years in a row are both healthcare companies; Fisher & Paykel manufacturing products that cater for an aging demographic and Ryman delivering aged-care services. Demand for these products and services is escalating along with changing demographics and increasing investment in healthcare in developing countries. Fisher & Paykel Healthcare’s products for acute respiratory care and obstructive sleep apnoea may not be particularly sexy, but more than seven million patients worldwide, benefit from them each year. During a period in which manufacturing in general has not been strong for New Zealand, Fisher & Paykel has bucked the trend, reinventing itself first as a local manufacturer, after starting corporate life as an importer, then developing the healthcare business – a singular success story. But there was no luck involved in their success trajectory. Theirs is a corporate story of clearly defined strategy, excellently executed. Fisher & Paykel commenced business in 1934 as an importer of refrigerators and washing machines. In 1938 the company started manufacturing white-ware under licence to several major international appliance companies and in the mid-1960s moved to manufacturing products using in-house technology. The involvement in healthcare started in the late 1960s when F&P sought involvement in a business that could benefit from its growing manufacturing

18 | management.co.nz | DECEMBER 2013

and electronic expertise. A prototype respiratory humidifier was taken to production by F&P. Since then the company has constantly invested in R&D to improve its products and developed worldwide distribution. In 2001, as part of a reorganisation, Fisher & Paykel Industries was renamed Fisher & Paykel Healthcare Corporation and a new company, Fisher & Paykel Appliances Holdings, was established to own F&P’s appliances and finance business. In F&P Healthcare’s 2013 annual report, MD and CEO Michael Daniell – this year’s Top 200 Executive of the Year – cited successful new product launches contributing to a strong performance that exceeded expectations. And chair Tony Carter explained the company’s strategies in response to the relatively high level of the New Zealand dollar. These included increasing manufacturing capacity and efficiency of operations in Mexico; introducing higher margin products and continued foreign exchange hedging. To ensure that the company has the capacity to continue to implement the hedging policy as the business grows, the board’s policy is to progressively increase shareholders’ funds. The board has thus maintained dividend payment for the 2013 year at 12.4c per ordinary share – equating to 87 percent of net profit after tax. F&P offers a Dividend Reinvestment Plan (DRP) whereby eligible shareholders can reinvest all or part of their dividends

in additional shares. For the 2013 interim dividend payment, 42 percent of eligible shareholders participated in the DRP – a reflection of shareholders’ support for and faith in the continuing performance of this stock. A critical element in Fisher & Paykel Healthcare’s success is its clearly stated purpose and strategic goals underpinned by a consistent growth strategy. The high level purpose as stated in the annual report is: “to provide an expanding range of innovative medical devices which can help to improve outcomes and efficiency of care for patients in an increasing range of applications, both in hospital and homecare settings”. The goals are to become a $1 billion operating revenue company, and to double constant currency revenue every 5-6 years. The company also commits to good corporate citizenry in tangible ways. It has started a three-year journey towards Certified Emissions Measurement and Reduction Scheme (CEMARS) certification. In 2013, it recycled approxi mately 90 percent of its waste; rainwater run-off from its Auckland site is collected in settlement ponds; and its new Paykel building has been built in line with sustainability best practice. The company commits to long-term relationships with employees and supports various community initiatives – all hallmarks of a business that knows its purpose and the best means of engaging with all stakeholders to best deliver on its strategic goals. M

COMPANY OF THE YEAR AWARD JUDGES’ COMMENTS WINNER FISHER & PAYKEL HEALTHCARE It’s been Fisher & Paykel Healthcare’s year said the judges. It has delivered across the board with strong revenue and profit growth alongside significant expansion. This is a classic example of a local company ‘gone global’ that hasn’t sold out – theirs is a great New Zealand story. The company is a role model and an exemplar of best practice and a strong strategy consistently implemented. In fact all key indicators show a company really hitting its straps after years of consistent delivery. Market capitalisation is up a substantial 60 percent on the previous year; net profit after tax is up 20 percent on an operating revenue increase of 8.6 percent. R&D spending rose nine percent over the previous year, now representing 8.2 percent of operating revenue. Much of its revenue growth has been driven by expanding export markets – it’s now in more than 120 countries – and growth in demand for its products from an aging demographic. Operating efficiencies from its Mexico manufacturing facility has increased profits. The New Zealand currency has been running against Fisher & Paykel over the past year. Despite that challenge, it has innovated and has been reinvesting.

FINALIST AIR NEW ZEALAND

FINALIST EBOS GROUP

Air New Zealand is heading into 2014 in great shape, having made significant progress in 2013 – in an environment where its competitors have struggled. Profit before tax was $256 million, an increase of 172 percent on the previous year. Earnings growth has been driven from improved demand, the benefits of using a modern, more fuel efficient fleet, changes implemented on loss-making long haul routes and stable fuel prices. The company’s return on equity hit 10 percent in 2013, which is the first time that it’s broken into double digits since 2007, before the fuel price skyrocketed, to be followed by the fallout from the global financial crisis. This all bodes well for our national carrier as the trading environment is expected to improve. The secret to Air New Zealand’s success is its drive to deliver excellence in 3 key areas: • Innovation to maintain a top-quartile product and service; • Productivity to ensure the operation is run as efficiently as possible; and • Capital management that has given the company the flexibility to invest in fleet at the right time and price.

With its game-changing acquisition of Australia’s Symbion, EBOS has become the largest diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products, and a leading Australasian animal care products distributor. But chair Rick Christie advises that growth is not an end goal in itself: “The key is to always target being the leader or number two in all the key market segments in which we operate. That is the underlying philosophy that drives EBOS and will continue to do so in the future. The result is consistent, exemplary returns for our shareholders: over the past 10 years we have provided investors with compounding returns of 19 percent per annum. Christie gives MD & CE Mark Waller – the 2010 Top 200 Executive of the Year – much of the credit for the growth of EBOS. He said Waller and his small core group of senior executives are to be congratulated for bringing the Symbion transaction to a successful conclusion. The 2013 result for EBOS, excluding the Symbion trading for one month and one-off transaction costs, represented an underlying lift in EBITDA of 14 percent.

DECEMBER DECEMBER 2013 2013 | management.co.nz | management.co.nz| | 19

Congratulations Mark Julian NZIM/Eagle Technology Young Executive of the Year

â&#x20AC;&#x153;Mark is wise beyond his years, with a personal humility and a compelling drive, and an inherent and deep understanding of leadership.â&#x20AC;? From the judges

We are proud to invest in the leaders of tomorrow with our ongoing support of the NZIM/Eagle Technology Young Executive of the Year Awards. After all, they are the future of New Zealand business.

Mark Julian Senior Business Manager - Dairy Landcorp Farming Limited

Auckland: 09 639 0600 Wellington: 04 802 1400 www.eagle.co.nz

CongratulaƟons to our 19th NZIM/Eagle Technology

Young ExecuƟve of the Year

2013

Mark Julian Senior Business Manager Dairy Mark Julian, Senior Business Manager Dairy at Landcorp Farming Limited, was honoured alongside New Zealand’s leading business individuals and organisaƟons at the DeloiƩe/ Management magazine Top 200 Awards in Auckland on November 28 2013. PRINCIPAL SPONSORS:

Management development compliments of NZIM.

IN ASSOCIATION WITH:

www.nzim.co.nz • www.eagle.co.nz • www.management.co.nz/top200

NZIM/EAGLE TECHNOLOGY YOUNG EXECUTIVE OF THE YEAR

Mark Julian Future-focused farming

t might be hard to imagine a group of people more difficult to manage than dairy farmers spread across an area from Kaitaia to Balclutha. But the way Mark Julian, Landcorp Farming’s senior business manager, dairy, has bridged generation gaps and communicated with a personal touch despite large distances has earned him the NZIM/Eagle Technology Young Executive of the Year award for 2013. Julian was nominated by Andrew MacPherson, Landcorp Farming’s national manager of strategy and performance. MacPherson said that Julian managed a significant part of the dairy farming business, overseeing revenue of about $70 million, leading a team of business managers – seven of them direct reports – driving productivity and profitability. He is responsible for an asset worth $450 million, covering 46 farms that are milking 38,000 cows. Julian grew up on a dairy farm in Taranaki, where his family is still farming 200 cows. He did an agricultural science degree at Massey University and post graduate study before starting work at Landcorp as a business manager. He was identified as having potential while still at university. MacPherson said Julian was able to coach people through performance issues as well as dealing with broader governance concerns. “Mark has acquired a range of experiences which have required him to demonstrate not only a thorough technical understanding of his business but he has displayed a very high level of emotional and empathetic skills.” Landcorp has recently invested about $350 million in developing farms around the South Island and north of 22 | management.co.nz | DECEMBER 2013

the North Island. Julian has been involved in that process, leading teams that have performed business case analyses and managed the subsequent investment to build the businesses. MacPherson said human resource management on dairy farms was a constant challenge. But the way that Julian had been able to get staff on side, even those much older than him and sometimes from the other side of the island, was testament to his management ability. “Mentoring of his key reports – all older than himself – ensuring attention to cost control, farm safety, staff recruitment and equipping individuals to outperform their own performance objectives are all true strengths of Mark.” Julian had shown an ability to identify staff members who could step up within the business, MacPherson said. “Mark paints a picture of where he wants the Landcorp dairy farms to go, then sets about explaining this to our people… he has had to deal with staff at all levels, some of whom are set in their ways; in these situations he has always been able to ‘take people with him’.” Julian said some of the biggest challenges in his role so far had been the recent drought and the variation in milk powder prices. The key for him was to position the business’ resources to make the most out of the variability of the business and provide a good return for shareholders. “I’m getting the business focused on the detail of farming.” He said he maintained strong relationships with farmers across such a large area by travelling regularly. “I probably have one night a week away somewhere. It’s about having that contact with people on the ground so you know

what’s happening. You can do so much via email but that one-on-one is important.” Julian said he was driven by the potential for Landcorp to be the leaders in New Zealand dairy farming. One of the ways it could set an example was by demonstrating responsible uses of resources, he said. “You can’t just have plans of increasing profit and product without those plans being checked against environmental sustainability.” It was important to see the business’ main asset – its land – being looked after for future farmers, Julian said. M

YOUNG EXECUTIVE OF THE YEAR AWARD JUDGES’ COMMENTS WINNER MARK JULIAN SENIOR BUSINESS MANAGER DAIRY LANDCORP FARMING Mark Julian is a far-sighted young leader with the potential to make a difference. He is wise beyond his years and combines personal humility and compelling resolve. Mark recognises the rich potential of diversity in enterprise and community. He has an inherent and deep understanding of leadership that will take him into significant national leadership roles.

FINALIST KATE SCOTT

FINALIST JAMES MCGLINN

MANAGING DIRECTOR BTW SOUTH

CHIEF EXECUTIVE & CO-FOUNDER EVENTFINDA

Kate Scott is a driven young business woman who successfully balances business, family and farming with style. She is a strong and capable young leader with the vision to create the company of which she is now the managing director. She skilfully leads people by example and through effective communication. Kate Scott is primed and motivated to succeed in enterprise and in community leadership. She is an inspirational young leader.

James McGlinn is a charismatic leader who galvanises people to achieve goals. He is an extraordinary young entrepreneur who will make his mark on New Zealand. His high energy level is infectious and drives him to find new challenges and business opportunities. His vision is fixed beyond business. He wants to help lead the world to better places. James McGlinn is set for success.

DECEMBER 2013

| management.co.nz | 23

QBE CHAIRPERSON OF THE YEAR

Dr David Kerr Best practice

avid Kerr successfully straddles dual careers as a practising medical professional and as an accomplished director and board chair. He is recognised in both the health and corporate sectors as an outstanding achiever. Having joined the Ryman Healthcare board in 1994 Kerr was appointed chair in 1999. He has led the board strategy that has built one of New Zealand’s most successful enterprises. He is an advocate of best practice management and governance. Kerr is a general practitioner who operates a private practice in Christchurch. His commitment to and deep understanding of health-related issues makes him an invaluable contributor to various sector boards and organisations. He was the founding chair of Pegasus Medical Group formed by a group of GPs to deliver improved health outcomes for the citizens of Canterbury through innovative community and primary healthcare. He is an advisor to the Canterbury District Health Board and a director of Pharmac, the government’s pharmaceuticals purchasing agency. He is also a trustee of Health Ed Trust, the leading education provider in the aged care sector. A fellow and past president of the New Zealand Medical Association, Kerr was awarded a Fellowship with Distinction by the Royal New Zealand College of Practitioners. Ryman Healthcare was awarded Company of the Year in these awards last year and there is no doubt that Kerr and his board are continuing to provide

24 | management.co.nz | DECEMBER 2013

steady strategic direction to a business that has created a highly successful and sustainable business model. In virtually every measure Ryman presents a picture of unqualified success over the past year, and over the past decade. In the 2013 year net profit after tax increased from $120.7 million to $136.7 million; Ryman shareholders will receive a 19 percent lift in their annual dividend to 10c per share. The company has lifted its underlying profit every year for the last 11 years. Operating cash flows at record levels with $222m generated, has allowed the company to self-fund its building activity. The company built 517 new retirement village units and 226 new aged care rooms during the year. In Ryman’s annual report Kerr explained ; “This model of sustainable profitable growth starts from having a very efficient and cost-effective in-house design and construction team. As a result we achieve a healthy development margin when we build new villages. This in turn funds the construction of large scale aged care and community facilities at our villages. Villages are self funding.” Ryman shares have risen about 160 percent from $2.10 to $5.50 in two years and its property portfolio has tripled over the past decade. Kerr also stated: “The proof of our capital efficiency is demonstrated by our long-term cash flows. We raised $25 million in 1999 – and since then we have invested over 1.2 billion building new villages and have paid out a growing dividend stream of $290 million.” Ryman has a long-term horizon. In his report Kerr stated that, “it can take up to 10 years before you see normal levels

Dr David Kerr, you have been named QBE Insurance Chairperson of the Year 2013, achieving outstanding results and rising to great heights.

Congratulations David, you are a star!

www.qbe.co.nz

QBE Insurance (International) Limited ACN 000 000 948

of activity from when a new village first opens. This means that our tail of earnings from completed villages will continue to grow in the future, as a direct result of what we have built over the last 10 years.” New Zealand, along with the rest of the developed world, is on the brink of a demographic shift that Ryman has

been planning for and will benefit from over the next 10 years, as it plans to open two new villages each year. Currently 5000 New Zealanders move into retirement each year. With the ‘baby boomer’ generation bubble, for the next 10 years that number will quadruple to around 20,000 per year. A population statistic that

a smart company has been able to build towards and be ready for. Kerr’s combination of specialist sector knowledge and strong governance and leadership skills make him – and his record at Ryman that speaks for itself – a worthy winner of this year’s Chairperson of the Year Award. M

CHAIRPERSON OF THE YEAR JUDGES’ COMMENTS WINNER DR DAVID KERR

FINALIST HON SIR MICHAEL CULLEN

FINALIST CHRIS MOLLER

The judges noted that these awards recognise sustainable high performance from New Zealand’s top companies, their boards and executives. Dr David Kerr joined the Ryman board in 1994 and has been chair since 1999 – presiding over this outstanding performer’s consistent strong growth period, and there is more to come. The board and executive have stayed committed to a sustainable – and conservative - growth model that served them well throughout the GFC and saw them well-positioned to take advantage of growth opportunities as the economy started to recover. Dr Kerr can take considerable pride and credit in the results Ryman is consistently delivering. As a practicing health professional and member of other health industry boards, Kerr is completely immersed in and dedicated to the betterment of the healthcare sector.

Post is one of the industries suffering most from digital disruption and NZ Post is fronting the challenges intelligently with a measured response. It’s making the hard decisions around restructuring that will cut jobs and implementing a strategy that moves the business from physical to digital services. Despite the challenges the NZ Post Group had a successful year, increasing operating profit from $80 million to $111 million (41 percent). The chair and board are providing sound direction in a market area that is facing massive shifts.To future-proof the business digital services are moving from being an adjunct to being a core part of the business’s service strategy. New Zealand Post has developed a digital platform to build its relationship with both sending and receiving customers; it will be bringing this to market in the current fiscal year. A key digital initiative was the launch in July of RealMe. The online identity verification system, RealMe was developed in partnership with the Department of Internal Affairs and has significant potential across the public and private sectors. Identity management is a major growth area in the digital economy and this initiative could be one of New Zealand Post’s smartest investments in the future. Converga and Localist also offer potential good future growth opportunities. Sir Michael can claim credit for a steady hand in turbulent times for the sector.

Chris Moller has been on the board of Meridian Energy since 2009 and was appointed chair in January 2011. Meridian delivered strong results this year despite major challenges including market disruption and intense retail competition plus preparation for partial listing. Moller is a widely experienced and valued non-executive director who also chairs SKYCITY Entertainment Group, NZ Transport Agency and New Zealand Cricket Inc boards. He has extensive experience in New Zealand and international business at both director and executive level. He is the former CEO of the New Zealand Rugby Union, co-leading New Zealand’s successful bid to host the Rugby World Cup 2011. His 15 year career in the dairy industry included roles as deputy CE of Fonterra and CFO of the New Zealand Dairy Board. Moller is also a director of Westpac New Zealand. Previous directorships include NZX, Synlait, the International Cricket Council, Cricket World Cup 2015, Rugby New Zealand 2011 and National Foods (Pty).

26 | management.co.nz | DECEMBER 2013

Growthâ&#x20AC;&#x2122;s knocking at the door. How will you answer? This yearâ&#x20AC;&#x2122;s ANZ Privately-Owned Business Barometer holds three distinctive keys for businesses wanting to open the door to growth. Contact your ANZ Relationship Manager for a complimentary copy or download it from anzbarometer.co.nz

anz.co.nz ANZ Bank New Zealand Limited. 10/13

15835

MINTER ELLISON RUDD WATTS EXCELLENCE IN GOVERNANCE AWARD

Auckland International Airport ‘Faster, Higher, Stronger’

he board of Auckland International Airport managed a successful transition to a new chief executive, Adrian Littlewood, this year – always one of the most significant responsibilities and challenges for any board. And in May, to ensure a smooth transition, the board announced the appointment of Sir Henry van der Heyden to replace Joan Withers as chair when she was to step down at the AGM in October. Littlewood was an internal appointment after an international search and, said Withers in her final address, “he has more than lived up to the board’s expectations. His restructure of the company’s general management team is complete, he has delivered a new five-year business strategy and he has significantly progressed the company’s long-term planning as we now start to move forward on the imperative of designing an

airport that will service Auckland, and the country’s needs for the next 30 years and beyond.” With the view that continuous improvement in safety should be a priority the board decided to create a safety and operational risk committee, taking this role over from the former audit and risk committee which will focus on audit and financial risk. During the year the board approved an upgrade to the airport’s marine response fleet and fire engines. The company has also run crisis incident response scenarios with key stakeholders to hone its ability to work together in any emergency response. In her outgoing address Withers also referenced a board diversity initiative: “As one of New Zealand’s largest listed companies, we have an important role to play in improving corporate governance just one example of our leadership in this

The 2013 Excellence in Governance Award is a major category within this year’s 24th annual Deloitte/Management magazine Top 200 Awards programme. Formerly known as the ‘Ethical’ and subsequently the ‘Responsible’ Governance Award, this year marks a substantial change in the way this honour is awarded. Unlike all other categories (with the exception of the Young Executive of the Year award) this award was, in the past, entered by application/nomination, which meant that many of the same or similar entries from the same entities, were received each year. This year, as with the other categories except Young Executive, the panel of judges was able to select candidates from the entire Top 200 list of companies, based on criteria determined with the approval of the Institute of Directors (IOD). This does not mean any rejection of the ‘ethical’ or ‘responsible’ criteria of the past, but rather a recognition that those criteria are just part of the overall governance excellence that the judges will be searching for.

28 | management.co.nz | DECEMBER 2013

area is demonstrated by the board’s commitment to the Future Director scheme. “The scheme is focused on improving the number, quality and diversity of ‘board-ready’ candidates able to populate director positions and thus start to overcome the traditionally cited impediment to getting fresh faces around New Zealand board tables. “New Zealand’s inaugural Future Director, Sheridan Broadbent, was appointed by Auckland Airport early this calendar year.” The Future Director participates in and contributes to board and board committee discussion, with the important caveat that the Future Director is not involved in decision making. If they have performed well they would be assisted in attaining directorships at the end of their Future Director term. Withers noted also that Auckland Airport had evolved its focus in recent years from just providing infrastructure to having a strong focus on passengers. “that is an ongoing and never-ending journey.” “We have evolved from an essential part of central and local government, into a good corporate citizen - one that advocates for what we think is in the

very best interests of our passengers and customers, and of course New Zealand.” One constant she said was that the company continued to be committed to achieving long-term growth in value for shareholders. In that respect it has delivered another 12 months of strong performance providing solid returns to investors despite ongoing challenges in the marketplace.

Total profit after tax was up an impressive 25.1 percent to $177.97 million, resulting in total dividends increasing by 14.3 percent to 12 cents per share. In its annual report Auckland Airport also noted it had shown leadership in the development of new routes and promoted greater understanding of new travel markets. While there had been reductions in some routes, their investment and work

with airline partners had resulted in a number of international and domestic airlines announcing new capacity and flights. These successes, it said, are helping to drive New Zealand’s travel, trade and tourism ambitions. The company is optimistic about the 2014 full financial year while noting with some caution that there remains volatility in global economies.

EXCELLENCE IN GOVERNANCE AWARD JUDGES’ COMMENTS WINNER AUCKLAND INTERNATIONAL AIRPORT Auckland International Airport successfully delivered on its 2009-2013 business strategy, Flight Path for Growth, which fundamentally changed its business philosophy, improved its performance and developed its focus on ‘Making Journeys Better’ for all customers and partners of Auckland Airport. It’s not resting on its laurels however and has developed Its new five-year strategy, ‘Faster, Higher, Stronger’ – responding to the challenges it has identified from changing aviation markets. The judges noted particular strength in the board’s management of the transition to a new CEO and a new board chair. “This is one of the most critical responsibilities for the board to get right,” noting the positive outcome from the international search for a new CEO and the appointment of a strong internal candidate in Adrian Littlewood. His performance has, in the words of then chair, Joan Withers, “exceeded expectations”. And the advance notice of the replacement for Withers herself by Sir Henry van der Heyden allowed for a smooth transition to a new board chair. The board’s initiative in developing potential new board talent and encouraging diversity was also noted. Managing ‘good corporate citizen’ initiatives – including further investment in safety and an new approach to risk management – were balanced well alongside a strong fiscal performance.

30 | management.co.nz | DECEMBER 2013

FINALIST ASUREQUALITY

FINALIST NEW ZEALAND POST GROUP

AsureQuality is a state owned enterprise that provides a wide-range of services to the food and primary industries. These services include mandatory meat inspection, product and process verification, inspection, auditing, testing, training and biosecurity surveillance and response. The Crown requires, in its statement of corporate intent, that the SOE be “As profitable and efficient as comparable businesses that are not owned by the Crown.” AsureQuality supports customers and regulators to ensure food and other products are safe and meet specifications set by countries or other standard setting bodies. This helps customers achieve market access, gain competitive advantage and protect their products, brands and reputations by ensuring their food products are safe and of good quality. The organisation achieved a very strong financial result in 2013 posting a net profit after tax of $7.4 million on total revenues of $155 million. There was a significant focus on refreshing the strategic direction and communicating this to all stakeholders. Clearly articulated vision and purpose statements were a key part of this communication: The organisation’s vision is to be ‘Global Experts in Food Safety and Quality’ and its purpose statement is ‘Together we build and protect consumer confidence’. In terms of New Zealand’s export trade in food products, there is no more important role than that fulfilled by AsureQuality.

With sound direction from its chair, Hon Sir Michael Cullen, and board, New Zealand Post is meeting the challenges of the digital age up front. Whilst some traditional services are rapidly dying – this year saw 63 million fewer items within the Post network – there are new opportunities. The Group has identified some of these in financial services and the parcels and logistics businesses, as well as the provision of services through digital channels, and is clearly focused on developing a new service model for a sustainable future. Despite the challenges in its core business, New Zealand Post continues to play an active role in the communities it serves, through a range of partnerships and initiatives. Its board recognises the importance of supporting resilience in its communities. It supports healthy activities with Athletics NZ, Water Safety NZ and Waka Ama NZ. It promotes literacy through the NZ Post Children’s Book Awards and the NZ Post Book Awards. New Zealand Post set new sustainability targets for the next three years across all areas of its sustainability programme. As well as a continued focus on environmental efficiencies in fuel energy and waste there was a renewed focus on workplace sustainability with a programme focused on ethics, diversity and people capability.

Most IMproved PerforMANCe AWArD 2.0 Marsh is proud to be the sponsor of the Most Improved Performance Award at the Deloitte / Management Magazine Top 200. As the worldâ&#x20AC;&#x2122;s leading insurance broker and risk advisor, we recognise the importance of being the highest performing organisation within your field. We therefore acknowledge those who are striving to become New Zealandâ&#x20AC;&#x2122;s top organisations. Congratulations to the winner, we salute your achievements.

Call Marsh today 0800 627 744

LEADERSHIP, KNOWLEDGE, SOLUTIONS... WORLDWIDE

marsh.co.nz/corporate

MARSH MOST IMPROVED PERFORMANCE

Air New Zealand Relentless improvement

ir New Zealand delivered a superb result this year with earnings before tax up 181 percent to $256 million in an environment where its competitors have struggled. It has been a leader of innovation, product and service standards for more than five years and has a long list of industry awards to show for it. Two former chief executives, Sir Ralph Norris (prior to gaining his knighthood) and Rob Fyfe won Deloitte/ Management Executive of the Year honours during their reigns as CEO. The relatively benign volatility in the jet fuel price and foreign currency rates over the past 18 months has helped to highlight results from the operational improvements Air New Zealand has made. Key areas driving the airline’s performance are: • Dynamic management that takes on appropriate risk and responds quickly to external factors that impact on its business. • Cost reductions that have cut $250 million from the business’s base operating cost. • Top quartile product and service in the Asia Pacific region making Air New Zealand the airline of choice for premium 34 | management.co.nz | DECEMBER 2013

tourist and business class travellers. • Consolidation on several long haul routes – Japan, China and Hong Kong – which has helped stem losses and improve the yield on these routes. • Strategic alliances formed with key airlines outside of the star alliance: Virgin Australia on the trans-Tasman and Cathay Pacific on the Hong Kong route. • Fleet upgrading at a bargain price. (Brokers Forsyth Barr estimate that Air New Zealand may have saved up to $250 million on eight wide-bodied B787-9 aircraft due to smart negotiating around delivery delays.) That’s just part of a fleet replacement programme now in its final stages that will significantly improve operating costs and reduce maintenance costs. Outgoing chair John Palmer said, in his final annual report, that the collapse of Ansett Australia and the events of 9/11 made for a challenging environment in which to start rebuilding Air New Zealand. He said since then the airline has benefited from outstanding leadership, cultivating a culture of innovation and calculated risk-taking. He cited a few examples including the safety videos, the Skycouch and the self-check kiosks.

He said the airline today is very different to that of a decade ago. Fuel prices now are at levels that would have been unimaginable then and yet Air New Zealand has remained profitable through a range of adverse conditions and events. Further, it is one of very few airlines in the world to maintain an investment grade credit rating. Palmer acknowledged incoming chair Tony Carter and said it had been a privilege to lead “this iconic company”. CEO Christopher Luxon who has been in the hotseat for almost a year, continued that theme in his annual report address, stating that, “The fortunes of Air New Zealand and our nation are inextricably linked. “We play a critical role in connecting families, friends, tourists and businesses, to, from and within New Zealand,” he continued. Luxon referred to the airline’s increased investment to 22.99 percent of Virgin Australia, citing the strategy that gives Air New Zealand efficient and costeffective exposure to the growing domestic Australian market. While Virgin’s recent financial performance had been disappointing, large investments were

being made and a rebranding to appeal to all market segments. He was confident of future success. Luxon commended his executive team – “The best I have worked with in my career.” After this great result however,

he’s not about to relax the performance pressure. “Our focus on improvement is relentless and over the coming years we will continue identifying ways to materially increase our efficiency, effectiveness and ultimately our profitability.

“We are focused on further improving on this result in the 2014 financial year. Based on our forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging.” M

MOST IMPROVED PERFORMANCE AWARD JUDGES’ COMMENTS WINNER AIR NEW ZEALAND

FINALIST FARMERS’ MUTUAL GROUP

FINALIST TRANSPOWER

The judges said Air New Zealand’s stellar performance in the 2013 financial year, delivering great results across the board was a consequence of good strategy well executed. The company’s return on equity hit 10 percent in 2013, which is the first time that it’s broken into double digits since 2007, before the fuel price skyrocketed, to be followed by the fallout from the global financial crisis. The company delivered a superb 2013 result with earnings before tax up 181 percent. The secret to its success is its drive to deliver excellence in three key areas: innovation to maintain a top-quartile product and service; productivity to ensure the operation is run smoothly; and capital management that’s given the company the flexibility to invest in fleet at the right time and price. Key performance factors in 2013 included a substantial increase in revenue from international, foreign exchange gains of $7 million compared with a loss of $68 million in 2012, a reduction of $20 million in salaries and wages costs due to reduced headcount and productivity improvements, lower fuel costs and an optimised global network with fewer underperforming routes. Air New Zealand is headed into 2014 in great shape with earnings forecast to increase further from the substantial uplift reported for this year.

Farmers Mutual Group’s net profit after tax increased from $8.5 million to $31.2 million for the year ended 31 March 2013. This is the best profit result in its 108 year history. Reasons for the increase include: solid investment returns; and strong growth in client numbers from having an advice-led service approach - helping customers be aware of risks and delivering a personalised service. And net premium revenue increased from $132 million to $148 million in 2013 - this was attributable to the Christchurch earthquake and a general increase in premiums across all insurance companies. However, the fact that FMG is a mutual group means it is able to keep the premium increases to a minimum. The judges commented that FMG was able to capitalise on being an insurance brand that was less tarnished by Christchurch, although there were Christchurch claims still to be settled. Net claims incurred were much higher in 2012 ($86 million) compared with 2013 ($72 million). Chair Greg Gent commented in the annual report that it was exciting to be part of an organisation that is managing to grow rapidly in these tough economic times and that serves rural New Zealand so well. FMG’s marketing taps into its obvious constituency of Rural New Zealand.

The SOE completed a strong year. The company improved on financial and reliability targets, commissioned two of its three major transmission projects and made major improvements to its asset management capability. The judges said chief executive Patrick Strange had weathered tough public scrutiny to get the job done and, what’s more, delivered a 30.6 percent increase in shareholder value this year. Strange announced recently he would leave the company at the beginning of 2014, ending a six-year tenure at the national grid operator during which time he oversaw a $3.8 billion capital investment in the country’s electricity backbone. “Patrick’s departure follows a period of essential investment in the National Grid,” said chair Mark Verbiest. “Two of the critical areas that Patrick has focused on during his time with Transpower,” added Verbiest, are the transformation of Transpower’s reputation with our customers, landowners and communities and the creation of a new safety culture – both I know are of paramount importance to him. “Patrick will leave with a job well done; but more importantly he has led Transpower through a very challenging period and has created a legacy for the future of all New Zealanders.”

DECEMBER 2013

| management.co.nz | 35

ILUME BEST GROWTH STRATEGY

EBOS Group Billion dollar club Mark Waller – managing director, Ebos Group and Patrick Davies – chief executive officer, Symbion.

he 2013 financial year was momentous for EBOS. They successfully completed the largest transaction in the history of the company with the transformational purchase of Sy mbion, a leading Australian pharmaceutical and veterinary wholesaler/distributor. EBOS CEO Mark Waller had stated the goal, at last year’s annual general meeting, of becoming a $1 billion market capitalisation business in five years. In this year’s annual report he says that EBOS’ market capitalisation sits at circa $1.4 billion, and “we’re now truly a leading Trans-Tasman business in our core operations. “This does not imply we can now relax because we have reached our target early; it demonstrates the potential for this business if it remains dynamic and open to the right opportunities – big or small.” Chair Rick Christie said at the time of the purchase that EBOS only buys good companies; “and Symbion is not just a good company, it’s a great company with great management.” Market reaction supports that belief. EBOS has had spectacular growth by acquisition this year but Christie advises that growth is not an end goal in itself: “The key is to always target being the leader or number two in all the key market segments in which we operate.

36 | management.co.nz | DECEMBER 2013

That is the underlying philosophy that drives EBOS and will continue to do so in the future. The result is consistent, exemplary returns for our shareholders: over the past 10 years we have provided investors with compounding returns of 19 percent per annum.” The increase in size from the purchase gives EBOS the scale to invest in the infrastructure to create further efficiencies for their manufacturing and pharmaceutical partners, Christie said. The transaction expands the shareholder base, delivers an improved NZX 50 position and increased broker coverage. EBOS has now applied for a dual listing on the ASX. EBOS has been very successful in creating shareholder value through acquisitions, namely PRNZ in 2007 and Masterpet in December 2011. While the Symbion acquisition is significantly larger than the previous ones, it was well structured and provided the opportunity for EBOS to secure a viable business of scale in Australia. Christie said the compelling opportunity and value of the Symbion transaction were endorsed by new and existing shareholders who supported the placement of new shares and participated in the entitlement offer. Shareholders contributed $239 million towards the $1.1 billion purchase price. The balance comprised new and

replacement financing facilities totalling $370 million and the issue of $498 million in new shares to Sybos Holdings (Zuellig Group) which now holds 40 percent of total shares on issue. Christie welcomed Zuellig as a new cornerstone investor, “given its international expertise in healthcare and pharmaceuticals.” Another highlight for EBOS this year enthused Mark Waller, was the advice from Crown-owned Health Benefits that EBOS had been chosen as the ‘preferred respondent’ to streamline the distribution of medical supplies across the national public hospital network (DHBs) and similarly distribute pharmaceuticals to certain public hospitals. “This highlights our specialised logistics ability which is a core competency of our businesses and demonstrates that we can win against global players in this area,” he said. Waller concluded his message in his company’s annual report by noting the company’s strategy of looking for global trends, analysing their local impact and positioning the business to capitalise on this ahead of the market; “As markets shift, so do we.” “We will not be standing still,” he said, “be that seeking organic growth within our existing businesses, driving efficiencies and looking at further acquisition opportunities as long as they meet our existing criteria.” M

BEST GROWTH STRATEGY AWARD JUDGES’ COMMENTS WINNER EBOS GROUP EBOS have had a massive year. The judges commented that the company’s growth by acquisition is a very clear strategy and this year’s major purchase is a huge stepchange for the organisation that should be recognised. The Symbion purchase has resulted in a 42.1 percent increase in capital value for the year ending 30 June 2013, and market capitalisation up 250 percent. Its impressive 2013 financials include an operating profit up 37 percent. The increase in financial performance was achieved in 2013 due to the first full year of trading for Masterpet, acquired during the previous year. Masterpet met all its performance targets. The 2013 revenue also includes one month of Symbion trading.

FINALIST AOTEA ENERGY (trading as Z ENERGY) The judges said Aotea Energy had a clearly articulated strategy. It had identified the marketing advantages of ‘flying the New Zealand flag’, as Z Energy competing against the big international brands. In the annual report CEO Mike Bennetts said Z is now the most preferred retail fuel brand in the market, 16 percent higher than the industry average and six percent higher than their closest competitor. It had stuck to its strategy of continual evolution towards being a world-class Kiwi company under the Z brand - clearly a winning strategy as the rebranded Z outlets showed a nine percent increase in sales compared with a decline in those outlets still operating under a format unchanged since Shell’s ownership. Being the only New Zealand-centric business in this market gives Aotea a number of advantages including nimble decision-making to take advantage of opportunities as they arise, and the fact that it does not have an upstream business competing for capital. Aotea Energy sold 60 percent of its shares in the company by listing on the NZX in August 2013. The retail bond issue was to repay debt – remaining bank debt was retired - and fund general expenses. Importantly for shareholders and investors, financial outcomes improved for the third year in a row despite intense competition.

FINALIST FISHER & PAYKEL HEALTHCARE As a global leader in their market and with growing demand for their products it’s hard to see where F&P Healthcare could go wrong with their growth strategy. But the continuing high New Zealand dollar has meant the company has looked for other ways to deliver increased margins within the business. Over the past year they increased manufacturing at their Mexico facility and they plan to produce about 50 percent of their high volume consumables there within three years – relative to 23 percent currently. Ongoing investment in research and development underpinned the introduction of a number of new products into markets around the world over the past year. The uptake of innovative new products drove strong growth in the second half and contributed to increased gross margin. Continuing commitment to lean processes and lean manufacturing, and implementing supply chain efficiencies will contribute to improving performance. F&P Healthcare’s new state-of-theart Paykel building at East Tamaki will accommodate New Zealand operations’ growth for a number of years. And the developed world’s aging demographic, together with increasing investment in healthcare in developing countries, provide significant opportunity for growth.

DECEMBER 2013

| management.co.nz | 37

Business. Leaders. We help develop both.

As proud sponsor of the Deloitte/Management Magazine 2013 Best Growth Strategy Award, ilume congratulates EBOS Group on their success.

A u c k l a n d . We l l i ngton. Sy dney. www.ilume.co.nz

FEDERATION VISIONARY LEADER

Sir Murray Halberg ONZ Turning glory to good

n our rugby-mad, sports-mad little country, where so often the national mood seems to balance delicately on the outcome of an important match or series, we revere our outstanding sportsmen and women. But, as the foundation that bears Sir Murray Halberg’s name says, even in an assembly of the greats of sport there are some who stand apart. They are those, such as Sir Murray, who give back to the community in ways far beyond the glory of even great wins. They are those who use their fame and pulling power to create legacies that spread wider even than the glow of Olympic golds. And many great achievers choose to take the opportunities their talent provides to explore what the wider world can offer. Sir Murray chose to give back to New Zealand, and specifically to create opportunities, through his foundation,

for those with disabilities to experience the advantages that involvement in sport can deliver. This year marks the 50th anniversary of the founding by Sir Murray of the Halberg Disability Sport Foundation and, coincidentally, Sir Murray’s 80th birthday. The foundation aims to enhance the lives of physically disabled people, their families and communities, by enabling them to participate in sport and recreation. Halberg AllSports is the foundation’s youth programme to ensure physically disabled young people can experience the power of sport to enhance their lives, within their homes, schools and communities. Sir Murray was behind the reinventing of what was the NZ Sportsman of the Year Awards, now the Westpac Halberg Awards, the foundation’s flagship fundraising event. These awards are New Zealand’s

Achievements and honours 2009 Named 94th New Zealand Olympian 2008 Awarded NZ’s highest non titular honour, the Order of New Zealand 2008 Awarded Blake Medal for service to athletics and children with disabilities 1987 Awarded Knighthood 1963 Established Halberg Disability Sport Foundation (formerly Halberg Trust) 1962 Gold Medal for 3 miles, Empire Games, Perth 1960 Gold Medal for 5000 metres, Rome Olympics 1958 First New Zealander to run mile in under four minutes, Dublin World Records for two and three miles

pre-eminent sports awards to honour and celebrate sporting excellence. The foundation has worked tirelessly for 50 years to make Sir Murray’s vision a reality for the country’s physically disabled people, their families and communities. From humble beginnings, the foundation now stands as the lead agency for physical disability sport in New Zealand. Sir Murray explains that for 50 years he has witnessed first-hand how sport can be a stepping stone to enhance the lives of disabled people. Sport can provide health benefits, new skills, social networks, confidence and ambition that can be transferred into many other parts of their lives. But it’s always been his ultimate goal for the foundation to do itself out of a job. “Although we have helped thousands of disabled people over the years, we still have a long way to go before disabled people have the same opportunities to participate in sport – and in society in general.” Sir Murray Halberg is without doubt an outstanding New Zealander and philanthropist. There is no more deserving candidate for this 2013 Federation Visionary Leader Award. M DECEMBER 2013 | management.co.nz | 39

NZ MANAGEMENT COMPANY PROFILE

A brand and reputation

made in New Zealand

othing puts the power of brand and reputation to the test quite as much as building a product or starting a business from the ground up. Reputation and brand are neither synonymous nor interchangeable, rather they are completely interrelated. Reputation is a company-centric concept and also a very personal one based on credibility and past performance, while a brand proposition is all about having relevance, a point-of-difference and the promise of added value. Brand and reputation can support or even undermine each other. But when they are highly effective in working together, they will get under the skin of your audience, providing a powerful and compelling reason to select your brand over a competitor. Five years ago, Sharon Henderson and Murray Reid, both established and respected leaders in the New Zealand advertising industry, put that theory

40 | management.co.nz | DECEMBER 2013

well and truly to the test when they left multi-national agency roles to launch Federation – a 100 percent New Zealandowned advertising and communications agency. Equipped with their professional and personal reputations, together with a relevant brand name for their new agency proposition, they started what has become one of the largest independent agencies in New Zealand. Testament to the brand and reputation strategy they developed for their business is the client base they’ve attracted since. Federation’s clients now include some of New Zealand’s largest companies and brands – Fisher & Paykel Finance, Cavalier Bremworth, the Warehouse Group, Meridian and Fonterra’s RD1, while the agency’s global brand wins include the world’s biggest airline – Emirates, and some of the safest cars in the world, Volvo. The Federation story began when

Henderson and Reid saw an opportunity to leverage the reputations they had built over almost 20 years in senior executive roles including managing director and CEO roles with the largest multinational network agencies in the world.

They saw an opportunity for an entirely different agency brand – a 100 percent New Zealand agency that broke the traditional international network paradigm. Henderson says, “We set out to create a flexible agency business model that is more true to the way Kiwis do business in New Zealand. We purpose built our agency around our market’s need for an agency partner with a more transparent, egalitarian business model, one that would deliver a more hands-on, strategic partnership with New Zealand’s top marketers and corporates.”

NZ MANAGEMENT COMPANY PROFILE

It was April 2008. Henderson had left her managing director role at multinational agency DDB, and Reid had left his MD role at consumer engagement agency, WRC.

Former Clemenger NZ and Colenso BBDO chairman for more than 30 years, Roger MacDonnell, who is himself testament to the critical role that reputation plays in business, says about Henderson; “Sharon worked in our company for over a decade. One of the things I enjoyed most about working with her was that she intuitively looked for big ideas that could be delivered over different channels. It was something she built her reputation on, and something we were at the forefront on in New Zealand, particularly with clients like BNZ and Air New Zealand.”

The freedom to think, act and express ideas without boundaries and internal hierarchies is in Federation’s DNA – and in its success to date. Henderson says, “It’s a very different concept to what the broader advertising industry has historically bought into, and perhaps never more so than now with the biggest global agency merger in history having recently taken place – and the potential of that merger for worldwide jostling and global account and people fallout.” While establishing a New Zealand agency that offered a genuinely

differentiated proposition to marketers was their primary driver, Reid says, “We had another motivation too, one that has remained a hallmark of our agency, a fundamental part of our culture and a critical human resource strategy. “We wanted to create a different kind of workplace for Kiwi ad agency people – a genuine, people-focussed company and a serious alternative to the multinational networks focussed on endless financial reporting to unknown people somewhere in New York. “Our ‘open door’ policy is more an ‘open building’ one at Federation. Our agency culture is hugely enhanced by our workspace which is deliberately open and collaborative for both our clients and our team.” It’s a philosophy that’s perhaps most visibly evidenced by the agency’s boardroom – a cleverly built, harmonious space set apart from the main agency area, yet it remains open and without doors. Reid and Henderson confirm Federation is in full free flight mode. Its continuous growth over the last five years has made Federation one of the biggest independent agencies in New Zealand, while in business model terms, the agency is able to continuously evolve its capabilities to stay ahead of the curve on changing consumer media consumption patterns, digital engagement platforms and communication trends. Iconic Kiwi brands Fisher & Paykel Finance and Cavalier Bremworth appointed Federation as their agency within year one. Head of product and marketing Hugh Robinson adds, “Fisher & Paykel Finance has been strategising, creating, learning and delivering campaigns to market with

Federation for five years now. We value their breadth of ability across everything from television, direct and digital, to SMS and experiential marketing. Our favourite achievement to date is the incredibly

Murray Reid and Sharon Henderson . successful Q Card brand transformation.” But the last word goes to the global brand with one of the biggest reputations in the world. Chris Lethbridge, regional manager for global airline Emirates says, “We broke from the norm of international agencies when we appointed local New Zealand agency Federation. The key to Federation’s successful relationship with us is not only their complete understanding of our global brand but also our customers’ needs and desires. Federation have this belief and understanding in our business. Their way of working goes beyond the client/ agency relationship; we operate as one.”

DECEMBER 2013 | management.co.nz | 41

JUDGES

The Judges

TOP 200

Suzanne Snively, ONZM, is managing director of MoreMedia Enterprises and chairs the Agri-women Development Trust. She is a member of the Ministry of Transportâ&#x20AC;&#x2122;s Performance and Risk Advisory Group and director at Transparency International. Her other directorships include the Health Research Council, WelTec and Whitireia Community Polytechnic. She is patron at Vincents, a Wellington community-based initiative providing access to arts and craft facilities, skilled tuition and materials within a supportive environment.

42 | management.co.nz | DECEMBER 2013

Sandy Maier is an independent director with a strong track record in management consulting. Educated at Harvard Law School and Yale University, his current positions include director at Ngai Tahu Holdings and independent chairman at Learning Media. He chairs Radius Property, Pathfinder Asset Management and GEON Group. His roles as an independent director span Click Clack, Ultimate Health Care Group, Perpetual Capital Management and McConnell Group. He is also an independent director at Fronde, Mighty River Power and Taranaki Investment Management.

Neil Paviour-Smith has over 20 yearsâ&#x20AC;&#x2122; experience in various roles in domestic equity markets. He is managing director of Forsyth Barr, having previously been research director, following portfolio management and research roles with Westpac Investment Management and National Mutual Funds Management. He is a director of New Zealand Exchange and of the New Zealand Institute of Chartered Accountants. He is a Fellow of the Institute of Finance Professionals NZ Inc and formerly chairman of the NZ Society of Investment Analysts 1999-2001. He is also a member of the Institute of Directors, the Institute of Chartered Secretaries NZ and the CFA Institute.

CONVENOR OF JUDGES & YOUNG EXECUTIVE OF THE YEAR AWARD Reg Birchfield is a business journalist and publisher. As a founding director of Fourth Estate Holdings in 1971, he was editor and publisher of National Business Review, the NZ Business Who’s Who, Capital Letter and other publications. He established Profile Publishing, publisher of NZ Management and other magazines, in 1984. He is now a director of RJMedia and a Life Fellow of the New Zealand Institute of Management.

YOUNG EXECUTIVE OF THE YEAR AWARD

Jo Brosnahan is the Founding Chair of Leadership New Zealand, the Chair of Northpower Fibre and Chair of Hunter Downs Development Company, together with other governance roles. She has her own leadership business, Leaders for the Future. She was formerly the CEO of the Auckland Regional Council.

Mervin Singham’s career encompasses management roles in both the private and public sector. He was a member of the Executive Leadership Team of the Department of Internal Affairs for five years. He has also attended executive management programmes at the London Business School and Harvard Business School in Boston. Before assuming the position of Director of the Office of Ethnic Affairs in 2004, Mervin spent eight years working in the field of human rights. He held the position of Chief Mediator at the Human Rights Commission. Prior to that, he worked for several years in a multinational company based in New Zealand.

Glenys Talivai (nee Powell) is General Manager, Sales & Marketing at MAS where she has executive oversight and responsibility for all aspects of sales, marketing and product development. This includes the provision of advice to members and prospective members through a national sales force across seven branch locations; leading the development and marketing of the MAS brand and guiding the development of MAS’s financial products and services. Prior to joining MAS in 2009, Glenys held numerous roles at ANZ Bank. Glenys was Young Executive of the Year for 2012.

Judges who had a personal interest in any of the companies they were assessing, declared a conflict of interest and did not vote with respect to those companies.

DECEMBER 2013

| management.co.nz | 43

CRITERIA

NZ Management magazine’s listing of New Zealand’s largest organisations includes publicly listed companies and larger unlisted companies required to disclose audited financial statements, including New Zealand subsidiaries and branches of overseas companies. It also includes producer boards, cooperatives, local authority trading enterprises and state-owned enterprises. To be included in the Top 200, organisations must operate for a commercially determined profit and be liable for tax on earnings. Companies fully owned by another New Zealand company are excluded. All figures are the latest available, verified and audited.

COMPANIES Revenue

As disclosed in the entity’s Statement of Income or equivalent. Includes sales (excluding gross commission sales), rent, dividends, share of income from associated companies and interest received.

Profit After Tax

Includes equity accounted profit and profit attributable to non controlling (minority) interests.

EBITDA

Earnings before interest, tax, depreciation and amortisation and impairments of property, plant and equipment or intangible assets.

EBIT

Earnings before interest and tax, includes unusual income and expense items. Not shown for the financial institutions.

Return On Revenue

Calculated by profit before interest and tax divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A.

Total Assets

As disclosed in the entity’s financial statements. Includes current and non-current assets, investments, tangible and intangible assets, deferred tax assets and goodwill.

Total Equity

As disclosed in the entity’s financial statements including non controlling (minority) interests. For New Zealand branches of overseas companies, the amount shown as owing to head office is taken as deemed equity.

Return on Total Equity/Total Assets

Calculated by profit after-tax divided by average total equity/total assets over the past two years. Where an entity is in its first year of operation the current year total equity/total assets figure has been used as an approximate.

Proprietorship Ratio

Total Equity (see above) divided by average total assets over the past two years expressed as a percentage.

Financial institutions includes banks, finance companies, insurance companies (life/ fire and general/superannuation). These organisations are ranked on total assets and appear separately. The financial institution results are based on the entity’s legal set of accounts and not those accounts which include funds under administration (ie, accounts which include assets that are not legally owned by that institution, but administered by it).

FINANCIAL INSTITUTIONS Revenue

As disclosed in the entity’s Statement of Income or equivalent but not reinsurance revenue (insurance companies).

Profit After Tax

Is shown for information purposes only and no ranking is given.

Total Equity

Pre-tax Return on Revenue

Calculated by profit before tax (and after interest) divided by revenue. Where no profit figures are shown, this calculation is not applicable as indicated by N/A.

Proprietorship Ratio

Total Equity (see above) divided by average total assets over the past two years expressed as a percentage.

GENERAL Companies that have operated less than six months are not included in this listing. Majority shareholdings greater than 50 percent by other New Zealand entities are indicated in brackets. A key to these abbreviations follows the listing. A * indicates companies that are more than 50 percent overseas-controlled. Not disclosed (N/D) is used where figures were not disclosed by the company or disclosed but not able to be verified. An (-) indicates the company was not ranked last year.

44 | management.co.nz | DECEMBER 2013

What if…?

New Zealand and disruptive innovation

Thomas Pippos, CEO, Deloitte New Zealand.

y now, the concept of disruptive innovation is firmly entrenched in management vocabulary. More recently, the term “digital disruption” has gained favour, the principal difference being the unprecedented speed of today’s disruptive innovations – technologies such as mobile, social and the cloud – are radically changing entire markets and industries, sometimes seemingly overnight. Deloitte Australia, in their “Building the Lucky Country” series, asks how digital disruption can be prepared for, and responded to, at a country level? Shifting this idea to New Zealand seems intuitive. A combination of our famed entrepreneurial spirit and necessity born out of our relative size and distance from world markets, should lead Aotearoa to have a go at a coordinated approach to harness “the cloud” for national competitive advantage. What if New Zealand Inc. chose to play the role of disruptor on a global scale? There are innumerable examples of small companies disrupting larger established enterprise. Cloud technologies, in particular, have enabled new competitors to enter the market and challenge the incumbents with

new and innovative business models. The Deloitte Fast 50 index is full of companies achieving outrageous revenue growth by either creating products and services for the cloud, or taking advantage of cloud offerings to quickly scale up with their more traditional offerings. But what can help a business rapidly scale up can also help a business scale down. There are increasingly more examples of large organisations embracing the role of disruptor, using technology and innovation to be more nimble – what some have called the agile enterprise. Analytics, in particular, can enable new levels of flexibility and agility that were once the domain of small businesses and startups. So how would a country take on the role of disruptor? What types of things could we do collectively to contribute to the creation of “an agile country?” One way could be by adapting a framework we call “scaling edges” from an organisational to a national level. The framework, with appropriate adjustments, could be overlaid on New Zealand Inc. On an organisational level, scaling edges includes a number of strategies to help leaders embrace innovation on the edge of their businesses that respond to the big shifts present in any particular industry. The framework advocates that the best strategy is to identify opportunities on the edge of one’s current business model, to invest in and scale these opportunities, and over time integrate them into the core of the business. Innovation from the edge requires one to build in order to learn.

The central premise of this approach is the acknowledgement of the risks associated with innovation, particularly when tackling the core of your business. By picking innovations on the edge that have the potential to transform the core, organisations can have more success with innovation. By moving at speed organisations can overcome resistance to change. In our experience we have found that leadership and culture are two of the most critical elements to getting this right. The tone is set at the top. Leaders do not need to be the best innovators but they do need to be supportive – they need to embrace change and the desire to do things differently. In their communications, and more so through their actions, they can unleash innovation or quickly squash it. Given the economic environment in which New Zealand has been operating for some time, innovation is a leadership challenge which is essential to tackle. While its rewards are not as immediate as a ‘cost reduction’ initiative they tend to be longer lasting and more fundamental in nature. In this “what if ” scenario, the first step would be to adopt disruption as a top priority – potentially initially at the edge. It’s just about embracing change and the opportunity that disruption provides. What’s certain is that given the speed of digital disruption, it is no longer a case of “how much time do we have until we have to respond” but rather, “how do we get started right now?” M DECEMBER 2013

| management.co.nz | 45

Here’s to…

The success of New Zealand’s Deloitte/Management Magazine Top 200 winners and finalists – and our sponsors who made the event possible.

TOP 200 WINNERS FOR 2013 DELOITTE/MANAGEMENT MAGAZINE EXECUTIVE OF THE YEAR:

MIKE DANIELL

DELOITTE/MANAGEMENT MAGAZINE COMPANY OF THE YEAR:

FISHER & PAYKEL HEALTHCARE

FEDERATION VISIONARY LEADER:

SIR MURRAY HALBERG

QBE INSURANCE CHAIRPERSON OF THE YEAR:

DR DAVID KERR

MINTER ELLISON RUDD WATTS EXCELLENCE IN GOVERNANCE: AUCKLAND INTERNATIONAL AIRPORT

ILUME BEST GROWTH STRATEGY:

EBOS GROUP

MARSH MOST IMPROVED PERFORMANCE:

AIR NEW ZEALAND

NZIM/EAGLE TECHNOLOGY YOUNG EXECUTIVE OF THE YEAR:

For photos and highlights of the event, please visit www.top200.co.nz

MARK JULIAN

TOP 200 A-Z LISTING

Abano Healthcare Group....................................... 146 ABB...................................................................... 142 AgResearch........................................................... 172 Air New Zealand ...................................................... 4 Airways Corporation of New Zealand .................... 164 Alcatel-Lucent New Zealand.................................. 160 Alliance Group........................................................ 27 Allied Foods (NZ)................................................... 113 Alsco Investments NZ............................................ 200 Amcor Packaging (New Zealand)............................. 91 ANZCO Foods......................................................... 30 Aotea Energy............................................................ 8 Aotearoa Fisheries................................................. 174 Apple Sales New Zealand........................................ 64 Ashburton Trading Society..................................... 126 AsureQuality......................................................... 176 Auckland International Airport................................. 76 Avis Rent A Car..................................................... 190 Avon Pacific Holdings............................................ 186 AWF Group........................................................... 189 Ballance Agri-Nutrients............................................ 44 Bayer New Zealand............................................... 168 Beca Group............................................................. 82 Bidvest New Zealand............................................... 53 BMW New Zealand............................................... 193 BP New Zealand Holdings......................................... 7 Bridgestone New Zealand...................................... 136 Briscoe Group......................................................... 77 British American Tobacco Holdings (NZ)................... 31 Bunnings................................................................ 56 Bupa Care Services NZ.......................................... 137 CablePrice (NZ)..................................................... 155 Cavalier Corporation............................................. 144 CB Norwood Distributors....................................... 141 CDC Pharmaceuticals............................................ 153 Cerebos Gregg’s.................................................... 175 Chorus.................................................................... 34 Christchurch City Holdings....................................... 39 Coca-Cola Holdings NZ........................................... 71 Coles Group New Zealand Holdings....................... 143 Compass Group New Zealand............................... 177 Contact Energy........................................................ 13 Datacom Group....................................................... 45 DB Breweries.......................................................... 73 Delegat’s Group.................................................... 131 DFS New Zealand.................................................. 194 DHL Holdings (New Zealand)................................... 97 Dow AgroSciences (NZ)......................................... 183 Downer New Zealand.............................................. 28 DSE (NZ)............................................................... 101 Dunedin City Holdings........................................... 120 Ebos Group............................................................. 21 Exego (NZ) Holdings.............................................. 139 ExxonMobil New Zealand Holdings.......................... 12 Fairfax New Zealand Holdings................................. 61 Farmlands Co-operative Society............................... 26 Fernhoff................................................................ 132 Fisher & Paykel Appliances Holdings........................ 36 Fisher & Paykel Healthcare Corporation.................... 69 Fletcher Building....................................................... 2 Fonterra Co-operative Group..................................... 1 Foodstuffs (Auckland)................................................ 6 Foodstuffs (Wellington) Co-operative....................... 15 Foodstuffs South Island........................................... 11 Ford Motor Company of New Zealand..................... 94 Freightways............................................................. 83 Frucor Beverages..................................................... 81

Fuji Xerox New Zealand......................................... 121 Fujitsu New Zealand.............................................. 188 Fulton Hogan.......................................................... 10 G R Media Holdings.............................................. 116 General Cable Holdings NZ.................................... 114 Genesis Power........................................................ 18 GlaxoSmithKline NZ.............................................. 185 Goodman Fielder New Zealand................................ 37 Goodman Property Trust........................................ 180 Hallenstein Glasson Holdings................................. 140 Hansells Food Group............................................. 156 Harvey Norman Stores (NZ)..................................... 50 Hellaby Holdings..................................................... 68 Hewlett-Packard New Zealand................................. 55 Holden New Zealand............................................... 90 Honda New Zealand.............................................. 179 Housing New Zealand............................................. 33 IBM New Zealand................................................... 78 Imperial Tobacco New Zealand................................ 86 Infratil..................................................................... 14 Inghams Enterprises (NZ) Pty................................... 99 Ingram Micro New Zealand Holdings....................... 63 ITW New Zealand.................................................. 173 JB Hi-Fi NZ............................................................ 133 Juken New Zealand............................................... 118 Kathmandu Holdings............................................... 88 Kimbyr Investments............................................... 191 Kiwi Income Property Trust..................................... 150 Kiwirail Holdings..................................................... 42 Kordia Group.......................................................... 95 Kraft Food Investments (New Zealand)................... 102 Kura........................................................................ 70 Landcorp Farming................................................. 161 Linde Holdings New Zealand................................. 124 Lion - Beer, Spirits & Wine (NZ)................................ 59 Livestock Improvement Corporation....................... 148 Mainfreight............................................................. 20 Market Gardeners................................................. 106 MARS New Zealand.............................................. 154 Mazda Motors of New Zealand.............................. 138 McDonald’s Restaurants (New Zealand)................. 145 Mercedes-Benz New Zealand................................ 152 Meridian Energy........................................................ 9 Methanex New Zealand.......................................... 47 Michael Hill International........................................ 67 Mighty River Power................................................. 19 Millstream Equities................................................ 123 Mitre 10 New Zealand............................................ 54 Mitsubishi Motors New Zealand............................ 127 National Institute of Water & Atmospheric Research........................................ 199 NDA Group........................................................... 170 Nestle New Zealand................................................ 92 New Zealand Investment Holdings......................... 169 New Zealand Post................................................... 23 New Zealand Radio Network................................. 198 New Zealand Sugar Company................................ 111 New Zealand Wool Services International............... 147 Newmont Waihi Gold............................................ 178 Nobilo Holdings.................................................... 151 Norske Skog Tasman.............................................. 122 Northpower.......................................................... 109 Nuplex Industries.................................................... 24 NZ Snack Food Holdings........................................ 107 NZPM Group......................................................... 125 Oceana Gold Holdings (New Zealand)...................... 74 OfficeMax Holdings................................................. 93

Open Country Dairy................................................. 57 Opus International (NZ)........................................... 80 Oregon Group......................................................... 87 Orica Investments (NZ).......................................... 104 Pact Group Holdings (NZ)...................................... 100 Pan Pac Forest Products......................................... 105 Pepsico New Zealand Holdings.............................. 184 Pfizer New Zealand............................................... 157 PGG Wrightson....................................................... 32 PMP (NZ).............................................................. 135 Port of Tauranga.................................................... 117 Ports of Auckland.................................................. 158 Powerco.................................................................. 84 Precinct Properties NZ........................................... 182 Pumpkin Patch...................................................... 108 Rakon................................................................... 165 Ravensdown Fertiliser Co-operative......................... 35 Rayonier New Zealand.......................................... 195 Reckitt Benckiser (New Zealand)............................ 196 Renaissance Corporation....................................... 192 Restaurant Brands NZ............................................ 103 Retirement Care (NZ)............................................ 162 RTA Pacific (NZ)....................................................... 49 Ryman Healthcare................................................. 167 Sanford................................................................... 75 Scales Corporation................................................ 128 Schneider Electric (NZ)........................................... 187 Sealed Air (New Zealand)...................................... 149 Siemens (NZ)......................................................... 197 Silver Fern Farms..................................................... 17 Sime Darby Motor Group......................................... 62 Skellerup Holdings................................................. 159 Sky Network Television............................................ 43 SKYCITY Entertainment Group................................. 46 Smiths City Group................................................. 134 Solid Energy NZ....................................................... 58 Steel & Tube Holdings.............................................. 85 Suzuki New Zealand.............................................. 181 Synlait Milk............................................................. 79 Tasman Steel Holdings............................................. 40 Telecom Corporation of New Zealand........................ 5 Television New Zealand........................................... 96 The Colonial Motor Company.................................. 60 The New Zealand Refining Company..................... 112 The Tatua Co-operative Dairy Company.................. 129 The Warehouse Group............................................. 16 Toll Group (NZ)....................................................... 89 Tourism Holdings.................................................. 130 Toyota New Zealand............................................... 38 Trade Me Group.................................................... 171 Transfield Services (New Zealand)............................ 65 Transpacific Industries Group Finance (NZ)............... 98 Transpower New Zealand........................................ 41 TrustPower.............................................................. 48 Turners & Growers................................................... 52 Unilever New Zealand........................................... 110 Unison Networks................................................... 166 Vector..................................................................... 29 Vitaco Health Group.............................................. 163 Vodafone New Zealand........................................... 22 Watercare Services.................................................. 72 Wesfarmers Industrial and Safety Holdings NZ....... 115 Westland Co-operative Dairy Company.................... 66 Weyville Holdings.................................................. 119 Wilson & Horton..................................................... 51 Woolworths New Zealand Group............................... 3 ZESPRI Group.......................................................... 25 DECEMBER 2013

| management.co.nz | 47

Previous Year

Rank 1

Revenue ($000s)

Company Name (Head Office) Fonterra Co-operative Group Auckland Fletcher Building Auckland Woolworths New Zealand Group Auckland Air New Zealand (73% NZG) Auckland Telecom Corporation of New Zealand Wellington

% Change

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

Co-op

18,836,000

-5.7

736,000

17.9

1,533,000

*NZSX

8,539,000

-3.7

337,000

74.6

777,000

5,618,422

3.5

128,918

29.2

413,936

NZSX

4,655,000

3.1

182,000

156.3

763,000

*NZSX

4,192,000

-16.9

238,000

-79.4

978,000

Foodstuffs (Auckland) Auckland BP New Zealand Holdings Wellington Aotea Energy (50% I, 50% NZSF) 1 Wellington Meridian Energy (50% MF, 50% MSOE) Wellington Fulton Hogan Christchurch

Co-op

3,920,896

5.4

21,495

-11.2

N/A

3,606,614

2.5

100,426

-19.7

186,291

2,996,800

-6.1

57,300

-42.5

175,200

SOE

2,712,900

5.3

295,100

295.4

781,200

2,704,743

10.0

7,937

123

-89.3

113,445

Foodstuffs South Island Christchurch ExxonMobil New Zealand Holdings Auckland Contact Energy (52.2% OEPH) Wellington Infratil Wellington Foodstuffs (Wellington) Co-operative Lower Hutt

Co-op

2,623,829

2.5

15,600

-35.8

N/A

2,560,203

2.6

1,853

161

-88.4

44,420

*NZSX

2,528,000

-6.6

199,000

4.5

598,000

NZSX

2,441,000

7.6

77,000

-39.4

450,600

Co-op

2,416,172

0.8

(7,350)

177

-136.0

N/A

NZSX

2,277,363

30.8

145,328

61.2

227,449

Co-op

2,053,040

-1.9

(31,121)

187

-201.0

1,571

SOE

2,052,368

-9.5

104,524

21.0

319,962

NZSX

1,903,128

-1.0

114,761

69.5

474,422

NZSX

1,885,672

4.0

65,911

-18.1

135,056

NZSX

1,823,754

27.6

28,207

0.9

58,243

1,785,000

11.0

55,900

-68.1

489,100

SOE

1,698,770

27.2

120,998

-28.7

264,619

NZSX

1,672,848

3.3

45,295

-29.8

120,623

Co-op

1,460,904

-3.5

7,569

124

-63.1

25,456

Co-op

1,398,756

N/A

3,108

150

N/A

12,576

Co-op

1,371,187

-8.6

(50,800)

191

-464.3

(40,448)

1,301,866

10.4

30,911

67.8

102,207

NZSX

1,284,869

1.8

206,231

2.2

629,498

1,208,722

0.3

(19,183)

185

-579.1

(3,466)

The Warehouse Group 2 Auckland Silver Fern Farms Dunedin Genesis Power (50% MF, 50% MSOE) Auckland Mighty River Power 3 Auckland Mainfreight Auckland Ebos Group Christchurch Vodafone New Zealand 4 Auckland New Zealand Post (50% MSOE, 50% MF) Lower Hutt Nuplex Industries Auckland ZESPRI Group Mt Maunganui Farmlands Co-operative Society 5 Dunedin Alliance Group Invercargill Downer New Zealand Auckland Vector Auckland ANZCO Foods Christchurch

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 48 | management.co.nz | DECEMBER 2013

NEW ZEALAND COMPANIES

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

% Return on Revenue

Total Assets ($000s)

Rank

992,000

5.3

14,373,000

-4.9

5.0

6,748,000

11.0

45.76

07/13

557,000

6.5

7,103,000

-5.0

4.6

3,554,000

9.6

48.75

06/13

297,659

5.3

4,129,177

-0.5

3.1

1,660,250

8.0

40.11

06/12

347,000

7.5

5,612,000

2.8

3.3

1,816,000

10.4

32.81

06/13

415,000

9.9

3,493,000

-4.7

6.6

1,413,000

15.7

39.47

06/13

59,679

1.5

1,658,100

2.5

1.3

599,423

3.7

36.60

03/13

161,122

4.5

1,211,462

-4.8

8.1

285,942

42.0

23.02

12/12

133,500

4.5

1,668,000

2.6

3.5

641,600

8.9

38.96

03/13

542,400

20.0

7,737,400

-11.0

3.6

4,688,000

6.2

57.07

06/13

40,132

1.5

1,735,253

6.4

0.5

430,096

1.8

25.55

06/12

25,980

1.0

920,998

7.3

1.8

283,922

5.9

31.91

02/13

31,492

1.2

1,083,943

5.1

0.2

116,064

114

1.6

10.97

12/12

331,000

13.1

6,197,000

1.4

3.2

3,537,000

5.7

57.47

06/13

297,100

12.2

5,439,400

2.8

1.4

1,935,500

3.9

36.07

03/13

15,065

0.6

785,766

16.9

-1.0

112,032

116

-6.5

15.37

03/13

183,224

8.0

995,738

35.6

16.8

411,765

39.9

47.61

07/13

(24,869)

-1.2

796,365

18.1

-4.2

325,768

-9.0

44.30

09/12

220,060

10.7

3,751,239

3.3

2.8

1,949,710

5.6

52.83

06/13

247,762

13.0

5,802,055

-1.3

2.0

3,181,748

3.7

54.48

06/13

104,623

5.5

942,960

2.8

7.1

389,232

17.8

41.84

03/13

51,807

2.8

2,531,739

284.8

1.8

304,877

11.0

19.12

06/13

236,000

13.2

2,255,700

10.6

2.6

306,800

16.2

14.29

03/13

151,022

8.9

16,139,560

1.8

0.8

1,089,066

11.8

6.81

06/13

79,837

4.8

1,258,297

2.9

3.7

562,775

8.0

45.36

06/13

21,596

1.5

477,477

15.0

1.7

78,225

138

9.3

17.53

03/13

6,744

0.5

335,494

100

N/A

113,205

115

N/A

17.53

06/13

(61,804)

-4.5

579,707

26.4

-9.8

294,733

-15.9

56.78

09/12

67,464

5.2

521,412

-10.2

5.6

80,315

136

34.8

14.57

06/13

455,420

35.4

5,747,077

2.3

3.6

2,258,462

9.4

39.75

06/13

(16,009)

-1.3

481,247

-10.8

-3.8

211,344

-8.5

41.41

09/12

EBIT ($000s)

% % Return Total Equity Change on Assets ($000s)

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 49

Previous Year

Rank 31

Revenue ($000s)

Company Name (Head Office) British American Tobacco Holdings (NZ) Auckland PGG Wrightson Christchurch Housing New Zealand (100% NZG) Wellington Chorus 6 Wellington Ravensdown Fertiliser Co-operative Christchurch

% Change

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

1,171,403

6.7

114,954

-4.8

168,973

*NZSX

1,136,802

-16.2

(306,505)

197

-1,353.4

33,792

1,081,000

4.5

120,000

-24.1

743,000

NZSX

1,064,000

N/A

171,000

N/A

670,000

Co-op

1,046,199

-2.5

3,304

149

10.3

48,256

NZSX

1,016,852

-0.9

(8,182)

180

-144.4

122,865

*NZSX

981,336

-9.9

37,819

434.7

135,328

933,960

19.6

1,619

163

-19.9

11,827

928,315

8.8

70,712

-27.3

235,817

926,006

1.9

69,792

-22.2

151,889

SOE

925,900

16.6

263,700

211.0

667,900

SOE

911,900

2.5

174,700

107.6

645,200

*NZSX

885,156

4.9

132,215

7.7

351,224

Co-op

882,577

-4.0

21,388

-10.0

87,031

869,721

10.4

35,970

43.7

82,865

SKYCITY Entertainment Group Auckland Methanex New Zealand Auckland TrustPower Tauranga RTA Pacific (NZ) Wellington Harvey Norman Stores (NZ) Auckland

NZSX

864,516

0.4

127,382

-8.3

296,365

818,576

14.6

51,313

97.2

73,359

NZSX

806,976

-0.1

123,351

-6.3

288,746

773,561

-17.5

(541,358)

199

-390.5

28,544

704,468

-3.9

15,637

-27.2

23,007

Wilson & Horton Auckland Turners & Growers Auckland Bidvest New Zealand Auckland Mitre 10 New Zealand Auckland Hewlett-Packard New Zealand Auckland

699,558

35.4

(83,957)

192

-255.3

89,071

*NZSX

672,125

3.7

(13,278)

183

29.7

10,479

667,125

8.7

21,367

10.0

39,441

Co-op

656,301

9.6

(2,894)

171

-186.0

3,446

647,771

-12.0

(92,504)

194

-242.5

(4,309)

641,896

9.0

(2,679)

170

-233.1

28,392

640,943

-5.7

23,234

178.7

47,684

SOE

634,200

-35.5

(335,400)

198

-734.3

(18,800)

634,036

-6.0

67,830

29.5

127,318

NZSX

614,407

13.1

14,800

-5.1

27,373

Fisher & Paykel Appliances Holdings Auckland Goodman Fielder New Zealand Auckland Toyota New Zealand Palmerston North Christchurch City Holdings (100% CCC) Christchurch Tasman Steel Holdings Auckland Transpower New Zealand (50% MF, 50% MSOE) Wellington Kiwirail Holdings (50% MF, 50% MSOE) 7 Wellington Sky Network Television Auckland Ballance Agri-Nutrients Tauranga Datacom Group (52% EM) Wellington

Bunnings Auckland Open Country Dairy Waharoa Solid Energy NZ (50% MF, 50% MSOE) Christchurch Lion - Beer, Spirits & Wine (NZ) Auckland The Colonial Motor Company Wellington

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 50 | management.co.nz | DECEMBER 2013

NEW ZEALAND COMPANIES

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

% % Return Total Equity Change on Assets ($000s)

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

167,417

14.3

521,561

-1.9

21.8

134,378

106

78.5

25.52

12/12

(296,275)

-26.1

619,508

-36.8

-38.3

256,106

-73.5

32.01

06/13

281,000

26.0

17,244,000

8.5

0.7

13,326,000

0.9

80.45

06/13

351,000

33.0

3,333,000

N/A

624,000

N/A

80.45

06/13

25,775

2.5

737,366

-15.2

0.4

358,465

0.9

44.61

05/13

77,631

7.6

1,421,601

-2.2

-0.6

590,784

-1.4

41.09

03/13

101,162

10.3

1,450,725

-9.8

2.5

730,793

5.2

47.78

06/13

7,640

0.8

335,420

101

21.0

0.5

54,399

158

2.9

17.76

03/13

139,657

15.0

2,575,631

4.2

2.8

1,450,379

5.0

57.46

06/13

95,271

10.3

997,262

-49.6

4.7

442,084

6.8

29.70

06/12

479,600

51.8

5,443,300

11.0

5.1

1,410,200

18.1

27.25

06/13

184,000

20.2

1,009,600

-76.3

6.6

587,400

8.6

22.28

06/13

216,964

24.5

1,900,293

-3.2

6.8

1,181,897

10.9

61.19

06/13

39,239

4.4

567,603

-2.9

3.7

404,323

5.5

70.18

05/13

55,078

6.3

374,196

12.5

10.2

141,902

103

25.9

40.15

03/13

219,581

25.4

1,652,019

-3.7

7.6

812,891

15.7

48.27

06/13

53,002

6.5

522,610

10.6

10.3

167,970

35.0

33.76

12/12

222,759

27.6

2,976,271

6.5

4.3

1,551,763

7.9

53.77

03/13

(595,485)

-77.0

837,943

-45.1

-45.8

311,161

-93.2

26.33

12/12

23,007

3.3

268,471

114

7.0

6.0

194,562

8.4

74.91

06/12

(40,543)

-5.8

1,358,001

-16.3

-5.6

833,106

-9.3

55.92

12/12

(11,140)

-1.7

458,695

-5.0

-2.8

279,530

-4.7

59.38

12/12

31,939

4.8

212,474

132

15.9

10.8

109,501

117

20.6

55.32

06/13

(1,882)

-0.3

162,479

151

-1.5

-1.8

55,589

155

-5.2

33.95

06/13

(47,272)

-7.3

197,660

139

-24.8

-40.2

(210,575)

199

N/A

-91.45

10/12

15,842

2.5

495,644

1.2

-0.5

37,909

172

-6.8

7.70

06/12

35,831

5.6

343,128

-7.1

6.5

236,435

11.7

66.36

07/12

(274,200)

-43.2

859,200

-26.4

-33.1

91,600

129

-130.3

9.04

06/13

103,198

16.3

972,290

4.1

7.1

703,259

10.1

73.80

09/12

23,689

3.9

222,588

123

2.5

6.7

133,675

107

11.5

60.80

06/13

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 51

Previous Year

Rank 61

(-)

104

Revenue ($000s)

Company Name (Head Office) Fairfax New Zealand Holdings Wellington Sime Darby Motor Group Auckland Ingram Micro New Zealand Holdings Auckland Apple Sales New Zealand Auckland Transfield Services (New Zealand) 8 Auckland Westland Co-operative Dairy Company Hokitika Michael Hill International Queensland Hellaby Holdings Auckland Fisher & Paykel Healthcare Corporation Auckland Kura (50% AF) Nelson Coca-Cola Holdings NZ Auckland Watercare Services (100% AC) Auckland DB Breweries Auckland Oceana Gold Holdings (New Zealand) Dunedin Sanford Auckland Auckland International Airport Auckland Briscoe Group Auckland IBM New Zealand Lower Hutt Synlait Milk Rakaia Opus International (NZ) Wellington Frucor Beverages Auckland Beca Group Auckland Freightways Auckland Powerco 9 New Plymouth Steel & Tube Holdings Lower Hutt Imperial Tobacco New Zealand Lower Hutt Oregon Group Auckland Kathmandu Holdings Christchurch Toll Group (NZ) Auckland Holden New Zealand Auckland

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

611,753

0.9

(708,998)

200

-928.0

199,397

590,184

15.5

12,363

100

54.2

20,064

582,750

-9.9

(7,422)

178

-689.6

6,128

571,358

38.0

5,515

130

-40.5

8,043

557,144

N/A

11,984

102

N/A

32,486

Co-op

556,635

1.2

12,950

258.6

46,647

*NZSX

549,933

7.4

40,032

9.6

63,350

NZSX

545,583

9.6

18,751

-2.9

36,691

NZSX

509,839

8.6

77,053

20.2

140,695

497,226

4.7

5,198

132

-51.5

42,012

494,314

-6.0

53,115

-20.2

113,863

482,620

9.2

40,346

189.1

327,173

476,044

-3.4

26,237

-2.6

57,849

*NZSX

475,466

-4.7

44,163

-33.1

187,341

NZSX

466,102

-0.6

20,884

-6.4

58,787

NZSX

458,379

5.1

177,967

25.1

365,319

NZSX

454,466

3.3

30,468

10.7

48,812

430,948

6.0

36,784

14.0

60,854

NZSX

420,396

11.4

11,528

106

163.0

39,019

411,945

3.6

23,411

-4.9

39,127

406,894

-3.7

22,590

-31.2

47,761

406,545

-0.1

36,526

-13.0

59,406

NZSX

406,342

6.2

40,347

9.0

79,385

401,427

7.1

62,076

81.9

209,785

*NZSX

394,982

-2.8

15,585

18.7

27,949

394,160

13.7

22,381

4.6

36,884

393,947

2.7

95,178

219.1

120,157

*NZSX

384,897

10.8

44,174

26.7

73,459

384,419

1.4

(35,937)

190

-216.3

(2,100)

383,574

20.3

10,874

110

57.4

15,253

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 52 | management.co.nz | DECEMBER 2013

% Change

NEW ZEALAND COMPANIES

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

(599,112)

-97.9

1,635,974

-24.6

-37.3

839,563

-77.3

44.12

06/12

15,297

2.6

268,629

113

13.0

4.9

(7,654)

197

N/A

-3.02

06/12

1,972

0.3

219,012

126

-0.7

-3.4

(5,312)

196

N/A

-2.42

12/12

8,043

1.4

81,420

188

59.9

8.3

14,896

189

45.6

22.51

09/12

17,640

3.2

389,710

N/A

157,324

N/A

22.51

06/12

24,128

4.3

429,527

13.4

3.2

211,843

6.4

52.42

07/13

50,275

9.1

348,182

7.6

11.9

206,865

20.0

61.58

06/13

28,682

5.3

390,198

59.1

5.9

209,040

10.4

65.79

06/13

114,289

22.4

618,597

8.1

12.9

372,231

21.4

62.53

03/13

23,716

4.8

762,417

3.5

0.7

429,234

1.2

57.28

09/12

89,493

18.1

712,756

-1.5

7.4

309,672

17.3

43.13

12/12

135,151

28.0

8,239,133

4.3

0.5

5,766,751

0.7

71.47

06/13

38,593

8.1

297,824

106

-10.1

8.3

202,404

12.6

64.33

09/12

75,425

15.9

636,137

-9.2

6.6

227,208

14.7

33.99

12/12

40,380

8.7

774,279

-0.7

2.7

555,918

3.8

71.55

09/12

303,266

66.2

3,938,552

1.6

4.6

2,499,507

7.2

63.97

06/13

42,684

9.4

191,831

142

-7.5

15.3

128,581

109

22.6

64.43

01/13

50,856

11.8

301,415

105

20.7

13.3

140,236

105

27.8

50.88

12/12

28,837

6.9

346,067

24.8

3.7

164,038

9.2

52.63

07/13

33,718

8.2

273,012

112

9.0

8.9

101,831

124

24.4

38.90

12/12

36,593

9.0

610,206

4.1

3.8

471,236

4.9

78.78

12/12

50,540

12.4

176,947

147

1.4

20.8

104,878

121

36.0

59.70

03/13

66,891

16.5

433,265

-1.0

9.3

187,299

22.4

43.02

06/13

139,053

34.6

1,912,742

1.0

3.3

477,906

13.0

25.11

03/13

22,604

5.7

222,358

124

-3.5

6.9

157,187

10.1

69.43

06/13

32,560

8.3

146,460

158

15.8

16.4

36,018

174

40.3

26.40

09/12

106,275

27.0

884,448

14.6

11.5

500,059

21.0

60.39

06/13

62,850

16.3

376,217

0.9

11.8

294,189

15.4

78.55

07/13

(8,918)

-2.3

180,813

146

-83.9

-5.5

125,878

111

-8.4

19.30

06/12

15,168

4.0

126,707

170

-2.7

8.5

47,266

162

22.7

36.79

12/12

% % Return Total Equity Change on Assets ($000s)

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 53

Previous Year

Rank 91

116

112

145

103

100

107

101

102

105

103

108

104

100

105

118

106

120

107

119

108

109

127

110

111

112

114

113

117

114

113

115

121

116

124

117

128

118

115

119

138

120

125

Revenue ($000s)

Company Name (Head Office) Amcor Packaging (New Zealand) Auckland Nestle New Zealand Auckland OfficeMax Holdings Auckland Ford Motor Company of New Zealand Auckland Kordia Group (50% MF, 50% MSOE) Auckland Television New Zealand (50% MF, 50% MSOE) Auckland DHL Holdings (New Zealand) Auckland Transpacific Industries Group Finance (NZ) 10 Auckland Inghams Enterprises (NZ) Pty Te Aroha Pact Group Holdings (NZ) Auckland DSE (NZ) Auckland Kraft Food Investments (New Zealand) Auckland Restaurant Brands NZ Auckland Orica Investments (NZ) Lower Hutt Pan Pac Forest Products Napier Market Gardeners Christchurch NZ Snack Food Holdings Auckland Pumpkin Patch Auckland Northpower (100% NEPT) Whangarei Unilever New Zealand Auckland New Zealand Sugar Company Auckland The New Zealand Refining Company Whangarei Allied Foods (NZ) Auckland General Cable Holdings NZ Christchurch Wesfarmers Industrial and Safety Holdings NZ Auckland G R Media Holdings Auckland Port of Tauranga Tauranga Juken New Zealand Auckland Weyville Holdings Timaru Dunedin City Holdings (100% DCC) Dunedin

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

379,264

6.6

11,208

109

21.6

28,909

378,525

0.3

43,030

3.5

66,944

377,929

-2.1

1,931

160

-86.2

29,273

376,788

32.7

600

167

-23.7

1,707

SOE

370,726

-7.0

3,669

146

-69.7

44,772

SOE

356,113

-5.4

14,440

1.6

234,780

354,016

1.6

8,620

120

32.5

18,220

*NZSX

349,151

N/A

12,760

N/A

97,594

336,014

4.9

22,959

105.9

47,642

332,450

7.1

43,208

21.4

83,014

331,488

3.0

(8,888)

181

-349.9

4,077

323,942

1.7

11,640

104

233.0

29,531

NZSX

312,826

1.3

16,159

-4.5

37,629

312,193

-7.5

16,656

-55.8

42,541

306,778

10.5

8,783

119

5.6

31,694

Co-op

303,361

11.3

4,023

143

-37.6

14,582

293,612

6.2

20,495

150.1

60,416

NZSX

288,869

-12.7

5,061

134

118.4

23,493

283,182

17.1

11,293

108

17.2

35,085

282,775

-4.6

8,131

122

5.8

15,960

279,125

-5.7

21,387

15.7

35,607

*NZSX

278,631

-4.4

32,723

-5.2

112,773

276,836

-1.6

15,992

-1.2

30,575

273,052

-6.6

(10,787)

182

-182.3

(3,203)

269,136

-0.7

9,320

116

-7.6

16,511

259,202

0.5

(89,996)

193

71.5

(20,581)

NZSX

256,494

6.3

112,123

52.6

168,829

254,005

-11.0

28,358

290.9

47,555

246,764

13.3

11,955

103

42.5

25,224

246,633

-1.0

20,512

503.2

90,665

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 54 | management.co.nz | DECEMBER 2013

% Change

NEW ZEALAND COMPANIES

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

% % Return Total Equity Change on Assets ($000s)

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

17,736

4.7

343,795

0.7

3.3

251,968

4.5

73.56

06/12

61,332

16.2

146,287

159

1.9

29.7

28,033

182

177.3

19.34

12/12

9,405

2.5

217,786

127

-11.9

0.8

166,264

1.0

71.51

12/12

1,249

0.3

93,991

184

-18.9

0.6

35,955

176

1.7

34.25

12/12

12,432

3.4

215,082

130

-17.0

1.5

93,425

128

4.0

39.40

06/13

22,784

6.4

217,398

128

-10.7

6.3

158,080

9.2

68.61

06/13

14,719

4.2

169,799

148

-1.2

5.0

60,220

152

13.3

35.26

12/12

65,810

18.8

823,717

N/A

447,814

N/A

35.26

06/12

35,773

10.6

232,184

121

-7.7

9.5

127,846

110

18.9

52.86

06/12

68,903

20.7

374,629

7.2

11.9

160,265

31.2

44.26

06/12

(11,976)

-3.6

98,189

181

-2.2

-9.0

59,146

154

-14.0

59.57

06/12

20,808

6.4

278,963

108

-8.9

4.0

63,559

149

15.0

21.73

12/12

22,749

7.3

111,760

176

6.6

14.9

60,332

151

26.9

55.70

02/13

36,072

11.6

226,054

122

10.1

7.7

119,956

113

14.8

55.63

09/12

13,357

4.4

539,293

0.2

1.6

361,878

2.4

67.18

03/13

11,019

3.6

184,424

143

1.3

2.2

83,081

134

5.0

45.34

06/13

44,404

15.1

581,211

-3.9

3.5

260,846

8.2

43.99

12/12

12,481

4.3

142,919

162

-8.1

3.4

55,106

156

11.4

36.92

07/13

19,608

6.9

420,600

3.7

2.7

249,367

4.6

60.36

03/13

11,703

4.1

108,647

178

2.7

7.6

61,949

150

14.1

57.77

12/12

30,195

10.8

138,530

166

2.0

15.6

106,996

118

20.7

78.01

12/12

48,788

17.5

947,584

8.1

3.6

572,158

5.7

62.72

12/12

21,759

7.9

139,571

164

1.2

11.5

104,399

122

16.6

75.25

09/12

(8,761)

-3.2

203,600

138

2.8

-5.4

90,538

130

-11.6

45.08

12/12

14,063

5.2

139,095

165

11.8

7.1

86,685

131

11.4

65.79

06/13

(33,762)

-13.0

292,413

107

-11.0

-29.0

(457,151)

200

N/A

-147.20

08/12

150,271

58.6

1,112,581

7.6

10.4

793,878

14.7

73.97

06/13

31,947

12.6

479,029

-16.0

5.4

301,876

10.3

57.55

03/13

16,709

6.8

211,097

133

-0.9

5.6

151,518

101

8.2

71.47

06/12

71,868

29.1

1,036,228

1.4

2.0

159,197

13.6

15.47

06/13

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 55

Previous Year

Rank 121

139

122

109

123

122

124

130

125

131

126

134

127

140

128

132

129

153

130

147

131

137

132

123

133

163

134

133

135

126

136

143

137

158

138

141

139

144

140

150

141

156

142

151

143

159

144

136

145

155

146

152

147

154

148

171

149

166

150

148

Revenue ($000s)

Company Name (Head Office) Fuji Xerox New Zealand Auckland Norske Skog Tasman Kawerau Millstream Equities Auckland Linde Holdings New Zealand Auckland NZPM Group Auckland

% Change

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

246,484

14.4

39,993

561.1

55,007

241,290

-20.8

(248,599)

196

-3,515.3

26,799

241,144

-8.1

(182,362)

195

-73.1

(41,535)

240,413

2.4

31,542

24.0

69,109

Co-op

235,860

3.9

808

165

335.6

7,901

Ashburton Trading Society Ashburton Mitsubishi Motors New Zealand Porirua Scales Corporation 11 Christchurch The Tatua Co-operative Dairy Company Morrinsville Tourism Holdings Auckland

Co-op

232,011

4.5

3,772

145

237.4

5,656

229,717

6.8

4,452

140

121.3

8,738

228,886

N/A

13,624

N/A

32,696

Co-op

228,621

14.0

5,101

133

2.3

19,447

NZSX

223,850

7.2

3,808

144

-11.8

55,605

Delegat's Group Auckland Fernhoff Christchurch JB Hi-Fi NZ Auckland Smiths City Group Christchurch PMP (NZ) Auckland

NZSX

222,945

1.2

41,216

61.9

77,543

222,777

5.1

(7,791)

179

-1,015.5

22,347

222,531

17.9

2,603

155

334.3

6,064

NZSX

222,500

0.0

5,400

131

23.4

16,200

221,929

-10.3

(6,849)

175

57.5

8,910

219,652

3.4

10,198

113

445.6

16,641

219,019

11.1

(7,074)

176

-120.5

30,704

218,364

13.7

1,346

164

-62.1

2,817

216,828

2.4

2,807

152

170.2

13,743

NZSX

216,615

4.8

21,020

15.0

36,412

215,856

8.4

6,807

127

61.4

13,885

210,902

2.9

8,347

121

-49.3

15,245

209,425

7.5

8,999

117

214.7

25,701

NZSX

206,777

-6.2

3,030

151

285.5

12,724

204,743

2.8

31,883

0.1

67,464

NZSX

202,368

-1.0

4,055

141

0.0

23,478

202,102

0.8

2,238

158

-66.3

6,381

Co-op

201,612

12.4

23,658

-3.0

46,436

200,987

8.7

10,638

111

44.2

23,815

NZSX

198,693

-4.3

109,813

23.1

168,936

Bridgestone New Zealand Auckland Bupa Care Services NZ Auckland Mazda Motors of New Zealand Auckland Exego (NZ) Holdings Auckland Hallenstein Glasson Holdings Auckland CB Norwood Distributors 12 Auckland ABB Auckland Coles Group New Zealand Holdings Auckland Cavalier Corporation Auckland McDonald's Restaurants (New Zealand) Auckland Abano Healthcare Group Auckland New Zealand Wool Services International 13 Christchurch Livestock Improvement Corporation Hamilton Sealed Air (New Zealand) Auckland Kiwi Income Property Trust Auckland

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 56 | management.co.nz | DECEMBER 2013

NEW ZEALAND COMPANIES

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

% % Return Total Equity Change on Assets ($000s)

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

47,538

19.3

219,401

125

37.1

21.1

36,084

173

248.6

19.02

03/13

(226,103)

-93.7

313,544

104

-55.6

-48.8

17,416

187

-174.6

3.42

12/12

(174,345)

-72.3

891,339

-15.6

-18.7

691,717

-42.9

71.04

06/12

48,269

20.1

591,948

3.9

5.4

372,416

8.3

64.12

12/12

5,067

2.1

123,879

171

19.4

0.7

30,056

181

2.7

26.41

03/13

5,479

2.4

35,927

197

23.2

11.6

14,702

190

29.1

45.17

06/13

7,294

3.2

118,006

173

3.7

3.8

85,060

132

5.4

73.38

03/13

24,400

10.7

261,078

116

N/A

157,073

N/A

73.38

12/12

12,707

5.6

153,861

154

8.5

3.5

44,249

166

11.3

29.93

07/12

12,677

5.7

329,810

102

11.8

1.2

160,048

2.4

51.22

06/13

65,351

29.3

420,847

23.6

10.8

217,392

20.5

57.10

06/13

244

0.1

370,170

-2.6

-2.1

101,287

125

-12.8

27.00

12/12

3,664

1.6

82,223

187

6.7

3.3

52,072

159

5.1

65.38

06/12

13,300

6.0

154,200

153

-4.9

3.4

46,400

164

12.1

29.33

04/13

1,134

0.5

148,774

156

-4.8

-4.5

15,459

188

-66.2

10.14

06/12

12,774

5.8

143,536

161

2.1

7.2

104,163

123

10.3

73.31

12/12

13,386

6.1

681,537

15.7

-1.1

140,904

104

-5.1

22.18

12/12

2,513

1.2

63,323

190

-12.9

2.0

42,012

168

3.3

61.78

03/13

10,458

4.8

182,639

145

3.8

1.6

104,929

120

4.5

58.53

06/12

29,301

13.5

88,578

186

5.4

24.4

66,564

148

32.4

77.11

08/12

10,660

4.9

135,564

168

9.1

5.2

70,922

144

9.7

54.60

12/12

13,246

6.3

117,273

174

-4.7

6.9

45,606

165

16.9

37.96

12/12

22,955

11.0

274,061

111

1.2

3.3

250,182

3.7

91.84

06/12

5,836

2.8

196,637

140

-2.4

1.5

93,918

127

3.3

47.19

06/13

53,954

26.4

353,121

-2.4

8.9

60,149

153

53.1

16.82

12/12

14,185

7.0

210,978

134

3.8

2.0

75,341

139

4.9

36.38

05/13

4,622

2.3

90,931

185

-11.6

2.3

34,679

178

6.4

35.80

06/12

32,413

16.1

275,494

110

5.8

8.8

208,929

11.7

77.96

05/13

14,814

7.4

278,854

109

6.1

3.9

237,950

4.6

87.87

12/12

168,936

85.0

2,126,489

-1.5

5.1

1,132,082

10.0

52.82

03/13

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 57

Previous Year

Rank 151

162

152

167

153

170

154

164

155

157

156

172

157

146

158

168

159

149

160

129

161

142

162

161

163

174

164

176

165

166

175

167

180

168

194

169

173

170

(-)

171

190

172

177

173

183

174

(-)

175

181

176

178

177

182

178

135

179

195

180

188

Revenue ($000s)

Company Name (Head Office) Nobilo Holdings Kumeu Mercedes-Benz New Zealand Auckland CDC Pharmaceuticals Christchurch MARS New Zealand Auckland CablePrice (NZ) Lower Hutt Hansells Food Group Auckland Pfizer New Zealand Auckland Ports of Auckland Auckland Skellerup Holdings Auckland Alcatel-Lucent New Zealand Wellington Landcorp Farming (50% MF, 50% MSOE) Wellington Retirement Care (NZ) Auckland Vitaco Health Group Auckland Airways Corporation of New Zealand (50% MF, 50% MSOE) Wellington Rakon Auckland Unison Networks (100% HBPCT) Hastings Ryman Healthcare Christchurch Bayer New Zealand Auckland New Zealand Investment Holdings Auckland NDA Group Hamilton Trade Me Group Wellington AgResearch (50% MF, 50% MCRI) Hamilton ITW New Zealand 14 Auckland Aotearoa Fisheries 15 Auckland Cerebos Gregg's Auckland AsureQuality (50% MF, 50% MSOE) 16 Auckland Compass Group New Zealand Auckland Newmont Waihi Gold Waihi Honda New Zealand Auckland Goodman Property Trust Auckland

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

197,923

2.7

19,386

-5.1

58,104

196,556

7.2

12,361

101

97.5

31,080

Co-op

196,315

9.2

3,316

148

384.1

4,504

195,877

5.4

16,053

191.6

28,892

195,032

-1.9

4,988

135

-32.3

9,732

193,957

10.7

4,040

142

144.2

13,404

192,995

-6.0

37,204

490.8

43,046

CCO

190,570

4.4

38,866

426.7

79,798

NZSX

190,176

-8.4

19,036

-22.8

34,390

187,497

-23.9

9,462

115

123.3

13,820

SOE

186,236

-13.0

(18,067)

184

-91.9

3,961

185,999

-3.9

(35,536)

189

13.6

38,089

183,772

7.2

15,287

180.8

30,517

SOE

183,317

11.6

21,761

133.8

49,367

NZSX

183,023

-1.2

(32,821)

188

-7,714.5

(8,707)

182,737

11.0

24,111

58.0

73,464

NZSX

181,273

16.8

136,730

13.2

165,470

178,255

28.1

(4,057)

173

-250.3

8,638

174,512

1.7

15,286

6.1

31,184

170,599

12.0

(234)

168

95.5

18,267

*NZSX

165,150

14.5

78,596

4.0

125,388

CRI

159,908

1.3

5,679

129

33.7

17,663

159,773

6.5

14,751

2.7

26,164

159,226

-7.5

17,069

-25.0

24,799

157,112

3.0

11,521

107

15.7

20,244

SOE

155,212

-0.7

7,449

125

-26.0

16,286

152,853

0.9

2,632

153

21.3

5,956

152,173

-31.5

(24,303)

186

-952.5

(9,736)

151,444

5.2

(3,680)

172

-345.5

12,619

NZSX

150,500

6.4

77,900

92.3

114,700

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 58 | management.co.nz | DECEMBER 2013

% Change

NEW ZEALAND COMPANIES

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

% % Return Total Equity Change on Assets ($000s)

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

48,070

24.3

519,707

8.2

3.9

238,805

8.4

47.76

02/13

30,403

15.5

419,832

0.9

3.0

32,755

180

41.7

7.84

12/12

4,308

2.2

42,896

196

19.4

8.4

9,935

193

39.3

25.21

03/13

25,739

13.1

94,203

183

12.8

18.1

40,426

170

42.9

45.49

12/12

8,482

4.3

111,955

175

-1.3

4.4

38,573

171

13.2

34.23

03/13

9,686

5.0

95,552

182

11.0

4.4

8,553

194

62.0

9.42

03/13

42,661

22.1

120,349

172

-15.8

28.3

74,815

140

49.8

56.83

11/12

59,508

31.2

760,313

0.6

5.1

456,115

8.7

60.16

06/13

27,215

14.3

184,132

144

5.4

10.6

124,673

112

15.5

69.48

06/13

12,813

6.8

151,395

155

-17.7

5.6

11,787

191

73.9

7.03

12/12

(10,331)

-5.5

1,694,878

1.9

-1.1

1,317,327

-1.4

78.46

06/13

(15,387)

-8.3

643,456

-6.9

-5.3

(132,866)

198

N/A

-19.91

05/13

26,494

14.4

206,579

137

3.2

7.5

74,127

142

23.3

36.44

03/13

32,357

17.7

148,562

157

3.9

14.9

67,705

146

38.0

46.44

06/13

(28,277)

-15.4

240,511

119

-10.1

-12.9

156,686

100

-18.7

61.69

03/13

48,840

26.7

658,779

2.4

3.7

306,617

8.0

47.09

03/13

157,084

86.7

2,202,637

15.1

6.6

734,469

19.8

35.69

03/13

2,261

1.3

209,136

135

-7.2

-1.9

66,748

147

-5.8

30.72

12/12

26,680

15.3

165,954

149

2.3

9.3

41,180

169

37.8

25.09

12/12

15,965

9.4

245,208

118

-1.0

-0.1

71,441

143

-0.3

28.99

12/12

116,653

70.6

841,452

2.2

9.4

657,066

12.1

78.95

06/13

7,648

4.8

259,820

117

3.1

2.2

213,193

2.7

83.31

06/13

24,040

15.0

208,334

136

4.2

7.2

81,956

135

19.9

40.15

12/12

22,507

14.1

499,047

-0.7

3.4

404,127

4.3

80.69

09/12

14,151

9.0

127,080

169

5.5

9.3

105,396

119

11.2

85.17

12/12

10,958

7.1

73,940

189

9.1

10.5

34,962

177

21.2

49.34

06/12

3,612

2.4

45,520

195

-2.1

5.7

19,814

186

14.2

43.07

09/12

(33,394)

-21.9

261,788

115

-13.7

-8.6

168,279

-13.5

59.56

12/12

432

0.3

192,617

141

8.9

-2.0

83,594

133

-4.3

45.26

03/13

114,700

76.2

2,052,300

22.6

4.2

1,185,900

7.3

63.65

03/13

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 59

Previous Year

Rank 181

198

182

201

183

207

184

191

185

186

185

187

184

188

189

209

190

199

191

187

192

169

193

213

194

203

195

192

196

210

197

106

198

200

199

208

200

205

Revenue ($000s)

Company Name (Head Office) Suzuki New Zealand Wanganui Precinct Properties NZ 17 Wellington Dow AgroSciences (NZ) New Plymouth Pepsico New Zealand Holdings Auckland GlaxoSmithKline NZ Auckland Avon Pacific Holdings Auckland Schneider Electric (NZ) Waitakere Fujitsu New Zealand Wellington AWF Group Auckland Avis Rent A Car Auckland Kimbyr Investments Manukau Renaissance Corporation Auckland BMW New Zealand Auckland DFS New Zealand Auckland Rayonier New Zealand Auckland Reckitt Benckiser (New Zealand) Waitakere Siemens (NZ) Auckland New Zealand Radio Network Auckland NIWA (50% MF, 50% CRI) Auckland Alsco Investments NZ Auckland

% Change

Profit After Tax ($000s)

Rank

% Change

EBITDA ($000s)

148,448

12.0

2,271

157

-24.2

3,520

NZSX

147,900

16.0

157,500

249.2

150,900

147,285

22.6

(1,872)

169

-152.3

(1,985)

144,912

1.1

2,275

156

131.3

18,240

144,139

-1.0

6,211

128

-7.2

8,601

143,415

-3.5

10,317

112

-64.3

34,479

142,834

-4.0

4,688

136

177.8

10,633

141,937

-1.7

11,535

105

270.5

15,814

NZSX

138,874

16.4

6,923

126

165.7

10,869

137,404

4.8

9,703

114

-10.5

31,704

134,740

-7.3

4,503

139

654.3

10,021

NZSX

132,008

-27.4

2,029

159

146.7

4,035

131,667

14.1

623

166

-82.4

1,716

130,966

5.5

3,416

147

6.2

7,817

128,847

-7.9

1,678

162

-7.1

2,013

127,048

8.8

(4,872)

174

-135.3

22,540

124,906

-59.8

2,631

154

-74.3

4,687

122,021

-5.2

8,795

118

-29.9

17,801

CRI

120,663

0.7

4,640

138

-16.3

18,796

120,321

-2.1

4,670

137

190.8

17,859

TOP 200 FOOTNOTES 1. Aotea Energy (8) Ultimate parent of Z Energy. 2. The Warehouse Group (16) Includes 8 months with acquired operations of Noel Leeming Group. 3. Mighty River Power (19) Trading on NZX from May 2013. The Crown retains 51.8% stake. 4. Vodafone NZ (22) Acquired 100% of TelstraClear October 2012. 5. Farmlands Cooperative Society (26) Merger of Combined Rural Traders (32) and Farmlands Trading (63). Figures are for four months trading of combined operation. No comparatives shown.

6. Chorus (34) Prior year figures are for 7 months trading only, therefore comparatives not shown.

10. Transpacific Industries Group Finance (NZ) (98) Current year figures not available when list closed. June 2012 figures restated. No comparatives shown.

7. Kiwirail Holdings (42) New SOE resulting from restructure of Crownâ&#x20AC;&#x2122;s interest in NZ Railways Corporation in December 2012.

11. Scales Corporation (128) No comparatives. Balance date changed to December. PY comparatives for six months only.

8. Transfield Services (New Zealand) (65) Change of reporting month. Current year figures not available when list closed. June 2012 figures restated. No comparatives shown.

12. CB Norwood Distributors (141) Previously reported as Wahn Investments.

9. Powerco (84) PY figures annualised from nine months trading.

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. 60 | management.co.nz | DECEMBER 2013

13. New Zealand Wool Services International (147) Post balance date became part of Lempiere group of companies. No longer publicly listed. 14. ITW New Zealand (173) PY figures annualised from 13 months.

NEW ZEALAND COMPANIES

EBIT ($000s)

% Return on Revenue

Total Assets ($000s)

Rank

% % Return Total Equity Change on Assets ($000s)

% Return on Total Proprietorship Balance Rank Equity Ratio (%) Date

3,333

2.2

51,283

193

7.8

4.6

36,005

175

6.5

72.84

12/12

150,900

102.0

1,658,500

22.8

10.5

983,800

16.9

65.39

06/13

(2,381)

-1.6

141,331

163

30.1

-1.5

69,189

145

-2.7

55.36

12/12

10,328

7.1

318,786

103

-0.5

0.7

46,683

163

5.0

14.61

12/12

8,569

5.9

215,762

129

0.2

2.9

180,450

3.5

83.73

12/12

15,909

11.1

154,753

152

6.2

6.9

131,744

108

8.2

87.71

06/12

9,086

6.4

109,910

177

3.0

4.3

74,799

141

6.5

69.06

12/12

13,488

9.5

50,790

194

41.8

26.6

27,098

183

54.1

62.58

03/13

9,379

6.8

35,375

198

-2.4

19.3

21,607

185

33.9

60.34

03/13

14,925

10.9

101,142

180

-0.3

9.6

47,588

161

22.7

46.99

12/12

7,324

5.4

108,144

179

20.0

4.5

34,461

179

14.0

34.76

07/12

2,440

1.8

22,986

200

-32.3

7.1

10,851

192

20.5

38.11

09/12

1,059

0.8

61,278

191

4.5

1.0

2,110

195

8.1

3.52

12/12

4,818

3.7

58,132

192

7.9

6.1

42,661

167

8.3

76.19

12/12

1,687

1.3

34,674

199

7.8

5.0

23,832

184

7.3

71.31

12/12

5,406

4.3

212,602

131

-4.0

-2.2

55,067

157

-8.4

25.37

12/12

3,005

2.4

237,586

120

56.8

1.4

79,930

137

3.3

41.09

09/12

11,760

9.6

163,663

150

5.1

5.5

148,953

102

6.0

93.28

12/12

6,709

5.6

135,683

167

0.9

3.4

100,436

126

4.7

74.35

06/13

11,627

9.7

145,330

160

2.1

3.2

51,208

160

9.6

35.60

12/12

15. Aotearoa Fisheries (174) Operates in own right but profit includes share of profit in joint venture Kura. 16. AsureQuality (176) PY figures annualised from nine months trading. 17. Precinct Properties NZ (182) Previously reported as AMP NZ Office Trust.

FINANCIALS

ABBREVIATIONS

1. ANZ Bank New Zealand (1) Formerly ANZ National Bank.

AC Auckland Council, AECT Auckland Electricity Consumer Trust, AF Aotearoa Fisheries, CCC Christchurch City Council, DCC Dunedin City Council, EM Evander Management, HBPCT Hawke’s Bay Power Consumers’ Trust, I Infratil, MCRI Minister of Crown Research Institutes, MF Minister of Finance, MSOE Minister for State Owned Enterprise, NZG New Zealand Government, NEPT Northpower Electric Power Trust, NZSF New Zealand Superannuation Fund OEPH Origin Energy Pacific Holdings TSBCT TSB Community Trust

2. IAG (NZ) Holdings (7) Acquired 100% AMI Insurance April 2012. 3. The Bank of Tokyo-Mitsubishi (12) NZ Branch of an overseas company. 4. AIG Insurance New Zealand (22) Operations of American Home Assurance Company New Zealand Branch transferred to AIG Dec 2011. No comparatives shown. 5. Fisher & Paykel Finance (25) Wholly owned subsidiary of Fisher & Paykel Appliance Holdings.

Companies with a revenue greater than $100 million are eligible to participate in this survey if audited statutory accounts are available for verification and they meet the ‘Criteria’ outlined on page 48. If you feel your company should have been included in the ‘Top 200’, please phone: 0-9-529 3000. All care has been taken to ensure accuracy. The publisher accepts no responsibility for errors and omissions.

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 61

Rank

Previous Year

(-)

Total Assets ($000s)

% Change

% Return on Assets

Revenue ($000s)

*NZSX

121,449,000

0.0

1.1

7,023,000

-0.2

*NZSX

77,854,000

-0.6

1.0

4,542,000

0.2

73,111,000

-1.3

0.8

3,931,000

-7.4

66,570,000

4.8

1.1

3,884,000

-2.3

SOE

15,209,000

3.1

0.6

960,000

2.7

Rabobank New Zealand Lower Hutt IAG (NZ) Holdings 2 Auckland TSB Bank (100% TSBCT) New Plymouth The Hongkong & Shanghai Banking Corporation Auckland Suncorp Group Holdings (NZ) Auckland

9,089,700

15.5

1.0

534,812

8.3

6,311,323

14.8

-3.9

1,550,610

20.7

5,428,822

5.1

1.0

297,023

1.4

5,045,975

2.2

0.8

256,087

-3.6

3,885,696

-17.3

1.8

882,961

18.6

AMP Life (NZ Branch) Auckland The Bank of Tokyo-Mitsubishi 3 Auckland Southland Building Society Invercargill Deutsche Bank AG New Zealand Auckland GE Finance and Insurance Group Auckland

2,936,807

6.5

2.5

523,035

19.6

2,838,906

10.3

0.7

100,663

30.3

Soc

2,829,669

-0.4

0.5

195,964

-3.6

2,759,000

-10.8

0.4

124,000

-15.1

2,728,217

78.1

-1.0

308,432

18.2

NZSX

2,504,627

6.7

0.3

226,010

0.5

2,179,785

1.5

0.6

83,404

3.9

NZSX

1,965,594

-0.6

2.8

574,233

73.0

Co-op

1,521,807

4.9

0.4

111,789

-1.6

1,119,151

14.4

-10.1

403,643

10.3

1,047,516

-4.8

1.2

145,746

-10.4

776,409

N/A

83,868

N/A

588,499

8.9

3.0

149,058

44.0

Soc

587,835

7.0

2.2

112,917

0.5

473,100

-3.5

4.1

104,938

3.7

443,808

8.2

4.7

133,744

18.9

408,060

0.7

1.1

59,301

-6.4

394,923

-0.1

2.3

34,208

0.7

390,691

-8.5

1.3

17,907

4.2

348,542

6.7

9.3

183,242

11.1

Company Name (Head Office) ANZ Bank New Zealand 1 Wellington Westpac Banking Corp (NZ Group) Auckland Bank of New Zealand Auckland ASB Bank Auckland Kiwibank Lower Hutt

Heartland New Zealand Auckland Citibank NA New Zealand Auckland Tower Auckland The Cooperative Bank Wellington Lumley General Insurance (NZ) Auckland Toyota Finance New Zealand Auckland AIG Insurance New Zealand 4 Auckland Fidelity Life Assurance Company Auckland Medical Assurance Society NZ Wellington Fisher & Paykel Finance 5 Auckland QBE Insurance (International) NZ Branch Auckland Motor Trade Finances Dunedin Mercedes-Benz Financial Services New Zealand Auckland Kookmin Bank Auckland Branch Auckland Farmers Mutual Group Wellington

* = more than 50% overseas controlled. NZSX = New Zealand Stock Exchange. Footnotes page 60. 62 | management.co.nz | DECEMBER 2013

% Rank Change

FINANCIAL INSTITUTIONS

% Pre-Tax Return on Revenue

Rank

% Return on Total Equity

Proprietorship Ratio (%)

Balance Date

10,932,000

12.2

9.00

09/12

23.2

5,515,000

14.8

7.06

09/12

-13.6

20.1

5,277,000

12.1

7.17

09/12

705,000

2.9

26.1

5,025,000

15.3

7.72

06/13

97,000

22.8

14.1

858,000

12.1

5.73

06/13

83,675

55.4

21.9

884,026

10.6

10.43

12/12

(227,606)

63.4

-20.3

886,855

-34.9

15.02

06/12

53,111

11.0

24.7

437,590

12.7

8.26

03/13

40,599

3.1

22.1

15,348

249.9

0.31

12/12

76,107

120.2

11.7

699,331

11.5

16.30

06/13

71,694

-28.7

23.4

557,054

13.8

19.56

12/12

19,336

16.4

23.7

114,683

18.4

4.24

03/13

14,339

21.9

10.1

231,590

6.4

8.17

03/13

13,000

-38.1

14.5

123,000

11.2

4.20

12/12

(20,449)

-142.6

-14.3

402,950

-4.8

18.92

12/12

6,912

-70.7

4.2

370,542

1.9

15.27

06/13

12,838

-29.3

21.3

177,819

7.5

8.22

12/12

55,824

67.2

15.7

498,789

11.7

25.31

09/12

5,763

1.7

6.3

134,730

4.4

9.06

03/13

(105,869)

-802.1

-36.4

108,153

-102.6

10.31

06/12

13,315

-34.7

13.0

143,102

9.1

13.32

03/13

6,139

N/A

7.3

100,673

N/A

13.32

12/12

17,075

25.1

13.7

154,712

11.6

27.41

06/13

12,669

17.6

12.7

141,705

9.4

24.92

03/13

19,904

20.1

26.4

112,726

18.0

23.41

03/13

19,888

351.7

20.8

46,619

55.4

10.92

12/12

4,648

-17.8

11.5

71,382

6.6

17.55

09/12

9,186

21.8

38.3

28,345

32.9

7.17

12/12

5,456

53.0

42.8

5,220

116.1

1.28

12/12

31,257

267.3

22.5

179,912

19.0

53.29

03/13

Profit After Tax ($000s)

% Change

1,325,000

20.6

25.0

759,000

14.0

580,000

Total Equity ($000s)

These tables have been prepared using the criteria set out on page 44 DECEMBER 2013

| management.co.nz | 63

YEAR-ON-YEAR COMPARISONS

These tables compare the results of this year’s top 200 companies, Top 30 financial organisations, and the combined Top 230 results, with the performance of those same companies in their previous reporting year.

These tables compare the results of the companies which make up this year’s Top 200, Top 30 financial organisations, and the combined Top 230 results, with the companies in last year’s lists.

TOP 200 COMPANIES

2013 $000s Revenue

2012 $000s % Change

158,782,772

154,399,006

2.8

Profit After Tax

4,803,669

4,207,125

14.2

Tax Paid

2,221,465

2,146,142

EBITDA

21,307,213

Assets Equity

159,316,545

-0.3

Profit After Tax

4,803,669

4,058,077

18.4

3.5

Tax Paid

2,221,465

2,235,560

-0.6

20,090,250

6.1

EBITDA

21,307,213

20,448,334

4.2

218,915,060

215,967,291

1.4

Assets

218,915,060

218,886,131

0.0

99,694,007

100,601,002

-0.9

Equity

99,694,007

101,339,692

-1.6

TOP 30 FINANCE COMPANIES

2013 $000s

2012 $000s % Change

27,537,595

26,914,725

2.3

Profit After Tax

3,704,811

3,098,712

19.6

Tax Paid

1,374,164

1,343,211

Assets

412,797,462

Equity

34,233,856

2013 $000s

2012 $000s % Change

27,537,595

27,259,051

1.0

Profit After Tax

3,704,811

3,153,331

17.5

2.3

Tax Paid

1,374,164

1,421,223

-3.3

406,611,470

1.5

Assets

412,797,462

409,482,347

0.8

30,386,169

12.7

Equity

34,233,856

30,630,720

11.8

TOP 230 COMPANIES 2013 $000s Revenue

Revenue

2012 $000s % Change

158,782,772

TOP 30 FINANCE COMPANIES

Revenue

2013 $000s

Revenue

TOP 230 COMPANIES 2012 $000s % Change

186,320,367

181,313,731

2.8

Profit After Tax

8,508,480

7,305,837

16.5

Tax Paid

3,595,629

3,489,353

EBITDA

38,972,433

Assets Equity

2013 $000s 186,320,367

186,575,596

-0.1

Profit After Tax

8,508,480

7,211,408

18.0

3.0

Tax Paid

3,595,629

3,656,783

-1.7

37,329,696

4.4

EBITDA

38,972,433

37,963,691

2.7

631,712,522

622,578,761

1.5

Assets

631,712,522

628,368,478

0.5

133,927,863

130,987,171

2.2

Equity

133,927,863

131,970,412

1.5

64 | management.co.nz | DECEMBER 2013

Revenue

2012 $000s % Change

DECEMBER 2013

| management.co.nz | 65

MOST IMPROVED REVENUE Top 200 Rank

MOST IMPROVED PROFITS % Change

Top 200 Rank

% Change

Apple Sales New Zealand

38.0

191

Kimbyr Investments

654.3

Wilson & Horton

35.4

121

Fuji Xerox New Zealand

561.1

Ford Motor Company of New Zealand

32.7

120

Dunedin City Holdings

503.2

The Warehouse Group

30.8

157

Pfizer New Zealand

490.8

Bayer New Zealand

28.1

136

Bridgestone New Zealand

445.6

Ebos Group

27.6

Goodman Fielder New Zealand

434.7

New Zealand Post

27.2

158

Ports of Auckland

426.7

Dow AgroSciences (NZ)

22.6

153

CDC Pharmaceuticals

384.1

Holden New Zealand

20.3

F26

QBE Insurance (International) NZ Branch

351.7

Toyota New Zealand

19.6

125

NZPM Group

335.6

133

JB Hi-Fi NZ

17.9

133

JB Hi-Fi NZ

334.3

109

Northpower

17.1

Meridian Energy

295.4

167

Ryman Healthcare

16.8

118

Juken New Zealand

290.9

168

183

Transpower New Zealand

16.6

144

Cavalier Corporation

285.5

189

AWF Group

16.4

188

Fujitsu New Zealand

270.5

182

Precinct Properties NZ

16.0

F30

Farmers Mutual Group

267.3

Sime Darby Motor Group

15.5

Westland Co-operative Dairy Company

258.6

Methanex New Zealand

14.6

182

Precinct Properties NZ

249.2

171

Trade Me Group

14.5

126

Ashburton Trading Society

237.4

121

Fuji Xerox New Zealand

14.4

102

Kraft Food Investments (New Zealand)

233.0

BIGGEST PROFIT MAKERS Top 200 Rank

BIGGEST LOSS MAKERS Profit $000s

Top 200 Rank

Loss $000s

1,325,000

Fairfax New Zealand Holdings

(708,998)

Westpac Banking Corp (NZ Group)

759,000

RTA Pacific (NZ)

(541,358)

Fonterra Co-operative Group

736,000

Solid Energy NZ

(335,400)

ASB Bank

705,000

PGG Wrightson

(306,505)

ANZ Bank New Zealand

F2 1

Bank of New Zealand

580,000

122

Norske Skog Tasman

(248,599)

Fletcher Building

337,000

IAG (NZ) Holdings

(227,606)

Meridian Energy

295,100

123

Millstream Equities

(182,362)

Transpower New Zealand

263,700

F20

Lumley General Insurance (NZ)

(105,869)

Telecom Corporation of New Zealand

238,000

Hewlett-Packard New Zealand

(92,504)

Vector

206,231

116

G R Media Holdings

(89,996)

Contact Energy

199,000

Wilson & Horton

(83,957)

41 5

Air New Zealand

182,000

Alliance Group

(50,800)

Auckland International Airport

177,967

Toll Group (NZ)

(35,937)

Kiwirail Holdings

174,700

162

Retirement Care (NZ)

(35,536)

Rakon

(32,821)

Silver Fern Farms

(31,121)

Chorus

171,000

165

182

Precinct Properties NZ

157,500

The Warehouse Group

145,328

178

Newmont Waihi Gold

(24,303)

Ryman Healthcare

136,730

F15

GE Finance and Insurance Group

(20,449)

Sky Network Television

132,215

ANZCO Foods

(19,183)

Woolworths New Zealand Group

128,918

161

Landcorp Farming

(18,067)

167 43 3

f = Financial organisations ranked by total assets. Page 66.

66 | management.co.nz | DECEMBER 2013

ANALYSIS

TOP RETURNS ON TOTAL EQUITY Top 200 Rank F9 121 92 F29 31

TOP RETURNS ON TOTAL ASSETS % Return on Equity

Top 200 Rank

% Return on Assets

The Hongkong & Shanghai Banking Corp

249.9

Nestle New Zealand

29.7

Fuji Xerox New Zealand

248.6

157

Pfizer New Zealand

28.3

Nestle New Zealand

177.3

188

Fujitsu New Zealand

26.6

Kookmin Bank Auckland Branch

116.1

140

Hallenstein Glasson Holdings

24.4

British American Tobacco Holdings (NZ)

21.8

Fuji Xerox New Zealand

21.1

British American Tobacco Holdings (NZ)

78.5

160

Alcatel-Lucent New Zealand

73.9

121

156

Hansells Food Group

62.0

Beca Group

20.8

F26

QBE Insurance (International) NZ Branch

55.4

189

AWF Group

19.3

188

Fujitsu New Zealand

54.1

154

MARS New Zealand

18.1

145

McDonald's Restaurants (New Zealand)

53.1

The Warehouse Group

16.8

157

Pfizer New Zealand

49.8

Imperial Tobacco New Zealand

16.4

Apple Sales New Zealand

45.6

111

New Zealand Sugar Company

15.6

MARS New Zealand

42.9

Briscoe Group

15.3

BP New Zealand Holdings

42.0

103

Restaurant Brands NZ

14.9

152

Mercedes-Benz New Zealand

41.7

164

Airways Corporation of New Zealand

14.9

Imperial Tobacco New Zealand

40.3

IBM New Zealand

13.3

64 154 7

The Warehouse Group

39.9

Fisher & Paykel Healthcare Corporation

12.9

153

CDC Pharmaceuticals

39.3

Michael Hill International

11.9

164

Airways Corporation of New Zealand

38.0

100

Pact Group Holdings (NZ)

11.9

169

New Zealand Investment Holdings

37.8

Kathmandu Holdings

11.8

Integration and

Balance

We specialise in assisting clients to increase effectiveness by integrating and balancing the 4-Pâ&#x20AC;&#x2122;s through portfolio, programme and project management. Get in touch to discuss how we can assist you.

www.projectplusgroup.co.nz or 04 495 9100

DECEMBER 2013

| management.co.nz | 67

AUTOMOTIVE

COMMUNITY SERVICES Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

The Colonial Motor Company

14,800

Ryman Healthcare

136,730

167

Sime Darby Motor Group

12,363

100

Housing New Zealand

120,000

Mercedes-Benz New Zealand

12,361

101

152

Holden New Zealand

10,874

110

CablePrice (NZ)

4,988

135

155

Mitsubishi Motors New Zealand

4,452

140

127

Transpacific Industries Group Finance (NZ) Abano Healthcare Group

ANZ Bank New Zealand

Top 30 Top 30 Profit Asset Rank Rank

4,055

141

146

Top 200 Profit Rank

Top 200 Revenue Rank

CONSTRUCTION | ENGINEERING Profit $000s

BANKING | FINANCE Profit $000s

12,760

Fletcher Building

337,000

Beca Group

36,526

1,325,000

Downer New Zealand

30,911

Westpac Banking Corp (NZ Group)

759,000

Opus International (NZ)

23,411

ASB Bank

705,000

Bank of New Zealand

Transfield Services (New Zealand) Fulton Hogan

11,984 7,937

102 123

65 10

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank 23

580,000

Kiwibank

97,000

Rabobank New Zealand

83,675

TSB Bank

53,111

The Hongkong & Shanghai Corporation

40,599

Fisher & Paykel Finance

19,904

New Zealand Post

120,998

Christchurch City Holdings

70,712

20,512

120

The Bank of Tokyo-Mitsubishi

19,336

DIVERSIFIED CORPORATES

Southland Building Society

14,339

Dunedin City Holdings

Toyota Finance New Zealand

13,315

Hellaby Holdings

18,751

8,131

122

110

6,923

126

189

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Lion - Beer, Spirits & Wine (NZ)

67,830

Coca-Cola Holdings NZ

53,115

Deutsche Bank AG New Zealand

13,000

Unilever New Zealand

Citibank NA New Zealand

12,838

AWF Group

CHEMICALS | PHARMACEUTICALS

FOOD (PROCESSED) | BEVERAGES

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Pfizer New Zealand

37,204

157

Ebos Group

28,207

Orica Investments (NZ)

16,656

104

Nestle New Zealand

43,030

Vitaco Health Group

15,287

163

Delegat's Group

41,216

131

CB Norwood Distributors

6,807

127

141

Goodman Fielder New Zealand

37,819

GlaxoSmithKline NZ

6,211

128

185

McDonald's Restaurants (New Zealand)

31,883

145

DB Breweries

26,237

Open Country Dairy

23,234

Frucor Beverages

22,590

New Zealand Sugar Company

21,387

111

NZ Snack Food Holdings

20,495

107

COMMUNICATIONS | MEDIA Top 200 Top 200 Profit Profit Revenue $000s Rank Rank Telecom Corporation of New Zealand

238,000

Chorus

171,000

Nobilo Holdings

19,386

151

Sky Network Television

132,215

Restaurant Brands NZ

16,159

103

Vodafone New Zealand

55,900

MARS New Zealand

16,053

154

Television New Zealand

14,440

Allied Foods (NZ)

15,992

113

68 | management.co.nz | DECEMBER 2013

Companies listed under the various industry sectors are ranked on their profit after tax, except for insurance which is ranked on revenue. Ranking in the Top 200 or Top 30 is also provided.

TOP PERFORMANCE BY SECTOR

PRIMARY PRODUCTION

INSURANCE Top 30 Revenue Revenue $000s Rank IAG (NZ) Holdings

Top 30 Asset Rank

Profit $000s

Top 200 Revenue Rank

1,550,610

736,000

Suncorp Group Holdings (NZ)

882,961

Oregon Group

95,178

Tower

574,233

Juken New Zealand

28,358

118

AMP Life (NZ Branch)

523,035

Livestock Improvement Corporation

23,658

148

Lumley General Insurance (NZ)

403,643

Inghams Enterprises (NZ) Pty

22,959

Sanford

20,884

Aotearoa Fisheries

17,069

174

Scales Corporation

13,624

128

Westland Co-operative Dairy Company

12,950

Synlait Milk

11,528

106

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

AsureQuality

7,449

125

176

AgResearch

5,679

129

172

NIWA

4,640

138

199

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

The Warehouse Group

145,328

Woolworths New Zealand Group

INVESTMENT | PROPERTY Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Precinct Properties NZ

157,500

182

Kiwi Income Property Trust

109,813

150

Goodman Property Trust

77,900

180

Infratil

77,000

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Fuji Xerox New Zealand

39,993

121

IBM New Zealand

36,784

Datacom Group

35,970

Fonterra Co-operative Group

Top 200 Profit Rank

RESEARCH

IT | COMPUTER HARDWARE

RETAIL | WHOLESALE

MANUFACTURING Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

128,918

Tasman Steel Holdings

69,792

British American Tobacco Holdings (NZ) 114,954

Nuplex Industries

45,295

Trade Me Group

78,596

171

Pact Group Holdings (NZ)

43,208

100

Kathmandu Holdings

44,174

Michael Hill International

40,032

Briscoe Group

30,468

Imperial Tobacco New Zealand

22,381

Foodstuffs (Auckland)

21,495

Bidvest New Zealand

21,367

Hallenstein Glasson Holdings

21,020

140

Harvey Norman Stores (NZ)

15,637

Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Ballance Agri-Nutrients

21,388

Skellerup Holdings

19,036

159

Steel & Tube Holdings

15,585

New Zealand Investment Holdings

15,286

169

OIL | GAS | MINERALS | ELECTRICITY | WATER Profit $000s

Top 200 Profit Rank

Top 200 Revenue Rank

Meridian Energy

295,100

Transpower New Zealand

263,700

Vector

206,231

Contact Energy

199,000

Air New Zealand

182,000

TrustPower

123,351

Auckland International Airport

177,967

Mighty River Power

114,761

Kiwirail Holdings

174,700

Genesis Power

104,524

Port of Tauranga

112,123

117

65,911

BP New Zealand Holdings

100,426

TRANSPORTATION

Mainfreight

DECEMBER 2013

| management.co.nz | 69

MISSING, MERGED, MISCELLANEOUS

JUST MISSED THE TOP 200 LIST Rank Previous This Year Year Company

Revenue % ($000s) Change

Profit After Tax ($000s)

% Change

EBIT ($000s)

% Return on Revenue

Balance Date

201

204

Paperlinx (NZ)

118,601

-4.3

4,701

4.6

7,931

6.7

06/12

202

218

CDL Hotels Holdings New Zealand

118,091

11.0

51,078

103.1

62,187

52.7

12/12

203

197

Johnson & Johnson (New Zealand)

116,094

-15.3

5,890

-2.0

8,276

7.1

12/12

204

179

Goodyear & Dunlop Tyres (NZ)

115,798

-25.6

(20,351)

-118.5

(19,416)

-16.8

12/12

205

206

Canon New Zealand

114,477

-5.0

(9,835)

-39.8

(9,161)

-8.0

12/12

206

211

ISS Holdings NZ

112,851

-2.6

(1,288)

1.3

414

0.4

12/12

207

214

Flight Centre (NZ)

111,658

-2.3

4,450

63.8

8,521

7.6

06/12

208

212

Postie Plus Group

111,021

-4.1

(183)

-127.9

507

0.5

07/12

209

220

Lyttelton Port Company

110,766

5.7

16,913

-1.7

27,374

24.7

06/13

210

196

Seeka Kiwifruit Industries

109,160

-21.7

5,880

183.4

9,252

8.5

12/12

211

192

Sony New Zealand

108,601

-24.0

1,182

233.7

1,193

1.1

03/13

212

(-)

Tru-Test Corporation

107,630

3.0

6,576

181.6

8,506

7.9

03/13

213

202

New Zealand Oil and Gas

107,151

-14.0

25,945

30.5

37,878

35.4

06/13

214

217

ACP Media

106,541

0.1

326

-87.7

383

0.4

06/12

215

(-)

Wellington International Airport

106,336

-3.4

16,246

80.9

36,777

34.6

03/13

WHATEVER HAPPENED TOâ&#x20AC;Ś Company

Prev Year Rank

Last Recorded Revenue ($000s)

Last Balance Date

Aperio Group

Bought by Amcor Flexibles Asia Pacific in 2012 (193) and trading as Amcor Flexibles (New Zealand). No financial results available.

$139,872

6/11

Chevron NZ

(16) Comparable results to previous year not available.

$2,243,227

12/11

Noel Leeming

(60)

$609,906

03/12

$193,486

03/12

$416,908

06/12

$691,993

06/12

$323,207

04/12

Assets $2,010,000

12/11

Assets $762,821

11/11

Assets $1,187,513

12/11

Panasonic New Zealand

Results incorporated into The Warehouse Group. Acquired in Dec 2012.

(160) Financial statements not available when list closed.

Spotless Facility Services (NZ)

Privately owned by Pacific Equity Partners since (82) August 2012.

Telstra New Zealand Holdings

(53)

Results incorporated into Vodafone New Zealand. Acquired in October 2012.

Viterra (NZ)

(101) No financial statements available.

AXA Asia Pacific

(F17)

American Home Assurance Co (NZ Branch) Custom Fleet

70 | management.co.nz | DECEMBER 2013

Merged with AMP. Now reporting AMP NZ Holdings. Current year Total Assets $162,603,000

Operations transferred to AIG New Zealand Holdings. Dec 2011. Acquired by GE Capital and now reported in their (F21) figures. (F24)

EXECUTIVE CLUB

FISH

with a view

Menu to match the superb location The corporate entertaining season is upon us. Donâ&#x20AC;&#x2122;t forget FISH when youâ&#x20AC;&#x2122;re called upon to entertain clients or colleagues this summer season. Its variety, style, delivery and excellent quality will please even the most discerning corporate diners. John Clarke reviews this smart Auckland eatery and speaks with Chef Shane Yardley.

DECEMBER 2013

| management.co.nz | 71

EXECUTIVE CLUB

t occupies arguably the best harbour view location in town, but situated at the far end of Princes Wharf can mean that FISH isn’t the first top-end restaurant that comes to mind when you’re contemplating the

72 | management.co.nz | DECEMBER 2013

options for hosting someone you want to impress. It’s worth the pleasant walk – or drive (there’s usually reasonable parking) – to the end of the wharf. Featuring warm timber tones and an outdoor deck with fireplace for alfresco dining, FISH serves the finest seafood and a wide variety of fish dishes. Located on the first floor of The Hilton Auckland, which housed White restaurant for 10 years, FISH is a partnership between the world renowned Hilton brand and the expertise of Simon Gault and the Nourish Group of restaurants. Better than this stunning location is the approach and philosophy of this premium but relaxed eatery. Based around high quality sustainable ingredients Chef Shane Yardley’s menu is, obviously, predominately a seafood one and of-

fers a wide array including sea truffles, Clevedon oysters, Paua, whitebait, diver scallops and of course fish. Dishes are designed to excite the palate and please the eye. The cocktail of scampi with Alaskan crab, tomato tea jelly and a very smart celery sorbet is a stunner. The desserts such as Nitro chocolate mousse or the hot and cold pina colada are in Gault’s inimitable style and are something of a show stopper. The centre piece of the restaurant is the visually appealing sharing table where guests can socialise and enjoy a lighter meal. FISH is an unabeatable combination of cool location, imaginative food, high quality ingredients and relaxed atmosphere. M

EXECUTIVE CLUB

Chef Shane Yardley Shane Yardley is the chef at the helm of FISH Restaurant overlooking the harbour in downtown Auckland. FISH is justifiably recognised as the go-to for fine dining and exquisite seafood dishes. Yardley has been described as Simon Gault’s protégé, recognised in the early 90s by the Master Chef as someone with high potential, Yardley went on to work with Gault for over 19 years. “I couldn’t dream of a better platform to launch a career in the kitchen”, says Yardley. “This apprenticeship provided me with just the right basic knowledge every good chef must have.” Since then his career has skyrocketed and now with over 20 years experience in the industry he has gained a number of serious cooking accolades. He has had leadership roles at some of New Zealand’s finest establishments including Euro (Auckland) and Bistro Lago (Taupo). Passionate about the perfect texture match, fresh flavours and quality produce, Yardley is inspired by sustainability and simple creativity in the kitchen. He enjoys fusing local flavours to suit the New Zealand palate with an international twist. New Zealand-bred and passionate about what New Zealand has to offer the culinary world Yardley spent much of his childhood travelling and developing an appreciation for excellent food.

INVEST IN YOUR FUTURE wITh a pOSTgRadUaTE bUSINESS dEgREE Supported distance learning allows you to find the optimal work-life-study balance.

• Master of business administration (mba) • Master of human Resources and Organisational development (mhrod)

BIT013.v2

• Master of professional accounting (mpa)

DECEMBER 2013

| management.co.nz | 73

EXECUTIVE CLUB

Shane’s picks Favourite cut of meat: Lamb rump Favourite vegetable: Asparagus Favourite three flavourings: Olive oil, butter and soy sauce Best cuisine tourism destination: Florence / Firenze Culinary indulgence: Pistachio icecream If you weren’t a chef: Rugby player Most overrated ingredient: Fennel bulb – good but too expensive for what it is Most forgettable dish or cooking moment? I forgot about it! Most influential cookbooks: Larousse Gastronomique and The French Laundry Cookbook Restaurant catches fire, you save yourself and… My sous chef! End of service treat: Again, pistachio ice cream Cook at home treat: Basic BBQ Expensive food indulgence: Caviar Pet peeve about other restaurants: Copying our ideas! Food aversion: Raw onion Cooking superstitions: Need to have my olive oil next to me Worst meal ever: When in hospital. No one can get better with that food. Always in your home fridge: Butter Favourite cooking tool apart from a knife: Microplane Last meal: Roasted BBQ lamb rump with asparagus

74 | management.co.nz | JULY 2013

EXECUTIVE CLUB

Where are you from and what made you pursue cooking as a career?

How did you come to be celebrity chef Simon Gault’s protégé?

I’m an Auckland boy and I first discovered cooking when I was in school. The only subjects I enjoyed were science, physical education and cooking – and it was my cooking teacher who first suggested I took it up as a career. I was never going to be an All Black so becoming a chef was the next best thing.

In 1994 I answered an advertisement for a job at Simon’s restaurant, Gault on Quay, and I was lucky enough to get the position. I knew it was my one big shot and that I had to embrace it – fortunately I’ve managed to stick with him ever since. For a number of years in between, I travelled to the United Kingdom and the United States for experience – and when I eventually came back home to stay I was made the head chef at Euro, a position I had for four years before moving down to Taupo to be the executive chef at Bistro Lago when it opened.

“ONE DAY ALL ORGANISATIONS WILL BE RUN THIS WAY” Global capacity - strong leaders - improved service - lower costs Meet the New Zealand leaders who have achieved extraordinary results using the Vanguard Method. Introduced by the UK’s John Seddon, founder of the Vanguard Method. New Year. New Start.

THE LEADERS SUMMIT. 17th February 2014, Wellington. www.vanguardmethod.co.nz DECEMBER 2013

| management.co.nz | 75

EXECUTIVE CLUB

What’s it like working with Simon Gault? Simon was always destined to become one of the country’s best chefs. Everybody who worked with him knew it. Long gone are the days when the head chef could be the grumpy bastard in the kitchen – now we’re the faces of the restaurant. Simon was really one of the pioneers of that in this country and now I’m learning from him all about how to be the face of FISH.

So who is your favourite celebrity chef? Simon Gault, of course.

FISH is obviously a seafood restaurant and sustainability of our oceans is on the radar. How do you approach the issue? My philosophy is that I got to go fishing with my dad and grandfather – and I’d like to be able to do the same with my son and grandson, too, some day. We’ve got to protect what we have and ensure it’s there for future generations. To do that, we need to switch on and be respectful of the ocean.

Who or what inspires you in the kitchen? I continue to be inspired by all the young chefs coming through and their thought processes. And I like to keep up with all the latest trends by constantly looking at what other chefs are doing around the world. We don’t ever copy dishes – that just wouldn’t work. Every chef has his or her own distinct style – but I do like to look 76 | management.co.nz | JULY 2013

at what the top restaurants are doing. Later, when I’m working on a new menu those influences come back and I’ve got something to build on and think about.

What are some food trends that you’re noticing right now? Food is always evolving – but I think sous-vide cooking is really in right now. Slow cooking food for longer than normal cooking times and really bringing the flavours out.

What five ingredients would you not be able to live without? Olive oil, butter, pasta, rice and balsamic vinegar.

What’s the best piece of advice you would give an aspiring chef? Work hard.

True cost of absenteeism An estimated 6.1 million days of work absences cost the New Zealand economy $1.3 billion last year, according to the first Wellness in the Workplace survey to be conducted here. Wellness in the Workplace is a joint study undertaken by the country’s largest health insurer, Southern Cross Health Society, New Zealand’s largest advocacy group for enterprise, BusinessNZ and specialist injury management provider Gallagher Basset. The nationwide study of around 97,000 staff was carried out in June 2013 in order to benchmark absence levels among employees. Phil O’Reilly, BusinessNZ Chief Executive, says Wellness in the Workplace is the most comprehensive assessment of where New Zealand stands in terms of the connection between absenteeism, sickness, costs and related practices in the workplace.

The average absence level per employee was 4.5 days, at a typical cost of $837, amounting to around $1.3 billion across the economy in 2012. Peter Tynan, Southern Cross Health Society Chief Executive, says it’s vital policy makers and employers have an understanding of the impact absenteeism has and what the key drivers are. “Now that the true cost of absenteeism has been quantified we have a broad indicator of the cost savings that could be achieved if employers can reduce the extent and duration of employee absences,” he says. Non-work related illness and injury is by far the most widespread driver of employee absence, closely followed by caring for a family member. “What the results tell us is that employers need to identify what lies behind absences and therefore consider what other support it may be appropriate

to offer their workers to improve attendance,” says Tynan. For more information on the benefits available through a Southern Cross health insurance work scheme call us on 0800 323 555. Key findings include: • The median total cost for each absent employee in 2012 was $837. • The direct costs of absence alone amounted to around $1.3 billion across the economy in 2012. • The average rate of absence in 2012 was 4.5 days per employee. • Manual employees take an average of 5 days, compared to 3.5 days for nonmanual.

NZ Management magazine makes perfect sense when looking for the perfect corporate Christmas gift… Gifting your clients has never been easier… To subscribe, phone Sue on 09 529 3000 or email subs@mediaweb.co.nz, and we’ll do the rest… 1 to 5 subscriptions save 30% ($54.67 each) 6 to 10 subscriptions save 35% ($50.77 each) 11+ subscriptions save 40% ($46.86 each)

DECEMBER 2013

| management.co.nz | 77

NZ MANAGEMENT COMPANY PROFILE

Digital Kiwi

takes flight

The rollout of new top-level internet domain name options around the world offers brand owners the opportunity to enhance their identity online.

n one of the biggest changes to the internet landscape since its inception, the introduction of new generic top level domains (gTLDs) will enable companies and individuals to register choices reflecting geography (.nyc, .africa), sports (.sport, .bike) or brand names (.nike, .google), for example. New Zealand company Dot Kiwi Ltd (Dot Kiwi) is offering a new gTLD option with undeniable New Zealand flair – .kiwi, which is leading the world as one of the first new gTLDs to launch to market and which they predict will see the number of domain names associated with New Zealand multiply dramatically. Over 1900 applications for new gTLDs were put forward to the Internet Corporation for Assigned Names and Numbers (ICANN) and Dot Kiwi was approved to become the world’s only .kiwi registry. Headed by information technology specialist Tim Johnson, the Dot Kiwi team includes a number of high profile New Zealanders on its board of directors including Peter Dengate Thrush, former chair of both

78 | management.co.nz | DECEMBER 2013

Internet New Zealand and ICANN and Sir John Hansen, a past judge of the New Zealand High Court. Johnson says that a .kiwi address provides a very different offering from the current New Zealand domain name and frees brands from having to be aligned with a .nz by default. “The word ‘Kiwi’ has become a strong international brand that reflects friendliness, innovation, respect, uniqueness, global and honest associations. Dot Kiwi gives New Zealanders the opportunity to invest in a more globally recognisable domain which is reflective of the ‘New Zealand’ personality,” he explains.” Essentially this means greater choice, branding creativity and the opportunity for organisations to ‘embrace their Kiwiness’ and differentiate themselves from competitors. “As the archway to your website, your domain name gives customers an experience before they get to your site. The .kiwi domain is fun, casual and friendly, which will give your website visitors, and email recipients a truly Kiwi introduction to your business.” While the move clearly signals

interesting opportunities for brand owners and a new direction in the way consumers use the internet, businesses need to be aware of the risks of possible trademark infringements within the new gTLDs. While the .kiwi domain name will not become a usable reality until 2014, Johnson recommends that companies take advantage of the ‘Sunrise Period’ to secure their .kiwi domain names, ensuring their existing trademark is appropriately defended and they get the brand identity they want. The IP constituency that represented the trademark holders when ICANN designed this programme demanded that ICANN mandate a ‘Sunrise Period’ for all new gTLDs as best practice. A Sunrise Period allows trademark holders the chance to safeguard the domain names that matches their trademark prior to domain names being offered to the general public. Previously when domain names were launched, companies were not always given the opportunity to proactively register their trademark. Johnson believes it’s good common sense that trademark holders should be

Dot Kiwi CFO Angus Richardson and CEO Tim Johnson.

Dot Kiwi is the team behind .kiwi, a new gTLD for Kiwis around the globe, and one of the first of a new wave of domains to launch. given the rights to a domain name first as it’s good for the end consumer. “We see the Sunrise Period as providing the opportunity for trademark holders to register domain names matching their trademark, thereby protecting their online identity and potentially saving themselves the time and legal expense incurred by threats down the line. It also reduces ‘cybersquatting’ and increases consumer security on the internet.” To help reduce the likelihood that brand owners are adversely affected by the launch of the new gTLDs, on 26 March ICANN opened the ‘Trademark Clearinghouse (TMCH)’ to enable brand owners to submit their trademark data into one centralised database prior to and during the launch of new gTLDs. The TMCH will accept and verify: registered trademarks; court-validated marks; and marks protected by statute or treaty. While it is not proof of any right,

nor does it create any legal rights, the TMCH could help companies protect their brand’s identity. The minimum requirement to participate in this Sunrise Period is a validated trademark entry in the TMCH. After verification, trademark rights are centrally stored and can be used to register the corresponding domain name in any new gTLD, before general registrations open. In addition, following the Sunrise Period, the TMCH offers a Trademark Claims service which notifies both domain name registrants and trademark holders of possible infringements. This means, when a prospective registrant wants to register “yourtrademark.kiwi” as a domain name, they will receive a message advising them of your trademark and the scope of your rights. The prospective registrant can choose to acknowledge the warning, but still proceed with the registration. If the registrant completes the registration, you will be notified of the newly registered domain, at which point you can decide whether to take action. The Dot Kiwi Sunrise Period is set to start

mid December, so it is best to register interest now. As an official TMCH agent, Dot Kiwi has created a simple process to register a company’s trademark on their behalf. Those that wish to proceed with using Dot Kiwi as their official TMCH agent should review their trademark information at www.iponz.govt.nz and visit www.dot-kiwi.com/sunrise. You will be asked to submit a TMCH Signed Declaration as well as a single sample of Proof of Use (evidence that the trademark you are registering is being actively used). Dot Kiwi will then confirm costs and file the application.

To find out more, contact:

info@dot-kiwi.com www.dot-kiwi.com

DECEMBER 2013

| management.co.nz | 79

NZIM

What about

the leaders? The winner of this year’s NZIM/Eagle Technology Young Executive of the Year Award is Landcorp Farming’s Mark Julian. The Award programme has, for the past 18 years, identified some of the nation’s outstanding leaders. With 2014 looming, now seems like a good to time consider just what is the world now looking for in its next generation of chief executives and enterprise leaders? Reg Birchfield reports.

hoosing one of three highly talented individuals to don the mantle of the NZIM/Eagle Technology Young Executive of the Year is never easy. I know because, one way or another, I’ve been involved in the process since the beginning. The judges ask themselves many questions, some of them required, others rather more intuitive and experience based. And consciously or not, they think about how the individuals seated before them might fit a future context. Because, cliché or no, it’s a rapidly changing world out there and tomorrow’s leaders must be fit to meet the challenges of a vastly new environment. Some recent research on the “sea changes” reshaping the chief executive’s world contains some insights. For example, a study of 62 New Zealand and Australian chairs, directors, CEOs and other C-suite executives by global recruitment consultancy Heidrick & Struggles, suggests that boards want CEOs who adjust quickly to change, embrace innovation and promote high performers. It’s difficult finding and holding on

82 | management.co.nz | DECEMBER 2013

to talented leaders in what is currently a “fragile market”, according to the study. And apparently it’s at least in part a “skittish market for talent” because, as one leader put it, there’s a breakdown of trust across business, economic and political institutions. This, it seems, is “having a subtle and unsettling effect on both corporate morale and consumer confidence”. The survey respondents apparently agreed with International Monetary Fund chief Christine Legard, who thinks the world is “in the ante-chamber of a new global economy driven by a growing sense of individual empowerment, a reallocation of power to Asia, shifting demographics, and climate change”. This new age of individualism apparently poses a challenge for corporate management which is still in large measure built around chain-of-command leadership thinking and practice. The report’s editors say three broad themes emerged from their interviews. These centred on experience, innovation and people performance. Organisations are apparently looking for leaders with: • a history of delivering results by shaking

thing up, making hardcore efficiencies and delivering results; • the strategic creativity and willingness to try new things, operating from a base of well-understood differentiation to capture market share from competitors; • the ability to launch a forensic examination of their bench strength and corporate cultures to ensure high-performers are moved quickly into the front line. The consultancy thinks more companies are conducting internal culture audits and change programmes to implement the flat (management) structures that foster innovation. Their clients increasingly want CEOs who are “smart, emotionally intelligent and truly collaborative”. Senior executives need to be “inclusive, nimble and strategic – all at the same time”, the report adds. The reason, according to at least one board chairman, is that organisations can no longer plan just once a year. They must review strategies continually and respond to changes in technologies, the environment or disruptive competitors. “It’s not the strongest or most intelligent companies that (now) survive, but those

most adaptable to change,” he said, then added: “Of course perspective is formed by experience, but what has made you successful in the past isn’t necessarily going to maintain your success in future.” The study also suggests that “a new era is (rapidly) overturning” traditional thinking. Companies want leaders who can articulate a strong, different and competitive business model. CEOs must: • pay attention to detail; • manage multiple horizons; • understand the broader impacts of their industry’s structure; • take the right strategic path. “We are seeing a more holistic approach to talent. Companies understand that leadership is a team activity, with close interaction between both board and executive throughout the business cycle. It’s not so much about the leader, but about leadership,” the research editors conclude. Where are these new CEOs coming from? According to America’s global management consultancy Booze & Co’s 2013 CEO survey, companies are looking both inside and outside their ranks for depth of experience and fresh thinking. And companies are becoming more proactive about planning CEO successions. The annual study of CEO changes at the world’s largest 2500 public companies shows that the CEO turnover rate in 2012 was 15 percent, the second highest rate since 2000. Companies are now planning more carefully to ensure they have the leaders they need, according to the researchers. Planned successions made up 72 percent of all 2012 successions. Most companies seem to seek familiarity in their new chief executives. A solid 71 percent of new CEOs were insiders – promoted from within – which gives some substance to what the study calls, the “myth of the global CEO”. A re-thinking of economic and politics also figures in the Australasian study. Business leaders are, it suggested, asking whether the economic and political models of last century should be reexamined. Disruptive influences in

business and society will continue longer than most people realise, according to one respondent. “We are travelling along a disruptive continuum that we’ve been experiencing for several years now and this is likely to continue for several decades.” Both the economic and democratic models are apparently up for a re-think and in danger of “hitting the wall” in the opinion of some respondents. The economic model driven by sustained and strong GDP growth can’t be relied on to support ever-increasing demands for spending on defence, infrastructure, maintenance and social support for the young, ageing and unwell, warned as least one of the leaders interviewed. The flight to CEOs with experience is driven by a move away from growth built on financial engineering and mergers and acquisitions. It’s now about performance management, keeping cost down and “sweating” assets harder. Perspectives on the “new CEO” are emerging from an increasing number of academic studies of chief executive recruitment. Many suggest that candidates from outside their respective industries do relatively well. According to the US’ Strategy+Business magazine, companies pay more for generalists than for specialists. That probably fits well with New Zealand CEOs who tend to be generalists. NZIM chief executive, Kevin Gaunt’s take on all this is simple. “Tomorrow’s senior executives will undoubtedly need to be more experienced, innovative and people focused. NZIM has been encouraging its members to appreciate this changing need for some time now. “We look for all these qualities in the individuals who come through into the Young Executive of the Year programme. The award is a vitally important promoter of leadership talent. It also stimulates employer awareness of the need to develop and look after talented young managers. I hope, and I believe we’ll still be promoting this programme for another 18 years.” M Reg Birchfield Life FNZIM is a writer on leadership, governance and management. reg@rjmedia.co.nz

INSPIRING MANAGERS Our aim is to build management capability through membership, development and research. Our focus is to: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • To identify leading management role models and provide awards that recognise the career and educational achievements of managers.

NZIM Inc CEO: Kevin Gaunt FNZIM, FAIM Email kevin.gaunt@nzim.co.nz Auckland Office Contact: Tait Grindley PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, 0800 800 NZIM Email enquiries@nzim.co.nz Website www.nzim.co.nz Wellington Office Contact: Shaun Sheldrake PO Box 11781, Wellington 6142 Ph 0-4-495 8300, 0800 800 NZIM Email enquiries@nzim.co.nz Website www.nzim.co.nz NZIM Southern Regional Director: Michael Weusten FNZIM CEO: Joseph Thomas AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-357 8003 Email info@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

NZIM FOUNDATION CHAIRPERSON: DAVID MOLONEY FNZIM SECRETARY: JIM THOMSON PO BOX 67 WELLINGTON, PH 0-4-473 0470 NATIONAL_OFFICE@NZIM.CO.NZ

DECEMBER 2013

| management.co.nz | 83

FACE TO FACE

Kevin Gaunt: management's lifetime lessons

Management, as many studies show, matters greatly to organisations and economies. But, as one committed career practitioner sees it, management is currently a shadow of its former self. Kevin Gaunt talks to Reg Birchfield about managers and managing as he prepares to exit as chief executive of the New Zealand Institute of Management.

evin Gaunt switched his 40 something year management career on as a graduate trainee at Ford Motor Company’s head office in the UK. “Leadership wasn’t a concept then. Management was the big thing,” he reflects. The in-depth development and discipline understanding that came from a formal and structured management internship has, says Gaunt, all but disappeared. A consequence of which seems to be that individuals are now, more often than not, “thrown in at the deep end and expected to develop management skills on the run”. This shift in corporate practice has its upsides for NZIM which now provides the “been there, done that” management training that’s still necessary but not internally delivered. There is, however, another dimension to the switch in organisational attitudes toward management. “Organisations and individuals both seem less interested in the science of management and its development than they were,” says Gaunt. “Much of that interest was probably driven by the insightful writings of management thinker Peter Drucker.” There is, he adds, no management champion of equivalent

84 | management.co.nz | DECEMBER 2013

FACE TO FACE

intellect or understanding to advance today’s management imperative. The level of “interest” in management that drove its adoption and evolution four or five decades ago has withered. “The understanding that there are important things to learn about management has disappeared,” he adds. Management thinking and development has been gazumped by leadership. Leadership, as today’s proffered organisational differentiator, became “fashionable” 20 or so years ago, says Gaunt. “Our students now want to debate the eternally circular argument about the differences between management and leadership. And consultants, myself included, have built our careers by promoting leadership as something a notch higher than management. “Now that I’m at the wiser end of my learning experiences I see leadership as just one, albeit key, element of managing. It is not something that stands helpfully alone. Leadership skills enable managers to communicate clearly and effectively. It’s about delivering a vision, making oneself understood and empowering others to act.” Gaunt has worked and consulted for some of New Zealand’s largest enterprises. For the past 10 years he’s filled two of NZIM’s top slots, first as its Northern Region and then its National chief executive. He steps down at the end of this month because “10 years in one place is a long time”. And he’s somewhat bemused by what he sees happening, and indeed not happening, in management development today. DRUCKER’S INFLUENCE Drucker, he says, had a profound influence on organisations of every kind by both articulating and proving management’s critical importance. “He constantly and accurately defined management’s key attributes. He also described the future for managers when the world was changing rapidly,” says Gaunt. “The world is still changing, even more rapidly, but no one springs to mind that I think demonstrates the same insightful and visionary thinking.” He picks Jim Collins, Marcus Buckingham and John Kotter as among the best of today’s management researchers, thinkers and writers. Despite the plethora of new management books and leadership commentary still streaming into the market, very little of it “offers any new insights” into what is happening to organisations and how they should be managed in future. “The way we lead and manage organisations is changing so rapidly that we seem unable to grasp the full picture and predict what might be,” Gaunt offers.

Management has, according to Gaunt, fallen victim to a particularly pernicious and potentially destructive form of executive hedonism. “Management has become dominated by personal greed over the past decade,” he says. “Look at the [excessive] salaries now paid to executives in leading but often non-performing companies. We desperately need someone to emerge who can intellectualise the likely impacts and outcomes of these trends and communicate a clear and commonsense picture of management’s future.” The hiatus in management thinking and interest can, Gaunt thinks, be sheeted home to what he calls organisational and operational complexity. “We can’t get our heads around the issues [managers face] because of the complexities of today’s organisation, the global marketplace and the impacts of new technologies. In 20 years managers will be using tools that haven’t yet been conceived of,” he says. Gaunt is no managerial or technological Luddite. He embraces and sees the potential upside of change if thinkers, senior executives and directors can grasp the complexity issues. He built his career on a deep personal and professional understanding of technology’s organisational implications. After his cadetship at Ford, Gaunt moved to New Zealand and joined what is arguably now the country’s most successful home-grown computer services enterprise, Datacom. He then opted for his first public sector assignment with the Health Department. He joined the management team at New Zealand’s head office of Britain’s then largest IT company, International Computers before starting an eight-year stint as a partner at global consultancy Deloitte. Seven years at the Electricity Corporation, then a newly formed state owned enterprise, and four years at forestry giant Carter Holt Harvey, rounded out his hands-on management experience before joining NZIM. ALL CHANGE Gaunt’s arrival in 2003 at the then 60-year-old management learning organisation coincided with a period of dramatic internal and organisational re-think and change for NZIM. This change process hasn’t stopped. He promptly and dramatically reversed the sad state of the Northern Region’s financial woes and then, among a number of other significant and much needed changes, developed and published an NZIM Management Model, integrated NZIM’s original five websites, established an organisational Brand Book and forged a closer working relationship with the Australian DECEMBER 2013

| management.co.nz | 85

Now that I'm at the wiser end of my learning experiences I see leadership as just one, albeit key, element of managing. Institute of Management (AIM) and the Asian Association of Management Organisations (AAMO). In 2010 Gaunt project managed the integration of NZIM’s Northern and Central regions to create a more efficient, focused and integrated national body, NZIM Inc. He was appointed National chief executive in 2011. So far, and to Gaunt’s ongoing disappointment, the Christchurch-driven southern region has remained outside the national NZIM organisation. The absence of that particular parochial plank notwithstanding, a platform is now in place from which a new, more nationally-focused NZIM, will inevitably emerge. Today’s big and small picture frustrations aside Gaunt has, he says, enjoyed his career in management. “It’s been challenging. It has also delivered outstanding learning experiences. I’ve learned, for instance, to deal with the pain some challenges inflict, particularly when you sometimes fail. I’ve also learned that it’s important to recognise and embrace challenge and pain rather than seek comfort and security. It’s unquestionably better to push the boundaries and live outside the box.” Gaunt has enjoyed every one of his management and leadership assignments, but appreciation of the fact followed only after his departure. “I’m usually too busy in a role to think about whether I’m enjoying it or not.” One outcome of Gaunt’s “apprenticeship” approach to constructing a robust management career is an abiding interest in how organisations work and how people engage with their jobs. The prospect of diminished interest in the fundamentals of what makes organisations work and what best motivates people is what concerns him most about today’s “more materialistic” approach to management. “I don’t think organisations focus sufficiently on developing their managers and leaders. Comparisons between organisational outcomes now and say 40 years ago clearly demonstrate this,” he says. “We need a very different approach to [people] development for tomorrow’s world. Getting this right is the big challenge for organisations like NZIM.” FADS & FASHION Management and leadership theories and practices are as cyclical and subject to fads and fashion as every other discipline. Signs are emerging of a swing back to more thoughtful and experience-based management and the “quiet leader” approach to leading. Gaunt sees it as a natural reaction to the outlandish, 86 | management.co.nz | DECEMBER 2013

highly charismatic and overpaid “guru” leader as epitomised by men like America’s former GE chief executive Jack Welch. Either way, good management is, to Gaunt’s way of thinking, as important to the future as it was to the past. “Management is as essential as the air we breathe. It has natural cycles but it is still a fundamental organisational need. It switches from being market to finance focused and from being autocratic to being enlightened and empowering. Organisations and people respond differently in good times and bad. Managers play an essential generic role in balancing these changing forces and dynamics. A good manager needs positive personal attributes as well as technical managerial experience.” Gaunt’s departing hopes and expectations are that NZIM will adapt and change to retain and reinforce its position as management’s peak body in New Zealand. He expects it to work even more closely with Australia’s AIM and with bodies like AAMO and UK-based online learning organisations like Management Direct to deliver what the world’s pressured managers and leaders need to equip them with the skills to deal with increasing organisational complexity. “NZIM, like any other professional body, must present its members and organisations in general, with a compelling vision of management’s future. It must continue to contribute at the highest level to government policy, particularly where it impacts managers and young people wanting to learn about management. Most important, it must deliver a management development framework that is straightforward, unambiguous and based on championing best management practice. NZIM needs to remain relevant to today’s managers and leaders. It’s been good over the last couple of years to see NZIM once again get the recognition it deserves for the initiatives it has taken to, for example, involve managers with the drive to boost productivity in New Zealand enterprise,” he adds. Gaunt believes he’s given NZIM’s transition strategy his best shot. “The building blocks are in place to secure its future and meet new challenges. Despite the difficulties ahead, I’m optimistic about NZIM’s future just as I am supremely optimistic about the re-emergence of interest in and understanding of the key role managers play in building the organisations to deliver the nation’s best economic and social future.” M Reg Birchfield Life FNZIM is a writer on leadership, governance and management. reg@rjmedia.co.nz

“Project K was definitely the most challenging, boundary breaking, life changing, unforgettable journey of my life.” Teneeka Taurere, 2013 Project K Student

JOIN US TODAY and invest in NZ’s future

“FYD changes lives. That is why Deloitte and I have been involved with FYD since its inception over 19 years ago.” Dean Ellwood, Partner, Deloitte

FYD proudly brings you :

www.fyd.org.nz | 09 477 6237 Growing Great Kiwi Kids - Whakatipu Tamariki o Aotearoa

POLITICS COLIN JAMES

A Top 200 government?

world. (Downside: the government has put skimpy resources into getting New Zealanders “Asia-literate” – that is, deeply understanding Asian cultures – so they can truly exploit the opportunities.) John Key’s government has continued to streamline and recast regulation to make doing business easier. In fact, its reforms of resource management, local government, workplace relations and mining law alone have made it the most active reforming government since the revolutionary 1984-92 period. It has also upped major road building, started on fast broadband and set up a project to get more irrigation dams built.

“A high-performing government focuses on and enables opportunity.” But risks are only one dimension. The difference between a competent government and a high-performing one is how much it focuses on and enables opportunity – not for itself, a company’s straightforward task, but for citizens and economic actors. At one level that task involves removing barriers to opportunity. For companies, successive governments since 1984 have scored well on various global measures of the business operating environment, including ease of doing business and low corruption. New Zealand consistently comes in very high, top on some measures. Governments have also done fairly well – very well for a small, open economy with zero leverage – in getting trade agreements to open up markets and improve behind-theborder access to get problems fixed. Trade Minister Tim Groser has been involved in many of those deals and is regarded as one of the most able in the 88 | management.co.nz | DECEMBER 2013

Some of its education changes are aimed at getting more focus on business’s immediate workforce needs. Welfare, public and fiscal reform help, too. All pluses for opportunity. But has Key’s cabinet put weight into science and research to lift the game? It has reorganised output to focus more on responding to needs existing businesses identify. But it has not made the big investment lift chief science adviser Sir Peter Gluckman demanded, which in small countries like Denmark and Israel generate opportunities to start up and develop high-technology ventures. The government still invests less than the OECD average. It is lukewarm about backing the “big pipe” internet capacity researchers need to fully integrate into the world research ecosystem from here, so they don’t have to live offshore to get the connections. Key and Bill English make much of low interest rates. But they have not significantly dented the chronic balance

of payments deficits (if you take out Christchurch reinsurance inflows), so foreign debt keeps rising and businesses’ cost of funds is higher than in competitor countries. The tax system favours multinationals over locals. Moreover, the deregulatory law changes have not settled policy. If Labour leads the government after 2014, it will reverse many of those changes. That is a significant regulatory risk for business. Add in tightening climate change and environmental policy. The Key government has made a start – but only a start – on social and educational investment to remove barriers to children being able to learn so they can become productive members of businesses’ workforces. A unanimous, far-reaching, research-andeconomics-based parliamentary health committee report on 18 November recommended a step-change in investment in pre-conception, antenatal and baby years to rescue the large numbers who get a bad start and, as a result, never make great workers. Life was a lot simpler for governments in the days when they had only to manage risk. But as Top 200 businesses know, opportunity is far more complex – and rewarding. M Colin James is New Zealand’s leading political commentator and NZ Management’s regular political columnist. ColinJames@synapsis.co.nz

Photo: thinkstockphotos.com

he Top 200 is an uplifting night out: all about high-performing companies and executives. How would the government go in such a contest? These are not two separate questions. Companies can do better – especially offshore – if the government is highperforming. Governments don’t do well if companies aren’t high-performing. Governments’ role is classically defined as managing risk – originally the risks to national integrity from other nations but in the modern world a far more complex array of internal and external factors.

BOB EDLIN ECONOMICS

Santa’s largesse Photo: thinkstockphotos.com

t’s that time of year when a certain gent with white whiskers clad in a red suit defies the rules of physics and aeronautics (and flaunts aviation regulations for good measure) by steering a reindeer-driven sleigh packed with goodies through the sky to bring gifts to all children. But have you observed (socio-economically) how he dispenses his largesse? Obviously his cargo includes an array of toys with a wide price range, were you to buy them in the shops. But the expensive stuff goes to rich kids and the cheap stuff to poor ones. The poorest, according to anecdotal evidence, will get nothing, no matter how good they have been during the past 12 months.

very definition still has, quite frankly, you know, it’s, sort of, wherever you put the measure, you’re always going to have people in poverty, because you’re taking a median income, taking housing prices off it, so there’s always going to be people…” This was grist for the mill of Bennett’s political opponents, but she stood her

“The easiest way to help the poor is by cutting taxes on fuel, alcohol and tobacco by half” Your columnist makes these observations because “child poverty” (an emotive expression that draws attention away from their feckless parents and on to their innocent offspring) was on the political agenda at time of writing. Social Development Minister Paula Bennett had been disarmingly candid on TV One’s Q+A show when asked if she accepted Children’s Commissioner Russell Wills’ number of children in poverty – 265,000 children. She conceded she didn’t know by saying she thought it was “anywhere between about 150,000 and 270,000”. Then she defended her disinclination to get an official measure (something Wills has undertaken to do with private money) and was vague (incomprehensive, actually) when asked: “So what is your measure of poverty?” For the record, she replied: “So why do an official measure that then by

ground at Question Time in Parliament. There are a number of measures of poverty, she told her inquisitors, but the Government did not agree there was a need to have one official measure, “and that is because we think what the children need most is action”. Hence the Government is putting more than $15 million into the Children’s Action Plan, and $188 million has gone into welfare reforms, and more than 7000 sole parents were going into work… So while the Opposition was more interested in counting it, she contended, “we are interested in making a difference on the ground, and that is what those children need”. Actually, Labour is interested in action too. Before the last election it pledged to lift children out of poverty by extending Working for Families, Paid Parental Leave and early childhood education. It is likely to be working on

fresh policies for the next election. But it also is committed to so-called “sin taxes”. Health spokesperson Annette King told the NZ Healthcare Summit early in October “we need to tackle obesity as we have tobacco”. And Green Party health and wellbeing spokesman Kevin Hague has said the Greens would endorse increased taxes on unhealthy products such as alcohol, cigarettes and sugary drinks. But a study published in October by Britain’s Institute of Economic Affairs says the easiest way to help the poor is by cutting taxes on fuel, alcohol and tobacco by half. The poorest British households pay on average 37 percent of their gross income in direct and indirect taxes, compared to the richest quintile who pay 15 percent, and the poorest 20 percent of households spend an average of £1,286 a year on ‘sin taxes’, or 11 percent of their disposable incomes. A smoker from the poorest fifth of families spends up to 22 percent of disposable cash on cigarettes. Slashing tax on booze, tobacco and fuel could save the poor up to £650 a year. Similar data likely would be found here. The UK report concluded: “The most effective way for the state to lift people out of poverty is to stop taking their money.” Maybe Father Christmas could slip a copy into the stockings of our politicians. M Bob Edlin is a leading economic commentator and NZ Management’s regular economics columnist.

DECEMBER 2013

| management.co.nz | 89

DECEMBER 2013 VOL 08 NUMBER 06

ISSN 1177-5815

ON MANAGEMENT

NEW ZEALAND INSTITUTE OF MANAGEMENT IN ACTION

International resources at your fingertips NZIM members can access invaluable online information to guide their businesses and careers.

hether they want a quick brush-up of some essential skills or want to start studying a topic in more depth, NZIM members can access the material to help them on ManagementDirect, NZIM’s online resource for managers. It offers interactive education opportunities, short video clips featuring some of the leading lights in international management, up-todate e-journals and e-books on a range of management topics, research summaries and practical introductions to key management topics, skills and techniques. There is a team of eight full-time researchers working on ManagementDirect and it is constantly being updated. NZIM membership manager Liz Fernyhough said the programme had developed out of a partnership with the Chartered Management Institute (CMI) in the UK. That partnership officially began this year but Fernyhough said the two organisations had a longstanding relationship, as both were international organisations interested in developing management skills. “We had that connection so they made it available to us to use, and we decided to partner with them.” Personal members have access to ManagementDirect as part of their membership benefits. Corporate members can nominate individuals from their teams to have access and it comes at no extra cost to the membership. The resources are structured so they are useful to managers at all stages of their careers, and in businesses of varying sizes. About 300 people have so far accessed the site and Fernyhough said the response had been very positive. “It’s a great resource for managers today because they’re pressured for time and can’t always get to events in person. Managers these days also tend to work on all sorts of different kinds of things, and shoulder a lot of different responsibilities.”

She said they could use the resource to access information across a wide range of topics, as well as seeking valuable inspiration. “There are video talks from business leaders, which are inspirational and insightful, and there are also briefings on different topics.” Recently, the top-searched topics were personal development, stress management and documentation for project planning and initiation. The site offers best practice document templates and checklists to help

around to get so much more of a handle on a project.” There are interactive e-learning modules that cover key management issues as well as pre-assembled “Learning Journeys” that include a range of resources related to selected management topics. The scenarios on offer would be very helpful to a lot of managers, Fernyhough said. “For example, if you want to know about change management, you can take yourself through

If you’re studying project management with us at NZIM, there’s all the extra “project management resources there for you to look at as well. You can choose to use ManagementDirect in a way that’s quite tight, just to stay informed, or

”

you can start digging around to get so much more of a handle on a project

guide managers unsure about everything from business cases to marketing and sales. It also offers definitions of management concepts, introductions to some of management’s top thinkers and creative tools to help extend managers’ own skill sets. Fernyhough said someone who was thinking about project management, for instance, could log into the site and, whether they had five minutes or 20 minutes, feel that they had received some valuable information to help them feel a bit more on top of things. The site offers a five-minute briefing, 20-minute brief and extended briefing on the topics covered. “And if they want to start going into topics in more depth, there’s that option too. For example, if you’re studying project management with us at NZIM, there’s all the extra project management resources there for you to look at as well. You can choose to use ManagementDirect in a way that’s quite tight, just to stay informed, or you can start digging

a scenario based on a particular topic and see how well you fare, and what advice is given to you as a result. From that aspect, if someone is a bit pressure, there are ways of getting the best from it very quickly.” Fernyhough said she was particularly pleased about the range of e-journals that were available. The latest copies of the Harvard Business Review, and UK Management Today are available. “They can go in and check out articles on all kinds of topics, and it’s right up to date.” Members can also browse about 250 e-books. “It’s almost like having a library on your doorstep, it’s very useful,” she said. While using the site, members can keep track of their learning with My Learning Journey, and keep notes on their selfassessments and CPD. “As you go through and find articles that you think are useful, you add them to your file. Then you can keep going back and referring to them easily.”

Focus on Management

NZIM STAFF NEWS

Farewell to an influential CE

Celebrating the work of NZIM’s Management Mentors I

he staff and facilitators at NZIM Inc. would like to wish Kevin Gaunt farewell, as the influential and committed Chief Executive stands down after 10 years with the organisation. Kevin celebrated his 10-year anniversary at NZIM in June 2013 and was formally recognised for his service to NZIM by the board and his management team at various events across the regions. At that point Kevin used the milestone to reflect on his time in the top job and made the decision to leave NZIM to allow the business to move into its next development phase. Kevin first joined NZIM Northern in 2003 as Chief Executive and will be remembered for being the CE who “sorted it out” after a major restructure was required to keep the region from dissolving at that time. After seven successful years building the capability within the staff group and financially growing the region to consistently positive results, Kevin was appointed the Project Leader to steer the NZIM integration between Auckland and Wellington. Kevin was appointed the CE of the newly integrated NZIM Inc. at the conclusion of this work in October 2011 and since then has structured the business to become the recognised peak body for management best practice in New Zealand. His many achievements can be seen in full in an article on page 82 written by Reg Birchfield. After a lot of achievement, challenges, triumphs and memories, Kevin leaves having made a significant impact on NZIM’s past, present and future and we thank him sincerely for his tenure. On behalf of all of the team at NZIM we wish him all the very best.

Focus on Management

n two largely well-attended evening events held in both Auckland and Wellington, NZIM has formally recognised the extraordinary achievement of its Management Mentors. For the past 12 years, NZIM has offered a professional mentoring service to members with the aim of assisting New Zealand’s best and brightest talent to achieve their management and career goals. This is achieved by NZIM offering a well-developed and structured individual mentoring service that facilitates an environment to meet and match suitable mentees with experienced mentors in both the public and private sector. By participating in a mentoring relationship, mentees get to draw on the experience, wisdom and insight gained through past experiences of their mentor, who may be able to assist them to move through challenging situations, achieve their professional development goals or to effectively navigate through restructures, leadership aspirations or transitioning into a new industry. Events were hosted in each region to recognise the dedicated effort of the Mentors, their service to NZIM and to celebrate the achievement of successfully matching and working with over 200 mentees over this time. NZIM’s Mentoring Manager, David Brown, was on hand to present them with an NZIM-accredited certificate as a Management Mentor and acknowledge the wonderful work that has been achieved all over New Zealand. The keynote speaker at the Wellington event, Phil O’Reilly from Business New Zealand, commented; “NZIM’s commitment to building management capability through the programmes that they run and by working with up and coming managers through the likes of the NZIM Mentoring programme, is a key ingredient to the growth of the New Zealand business environment as we prepare for a buoyant 2014.” Current NZIM Mentors represent a wide range of industry, public and private sector markets and are mostly from experienced backgrounds of high level of management, leadership and governance. For more information about the NZIM Mentoring Programme go to www.nzim.co.nz or phone 0800 800 NZIM.

HOT OFF THE PRESS!

Get your printed NZIM 2014 Programme and Course Guide NOW Call the NZIM Team to order your copy at 0800 800 NZIM or find all 2014 training dates already listed at www.nzim.co.nz

NZIM

NZIM announce partnership with

‘The Art of Deliberate Success’ T

Dr David Keane.

NZIM will offer the TADS programme both as an in-house and public offering from January 2014 in both NZIM Auckland and Wellington. For full information and registration go to www.nzim.co.nz or phone 0800 800 NZIM. Further information on the TADS programme is available from: www.artofdeliberatesuccess.com

Recognising a lifetime of high achievement A

t a recent NZIM Management Mentoring event in Wellington, David Brown was awarded the special honour of a Life Fellowship at NZIM. David Brown, has been an NZIM member for over 20 years, however he is best known for

David Brown and Kevin Gaunt.

his commitment and dedication as the NZIM Mentoring Manager based in Wellington. David formed the NZIM Mentoring Programme over 12 years ago and has worked hard to build the credibility and reputation of the programme over this time. He has personally engaged with every mentor and mentee, designed the robust structure and code of ethics and has built a professional network across New Zealand in both the public and private sector that rivals any senior executive in New Zealand. He is proud that he has now facilitated more than 200 matches that include chief executives, media personalities, police and fire commissioners. After special consideration of the application to award David with this recognition, the NZIM Board felt that David’s contribution to NZIM and also his own professional history as a manager, chiefexecutive and mentor that he is a worthy recipient of the NZIM Life Fellow accreditation.

Merry Christmas

from the Team at NZIM

Photo: thinkstockphotos.com

he New Zealand Institute of Management (NZIM) is pleased to announce a new partnership with the international programme “The Art of Deliberate Success”. The Art of Deliberate Success (TADS) is a two-day workshop with integrated coaching that teaches what it is that successful people do that others don’t. The programme, which is based on 25 years of extensive research and practice, was created by New Zealand-based international thought leader Dr David Keane. As of 2014, the TADS programme will be offered as part of the NZIM Professional Development programme both as a public course and as an in-house opportunity. The creator, Dr Keane says: “Uniquely, the programme defines success as a combination of achieving both personal and professional goals so that the focus is on the ‘whole’ person rather than just their work life. When organisations help their people to see the meaning of success in their lives, they become more focused, more productive, and more engaged with their work.” During the two-day workshop, participants take a step back from their everyday lives and get to discover what exactly success means to them – personally and professionally. They also learn how successful people think and the tools and techniques they use to achieve what’s important. After the workshop the workshop each participant receives one-hour of individual coaching. In announcing the partnership, Tait Grindley, General Manager of NZIM, said: “In these times, it’s important that organisations find creative ways of engaging the hearts and minds of their people, and attending the TADS programme is a very tangible way of doing just that. Given that 96% of participants who have already gone on this workshop have rated the programme with ‘excellent’ or ‘very good’ we’re very confident that those who attend in the future will gain huge benefits.”

Focus on Management

NZIM Southern Inc 28th Annual Charity Golf Tournament 2013 T hank you to all participants in the recent Annual Golf Tournament. This was a great day of golf and networking which generated a donation of $6,145 to assist the work of Camp Quality, Christchurch. Thanks to all our Hole Sponsors whose contribution ensured great value for players as well as supporting fundraising for the childrens charity. A new feature this year was the Silent Auction which, alone, raised $1,545 of the total and this was only possible through the generosity of our kind prize donors. Of special interest this year was our lucky draw prize – a shiny new Slim LED 32” Flatscreen

1st Prize winners - BDO team ( L to R): Noel Walton, Michael Rondel & Martin Trimble, together with NZIM Southern Inc, CEO, Joseph Thomas (absent from photo; Nathan Astle).

Kim Grafton - South Island Manager Air New Zealand presents the Nearest the Pin prize to winner Maryanne Marlow.

Mayor Presents at Annual Fellows Function

Professional Qualification Certificate Presentation (L to R): Shane Atherton (AFNZIM), Neil McKellar (FNZIM) Hon. Lianne Dalziel (Mayor), Joseph Thomas (CEO NZIM Southern Inc), Kaye McNabb (FNZIM), Warren Gilbertson (AFNZIM), James Jorgensen (NZIM Southern Inc Deputy President).

e were delighted that seventy-five Life Fellows, Emeritus Fellows, Fellows and Associate Fellows attended our Annual Fellows Function in Christchurch giving us the opportunity to thank and update them on positive developments within our organisation. Chief Executive of NZIM Southern Inc, Joseph Thomas, outlined some new learning and development initiatives for 2014 and encouraged our distinguished guests to spread the word. Only 5 weeks into her new appointment, we were delighted to have the Mayor of Christchurch, the Honourable Lianne Dalziel, as our special guest speaker, also assisting in the presentation of certificates to two new Fellows and two new Associate Fellows. We appreciated the Mayor’s update on the council’s key priorities for the year ahead. Feedback from the floor endorsed the Mayor’s positive message that Christchurch businesses and the wider community are ready, willing and able to collaborate to take up the reigns of the recovery phase of post earthquake response.

Focus on Management

TV, gifted by Christchurch Casino. All eyes were on the Hole in One/ Nearest the Pin prize, with special incentive once again provided by a fabulous travel voucher from Air New Zealand. Finally – our huge thanks to our primary sponsors, The Copthorne Hotel Commodore – without whose help this event would not be possible and whose ongoing support as partners of NZIM Southern is warmly appreciated. Ably steered through the day by another sponsor – Noel Chambers, from Chambers Strategy + Communications in the role of MC, we had a memorable day wth friends old and new.

Staples Rodway team member Mark Ensor Lucky Draw Winner of a 32”Television.

Copthorne Hotel Commodore – Ladies Team.

NEW DEVELOPMENTS AND LEARNING INITIATIVES FOR 2014

embers and clients of NZIM Southern Inc are encouraged to engage in learning which has been directly informed by learner experiences as well as honed and polished by great instructional design. Learning rather than ‘training’ is at the forefront of our work. Learning Design has played an enormous part in programme development for 2014, structuring up-to-date evidence based content, relevant activities and integrating workplace learning principles to maximise the learning opportunities for every session. We have adapted the use of video technology and smart board into our programmes. In 2014 we aim to provide greater integration of technology and scenario based learning, thanks to the Crothall Fund for their support in this new development. At NZIM Southern Inc our focus is on the Learner Experience ensuring pre and post course support, including support for leaders and managers in organisations to extend the learning beyond the course and to hold continuing professional conversations at work. We have also re-introduced Special Interest Groups in leadership topic areas with great success. Look out for the Project Management Special Interest Group event in February 2014. The Operational Excellence Special Interest group will be launched next year. When you receive our 2014 Course Planner please contact us for assistance as you plan professional development for yourself or your team for 2014. Contact: Roger Gabites E: roger@nzimsouthern.co.nz ph: 029 770 9670 Amanda McClelland E: amanda@nzimsouthern.co.nz ph: 029 770 9669

AUCKLAND

WELLINGTON

JANUARY

For more information phone 0800 800 NZIM (0800 800 694) or visit www.nzim.co.nz.

30-31 Change Management 30-31 Dealing with Diffucult Behaviours

FEBRUARY

10 Intercultural Awareness & Communication Skills 10-11 Team Leader - Essential Skills 11-12 Conflict Management and Mediation Skills 12-14 Accounting for Non-Accountants 17-18 Train the Trainer 17-19 Management Fundamentals 19-20 Marketing, Planning & Control 20-21 Accounting Principles 20-21 Courageous Conversations 24-26 Project Management Fundamentals 26-27 Human Resource Management 26-27 Team Leader - Building Effective Teams

MARCH 3 6-7 10-11 13-14 17-18

Internal Consulting Skills Unconscious Bias Think On Your Feet Developing a High Performing Team Problem Solving and Decision Making 18-19 Interpersonal Communication Skills 25-26 Leadership 25-26 Team Leader - Operational Management

APRIL

3-4 3-4 7 7-8 8-9 9-10 11 14 15-16 15-16 29-30

Business Communications Health and Safety Management Effective Business Writing Negotiation Skills Needs Analysis and Programme Design Business Finance Managing People and Performance Effective Time Management Team Leader - Essential Skills Risk Management Applied Management

For more information phone 0800 800 NZIM (0800 800 694) or visit www.nzim.co.nz.

28 Effective Time Management 29 Effective Business Writing

FEBRUARY

10-11 Team Leader – Essential Skills 12-13 Interpersonal Communication Skills 12-13 NZIM Diploma in Project Management - Module 4 17-18 Negotiation Skills 17-18 Risk Management 19-20 Think on Your Feet 19-21 Organisations and Management 24 Coaching and Mentoring Skills (Foundation) 24-25 Coaching and Mentoring Skills (for Managers)

MARCH 3-4 4-5 5-6 10-11 12-13 12-13 12-14 17-18 19-20 19-20 24-25 25-26 26-28 27-28

APRIL

1-2 3-4 7-8 8-9 9-10

Change Management Key Account Management Dealing with Difficult Behaviours Marketing, Planning & Control Management and Communication Skills for Women Team Leader - Building Effective Teams Management Fundamentals Advanced Facilitation Skills Leadership in Action Workplace Assessment Developing Influencing and Motivating Skills Operations Management Project Management Fundamentals Finance for Non-Financial Managers

Cutting-Edge Sales Techniques Train the Trainer Presentation Skills for Business Accounting Principles Team Leader - Operational Management 9-11 Four Quandrant Leadership 14 Intercultural Awareness & Communication Skills 14-15 Strategic Management 16 Management in Social Media

SOUTHERN

For more information phone 03 379 2302 (Christchurch C), 03 455 5165 (Dunedin D) or 03 218 7451 (Invercargill I & Queenstown Q) or visit www.nzimsouthern.co.nz

FEBRUARY

14 Effective Use of Time C 17-18 Assertive Behaviour Strategies C 17-18 Accounting for Non Accountants Stage 1 C 18 International Workshop - Break through Communication D 19-21 Four Quadrant Leadership C 19-20 How to Manage and Lead Successfully D 20 International Workshop Collaborative Leadership I 24-26 Team Leader - The Essential Skills C 25-26 Accounting for Non Accountants Stage 1 I 27-28 Accounting for Non Accountants Stage 2 I 27-28 Practical Project Management C MARCH 3-4 Business Communication I 4-5 HR for non HR Managers C 5 Tetra Map - The Nature of Behaviour I 6-7 Leading Change C 10-11 Understanding NZ Employment Law C 12-13 Introduction to Performance Management C 17-19 Four Quadrant Leadership I 17-19 Team Leader - Building Effective Teams C 17-18 Think on your feet D 20 Business Writing Fundamentals C 20-21 Human Resource Management D 21 Media Training for Business Leaders C 24 Problem Solving & Decision Making C 24-28 Operational Excellence for Managers C 25-26 Essential Sales Skills C 27-28 Recruitment and Selection C 27 Workplace Fraud Awareness C 31 Train the Trainer - Facilitator C

APRIL

1 Managing Different People & Conflict C 1 Confidently Manage the Performance of your Team I 2-4 Four Quadrant Leadership C 4 Effective Delegation C 7-8 NZIM Diploma in Project Management I 7-9 Team Leader Operational Excellence C 10-11 Accounting for Non Accountants Stage 1 C 10-11 Team Leader - Essential Skills I 14-15 NZIM Diploma in Project Management C 15 Effective Use of Time D 16-17 Marketing for Non Marketing Managers C 28-30 Team Leader - Essential Skills C

Focus on Management

INSPIRING MANAGERS Our aim is to build management capability through membership, development and research. OUR FOCUS IS TO: • Research leading management trends and practice and promote a constantly developing model of best management capability for New Zealand. • Enable managers and aspiring managers to participate in learning programmes, mentoring, and events that provide the information and experience they need to develop their capability. • To identify leading management role models and provide awards that recognise the career and educational achievements of managers. NZIM Inc CEO: Kevin Gaunt FNZIM, FAIM Email kevin.gaunt@nzim.co.nz GM: Tait Grindley MNZIM Auckland Office PO Box 6600, Wellesley St, Auckland 1141 Ph 0-9-303 9100, 0800 800 NZIM Email enquiries@nzim.co.nz Website www.nzim.co.nz Wellington Office PO Box 67, Wellington 6140 Ph 0-4-495 8300, 0800 800 NZIM Email enquiries@nzim.co.nz Website www.nzim.co.nz NZIM Southern President: Michael Weusten FNZIM CEO: Joseph Thomas AFNZIM PO Box 13044, Christchurch 8141 Ph 0-3-379 2302, Fax 0-3-357 8003 Email info@nzimsouthern.co.nz Website www.nzimsouthern.co.nz

MEMBER COMMENT:

David Brown,

MNZIM

Mentor programme inspires After 12 years, David Brown says he still can’t get enough of the people he meets through the NZIM Management Mentoring programme. by Susan Edmunds

rom being involved with the introduction of New Zealand’s first ATM machines, to regularly sending engineers to Antarctica to check weighing systems, Wellington man David Brown has had a varied and unique management career. Brown has been an NZIM fellow for 20 years. In 2001, he was asked to take responsibility for the operational set up of the NZIM Management Mentoring programme, with a view to handing it over. “And that was nearly 12 years ago.” He has been the NZIM Mentoring Manager ever since. Although he’s held on to the reins longer than was initially expected, Brown says he wouldn’t change a thing. His “semi-retirement” sometimes involves 35-hour weeks but he says nothing can match the enjoyment of helping people’s careers flourish under the influence of excellent mentors. “We would have matched up 200 managers with mentors, we have a wonderful group of mentors, a lot of whom are NZIM fellows. We’ve matched people from Whangarei to Invercargill, and from the police to Plunket as well as numerous Government organisations.” A lot of mentoring has been done with people who are at inspector rank within the police. He arrived in this country in the 1970s, after a three-year stint in Cyprus with the British Royal Air Force. A friend who had been working with him had already arrived in New Zealand and wrote and said the Civil Aviation Authority was looking for technicians and engineers who were experienced in navigation and radar. “He said ‘why don’t you apply?’ I was coming to the end of my air force service, so I applied and got the job. But then it took three months to confirm my engineer registration in the UK, so I spent that time working on the rigs in the North Sea… I’ve never worked so hard, physically, in my life.” After his stint in civil aviation, Brown took a number of management roles that drew on his engineering experience, including overseeing the introduction of new-technology ATMs in the 1980s, and then as chief executive and managing director of GEC Avery. He held that role for 11 years until it was time for “semi-retirement”. “We weighed everything from babies to trucks. I was actually CEO of two GEC companies, the other did pump maintenance. We looked after all the retail sites for Shell and BP so I was involved in the petroleum industry as well as weighing.” The company also exported its weighing systems to airports around the world. “Our system would identify the number of bags and

the weight of the bags. Mexico City, Dubai, Malaysia… you name it, we sold it there. The design was all done in Lower Hutt using Avery standard equipment.” Brown said he was impressed at the calibre of people who had made themselves available as mentors for the NZIM. There are more than 100 on the books. Two former police commissioners had offered their services. “The mentors are professional, enthusiastic – and they don’t get paid for it. It’s voluntary.” Some mentors are people who have been through the Government’s Leadership Development Centre, had their own mentors for a year and then were asked to become mentors themselves because of their potential. Most mentorships last a year and include between eight and 10 meetings. Brown said a lot of care was taken in matching people up with suitable mentors. “It’s a detailed process, we don’t rush things. We do it once and we do it right. There is a process we follow rigidly for matching people and I would say our success rate is more than 90% for first-time matches.” Would-be mentors have to go through a oneday workshop. “The credibility of the programme is pretty good. One of the things we stress is confidentiality. What is said in the room stays in the room. Nothing has ever come out.” Brown says despite 12 years with the programme, he hasn’t lost any of his enthusiasm. He was recently awarded an NZIM Life Fellow accreditation for his years of service to NZIM and New Zealand business. “I’ve met some wonderful people, really clever people. I will carry on until two and two don’t make four any more. Eventually I will hand over when I feel enough’s enough.” Brown works from home except when he’s required in the city for meetings or coffee catchups with mentors. He says when a big project is in the works, it’s almost a full-time job. “It takes a reasonable amount of time but I don’t mind, it keeps me out of digging up my wife’s garden.” He’s always been firmly behind the NZIM’s goal of building better managers and says the mentoring programme is another effective way of achieving that. When he’s not working on the mentor programme, Brown is president of the Johnsonville Lions and at the moment he is preparing for the annual big Christmas parade. He’ll take a spot on a float. “All up, it takes a fair amount of my time. There’s not too many hours in the day when I’m bored.”

Yep. We do video.

Promotional, HR & recruitment, training & instructional, online & mobile

video & TV commercials.

Pure is a full service video production company who can take care of all stages of your production, from scripting, filming and post production, through to media delivery and online video advertising. We have produced video campaigns for some of the worldâ&#x20AC;&#x2122;s largest brands, for many marketing partners who want the best for their own clients, and for many businesses who need effective video communications. Call us to talk about the innovative ways we can use video to enhance your brand, or to better engage your customers and staff.

Digital Filmmakers

No losses. As Official Insurance Partner, we couldnâ&#x20AC;&#x2122;t be more proud.

Success is founded on careful planning, expert insight and a constant drive for excellence. At AIG we work hard to understand why losses happen and how we can help to prevent them in the future. Congratulations to the most successful rugby team in history on your unbeaten season.

Insurance products and services are provided by member companies of American International Group Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. New Zealand insurance products and services are underwritten by AIG Insurance New Zealand Limited. For additional information, please visit our website at www.aig.co.nz.

@AIG_Rugby www.aig.co.nz