Annual Report 2015

Annual Report 2015 WAIRARAPA MOANA INCORPORATION WAIRARAPA MOANA TRUST

Annual Report 2015

WAIRARAPA MOANA INCORPORATION

Message from the Chair E mau ki ngā kōrero i timata mai ai i ngā atua, heke iho ki ō tātau mātua t ī puna, heke iho anō ki a tātou e noho atu nei i te mata o te whenua, he tāonga mā ngā uri whakatupu. Nō reira me huri ki a rātou te hunga wairua kua haere ki te pouriuri, ki te pōtangotango ki tua o Paerau. Moe mai i roto i te Ao wairua.

Kingi Smiler

Nō reira, waihō ake ko te aka o te rangi ki a rātou, kua whetūrangitia.

Ko te aka o te whenua ki a tātou nei te hunga ora. Heoi anō, tēnā tātou katoa ngā uri o te moana tapū ko Wairarapa.

The 2015 year has seen a dramatic change in the dairy industry fortunes in New Zealand and globally.

In my report last year I indicated that there was still some downside risk in the Fonterra Milk Price of $6 per kgMS for the 2014/15 season.

Currently this is $4.40 for our May 31, 2015 year with final confirmation by September 30, 2015.

Unfortunately this has been compounded by the opening Fonterra Milk Price for the May 31, 2016 financial year of $5.25 and with some bank economic forecasts of $3.75 to $4.00 per kgMS at this early stage of the 2015/16 season.

With milk prices at these very low prices means that the gross profit from farming only showed a small surplus of $36,459 for May 31, 2015 compared to last year of $14,219,274 when milk prices peaked to their highest ever of $8.40 per kgMS. As it is still early in the 2015/16 season we have budgeted a milk price of $4.50 kgMS with a forecast farm gross profit of $2,816,454.

The overall cash break-even milk price before shareholder dividends for the Incorporation as a whole is approximately $4.35 per kgMS. Current market expectations indicate that there is still a lot of downside risk to our $4.50 kgMS budget.

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ANNUAL REPORT 2015

The focus of the management team will be to continue to emphasise the careful and efficient use of all of our resources. Our farm benchmarking results from 2014 actual year indicate that we are in the top 10% for the region.

The overall equity of the Incorporation is approximately $204 million and our debt equity ratio of 18.6% provides us with a very strong balance sheet to withstand the global economic price volatility currently being experienced.

Miraka continues to be profitable during this challenging year with the dramatic drop in whole milk powder prices and with the foreign exchange rate not falling below US 70 cents until July of this year. We received a significant increase in cash dividends from $525,298 in 2014 to $1,388,031 for 2015 which represents a very good return on investment to date. The outlook for the 2016 year is for another tough year of low whole milk powder prices in a very challenging global market of soft demand particularly in China and increased milk supply from Europe and the United States.

In July Te Tumu Paeroa (The new Maori Trustee) decided to sell their investment in Miraka for $2.05 per share. Most of the current shareholders including the Incorporation exercised their pre-emptive rights to purchase those shares.

Our additional investment in Miraka was increased by approximately $8 million. This increased our shareholding in Miraka from 27% to 34%. Based on a $2.05 share price this would value our shareholdings at May 31, 2015 at approximately $40.6 million compared to a cash investment of $15.4 million a capital growth increase of $25.2 million.

We also extend our congratulations to the Miraka team for taking out the inaugural New Zealand Trade and Enterprise He Kai Kei Aku Ringa Māori Exporter of the Year for 2015.

Finally, can I particularly acknowledge the support of my fellow committee members Anne Carter, Arawhetu Gray and Te Horipo Karaitiana along with Dr Gavin Sheath and our Farm Business Advisory group.

Our management team of General Manager Nick Hume and our two new Operation Managers David March and Phil McKinnon have made a very positive start to the 2015/16 season’s challenges that are ahead of us.

Kingi Winiata Smiler chairman wairarapa moana incorporation

The Committee recommends the following distributions for 2015: Regular Dividend Educational and Marae Grants Dividend

$400,000 $90,000

WAIRARAPA MOANA INCORPORATION

3

Our Vision To nurture our people, our place, our future

Our Values VALUE

4

BEHAVIOUR

OUTCOME

Tika / Integrity

People behave in an open, honest and respectful way. They do the right thing and build trust.

Trusted Relationships

Whanaungatanga / Communication

Effective communication is encouraged throughout all levels of WMI and is accurate, informative and timely.

Everyone is on the same page

Rangatiratanga / Courage

Provides vision and leadership to achieve excellence in everything we do for our collective whānau.

Success in what we do

Wānanga / Knowledge

Explore, encourage and lead in an environment that shares knowledge at all levels of WMI.

Talented Team

Kotahitanga / Working Together

The working environment is positive and collaborative so that all people are valued and have pride in themselves and WMI.

Proud People

ANNUAL REPORT 2015

Key Performance Measures

$(.50)

(.25)

million

(.20)

percentage

Net profit after tax

percentage

Return on equity

Return on Assets

Decreased 7.28 percentage points from the 2014 year.

Decreased from 5.96% in 2014

18.6

$(2.0)

Net Cashflows

Bank Debt

Farm operating activities were $670,000 less than in 2014.

As a percentage of total assets was increased by 2.2 percentage points from 16.4% in 2014.

Decrease in net equity from 2014

Reducing dramatically from $15m in 2014 due to a $4 kgMS reduction in payout.

Growth and Risk Measures

$5.54 million

million

percentage

Net Profit (Loss) After Tax

The decrease in earnings from operations and unrealised foreign exchange losses in Miraka was partly offset by the increase in land values.

Shareholder Dividends Paid

16 2.0

15

14 12

1.5

10 8

1.2

1.0

6

5.5

4 2 0

2

0.5 0.4

0.9

-0.5

-0.1

1.6

0.4

0.4

0.4

0.0 2016 2015 2014 2013 2012 2011

-2 2016 2015 2014 2013 2012 2011 Budget

Values in million’s of dollars

Values in million’s of dollars

WAIRARAPA MOANA INCORPORATION

5

Nick Hume

General Manager’s Report

The 2015 season posed a number of challenges.

There was yet another drought; the completion and implementation of the new sheds and their teams settling in; changes in senior personal and the downward pressure on milk price.

The payouts being set are confronting for all dairy businesses this year and look to be the major concern in the coming seasons.

The prolonged dry that set in during December saw river levels fall to their lowest levels in the last 50 years. This combination, of low rainfall and back-to-back droughts (the last 3 seasons,) seriously depleted water levels. These low river levels meant the irrigation system was placed under consent restrictions. It also meant that the Mangakino River irrigation system was running at only 20% from January to the end of the irrigation season. This presented a number of challenges and resulted in reduced production.

It is pleasing to note we have subsequently seen a return to our normal winter rainfalls.

The new sheds being built on farms 3 and 4 also posed their challenges, with two herds being milked through one shed until the 2nd shed was commissioned. Both sheds were completed on time and within budget, but building two sheds and redeveloping two farms was certainly a large scale project for any size business. We thank the build team and the staff involved in the project. It has really added to the asset base of WMI and will see those two farms being the units to watch in years to come.

Operations Manager Chris Berry left WMI in October, for a new role with the Chinese Shanghai Pengxin Group (Milk New Zealand Limited). Chris had been with WMI for 6 seasons and had played a major role in taking the business forward to where it is now. We thanked Chris and farewelled him at the last AGM. Chris’s departure saw a lot of practical and institutional knowledge leave the business.

The internal knowledge in the remaining team is now growing to fill that gap and we are pleased to see the internal promotion of David March, and the addition of Phil McKinnon, as Operations Managers of the farming operations.

Both Phil and David will work alongside one another to deliver the farming results.

The payout has dropped from last year, as many would be aware from the media reports.

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ANNUAL REPORT 2015

Owner Operator Comparisons 7000 6000 5000 $ per Ha

The payout in 2014 was $8.40 and we have seen a drop to $4.40 this year. In many cases our farms are set up with their proposed farm plans at the start of the season and the downward pressure in milk price was not seen until later in the season. The original shift, from a system 4 (20-40% of imported feed), to a system 3 (10-20% of imported feed), was to help ride out these unpredicted swings in milk price.

1000 0

The 2014 actual benchmarking results show WMI are well on their way to achieving the goal of being in the top 10% of producers.

Dairy NZ have engaged with WMI to do an annual Dairybase analysis of the farms

EFS Ha

Feed Costs Ha

Wages Ha

NZ Average Taupo Central NI Top 50%

The team are starting to develop some real confidence in the system 3, which will be essential to battle the low payout. The WMI cost structure is still trending downwards and is budgeted to do so this coming season as well.

The key to 2016 will be delivering production within the budget cost structure.

Enabling Ha

Total Costs Ha

WMI Waikato Top 20%

Source: 2013/2014 Financial year dairybase results per Ha as per 2014 actual Dairy NZ Economic survey

Sharemilker Comparisons 3500 Scale – $, MS per Cow or MS per Ha

The capital budget for the 2015/16 season is forecast as follows: cows for Share Milker Take Over $1.6 million; Kaharoa and Ford Road development $.4 million; and plant and equipment $.4 million.

3000 2000

Milk prices for the 2016 season are not looking any better than what we have just faced. The issues of over-supply and reduced demand need to work their way through the system and it could be another 12-18 months before we (hopefully) see increased payouts.

Expenses were .05% within budget. The expenses were $43,000 over budget for the Owner- Operated farms, and were a result of increased costs associated with the drought.

However some lines were above while others were below, giving the net variance of $43,000.

The WMI cost structure is now below the industry average, with production being higher than the average. The management team have a target to reach the top 10 % of New Zealand farms based on economic farm surplus (EFS).

4000

3000 2500 2000 1500 1000 500 0

EFS per Ha

Costs per Ha

MS per Cow

MS per Ha

WMI (2.8 cows/ha) North Island Avg (2.9 cows/ha) Top 20% North Island Avg (3.2 cows/ha) Source: 2013/2014 Financial year dairybase results per Ha as per 2014 actual Dairy NZ Economic survey

WAIRARAPA MOANA INCORPORATION

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Amount Rent ($) Stumpage ($/m3)

WMI Returns vs Industry Stumpage Returns WMI Returns Linear (Rent / 10000)

200 180

Stumpage Linear (Stumpage)

160 140 120 100 80 60 40 20 0 1999

2001

2003

2005

2007

2009

2011

All $ on the graph are nominal dollars (dollars of the day)

2013

2015

to place our results alongside others in the industry. This will help identify the strengths and weaknesses in the business, and provide some clear independent benchmarking within the farms which will help grow each farm’s individual results, which add to the complete result. It is pleasing to note all the farms were very comparable and there were no outliers.

Consistent profit over a large number of hectares will return value to the shareholders and is the goal.

WMI exceeded its peers in the Taupo region and is nearing the top 20% of the Waikato region (which will include some very fertile lands in Northern Waikato, compared to the pumice soils of Taupo). Some of the top performers will be operating a system 4 or 5 and in high payout years (as was 2014) will exceed all other systems as there is a guaranteed return on additional feed placed into the system. You will note the increased feed cost for those top 20% in the Waikato. In low payouts the opposite will occur and there will be major concerns for those systems in the current payout environment.

The forestry continued to deliver (3 times) above industry benchmarks of $180 per hectare vs $60 per hectare. The current rental payments covering the 2nd rotation continues until 2036.

The 3rd rotation is coming for renewal which will add to the income stream from forestry.

There was also a small uplift in the value of the emission trading scheme units of 25 cents which has been reflected in the increase in forestry assets in the balance sheet. In 2015 we also saw a profit from the sale of the tree rights for the Kaharoa forestry block.

The WMI farms are nearing the completion of their development phase. Ford Road has had a large area of the tree piles cleared to allow for more grazable and mowable land. Kaharoa is nearing the completion of its extensive postpurchase development program. Both these two pieces of land have seen huge uplifts in their values this season with work done to date.

The development of our staff continues and attracting a number of shareholder whanau to

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ANNUAL REPORT 2015

the farms has been an on-going focus. Finding suitable young people in the dairy sector, who show leadership potential, is a challenge all dairy businesses face. Our investment in people sees WMI in a strong position for the future, with many young Maori filling some of the senior roles within WMI.

5 Year Trend Summary Last year the following comments were made in this report; “we will continue to see the volatility in the commodity markets, we need to have a sustainable business plan to adapt to the market”. That statement still stands true and we are now seeing how volatile the market can be. Continuing to grow a sustainable resilient business is the 5 year focus. In the 5 years ahead no significant capital development is planned, other than for the purchase of cows for the sharemilker farms take over.

Net Equity Net equity has reduced by $2m since last financial reporting period. This is a combination of the reduced livestock values and the reduction in Miraka Limited based on an equity accounting value required by international financial reporting standards. If Miraka Ltd was able to be valued at market value ($2.05 per share) there would be a $18m increase in equity.

The value of each (one) Share in WMI at 31st May 2015 was $4.28, as accessed by Crowe Horwath, compared to 31st May 2014 value of $3.97.

The Debt Position Debt has increased during the period with the settlement of Kaharoa and completions of developments on the farms. Last year’s outlook on milk price was looking materially better so the planned capital development from Cashflow was unable to occur. Should milk price return to normal levels the 5 year future projections indicate that debt will track below the 15% of assets by 2020.

Looking Ahead In June this year WMI hosted a joint field day with the Federation of Maori Authorities (FOMA) and Dairy NZ. That field day was to showcase the journey WMI are taking to develop a resilient sustainable profitable business model. The day was well attended and the feedback was positive.

Khardinn Wereta and Mark Coughlan both spoke from a young Maori-in-dairy perspective and how they had ended up in a career in dairy. Both young men were very inspiring and a highlight of the day. Development of our whanau and our people is going to be the key to success for WMI over the coming years. Recruiting, developing and retaining good quality people to deliver the on farm results is a strategic directive from the Committee of Management and certainly a goal the management fully support.

The budget for 2016 has a milk price of $4.50 included and will return a profit of $900,000 before dividends and after deprecation. The milk price plays an important role in the result being delivered. We saw how a price of $4.40 eroded the bottom line of WMI in 2015. For every $1 movement in milk price the bottom line moves by $3m. The need to be responsive to changes in the market is still important now and will be going forward. WMI can only influence what it can control. The efficient use of resources has been reinforced with the team and is the mantra for the season. Making the right decisions on when and how much to use will be very important over the coming seasons.

The 2016 budget has been compared to the economic models developed by Dairy NZ for Waikato, Bay of Plenty and the Taupo regions. It is encouraging to see the Economic Farm Surplus per Ha exceeds the model by 45% based on a standardised milk price of $4.75. This would place WMI closer to reaching the top 10% of performers. The 2020 goal is for all the farms to be in the top 10% of benchmarking based on financial performance, people management, health and safety and environmental leadership.

Nick Hume general manager wairarapa moana incorporation

WAIRARAPA MOANA INCORPORATION

9

Financial Report Results in Brief WAIRARAPA MOANA INCORPORATION

Commodity Milk Price per kg milk solids

2015 2015 2014 2013 2012 2011 Forecast Actual Actual Actual Actual Actual 12 Mths 12 Mths 11 Mths 12 Mths 12 Mths 12 Mths $000s $000s $000s $000s $000s $000s

4.50

4.40

8.40

5.80

6.05

7.59

20,644 17,827

20,244 20,207

35,347 21,128

24,081 22,080

30,654 26,310

30,445 21,997

Gross Profit From Dairy Farming Operations

Net Forest Income Net Township Income Net Investment Income

2,817

36

14,219

2,001

4,344

8,449

1,485 (91) 491

1,752 (20) 454

2,215 (78) 454

1,417 (65) 483

1,410 (41) 537

1,321 (2) 50

4,703

2,222

16,811

3,835

6,250

9,818

Add: Income from Equity Accounted Investment Less: Administration Expenses Less: Governance and Secretarial Costs

2,000 495 442

2,590 494 417

3,390 392 430

1,126 677 351

– 522 411

– 493 449

Earnings Before Interest, Tax and Depreciation (EBITDA)

5,766

3,901

19,379

3,934

5,316

8,875

Interest Expense Depreciation

3,310 1,560

2,876 1,532

2,380 1,548

2,596 1,425

2,197 1,547

2,157 1,217

Net Profit/ (Loss) Before Tax Income Tax Expense

896 –

(506) –

15,451 434

(87) –

1,573 –

5,501 –

Net Profit/ (Loss) After Tax

896

(506)

15,017

(87)

1,573

5,501

Revenue from Dairy Farming Operations Less: Costs of Production

Current Assets Wairarapa Moana Farms Wairarapa Moana Forest Township and Other Wairarapa Moana House Investments*

20,350 17,673 24,792 17,339 21,531 18,481 173,479 166,142 150,334 147,756 139,671 117,633 29,300 28,494 27,296 25,417 25,149 24,021 3,550 3,444 3,490 3,674 4,124 4,339 585 496 503 504 498 502 30,500 24,480 29,625 19,927 20,674 20,735

Assets

269,764 256,430 251,847 217,195 219,732 207,750

Current Liabilities Term Liabilities

3,050

4,537

6,462

3,928

6,549

5,009

58,683

47,700

39,120

39,156

38,379

27,178

Shareholders’ Equity 208,030 204,194 206,265 174,110 174,804 175,563

*Please refer to the investments in associates note

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ANNUAL REPORT 2015

Results in Brief WAIRARAPA MOANA INCORPORATION continued

2015 2015 2014 2013 2012 2011 Forecast Actual Actual Actual Actual Actual 12 Mths 12 Mths 11 Mths 12 Mths 12 Mths 12 Mths $000s $000s $000s $000s $000s $000s

Key Performance Indicators Growth/(Reduction) in net worth on opening balance $

3,837 (2,072)

32,155

(694)

(759)

26,859

Growth/(Reduction) in net worth on opening balance %

1.88% (1.00%) 18.47% (0.40%) (0.43%) 18.06%

Return on Equity

0.38% (0.25%)

Return on Assets

0.29% (0.20%) 5.96% 0.43% 0.65% 3.56%

Debt as a % of total assets

7.28% (0.53%)

0.90%

4.21%

21.75% 18.60% 16.40% 18.03% 17.47% 13.08%

Disclosures RELATED PARTY TRANSACTION (extract from Financial Statements) Miraka Limited During the year the incorporation supplied milk to Miraka Limited, a company partly owned by Wairarapa Moana Incorporation.

These sales accounted for 85% (2014: 83%) of Wairarapa Moana incorporations revenue.

Whai Hua Limited Partnership The Incorporation’s interest in Whai Hua is 33%. Whai Hua is in the business of research and development of milk proteins.

The Whai Hua Limited Partnership balance date is 30 June.

The Incorporation owns 27% of Miraka Limited. Miraka Limited is in the business of processing milk. The company balance date is 31 July. At Balance date Miraka owed $635,734 (April milk proceeds) and $770,919 in retrospective payments for the season. (2014: $2,753,457 and $5,444,053 in 2014 respectively).

During the year the Incorporation paid funding to Whai Hua of $352,131 (2014: $325,450). The amount payable to Whai Hua at 31 May 2015 was Nil (2014: $27,424).

This summary financial report includes extracts from the Statutory Financial Statements of Wairarapa Moana Incorporation for the Year ending 31 May 2015. The Statutory accounts have been audited by Crowe Horwath and they have issued a clean audit report.

Full reports can be obtained by contacting the Wairarapa Moana office in Masterton.

WAIRARAPA MOANA INCORPORATION

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Disclosures RELATED PARTY TRANSACTION (extract from Financial Statements)

Investment in Associates – Miraka Limited

Committee of Management The Incorporation’s appointed Committee have charged fees in relation to their contractual responsibilities carried out.

Fees actually paid during the year are as follows: 2015 2014

Paora Ammunson

–

–

Arawhetu Gray

–

–

Te Horipo Karaitiana

5,207

4,703

Anne Carter

2,500

–

Kingi Smiler*

179,050 172,500

* Kingi Smiler, Chairman of Wairarapa Moana Incorporation, is also the Chairman of the Board for Miraka Limited. Mr Smiler is a director of Whai Hua General Partner Limited.

There are no amounts owing (receivable) to committee members.

Meetings Attended for the year to the date of the AGM

2015 2014

Paora Ammunson

–

–

Arawhetu Gray

6

5

Te Horipo Karaitiana

5

5

Anne Carter

7

N/A

Kingi Smiler

7

5

Opening Balance Acquisition of Shares (cash paid) Equity Accounted Share of Net Profit After Tax (NPAT) Cash Dividend Paid Equity Accounted Share of Other Movements in Equity Closing Balance

16,186,770 2,723,766

2,589,743 (1,388,031)

2,845,154 (545,298)

(6,381,891)

4,223,440

20,798,951 25,979,130

Miraka Limited is recorded at equity accounting values as opposed to an independent market value. Miraka equity accounting calculation is prepared in accordance with NZ IFRS and that differences in accounting policies between Miraka and the Incorporation have not been calculated due to the cost in doing so would outweigh the benefits to readers. Acquisition costs of Miraka are as follows: 2015 2014

Cost (cash paid) Share of Post Acquisition Surpluses and Revaluations TOTAL

Estimation of Market Value

ANNUAL REPORT 2015

25,979,130 –

Miraka Limited is considered an associate to the Incorporation. The Incorporation owns 27% of the Miraka Limited shares. The Incorporations holds 19,829,013 shares in Miraka Limited at 31 May 2015. The proportion of voting power is limited to the shareholding in Miraka Limited. Miraka Limited has a balance date of 31 July.

Miraka Limited Share Value based on comparable Sales Number of Shares held by Wairarapa Moana Incorporation

12

2015 2014

15,373,766

15,373,766

5,425,185

10,605,364

20,798,951 $

2.05

19,829,013 $40,649,477

25,979,130

Annual Report 2015

WAIRARAPA MOANA TRUST

Message from the Chair Tēnā koutou Te Miha Ua-Cookson

E kore e hekeheke mātou, he kakano rangatira.

Kia hora te marino, kia whakapapa pounamu te moana, kia tere te karohirohi.

Nō reira, mihi mai ki o tātou mate kua riro nei i te pō, haere, haere atu rā koutou kei roto i tō moenga roa ki te Ao Wairua.

Ki o tātou nei te hunga ora huri noa i te motu me te Ao, tēnā koutou, tēnā koutou, tēnā tātou katoa.

2015 has been another year of moving forward for the empowerment and wellbeing of our rangatahi and shareholders.

Our core business continues its focus on: Future Leaders, • • Wairarapa Moanatanga, and Marae Development.

• The Board of Trustees met in February to discuss the workplan for the coming year. The meeting covered a wide number of issues: Annual Funding, Future Leaders, Trade Training, Bridging Fund and Marae Development. This year we focused on ensuring we knew just what our business is, and more importantly what it isn’t (i.e. what we can and what we can not do). This approach helped to set the tone for 2015 particularly with regard to responsibility, accountability and capacity of each trustee.

It is important that we continue to focus on the future leadership of Wairarapa Moana. With this in mind the trustees have committed to a closer relationship with Wairarapa Moana Incorporation. Together, the Trustees met with the Incorporation in Rotorua. As the business arm, the Incorporation must be kept informed of progress in terms of how our funds are utilised to continue building a strong base of educated and skilled Wairarapa Moana people. The special scholarships announced in 2014 are an example of the need to target some of our funding at future leaders in farming to ensure future whānau involvement in our agri-business model.

14

ANNUAL REPORT 2015

We continue to seek out people from our iwi to educate and train in agri-business to ensure the sustainability of our businesses into the future.

Future Leaders We have a finite budget for education (from annual funding allocations). This year that was made up of $28k for tertiary and $12k for trades and apprenticeships. We also have the recently launched bridging fund of $10k, and special scholarships for youth development in agribusiness of $10k. Again, our scholarships were over-subscribed this year. This meant as usual that those who failed to meet the criteria or those who failed to provide all required information, were eliminated from consideration.

Wairarapa Moanatanga The continuation of Whakakaha Paepae programmes was again agreed as a fundamental imperative for this portfolio. The success factors inherent in the Wāhine programme are now being pursued through the Tāne programme ably led by Rutu Namana and Henare Manaena. Our decisions this year also included consideration of a second recording for whānau to support ‘Nau Mai Taku Kura Mokopuna’. This is a work in progress. The Trust also supported

the Secondary Schools Kapa Haka academy by supplying copies of Nau Mai Taku Kura Mokopuna.

responsible for advising the Trust what is relevant to share with other stakeholders. This relationship is built on mutual trust and respect.

Marae Development

Acknowledgements:

We met face to face with marae chairs this year and promised to make this an annual occurrence. Much can be learned by everyone through kanohi ki te kanohi engagement, something we inherently know, but on occasion need to be reminded about. We agreed a verbal memorandum of understanding based on mutual respect and inclusivity. The trustees and marae stakeholders agreed that neither party is there to tell the other what to do; rather we are there to support and enable each other to achieve our desired goals.

I would like to thank the Wairarapa Moana office for their dedication and support as always. The work that they do behind the scenes not only for the trustees, but the whole organisation is more than often invisible to most of us. The manager Charmaine Kawana and Trust secretary Dallas Gillies are always willing to assist; are approachable and professional and nothing is too much trouble. Ngaere Webb and Henare Manaena also regularly go above and beyond their call of duty and have assisted me greatly over the years that I have been with the Trust.

Our marae whānau work long and tirelessly on the issues at the coal-face. Te Ahi Kaa is a concept we know all too well, and with this in mind the trustees are here to communicate to the wider whānau the progress on each of our marae kainga.

We hold each marae accountable for how their annual allocation is utilised (this year each marae was provided $30k from the profits of our farms). Each individual marae is then

I would like to take this opportunity to thank the trustees for their commitment during the 2014/15 period. Newcomers Mihirangi Hollings and Anaru Smiler have proved to be great assets to the Trust, attending all hui and contributing high level thinking to the overall purpose of the Board. Many thanks also to Deb Davidson and Rutu Namana who have been with us since 2013 and 2010 respectively.

WAIRARAPA MOANA TRUST

15

In the 2015 academic year 47 scholarships of $1,000 each was provided to tertiary, trade and apprenticeship recipients.

I am taking leave of the Trust after completing a three year term; I was elected to the Trust in 2012 and have enjoyed working with many skilled and experienced whānau members who have given their time to provide the necessary due diligence and strategic thinking required to keep our Trust relevant.

Highlights for me over my time have included the completion of Marae Development Plans; a comprehensive paper on apprenticeships; the development of a plan for Paepae strengthening; the allocation of further funding for much needed ‘bridging’ opportunities for those of our whānau unable to undertake tertiary studies; and most of all the Whakakaha Paepae Wāhine programme. Thank you Wairarapa Moana shareholders for giving me this opportunity.

Mā te Atua koutou e manaaki e tiaki i ngā wā katoa.

Te Miha Ua-Cookson chairman wairarapa moana trust

Scholarship Recipients 2015 Wairarapa Moana Trust would like to congratulate the following successful recipients of scholarships for 2015.

A full list of scholarship recipients is listed below and is reflected in graph 1 by their fields of study.

Graph 1: Current Areas of Study for Scholarship Recipients 2015 Masters

1

Māori

5 8

Health Education & Teaching

8 6

Business & Commerce Arts

9

Sport, Rec & Tourism

2

Science Information Technology

6 1

Law Engineering

1

Journalism

1

Aviation

1

3

Hairdressing

1

Carpentry

1

Plumbing

1

Electrician Beauty

1 2

0

1

2

3

4

5

6

7

Number of Students

16

ANNUAL REPORT 2015

8

9

TERTIARY RECIPIENTS Rosalie Dew Parekura Pewhairangi Josephine Te Whaiti Ripeka Hoerara Keita Tuhi Raukura Tiopira Reece Joseph Steffanie Jury Jordan Te Whaiti-Smith Joanne Matiaha Serena Karaitiana Tania Namana Te Aroha Hikitapua-Martin Paige Nuku Brearna Elers Charlotte Manning Johnathon Rutene Te Ngauora Kerehoma-Hoerara Simon Dew Rawiri Kerehoma-Hoerara Maddison Baker Te Rimene Workman Marla Jury Darcy-Leigh Cullen Pania Tasker Sarah Hutana-Te Aho Tawera Manaena Gina Lamb Brooke Gibson David Fou Victoria Wilton Jefferson Dew Kaya Te Miha Georgia Woodward Raharuhi Koia Te Aniwaniwa Hurihanganui Ashleigh Hansen-Davidson Les Hoerara Jordan Hoerara Arama Wakefield-Sciascia Chloe Kenny

PROGRAMME OF STUDY Masters of Primary School Teaching Bachelor of Maori Development Bachelor of Maori (Te Reo) Bachelor of Maori Studies Bachelor of Maori/Diploma Maori Education Bachelor of Maori/Diploma Maori Education Bachelor of Medicine/Bachelor of Surgery Bachelor of Medicine/Bachelor of Surgery Bachelor of Medicine/Bachelor of Surgery Bachelor of Nursing Bachelor of Nursing Bachelor of Nursing Bachelor of Health Science Bachelor of Teaching/Bachelor of Arts Bachelor of Primary School Teaching Bachelor of Teaching Bachelor of Teaching Bachelor of Business Studies Bachelor of Business Studies Bachelor of Management Studies/Bachelor of Laws Bachelor of Commerce Bachelor of Commerce/Bachelor of Laws Bachelor of Commerce/Bachelor of Tourism Management Bachelor of Arts Bachelor of Arts Bachelor of Arts Bachelor of Design Bachelor of Design Bachelor of Hospitality Management Bachelor of Science Bachelor of Science Bachelor of Applied Science Bachelor of Social Science Bachelor of Law/Bachelor of Arts Bachelor of Engineering Bachelor of Communications Diploma in Health Science Graduate Diploma in Education Administration & Leadership Graduate Diploma in Arts Diploma in Aviation Diploma in Performing Arts

TRADE RECIPIENTS Joseph Rutene Niki Te Whaiti John Miller Marere-o-tonga Karauna Savannah Taylor Lisa-Marie Ngataki

TRADE AND APPRENTICESHIP Apprenticeship in Hairdressing Apprenticeship/Certificate in Carpentry Apprenticeship in Plumbing Apprenticeship – Electrician Certificate/Diploma in Beauty Services Certificate in Beauty Services

WAIRARAPA MOANA TRUST

17

Financial Report Results in Brief WAIRARAPA MOANA TRUST

2015 2014

$ $

Income Interest Received Grants Received The Lake and Its People Book Sundry Income

8,751 268,696 130 348

8,636 112,174 288 398

277,925

121,496

2,200 2,040 77 858 – 192,445 7,515 47,000

2,204 1,850 92 334 497 62,815 5,226 41,925

Total Expenditure

252,135

114,943

Net Surplus for the year

25,790

6,553

Current Assets BNZ Cheque Account BNZ Call Account BNZ Education Account BNZ Short Term Deposit WBS Short Term Deposit Treaty Claims Account Accrued Interest Inventories

2,753 289,876 61,438 62,000 80,000 7,263 1,479 32,550

27,961 96,880 46,336 62,000 80,000 7,066 546 33,150

Total Assets

537,359

353,939

Current Liabilities Accounts Payable Provision for Grants GST payable

5,251 156,522 26,735

30,180 – 697

Total Liabilities

188,508

30,877

Equity

348,851

323,062

Total Funds Employed

537,359

353,939

Total Income Less Expenditure Accountancy Audit Fees Bank Fees General Sponsorship Grants Meeting Expenses Scholarships

18

ANNUAL REPORT 2015

Disclosures Board of Trustees MEETINGS ATTENDED

2015 2014

Te Miha Ua-Cookson

7

6

Deborah Davidson

6

7

Rutu Namana

6

6

Mihirangi Hollings

7

N/A

Anaru Smiler

7

N/A

During the year the Trust received grants totalling $300,000 (GST incl) from Wairarapa Moana Incorporation by way of Future Leaders Education $60,000; Marae Development $30,000; Wairarapa Moanatanga $30,000; and the shareholder approved Special Marae Grants of $180,000.

Restricted funds held by the Trust for Nga Hapu Karanga o Wairarapa are $7,263.

TRUSTEES HAVE RECEIVED FEES IN RELATION TO THEIR RESPONSIBILITIES

2015 2014

Te Miha Ua-Cookson

$909

$1,457

Deborah Davidson

$413

$708

Rutu Namana

$539

$670

Mihirangi Hollings

$514

N/A

Anaru Smiler

$619

N/A

Committed funds held by the Trust as at 31 May 2015 for Marae Development relate to Pouakani Marae $1,163; Kohunui Marae $26,667; and Hurunui-o-rangi Marae $56,667.

19 This summary financial report includes extracts from the Statutory Financial Statements of Wairarapa Moana Trust for the Year ended 31 May 2015. The Statutory accounts have been audited by Moore Stephens Wairarapa Audit and they have issued a clear audit report.

The full report can be obtained by contacting the Wairarapa Moana office in Masterton.

WAIRARAPA MOANA TRUST

19

Notes

20

ANNUAL REPORT 2015

To contact the Wairarapa Moana Incorporation web www.wairarapamoana.org.nz email info@wairarapamoana.org.nz Masterton Office

PO Box 2019, Kuripuni, Masterton 5842 Wairarapa Moana House, 4 Park Avenue, Masterton 5810 Telephone 06 370 2608 Fax 06 370 2609 Taupo Office

PO Box 1347, Taupo 3351 Level 1, 14 Ruapehu Street, Taupo 3330 Telephone 07 213 2275 Fax 07 377 6156 Cover Photos Left top: Wairarapa Moana Incorporation joint field day in conjunction with FoMA and Dairy NZ Left Bottom: Wairarapa Moana Farms Staff Induction Day at Pouakani Marae, June 2015 Right top to bottom: Shareholders attending Pre-AGM meeting in Rotorua, September 2014; Mana Hohepa (Farm 7), Apiana Te Tau-Quin (Farm 4), Jason King (Farm 11) helping dairy support team; Rah Bennett (Farm 1); Whānau at the 2014 AGM in Carterton