Chief Executive’s Report

NGĀTI AWA GROUP HOLDINGS LTD

Chairman’s Report

The directors of Ngāti Awa Group Holdings Limited and Ngāti Awa Asset Holdings Limited (together jointly referred to in this report as the “Commercial Group”) are pleased to be able to report on the Commercial Group’s best financial performance since being established following the settlement of our Tiriti o Waitangi claim in 2005. A net surplus of $9.6m was achieved reflecting a Return on Assets of 8%. The Chief Executive reports more fully on the specific accomplishments leading to this result.

From the board’s point of view this success has been accomplished by ensuring a focus is maintained on the Commercial Group’s strategic priorities, and the activities set out in the annual plan, both of which have been agreed with Te Rūnanga o Ngāti Awa (“Rūnanga”). These priorities have been: • A Principled Operating Culture; • Outstanding People, Systems and Processes; • Prudent Financial Management; • A High Performing Diversified Portfolio; and, • Smart Effective Alliances.

These strategic priorities have been in place for 3 years and are predicated on the strategic direction of Te Rūnanga o Ngāti Awa, Te Ara Poutama o Ngāti Awa. After reviewing our progress over the past three years, the board is satisfied we have made sufficient progress such that a review of our strategic priorities is warranted. This progress has built on the successful purchase of White Island Tours last year and is reflected in your Commercial Group’s involvement in both Matai Pacific Iwi Collective Ltd and Te Pūia Tāpapa Fund; the series of Hapū Information Consultative hui; and another “clean” financial audit achieved expediously.

The Matai Pacific Iwi Collective fits with two of our strategic priorities: smart effective alliances and a high performing diversified portfolio. It also supports your board’s desire to focus on cash generating opportunities. The Collective is a

joint venture between us, Te Arawa Group Holdings Ltd and Rotoma No.1 Incorporated. The Matai Pacific Kiwifruit orchards were purchased as a going concern (a hundred hectare kiwifruit enterprise consisting of three separate orchards), and is the largest single kiwifruit orchard purchase to occur in New Zealand. Such a purchase has enabled scale and immediate cash returns which supports the achievement of our strategic goals.

Te Puia Tāpapa is a joint venture involving 26 Iwi and Māori entities and establishes the first scaled Iwi/ Māori direct investment fund. It has $115.5m available for co-investment in large-scale New Zealand businesses and assets. Iwi and Māori involved include entities located in Nelson-Marlborough, lower North Island, Taranaki, Waikato, Hauraki, Taupō along with us and other iwi.

Te Puia Tāpapa is a preferred partner of NZ Super Fund and has been established to participate in opportunities of a national scale such as an infrastructure project, for example, a toll road.

During the year a series of information hui were convened in Whakatāne, Pōneke and Tāmaki Makaurau. These were well attended particularly the Tāmaki Makaurau hui. The hui provided information on our commercial performance to date and sought feedback on the proposed future direction of the Commercial Group. This feedback has assisted greatly to determine the way forward and the review of the Commercial Group’s strategic priorities noted earlier in this report.

We have started the review and are focused on developing training and employment opportunities for Ngāti Awa members as a priority. We are also seeking to introduce Sustainable/Impact Investing into our Strategic Goals. Representatives of the Rūnanga have participated directly in this process to date and while we are only part way through our review, when completed our proposed list of revised strategic priorities will be presented to the Rūnanga for its consideration and approval.

It goes without saying that much of our success in achieving this financial year’s excellent result is due in no small part to our management team. The board takes this opportunity to record our sincere thanks.

On behalf of the board I take this opportunity to thank Ngāti Awa for entrusting the directors with the guardianship of the commercial assets of Ngāti Awa. It is a responsibility we all undertake with due care and respect.

I also take the opportunity to thank my fellow directors for their dedication and professionalism throughout the year. Through their own specific experience and expertise they have unquestionably enhanced your board’s deliberations.

On behalf of the board we farewell Gina O’Brien who is retiring from the Commercial Group. Gina has been actively involved as a Director since 2014 and has always made an important contribution to our discussions. We wish Gina all the very best for the future.

On behalf of the board I take this opportunity to thank “ Ngāti Awa for entrusting the directors with the guardianship of the commercial assets of Ngāti Awa. It is a responsibility ” we all undertake with due care and respect.

Naaku noa,

B Paul Quinn

CHAIRMAN, NGĀTI AWA GROUP HOLDINGS LIMITED