Chief Executive’s Report

Chief Executive Report

It is my pleasure to present this report for the financial year ended 30 June 2020. The Whakaari eruption and COVID-19 events have proved very challenging and the immediate aftermath became our principal focus and constantly has been the case thereafter. We have held the victims of the Whakaari eruption in our hearts. OPERATIONS

Trips to Moutohorā were able to resume in late January and the White Island Rendezvous Motel also continued operating, albeit at much reduced levels. While we were able keep everyone employed full-time until the end of January at that point, we had to undertake the first of two reviews. We reduced staff from 58 to 49, many of our casual summer staff finished up at that point.

With the start of the COVID lockdown, all tour activity had to cease. The motel was able to secure a short-term contract to provide temporary shelter to the homeless, and while the company now met the criteria for the Government’s wage subsidy scheme, by mid-year it became apparent the situation was unsustainable. The motel was able to re-open for a reduced domestic tourism market. We therefore proposed a second restructuring, and following staff consultation, staff numbers were again reduced. On 30 June 2020, White Island Tours staff numbers were down to 23. Despite this we were able to increase the ratio of employment of Ngāti Awa people, with 30% of our tour staff being iwi members at year end, up from 24% in the year to 30 June 2019 (FY2019).

The COVID pandemic also forced a review of our long-term visitor strategy. We are planning on the assumption that the country’s borders might remain closed for at least another 12 months. Clearly, we need to develop new, long-term options, as tourism remains vital to both Ngāti Awa and the wider Whakatāne community. We are currently working with the Rūnanga through what a tourism reset to refresh and repurpose our current product offerings might look like as we plan for when the borders to open. FINANCIAL

As mentioned in our Chair’s report, we were able to prove resilient through two major crises due to the diversification of assets invested in a range of sectors that performed well.

Revenue of $9.1m was down from $10.5m in FY2019 which was largely a function of tour revenue ceasing to Whakaari.

Net Profit of $4.9m increased from $2m in FY2019 and Total Comprehensive Income of $4.6m was up on FY2019’s result of $2.1m, both buoyed by forestry and investment property valuation increases but offset by eruption related costs.

Year-end Total Assets were $133.9m and Total Equity $97m, compared to $127.5m and $93.9m respectively in FY2019.

Dividend payments to Te Rūnanga o Ngāti Awa of $1.3m were maintained and were consistent with FY2019 dividend levels.

KEY DEVELOPMENTS

Through Government support, NAGHL has been tasked with leading several projects that have been outlined in the Rūnanga Chief Executive report. All of them are about much more than an economic future. They speak to the values of the iwi, and the obligations NAGHL must achieve in terms of employment and sustainability results as well. An exciting development in progress is the planning currently underway to build an iconic structure at the site of the old Army Hall, on The Strand in Whakatāne. Demolition of the old building was the first step whilst saving the native timber for possible re-use. We will then consider design options with a view to construction in 2021. We intend the new building to celebrate and showcase Ngātiawatanga, hosting manuhiri, incorporating a range of retail, meeting and inviting spaces. We were also successful in an application to the Provincial Growth Fund where we have been approved to receive a $3.5M grant to implement a project to protect waterways and improve our environmental footprint. The project will result in 72 kilometers of fencing and 22 hectares of planting along the waterways of our dairy and drystock farms. This will result in an estimated 30 full time jobs employed for a period of 12 months, whilst contributing to cleaner waterways for a better environmental future for our whenua. We are also hoping to make progress this coming year in partnership with Police in developing a new precinct in Whakatāne to replace the existing facility. Initial discussions have so far been constructive, and we look forward to announcing progress on this as it comes to light. ACKNOWLEDGEMENTS

I wish to thank the Te Rūnanga o Ngāti Awa board and CEO for the warm welcome and support that I have received during my first year at the helm. Appreciation also to my Chair and Directors for their unwavering support during these tough and challenging times. The NAGHL staff have worked exceptionally hard through this year and I take this opportunity to thank them for this.

I would like to thank Peter Thomas for his services as the Group Accountant who left us during the year and welcome Matt Pavarno (Ngāti Porou) as our new Group Financial Controller.

Tracey Hook

CHIEF EXECUTIVE