Pupuke te Hihiri Whai Rawa Strategy

TE TOI O NGĀ RANGI PUPUKE TE HIHIRI WHAI RAWA STRATEGY 2022 - 2027 SUMMARY DOCUMENT

Whai Rawa, Impact Investments - What is it?

Te Korowai Group has a responsibility to grow Treaty Settlement assets for the benefit of ngā uri o Ngāruahine.

To this end, impact investments must demonstrate a social, cultural, environmental and economic benefit for Ngāruahine.

Whai Rawa and Whai Hua are often used interchangeably to reflect positive outcomes. In the Pupuke te Hihiri Strategy, these terms are used to form the two outcome categories to describe; social, cultural and environmental returns, and economic returns respectively. Whai Rawa is used in this strategy to describe impact investments mahi generally.

Outcomes Te Toi o Ngā Rangi

Aronga | Purpose

Whai Hua Social, cultural and environmental returns

Strategic Drivers

Strategic Alignment

The overall strategic drivers regarding impact investments within our current suite of Te Korowai Group strategies are:

This diagram summarises the suite of strategies that inform and complement Pupuke te Hihiri:

The purpose of this strategy is to guide Te Korowai Group into investments that will provide a social, cultural, environmental as well as, economic return for the benefit of Ngāruahine. Pupuke Te Hihiri is aligned to our overarching strategy Ka Ora Taku Toa and is complimented by a suite of strategies that are essential for guiding our core work, intentionally creating the greatest impact and measurable value for our people.

Whai Rawa Economic returns

Ka Ora Taku Toa Ka Ora Taku Toa Te Korowai Group Strategy 2021-26

2021-26 Strategy Ngā Mātāpono Values / Pou Strategic Priorities

Pupuke Te Hihiri

Te Ara Toiroa Ngāruahine Procurement Strategy

The phrase Pupuke te Hihiri is from the karakia Matua te Kore and refers to a surge of energy that leads to the awakening of thought and knowledge. In the context of our overarching strategy, Ka Ora Taku Toa, is to recognise potentiality and its materialisation for Ngāruahine under our Te Kawa Whanakeora strategic pou.

Te Kawa Whanakeora Pou

Te Ūkaipō Strategy Te Rautaki Matauraura

Te Ara Toiroa: Ngāruahine Procurement Strategy

Pupuke te Hihiri: Whai Rawa Strategy

2021-26 Rangatahi Strategy

TE KEOKEOTANGA

ASSET CATEGORIES

Under Pupuke te Hihiri, there are a range of Whai Rawa asset types.

Measuring Value Unless we change the way we measure value and benefits to our Iwi, there will be no incentive to change the western approach to investment and procurement. Pupuke te Hihiri strategy includes a framework to measure value for our Iwi in our financial reporting. This drives governance and management decision making when it comes to the development and delivery of whai rawa investments.

Asset Type

Description

Asset development

Example

Whai Rawa

Whai Hua

Buy, develop and hold Potential civic infrustructure projects

• Capital improvements​ • Revenue stream​ • Ngāruahine jobs during development and ongoing services

Placemaking, our stories are told throughout our rohe; on civic architecture, public spaces and roading

Buy, develop and sell

• Profit from capital improvements​

Affordable housing for whānau

• ​Whai Hua ratio, measures the proportion of iwi value derived from our profit and loss sheet​ Whai hua ratio = profit + expenses under Te Ara Toiroa / Income​​ • Te Ara Toiroa ratio, measures the proportion of Ngāruahine owned goods and services against total expenses​ Te Ara Toiroa ratio = Expenses under Te Ara Toiroa / Total expenses​

• Ngāruahine jobs during development

• P ​ upuke te Hihiri ratio, measures the proportion of the Group asset base that contributes to Whai Hua as well as Whai Rawa benefits​ Pupuke te Hihiri ratio = impact investments/ total asset base

Group Distribution Framework The driver for Pupuke te Hihiri is the social, cultural and economic return on investment. Performance is measured by outcomes, not just profit. Profit is instead an enabler for growth and investment into further Pupuke te Hihiri aligned projects.

Te Kīwai Mauī o Ngāruahine Commercial Assets

The diagram above describes how this is done.

Funds

Capital support for Ngāruahine enterprise in the form of equity or loans to be returned overtime on favourablle terms. This is seperate to grants.

Toitū te Whenua Hapū partnerships and Investment fund

• Breakeven at a minimum​ • Supports Ngāruahine led development

• A platform to promote Ngāruahine identity and culture​ • Our natural environment is protected for generations to come

Business development

These are operational businesses, but may also include associated assets

Te Rere o Kapuni Lodge

• Revenue stream​ • Ngāruahine jobs during development and ongoing services

A platform to promote Ngāruahine identity and culture

Whai Rawa Assets New Whai Rawa Business Case or Growth

Implementation and sustainable operations

Profit

Outcomes realised

Te Kīwai Mauī o Ngāruahine is the Group’s commercial entity that is focused on growing the majority of the Group’s asset base and derive a dividend to support Group operations and charitable activities.

Potential housing projects

Pupuke te Hihiri strategy focuses on Whai Rawa investments – this is focused on social, cultural and economic outcomes. The profit from these activities are reinvested into further Whai Rawa investments.

NGĀ WHENU MATUA

This dashboard provides a snapshot of forecasted returns of this strategy against the 2022 financial year state regarding whai rawa, impact investments.

Whai Rawa

Contribution to economic growth benefits

Priority Sectors

Impact Investment Sectors

While there are several attractive opportunities that may cross our path day to day, it is important that we approach this mahi in a principled and sustainable way. The first five years will be focused and targeted on the establishment of key delivery capability and capacity and ‘low-hanging fruit’ that acts as pilot programmes and sets our framework for efficient and effective delivery.

2022

13%

Whenua Development

Ngāruahine whenua reacquisition and development Deferred Selection Properties Te Korowai made the decision to develop a Ngāruahine whenua reacquisition strategy to support the whenua aspirations of Hapū that will see the 10 Deferred Selection Properties (DSP) under the Ngāruahine Treaty Settlement returned under hapū ownership.

Toitū te Whenua Fund The purpose of the fund is to provide capital support for whenua development in a sustainable way. Hapū distributions used towards the SPV will be repurposed into this fund to further support Hapū development.

Rohe infrastructure development The word Tūkau came from the resistance movement at Parihaka through Te Whiti and Tohu with the central focus being on whenua.

• Tū - stand, establish, hold, convene • Kau - unreservedly, totally, without any doubt Project Tūkau, therefore reflects the aspiration of our Iwi to be leaders in the investment and design of our civic landscape and infrastructure..

Te Mauri o te Hau, o te Rā, o te Wai Energy Sovereignty

Tupua te Mauri is a strategic pou of our Ka Ora Taku Toa Strategy, that refers to our commitment and relationship with our Taiao. This concept has been used to derive the name of our priority whenu, which refers to wind, solar and hydro power and the connection to Pai Mārire in determining appropriate responses to events in the natural world. Tupua te Mauri, te mauri o te hau, te mauri o te rā, te mauri o te wai.

Housing Tourism and Hospitality Commercial

Impact Investments

Investments

Te Ara Toiroa, Ngāruahine Procurement Contribution to Employment and Enterprise

Ngāruahine Job Creation 40 30 FTE

Project Tūkau

64%

87%

20 10 0

22 23 24 25 26 Year

Ngāruahine Providers No. of Providers

Toitū te Whenua

Te Korowai Group are providing a range of support as part of a broader housing strategy. This whenu, as part of Pupuke te hihiri strategy, instead focuses on the Ngāruahine investment opportunities in housing.

Returns on Investment.

Te Korowai, through Mauī, is redeveloping Te Rere o Kapuni Lodge (Lodge) from an outdated and rundown business into a high-end cultural tourism and hospitality enterprise. The Lodge will be the cornerstone to growing service offerings and supporting a sustainable and resilient local Ngāruahine supply chain.

Papakāinga and innovative housing development

5 YEAR FORECAST

Tourism and hospitality (Te Rere o Kapuni Lodge)

36%

Regional Infrastructure

Poua te Pātūtū

2027

Energy

Ngā Whenu: Ahumahi Tāpoi

Pupuke te Hihiri Ratio

40

Te Ara Toiroa Ratio 2%

30

8%

10%

20 10 0

80% 22 23 24 25 26 Year Ngāruahine Taranaki Iwi

Māori

Other

Whai Hua

Contribution to social, cultural and environmental benefits

Ngāruahinetanga Pou

Tupua te Mauri​ (Taiao) Pou

• 5 Pou whenua or large scale contemporary toi ​

• Scoping and feasibility studies on several

• Several Ngāruahine and Aotea examples of contemporary architecture​

environmentally friendly investments​ • Implementing a

• Ngāruahine and Aotea

kaitiakitanga standard

driven narratives in street and place naming

across all investment

Whai hua Ratio 16%

84%

Whai Hua Expenses

Poua te Pātūtū​Pou • Up to 70 warm and dry whare for Ngāruahine whānau

Other Expenses