Parininihi ki Waitotara Annual Report 2020 by iStudios Multimedia Ltd

Pūrongo Ā Tau 2020 Annual Report

HE TANGATA HE WHENUA HE ORANGA SUSTAINING AND GROWING OUR PEOPLE THROUGH PROSPERITY

NGĀ KUPU WHAKATAKI OUR STORY

Parininihi ki Waitotara is on a mission to grow and sustain our people, to create meaningful opportunity for them, their whānau and the generations to come. We are an intergenerational business with the impetus and determination to continue the legacy of our tūpuna and take control of our own destiny. Our core values of Kaitiakitanga, Manaakitanga, Whakapono, Whānaungatanga and Kotahitanga are principles and values set down by our shareholders – they provide us with the path we follow towards our vision of He Tangata, He Whenua, He Oranga.

We are focused on achieving our long term goals and aspirations through a diversification strategy that promotes innovation and co-operation to deliver sustainable returns. Our whenua is the foundation on which we build the capacity and capabilities of our people and develop our economic strength. We are also proud to stand in the role of kaitiaki of this land, sustaining it for current and future generations . Each year, our annual report provides another chapter in our story, a contribution to the continuing legacy of determination, of resilience, and the knowledge of who we are and what we mean to become.

As Taranaki Māori, our strength lies in ourselves, our connection to the whenua and our determination to build opportunity while staying true to our kaupapa.

Aotearoa Marae, Hastings Road, Okaiawa

HE KAUPAPA O PARININIHI KI WAITOTARA OUR PURPOSE The ambition of our kaumātua to build Parininihi ki Waitotara into an organisation dedicated to fulfilling the aspirations of our ancestors is being realised. We recognise we have a duty to manage our lands and assets not just for our generation but for those that follow us. OUR VISION He Tangata, He Whenua, He Oranga – Sustaining and Growing our People through Prosperity. OUR MISSION A successfully diversified and sustainable Taranaki Māori-owned and operated business providing meaningful opportunity to its people. OUR VALUES

Manaakitanga Care for our present and future generations

Kaitiakitanga Commitment to leadership

Whakapono Adherence to our tikanga and belief in our future

Whānaungatanga / Kotahitanga Belief in collective action with trusted relationships

RĀRANGI CONTENTS

PARININIHI KI WAITOTARA INCORPORATION

Te pūrongo o te Pouwhakarae 6 Chair's Report Te pūrongo o te Kaiwhakahaere Chief Executive Officer's Report

Kāhui rangapu 15 PKW Group Entities Te Rōpū Mananui 16 Committee of Management Te Rōpū Whakahaere 17 Executive Leadership Team Te Ara Putanga 19 Capturing our Core Values PARININIHI KI WAITOTARA INCORPORATION ANNUAL FINANCIAL STATEMENTS Rārangi 37 Contents Te Pūrongo a ngā Kaiarotake Auditor report Te purongo ā-tau ā komiti Committee’s annual report

38 41

Te tauākī whiwhinga, whakapaunga whānui 42 Statement of comprehensive income Te tauākī tūnga pūtea 43 Statement of financial position Te tauākī whakaatu i te rerekētanga o te tahua Statement of changes in equity Te tauākī kapewhiti Statement of cash flows

44 45

Ngā whakamārama mō ngā tauākī pūtea 46 Notes to the financial statements

Cover: Aotearoa Marae whānau have honoured PKW with the gifting of the name Waitokorau for one of its Farms. The name reminds us and our future generations of who we are and where we have come from. This annual report continues the evolution of our reporting, reflecting the intergenerational focus of our people. Our cover photo provides a beautiful demonstration of that focus with multiple generations of our Aotearoa Marae whānau. (Left - right) Cynthia, Zahryiz, Nikta, Faith, and Aroha Wharemate with John Hooker, (back) June Hooker, Kyana Kopa, Moana Wharemate, Atapo Kopa, DJ Wharemate and Dean Heta.

PARININIHI KI WAITOTARA TRUST Te pūrongo o te Pouwhakarae Chair report

Ngā Kaiwhiwhi Tautoko Scholarships and Grants

Whakatipuranga ngā Whānau Whānui o Taranaki 70 Advancing Taranaki whānau aspirations through partnership

PARININIHI KI WAITOTARA TRUST ANNUAL FINANCIAL STATEMENTS Rārangi Contents

He pāronga kōrero Entity information

Te tauākī whiwhinga, whakapaunga whānui Statement of financial performance

Te tauākī kapewhiti Statement of cash flows

Te Pūrongo a ngā Kaiarotake Auditor report

Te tauāki koronga mō ngā mahi kia tutuki 85 Statement of service performance

Te tauākī tūnga pūtea Statement of financial position

Ngā whakamārama mō ngā tauākī pūtea Notes to the performance report

Governance Attendances

PARININIHI KI WAITOTARA INCORPORATION

Tū mai rā e koro, e te maunga tītōhea.

Tangihia o tātou mate kua whetūrangitia. Haere ngā mate ki te okiokinga, haere atu ra.

Ahakoa ngā piki me ngā heke i puta mai i te tau nei, me ū tonu tātou ki ngā moemoea o tātou nei tūpuna.

Nō reira, kia kaha, kia māia, kia manawa piharau - kia tū kotahi ai tātou te whānau.

TE PŪRONGO O TE POUWHAKARAE CHAIR'S REPORT HINERANGI RAUMATI

I am honoured to present the annual report for the financial year beginning 1 July 2019 and ending 30 June 2020 on behalf of the Committee of Management for Parininihi ki Waitotara Incorporation. This year we have witnessed an unprecedented global pandemic that presented us with challenges that called for decisive and timely action. For many businesses, it was a crash course in what to do in a crisis, what to prioritise, and how to respond in the face of little or no information. At PKW we acted quickly to protect our people and identify the impact on the business. This saw Port Nicholson Fisheries and Ngamotu Hotels close their doors while they weathered the storm of the shutdown of Chinese seafood markets and a domestic Alert Level 4 lockdown response. Our farms became essential services, which meant our kaimahi needed to keep working, keep producing the food our nation needed, but under the tightest of

restrictions to keep themselves and their whānau safe. Our management teams vacated the PKW Whare and stayed at home, as instructed by our Government, but continued to work to ensure the business stayed in the best shape it could. They found solutions to the practical and emotional challenges of working remotely and continued to deliver at the standards we have come to expect from them. As Chair of the PKW Board, I wish to acknowledge the dedication and commitment every member of our staff showed during this time and pass on the thanks and appreciation of all the PKW directors to them. STRATEGIC PAY-OFF

The last five years have seen the business embark on a journey to diversify its investment portfolio with a strategic plan that called for us to build on our core asset, our whenua, and find new ways to grow and develop. Our drive to follow this direction

came from our mission to deliver sustainable returns for our shareholders by mitigating business risk, reducing the impact of volatile markets and identifying opportunity.

It has taken vision, hard mahi and persistence, but the progress we have made, particularly over the last three years, has been considerable. And the pay-off has been significant. PKW Incorporation has come through the initial COVID-19 crisis in a robust and stable position. The value that diversification gives us as a business has shown itself in a very real way, by enabling us to deliver meaningful returns to our shareholders despite the challenges the year has thrown at us. This year we have posted a net profit after tax of $12.06m (18/19 $11.9m), made up of a cash operating profit of $7.8m (18/19 $8.7m) and non-cash capital gains of $4.2m (18/19 $3.1m). Shareholder net equity has improved slightly at

$267.1m (18/19 $257.3m) and this is reflected in an increase in the dividend distribution recommendation of 10c per share to $1.55 (18/19 $1.45). As a Board, we will continue to support our Management team as they seek to build and strengthen relationships with partners and iwi, explore opportunities and make investments that align with our values. PARTNERSHIPS Our belief in Kotahitanga, in working together, is a key driver to delivering our diversification strategy. Building partnerships is not without its challenges but as a people we need to focus on the positive outcomes such relationships hold for the benefit of us all. And we can do it, as we saw during the COVID-19 response when all eight of the Taranaki iwi came together to protect those who were most vulnerable from the epidemic. It was heartening to see how our kaingārahu took the lead and

took action to protect whānau from the potential of COVID-19 transmission. They understood the risk our people faced, the expectation that the impact would be hard, and took the hard line that was needed to keep people safe. Let’s harness that co-operation, that belief in doing the best for our people as a collective and create opportunity and sustainability for ourselves today and in the future. GOVERNANCE REVIEW

We are currently in the last stages of a review in which we looked at how our governance structure was serving our business. As part of that review, the decision was taken to create a separate PKW Farms Board and it has now been in place for its first full year, performing extremely well.

With the success of that model, we have put in place an Investment Sub-Committee and recruitment is currently underway to find the best people to sit round that table. The review of the PKW Trust is also underway.

Okahu and Inuwai Hapu whānau at farm naming ceremony.

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO O TE POUWHAKARAE (CHAIR'S REPORT)

" The value that diversification gives us as a business has shown itself in a very real way, by enabling us to deliver meaningful returns to our shareholders despite the challenges the year has thrown at us." The review has been a worthwhile and positive process that has enabled us to really focus on what we need to do to ensure that our business can perform at its best in all areas. The Committee of Management is looking forward to seeing the benefits over the coming years. TE ARA PUTANGA - OUR OUTCOMES PATHWAY Last year we were excited to launch our kaupapa evaluation tool and show our shareholders the first set of results that fully demonstrate how we as an organisation were performing across all our value set. The thinking behind Te Ara Putanga (TAP) is that we are more than a series of bottom line dollar signs, that we want to achieve more for future generations than just a cash pay-out and our values of Manaakitanga, Kaitiakitanga, Whakapono, Kotahitanga and Whānaungatanga are what really matter when it comes to measuring progress. This year we are able to make the

" By putting people with the skills and experience to make focused and informed strategic decisions around the table, we are confident of achieving our mission..."

Wind Turbine at Waverley Windfarm (PKW Whenua)

first comparisons for each of the TAP metrics and gain an insight into the progress we have made. You will not see any great gains because our focus is on making steady, sustained progress over time. This future focused approach is one that best serves our organisation and our people – building on the legacy of our tūpuna in a considered and thoughtful way, following our kaupapa and delivering meaningful opportunity for generations to come. TAP is already beginning to prove its worth as a way of fully encompassing all aspects of the business and bringing them together into one clear picture. The potential it offers has not gone unnoticed, with other organisations eager to learn about the mechanics and methodology behind TAP with a view to adapting it and utilising it for their own businesses.

company. Find out more about the business in the next issue of Whenua magazine. I am looking forward to seeing the future performance of this family enterprise, and to further announcements from Te Pūia Tāpapa. This is also the first year Tai Hekenga, our land portfolio investment in Wellington, has been included in our annual report. This partnership is a fantastic addition to our investment portfolio as it will provide a secure and consistent return for our shareholders for years to come.

INVESTMENT UPDATE

We will continue to look for opportunities like these as we pursue our diversification strategy. As an organisation, we have narrowed our focus in this area to Property, Protein and People, enabling us to continue to build on our core assets into the future.

Together with the NZ Super Fund and Direct Capital, a total of $70m has been invested in TR Group – a heavy vehicle fleet leasing

The Board was pleased to welcome Will Edwards to the table as a new governor last year – taking the seat Hinerangi vacated after her years of contribution to the Incorporation. He is proving to be a worthy successor on his own terms, and I look forward to working with him in

It was exciting to receive the announcement that Te Pūia Tāpapa, our partnership with 26 other Māori entities from across Aotearoa, has made its first investment.

ACKNOWLEDGEMENTS

the year ahead.

We also said Haere Rā to Mitchell Ritai, who did sterling work as our General Manager Shareholder Engagement and has left us to take up an exciting role at Parihaka. We are sorry to see him go but pleased that another of our people has grown their talent and skills at PKW and gone on to a leadership role in Taranaki.

Mitchell will be hard to replace, but the recruitment process has already begun, and we will keep you updated when an appointment is made. IN CONCLUSION

Finally, I wish to acknowledge once more our management team, led by Warwick Tauwhare-George our CEO, our kaimahi working out on our whenua and every member of our PKW whānau for their contribution, dedication, and effort this year. Neither myself nor your Board underestimates your importance to the continued growth of our Incorporation.

And, as always, thank you to our shareholders for your continued belief and support in us as a Board. Hei konā mai

Hinerangi Raumati Chair

2015/16

2016/17

2017/18

2018/19

2019/20

TERM LIABILITIES $'000 2015/16

$67,189

2016/17

$68,787 $65,433

2017/18

$46,742

2018/19

$51,742

2019/20

Increase in debt levels due to acquistion of additional Te Kahu whenua (leasehold interests). The total term debt to assets ratio is 15.5%.

TOTAL ASSETS $'000 2015/16

$279,040

2016/17 2017/18 2018/19

$316,707 $321,660 $316,032 $334,288

2019/20

Increase due to various asset investments, such as the investment in Tai-Hekenga LP and the addition of a Te Kahu whenua (leasehold interests).

TOTAL EQUITY $'000 2015/16 2016/17 2017/18 2018/19 2019/20

$204,327 $240,022 $247,176 $257,267 $267,076

Shareholders' Equity has increased consistently year on year, from $204.3m in 2016 to $267.1 in 2020, representing a total growth of 30.7% over 5 years.

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - BALANCE SHEET HIGHLIGHTS

BALANCE SHEET HIGHLIGHTS

AT A GLANCE FINANCIAL PERFORMANCE OPERATING PROFIT AFTER TAX

AND BEFORE FAIR VALUE GAINS / (LOSSES)

$7.87M

DOWN $0.8M FROM 2019

NET PROFIT AFTER TAX

$12.06M UP $0.3M FROM 2019

FINANCIAL POSITION

EQUITY

$267M UP $9.8M FROM 2019

*DIVIDEND & GRANT DISTRIBUTION

$2.04M

UP $132k FROM 2019

* This represents the Annual Dividend declared to shareholders and distribution to the PKW Trust for 2020.

NUMBER OF SHAREHOLDERS

10.8K

% OF MĀORI KAIMAHI

57%

UP 0.3k FROM 2019

UP 2% FROM 2019

ACTIVELY FARMED WHENUA

TARANAKI MĀORI BUSINESS SPEND

3,764ha

DOWN 127ha FROM 2019

13%

DOWN 1% FROM 2019

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - AT A GLANCE

FIVE YEAR CONSOLIDATED PERFORMANCE TO 2019/20 2015/16

2016/17

2017/18

2018/19

2019/20

18,206

28,539

26,546

28,256

28,104

(16,344)

(15,642)

(17,224)

(17,343)

(17,300)

(3,280)

(2,946)

(2,684)

(2,565)

(2,078)

1,099

954

1,784

2,269

533

Operating profit / (loss) before tax and other items

(319)

10,905

8,422

10,617

9,259

Tax expense

(193)

(1,633)

(1,687)

(1,941)

(1,387)

1.9%(512)PKW Farms 31.3%

9,272

6,735

8,676

7,872

$'000

Financial Performance Revenue Operating expenses Finance costs Share of profit from joint ventures

Operating profit / (loss) after tax and before PKW Whenua - Tupuna fair value gains / (losses) 59.5%

PKW Other (inc. Cash)

Net gains / (losses) from investments

4,228

27,228

(1,159)

3,109

4,188

Profit for the year

3,716

36,500

5,576

11,785

12,060

PKW Fish

5.5% PKW Commercial Property

1.7%

CHANGE IN OUR ASSET BASE AS A RESULT OF OUR DIVERSIFICATION STRATEGY 0.1% IMPLEMENTATION OVER THE PAST 12 MONTHS PKW Investments

PKW Whenua - Farming

PKW Whenua - Tupuna

1.9%

59.5%

3.2%

PKW Other (inc. Cash)

PKW Other (inc. Cash) PKW Whenua - Tupuna

PKW Farms

2.0%

60.4%

31.3%

2017-18

2018-19

2019-20

PKW Fish

5.2%

PKW Commercial Property

PKW Investments

1.2%

PKW Commercial Property

1.7% PKW Investments

2.9%

0.1%

PKW Farms

26.4%

5.4%

5.5%

PKW Investments

PKW Other (inc. Cash)

1.4%

1.2%

27.9%

PKW Fish PKW Investments

PKW Whenua - Diversification

PKW Farms

4.0% PKW Whenua - Tupuna

55.8%

PKW Commercial Property

2.8%

PKW Other (inc. Cash)

PKW Whenua - Tupuna

60.4%

2.0%

PKW Farms

27.9%

PKW Fish

5.4%

PARININIHI KI WAITOTARA INCORPORATION

TE PŪRONGO O TE KAIWHAKAHAERE CHIEF EXECUTIVE OFFICER’S REPORT WARWICK TAUWHARE-GEORGE

Purutia mai Te hauora

Te haukaha Te haumāia

Ki taku rau nei

Teina mai, tuakana mai

Huia kia piri ki te tūmanakotanga (He Tangata, He Whenua, He Oranga) Huia kia tata ki ngā tongi kōrero (ko Parininihi kei raro, ko Waitotara kei runga) Huia te hunga ora (kia eke ki te pae o te whakaaro kotahi) Haumi ē, hui ē, taiki ē!

As CEO of the Parininihi ki Waitotara Incorporation, it is my pleasure to present the annual report for the financial year ending 30 June 2020. Never before have we had a year when two of our investment businesses have had to shut their doors, where our kaimahi have gone to work under lockdown restrictions and the PKW whare has stood empty.

While our news channels focus on transmission rates and the horrifying numbers of those who have died globally, the impact of the COVID-19 pandemic extends far beyond this tally of human life and the ripples will be felt for years to come. But, as with most things, there has been some good to have come out of this time of uncertainty and challenge. Our business has proved to have the resilience and strength of a tall tree in a windstorm - the ability to bend in the face of adversity, but not break.

The abilities and dedication of our staff, while never in doubt, were demonstrated admirably and I acknowledge their significant contribution in maintaining our robust position. Our values, our strategic plan, our focus on delivering meaningful opportunity to our shareholders and the wider Taranaki Māori community and our vision of He Tangata, He Whenua, He Oranga have created a stable and deeprooted foundation that is central to who we are and how we do business.

It has been an honour to lead the PKW Management team through this time and I thank them all for bringing their talent and skill to the table every day and delivering again, and again. FINANCIAL REPORT

The challenges of the year are reflected in the $12.06m net profit after tax result the business has delivered this year when

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO O TE KAIWHAKAHAERE MATUA (CEO REPORT)

" ...our vision of He Tangata, He Whenua, He Oranga have created a stable and deep-rooted foundation that is central to who we are and how we do business."

taken in conjunction with total comprehensive income recorded at $13.4m (FY 18/19 $10.1m). Two significant factors contributed to this result:

•W hile milk production achieved 2,729 kg/MS, this was unfavourable to the FY18/19 result due to the realisation of Farm 19 out of the asset portfolio. However, this shortfall was offset by a higher blended milk price for the season, of $7.00 (FY18/19 $6.41). •A nnual Catch Entitlement (ACE) lease values suffered a double blow with reduced market prices for kōura resulting in a 5% fall compared to last year, as well as a further 25% reduction as a result of the COVID-19 pandemic. Other significant items from the financial statements include a reduction in the Fonterra shares of $0.11 per share and an uplift in value of the Tai Hekenga portfolio

of $1.6m due to whenua values increasing.

Overall, group expenditure was consistent with last year’s result (18/19 $17.3m) as our focus on effective cost management across the Group remains in place. INVESTMENTS

The PKW Farms LP subsidiary business remained strong throughout the year, and we have been able to follow our strategic plan to pay down debt owed to the PKW Incorporation. This approach will continue over the next two to three years, along with an elevated consideration of social, cultural and environmental factors that will help bring greater responsiveness and flexibility to this area of Group activity. The PKW Farms team is also investigating new technologies that will help us deliver a forwardthinking, future-focused business. Port Nicholson Fisheries (PNF) has

Left: PKW Kaimahi whānau. Right: Port Nicholson Fisheries Koura Product.

always been a strong business model, although reliance on a single source market in China, albeit the most profitable, meant that the pandemic created the need to mothball operations for several weeks. Although the rapid response and decisionmaking from management and PNF governance meant that the hit to the bottom line was not as damaging as it could have been. The domestic response to the COVID-19 pandemic had a direct and immediate effect on the Ngāmotu Hotels partnership, with the Novotel also shutting its doors for the duration of the Alert Level 4 lockdown. Despite a fantastic response from the corporate and travelling community immediately after the lifting of the lockdown, further closures due to COVID-19 cannot be ruled out, so prudence mandates that a conservative approach be taken in terms of our

" Our role as kaitiaki of our whenua is something that is held in high importance by our shareholders and so the positive metric scores in this area are very pleasing."

short-range (12 x months) financial expectations.

This year the Tai Hekenga property portfolio is included in our financial statements and is already delivering the benefits we anticipated. With long term government contracts in place for the next 20-25 years for the ground rent of this whenua, this investment is a valuable addition to our diversification portfolio. The first investment of the Te Pūia Tāpapa fund has been announced - an exciting opportunity with a NZ family truck and trailer leasing company. The TR Group was selected for investment due to its value alignment to the fund and its strong kaitiaki kaupapa. The business is exploring alternative fuel sources and the potential for electrifying its fleet, and we are interested in seeing how it progresses in this area. The construction of the Waipipi Wind Farm continued throughout the pandemic, meaning that commissioning is still on track for early in the next calendar year.

LOOKING AHEAD The Waipipi Wind Farm is a great example of our strategic intent to explore and facilitate alternative land use options for our whenua. We remain committed to pursuing the opportunities open to us for the 20ha of corpus whenua at Pōhutakawa Place, despite the legislative impediments that meant the retirement facility plans have had to be shelved at this point in time. Kōrero with other potential partnership entities continues, as always, as we seek to continue to build strong, collaborative relationships. Potential in this area includes a Taranaki collective for honey production, plant protein production and further involvement in alternative energy production. This activity has called for a narrowing of our strategic focus to the ‘three P’s’ of People, Property and Protein so we can ensure our mahi stays firmly on the path we have laid out to create

Left: Te Pūia Tāpapa first investment with TR Group. Right: Waverley Windfarm Construction.

effective opportunities that deliver meaningful returns for the longterm. This expression of our strategic intention makes it clear where the future of our business lies to best build on the legacy of our tūpuna. CONCLUSION I am proud of what we have achieved as a business and as a whānau this year, particularly in the face of such adversity, and want to thank everyone who has been part of that journey. The guidance and decisions made by our PKW Board continue to inspire and motivate, so I wish to thank Hinerangi and the rest of the Board for their support. And finally, I acknowledge the support and manaaki of our shareholders as we continue to steer our waka into the horizon of our future. Nga mihi Warwick Tauwhare-George

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - TE PŪRONGO O TE KAIWHAKAHAERE MATUA (CEO REPORT)

PKW GROUP - ENTITIES

PKW Shareholders

PKW Incorporation

PKW Trust

Active Investment**

Passive Investment

Mangaoapa Forest Partnership

PNF Fisheries LP PNF Facilities LP

PKW Farms LP *

Te Pūia Tāpapa LP

Tai Hekenga LP

Ngāmotu Hotels LP

Rockit Orchard No.2 LP

* PKW Farms is a 100% owned subsidiary of PKW Incorporation. ** Refer to Financial Notes B7 and E23 for percentage of entity ownership.

COMMITTEE OF MANAGEMENT PKW INCORPORATION

Hinerangi Raumati (Chair)

Beverley Gibson

Claire Nicholson

Dion Tuuta

Taaringaroa Nicholas

William Edwards

SHAREHOLDER REPRESENTATIVE PKW TRUST

INDEPENDENT DIRECTORS PKW FARMS LP

Richard Krogh

David MacLeod

Mark Bridges

Darryn Ratana

EXECUTIVE LEADERSHIP TEAM

Warwick Tauwhare-George (Chief Executive Officer)

Jacqui King (Head of Corporate Services)

Joe Hanita (Chief Financial Officer)

Shane Miles (General Manager, Ahuwhenua)

COMMITTEE OF MANAGEMENT

JOINT VENTURE COMPANIES

Hinerangi Raumati (Chair) Beverley Gibson Claire Nicholson David MacLeod Dion Tuuta Taaringaroa Nicholas William Edwards

PORT NICHOLSON FISHERIES GENERAL PARTNER LTD - THE GENERAL PARTNER FOR PORT NICHOLSON FACILITIES LP Hinerangi Raumati Warwick Tauwhare-George

CHIEF EXECUTIVE / SECRETARY Warwick Tauwhare-George

KOURA INC GENERAL PARTNER LTD - THE GENERAL PARTNER FOR PORT NICHOLSON FISHERIES LP Hinerangi Raumati Warwick Tauwhare-George MANGAOAPA PARTNERSHIP

PKW COMMITTEES PKW TRUST Dion Tuuta (Chair) Beverley Gibson Claire Nicholson Darryn Ratana (PKW Trust Shareholder Representative) David MacLeod Hinerangi Raumati Taaringaroa Nicholas William Edwards HUMAN RESOURCES COMMITTEE Bev Gibson (Chair) Hinerangi Raumati William Edwards AUDIT AND RISK COMMITTEE Taaringaroa Nicholas (Chair) Claire Nicholson David MacLeod Dion Tuuta Richard Krogh (Independent Director)

NGĀMOTU HOTELS GENERAL PARTNER LTD - THE GENERAL PARTNER FOR NGĀMOTU HOTELS LP Warwick Tauwhare-George

SUBSIDIARY COMPANIES PKW FARMS GENERAL PARTNER LTD - THE GENERAL PARTNER FOR PKW FARMS LP Richard Krogh (Independent Chair) Claire Nicholson Mark Bridges (Independent Director) Taaringaroa Nicholas

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - GOVERNANCE

PARININIHI KI WAITOTARA INCORPORATION

HE WHENUA

TE ARA PUTUNGA - OUR OUTCOMES FRAMEWORK CAPTURING OUR CORE VALUES

Inspired by the values that form the strategic core of the Parininihi ki Waitotara Incorporation, four tohu have been created that embody the cultural meaning behind them. The four panels create an epa, or back wall, of a pātaka (food storage house), which come together to represent PKW’s vision: He Tangata, He Whenua, He Oranga. The first reflects a Taratara a Kae carving pattern which portrays the story of Tinirau, who loans his pet whale Tutanui to a guest named Kae. This pattern symbolises prosperity, generosity and the concept of Manaakitanga, providing for present and future generations. The five ‘teeth’ within the design reflect the five KET

(Kaupapa Evaluation Tool) metrics within the Manaakitanga core value. The male manaia in the second panel stands as a kaitiaki, just as PKW acts as a guardian of its shareholders interests. Its pointed head shows the regional influence in the design (Taranaki manaia often have pointed heads in reference to the maunga) and the puhoro (thigh tattoo) features nine ‘teeth’ – the nine KET metrics that make up the Kaitiakitanga core value. Whakapono, the belief in the future and in following Māori tikanga, is represented by the female manaia in the third panel. Standing for truth, honesty and integrity, it also has a pointed head and reflects the five KET metrics within the design.

The final panel features ritorito, a Taranaki carving pattern that represents harakeke (flax) and the whānau unit of mātua (parents) protecting the tamariki (child). PKW’s core values of Whānaungatanga and Kotahitanga, of building trusted relationships and working together, echo the concept of a whānau caring for each other. The KET metrics are represented by the six strands of harakeke within the design.

Te Ara Putanga - Annual Results Annual Results 2020

W H

Te Ara Putanga, the outcomes pathway for Parininihi ki Waitotara Incorporation, is intended to give shareholders a transparent and holistic update on the progress with reference to our values of Manaakitanga, Kaitiakitanga, Whakopono, Kotahitanga and Whānaungatanga that lie at the heart of the organisation.

GA/ N A T GA NGA N U HITA A ANOTA K

MAN AAK ITA NG A

W H A K AP O GA

IT KA Made up of a series of metrics, Te Ara Putanga (TAP), is intended to provide a picture of how the organisation is performing socially, culturally and environmentally, as well as financially. Last year was the first time TAP had been used to build a holistic assessment of the organisation in such a way and as such provided a benchmark which this years’ results can be compared against.

Over time, each yearly assessment will show the incremental change, challenges and progress PKW is making towards its vision of He Tangata, He Whenua, He Oranga growing and sustaining our people through prosperity. Each metric consists of; •A description

•A result on a scale of 1 - 10. PKW has set a minimum standard for

AN T I K

any metric at 5, represented by a dotted line on the graphs.

• An explanation of the annual result • The result from the last financial year, showing how the business performance has changed, or remained stable. • Future actions planned.

21 PARININIHI KI WAITOTARA INCORPORATION

Te Ara Putunga - Comparative Annual Results Annual Results 2019

GA/ N ATAGA G N ITAN U A H ANOTA K

MAN AAK ITA NG A

HE WHENUA

W H

The inaugural annual results for the Parininihi ki Waitotara Incorporation long term outcomes.

W H A K AP O GA

IT KA

N A T KI

Manaakitanga Care for our present and future generations

RETURN ON ASSETS

The rate of return on the asset / investment PKW holds or has made. A 5% return across the Incorporation portfolio has been set as the target. 19-20

4.5

/10

0.5

18-19

4/10

Why? Despite a sustained uplift in performance from PKW Farms, any benefit was heavily impacted by the effect of the Covid -19 pandemic on Port Nicholson Fisheries (PNF) and Ngāmotu Hotels. Two new assets were added to the portfolio this year, our land interest under the Waipipi Wind Farm and Tai Hekenga, the central Wellington property portfolio, both form part of the implementation of our diversification strategy.

What's next? Maintaining the momentum of PKW Farms in terms of improvement in performance continues to be a major focus. The benefits of a diversified investment portfolio is already delivering results and the business will continue to look for further opportunities, in particular in partnership with others. While PKW Inc has come through the Covid-19 pandemic in a robust position thus far, it is going to take time for some investments to recover fully.

DEBT

The level of debt and debt maturity committed to PKW's business activities and investments. Balancing the debt across the organisation's interests is key and any investment decisions need to comply with the debt cap of 25% (asset to debt ratio) set by the Board for the Incorporation as a whole. 19-20

/10

18-19

7/10

Why? PKW Farms added to their debt level to increase the size of Te Kahu through the strategic purchase of neighbouring whenua. This expansion will optimise the production level at the farm improving performance, while also fulfiling a strategic intent to reclaim ancestral whenua whenever possible. At a group level, debt has remained at around 15%.

What's next? Annual refinement of ten year modelling has been implemented to enable improved forecasting and management of debt levels.

DIVIDENDS AND DISTRIBUTIONS

This metric measures EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) which is essentially the core operating performance of the organisation and informs distribution to shareholder decisions. In basic terms, the higher the result, the greater the potential for an improved dividend. 19-20

/10

18-19

5/10

Why? Despite the challenges of the Covid-19 pandemic, a majority of investments provided a positive cashflow outcome over the year. PKW Farms held its own with a positive result from all its dairy units. This strong position has influenced the proposed dividend being lifted by 10c per share.

What's next? A key focus for the Board is to continue to improve distribution levels over the long term through improved business performance of PKW Farms and securing reliable cashflows through the continued implementation of the diversification strategy.

MANAAKITANGA

PARININIHI KI WAITOTARA INCORPORATION

RISK

Robust policies, processes and systems are key to identifying, tracking and managing risk. This metric is influenced by both active and passive investments. 19-20

8/10

Why? Risk identification, mitigation and management remains key to the PKW group enterprise risk framework. However, opporunity exists to establish formal frameworks for some investments and to refine others.

What's next? As the PKW group enterprise risk framework is set at a group level, an opportunity exists to further evaluate and drill down into each individual investment, creating a clearer line of sight on what risks exist specfic to each.

18-19

9/10 COST MANAGEMENT

Close management of business cost is essential to maintaining and lifting the bottom line. Adhering to budgets and ensuring cost rationalisation procedures are in place deliver positive results. 19-20

5/10 18-19

5/10

Why? This consistent result reflects spending remaining within forecasted or budgeted limits. A contiuned focus on building our financial management culture within, in particuar PKW Farms has seen managers fully involved in budget and reforecast setting.

What's next? A comprehensive supplier review process is well underway within PKW Farms to build on our existing supplier relationships and to provide greater clarity on future expenditure. This clarity will provide management benefits such as minimising cost creep and spend inefficiencies.

Kaitiakitanga Commitment to leadership

Te Poihi Campbell plants a Tōtara tree with Mitchell Ritai and the Wright whānau at the new entrance for Te Kāhu

HEALTH AND SAFETY

Clear expectations and key performance indicators encourages a positive health and safety culture across PKW's business concerns and active investment interests. The score of this metric is directly linked to the reporting protocols in place—a score of 5 indicates all reporting responsibilities have been met. 19-20

/10

18-19

5/10 <

Why? Health and safety is becoming more ingrained into the PKW culture, and an independent assessment of the Incorporation and Farms completed earlier this year has provided a clearer understanding of what further work needs to be done. Key performance indicators have been in most cases, met or exceeded which is an achievement worth noting.

What's next? Individual ownership of health and safety will be a key focus in the coming year. Driven by the findings of the independent assessment, an implementation plan for each business will help deliver the message that every individual has a role to play in keeping themselves and others safe in the workplace.

ANIMAL WELFARE

/10

18-19

8/10

Why? The scoring protocol of this metric is based on independent assessments being carried out as part of the WelFarm programme. Due to the Covid-19 lockdown response, it was not possible to complete these assessments as scheduled, resutling in a lack of evidence and lowering our results. Assessments completed prior to March and post June indicated that all animals on PKWmanaged farms were \ are in excellent condition and husbandry standards remain high.

What's next? PKW Farms ‘Animal Health Plan’ has been recently reviewed and approved by the Board and is now being put into action. Its main focus is a pro-active approach to our animal health planning and management to ensure optimum care and health of our animals. In addition, PKW Farms recently completed a supplier review with our Vets, resulting in a new contract which has the Animal Health Plan achievement at the core of our relationship.

KAITIAKITANGA

19-20

PARININIHI KI WAITOTARA INCORPORATION

The extent to which the organisation meets its requirements and obligations for animal welfare across its entire portfolio, not just within PKW Farms LP. PKW's dairy business is assessed through the ‘WelFarm’ programme. This independent industry-wide tool uses data generated by the PKW Farms vet to provide an overview of how animals are cared for and is designed to help dairy farmers better understand key animal health markers and how they impact on the optimisation of on-farm production performance.

WATERWAYS PROTECTION

The Kaitiakitanga Strategy sets minimum requirements for protecting awa that flow across PKW whenua and monitoring protocols to assess the health of the water. Fencing off waterways from stock and riparian planting are at the heart of this metric. 19-20

/10

Why? Fencing and riparian planting on PKW farms continues to be progressed, with waterways on newly purchased whenua to be assessed and work done where necessary.

What's next? PKW needs to consider its response as an organisation to the freshwater legislation reforms recently announced by central Government.

18-19

8/10

Tuhi-Ao Bailey takes Water Samples as part of Monitoring Work on PKW Farms

Kaitiakitanga (continued) Commitment to leadership ENVIRONMENTAL COMPLIANCE

This measures the extent and ability to which the organisation is able to comply with the relevant and applicable environmental legislation and other regulatory requirements. There are four sections, each with their own score, within this metric. a) Agri-Investments - both mandatory and voluntary environmental compliance, encompassing the health of the waterways and the flora and fauna found there. 19-20

/10

18-19

7/10

Why? Note 100% compliance with all consents issued by the Taranaki Regional Council has been achieved. The first assessments of the water monitoring programme (SHMAK), launched as part of the Kaitiakitanga Strategy, have been completed, providing the business with baseline benchmark data for survey sites at all but one of the PKW farms. The water health results ranged from poor to very good. In addition, a Cultural Health Index tool has been developed as part of this project to ensure that mātauranga Māori forms part of the assessment process.

What's next? Continue the water monitoring programme across all PKW farms and implement the Cultural Health Index tool.

b) Commercial Investments - Asbestos - ensuring that buildings and whenua within the commercial investment portfolio are up to standard, specifically under Health and Safety at Work (Asbestos) Regulations 2016. 19-20

/10

Why? Any new investment properties have been assessed, with no asbestos being identified.

What's next? There are some properties where assessments are still to be completed.

18-19

8/10 c) Commercial Investments - Land Contamination - ensuring that buildings and whenua within the commercial investment portfolio are up to standard with regard to the identification and management of land contamination. 19-20

10 18-19

/10

10/10

Why? Results remain unchanged as no known contamination of existing or newly acquired whenua has been identified.

What's next? On-going monitoring will continue.

PARININIHI KI WAITOTARA INCORPORATION

Farm 5 on Winks Road effluent storage tanks.

d) Commercial Investments - Building Warrant of Fitness - ensuring that buildings and whenua within the commercial investment portfolio are up to standard - specifically with regard to Building Warrant of Fitness.

10/10

Why? Again, there is no change in the status of any PKW-owned buildings post their annual Building Warrant of Fitness assessments.

What's next? Building maintenance and monitoring will continue throughout the year.

KAITIAKITANGA

19-20

18-19

10/10 RESOURCE USE AND EFFICIENCY

This metric is split into three sections to ensure that an accurate assessment can be made across all resource consumption. a) Resource use and efficiency - Nutrients. Conscious and careful application of fertiliser and urea across both dairy and dry stock farming concerns to ensure only what is needed in the correct quantities at the right time is used. 19-20

/10

18-19

10/10

Why? PKW continues to use the OverseerFM online software tool to control the application of all fertiliser and urea on managed whenua. In addition, management has been enhanced with the introduction of satellite imagery to monitor grass growth rates.

What's next? PKW Farms is beginning to explore the future of fertiliser use and what alternatives may be available. This long-term thinking is essential in a climate where the social licence to operate comes under more and more pressure with perceived ethical issues around the use of applied nutrient products.

b) Resource use and efficiency - Water. Using water efficiently is important for both the bottom line and the environment. 19-20

/10

18-19

7/10

Why? The on-going implementation of modern effluent management systems (which utilise green water) is resulting in the further reduction of fresh water use. Data collection infrastructure is now available on most PKW farms with results being assessed and improvements identified.

What's next? Continue to roll out necessary infrastructure where required for PKW farms and further consideration required for how other PKW investments manage water use.

c) R esource use and efficiency - Energy. Reduction in the use of energy, primarily electricity, signifies essential cost savings as well as being good for the planet. 19-20

7/10

18-19

6/10

Why? The energy efficiency of all PKW farms continues to be assessed by Meridian (our electricity provider) with two farms that were under-performing last year now delivering positive results. However, four farms still require improvement.

What's next? A monitoring system for other investments (in particular commercial properties) is still to be developed. Data collected as part of the on-farm monitoring is to be assessed to identify where further efficiencies can be made.

Kaitiakitanga (continued) Commitment to leadership WASTE MANAGEMENT

All investments are required to comply with any resource consents in place. In addition, there is an expectation that waste is actively monitored as to amount and type. 19-20

6.5

/10

0.5

18-19

6/10

Why? As the result of a supplier review of general waste disposal services; bin and other recycling methods are now standardised across all farms, enabling an improved picture of how waste is managed. Data is now collected regularly and will enable on-going assessment of general waste at a farm level.

What's next? Work continues to reduce the amount of general waste being sent to landfill, such as the Novotel extending current recycling provisions and use of data.

EFFLUENT MANAGEMENT

Compliance with resource consents is non-negotiable for PKW's agri-business and reducing the environmental impact of both dairy and dry stock units forms part of the Kaitiakitanga Strategy. 19-20

/10

Why? System upgrades have continued and the focus is now falling on irrigator infrastructure to improve efficiencies still further.

What's next? Data is collected in real time providing farm managers the ability to manage application rates and processes more closely.

18-19

6/10 CLIMATE CHANGE RISKS

A PKW Climate Change Strategy is still being developed however an initial Greenhouse Gas Emissions Assessment has been completed (result yet to be reviewed) and PKW is actively involved in industry discussions and planning regarding the Climate Change Response Act.

BIOSECURITY

This metric assesses the likelihood and measures the impact a biological or biochemical event could have on an investment. Biosecurity is a key business risk and awareness is paramount. 19-20

5/10 18-19

5/10

Why? There have been no biological or biochemical events during the year. A refreshed Biosecurity Plan was implemented across all PKW farms to ensure the monitoring and management of any possible threats in this area.

What's next? The plan is yet to be tested for effectiveness and so thought will be applied on how that will be conducted. .

PARININIHI KI WAITOTARA INCORPORATION

Whakapono

WHAKAPONO

Adherance to our tikanga and belief in our future

Hinerangi Edwards presenting the 2019 PKW Trust Annual Report to beneficiaries

TE REO USE, UNDERSTANDING, RELEVANCE & PROFICIENCY

Promotion of Te Reo Māori is important for PKW and for the Māori culture as a whole. The organisation has a duty to ensure Te Reo is actively used across all investments. 19-20

4.5

/10

0.5

18-19

4/10

Why? While there has been more Te Reo visibility through signage in the PKW Whare and the naming of Waitokorau and the Waipipi Wind Farm, there is still much work to be done. The PKW Trust makes a considerable contribution to this metric by supporting groups promoting the use of Te Reo through community grants. The Trust also collects data on the Te Reo fluency of all scholarship applicants and 30% noted a Te Reo or Māori studies element in their study plan.

What's next? Plans for the renaming of more farms are progressing and a brand refresh for the Novotel will see an increase in the use of Te Reo via signage and better representation of the Māori kaupapa behind the partnership. PKW will continue to drive incremental progress within this metric.

CULTURAL VISIBILITY & PRIDE

The extent to which the investment will have a positive or negative effect on how shareholders and Taranaki Māori view themselves. 19-20

/10

18-19

4/10

Why? This is closely linked to the use of Te Reo as part of PKW business activities and is a continuing journey. The pride the PKW Trust generates for shareholders is considerable and this is demonstrated by its vital inclusion in the annual general meeting, the half-yearly hui, annual report and regular articles in Whenua magazine profiling recipients and various initiatives.

What's next? Continuing to build relationships between Taranaki Māori iwi and hapū is an important way to strengthen cultural ties and foster pride for our shareholders.

Whakapono

(continued)

Adherance to our tikanga and belief in our future

PKW NARRATIVE

Ensuring that investment opportunities align with PKW's vision, core values and strategic approach. The strength of that alignment, along with the rate of reinforcement, has an impact on the metric score. 19-20

/10

18-19

Why? Telling the PKW story continues through channels such as the annual general meeting, half-yearly hui, Whenua magazine and the annual report. PKW is also embracing digital messaging through on-line videos, Facebook and its website.

6/10

What's next? PKW needs to ensure it is telling its whole story by identifying investments, initiatives or areas that may need improved narrative. Sharing information about investments both old and new is an important element in its communications strategy.

ACCESS AND CONNECTION TO LAND

A sense of connection to the whenua is important for PKW shareholders so this metric is designed to assess if an investment has a positive or negative impact on that desire. 19-20

/10

Why? While the intent outlined in the Kaitiakitanga strategy remains unchanged, progress is still ongoing.

What's next? To continue to drive this project forward to deliver tangible results for shareholders.

18-19

3/10 WĀHI TAPU

Identification and acknowledgement of wāhi tapu is key to this metric, along with the extent that a site is protected and accessible to whānau and iwi. 19-20

/10

18-19

5/10

Why? Wāhi tapu on PKW whenua have been identified, digitally mapped using GIS technology and physically protected, ensuring a permanent record of their existence, position and protection.

What's next? Creating opportunities for shareholders to connect with wāhi tapu remains a priority, along with the appropriate physical marking of sites.

PARININIHI KI WAITOTARA INCORPORATION

Whānaungatanga / Kotahitanga

WHANAUNGATANGA/KOTAHITANGA

Belief in collective action with trusted relationships

Bernie O'Donnell (Charles Bailey Scholar) thanks Shareholders for their support at 2019 PKW AGM

ATTRACTION AND RETENTION OF KEY STAFF

Identifying key staff and ensuring there is a succession plan in place for those roles enables the business to maintain momentum and progress despite any changes in the PKW team. Attracting the right people, whose personal aspirations and skillsets complement the Incorporation's strategic aims and goals, is also important to create an effective and efficient workforce. 19-20

/10

18-19

Why? There have been key staff changes for PKW Incorporation, PKW Farms, PNF and Ngāmotu Hotels. While some positions have been successfully filled, others are still subject to the recruitment process.

What's next? Proactive succession plans for key roles still need to be developed and implemented.

4/10 CO-INVESTMENT OPPORTUNITIES

Identifying and creating potential co-investment opportunities for other Taranaki Māori groups is strategically important to PKW. 19-20

4.5/10 0.5

18-19

4/10

Why? While the investment portfolio is still heavily weighted to entities where PKW Inc is the only investor, efforts to create more co-investment opportunities are beginning to bear fruit with Tai Hekenga (ten Taranaki iwi / Māori investment partners) being added this year. Te Pūia Tāpapa (Māori Investment Fund), made up of 26 Māori entities, also made its first significant investment in early July. Three new educational scholarships have been developed this year in partnership with Ngā Ruahine, Taranaki iwi and Te Atiawa.

What's next? Building relationships with potential investment partners continues to be a key strategic aim along with continuing the kōrero with existing partners.

Whānaungatanga / Kotahitanga (continued)

Belief in collective action with trusted relationships

WORKING CONDITIONS

Establishing a positive working culture and ensuring staff well-being across the entire PKW investment portfolio is important for business success while recognising the importance of a good work life for each individual. 19-20

/10

18-19

Why? Staff wellbeing remains an important part of the PKW kaupapa and so during the year PKW completed the first wellbeing assessment via Wellbeing360 of all staff and governance members.

What's next? Initiatives are now being deployed in response to the wellbeing assessment results and the biannual staff survey is due to be conducted next year which will give the organisation further valuable feedback.

6/10 EMPLOYMENT OPPORTUNITIES FOR TARANAKI MĀORI

Opportunities within the investment portfolio should be identified to ensure roles are retained where possible and further jobs can be created. 19-20

5/10

Why? Extending Te Kahu created two new positions for kaimahi and some new roles were also created within the Incorporation.

18-19

5/10

What's next? Job opportunity continues to be a consideration when exploring future investment possibilities. Active investments within Taranaki provide greater scope for job creation and the need for recruitment and so will be a key consideration of the diversification strategy.

CAPABILITIES DEVELOPMENT

The extent to which the investment provides opportunities to develop the personal and professional capabilities of both internal workers and other external stakeholders such as young Māori and whānau. Identification of core competencies and a cohesive development plan for individuals is integral. 19-20

/10

18-19

5/10

Why? The PKW Trust is a vital mechanism for boosting capability outside our operating businesses with the Trust awarding 23 scholarships and 159 educational grants to support Taranaki uri to develop new skills and gain knowledge. During the year, the Incorporation and PNF completed a training needs analysis \ talent mapping of all kaimahi. This has resulted in the Incorporation relaunching our Whakatipu (development conversations) programme, while PNF was successful in securing funding to support kaimahi development.

What's next? Deployment of development initiatives and developing a formal training framework for Ngāmotu Hotels.

Okahu and Inuwai Hapu join with PKW kaimahi whānau for the farm naming ceremony

ALIGNED PARTNERS

Divided into two measures, this metric assesses the likelihood of new whānau, iwi and regional new businesses being created or existing SMEs growing as a result of PKW investment. a) Spend with Māori businesses 19-20

6/10 18-19

6/10

Why? PKW controllable spend with Māori businesses increased to 13% this year (more than $1.5m). The organisation is continuing to refine its supplier database so Māori suppliers are easily identifiable. The PKW Trust allocated 10% of its total grant contribution to marae, representing around $20k.

What's next? PKW’s goal of 25% of controllable spend being allocated to Māori suppliers \ businesses remains in place. Māori businesses and suppliers are being encouraged to make themselves known to the Incorporation so they can be considered during any procurement review process.

b) Value for money 19-20

/10

18-19

4/10

Why? A new agreement has been signed this year with farm merchandise supplier Farmlands which represents an annual spend of more than $2million for PKW Farms. The agreement included an added-value element that will see the creation of several PKW Trust scholarships over the period of the contract.

What's next? The on-going deployment of our procurement plan has identified the areas of top spend, particularly within the Farms business, and review of both suppliers and the agreements held with them will continue to focus on value for money being achieved.

WHANAUNGATANGA/KOTAHITANGA

PARININIHI KI WAITOTARA INCORPORATION

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

PARININIHI KI WAITOTARA INCORPORATION NGA TAUĀKĪ PŪTEA FINANCIAL STATEMENTS for the year ended 30 June 2020

KUPU WHAKATAKI INTRODUCTION

These financial statements have been presented in a style that attempts to make them less complex and more relevant to shareholders and other stakeholders. We have grouped the financial statements into the following sections: A Te Ānga (Basis of preparation)

B Ngā taonga kōutou e pupuri ana (Our assets)

C Te pūrongo whiwhinga, whakapaunga (Our performance)

D Haupū rawa (Our capital)

E Ngā korero whakatapiri (Other disclosures)

Each section sets out the accounting policies applied in producing the relevant statements and notes, along with details of any key judgements and estimates used. The intent is to provide readers with a clearer understanding of PKW's financial position and performance. Keeping it simple Notes to the financial statements provide information required by accounting standards or legislation to explain a particular feature of the financial statements. The notes that follow also provide explanations and additional disclosures to help readers' understanding and interpretation of the financial statements. We have used icons and colour throughout to signal and direct readers to the additional disclosures, and to connect the financial information back to our core values presented in Te Ara Putanga. Explains the main purpose of the section Links the Primary Financial Statements to the detailed breakdown in the Notes to the Financial Statements Explains the accounting policy applied in the disclosure note Signals if a key estimate or critical judgement has been applied Signals a key risk area for PKW Identifies a capital committment by PKW that is not included in the numbers of the Financial Statements Signals a key difference where PKW has specific obligations/rights due to legislation that may not apply to other entity types Reflects the link the asset or investment has to Te Ara Putanga based on the core value it contributes to the most, indicated by the pou being highlighted white

20 20

INCORPORATION

NGA TAUĀKĪ PŪTEA FINANCIAL STATEMENTS for the year ended 30 June 2020

TE TAUĀKĪ PŪTEA POUMATUA PRIMARY FINANCIAL STATEMENTS Te tauākī whiwhinga, whakapaunga whānui (Statement of comprehensive income)

Te Ānga

1 Te Ānga (Basis of preparation) 2 Critical accounting estimates and judgements

Te tauākī tūnga pūtea (Statement of financial position)

Ngā taonga kōutou e pupuri ana

Te tauākī whakaatu i te rerekētanga o te tahua (Statement of changes in equity)

Te pūrongo whiwhinga, whakapaunga

Haupū rawa

Te tauākī kapewhiti (Statement of cash flows)

Ngā korero whakatapiri

3 I nvestment properties

9 Revenue

14 Capital management 16 Risk management

4 P roperty, plant and equipment

10 Other gains / (losses)

15 Borrowings

5 Intangible assets 6 Biological assets 7 I nterests in associates and joint ventures 8 Investments

11 Expenses 12 Finance income and expenses 13 Dividends

17 Derivative financial instruments 18 Leases 19 Income tax expense 20 Deferred tax liability 21 Māori authority credit account 22 Related party transactions 23 Group entities

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

PARININIHI KI WAITOTARA

Te Pūrongo a ngā Kaiarotake (Independent Auditor’s Report) E ngā kaipūpuri hea o Te Kaporeihana o Parininihi ki Waitōtara (To the Shareholders of Parininihi ki Waitotara Incorporation) Te arotake pūtea o ngā pūrongo pūtea (Report on the audit of the consolidated financial statements)

Arotake (Opinion) In our opinion, the accompanying consolidated financial statements of Parininihi ki Waitotara Incorporation (the ’Incorporation’) and its subsidiaries (the 'Group') on pages 42 41 to to 63: 63:

We have audited the accompanying consolidated financial statements which comprise:

—

Te tauākī tūnga pūtea (statement of financial position) as at 30 June 2020;

Present fairly in all material respects the Group’s financial position as at 30 June 2020 and its financial performance and cash flows for the year ended on that date; and

—

ii.

Comply with New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime.

Te tauākī whiwhinga, whakapaunga whānui (statement of comprehensive income), te tauākī whakaatu i te rerekētanga o te tahua (statement of changes in equity) and te tauākī kapewhiti (statement of cash flows) for the year then ended; and

—

Notes, including a summary of significant accounting policies and other explanatory information.

Te tūāpapa o te arotake (Basis for opinion) We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the consolidated financial statements section of our report. Our firm has also provided other services to the Group in relation to governance review services. Subject to certain restrictions, partners and employees of our firm may also deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. These matters have not impaired our independence as auditor of the Group. The firm has no other relationship with, or interest in, the Group.

Pārongo kē atu (Other information) The Committee of Management Members, on behalf of the Group, are responsible for the other information included in the entity’s Annual Report. Our opinion on the consolidated financial statements does not cover any other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. -3-

Te whakamahinga o tēnei arotake (Use of this independent auditor’s report) This independent auditor’s report is made solely to the Shareholders as a body. Our audit work has been undertaken so that we might state to the Shareholders those matters we are required to state to them in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Shareholders as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed.

Ngā haepapa o te Komiti Kaiwhakahaere (Responsibilities of the Committee of Management Members for the consolidated financial statements) The Committee of Management Members, on behalf of the Incorporation, are responsible for:

—

The preparation and fair presentation of the consolidated financial statements in accordance with generally accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial Reporting Standards Reduced Disclosure Regime);

—

Implementing necessary internal control to enable the preparation of a consolidated set of financial statements that is fairly presented and free from material misstatement, whether due to fraud or error; and

—

Assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.

Ngā haepapa o ngā Kaiarotake (Auditor’s responsibilities for the audit of the consolidated financial statements) Our objective is:

—

To obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error; and

—

To issue an independent auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs NZ will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. A further description of our responsibilities for the audit of these consolidated financial statements is located at the External Reporting Board (XRB) website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-7/ This description forms part of our independent auditor’s report.

KPMG Tauranga 7 September 2020

-4-

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

TE PURONGO Ā-TAU Ā KOMITI (COMMITTEE'S ANNUAL REPORT) FOR THE YEAR ENDED 30 JUNE 2020

2020

$'000

REVIEW OF OPERATION

Profit of PKW for the year

12,060

Add retained earnings as at 1 July 2019

180,796

Retained earnings

189,263

Less dividends

(3,593)

THE FINANCIAL STATUS OF PKW AT 30 JUNE 2020 WAS:

Assets 334,288 THESE WERE FINANCED BY:

Shareholders' funds

267,076

Liabilities 67,212

SHAREHOLDERS' FUNDS 334,288

Parininihi ki Waitotara Incorporation is a Māori incorporation constituted under Te Ture Whenua Māori Act 1993. With a primary purpose to manage and promote the use and administration of whenua and other interests on behalf of the owners.

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

TE TAUĀKĪ WHIWHINGA, WHAKAPAUNGA WHĀNUI (STATEMENT OF COMPREHENSIVE INCOME) FOR THE YEAR ENDED 30 JUNE 2020

This section summarises what PKW earned (revenue), what PKW spent (expenditure), any movements in the value of PKW assets or investments (gains or losses) and the resulting profit or loss for the financial year. Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the Financial Statements)

Revenue Other gains / (losses) - net Expenses Finance costs - net Share of net profits - equity method Profit before income tax Income tax Profit for the year Other comprehensive income: Items that will not be reclassified to profit or loss:

Revaluation of whenua tupuna Items that may be reclassified to profit or loss: Cash flow hedges Other comprehensive income for the year - net of tax Total comprehensive income for the year

2020

Restated 2019

Notes

$'000

C9 C10 C11 C12 B7

28,104 4,188 (17,300) (2,078) 533 13,447 (1,387) 12,060

28,256 3,109 (17,343) (2,565) 2,269 13,726 (1,941) 11,785

1,874

(1,308)

(531) 1,343

(386) (1,694)

E19

13,403

10,091

For and on behalf of the Committee of Management these financial statements are authorised for issue on 7 September 2020.

HINERANGI RAUMATI Chair

7 September 2020

TAARINGAROA NICHOLAS

Chair Audit and Risk Committee 7 September 2020

TE TAUĀKĪ TŪNGA PŪTEA (STATEMENT OF FINANCIAL POSITION) AS AT 30 JUNE 2020

This section details what PKW own (assets), what PKW owe (liabilities) and the owners share of PKW (shareholders' funds) at the end of the financial year. Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the Financial Statements)

Notes ASSETS Current assets Cash and cash equivalents Trade and other receivables Total current assets Non-current assets Property, plant and equipment Intangible assets Investments accounted for using the equity method Investments in equity instruments Investment property - commercial and rural Investment property - whenua tupuna Biological assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Current tax payable Derivative financial instruments Whenua lease liabilities Total current liabilities Non-current liabilities Borrowings Unclaimed dividends Derivative financial instruments Deferred tax liabilities Whenua lease liabilities Total non-current liabilities Total liabilities Net assets SHAREHOLDERS' FUNDS Share capital Reserves Retained earnings Total shareholders' funds

B4 B5 B7 B8 B3 B3 B6

2020

2019

$'000

8,804 4,259 13,063

7,090 5,024 12,114

122,654 15,812 11,224 18,520

112,975 15,877 10,471 12,827

4,315 137,543 11,157 321,225

3,789 137,661 10,318 303,918

3,576 889 1,072 226 5,763

2,146 575 712 3,433

D15 C13 E17 E20

51,742 4,913 1,912 1,976 906 61,449 67,212 267,076

46,742 4,618 1,456 2,515 55,331 58,764 257,268

D14 D14 D14

5,549 72,266 189,261 267,076

5,549 70,923 180,796 257,268

334,288

E17

316,032

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

TE TAUĀKĪ WHAKAATU I TE REREKĒTANGA O TE TAHUA (STATEMENT OF CHANGES IN EQUITY) FOR THE YEAR ENDED 30 JUNE 2020

This section details the movement in PKW shareholders' funds over the financial year, such as any profit or loss or dividends attributed or paid to shareholders. Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the Financial Statements) Shareholders' funds

Notes Balance at 1 July 2018 Profit for the year (restated) Revaluation of PPE - whenua tupuna (restated) Cash flow hedges Total comprehensive income (restated) Balance as at 30 June 2019 (restated) Balance as at 1 July 2019 (restated) Profit for the year Revaluation of PPE - whenua tupuna Cash flow hedges Total comprehensive income Dividends paid Balance as at 30 June 2020

Share capital $'000

Capital/ revaluation reserve $'000

Cash flow hedge reserve $'000

Retained earnings $'000

Total $'000

5,549 -

73,937 -

(1,321) -

169,011 11,785

247,176 11,785

(386)

(1,308)

(386)

11,785

10,091

5,549

72,629

(1,707)

180,796

257,267

5,549

72,629

(1,707)

180,796

257,267

1,874

C13

(1,308)

5,549

1,874 74,503

(532) (532) (2,239)

12,060

12,060 (3,593) 189,263

12,060

(532) 13,402 (3,593) 267,076

TE TAUĀKĪ KAPEWHITI (STATEMENT OF CASH FLOWS) FOR THE YEAR ENDED 30 JUNE 2019

This section details PKWs cash, what cash came in (receipts) and out (payments). It is separated into cash from doing its day to day business (operating activities), cash relating to capital expenditure ie buying/selling assets and investments (investing activities) and cash relating to borrowings and funding (financing activities). Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the Financial Statements)

Notes Cash flows from operating activities Receipts from customers Interest received Income tax paid Payments to milk price futures Payments to suppliers Payments to kaimahi Interest paid Lease interest paid GST paid

Net cash inflow from operating activities Cash flows from investing activities Receipts for property, plant and equipment Payments for property, plant and equipment

Payments for investments Receipts from sale of investments Receipts from sale of investment property Receipts from joint ventures Payments to joint ventures Net cash inflow / (outflow) from investing activities Cash flows from financing activities Receipt of borrowings Repayment of borrowings Payment of dividends Lease principal paid Net cash inflow / (outflow) from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

2020

$'000

32,504 125 (1,612) (221) (12,598) (3,478) (2,704) (73) (2,675)

30,236 219 (1,856) (161) (11,815) (3,703) (2,845) (2,283)

10 (6,224)

12,009 (3,353)

5,000 (1,447) (246) 3,307 1,714 7,090 8,804

(14,297) (1,332) (15,629) 239 6,851 7,090

9,268

(4,591) 164 236 (456) (10,861)

C13

2019

7,792

(26) 922 1,261 1,370 (4,107) 8,076

PARININIHI KI WAITOTARA INCORPORATION -NGA TAUĀKĪ PŪTEA (FINANCIAL STATEMENTS)

4646

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020 Notes to the financial statements provide information required by legislation and accounting standards to expain a particular feature of the financial statements. The notes are a part of the financial statements and will also provide explanations and additional disclosure to assist readers' understanding and interpretation of the annual report and the financial statements.

TE ĀNGA

(BASIS OF PREPARATION)

This section sets out the legislation and accounting standards that apply to PKW, and significant items that relate to the financial statements as a whole. A1 T hese financial statements are for Parininihi ki Waitotara Incorporation and its subsidiaries (collectively PKW). Please refer to note E23 for further disclosure. PKW's consolidated financial statements are prepared:

• In accordance with generally accepted accounting practice (GAAP) in New Zealand and section 276 of Te Ture Whenua Māori Act 1993. The financial statements comply with New Zealand equivalents to International Financial Reporting Standards, as applicable to for-profit entities, for the purposes of complying with NZ GAAP. PKW is eligible and has elected to report in accordance with Tier 2 for-profit accounting requirements (NZ IFRS RDR) on the basis that PKW has no public accountability and is not a large for-profit public sector entity. In applying for NZ IFRS RDR, PKW has applied a number of disclosure exemptions;

• On a historical cost basis, except for revaluation of certain assets and liabilities; • In New Zealand dollars with all values rounded to thousands; and

• Using accounting policies as provided throughout the notes to the financial statements. Significant changes in the current reporting period PKW has amended its financial statements and notes to make them less complex and more relevant to users. In doing so presentation of comparative information in certain areas have changed from the prior year. Transfer of whenua tupuna between investment property and property, plant and equipment In 2019 the gain in fair value in profit for the year was overstated as it included a transfer value resulting in the loss in other comprehensive income being overstated, with no net impact on total comprehensive income. Comparative balances have been restated to reflect the correct presentation. Adoption of new accounting standards NZ IFRS 16 Leases PKW has adopted NZ IFRS 16 for the year ended 30 June 2020 which has had minimal impact on the financial statements. The new accounting policies and the impact of transition is disclosed in notes B4 and E18. All other accounting policies have been applied consistently with the prior year. A2 C ritical accounting estimates and judgements Preparation of these financial statements requires the Committee of Management and Management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Judgements and estimates are based on external advice, historical experience and other various factors they believe to be responsible under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These judgements and estimates have been provided throughout the notes to the financial statements.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

NGĀ TAONGA KŌUTOU E PUPURI ANA

(OUR ASSETS)

This section details the assets and investments PKW hold as kaitiaki (stewards) and how they generate revenue. B3 Investment properties Investment properties are held for long-term capital appreciation and to earn rentals. Investment property held by PKW includes whenua entrusted to the Incorporation upon establishment in 1976 (whenua tupuna). The whenua is classified as either Corpus (based on two legal titles existing - a Fee Simple and a Leasehold) or Māori Freehold, and is leased out to third parties. It is generally accepted that a market bias exists for Māori Freehold whenua due to various encumbrances imposed by Te Ture Whenua Māori Act 1993. These encumbrances have been reflected in the values adopted including the historical connection between the owners and the whenua, the membership of the preferred class of alienee’s and the statutory role of Te Kooti Whenua Māori (Māori Land Court). Investment property is carried at fair value and any changes in fair value are recognised in profit or loss as part of other gains/losses.

Whenua tupuna Balance at beginning of year Transfers from / (to) property, plant and equipment Net gain in fair value Total Whenua tupuna Commercial property Balance at beginning of year Additions Disposals Net gain / (loss) in fair value Total Commercial property Rural property Balance at beginning of year Net gain in fair value Total Rural property Total investment property

2020 $'000

2019 $'000

137,661 (2,638) 2,520 137,543

128,177 3,300 6,183 137,660

960 18 12 990

2,570 69 (1,335) (344) 960

2,829 495 3,324 141,857

1,650 1,179 2,829 141,449

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

4848

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020 (a) Commercial and rural property PKW engage independent and qualified valuers to determine the fair value of the investment property at the end of each financial year. The fair value has been based on the Market approach which considers comparable assets for which price information is available. At 30 June 2020 the valuations have been performed or reviewed by Telfer Young and Morgans Consultants who are considered industry specialists in valuing these types of commercial and rural properties in the Taranaki region. (b) Whenua tupuna A discounted cash flow model is used to assess the fair value of the lessor's interest in whenua tupuna at the end of each financial year. PKW engage PwC as an independent advisor, to provide specific inputs to the model each year. The inputs applied in the valuation of whenua tupuna have been categorised as level 3 in the fair value hierarchy, requiring Management to make estimates based on unobservable inputs. The following table summarises the quantitative information about the significant unobservable inputs used: Inputs used to measure FV Discount rate Cash flow growth rate Time horizon An assessment (and therefore potential adjustment) of the projected cash flows at the next rental reset period being (2023/24), based on market knowledge and matters to be addressed during the next rental review.

2020 4.50% 1.60% 30 years

2019 4.90% 1.90% 30 years

Impact of the COVID-19 global pandemic At 30 June 2020 the real estate markets to which PKW investment properties belong were impacted by significant market uncertainty caused by the COVID-19 outbreak. Due to the market disruption and lack of transactional data, a greater degree of uncertainty was attached to the commercial and rural valuations performed. B3 Property, plant and equipment (a) Property, plant and equipment Measured at cost less accumulated depreciation and any accumulated impairment losses. Any gain or loss on disposal is recognised in profit or loss. (b) Whenua tupuna Reflects whenua tupuna utilised within PKW and is recognised at fair value using the discounted cash flow model - see note B4. Any changes in fair value is recognised in other comprehensive income. (c) Right of use assets Recognised at cost based on the initial lease liability measurement - see note E18.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020 B4 (a), (b), and (c) Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to PKW. An asset's carrying amount is written down to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Depreciation is calculated using the straight-line and diminishing value methods to allocate the cost over the estimated useful lives, and is recognised in profit or loss. Whenua is not depreciated. The estimated useful lives are as follows: Accounting rates for property, plant and equipment

Straight Line 2-95 years 3-37 years 4-90 years 2-15 years

Buildings Plant, equipment and machinery Improvements Right of use assets

Diminishing Value 8-12.5 years 3-100 years 3-50 years -

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Whenua

Buildings

equipment &

Improvements

$'000

385 385

51,511 51,511

18,521 (3,649) 14,872

9,586 (4,354) 5,232

7,860 (1,479) 6,381

87,863 49,346 49,346 (9,482) 49,346 127,727

847 847

42,181 42,181

17,915 (4,275) 13,640

9,613 (4,422) 5,191

7,856 (1,478) 6,378

78,412 44,738 44,738 - (10,175) 44,738 112,975

847 1,529 (847) -

42,181 2,784 -

13,640 1,227 -

5,191 664 -

6,378 482 -

1,346 -

44,738 112,975 1,346 6,686 (847) 1,874 1,874 2,637 2,637

1,529

(29) 44,936

(72) (96) (715) 13,984

(9) (738) 5,108

142 (259) 6,743

(241) 1,105

32 (96) (1,953) 49,249 122,654

1,529 1,529

44,936 44,936

18,811 (4,827) 13,984

10,217 (5,109) 5,108

8,445 (1,702) 6,743

1,346 (241) 1,105

85,284 49,249 49,249 - (11,879) 49,249 122,654

WIP

At 30 June 2018

Cost Valuation Accumulated depreciation Net book amount

At 30 June 2019 Cost Valuation Accumulated depreciation Net book amount

At 30 June 2020 Opening net book amount Movement on transition Additions Transfers from WIP Revaluation Transfers from investment property Disposals Impairment Depreciation (note 11) Closing net book amount At 30 June 2020 Cost Valuation Accumulated depreciation Net book amount

Plant,

Capital

machinery

Right of

Whenua

$'000

use asset

Tupuna

Total

$'000

The estimated fair value of PPE excluding whenua tupuna at 30 June 2020 was $85m (2019:$100m), with an amount of $96m pledged for security against PKW borrowings - see note 15.

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

5050

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

B5 Intangible assets Assets that have no physical nature, but have value that is expected to provide a future benefit to PKW. Fishing Quota Fishing quota has no foreseeable limit to its useful life, and is therefore recognised at cost and reviewed annually for impairment. The recoverable amount at 30 June 2020 was $51.1m (2019:$50.7m) and the full amount is pledged as security against PKW borrowings - see note D15. Computer Fishing software $'000

quota $'000

Total $'000

257 (65) 192

15,620 15,620

15,877 (65) 15,812

460 (268) 192

15,620 15,620

16,080 (268) 15,812

Year ended 30 June 2020 Opening net book amount Amortisation charge (note 11) Closing net book amount At 30 June 2020 Cost Accumulated amortisation Net book amount B6 Biological assets

Livestock is measured at fair value less cost to sell, and changes in fair value are recognised in the statement of comprehensive income within revenue. Livestock valuations at 30 June 2020 were provided by Carrfields Livestock Ltd. These market values reflect livestock of similar age, breed and genetic merit throughout Aotearoa.

Balance as at 1 July 2019 Purchases Sales FV gain/(loss) Total biological assets 30 June 2020

Livestock numbers comprise of: Dairy Beef Sheep Closing balance

Dairy $'000

Beef $'000

Sheep $'000

Total $'000

9,670 292 (1,263) 1,442 10,141

598 44 (454) 765 953

50 5 (13) 21 63

10,318 341 (1,730) 2,228 11,157

Quantity 2020 6,899 971 373 8,243

Quantity 2019 6,592 809 284 7,685

The livestock carrying amount of $11m has been pledged for security against PKW borrowings - see note D15.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

B7 Interests in associates and joint ventures PKW has interests in associates and a joint venture which are all resident in Aotearoa. They are accounted for using the equity method of accounting. Investments are initially recognised at cost and the carrying value is increased or decreased by cash contributions paid or distributions received, and the entities share of profit or loss for the year. The share of profit or loss is recognised in the statement of comprehensive income within share of net profits - equity method. Impact of the COVID-19 global pandemic The pandemic has had a significant impact of the trading revenue of Port Nicholson Fisheries Limited Partnership and Ngāmotu Hotels Limited Partnership. At the date of issuing our financial statements impairment reviews by the Limited Partnerships have determined no material change in the fair value of the interests. (a) Interests in joint ventures and associates Nature of business Port Nicholson Facilities Limited Partnership

Port Nicholson Fisheries Limited Partnership

Mangaoapa Station Partnership

Ngamotu Hotels Limited Partnership

Balance date

Carrying amount

2020

2019

2020

2019

33%

31-Mar

1,625

1,565

12%

31-Mar

266

Forestry

50%

30-Jun

5,097

4,900

Hotel

33%

30-Jun

4,236

4,006

11,224

10,471

2020 $'000 10,471 456 533 (236) 11,224

2019 $'000 5,465 4,107 2,269 (1,370) 10,471

Property Koura

processing

(b) Movements in carrying amounts

Balance 1 July 2019 Capital invested Share of profit after tax Cash distribution Total equity accounted investments

Ownership interest

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

5252

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

B8 Investments Investments in an entity where PKW does not have significant influence or joint control are classified as investments at fair value through profit or loss. Gains or losses on FV movement and any interest or dividend income is recognised in the statement of profit or loss. (a) Farming portfolio PKW is required to hold certain shares and investments in cooperative companies to facilitate farming operations. Shares are held as a consequence of business operations and not held for trading. These are initially recognised at cost, and subsequently revalued to fair value based on the market share price at 30 June 2020. (b) Diversification portfolio PKW has implemented a diversification strategy consisting of property and other business interests outside core dairy farming. These are initially recognised at cost, and subsequently revalued to fair value based on valuations undertaken by each entity.

Farming portfolio Ballance Agri-Nutrients Limited Fonterra Co-operative Group Limited Ravensdown Limited Total farming portfolio

2020 $'000

2019 $'000

465 11,063 501 12,029

406 11,543 500 12,449

294

256

5,934

176

87 6,491 18,520

87 374 12,827

Diversification portfolio Rockit Orchards No.2 Limited Partnership Tai Hekenga Limited Partnership Te Pūia Tāpapa Limited Partnership Other financial assets Total diversification portfolio Total investments

An amount of $12m has been pledged for security against PKW borrowings - see note D15. Capital committment In April 2018 PKW committed $2m to invest in Te Pūia Tāpapa Limited Partnership, a fund established by iwi and Māori organisations to invest in significant Aotearoa businesses. At 30 June 2020 $1.8m remains as committed capital due on completion of key milestones by the fund.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

TE PŪRONGO WHIWHINGA, WHAKAPAUNGA

(OUR PERFORMANCE)

This section focuses on the results and performance of PKW. On the following pages you will find notes explaining PKW's results for the year. C9 Revenue (a) Rental income - whenua tupuna Rental income is recognised on a straight line basis over the term of the lease. The Group leases whenua tupuna under operating leases with rentals payable six-monthly. Under legislation rent amounts are set every seven years with the next rent review due 1 January 2024 with a perpetual right to renew every 21 years. (b) Milk proceeds Milk proceeds are recorded at a point in time when control of the milk transfers to the customer which is when the product is physically lifted and removed from the farm vats. PKW sells milk to Fonterra, and has entered into milk price future and swap contracts. Revenue is recognised at either the mid-point of the latest published forecast Fonterra milk price range, or at the agreed milk price future or swap contract. (c) Quota lease Quota is leased based on an annual catch entitlement and at an agreed price with revenue recognised when invoiced. (d) Livestock Livestock sales are recorded when control of the livestock transfers to the customer, usually on slaughter or collection of the animals by a third party. Revenue is recognised as a net balance of livestock sales, purchases and fair value movements. (e) Other income Interest revenue is recognised using the effective interest method. Dividends are recognised when received. All other revenue is recognised at the point a service has been delivered or commitment made by a customer.

Rental income - whenua tupuna Rental income - other Milk proceeds Quota lease Livestock Other income

Total revenue

2020 $'000

2019 $'000

7,209 244 16,591 1,017 2,227 816

7,147 301 15,674 1,979 1,992 1,163

28,104

28,256

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

5454

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

C10 Other gains / (losses)

Gain / (loss) on disposal of property, plant and equipment Gain / (loss) on investments at fair value Gain on investments at cost Gain on investment property Loss on foreign exchange

Total gains / (losses)

C11 Expenses Expenses have been categorised in alignment with the outcomes set in Te Ara Putanga.

Manaakitanga Advisory, consulting and professional fees Depreciation and amortisation Rent and whenua rates Repairs and maintenance Other Total manaakitanga Kaitiakitanga Resource use - water rates and electricity Animal health Feed inputs Kaitiakitanga general Pasture management Total Kaitiakitanga Whānaungatanga Contract milker expenses Kaimahi benefits Kaimahi welfare Health and safety Governance fees Social investment - grants Total whānaungatanga Whakapono

Shareholder communications Total whakapono

Total expenses

2020 $'000

2019 $'000

(169) 1,331 3,026 -

561 (4,654) 186 7,019 (3)

2020 $'000

2019 $'000

600 2,018 360 1,396 1,481

720 1,783 703 1,496 1,446 6,148

220 1,220 2,282 47 973

314 1,228 2,179 1,190 4,911

2,219 3,541 98 48 483 244

6,633

1,641 3,796 79 35 391 268 6,210

70 70

74 74

17,300

17,343

4,188

5,855

4,742

3,109

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020 C12 Finance income and expenses

Finance costs Interest on borrowings and finance charges Interest on lease liability Total finance costs Finance income Interest income Net finance costs

2020 $'000

2019 $'000

(2,131) (73) (2,203)

(2,801) (2,801)

125 (2,078)

236 (2,565)

C13 Dividends PKW aspire to target a distribution over time of 1.5-2% of shareholder funds and/or 40-45% of net operating profit. When setting the dividend the Committee of Management consider the following: •T he requirements of Te Ture Whenua Māori Act 1993 and other applicable legislation •T he level of distributable profit and cash available for distribution • Any relevant banking covenants •T he significance of dividends to PKW shareholders as a link to PKW and their ancestral whenua.

Dividend for 2020 Dividend for 2019 (paid November 2019) Total dividends Total shares 1,197,709

Date approved by Committee of Management 29-Jun-20 5-Jul-19

2020 Per share

1.55 1.45 3.00

2020 $'000

1,856 1,737 3,593

2019 $'000

(a) Grant to Parininihi ki Waitotara Trust An annual grant of $186k (2019:$174k) is paid each year to the Trust based on 10% of the annual dividend, to support the Trust objectives to advance the educational and cultural aspirations of Taranaki Māori. (b) Unclaimed dividends Comprises dividends held by PKW relating to missing shareholders. Unclaimed dividends are recognised as a non-current liability due to the nature of the missing shareholders and the length of time required to locate a shareholder or their tamariki mokopuna. PKW maintain a list of the shareholders whose dividends remain unpaid and actively work on the identification of missing shareholders.

Unclaimed dividends

2020 $'000 4,913

2019 $'000

4,618

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

5656

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

HAUPŪ RAWA (OUR CAPITAL)

This section explains how PKW manages its capital structure (items that make up Shareholders' funds) and borrowings. D14 Capital management PKW considers its capital as comprising all the components of shareholders' funds.

Share capital Capital reserve Cash flow hedge reserve Retained earnings Total shareholders' funds

2020 $'000

2019 $'000

5,549 74,503 (2,239) 189,263 267,076

5,549 72,629 (1,707) 180,796 257,267

(a) Share capital Value of capital on establishment of the Incorporation. Shares issued have no par value, each shareholder is entitled to a single vote per share. (b) Capital reserve Comprises capital contributions that have been recognised since establishment of Parininihi ki Waitotara Incorporation, and the fair value movement of whenua tupuna held as property, plant and equipment. (c) Cash flow hedge reserve The cumulative gain or loss on cashflow hedges. When the underlying derivative has been ended it will be recognised in profit or loss. (d) Retained earnings Accumulated net profit and losses, including transfers from the cashflow reserve when the underlying derivative has ended, less dividends paid.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

D15 Borrowings Rabobank borrowings are recognised initially at the fair value of the drawn facility amount, net of transaction costs paid. Borrowings are subsequently stated at amortised cost using the effective interest method. All borrowing costs are recognised as an expense in the period they are incurred.

Secured Rabobank facility Total borrowings Rabobank facility Facility 1 (matures 30 September 2022) Facility 2 (matures 30 September 2022) Facility 3 (matures 20 February 2024) Total facility - Drawn - Undrawn Weighted average interest rate

2020 $'000

2019 $'000

51,742 51,742

46,742 46,742

21,000 9,000 45,000 75,000 51,742 23,258 75,000 3.05%

21,000 9,000 45,000 75,000 46,742 28,258 75,000 3.24%

The facility is secured by:

•G eneral security agreement from the Proprietors of Parininihi ki Waitotara Block and other PKW entities •U nlimited guarantee from the Proprietors of Parininihi ki Waitotara Block and PKW Farms LP

•S even first mortgages over selected properties and Quota and a registered first security agreement over all personal property, with a total value of $170m. PKW has complied with all banking covenants in the year.

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

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NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

NGĀ KORERO WHAKATAPIRI (OTHER DISCLOSURES)

Section E outlines various other notes required by accounting standards and additional disclosure to assist readers' understanding of these items in the financial statements. E16 Risk management PKW has exposure to key risks and these risks could affect PKW's future financial performance by: Risk

Exposure arising from

Measurement

Management

Legislative or regulatory

Changes to legislative regime or operational regulations

Watching brief

Active participation via submissions supported by relevent advisory services

Environmental

Social licence to operate; agricultural impacts due to climate or disease

Watching brief

Alignment and refinement of operating practices

Interest rate

Long-term borrowings at variable rates

Sensitivity analysis

Interest rate swaps

Funding or credit

Inability to renew borrowing Aging analysis facilities or favourable terms

Liquidity

Inability to meet day to day obligations

Commodity price Material movement in agricultural product prices

Tiered borrowing facility profile

Rolling cash flow Liquid funds and committed facilities forecasts Sensitivity analysis

Milk price futures and swaps

Primary responsibility for identification and control of risks rest with the Audit and Risk Committee (via delegation from the Committee of Management) and Management. The Committee of Management approves policies for managing each of the risks identified above.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

Categories of financial instruments:

Financial assets Financial assets at amortised cost Receivables Milk price futures collateral Cash and cash equivalents Financial assets at fair value through profit or loss Total Financial assets Financial liabilities Financial liabilities at amortised cost Borrowings Payables Unclaimed dividends Derivatives - used for hedging Total financial liabilities

2020 $'000

2019 $'000

3,894 315 8,804 18,520 31,533

4,618 298 7,090 12,827 24,833

51,742 49 4,913 2,984 59,688

46,742 203 4,618 2,168 53,731

E17 Derivative financial instruments PKW uses cash flow hedges to manage its risks. These are managed by: (a) Interest rate swaps The interest rate on the PKW Rabobank facility is floating, exposing PKW to movements in interest rates. The swaps provide the right to pay interest at fixed rates and receive interest at floating rates, and cover 58% (2019:64%) of drawn borrowings. (b) Milk price futures and Milk price swaps PKW has milk price risk resulting from variability in Fonterra's final farmgate milk price announced and settled in September each year. The objective is to create price certainty around milk price by locking in the price for a portion of milk production in the current and future seasons. PKW has entered into future and swap contracts which has locked in a weighted average price of $6.49 per kilogram of milk solids (KGMS) for 50% of the 2021 season's budgeted milk production. The market price for the 2020/21 season at 30 June 20 was $6.67 KGMS.

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

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NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

Fair value movement is recognised in other comprehensive income and transferred to profit or loss when the hedged item affects profit or loss. PKW has the following derivative financial instruments:

Current liabilities Interest rate swaps Non-current liabilities Interest rate swaps Milk price futures and swaps Total non-current liabilities Total derivative financial instrument liabilities

2020 $'000

2019 $'000

1,072

712

1,435 477

1,441 15 1,456

1,912 2,984

2,168

E18 Leases (a) As a lessee PKW has adopted NZ IFRS 16 retrospectively from 1 July 2019, but has not restated comparatives for the 2019 year. The reclassifications and adjustments arising from the new leasing rules are recognised in the opening balance sheet on 1 July 2019. On transition, PKW recognised $1.35m of right of use assets (presented within property, plant and equipment - B4) and lease liabilities relating to leases which had previously been classified as operating leases. Lease liabilities were measured at the present value of the remaining lease payments and discounted using the whenua tupuna class of assets discount rate of 5.4%. Right of use assets were measured at an amount equal to the lease liability at that date. (b) As a lessor PKW did not need to make any adjustments to the accounting for assets held as lessor under operating leases as a result of adoption of NZ IFRS 16.

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

E19 Income tax expense Tax expense reflects the impact of current and deferred tax and is recognised in profit or loss unless it relates to an item in other comprehensive income or directly to equity. Current tax is the tax payable on the taxable income for the year and any adjustment to tax payable for previous years based on applicable tax law. 2020 $'000

2019 $'000

13,447

13,726

Tax at the Māori Authority tax rate 17.5%

2,353

2,402

Adjusted for the tax effect of: Other permanent differences Changes in fair value of investments Prior year adjustments Non-assessable income Non-deductible expenses Income tax expense

(173) (721) 82 (383) 229 1,387

143 (747) 3 (56) 196 1,941

1,926 (539) 1,387

1,464 477 1,941

(113) 1,274

(77) 1,864

(a) Reconciliation between tax expense and accounting profit Profit for the year

(b) Income tax expense Income tax comprises: Curent tax Deferred tax expense / (benefit) Charged to other comprehensive income Loss on FV of cash flow hedges Income tax

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

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NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

E20 Deferred tax liability Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts used for taxation purposes. It is not recognised if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time does not affect accounting or taxable profit or loss. A deferred tax asset is recognised when it is probable that future taxable profit will be available to use the asset. Movement in deferred income tax: Investment properties $'000 At 1 July 2018 Charged/(credited) to the statement of comprehensive income At 30 June 2019 At 1 July 2019 Charged / (credited) to the statement of comprehensive income At 30 June 2020

1,034

Property, plant and equipment $'000

475

Livestock $'000

Other $'000

Total $'000

662

(248)

162

460 (99)

2,038 477

1,696 1,696 (477)

227 227 14

231 231 58

361 361 (134)

2,515 2,515 (539)

1,219

241

289

227

1,976

2020 $'000

2019 $'000

11,359

9,599

E21 Māori authority credit account

Māori authority credits

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS) FOR THE YEAR ENDED 30 JUNE 2020

E22 Related party transactions PKW has a related party relationship with its Committee of Management (COM), directors, shareholder representative and executive management team.

(a) Compensation with key management personnel Governance fees Parininihi ki Waitotara Incorporation Parininihi ki Waitotara Trust PKW Farms LP Sub committees Associated boards Total Governance fees Short-Term kaimahi benefits for executive management team Total key management personnel compensation (b) O ther transactions with key management personnel or entities related to them Purchase of goods or services Sale of goods or services

Total

2020 $'000

2019 $'000

320 8 140 10 5 483 1,088 1,571

278

(9) (6)

90 10 5 391 980 1,371

(48) (8)

E23 Group entities The consolidated financial statements include the Parent Parininihi ki Waitotara Incorporation and the entities it controls, and Parininihi ki Waitotara Trust. Balances and transactions between entities within PKW are eliminated, and accounting policies are applied consistently within the Group. Nature of business Balance date PKW is comprised of the following material entities: PKW Farms LP PKW Trust Te Oranga Livestock Limited (removed 2 December 2019)

Equity holding 2020 2019 % %

Farming

30-Jun

100

Charitable

30-Jun

100

Livestock trading

30-Jun

100

PARININIHI KI WAITOTARA INCORPORATION - NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE FINANCIAL STATEMENTS)

PARININIHI KI WAITOTARA TRUST The Parininihi ki Waitotara Trust is aligned to the PKW Group strategy and is a key contributor to the wider kaupapa. The Trust has set down its 5 year strategy as follows: VISION Taranaki uri realising and succeeding while strengthening their connection to PKW and Taranaki MISSION Seeding Taranaki Potential Building Success STRATEGIC INTENT Collective Impact to achieve shared outcomes GOALS Leadership & Collaboration Developing Community Active Participation

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

Pariroa Pa whanau/ringawera at the 2019 PKW AGM

PARININIHI KI WAITOTARA TRUST

Poua ki runga Poua ki raro

Poua iho rā ki te Maunga Tītōhea E kore e pau te ika unahi nui Tihei Mauri Ora

TE PŪRONGO O TE POUWHAKARAE CHAIR'S REPORT DION TUUTA

Tēnā koutou e te whānau As Chair of the Parininihi ki Waitotara Trust Board, it is my honour to present the PKW Trust report for the financial year 2019/2020. This is my first report as Chair and I wish to begin by acknowledging Hinerangi Edwards who served on this Board for many years. Under her guidance as Chair, the Trust grew in scope and effectiveness, supporting many Taranaki Māori on their journey towards their aspirations. Her legacy is an impressive one, a good solid foundation on which to continue to build for the future benefit of our shareholders, uri and iwi. As the incoming Chair, it has been my job to take stock of where we are as a Trust and what the next steps need to be to continue the growth Hinerangi began.

GOVERNANCE REVIEW

As part of the Incorporation’s Governance Review, the Trust has undertaken its own review of our governance structure and arrived at a recommendation which will see the Trust Board reduce in size from eight to four. With a combination of independent trustees, committee of management members and shareholder representatives, this will give us the perspective and skill we need to be effective.

Our key focus for the year to come will be to continue our strategic intent to build partnerships with iwi and other Māori organisations and trusts to leverage our resources. We need to look beyond ourselves and find those who align with our values and our aspirations so we can work together to support more Taranaki Māori.

This support need not be limited to educational scholarships, either, with employment opportunities, community investments and initiatives and other possibilities all providing differing pathways towards success. With a philanthropic Taranaki collective strategy in action, we can work with our extended whānau to deliver ways of making a real difference in the lives of individuals, which then helps our communities and our society grow in capability to benefit us all. One of my personal highlights for the year was the launch of the PKW-Taranaki Iwi and the PKWTe Atiawa Iwi undergraduate joint scholarships – both fantastic examples of what can be achieved

through collaboration and a shared kaupapa. REVENUE

As ever, we are grateful to PKW Inc for their annual grant which enables us to make the distribution we do to help seed Taranaki potential. This year the Trust received $215k (18/19 $258k) in grants with interest revenue adding $147k (18/19 $156k) giving us a pool of $362k to distribute in the support of educational or cultural pursuits. This is reflective of the impact the COVID-19 pandemic has had on the Incorporation and, while the business is in a solid and robust position to face any further challenges the year may throw at us, we need to be mindful that these are tough times.

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

" As a Trust, we are determined that we make decisions that will make every dollar work for us and our whānau in delivering our goals of leadership and collaboration, developing community and active participation in the korero of our people."

As a Trust, we are determined that we make decisions that will make every dollar work for us and our whānau in delivering our goals of leadership and collaboration, developing community and active participation in the kōrero of our people. OPERATIONAL ACTIVITIES

This year 170 individuals received education grants which totalled $207k, with three marae grants worth a total of $21k and two community grants worth a total of $5k also being awarded.

Applications were of a very high standard and the Board continues to be gladdened and amazed by the pool of talent and potential we have in our communities. It is an honour that the Trust can go some

PKW shareholder whanau at the 2019 PKW AGM held at Pariroa Pa

" We have much to do beyond our current offerings, but it is your Trust’s belief that education is one of the key areas that we can best support whānau to grow opportunities to improve their lives."

way to help realise that potential.

We will be conducting a strategic review of the full range of grants and scholarships we currently award to ensure that we are meeting the most need while ensuring every pūtea is being put to the best use possible. Educational grants lie at the core of what we do and we will continue to support those who wish to achieve in this field, while working to see where else to direct our efforts. ACKNOWLEDGMENTS

We have farewelled Mitchell Ritai, our General Manager Shareholder Engagement, this year as he has moved on to take up a significant leadership role with the Parihaka Papakāinga Trust. We are grateful for the leadership and skills Mitchell brought to the Trust during his time with the PKW whānau. He has

been instrumental in advancing Trust activities and forging links with potential partners and stakeholders. We wish him well in his future endeavours and are pleased his skills will continue to contribute to the wider wellbeing of Parihaka and Taranaki whānui.

Left: PKW tamariki at 2019 PKW AGM. Right: Rere-No-A-Rangi Pope at a PKW Hui.

The year ahead holds exciting opportunities and challenges which we as a Board are keen to embrace as we continue to work to fulfil the ambitions and vision of both the Trust itself and those we support. I would like to thank my fellow Trustees for their diligent governance this year, the Incorporation for their support and our shareholders for their continued manaaki. Noho ora mai Dion Tuuta Chair

Bee Weston-Jacobson / Inaugural receipient of the PKW-Te Korowai o Ngāruahine Trust undergraduate scholarship

PARININIHI KI WAITOTARA TRUST - AT A GLANCE

AT A GLANCE

NO. OF GRANTS & SCHOLARSHIPS - 2020

INCOME FROM INVESTMENTS HELD

234 - 2019

153K- 2019

171

$ VALUE OF GRANTS & SCHOLARSHIPS

146K

SCHOLARSHIP / GRANT PARTNERS

233K

12 11 - 2019

$ VALUE OF INVESTMENTS HELD

TOTAL $ VALUE OF GRANT INCOME FROM PARTNERS

246K- 2019

$3.08M $3.07 - 2019

$215 K $228K- 2019

WHAKATIPURANGA NGĀ WHĀNAU WHĀNUI O TARANAKI

ADVANCING TARANAKI WHĀNAU ASPIRATIONS THROUGH PARTNERSHIP Creating opportunities and supporting the dreams of Taranaki Māori is the key focus for the PKW Trust, which not only distributes scholarships and grants funded by the PKW Group, but also facilitates partnerships with suppliers, business partners and other iwi and Māori entities in order to create funding availability and internships. The intention behind these partnerships is to give those who wish to gain educational qualifications or industry experience the opportunity to do so. By building the capability of individuals, we build the capability of the Māori community as a whole, benefiting future generations according to our kaupapa.

VICTORIA UNIVERSITY WELLINGTON 2 x co-funded scholarships valued at $5,000 per year are available each year to existing VUW postgraduate students. These scholarships are a result of the Taihona relationship between the Parininihi ki Waitotara Trust (the Trust) and Victoria University Wellington (VUW). Through this programme VUW has relationships with over 70 Māori and public sector partners including iwi, land trusts, consultancy businesses and government departments.

BALLANCE AGRI-NUTRIENTS 2 x undergraduate scholarships valued at $2,500 available to full time students enrolled in land science or business studies. Ballance is a NZ farmer-owned

co-operative that helps make farming more productive, profitable and sustainable. From a core business of manufacturing fertiliser, it has grown to offer a full range of nutrient-related products and services. These enable farmers to achieve productivity goals while leaving a minimal environmental footprint.

RAVENSDOWN 1 x undergraduate scholarship valued at $5,000 per year for a maximum of three years. The opportunity for an internship is also on offer. Applicants must align with PKW and Ravensdown business activities. Started by South Canterbury and Otago farmers in 1978 to avoid a fertiliser production monopoly, Ravensdown has expanded its product offerings to cover all elements of the food creation business in a way that reduces environmental impacts and optimises value from the land.

MARSH INSURANCE 1 x undergraduate scholarship valued at $2,500 and opportunity for internship. Studies must contribute to PKW's business activities. Marsh Insurance is a global leader in insurance broking and innovative risk management solutions. They help their customers quantify and manage risk and unlock new opportunities for growth. The first recipient of the PKWMarsh Scholarship, Tazmyn KateneAshford, is determined to lead the kōrero she feels is essential to find solutions to the issue of Māori overrepresentation within the criminal system. "At the moment, the assumption is that being Māori is where the problem lies, but I believe that Māori also hold the solution we just need to talk and hear the

stories so we know what needs to be done," she says. She is studying Psychology and Criminal Justice at Victoria University in Wellington, and says the scholarship made a big difference in enabling her to focus more fully on her work.

MERIDIAN ENERGY 1 x co-funded scholarship valued at $1,500 per year is open to all undergraduate students. Meridian is NZ's largest renewable energy generator, producing all its power from 100% renewable sources. It is also one of the country's largest power retailers.

NOVA ENERGY 1 x scholarship valued at $5,000 per year for a maximum of 3 years. Available for undergraduate students in technical or science-related fields. One of the newest power retailers in the New Zealand market, Nova offers electricity, natural gas, broadband internet services and landline telephone services. The company prides itself on its awardwinning customer services.

BNZ 1 x scholarship valued at $2,500 for undergraduates studying in the banking or finance related fields along with the opportunity for a summer internship. BNZ is one of New Zealand's big four banks and provides financial services across the retail, business and institutional banking sectors.

must be in at least their second year of tertiary study to qualify.

FARMLANDS 3 x scholarships valued at $2,500 each. Available for undergraduates undertaking full-time study. Studies must contribute to PKW and Farmlands business activities. New Zealand's largest farmerowned co-operative, formed with the intention of providing competition in the retail farm supply industry to reduce costs for small agribusinesses. Farmlands supplies products and services for all elements of the farming industry. The three recipients this year were Brendon Walker, who is pursuing a Bachelor of Social Work, Emma Hau, Bachelor of Midwifery and Bella O’Carroll-Nicholson, Bachelor of Architectural Studies. Wayne May, Farmlands Head of Business Development, says, “Helping students in this way not only builds capability within the Taranaki community but in the wider food and fibre industry.”

KPMG A paid summer internship opportunity for a PKW scholarship recipient in a relevant field of study. KPMG is a global network of professional firms providing audit, tax and business advisory services.

TE KOROWAI O NGĀRUAHINE TRUST 1 x co-funded scholarship valued at $2,500. For full-time undergraduate students whose studies align with PKW and Te Korowai o Ngāruahine Trust business activities. Students

The Trust is the mandated postsettlement governance entity for Ngāruahine Iwi.

TE KĀHUI O TARANAKI 1 x co-funded scholarship valued at $2,500. The scholarship aims to support Bachelor-level study in Environmental Planning or Resource Management studies. The Trust is the mandated postsettlement governance entity for Ngāruahine Iwi.

TE KOTAHITANGA O TE ATIAWA 1 x co-funded scholarship valued at $2,500.

CHARLES BAILEY SCHOLARSHIP 1 x scholarship valued at $7,500 per year for a maximum of 3 years. Postgraduate only. Studies must contribute to PKW business activities and recipient must be available to PKW throughout the term of the scholarship. Weaver and artist Bonita Bigham was the recipient of the Charles Bailey Scholarship in 2019 and is currently working towards a Master’s degree in Māori Visual Art from Massey University. She is studying the barriers Māori women face when considering moko kauae, both from society and from themselves. Bonita believes that when faced with tough times it’s critically important that Māori are in touch with their culture. “There cannot be a sense of wholeness without understanding who you are, where you come from and connecting to those people who got you here. We don’t just arrive; we are here because of them.”

The scholarship aims to support Bachelor-level study in Environmental Planning or Resource Management studies. The first recipient of this scholarship, Renee Hanrahan, has enrolled to study a Masters degree in Planning at Otago University. She developed an interest in the potential impact of the recent Resource Management reform and updated Freshwater policy while completing her Bachelor degree at Victoria University, Wellington, majoring in Māori Resource Management.

PKW POSTGRADUATE SCHOLARSHIPS

“There is such a need for Māori input into those areas,” she says. “I hope that my study enables me to part of what is likely to be a big scale review of that legislation, that I can be a connector between government and my iwi.”

UNDERGRADUATE SCHOLARSHIPS

3x scholarships valued at $5,000 per year for a maximum of 3 years. Studies must contribute to PKW business activities. Full or part time students. Each of the scholarships are named after Taranaki whānau who have made significant contributions to PKW: Edward Tamati, Mate ki Tawhiti Carr and Gloria Kerehoma.

5 x scholarships valued at $2,000 per year for a maximum of three years. Undergraduate only. Can study in any area. Full time students only.

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

NGĀ KAIWHIWHI TAUTOKO SCHOLARSHIPS AND GRANTS

Paula Anderson / 2020 Charles Bailey Scholarship recipient

Name Course of Study

Shareholder Endorsement

Value of Grant or Scholarship

Charles Bailey Postgraduate Scholar Paula Anderson Masters of Contemporary Education

Paula Anderson

$7,500

PKW-Victoria University Postgraduate Scholarship Martin King Master of Indigenous Studies Tamahina Sheridan Master of Indigenous Studies

Stephen Dennis King Mohi Apou

$5,000 $5,000

PKW-Nova Energy Undergraduate Scholarship Piata Hohaia BAppSc

Charles William Hohaia Whānau Trust

$5,000

Mate ki Tawhiti Carr Postgraduate Scholarship Teiarere Stephens Master of Science

Wirape Ruakere

$5,000

Gloria Kerehoma Postgraduate Scholarship Rahiri Makuini Edwards-Hammond Master of Indigenous Studies - MIndS

Raymond Edwards

$5,000

Edward Tamati Postgraduate Scholarship Nicola Niwa Masters of Educational Leadership

John Niwa

$5,000

PKW-Te Atiawa Undergraduate Scholarship Renee Hanrahan Bachelor of Arts

Moana Skelton

$2,500

PKW-Taranaki Iwi Undergraduate Scholarship Taylah King Bachelor of Arts

Stephen Dennis King

$2,500

PKW-Ngaruahine Undergraduate Scholarship Mariah Katene-Rawiri Bachelor of Social Work

Frances Kingi Katene

$2,500

PKW-Marsh Insurance Undergraduate Scholarship and Internship Raukura Doyle Bachelor of Health and Bachelor of

Betty Te Rautau Anderson

$2,500

PKW-Farmlands Undergraduate Scholarship Emma Hau Bachelor of Midwifery Brendon Walker Bachelor of Social Work Bella O'Carroll-Nicholson Bachelor of Architectural Studies

Kenneth Mark Hau Kaporangi Whana James O'Carroll

$2,500 $2,500 $2,500

PKW-BNZ Undergraduate Scholarship William Flanagan Bachelor of Laws – LLB

Pamela Jayne Parsons

$2,500

Marylinda Ngati Kerehoma Brooks

$2,500

Rex Bruce Langton

$2,500

Gary Ngaia Etahi Taputai-Geary Whānau Trust

$2,000 $2,000

Kenny Hau Te Rawanaki Coles JN & R Taiaroa Whānau Trust

$2,000 $2,000 $2,000

Marie Paki Paki

$1,500

PKW-Ballance Agri-Nutrients Undergraduate Scholarship Alison Brooks Conjoint Bachelor of Laws and Bachelor of Science Bree-Anna Langton Diploma of Māori Language Fluency PKW Undergraduate Scholarship Alexis Bright Thomas Cross Kenny Hau Kayla Hemara-Wahanui Tremayne Omeka Mcleod Ratana

Bachelor in Nursing Bachelor of Commerce (Agriculture and Professional Accounting) Medicine Bachelor of Nursing Bachelor of Applied Management

PKW-Meridian Energy Undergraduate Scholarship Samantha Paki Paki - Utiera Bachelor of Arts

PARININIHI KI WAITOTARA TRUST - SCHOLARSHIPS AND GRANTS

The following students have been awarded post graduate scholarships:

74 The following 167 students have been awarded a PKW Tertiary Grant:

Name Course of Study

Shareholder Endorsement

Value of Grant or Scholarship

Leana Barriball

Faculty of Science and Engineering PhD degree programme

Leana Barriball

$400

Nancy Lynette Bassett

Master of Arts

Nancy Bassett

$400

Teao Eiffe

Bachelor Of Nursing

Paul John Eiffe

$400

Sarahlee Hansen

Graduate Diploma

Aroha Woller

$400

Maraekura Horsfall

Post Graduate Diploma in Clinical Education

Tawhakirangi Lorna Tutahione Katene

$400

Kelly Jennings

Master of Educational Leadership

Retimana Tapuke Whānau Trust

$400

Kayin Katene Bachelor of Health, Sport and Human Performance

Winton Wiremu Katene

$400

Deanne King

Master of Science (Psychology with endorsement in Health Psychology)

Bernard King

$400

Jessica Kingi

Career Preparation for Health Sciences

Noel Tapi Kingi

$400

Ethan Langton

Engineering

Rex Bruce Langton

$400

William MacFater

BAchelor of Commerce

Sarah Williams MacFater

$400

Tyrese Mason

New Zealand Certificate in Construction Trade Skills - Carpentry

Toherangi Whānau Trust

$400

Jessie Mckenzie

Law and Bachelor of Arts

Shona Agnes Maxwell

$400

Aimee Morrell

New Zealand Certificate in Business (Administration and Technology) (Level 3)

Graeme Fairclough

$400

Geoffery Ngataierua

Certificate in Health and Wellbeing

Robert Ngataierua

$400

Leah Palmer

Bachelor of Health Science

Charles Pears Palmer

$400

Bayly Paterson

NZ Certificate in Engineering Fabrication

Cheryl Anne Hintz

$400

Anahera Preston

Full Time Reo Student

Matthew Preston

$400

Ngatupara Ritai

Bachelor of Business

Edward Rongomai Ira Tamati Whānau Trust $400

Riki Tapiki

French 101 Philosophy 106

Hinemana Wehi

$400

Erena Taylor

Graduate Diploma of Chartered Accounting

Christine Nicholas

$400

Shannon Thompson

Certificate of Horticulture

Ripai Tamihana

$400

Ariana Wanoa

Bachelor of Arts

Pauline Taiaroa

$400

Danielle Church

Bachelor of Arts

Takiari Jim Takiari

$400

Tama Mcguigan

Apprentice - Joinery/Kitchen Manufacture

Malcolm Mc Guigan

$400

Ruaputahanga Takiari-Taua

BHLTH

Takiari Jim Takiari

$400

Mike Taurerewa

Bachelor of Construction Management

Rauru Te Nga Ruru Whānau Trust

$400

Tatyana Glassie

Bachelor of Arts

Raewyn Kawana

$400

Wendy Eynon

Bachelor of Career Development

John Eynon

$400

Ellie Hurley-Langton

Sport and Exercise Science

James Langton

$400

Daniel Tauru

Certificate in Rongoa (Level 4)

Steven Paul Tauru

$400

Steve Tauru

Certificate in Te Reo Māori

Steve Paul Tauru

$400

Tamara Boon-Harris

Bachelor of Medical Laboratory Science

Paremako Kathleen Agar

$400

Payton Buchanan Hancock

Bachelor of Commerce

Te Urumairangi Ritai Whānau Trust

$400

Charlanne Te Awhe

Business and Administration

Dianne Carmel Luke

$400

Charlotte Webb

Bachelor of Laws and Bachelor of Arts

Margaret Ngamihi Webb

$400

Riley Davison

Bachelor of Biomedical Science

Christine - Ngawai Henare

$400

Joseph Ahie

Bachelor of Science

Ripo Tautahi Whānau Trust

$750

Jamaika Anderson

Bachelor of Arts

Betty Te Rautau Anderson

$750

Mereana Anderson

Bachelor of Designs

Paula Anderson

$750

Tiana Atkinson-Kingi

Tourism & Travel Diploma (Level 6)

Peter Moeahu

$750

Name Course of Study

Shareholder Endorsement

Value of Grant or Scholarship

Heather Atutahi

Bachelor of Community Health (majoring in Occupational Health and Safety)

Heather Atutahi

$750

Lyla Atutahi

Diploma in Conveyancing

Lyla Atutahi

$750

O'jay Bailey

Bachelor of Nursing

Michael Manukorihi Bailey Whānau Trust $750

Leila Blackburn

Bachelor of Applied Science - Medical Imaging Technology

Heemi Wiripo Ngaiwikatea Bailey Whānau Trust

$750

Roimata Blackburn

Bachelor in Applied Science, Medical Imaging Techniques (Radiography)

Heemi Wiripo Ngaiwikatea Bailey Whānau Trust

$750

Chyna-Li Bourne

Bachelor of Laws

Campbell Gin

$750

Ariana Cann

Bachelor of Radiation Therapy

Ken Tohia

$750

Brody Chapman

Master of Science (MSc)

Tina Chapman

$750

Drew Davey

Bachelor of Medicine and Bachelor of Surgery

Iwimaire Davey Whānau Trust

$750

Jacqueline Davis

Bachelor of Health Science (Nursing)

Richard Davis

$750

Rhys Dooney

Professional Masters in Engineering Geology

Heslop Whānau Trust

$750

Sara Dooney

Bachelor Of Engineering (Hons)

Heslop Whānau Trust

$750

Ella Duxfield

Master of Dietetics

Mary Hinepua Heremia Wakefield

$750

Daniel Fake Post-Graduate Masters in Veterinary Physiotherapy

Graham & Monica King Whānau Trust

$750

George FitzGerald

Bachelor of Commerce

Josie Bigham

$750

Liam Foster-Chard

Certificate in Welding (Level 4)

Lynne Amy Foster

$750

Taneal Jones

Bachelor of Commerce

Mulligan Whānau Trust

$750

Rehupo Kara

Bachelor of Arts

James Kara

$750

Asher Katene

Master of Arts, Postgraduate Diploma of Clinical Psychology

Nanci-Lee HInerakei Katene

$750

Makiya Katene

Bachelor of Arts

Winton Katene

$750

Tazmyn Katene-Ashford

BA Psychology and Criminology

Nanci-Lee Katene

$750

Ashleigh Kauika

Bachelor of Nursing

Joseph Kauika

$750

Holly Kauika

New Zealand Certificate in Study and Career Preparation (Level 3)

Joseph Kauika

$750

Shaina Kauika

Heke Kaitiakitanga Putaiao

Joseph Kauika

$750

Aotahi Keepa

Bachelor of Science

Lillibet Taturang Balle

$750

Pounamu Keepa

Health Sciences First Year (BSc)

Lillibet Taturang Balle

$750

Caliah Kira

Bachelor of Arts

ATG Abraham Whānau Trust

$750

Thornton Lanauze-King

Bachelor of Communications

Celestine Lanauze

$750

Kimberley Lewis

Bachelor of Medicine and Bachelor of Surgery

Beverley Anne Robinson

$750

Sam Lock

Bachelor of Science

Jarrad Martin

$750

Nicole Loper

Bachelor of Medicine and Surgery

Clesta Loper

$750

Tewaiwhenua Maha

Bachelor of Arts

Doreen Ketia Maha

$750

Georgina Manaia

Nga Poutoko Whakarara Oranga Bachelor of Bicultural Social Work

Pandra Reihana

$750

Adrian Manukonga

Diploma in Culinary Arts (Level 5)

Tinitea Raikao Whānau Trust

$750

Ashley Mason

Bachelor of Oral Health

Marylinda Brooks

$750

Tom Mckenzie

Bachelor of Science

Shona Maxwell

$750

Atiliai Meleisea Bachelor of Arts

Lorna Tawhakirangi Tuhia Tutahione Katene

$750

Logan Murray

Bachelor of Medicine and Bachelor of Surgery

Ani Teinati Murray

$750

Chiquita Ngeru

Bachelor of Nursing

Edward Ngeru

$750

PARININIHI KI WAITOTARA TRUST - CHAIR'S REPORT

Name Course of Study

Shareholder Endorsement

Value of Grant or Scholarship

Mattie O'Carroll

Te Tohu Paetahi Ako

Te Ihorangi and Rangikata Whānau Trust $750

Taine Paki

Landscape Architecture

Ihaka Robinson

$750

Matangirei Paranihi

Bachelor of Nursing

Buster Parry

$750

Trevarn Parata

Bachelor of Business

Elliot Mauriri

$750

Makuini Paulger

Conjoint Bachelor of Laws an Bachelor of Arts

Donna Paulger

$750

Tuheitia Pihama Postgraduate Diploma in Education

Henry & Titi Huia Cunningham Whānau Trust

$750

Jordan Quinnell

Postgraduate Diploma in Māori Visual Arts

Sina James Whānau Trust

$750

Kylie Rei

New Zealand Diploma Digital Media and Design Spencer Rei

$750

Kini Serubasaga

Bachelor of nursing

Lucille Gawler

$750

Te Kahurangi Skelton

Bachelor of Science

Moana Skelton

$750

Madelyne Slater-Carter

Bachelor of Medicine and Bachelor of Surgery (MBChb)

Christine Matheison-Picken

$750

Maia Speechlay

BA/LLB- Bachelor of Law and Arts Conjoint

Estate of Merilyn Jean Speechlay

$750

Natalia Speechlay

Bachelor of Teaching in Primary

Estate of Merilyn Jean Speechlay

$750

Alexandra Tahau Bcom

Reiwyn Kaneihana Davey (Hohaia) Whānau Trust

$750

Kim Tamaka

Poutuarongo Reo Māori

Maisie Tamaka

$750

Lisa Tamati

Nga Poutoko Whakarara Oranga - Bachelor of Bicultral Social Work

Lisa Piki Waiora Tamati

$750

Paora Tamati

Nga Poutoko Whakarara Oranga - Bachelor of Bi-cultural Social Work

Lisa Piki Waiora Tamati

$750

Te Aroha Taylor Bachelor of Nursing - Health Sciences

Heketa Utiku Teira and Kui Te Atamira White Whānau Trust

$750

Adriana Thomas

Bachelor of Teaching in Primary

Evelyn Te Ringakaha Pullen Whānau Trust $750

Paretao Tipoki-Hansen

Bachelor of Health Sciences

John Hooker

$750

Daysha Tonumaipe'a

Doctor of Philosophy (PhD)

Gareth Tamihana Jones

$750

Zachary Tuuta

Bachelor of Health Science (Nursing)

JamieTuuta

$750

Abbey Urwin

Bachelor of Medicine and Bachelor of Surgery

Raymonde Pikitu Cowell

$750

Teresa Wakefield

Bachelor of Nursing

Teresa Anne Marama Wakefield

$750

Maia Wharewera-Ballard

Masters of Fine Arts

Sheryl TePiu Kira-Wharewera

$750

Bailey Williams

Masters of Science (Thesis)

Wiremu Whānau Trust

$750

Sheena Williams

Bachelor of Teaching in Early Childhood

Peter Jackson

$750

Takarangi Williams

Apprentice - Electrician

Koroniria Okeroa

$750

Selena Williams-Paap

Psychology

Ken Kauika

$750

Taine Win

Master of Science

Malcolm Win

$750

Tatiana Witika

New Zealand Diploma in Radio Broadcasting (Level 5) - Iwi

Daisy Noble

$750

Johan Kahui-Mauriri

Toi paematua: Diploma in Māori and indigenous art (Level 5) / whakairo

Johan Meka Dane Clayton Kahui-Mauriri $750

Bobby Luke

Ph.D Doctoral Degree in Creative Technologies Robert Campbell

$750

Taylor Mildenhall

Bachelor Of Nursing

Lynne Amy Foster

$750

Teremoana Porter-Rawiri

Bachelor of Science

Belle Pereni Tupe

$750

Etelini Rose Roberts

Bachelor of Biomedical Science

James Rollo Berry

$750

Annie Tupaea

Bachelor of Applied Counselling

Toherangi Whānau Trust

$750

Jessie Urwin

Bachelor of Medicine and Bachelor of Surgery

Raymonde Pikitli Cowell

$750

Phillippa Duncan

Nursing Health and Wellbeing

Marion Hinerangi Beech

$750

Name Course of Study

Shareholder Endorsement

Value of Grant or Scholarship

Macy Duxfield

Bachelor of Laws and Bachelor of Arts

Tirita Tawhake Tamou Whānau Trust

$750

Te Wainuiarua Poa

Bachelor of Arts and Bachelor of Laws (LLBA)

Wiremu Whānau Trust

$750

Jessica Speechlay

Heke Kawa Oranga

Estate of Merilyn Jean Speechlay

$750

Courtney Sullivan

MB ChB

Michael Sullivan

$750

Quinessa Sullivan

Graduate Diploma in Teaching (Primary)

Mereana Taylor

$750

Neave Burgess

Bachelor of Science

John Niwa

$750

Rakaiao Nuri

Bachelor of Laws

Po Pue and Ana Taura Pue Whānau Trust $750

Aliesha Thomson-Baker

Bachelor of Medicine and Bachelor of Surgery

Paula Francis Niwa

$750

Taina Tumahai

Bachelor of Humanities

Ngawai Walden

$750

Marino Doyle

Bachelor of Engineering with honours

Betty Te Rautau Anderson

$750

Kandi Hoeta

Maunga Kura Toi - (Level 7) Raranga

Charmaine Hoeta

$750

Noah Kemp

Bachelor of Laws (LLB) and Bachelor of Arts (BA) Jan Hariata Bezems

$750

Paora Laurence

Heke Reo 2020

Taranaki Māori Trust Board

$750

Joshua Nicholson

Bachelor of Medicine and Bachelor of Surgery

Claire Rosalind Nicholson

$750

Carlin Shaw

Masters in Māori Education

Carlin Shaw

$750

Wai Skerrett

Master of Arts Media Studies

Raewyn Skerrett

$750

Aaliyah Thocolich

Bachelor of Physiotherapy

Irene Thocolich

$750

Bryda Chamberlain

LLB and Bachelor of Commerce Conjoint

Rosalie Rangi

$750

Jesse Chittenden-O'Leary

Bachelor of Design Innovation

Te Urumairangi Ritai Whānau Trust

$750

Carolyn Hopa

He Waka Hiringa - Masters in Applied Indigenous Knowledge

George Cecil Hopa

$750

Reuben Katene

Bachelor of Dental Surgery

Josie Bigham

$750

Lena Kemp

Bachelor Of Health Sciences: Honours

Jan Bezems

$750

Tuarua Manaia

Bachelor of Health Science

Marietta Manaia

$750

Dillon Manuirirangi

Rumaki Reo

Tongawhiti Manu

$750

Grace Matenga

Bachelor of Health Science

Ruhi (Lucy) Wetere Rata

$750

Joshua Solomon

Bachelor of Medicine and Bachelor of Surgery

Josie Bigham

$750

Karamea Watene-Taurerewa

Bachelor of Arts

Phyllis May Watene Trust

$750

Madison Waller

LLB & BMS

Rocky (Ronald) Hudson

$750

Shana Edlin

Bachelor of Business

Kathleen Ormsby Williams

$750

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

PKW shareholder whanau at 2019 PKW AGM at Pariroa Pa

PARININIHI KI WAITOTARA TRUST NGA TAUĀKĪ PŪTEA FINANCIAL STATEMENTS for the year ended 30 June 2020

KUPU WHAKATAKI INTRODUCTION

This performance report has been presented in a style that attempts to make the performance report less complex and more relevant to beneficiaries and other stakeholders. We have grouped the performance report into the following sections:

Te Ānga (Basis of preparation)

Te pūrongo whiwhinga, whakapaunga (Our performance)

Haupū rawa (Our capital)

Ngā korero whakatapiri (Other disclosures)

Each section sets out the accounting policies applied in producing the relevant statements and notes. The intent is to provide readers with a clearer understanding of PKW Trust's performance and financial position. Keeping it simple Notes to the performance report provide information required by accounting standards or legislation to explain a particular feature of the financial statements. The notes that follow also provide explanations and additional disclosures to help readers' understanding and interpretation of the performance report. We have used icons and colour throughout to signal and direct readers to the additional disclosures, and to connect the financial information back to our core values presented in Te Ara Putanga.

Explains the main purpose of the section Links the primary performance report to the detailed breakdown in the Notes to the performance report Explains the accounting policy applied in the disclosure note Reflects the link the asset or investment has to Te Ara Putanga based on the core value it contributes to the most, indicated by the pou being highlighted white

PARININIHI KI WAITOTARA

20 20

TRUST

WHĀINGA KUA TŪTUKI RĀNEI (Performance Report) for the year ended 30 June 2020

He pārongo kōrero (Trust information)

Te tauākī koronga mō ngā mahi kia tutuki (Statement of Service Performance)

TE TAUĀKĪ PŪTEA POUMATUA PRIMARY FINANCIAL STATEMENTS Te tauākī whiwhinga, whakapaunga whānui (Statement of financial performance)

Te Ānga

T e Ānga (Basis of preparation)

Te tauākī tūnga pūtea (Statement of financial position)

Te pūrongo whiwhinga, whakapaunga

1 Revenue 2 Expenses

Te tauākī kapewhiti (Statement of cash flows)

Haupū rawa

3 Accumulated funds

Ngā korero whakatapiri

4 Related party transactions Trustees of Parininihi ki Waitotara Trust

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

Te Pūrongo a ngā Kaiarotake (Independent Auditor’s Report) E ngā kaiwhiwihi takuhe o Te Tarati o Parininihi ki Waitotara (To the Beneficiaries of Parininihi ki Waitotara Trust) Te arotake o te pūrongo nanahu (Report on the audit of the performance report)

Arotake (Opinion) In our opinion, the accompanying performance report of Parininihi ki Waitotara Trust (the ’Trust’) on pages 84 to 92: i.

Present fairly in all material respects the Trust’s financial position as at 30 June 2020 and its financial performance and cash flows for the year ended on that date;

ii.

Comply with PBE Simple Format Reporting Standard - Accrual (Not For Profit); and

iii.

Suitably report the outcomes and outputs, and quantifies the outputs to the extent practicable, in the statement of service performance.

We have audited the accompanying performance report which comprise:

—

Te tauākī tūnga pūtea (statement of financial position) as at 30 June 2020;

—

Te tauākī whiwhinga, whakapaunga whānui (statement of financial performance) and te tauākĪ kapewhiti (statement of cash flows) for the year then ended;

—

Notes, including a summary of significant accounting policies and other explanatory information; and

—

He pārongo kōrero mō PKW trust (trust information) and te tauāki koronga mō ngā mahi kia tutuki (statement of service performance) on pages 91 to 85. 92. 84 to

Te tūāpapa o te arotake (Basis for opinion) We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’), and the audit of information PBE FRS 48 requires to be included in the statement of service performance, in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information ('(ISAE (NZ) 3000'). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We are independent of the Trust in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. Our responsibilities under ISAs (NZ) and ISAE (NZ) 3000 are further described in the auditor’s responsibilities for the audit of the performance report section of our report. Other than in our capacity as auditor we have no relationship with, or interests in, the Trust.

Te whakamahinga o tēnei arotake (Use of this independent auditor’s report) This independent auditor’s report is made solely to the Beneficiaries as a body. Our audit work has been undertaken so that we might state to the Beneficiaries those matters we are required to state to them in the independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Beneficiaries as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed.

Ngā haepapa o ngā Taratī (Responsibilities of the Trustees for the performance report) The Trustees, on behalf of the Trust, are responsible for:

—

The preparation and fair presentation of the performance report in accordance with generally accepted accounting practice in New Zealand (being PBE Simple Format Reporting Standard - Accrual (Not For Profit));

—

Implementing necessary internal control to enable the preparation of a performance report that is fairly presented and free from material misstatement, whether due to fraud or error;

—

The preparation of a statement of service performance that complies with the requirements of PBE FRS 48; and

—

Ngā haepapa o ngā Kaiarotake (Auditor’s responsibilities for the audit of the performance report) Our objective is:

—

To obtain reasonable assurance about whether the performance report as a whole is free from material misstatement, whether due to fraud or error;

—

Perform procedures to determine whether the service performance information required by PBE FRS 48 has been suitably reported in the statement of service performance; and

—

To issue an independent auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee, that an audit conducted in accordance with ISAs NZ will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this performance report. A further description of our responsibilities for the audit of this performance report is located at the External Reporting Board (XRB) website at: http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/

This description forms part of our independent auditor’s report.

KPMG Tauranga 7 September 2020

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

Parininihi ki Waitotara Trust HE PĀRONGO KŌRERO (TRUST INFORMATION) FOR THE YEAR ENDED 30 JUNE 2020

Entity's Purpose or Mission: The charitable objects of the Parininihi ki Waitotara Trust (PKW Trust) is to support the educational and cultural purposes of Taranaki Māori, as endorsed by the shareholders of Parininihi ki Waitotara Incorporation (PKW). PKW Trust supports the aspirations of Taranaki Māori through the provision of an annual programme of educational and cultural grants and advances its charitable objects through projects and activities that deliver on the following strategies: VISION

Taranaki uri realising and succeeding while strengthening their connection to PKW Trust and Taranaki MISSION Seeding Taranaki potential – building success STRATEGIC INTENT Collective impact to achieve shared outcomes GOALS - Leadership and collaboration - Developing community - Active participation

Legal Name of Entity: Parininihi ki Waitotara Trust Type of Entity and Legal Basis (if any): Charitable Trust Registration Number: CC36303 Entity Structure: Governance: As set out in the Trust Deed, PKW Trust is governed by the elected members of the Committee of Management of PKW, plus an additional representative elected by shareholders. Main Sources of the Entity's Cash and Resources: PKW make an annual grant calculated on 10% of the dividend paid to Shareholders. PKW Trust also draws interest from a $2.9m loan to PKW. Additional grant revenue is sourced from third parties. Main Methods Used by the Entity to Raise Funds: PKW Trust is not an active fund raiser. Entity's Reliance on Volunteers and Donated Goods or Services: PKW Trust is reliant on in-kind services.

Physical Address: 35 Leach Street New Plymouth, New Zealand

Postal Address: PO Box 241, New Plymouth 4340, New Zealand Phone: +64 (06) 769 9373 Fax: +64 (06) 757 4206

Email: office@pkw.co.nz Web: www.pkw.co.nz

Facebook: www.facebook.com/ Parininihi-ki-Waitotara-Incorporation377456922465330/?ref=page_ internal

TE TAUĀKĪ KORONGA MŌ NGĀ MAHI KIA TUTUKI (STATEMENT OF SERVICE PERFORMANCE) FOR THE YEAR ENDED 30 JUNE 2020 Description of PKW Trust's outcomes Established in 1983 the purpose of PKW Trust as per the deed, is to support the education and cultural aspirations of Taranaki Māori. This is reinforced by PKW Trust's vision, mission and strategic intentions and goals. Description of quantification of PKW Trust's outputs

Output - active participation Distribute PKW Trust's grant programme to Taranaki Māori as part of building capacity and supporting cultural aspirations. Increasing participation by the number of:

- Education grant recipients - Marae grant recipients - Prior year marae grant withdrawn - Community grant recipients Total grant investment

Actual no. This Year

$'000

Budget no. This Year

$'000

Actual no. Last Year

$'000

170 3 2 175

207 21 5 233

171 1 2 174

260 22 20 302

230 1 (1) 4 234

228 5 (5) 18 246

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

TE TAUĀKĪ WHIWHINGA, WHAKAPAUNGA WHĀNUI (STATEMENT OF FINANCIAL PERFORMANCE) FOR THE YEAR ENDED 30 JUNE 2020

This section summarises what PKW Trust earned (revenue), what PKW Trust spent (expenditure) and how much revenue was left after expenses (surplus) for the year. Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the performance report)

Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

B1 B1

215 147 362

289 158 447

258 156 414

B2 B2 B2

86 233 10 329 33

75 302 70 447 -

73 246 48 367 47

Notes Revenue Grants Interest Total revenue Expenses Kaimahi expenses Grants and scholarships made Other expenses Total expenses Surplus for the year

TE TAUĀKĪ TŪNGA PŪTEA (STATEMENT OF FINANCIAL POSITION) AS AT 30 JUNE 2020

This section details what PKW Trust own (assets), what PKW Trust owe (liabilities) and the surpluses held as capital by the beneficiaries (accumulated funds) at the end of the financial year. Further details can be found in Ngā whakamārama mō ngā tauākī pūtea (Notes to the performance report)

ASSETS Current assets Bank accounts Accounts receivable Related party receivable Total current assets Non-current assets Property, plant and equipment Related party receivable

Total non-current assets

Total assets LIABILITIES Current liabilities Accounts payable Grants approved but unpaid Total current liabilities Total liabilities Total assets less total liabilities (net assets) ACCUMULATED FUNDS Accumulated surpluses Reserves Total accumulated funds

Notes

C3 C3

Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

147 10 1,551 1,708

19 1,602 1,621

77 40 1,545 1,662

2 1,524 1,526 3,234

2 1,524 1,526 3,147

3 1,524 1,527 3,189

9 21 30 30 3,204

12 12 12 3,135

9 9 18 18 3,171

1,921 1,283 3,204

1,852 1,283 3,135

1,888 1,283 3,171

For and on behalf of the Trustees these financial statements are authorised for issue on 7 September 2020.

DION TUUTA Chair

7 September 2020

TAARINGAROA NICHOLAS

Chair Audit and Risk Committee 7 September 2020

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

TE TAUĀKĪ KAPEWHITI (STATEMENT OF CASH FLOWS) FOR THE YEAR ENDED 30 JUNE 2020

This section details PKW Trust's cash, cash receipts (what cash came in) and cash payments (what cash went out). Actual This Year $'000

Budget This Year $'000

Actual Last Year $'000

Cash was applied to: Payments to suppliers Grants & scholarships paid Kaimahi payments Total cash applied Net cash flows from operating activities

232 153 385

226 158 384

210 165 375

17 212 86 315 70

56 302 83 441 (57)

42 257 81 380 (5)

Net increase / (decrease) in cash Opening cash Closing cash

70 77 147

(57) 76 19

(5) 82 77

This is represented by: Bank accounts and cash

147

Cash flows from operating activities Cash was received from: Grant receipts Interest receipts

Total cash received

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE PERFORMANCE REPORT) FOR THE YEAR ENDED 30 JUNE 2020

This section sets out the legislation and accounting standards that apply to PKW Trust, and significant items that relate to the performance report as a whole. The notes also provide explanations and additional disclosure to assist readers' understanding and interpretation of the performance report.

TE ĀNGA

(BASIS OF PREPARATION)

PKW Trust's performance report is prepared: • In accordance with PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-ForProfit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000 • On an accrual basis of accounting • Under the assumption it will continue to operate in the foreseeable future • Inclusive of GST Revenue tax PKW Trust is a registered Charitable Trust and is exempt from New Zealand revenue tax, and has complied with all statutory conditions. Changes in accounting policies There have been no changes in accounting policies during the financial year.

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE PERFORMANCE REPORT) FOR THE YEAR ENDED 30 JUNE 2020

TE PŪRONGO WHIWHINGA, WHAKAPAUNGA

(OUR PERFORMANCE)

This section focuses on the results and performance of PKW Trust. On the following pages you will find notes explaining PKW Trust's results for the year.

B1: Revenue

Revenue Item Grant revenue Total grant revenue Interest revenue

Total interest revenue

Analysis Grant revenue - PKW Incorporation Grant revenue - third parties Interest revenue - PKW Incorporation Interest revenue - bank

This Year $'000

Last Year $'000

185 30 215

173 85 258

146 1 147

153 3 156

Grant revenue is accounted for depending on whether or not any conditions are attached. Where no conditions are attached, the revenue is recognised on an accruals basis. Where conditions are attached, the revenue is recognised once the conditions are satisfied. Interest revenue is recognised on an accruals basis.

B2: Expenses

Expense Item Kaimahi expenses Total kaimahi expenses Grants and scholarships made Total grants and scholarships made Other expenses Total other expenses

Analysis Kaimahi benefits Trustee fees

Grants - education Grants - marae Grants - community Depreciation Other admin expenses Consultancy

This Year $'000

Last Year $'000

8 86 207 21 5 233 1 8 1 10

8 81 228 18 246 3 7 30 40

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE PERFORMANCE REPORT) FOR THE YEAR ENDED 30 JUNE 2020

HAUPŪ RAWA (OUR CAPITAL)

This section explains what makes up the accumulated funds of PKW Trust.

C3: Accumulated Funds

This Year Opening Balance Surplus Closing Balance Last Year Opening Balance Surplus Closing Balance

Accumulated Surpluses

Reserves

Total

1,888 33 1,921

1,283 1,283

3,171 33 3,204

1,841 47 1,888

1,283 1,283

3,124 47 3,171

(a) Accumulated surpluses Accumulated net surpluses since the establishment of PKW Trust. (b) Reserves The initial and subsequent PKW Incorporation unclaimed dividends allocation to PKW Trust.

PARININIHI KI WAITOTARA TRUST - WHAINGA KUA TUTUIKI RANEI (PERFORMANCE REPORT)

NGĀ WHAKAMĀRAMA MŌ NGĀ TAUĀKĪ PŪTEA (NOTES TO THE PERFORMANCE REPORT) FOR THE YEAR ENDED 30 JUNE 2020

NGĀ KORERO WHAKATAPIRI (OTHER DISCLOSURES)

This section outlines transactions with related parties of PKW Trust. A related party is entities or people that have significant influence over PKW Trust.

E4: Related Party Transactions

During the year PKW Trust received funds from, and invested with, its parent entity PKW Incorporation as follows: Interest revenue Grant revenue The amounts outstanding with PKW Incorporation at balance date were: Loan to PKW Incorporation Advance to PKW Incorporation Accounts receivable

This Year $'000

Last Year $'000

Value of Transactions

147 185 332

153 173 326

1,365

1,371

1,524

0 6

0 8

This Year $'000

Last Year $'000

Amount Amount Outstanding Outstanding

185 3,074

174 3,069

Interest is receivable at the average group rate of 5.15% (2019: 5.28%). Related party receivables includes receivables which are stated at their estimated net realisable value. Loans are based on the balance of transactions costs, and are included in the current assets if they are repayable on demand. Trustees of PKW Trust Dion Tuuta (Chair) Hinerangi Edwards (Chair, ended 9 November 2019) William Edwards (commenced 9 November 2019) Beverley Gibson David MacLeod Taaringaroa Nicholas Claire Nicholson Hinerangi Raumati Darryn Ratana (Shareholder Representative) The above Trustees are on the PKW Committee of Management, except Darryn Ratana.

CLAIRE NICHOLSON

Elected Chair, Committee of Management of PKW Incorporation in 2011. Chair PKW Farms General Partner Ltd (until end December 2019), member of Human Resources Committee and PKW Trust.

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

ENTITY POSITION Watercare Services Ltd Director Te Kiwai a Maui o Ngāruahine Ltd Director Aotearoa Fisheries Ltd Director Nga Miro Trust Chairman Port Nicholson Fisheries Director General Partner Ltd Taranaki Iwi Holdings Management Director Limited Koura Inc General Partner Ltd Director Venture Taranaki Director Nga Kai Tutoko Limited & Te Pou Chair Herenga Pakihii LP Te Kiwai Maui Ltd Chair Tainui Group Holdings Limited Director Sealord Limited Director Te Kāhui o Taranaki Iwi

Member

Kawe Tairanga

Independent

Audit & Risk Committee

Member

BEVERLEY GIBSON Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), Chair Human Resources Committee and member of PKW Trust. ENTITY POSITION Quality Visions Ltd Managing Director Mahia Mai a Whai Tara Trust Chairman Lantern House Trust Independent Trustee Tamariki Pakari Child Youth Trustee & Wellbeing WITT Subsidiary Board Director (Deputy Chair)

ENTITY POSITION Sirona Animal Health Ltd Shareholder / Director EOS Consulting Ltd Director Techion Shareholder Edison Consulting Group Ltd Shareholder O'Brien Group Holdings Ltd Director / Shareholder Rockit Apples No. 2

Shareholder

Precision Antimicrobials

Member

Rawhiti Orchard

Otago University Advisory Board Manuka Bioscience Limited Carr's Supplements NZ

Shareholder

Investor Director

DAVID MACLEOD Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), member of Audit and Risk Committee and PKW Trust. ENTITY POSITION AJ Greaves Electrical Ltd Owner/Managing Director Taranaki Regional Council Chairman LGNZ - Regional Affairs Committee Member Port Taranaki Ltd Director Predator Free 2050 Ltd Director Next Generation Gynomic

Director

Māori Economic Development

Board Member

Selection (LIC)

Advisory Board

Mana Rangatira Governance Group Member (Bio-Heritage National Science Challenge)

Integrated Farm Planning (National Board)

Committee Member

Freshwater Implementation Group Co-Chair

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - REGISTER OF INTERESTS OF BOARD MEMBERS AND CEO

DION TUUTA

TAARINGAROA NICHOLAS

Committee of Management of PKW Incorporation, Director PKW Farms General Partner Ltd (until end December 2019), member of Audit and Risk Committee and PKW Trust Chair.

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

ENTITY POSITION Tuuta Waetford Tapui Ltd Director Koura Inc General Partner Limited Director / Chair Port Nicholson Fisheries General Director / Chair Partner Ltd Seafood New Zealand Ltd Director / Shareholder Te Ohu Kaimoana CEO Te Ohu Kaimona Custodian Ltd Director TSB Bank Ltd Director

MARK BRIDGES Independent Director of PKW Farms General Partner Ltd. ENTITY POSITION Southern Pastures Ltd Associate Director Bridges Consultancy Director & Project Management Ltd Bridges Family Trust Trustee BMW Farms Partnership Partner (via Bridges Family Trust) Pohara Farms Ltd Director RJ Nominees Ltd Director Whatalotta Heifers Ltd Farm Advisor

RICHARD KROGH Appointed Chair of PKW Farms General Partner Ltd (from January 2019), Independent Director and member of Audit and Risk Committee. ENTITY POSITION Energia Ltd Director Port Taranaki Ltd Chair Top Energy Ltd Director & Deputy Chair Ngawha Generation Ltd Director First Gas Topco Ltd and Director & Deputy Subsidiaries Chair Gas Services New Zealand Ltd Director & Deputy Chair and Subsidiaries Ngawha Spa Ltd Chair

ENTITY POSITION Ngati Ruanui Holdings Director Corporation Ltd Ngati Ruanui Holdings Operating Director Company Ltd Southern Pastures (NZ) Ltd Director Southern Pastures Founders Ltd Director/Shareholder Southern Pastures Director/Shareholder Management Ltd Te Waharoa Investments Ltd Director Matariki Capital Partners Ltd Director Waikato-Tainui Group Investment Member Committee Rangitane Tu Mai Ra Ltd Director Te Kiwai Maui Ltd Director Oriens Capital GP Ltd Director Miro LP Limited Partner Rockit Orchards LP 1 Ltd Partner Te Whai Ao Ltd

Director

Iwi Commercial Property GP Ltd

Director

Tai Hekenga GP Ltd

Pohutukawa V Fund

Tukairangi Investments Ltd

Director Investor Director

WARWICK TAUWHARE-GEORGE Chief Executive Officer of PKW Group ENTITY POSITION Tauwhare George Family Trust Beneficiary Port Nicholson Fisheries General Director Partner Ltd Koura Inc General Partner Limited Director Ngai Tahu Farms Limited Director Ngāmotu Hotels

Chair

HE TANGATA PARININIHI KI WAITOTARA INCORPORATION - REGISTER OF INTERESTS OF BOARD MEMBERS AND CEO

WILLIAM EDWARDS Committee of Management of PKW Incorporation, member of Human Resources Committee and member of PKW Trust. ENTITY POSITION Ageing Well National Science Chair Challenge Health Research Council of Member New Zealand, Māori Health Committee MOMWD Trustee Ltd Director Ngāti Tupaia Hapū Incorporated Trustee R & R Edwards Whanau Trust Ltd Director Tangahoe Tribal Trust Trustee Taranaki Futures Trust Trustee Taumata Associates Director Te Kupenga Mātauranga o Trustee & Co-Chair Taranaki Trust Te Mana Ririki Trust First Named Investigator Te Reo o Taranaki Trust Board Member Tui Ora Limited Director University of Auckland, Advisory Advisory Group Group ‘Cost of doing Nothing’ Member Named Investigator Waikato University Research Community Project Researcher Taranaki Interim Skills Co-Chair Leadership Group Ara Ake Ltd

GOVERNANCE ATTENDANCES

GOVERNANCE

Hinerangi Raumati Beverley Gibson Claire Nicholson Darryn Ratana David MacLeod Dion Tuuta Mark Bridges Richard Krogh Taaringaroa Nicholas William Edwards

PKW Incorporation

Attended

8 8 7 6 8 7 5

Audit and Risk HR Committee Committee

Possible

Attended

Possible

8 8 8 8 8 8 5

4 3 4 4 5 5 -

5 5 5 5 5 5 -

Attended

4 4 1

Possible

4 4 2

PKW Farms General Partner Ltd Attended

7 4 8 7 -

Possible

8 4 8 8 -

PKW Trust Member

Attended

6 6 5 6 6 6 6 2

Possible

6 6 6 6 6 6 6 2

NOTE: PKW Incorporation and PKW Farms GP Ltd meetings are held on the same day. PKW Farms General Partner Ltd's structure and Board membership was updated effective as of January 2019

PARININIHI KI WAITOTARA INCORPORATION 35 Leach Street

New Plymouth | New Zealand

PO Box 241 | New Plymouth 4340